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R2002-0087 06-10-02 RESOLUTION NO. R2002-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, ACCEPTING THE RESULTS OF THE CITY'S ANNUAL FINANCIAL AUDIT AS PREPARED BY THE ACCOUNTING FIRM OF PATTILLO, BROWN AND HILL. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain financial audit as prepared by Patillio, Brown and Hill, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Council accepts the results of the City's annual financial audit. PASSED, APPROVED and ADOPTED this the 10 day of JUNE A.D., 2002. TOM REID MAYOR ATTEST: ly 8E~ETARY " APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY Exhibit "A" R2002-87 CITY OF PEARLAND, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2001 Prepared By: Finance Department (this page intentionally left blank) CITY OF PEARLAND, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2001 Exhibit Page INTRODUCTORY SECTION Letter of Transmittal GFOA Certificate of Achievement for Excellence in Financial Reporting Organization Chart Principal Officials Executive Managers 8 9 0 Independent AuditorsReport 13 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups, and Discretely Presented Component Unit 1 16 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances All Governmental Fund Types Combined Statement of Revenues,' Expenditures, and Changes in Fund Balances Budget and Actual - General and Debt Service Funds 3 20 Combined Statements of Revenues, Expenses, and Changes in Retained Earnings Proprietary (Enterprise) Fund Types 4 22 Combined Statements of Cash Flows — All Proprietary Fund Types 5 23 Notes to Financial Statements 24 18 REQUIRED SUPPLEMENTARY INFORMATION 52 Pension Information= Texas Municipal, Retirement System COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP; FINANCIAL' STATEMENTS AND SCHEDULES Governmental, Fund Types General Fund: Comparative Balance Sheet A-1 58 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual A-2 59 Schedule of Revenues - Budget and Actual A-3 60 Schedule of Expenditures Budget and Actual A-4 64 CITY OF PEARLAND, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2001 FINANCIAL SECTION (continued) COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS AND SCHEDULES (continued) Governmental Fund Types (continued) Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Debt Service Fund: Comparative Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures,. and Changes in Fund Balance Account Groups Exhibit Page B-1 B-2 C-1 C-2 D-1 D-2 72 74 78 79 82 84 General Fixed Assets: Schedule of General Fixed Assets by Source E-1 90 Schedule of Changes in General Fixed Assets by Function and Activity E-2 91 Schedule of General Fixed Assets by Function and Activity E-3 92 General Long -Term Debt: Schedule of General Long -Term Debt Service Requirements to. Maturity Enterprise Fund Debt- Schedule of Enterprise Fund Debt Service Requirements to Maturity G 94 98 Component Units Combining Balance Sheet I-1 102 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance I-2 103 Combining Balance Sheet Pearland Economic Development Corporation (PEDC) I-3 104 ii CITY OF PEARLAND, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Year Ended September 30, 2001 Exhibit Page Financial Section (continued) COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS AND SCHEDULES (continued) Component units (continued) Combining Statement of Revenues. Expenditures, and Changes in Fund Balance Pearland Economic Development Corporation (PEDC) I-4 105 Combining Balance Sheet TIRZ # 1 and TIRZ#2 I-5 106 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance TIRZ#1 and TIRZ#2 I-6 107 Schedule of Component Unit Funds Debt Service Requirement to Maturity I-7 108 UNAUDITED STATISTICAL SECTION General Governmental Expenditures by Function — Last Ten Fiscal Years 1 110 General Governmental Revenues by Source - Last Ten Fiscal Years 2 111 Property Tax Levies and Collections -.Last Ten Fiscal Years 3 112 Assessed Value of Taxable Property - Last Ten Fiscal Years 4 113 Property Tax Rates - Direct and Overlapping Governments I ast Ten Fiscal Years 5 114 Principal Taxpayers 6 115 Property Value, Construction, and Bank Deposits 7 116 Ratio of Net General Long -Term Debt to Assessed Value and Net Long- Term Debt Per Capita Last Ten Fiscal Years 8 117 Ratio of Annual Debt Service Expenditures for General Long -Term Debt to Total General Governmental Expenditures - Last Ten Fiscal Years 9 118 Computation of Direct and Overlapping Debt 10 119 Demographic Statistics 11 120 Miscellaneous Statistical Data 12 121 iii INTRODUCTORY SECTION (this page intentionally left blank) PEMAND To the Honorable Mayor, Members of City Council and Citizens of the City of Pearland Pearland, Texas: TEX A S The comprehensive annual financial report of the; City of Pearland, Texas (the "City") for the fiscal year ended September 30, 2001, is hereby submitted Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all 'disclosures, rests with the City. To the best of our . knowledge and belief the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the: financial position and results of operations of the various funds and account groups of the City All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The comprehensive annual financial report is presented in three sections: Introductory, Financial, and Statistical Section. The Introductory Section includes this transmittal letter, the City's organizational chart, and a list ofprincipal officials. The Financial Section includes the general-purpose financial statements and the combining and individual fund and account group financial statements and schedules as well as the auditor's report on the financial statements and schedules The Statistical Section includes selected financial and demographic information, generally presented on a multi -year basis. The financial reporting entity (the City") includes all the funds and account groups of the primary government (i.e., the City of Pearland as legally defined) as well as all of its Component Units. Component Units are legally separate entities for which the primary government is financially accountable. The City provides the full range of municipal services contemplated by statute or charter. This includes police and fire protection, health and social services, public improvements, planning and zoning, and general. administrative services. The City also provides water sewer, and sanitation services. Additionally the City has an Economic Development Corporation, designed to attract and retain jobs and more fully develop the local ad valorem tax base Discretely presented and blended component units are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the primary government and to differentiate their financial position results of operations, and cash flows from those of the primary government. The Economic Development Corporation is reported as a discretely presented component unit as well as TlRZ #Land TIRZ #2. ECONOMIC CONDITION AND OUTLOOK The City of Pearland lies fifteen miles southeast of downtown Houston and ten miles from the Texas Medical Center in the northeast corner of Brazoria County, with small areas within Harris and Fort Bend Counties. Pearland is accessible by way of four major highways and is six miles from Houston Hobby Airport. 3519 LIBERTY DRIVE • PEARLAND, TEXAS 775811_5416-19 • (281) 485-2411 • www.ci.pearland.tx.us Sales tax receipts have shown favorable increases for the last several years. Permits for more than 1,000 single-family residences were issued in 2001. The Pearland Economic Development Corporation (PEDC) awarded incentive packages to either attract new businesses or allow existing businesses to expand MAJOR INITIATIVES The Pearland City Council sets its goals each year in a strategic planning workshop. Some of the highlighted goals include: • Enhance the transportation network to improve the efficiency of traffic movements. • Update land use and development standards and practices to reflect the goals of the Comprehensive Plan. • Create recreational opportunities to meet the needs of the citizens. • Maintain and enhance Pearland's high standards of public safety. • Reduce the frequency and severity of flooding. through a comprehensive storm watermanagement policy. • Ensure adequate water supply and wastewater treatment capacity for growth. • Ensure the City is financially sound and fiscally responsible. FUTURE OUTLOOK Brazoria County's current population is just under 228,000. It is estimated that this will increase to over 330,000 in the next ten to fifteen years According to the Brazoria County Partnership, job growth will be focused in four primary areas: 1) aerospace/high technology, 2) transportation and distribution, 3) petrochemical and downstream petrochemical companies, and 4) tourism. In late 1998, the City of Pearland created a Tax Increment Reinvestment Zone (TIRZ #2). This involved the annexation of over 3,000 acres west of the State Highway 288 (SH 288) corridor. The city limit now extends to portions of Fort Bend County. The proposed development, Shadow Creek Ranch, has the potential to develop the acreage over a fifteen to twenty year time frame. It is estimated that 7,000 new single-family homes, 1,800 assisted living units, and 3 900 multi -family units could be developed. .More than two billion dollars worth of value would be added over the next twenty years. Shadow Creek Ranch will not only improve roads in the area, but will also bring in sewer and drainage, water, and major landscaping to the area The added population poises SH 288 for major retail and commercial development that could eventually include major office buildings, a hospital, and hotels. DEPARTMENT FOCUS Finance: The Finance Department continues to improve in multiple major areas. Additional staff has allowed for enhanced interest earnings and improved financial projections. The department continues to submit winning GFOA awards for budget presentation and financial audit reporting. Purchasing procedures have allowed the city to streamline and centralize its purchasing function. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectivesare met. The concept of reasonable assurance recognizes that (1) the cost of controls should not exceed the benefits expected to be derived and (2) the evaluation of costs and benefits requires estimates and judgments by management. Accounting Controls. We believe that the City's accounting controls provide reasonable assurance that errors or' irregularities that could be material to the financial statements are prevented or would be detected within a timely period by employees in the normal course of performing their assigned function. Budgeting Controls. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City s governing body. Activities of the General, Debt Service, and Enterprise Funds are included in the annual appropriated budget. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is the total approved budget for each department. As demonstrated bythe statements and schedules.included in the financial section of this, report, the City continues to meet its responsibility for sound financial management. General Government Functions The revenue from the general, special revenue, and debt service funds, and the amount and percentage of increases and decreases in relation to prior year revenue, is summarized in the following schedule Revenue Source Property taxes and penalties Sales and hotel/motel taxes Franchise and gross receipts taxes Licenses and permits Fines and forfeitures Intergovernmental Charges for services Interest Other 2001 Amount 10,833,292 4,862,571 2,303,730 1,896,728 856,641 333,677 3,202,767 416,572 1,491,941 26,197,919 2001 Percent 2000 of Total Amount 41•4 9,272,373 18 6 3,745,460 8.8 2,022,789 7.2 1,469,799 3.3 ; 731,959 ' 1.3 318,631 12.2 3,061,545 1.6 488,484 5.7 687,003 100.0 21;798,043 2000 Percent Increase of Total (Decrease) Percent of Increase (Decrease) 42.5 1560,919 17.2 1,117,111 9.3 280,941 6.7 426,929 3.4 124,682 1.5 15,046 14.0 41,222 2.2 (71,912) 3.2 804,938 100.0 4,399,876 16.8 29.8 13.9 29 17 .47 046 (14.7) 117 The most significant percentage increase in revenue was derived from Licenses and Permits. This was due primarily to the continued growth of the city and related building permits. The percentage changes between the "interest' and "other" line items offset each other. Allocations of property tax levy by purpose for 1999-2000 fiscal year and the preceding two fiscal years are as follows (amount per $100/assessed value): Purpose 2001 2000 1999 General Fund General Obligation Debt Total Tax Rate 0.435 0.260 0.695 0.440 0.255 0.695 0.440 0.255 0.695 The expenditures for the general, special revenue, and debt service funds and the amount, and percentage of increases and decreases inrelation to the prior year expenditures, are summarized in the following schedule. Function 2001 2001 Amount Percent of Total 2000 Amount 2000 Increase Percent of (Decrease) Total Percent of Increase (Decrease) General Government Public Safety Public Works Community Services Debt service $ 4,235,344 18.5 6,692,138 5,974,667 2,662,369 29.3 26.2 11.7 $ 3,971,691 19 1 $ 263,653 6.6. 5,952,191 5,635,397 1,781,610 28.6 27.1 8.6 739,947 339,270 870,759 12.4 6.0 4.9 3,275,682 14.3 3,436,061 16.5 160,379 4.7 Enterprise Operations. The government's enterprise operations are comprised of the Water and Sewer System Water and Sewer System Operating revenues totaled $7,430,607 compared to $7,146,031 last year, a 4.0% increase. The increase is due to increase in growth and annexations. Comparative data for the past two fiscal years are presented in the following schedule 2000-01 1999-00 Operating revenues Operating expenses (before depreciation) Operating income (before depreciation) Number of customers $ 7,453,484 4,946,621 2,806,863 11,780 $ 7,146,031 3,899,289 3,246,742 11,000 Debt Administration. The ratio of net debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management, citizens, and investors. These data for the City of Pearland at September 30, 2001, are presented in the statistical section of this report. The City's assigned "insured" bond ratings on its most recent issue were as follows: Moody's Standard & Poors Revenue Bonds AAA AAA Tax Bonds AAA AAA Cash Management. Cash, temporarily idle during the year, was invested in certificates of deposit ranging from 60 to 365 days to maturity. Certificate of deposit and cash amounts which exceed FDIC coverage are collateralized by securities owned by the City's, depository. All investments held by the City during the year and at September, 30 2001, are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board. Risk Management. During 2000-01, the City continued an aggressive risk management program for worker s compensation. Various risk control techniques, including employee accident prevention training, have been emphasized during the year in order to minimize accident -related losses. OTHER INFORMATION Independent Audit. The City Charter requires an annual audit of the books of account, financial records, and transactions of all administrative departments of the City by an independent certified public accountant. The accounting firm of Pattillo, Brown and Hill, L.L.P. was selected by the City Council to perform this years audit. This requirement has been complied with and the auditors' opinion has been included in this report. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate > of Achievement for Excellence in Financial Reporting to the City of Pearland for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2000. This was the twenty fourth 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, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, the government also received the GFOA's Award for Distinguished Budget Presentation, the fourteenth consecutive year for its annual appropriated budget dated September 13, 2000. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization, Acknowledgments. We would like to express our appreciation to all members of the Finance and Administration Department who assisted and contributed to its preparation. We would also like to thank the Mayor, members of. the City Council, and City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner R pectfully sub • 'tied, y Cau ey for of Finance March 15, 2002 Certificate of Achievement • for ExcellOte-• in Financial Reporting Presented to. City of Pearland, Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2000 A Certificate of Achievement for Excellence in Financial Reporting is presented by. the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annualfinancial reports (CAFRs) achieve the highest standards in government accounting and financial reporting: Executive Director CITIZENS MUNICIPAL JUDGES ECONOMIC DEVELOPMENT CITY COUNCIL CTTY MANAGER f CITY ATTORNEY FINANCE ACCOUNTING PURCHASING UTILITY BILLING INFORMATION SYSTEMS FIRE MARSHAL/ EMERGENCY MANAGEMENT FIRE EMERGENCY MEDICAL SERVICES PARKS & RECREATION RECREATION PARKS/ BUILDING MAINTENANCE COMMUNITIY CENTER KNAPP BUILDING CUSTODIAL DEPUTY .CITY MANAGER ENGINEERING I PROJECTS I I PUBLIC WORKS f FLEET MAINTENANCE STREETS AND DRAINAGE WATER PRODUCTION AND WASTEWATER TREATMENT WATER AND WASTEWATER DISTRIBUTION AND COLLECTION WATER AND WASTEWATER CONSTRUCTION POLICE I CRIMINAL INVESTIGATION DIVISION CIVILIAN COMMUNITY. SERVICE PATROL EXECUTIVE DIRECTOR OF ADMINISTRATIVE SERVICES (CITY SECRETARY HUMAN RESOURCES MUNICIPAL COURT COMMUNITY DEVELOPMENT ANIMAL CONTROL BUILDING INSPECTION CODE ENFORCEMENT PLANNING AND ZONING I GRANTS/PUBLIC AFFAIRS CITY OF PEARLAND, TEXAS List of Principal Officials As of September 30, 2001 Elected Officials Tom Reid Larry Marcott (Position 4) Richard Tetens (Position 1) Woody Owens (Position 2) Larry Wilkins. (Position 3) Klaus Seeger (Position 5) Appointed Officials Bill Eisen Young Lorfing Darrin Coker Mayor Council Member, Mayor Pro Tem Council Member Council Member Council Member Council Member City Manager City Secretary City Attorney Page 1 of 2 CITY OF PEARLAND, TEXAS List of Principal Officials As of September 30, 2001 Executive Managers Vacant Executive Director of P E D C Jimmy Causey Director of Finance Chris Doyle Police Chief Larry Steed Fire Marshal/Emergency Management Director Page 2 of 2 Tobin Maples Manager of Administrative Serv. Ed Hersh Director of Parks & Recreation Glenn Chaney Municipal Court Judge Edward Sillas Municipal Court Judge Floyd Myers Municipal Court Judge FINANCIAL SECTION (this page intentionally left blank) 1-11:.111 PATTILLO, BROWN &.' HILL, L.L.P CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS INDEPENDENT AUDITORSREPORT To the Honorable Mayor and Members of the City Council City of Pearland, Texas We have audited the accompanying general purpose financial statements of the City of Pearland, Texas, as of and for the year ended September 30, 2001, as hsted m the table of contents. These general purpose financial statements are the responsibility of' the City's management. Our responsibility is to express an opimon on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted m the United States of America. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement An audit includes examumng, on a test basis evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opmion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Pearland, Texas, as of September 30, 2001, and the results of its ;operations and the cash flows of its proprietary fund type for the year then ended in conformity with accounting principles generally accepted in the !Anted States of America. Our audit was made for the purpose of' forming an opimon on the general purpose financial statements taken as a whole. The combining and Individual fund and account group financial statements and schedules listed m the table of contents are presented for purposes of additional analysis and are not a required part of the City's general purpose financial statements. Such information has been subjected to the auditing procedures apphed m the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 401 WEST HIGHWAY 6 ■ P.O. BOX 20725 ■ WACO, TX 76702-0725 ■ (254) 772-4901 • FAX: (254) 772-4920 • www.pbhcpa.com. AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778 HILLSBORO, TX (254) 582-2583 ■ TEMPLE, TX (254) 791-3460 ALBUQUERQUE, NM (505) 266-5904 ■ RIO RANCHO, NM (505) 898-3516 =13 The Required Pension System supplementary mformation listed in the table of contents is not a required part of the general purpose financial statements, but is supplementary information required by the Government Accounting Standards Board. We have applied certain limited procedures, which consisted pnncipally of inquiries of management regarding the methods of measurement and presentation of the additional information. However, we did not audit the information and express no opinion on it. fa, is %It, L. January 9, 2002 GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF PEARLAND, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT Assets and Other Debits Assets Cash and cash equivalents Investments Receivables: Property taxes Accounts Receivable Less:Allowance for estimated uncollectibles Taxes Accrued interest Due from other funds Inventories Restricted assets Cash and cash equivalents Deferred charges Construction under progress Fixed assets (net where applicable of accumulated depreciation) Other Debits Amount available for debt service Amount to be provided for retirement of general long-term debt Total Assets and Other Debits Liabilities, Equity, and Other Credits Liabilities Accounts payable Accrued liabilities Due to other funds Security deposits Accrued compensated absences Deferred revenue Deferred issurance cost Currentportion-revenue bonds Certificates of obligation Revenue bonds -less current portion Obligations under capital leases General obligation bonds Total Liabilities Equity and Other Credits Contributed capital Investment in general fixed assets Retained earnings Fund Balances: Reserved for encumbrances Reserved for inventories and prepaid items Unreserved: Designated for debt service Designated for subsequent years' expenditures Undesignated Total Equity and Other Credits Total Liabilities, Equity, and Other Credits September 30, 2001 with comparative totals for September 30,2000 Governmental Fund Types General 7,013,997 364,222 230,060 (65,590) 1,937,737 251,721 51,915 9,784,068 565,968 24,032 1,486,763 551,048 592,314 3,220,125 471,659 Rim 111 • 6,092,283 6,563,942 9,784,068 Special Revenue 800,021 208,858 58,664 N. 1,067,544 1,066 192,163 13,631 206,860 114 860,684 Debt Service 1,579,418 186,326 MI I 1,765,744 34,432 186,326 220,758 1,544,987 860,684 1,544,987 1,067,544 1,765,744 Capital Projects 2,757,104 187,841 1,541,676 4,486,621 675,225 141,676 15,966 IOW *01 832,867 961,855 2,691,899 3,653,754 4,486,621 Proprietary Fund Type Enterprise Fund 25,017,902 1,313,490 (115,883) 41,649 31,549 444,949 657,777 11,423,287 24,323,738 63,138,458 320,991 132,292 63,008 623,913 231,192 • 52,002 645,000 32,495,000 34,563,398 22,233,110 6,341,950 28,575,060 63,138,458 See Notes to Financial Statements. -16- Account Groups General General Long - Fixed Assets Term Debt 54,639,165 54,639,165 54,639,165 54,639,165 54,639,165 1,544,987 28,308,383 29,853,370 1,488,646 15,680,000 74,724 12,610,000 29,853,370 29,853,370 Totals Primary Government (Memorandum Only) 37,168,443 550,548 1,940,250 (181,473) 1,937,737 41,649 1,883,610 51,915 444,949 657,777 11,423,287 478,962,903 1,544,987 28,308,383 164,734,970 1,597,681 156,324 1,883,610 623,913 2,270,886. 808,237 52,002 645,000 15,680,000 32,495,000 74,724 12,610,000 68,897,378 22,233,111 54,639,165 6,341,950 1,433,514 1,544,987 3,552,583 6,092,283 95,837,593 164,734,970 Discretely Presented Component Units 4,064,935 479,643 271,274 55,403 4,668,528 9,539,783 8,544 9,996 271,274 18,528 4,650,000 4,958,342 55,403 4,526,038 4,581,441 9,539,783 Sept. 30,2001 Totals (Memorandum Only) Sept 30,2000 41,233,378 550,548 2,419,893 (181,473) 1,937,737 41,649 2,154,884 51,915 444,949 657,777 11,423,287 79,018,306 1,544,987 32,976,911 174,274,748 1,606,225 166,320 2,154,884 623,913 2,289,414 808,237 52,002 645,000 15,680,000 32,495,000 74,724 17,260,000 73,855,720 22,233,111 54,694,568 10,867,988 1,433,514 1,544,987 3,552,583 6,092,283 100,419,034 174,274,748 Exhibit 1 44,192,063 479,170 1,614,714 (147,611) 242,178 195,096 674,041 51,678 425,136 503,652 78,269,995 681,148 35,638,251 162,819,511 2,601,686 344,235 674,041 528,630 1,559,010 510,736 680,000 16,210,000 33,140,000 381,250 18,410,000 75,039,588 18,054,250 49,389,680 5,207,320 2,555,094 681,148 3,456,988 8,435,443 87,779,923 162,819,511 CITY OF PEARLAND, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Revenues Property taxes and penalties Other taxes Licenses and permits Fines and forfeitures Franchise fees Charges for services Intergovemmentalrevenues Other revenues Total Revenues Expenditures Current: General government Public safety Public works Community services Economic Development Capital Outlay Debt Service Principal retirement Interest and fiscal charges Total Expenditures Revenues Over (Under) Expenditures Other Financing Sources (Uses) Operating transfers in from enterprise funds Operating transfers (out) Operating transfers in from component unit (P.E.D.C.) Operating transfers/transfer to enterprises fund Proceeds from lease financing ' Grant Total Other Financing Sources (Uses) Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses) Fund Balances -Beginning Prior Period Adjustment Fund Balances - Ending Year Ended September 30, 2001 with comparative totals for Year Ended September 30, 2000 Governmental Fund Types General 6,784,591 4,810,098 1,896,728 856,641 2,303,730 3,202,767 848,712 20,703,267 4,217,744 6,692,138 5,974,667 2,043,620 18,928,169 1,775,098 700,000 (2,427,285) 110,000 (1,617,285) 157,813 5,205,209 1,200,920 6,563,942 Special Revenue 52,473 333,677 454,629 840,779 17,600 618,749 636,349 204,430 52,794 52,794 257,224 603,462 860,684 Debt Service 4,048,701 90,820 4,139,521 1,680,000 1,595,682 3,275,682 863,839 863,839 681,148 1,544,987 Capital Projects 567,146 567,146 4,516,726 4,516,726 (3,949,580) 2,246,491 212,768 30,000 2,489,259 (1,460,320) 5,114,075 3,653,754 Totals (Memorandum Only) Primary Government 10,833,292 4,862,571. 1,896,728 856,641 2,303,730 3,202,767 333,677 1,961,306 26,250,713 4,235,344 6,692,138 5,974,667 2,662,369 4,516,726 1,680,000 1,595,682 27,356,926. (1,106,214) 700,000 (128,000) 322,768 894,768 (211,446) 1,603,894 1,200,920 11,392,448 Discretely Presented Component Units 2,397,275 407,317 2,804,592 ,079,177 403,722 370,616 1,853,515 951,077 (322,76 (322,761) 628,309 3,524,782 372,948 4,526,038 Total Reporting Entity (Memorandum Only) 2001 10,833,292 7,259,846 1,896,728. 856,641 2,303,730 3,202,767 333,677 2,368,623. 29,055,305 4,235,344 6,692,138 5,974,667 2,662,369 1,079,177 4,920,448 2,050,616 595,682 29,210,441 (155,137) 700,000 (128,000) 7 572,007 416,863 15,128,676 ,573,868 15,918,486 Exhibit 2 2000 9,272,373. 5,587,378 1,469,799 731,959 2,022,789 3,061,545 318,631 2,684,796 25,149,270 3,971,691 5,952,191' 5,635,397 1,781,610 531,969 2,380,880 1,695,000 1,741,061 23,689,799 ,459,471 1,575,967 (922,967) 223,880 876,880 2,336,351 2,792,321 5,128,672 CITY OF PEARLAND, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND DEBT SERVICE FUNDS Revenues Property taxes and penalties Other taxes Licenses and permits Fines and forfeitures Franchise fees Charges for services Intergovernmental revenues Other revenues Total Revenues Expenditures Current: General government Public safety Public works Community services Debt Service: Principal retirement Interest and fiscal agent fees Total Expenditures Other Financing Sources Operating transfers in Operating transfers (out) Operating in from component unit (P.E.D.C.) Total Other Financing Sources(Uses) Revenues and Other Financing Sources Over (Under) Expenditures Fund Balances - Beginning Prior Period Adjustment Fund Balances - Ending See Notes to Financial Statements. Year Ended September 30, 2001 General Fund Budget 7,013,350 4,237,800 1,097,500 759,700 2,012,000 3,273,550 130,000 639,775 19,163,675 4,185,324 7,019,360 6,122,085 2,033,143 19,359,912 700,000 (974,491) 110,000 (164,491) (360,728) 5,205,209 4,844,481 Actual 6,784,591 4,810,098 1,896,728 856,641 2,303,730 3,202,767 848,712 20,703,267 4,217,744 6,692,138 5,974,667 2,043,620 18,928,169 700,000 (2,427,285) 110,000 (1,617,285) 157,813 5,205,209 1,200,920 6,563,942 Variance Favorable (Unfavorable) (228,759) 572,298 799,228 96,941 291,730 (70,783) (130,000) 208,937 1,539,592 (32,420) 327,222 147,418 (10,477) 431,743 (1,452,794) (1,452,794) 518,541 1,200,920 1,719,461 Exhibit 3 Debt Service Fund Budget 4,153,856 40. 53,000 4,206,856 1,680,000 2,409,600 4,089,600 50,000 50,000 167,256 681,148 848,404 Actual 4,048,701 90,820 4,139,521 1,680,000 1,595,682 3,275,682 863,839 681,148 1,544,987 Variance Favorable (Unfavorable) 37,820 (67,335) 813,918 813,918 (50,000) 746,583 696,583 CITY OF PEARLAND, TEXAS COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND TYPES (ENTERPRISE FUND) Year Ended September 30, 2001 Operating Revenues Water & sewer sales and services Other revenue, Total Operating Revenues Operating Expenses Production and wastewater Distribution and collection Accounting and collections Other requirements Construction Total Operating Expenses Operating Income Before Depreciation Depreciation Operating Income Non -Operating Revenue Earnings on investments Interest and fiscal charges Total Non -Operating Revenues (Expenses) Operating Transfers In (Out) Operating transfers in Operating transfers (out) Net transfer in (out) Net Income Retained Earnings - Regaining Prior Period Adjustment Retained Earnings - Ending See Notes to Financial Statements. Exhibit 4 Enterpnse 7,360,207 93,277 7,453,484 2,636,816 699,535 366,716 245,082 998,472 4,946,621 2,506,863. 1,080,173 1,426,690 1,273,735 (1,556,331) (282,596) 400,774 (700,000) (299,226) 844,869 5,207,320 289,759 6,341,950 CITY OF PEARLAND, TEXAS COMBINED STATEMENTS OF CASH FLOWS PROPRIETARY FUND TYPES (ENTERPRISE FUND) Year Ended September 30, 2001 Cash Flows from Operating Activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in Assets and Liabilities: (Increase) in accounts receivable Increase (decrease) in due from other fund Increase in customer deposits Increase (decrease) in accounts payable Increase (decrease) in accrued compensated absences (Decrease) in accrued liabilities Net Cash Provided by Operating Activities Cash Flows from Noncapital Financing Activities Operating transfers in Operating transfers (out) Cash Flows from Capital and Related Financing Activities Contributed capital impact fees Purchase of fixed assets Revenue bond principal payments Capital lease principal payments Deferred issurance cost Cash Flows from Investing Activities Interest on investments Interest payments on revenue bonds Prior period adjustment Net (decrease) in cash Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending Cash Restricted Cash Cash and Cash Equivalents - Ending See Notes to Financial Statements. Exhibit 5 Enterprise 1,426,690 1,080,173 (111,059) 528,915 95,283 (1,238,258) 59,517 41,592 1,882,854 400,774 (700,000) (299,226) 4,178,860 (7,946,883) (585,000) (102,123) (4,455,146) 1,374,843 (1,556,331) (181,488) 289,759 (2,763,247) 28,226,104 25,462,851 25,017,902 444,949 25,462,851 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Pearland, Texas, wasincorporated in December 1959 and adopted the "Home Rule Charter" February 6, 1971, pursuant to the laws of the State of Texas. The City operates under a "Council -Manager" form of government and provides services authorized by its charter. Presently, these services include police and fire protection, 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. The financial statements of the City of Pearland have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The. Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below: A. Reporting Entity The City is an independent political subdivision of the State of Texas, governed by an elected mayor and five member council, and is considered a primary government. As required by generally accepted accounting principles, these general purpose financial statements have been prepared based on considerations regarding the potential for inclusion of other entities organizations, or functions as part of the City's financial reporting entity. The Pearland Economic Development Corporation (PEDC.) has been included in the City's financial reporting entity as a discretely presented component unit. The City is considered a primary government for financial reporting purposes and its activities are not considered a part of any other governmental or other type of reporting entity. Considerations regarding the potential for inclusion of otherentities, 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. Additional 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. As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Pearland (the pnmary government) and its component units, entities for which the City is considered to be financially accountable. Blended component units although legally separate entities, are, in substance, part of the government's operations and so data for these units would be combined with data of the City. The City has no blended component units. The City's discretely presented component unit is reported in a separate column in the combined financial statements. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) A. Reporting Entity (continued) Discretely Presented Component Unit: The component units in the combined financial statements include the financial data of the City's component units. They are reported in a separate column to emphasize they are legally separate from the City. The City Council appoints the board members for the Pearland Economic Development Corporation. The City Council appoints several members to the Tax Increment Reinvestment Zones with the remaining members being appointed in accordance with state law. 1. The Pearland Economic Development Corporation (PEDC) is responsible for economic development with the City's jurisdiction. The PEDC is fiscally dependent upon the government because, besides appointing the board, the City Council also must approve the PEDC's budget and any debt issuances. 2. The two Tax -Increment Reinvestment Zone's (TIRZ #1 and TIRZ #2) provide 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 the TIRZ's budgets and any debt issuances. The following page presents condensed financial statements for each of the ;three discretely presented component units. Additional financial information may be obtained from their respective administrative offices at the following address: Pearland Economic Development Corporation Or Tax Increment Reinvestment Zones 3519 Liberty Drive Pearland, Texas 77581-5416 25 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Condensed financial statements of each discretely presented component unit are as follows: Assets: Current Assets Accouts Receivable Due from other fund Fixed assets Amount to be provided for retirement of long-term debt Total Assets Liabilities: Current Liabilities Due to other fund General long-term debt Total liabilities Fund Equity: Investment in fixed assets Fund balance, unreserved Total Equity Total Liability and Equity Revenues Economjc Development Corpora tion Tax Increment Tax Increment Reinvestment Reinvestment Zone #1 Zone #2 Condensed Balance Sheet 4,046,262 479,643 271,274 55,403 4,668,528 9,521,110 37,068 4,650,000 4,687,068 55,403 4,778,639 4,834,042 9,521,110 18,673 18,673 18,673 18,673 18,673 271,274 271,274 (271,274) (271,274) Condensed Statements of Revenues, Expenditures, and Changes in Equity Expenditures Current Capital outlay Debt service Total expenses Excess (Deficiency) of Revenues Over(Under) Expenditures Other Financing uses Operating transfers out to primary government Excess of Revenues and Other Sources Over Expenditures and Other uses Fund Equity, Beginning of Year 2,563,091 537,625 403,722 370,616 1,311,963 1,251,128 (322,768) 928,360 3,477,332 175,137 225,000 225,000 (49,863) (49,863) 68,536 66,364 316,552 316,552 (250,188) (250,188) (21,086) Totals 4,064,935 479,643 271,274 55,403 4,668,528 9,539,783 37,068 271,274 4,650,000 4,958,342 55,403 4,526,038 4,581,441 9,539,783 2,804,592 1,079,177 403,722 370,616 1,853,515 951,077 (322,768) 628,309 3,524,782 Prior period adjustment Fund Equity, End of Year 372,948 4,778,639 -26- 18,673 (271,274) 372,948 4,526,037 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 B. Fund Accounting The City, uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self -balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they, do not directly affect net expendable available financial resources. The following is a description of the various funds and account groups: Governmental Fund Types General Fund The General. Fund is used to account for all financial transactions not properly includable in other funds. The principal sources of revenues of the General Fund are property taxes, sales and use taxes, franchise fees, permit fees, and fines and forfeitures. Expenditures are for general government, finance, public safety, public works, park maintenance and recreation, municipal, court planning and zoning, and engineering. Special Revenue Funds The Special Revenue Funds are used to account for all financial transactions for the Regional Detention, Hotel/Motel Tax, Police, Federal Police, Community Service Funds, and special grant revenues where the funds are for specific uses. Debt Service Fund The Debt Service Fundis used to account for the payment of interest and principal on all general obligation debts of the City. The primary source of revenue for debt service is local property taxes. NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B Fund Accounting (continued) Capital Projects Funds The Capital Projects Funds are used to account for the proceeds from the sale of general obligation bonds and certificates of obligation and expenditures of' these proceeds for the acquisition of fixed assets as, designated in each bond issue. Proprietary Fund Types Enterprise Fund The Enterprise Fund is used to account for those operations that are financed and operated in a manner similar to private business or where the Council has decided that the determination of revenues earned, costs incurred, and/or net income is necessary, for management accountability. The Enterprise Fund is used to account for the City's water and sewer service operations. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 Account Groups General Fixed Assets Account Group General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed asset account group. All purchased fixed assets are valued at cost. Donated fixed assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset, or materially extend asset lives, are not capitalized. Improvements to fixed assets are capitalized. Assets in the general fixed asset group are not depreciated Interest is not .capitalized on general fixed assets acquired through the issuance of tax exempt debt. Public domain (infrastructure) general fixed assets, consisting ofroads, bridges, curbs and gutters, streets, and drainage systems, are capitalized. General Long -Term Debt Account Group This account group is used to account for the City's long-term liabilities, which include general obligation bonds, certificates of obligation and obligations under capital leases due at varying dates through 2020, and the long-term liability for employees' accrued compensated absences. C. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus As such, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (revenues and other financing resources) and decreases (expenditures) in net current assets. NOTE 1 -. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Basis of Accounting (continued) The proprietary fund type and component unit are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of the funds are included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital, if applicable, and retained earnings components. Proprietary fund -type operating statements present increases (revenues) and decreases (expenses) in net total assets. The modified accrual basis of accounting is used by the governmental fund types. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (when they become both measurable and. available). "Measurable" means the amount of the transaction can be determined and 'available' means collectible within the current period or soonenough thereafter to be used to pay liabilities of the current period The City considers the majority of its major revenues as available when CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 collected. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as liabilities when due Those revenues susceptible to accrual under the modified accrual basis are property taxes and other taxes (primarily sales taxes), franchise fees, intergovernmental revenue, and interest revenue. Licenses and permits and fines and forfeitures revenues are not susceptible to accrual because generally they are not measurable until received in cash. The City recognized deferred revenue on its balance sheet Deferred revenue arises when potential revenue does not meet both the ,"measurable' and "available" criteria for recognition in the current period. The accounts of the proprietary fund type and component unit are maintained, and the financial statements have been prepared, on the accrual basis of accounting. Under this basis, revenues are recognized when they are earned and expenses are recognized when they are incurred. The proprietary fund type and component unit follow ;generally accepted ` accounting principles prescribed by the Governmental Accounting Standards Board (the GASB) and all Financial Accounting Standards Board's standards issued prior to November 30 1989. Subsequent to this date, the City accounts for its proprietary fund type and component unit as prescribed by the GASB D. Budgets Annual budgets are adopted for the General and Debt Service Funds The City does not legally adopt an annual budget for the Special Revenue and Capital Project Funds. The City adopts project budgets for the Capital Projects and Special Revenue Funds, which are revised annually.; These budgets are created by ordinance and include all sources and uses of funds as approved by Counc 1. All annual budgets are prepared on a basis consistent with generally accepted accounting principles (GAAP). . NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Budgets (continued) ` Encumbrance accounting is utilized in all governmental fund types. Encumbrances for materials, other goods, and purchased services are documented by purchase orders or contracts. Encumbrances outstanding at year-end do not constitute expenditures or liabilities The City generally honors these commitments and it has been the City's practice to increase the subsequent year's appropriations to complete these transactions. At year-end, the City reserved a portion of fund balance for outstanding encumbrances of $254,410 in the General Fund and $2,123,466 in the Capital Projects Fund. E. Cash and Temporary Investments Cash and temporary investments consist of amounts in an interest bearing time deposit account, petty cash funds, Texpool and Lone Star Investment Pool. Texpool and Lone Star Investment , Pool are CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 external investment pools established by interlocal contract under state law. Investmentsare stated at fair value based on quoted market prices at September 30, 2001. The net increase or decrease in the fair value of investments is recorded as investment earnings. Investments aregenerally held to maturity. 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 securities and disclosed as part of the City's. investments. The City pools excess cash of the various individual funds to purchase 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 its respective share of pooled investments, F. Receivables All trade receivables are shown net of an allowance for uncollectibles. Property taxes are recorded as revenue when levied for the current year and due, payable and collected in the current year. Uncollected amounts at year end are reported as deferred revenue. Property taxes collected within sixty days subsequent to September 30, 2001, were not considered, material. G. Interfund Receivables and Payables During the course of operations, transactions occur between individual funds for specified purposes. These receivables and payables are classified as "due from other funds" or ' due to other funds' on the combined balance sheet. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) H. Use of Estimates The preparation of financial statements, in conformity with generallyaccepted 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 the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates. I. Use of Estimates Inventory, which consists of gasoline 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 used. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 J. Restricted Assets Certain proceeds of Enterprise Fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the combined balance sheet becausetheir use is limited by applicable bond covenants. K. Compensated Absences Compensated absences, which include unpaid vacation, sick, and other employee benefit amounts, are accumulated during employment. Amounts accumulated are paid to employees upon separation from City service Under. the modified accrual basis of accounting, such amounts are recorded in the General Long -Term Debt Account Group net of amounts expected to be liquidated with expendable available financ'al resources at the end of the fiscal year, which are recorded as expenditures of the General Fund. Compensated absences are accrued when incurred in the proprietary funds and recorded as a fund liability. L. Fund Equity Contributed .capital is recorded in Proprietary Funds that have received capital grants or contributions fromdevelopers customers or other funds. Reserves represent those portions of fund equity not available for expenditure or legally segregated for a specific future use. Designations of fund balance represent tentative management plans that are subject to change. M. Cash and Cash Equivalents For the purpose of the Statement of Cash Flows, the Proprietary Fund Type and component unit consider all investments with original maturities of three months or less from the date of acquisition to be cash equivalents. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) N. Total Columns on Combined Statements Total columns on the combined statements are captioned (Memorandum Only) to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations for the City as a whole in conformity with generally accepted accounting principles. NOTE 2 - BUDGETARY COMPLIANCE The City Manager, on or before the tenth day of July of each year, shall submit to Council a proposed budget The Council shall review the proposed budget and revise as deemed appropriate prior to circulation for public hearing. After the public hearing, the Council may adopt the budget with or without amendment. In amending the budget, Council may add or increase programs or amounts and may delete or decrease any amount, except expenditures required by law or for debt or for estimated cash deficits, provided no amendments to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income plus funds available from prior years. The Council shall adopt the budget by the 15th of September of each year. Adoption of the budget shall constitute appropriation of the amounts specified therein as expenditures and shall constitute a levy of the property tax therein proposed. Every appropriation lapses at the close of the fiscal year to the extent it has not been expended. Any encumbered appropriation lapses at year-end but is generally reappropriated as part of the subsequent year's budget.. Expenditures may not legally exceed appropriations at the fund level. At any time during the fiscal year the City Manager may request Council to transfer by ordinance any unencumbered appropriation balance between funds. No significant supplemental appropriations were necessary during the year. NOTE 3.- DEPOSITS (CASH) AND INVESTMENTS The City's cash and investments are classified ascash and cash equivalents, investments, and restricted cash and investments. The cash and cash equivalents include cash on hand, deposits with financial institutions, short term investments in external public funds investment pool accounts Texpool and Lone Star and other investments which have maturities at purchase date of less than three months. The restricted cash includes cash on deposit with financial institutions. For better management of cash, the City pools the cash, based on the City's needs, into either deposits in the bank, in short term investments with Texpool, and Lone Star orin longer -term investments in commercial paper or US Government securities. However each fund's balance of cash and investments is maintained in the books of the City. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 3 - DEPOSITS (CASK) AND INVESTMENTS (continued) The Council has adopted a written investment policy regarding the investment of its funds as defined by the Public Funds Investment Act (Chapter 2256 Texas Government Code). The investments of City are m compliance with the Council's investment policies. It is the City's policy to restrict its investments to direct obligations of the, U.S. Government, .commercial paper, fully collateralized certificates of deposit and other interest-beanng time and demand deposits, and other instruments and investments in public funds investment pools such as the Texas Local Government Investment Pool (Texpool), and Lone Star special purpose trust companies authorized by the Texas Legislature in 1986. State law provides that collateral pledged as security for bank deposits must have a market value of not less than the uninsured amount of the deposits and must consist of (1) obligations of the United States of 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. Cash and Cash equivalents At year-end, the City had cash on hand bank deposits, deposits with Texpool ($24,166,199) and Lone Star ($468) as follows: Cash - Note 3 Cash On Hand General 1,375 Special Revenue Debt Service Capital Projects Enterprise P.E.D.C. Bank Deposits< 693,725 • 785,021 84,577 1,611,913 800 .•3,217,885 623,324 2,175 $ 7,016,445 Cash Equivalent Investments 6,318,897 15,000 1,494,841 1,145,191 22,244,176 3,441,611. $ , 34,659,716 Total 7,013,997 800,021 1,579,41.8 2,757,104 25,462,85,1 4,064,935 $ 41,678,325 Credit Risk Categorization for Deposits It is the City's policy for deposits to be 100% securedby collateral valued at market or par, whichever is lower, less the amount of the Federal Deposit Insurance Corporation insurance. The City's pooled and non -pooled deposits are categorized to give an indication of the level of risk assumed by the City at September 30, 2001. The categories are described as follows* -33- CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 3 - DEPOSITS (CASH) AND INVESTMENTS (continued) Credit Risk Categorization for Deposits (continued) Category 1- Deposits which are insured or collateralized with securities held by the City or by its agent in the City's name. Category 2- Deposits which are collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3- Deposits which are not collateralized or collateralized with securities held by the pledging financial institution or by its trust depai tinent or agent but not in the City's name. The City's deposits in banks of $6,827 728 at year-end were entirely covered by federal depository insurance or by acceptable collateral held by the City's agent in the City's name. The deposits in Texpool and Lone Star are not evidenced by securities that exist in physical or book entry form and, accordingly, are not categorized by risk. However, the nature of these funds requires that they be used to purchase investments authorized by the Public Funds Act. The primary objective of these investment pools is to provide a safe environment for the placement of public funds in short-term fully collateralized investments. The State Comptroller of Public Accounts exercises oversight responsibility over Texpool, the Texas Local Government Investment Pool. Oversight includes the ability to significantly influence operations, designation of management and accountability for fiscal matters. Additionally the State Comptroller has established an advisory board composed of both participants in Texpool and other persons who do not have a business relationship with Texpool The Advisory Board members review the investment policy and management fee structure Finally, Texpool is rated AAAm by Standard & Pools, as well as the office of the Comptroller of Public Accounts for review. Texpool and Lone Star operate in a manner consistent with the SEC s Rule 2a7 of the. Investment Company Act of 1940. The pools amortized cost rather than market value to report net assets to compute share prices. Accordingly the fair value of the position in Texpool is the same as the value of Texpool shares Fair value of investments are based on quoted market prices in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. The amount of increase or decrease in the fair value of investments during the year ended September 30, 2001 was not significant. NOTE 4 - PROPERTY TAXES Property taxes for each year are required to be levied by September 15 and are due upon receipt of the City's tax bill and become delinquent on February 1 of the following year. On January 1 of each year, a tax lien is attached to the property to secure the payment of all taxes, penalties, and interest. The lien exists in the favor of the State and each taxing unit. Appraised values are established by the Central Appraisal District (CAD) of Brazoria County, Texas, through procedures established by the Texas Legislature. The Pearland Independent School District bills and collects the City s property taxes. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 4 - PROPERTY TAXES (continued) The procedure for collection of delinquent taxes is to send out delinquent notices and a letter and then refer the delinquent accounts to the Tax Attorney for legal action. The Home Rule Charter requires the foreclosure proceedings no later than two years after taxes first become delinquent. A penalty of 7% is added to delinquent taxes on February 1 and increases 2% each month through September. An additional penalty of 15%. is added in July for attorney costs. There are no discounts allowed in taxes. The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter, to levy property taxes up to $2.50 per $100 of assessed valuation for general governmental services. Within the $2.50 maximum levy, there is no legal limit upon, the amount of property taxes, which can be levied for debt service. The property tax rates to finance general governmental services and debt service for the 2000-2001 tax year were $.43500 and $.26000, respectively, per $100 of assessed valuation. The 2000 assessed value and total tax levy as adjusted through September 30, 2001, were $1,524,504,879 and $1,320,032,285, respectively. The following is an analysis of the September 30, 2001, delinquent tax balances m the General and Debt Service Funds, by year of levy. Year of Levy 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 and prior General Fund 75,429 71,794 31,569 6,248 9,665 9,691 2,389 9,107 2,901 3,454 21,975 $364,222 Debt Service Fund 78,967 40,139 17,650 9,084 5,404 5,418 7,376 5,422 1,727 2,056 13,083 $186,326 Total 254,396 111,933 49,219 25,332 15,069 1.5,110 19,765 :14,528 5,510 35,058• $550,458 The City has enacted an ordinance providing for the exemption of $25,000 of the assessed value of residential homesteads of persons 65 years of age or older from property taxes. This is provided by Section 1-b(a) of Article 8 of the Constitution of Texas. Additionally, the market value of agricultural land is reduced to agricultural value for purposes of the City's tax levy calculation. -35- CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 4 - PROPERTY TAXES (continued) The 2000 assessed values, reduced by exempt property, exemptions, and reduction in market value of agricultural land, were as follows: Assessed valuation: Real property Personal property Total Asessed valuation Exempt property Other Exemptions: Over 65 homestead Disabled veterans Freeport House Bill 366 Abatement Pollution Prorated Exempt Property Homestead Cap Adjustment Agricultural use and historical exemptions Net assessed valuations 1,615,785,700 181,888,920 1,797,674,620 126,057,730 41,735,614 1,461,190 7,293,440 5,060 4,537,540 45,510 313,593 18,026,110 34,495,740 107,913,797 $ 1,563,703,093 NOTE 5 - CHANGES IN FIXED ASSETS The following is a summary of changes in general fixed assets for the year ended September 30, 2001: Land Buildings Construction in progress Improvements other than buildings Machinery and equipment Totals Balance Oct 1, 2000 Additions 1,513,277 9,888,234 2,339,349 25,417,328 10,176,089 49,334,277 93,809 9,803,510 205,969 1,382,913 Balance Deletions Sept. 30, 2001 (6,181,313) 11,486,201 (6,181,313) 1,607,086 9,888,234 5,961,546 25,623,297 11,559,002 54,639,165 NOTE 5 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 CHANGES IN FIXED ASSETS (continued) The following is a summary of changes, in the Enterprise Fund fixed assets for the year ended September 30, 2001: Land Equipment Buildings and Improvements Construction in Progress Less allowance for depreciation Totals. Balance Oct. 1, 2000 189,071 2,324,538 28,429,956 8,144,921 39,088,486 (10,208,171) 28,880 315. Additions 262,411 4,406,107 6,676,394 11,344,912 Deletions (3,398,028) • (3,398,028).' (1,080,173) - 10,264 739 (3,398,028) Balance Sept. 30, 2001 189,071 2,586,949 32,836,063 11,423,287 47,035,370 (11,288,344) 35,747,026 Depreciation on Enterprise Fund fixed assets is recorded using the straight-line method over the following estimated useful lives of the assets: Description Equipment Buildings and infrastructure Estimated Useful Lives 5to10years 3 to 50 years NOTE 6 LONG-TERM DEBT A. General Lon:; -Term Debt The following is a summary of general long-term debt transactions for the year ended September 30, 2001: Certificates of Obligation General Obligation Bonds Capital Leases Compensated Absences Balance October 1, 2000 Additions 16,210,000 13,760,000 74,724 1,215,529 31,260,253 273,117 Retirements (530,000) (1,150,000) 273,117 (1,680,000) Balance September 30, 2001 15,680,000 12,610,000 74,724 1,488,646 29,853,370 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) A. General Long -Term Debt (continued) Certificates of Obligation and General Obligation Bonds Certificates of obligation and general obligation bonds at September following individual issues Interest Issue Rates $2,125,000 Tax and Revenue 6.30% to Bonds, Series 1991 7.80% $5,000,000 Public Works 5.00% to Series 1995 7.00% $6,250,000 Tax and Revenue Series 1997 $5,500,000 Tax and Revenue Series 1997 A 10,830,000 Refunding Bonds Series 2000 $2,000,000 Street Improvement Bonds Series 1992 $6,510,000 Refunding Bonds Series 1993 5.25% to 7.25% 5.20% to 7.20% 7.I0%to 7.35% 6.00% to 8.00% 265%to 4.63% Net Effective Interest Rate 6.335% Principal Payment Date/ Maturity March 1/ 2006 March 1/ 2014 March 1/ 2016 March 1/ 2018 March 1/ 4.6480% 2009 4.7613% 4.3623% March 1/ 2009 March 1/ 2003 Total General Obligation Bonds 30, 2001, are comprised of the Interest Payment Dates March] / September 1 March 1/ September) March 1/ Septemberl March I / September] March 1/ Septemberl March I/ Septemberl March 1/ September Debt Outstanding 170,000 4,260,000 5,950,000 5,300,000 10,830,000 255,000 1,525,000 28,290,000 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) The annual requirements to amortize all certificates of obligation and general obligation bonds outstanding as of September 30, 2001 are as. follows: Year Ending Sept. 30, 2001 2002 2003 2004 2005 2006-2016 Total 3,030,946 3,008,517 3,003,738 3,206,766 27,578,808 39,828,775 Interest 1,450,946 1,363,517. 1,273,738 1,176,766 6,273,808 11,538,775 Principal 1,580,000 1,645,000 1,730,000 2,030,000 21,305,000 28,290,000 There is $1,544,987 available in the Debt Service Fund to service the above obligations and the City's obligations under capital leases. Obligations Under Capital Leases Capital leases bear interest rates ranging from 4.38% to 5.85% and mature in 2002. Requirements to satisfy these obligations follow: Year Ending September 30, 2001 2002 Total 76,360 Interest 1,636 Principal 74,724 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) Compensated Absences Employees earn vacation leave at the rate of fifteen days peryear from one to fifteen years, twenty days per year for service of sixteento nineteen years, and twenty-five days per year for service of twenty years or more. Employees are required to take their earned vacation. Employees who are unable to use their vacation, for various reasons, may, with the City Manager's approval carry over fifty percent of the unused portion of the vacation, or, receive compensation for a maximum of forty hours. City employees receive eleven paid holidays per year. Employees 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. Employees may be paid or receive compensatory time. The maximum accrual for overtime is 160 hours, except for employees involved in public safety who can accrue up to 320 hours. The liability for compensated absences at September 30, 2001, is comprised of the following components: Vacation Sick Compensatory Time Beginning Addition Balance Retirement 139,827 911,501 164,201 1,215,529 B. Enterprise Fund Debt 29,804 181,543 61,770 Ending Balance 169,631 1,093,044 225,971 273,117 1,488,646 The following is a summary of Enterprise Fund long-term debt transactions of the City for the year ended September 30, 2001: Certificates of Obligations Water & Wastewater Revenue Bonds Capital Leases Total Balance October 1, 2000 17,050,000 16,675,000 59,002 33,784,002 Additions Retirement (50,000) (535,000) (59,002) (644,002) Balance September 30,. 2001 17,000,000 16,140,000 33,140,000 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) B. Enterprise Fund Debt (continued) Revenue Bonds and Certificates of Obligation A summary of the terms of revenue and certificates of obligation bonds recorded in the Enterprise Fund as of September 30, 2001, is a follows: Interest $1,115,000 Water & Sewer Revenue Bonds' Series 1996 A $8,870,000 Water & Sewer Revenue Bonds Series 1996 B $8,000,000 Water & Sewer Revenue Bonds Series 1999 $17,100,000 Certificates of Obligation Series 1998 Rates 4.5%to 5.20% 2.9 % to 5.20% 4.90% Subtotal Wate 2.6% to 3.8% Principal Payment Interest Date/ Payment Maturity Dates Sept. 1/ March 1/ 2002 September.1 Sept. 1/ March 1/ 2016 September 1 Sept. 1/ March 1/ 2020 September 1 & Sewer Revenue Bonds March 1/ March 1/ 2018 September 1 Subtotal Water & Sewer Certificates of Obligation TOTAL Debt Outstanding 200,000 8,090,000 7,850,000 16,140,000 17,000,000 17,000,000 33,140,000 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) B. Enterprise Fund Debt (continued) Revenue Bonds and Certificates of Obligation (continued) The annual requirements to amortize all revenue and certificates of obligation bonds outstanding as of September 30, 2001, are as follows: Year Ending Sept. 30, 2001 2002 2003 2004 2005 2006 2007-2020 C. Component Unit Debt Total 1,999,323 2,000,770 2,013,573 2,748,336 2,749,531 37,106,257 48,617,790 Interest 1,354,323 1,325,770 1,298,573 1,258,336 1,204,531 9,036,257 15,477,790 Principal 645,000 675,000 715,000 1,490,000 1,545,000 28,070,000 33,140,000 The following is a summary of Component Unit long-term debt transactions for the year ended September 30, 2001. Balance October 1, 2,000 Sales Tax Revenue 4,745,000 Total Additions Retirements (95,000) Balance September 30, 2001 4,650,000 4,745,000 4,650,000 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) C. Component Unit Debt (continued) The terms of Sales Tax Revenue Bonds recorded in the Economic Development Corporation Fund, as of September 30 2001, are as follows: Sales Tax Revenue Bonds Sales Tax. Revenue Bonds Series 1997 Total Interest ssue Rates 5 2% to. 7% Principle. Payment Date/ Maturity Sept 2016 Interest Payment Dates March 1/' September 1 Debt Outstanding 4,65.0,000 4,650,000 Annual requirements to amortize all Sales Tax Revenue Bonds outstanding as of September 30, 2001, o as follows: Year Ending Sept. 30, 2001 2002. 2003. 2004 2005 2006-2016 Total 367,570 445,370 447,050 442,650 5,386,630 7,089,270 Interest 267,570 260,370 247,050 232,650 1,431,630 2,439,270 Principal 100,000 185,000 200,000 210,000 3,955,000 4,650,000 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 6 - LONG-TERM DEBT (continued) D. Annual Debt Service Requirements The annual requirements to amortize all long-term debt outstanding at September 30, 200.1, including interest payments and excluding compensated absences, are as follows: Year Ending September 30 2002 2003 2004 2005 2006-2020 Less interest General Long -Term Debt 3,030,946 3,008,517 3,003,738 3,206,766 27,578,808 39,828,775 Enterprise Fund Debt 1,999,323 2,000,770 2,013,573 2,748,336 39,855,788 48,617,790 (11,538,775) (15,477,790) $ 28,290,000 $33,140,000 Total Primary Government 5,030,269 5,009,287 5,017,311 5,955,102 67,434,596 88,446,565 (27,016,565) $ 61,430,000 Component Unit Fund Debt 367,570 445,370 447,050 442,650 5,386,630 7,089,270 (2,439,270) $ 4,650,000 Total 5,397,839 5,454,657 5,464,361 6,397,752 72,821,226 95,535,835 (29,455,835) $ 66,080,000 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 7 — OPERATING TRANSFERS BETWEEN FUNDS For the year ended September 30, 2001, operating transfers between funds consisted of the following: Fund General Fund Special Revenue Capital Projects Enterprise Fund General Fund Enterprise Fund Component Unit (P.E.D.C.) Transfers in (out) from Enterprise fund Component Unit PEDC Subtotal General Fund General Component Unit PEDC Subtotal General TIRZ # 1 TIRZ #2 Subtotal (Capital Projects) (Enterprise fund) (Special Revenue Services) Subtotal (General Fund) (General Fund) (Capital Projects) (Enterprise funds) (Capital Projects) Subtotal Transfers in 700,000 110,000 810,000 52,794 2,246,491 212,768 2,459,259 128,000 194,674 78,100 400,774 Transfers out (2,246,491) (128,000) (52,794) (2,427,285) (700,000) (110,000) (212,768) (194,674) (78,100) (595,542) Totals 3,722,827 (3,722,827) CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 8 - FUND EQUITY The City's Capital Project Fund equity at September 30, 2001, has been designated for subsequent years' expenditures. Tentative plans for the expenditure of these resources are as follows: Drainage improvements Transportation improvements NOTE 9 — CONTRIBUTED CAPITAL A summary of changes in contributed capital is as follows: Beginning Balance Impact Fees Ending Balance NOTE 10 PENSION PLAN Plan Description 978,573 2,675,180 3,653,753 Enterprise Fund 18,054,250 4,178,860 22,233,110 The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid, defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS) one of 745 administered by TMRS, an agent multiple -employer public employee retirement system. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City - financed monetary credits, with 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 a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions, accumulated with interest, if the current employee contribution rate and City matching percent had always been in existence; and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions, with interest, and the employer -financed monetary credits with interest, were used to purchase an annuity. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 10- PENSION PLAN (continued) Plan Description (continued) Members can retire at age 60 and above with 10 or more years of service or with 20 years of service regardless of age. A member is vested after 10 years. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Contributions The contribution rate for the employees is 7% and the City matching ratio is currently 2 to 1, both as adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior service contribution rate both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of an employee's retirement date not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement -' becomes effective. The prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan s 25-year amortization period. When the City periodically adopts updated service credits and increases its annuities in effect, the increased unfunded actuarial liability is to be amorttzed.over a new.25-year period. The unit credit actuarial cost method is used for determining the City contribution rate. Both the employees and the City make contributions monthly Since the City needs to know its contribution rate in advance to budget for it, there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. (i e. December 31, 2000 valuation is effective for rates beginning January 2000). Because the actuary determines contribution. rates on an annualbasis and the -City pays the calculated rate each month, the City will always have a net pension obligation (NPO) of zero' at the, beginning and end of the period and the annually required contributions (ARC) will always equal contributions made. Trend information regarding ARC and NPO is shown below 2001 2000 1999 Net Pension Obligation (NPO) at the beginning of the period Annual Pension Costs Annual Required Contribution (ARC) 857,939 Contributions Made (857,939) 736,702 (736,702)• 629,516 (629,516) NPO at the End of the Period % Annual Pension Cost Contributed 100% 100% 100% 47 CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 10- PENSION PLAN (continued) Contributions (continued) A schedule of funding progress for TMRS for the three most recent actuarial valuations may be found in the required supplementary information section of the City's Comprehensive Annual Financial Report. Information as to the latest actuarial valuation follows: Valuation Date 12/31/2000 Actuarial Cost Method Unit Credit Amortization Method Level Percent of Payroll Remaining Amortization Period 25 Years Asset Valuation Method Amortized Cost Amortization Period Actuarial Assumptions Open Investment Rate of Return 8% Projected Salary Increases None Includes Inflation At None Cost -of -living Adjustments None The City is one of 745 municipalities having its benefit plan administered by TMRS. Each of the 745 municipalities has an annual individual actuarial valuation performed. All assumptions for the December 31, 2000, valuations are contained in the 2000 TMRS Comprehensive Annual Financial Report, a copy of which maybe obtained by writing to P O. Box 149153, Austin, Texas 78714-9153. NOTE 11 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 (TML- IRP), an Intergovernmental Risk -Pool and through commercial insurance carriers. The City purchases commercial general insurance through the Texas Municipal League, an unincorporated association of political subdivisions of the State of Texas. This policy encompasses general liability, incidental, medical malpractice, automobile liability, law enforcement liability, errors and omissions liability, property, p ty, automobile vehicle liability, and damages with limits of liability for each occurrence. 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 participation of the City in the TML-IRP is limited to payment of premiums. At year-end, the City did not have any significant claims pending. CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 11 - RISK MANAGEMENT (continued) Workers' Compensation The City is a member of the Texas Municipal League (TML) Workers' Compensation Intergovernmental Risk Pool, an unincorporated association of political subdivis'ons of the State of Texas. The fund contracts with a third party administrator for administration, investigation, and adjustment services in the handling of claims. Premiums are based on the estimated City payroll by risk factor and rates. The premiums are adjusted by the City's experience modifier All loss contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the TML Pool. The City's liability is limited to the payment of premiums as assessed by TML. NOTE 12 FEDERAL TAX COMPLIANCE (ARBITRAGE) FOR LONG-TERM DEBT In accordance with provisions of Section 148 of the Internal Revenue Code of 1986, as amended, (the `Code") the City s long-term debt obligations must meet certain minimum criteria to be considered and continue to be considered "tax exempt". This "tax exempt" status means thatinterest income earned by purchasers of the City's long-term debt instruments is not subject to federal income taxes. Related Treasury Regulations promulgated under section 148 of the Code generally provide that the determination of whether these obligations are tax exempt is made as of the date such obligations are issued based on a reasonable expectations regarding the use of the proceeds of the bonds issued. Long-term debt that does not meet and continue to meet the minimum criteria of Section 148 of the Code and the related Treasury Regulations described aboveare considered "arbitrage bonds" and are not considered "tax exempt ' as described above. Rebate Obligations will become arbitrage bonds (as described above) if certain arbitrage profits are, not paid to the federal government as rebate under section 148(f) of the Code. The City's obligations to calculate and make rebate payments (if any) will continue as long as there are gross proceeds allocable to outstanding debt issues. The City has performed calculations required under section 148(f) of the Code and has no present liability nor has the City ever been required to make rebate payments for issued debt in past years. Unexpended Debt Issuance Proceeds (Yield Restriction Requirements) Section 148 of the Code also provides that in order for debt not to be considered arbitrage bonds (as described above) proceeds of such debt must be invested at a yield that is not materially higher than the yield on the debt issued starting on the third anniversary of the issue date of such debt. Accordingly, any unexpended proceeds of debt issued by the City that remain unexpended more than three years after such debt was , issued should be yield restricted. ; The yield restriction may be accomplished by making yield reduction payments pursuant to Treas. Reg. Section 1 148-5(c). The City is currently pursuing compliance with these yield restriction requirements and does not anticipate associated significant noncompliance issues. The City is continuing to proceed with reasonable diligence to expend any remaining unexpended debt issuance proceeds on qualifying projects. NOTE 13 - SUBSEQUENT EVENT On November 26, 2001, the city received a FEMA Grant in the amount of $3,756,862 to repurchase homes that are in the flood plan. 4.49- CITY OF PEARLAND, TEXAS NOTES TO FINANCIAL STATEMENTS September 30, 2001 NOTE 14 — PRIOR PERIOD ADJUSTMENTS The following fund balances from FY2000 were adjusted for sales tax receivables and bond amortization costs as follows: General Fund $1,200,920 PEDC Fund 372,949 Debt Service Fund 41,376 NOTE 15 — FUND DEFICIT The fund balance in TIRZ #2 fund is a negative $271,274, also the Capital Projects Fund has a negative balance of $70,838. These deficits will be funded by future revenues. REQUIRED SUPPLEMENTARY INFORMATION CITY OF PEARLAND, TEXAS REQUIRED SUPPLEMENTARY INFORMATION September 30, 2001 PENSION DATA - TEXAS MUNICIPAL RETIREMENT SYSTEM The City's annual covered payroll and annual pension cost are actuarially valued on a calendar year basis. Because the City makes all of the annually required contributions, no net pension obligation exists. The information presented below was determined as part of the actuarial valuation, as of December 31, for each period presented. Schedule of Funding Progress Actuarial Actuarial Actuarial Annual Percentage Of Covered Valuation Value. Plan Accrued Percentage Unfunded Covered Date Assets Liability Funded AAL Payroll Payroll 1 12/31/97 8,759,905 11,129,222 78.7% 2,369,317 6,820,450 34.7% 12/31/98 9,615,238 12,280,029 78.3% 2,664,791 6,787,171 39.3% 12/31/99 10,976,420 14,117,504 77.8% 3,141,084 7,189,179 43.7% 12/31/00 11,842,529 14,951,928 79.2% 3,109,399 8,005,001 38.8% COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS AND SCHEDULES (this page intentionally left blank) GOVERNMENTAL FUND TYPES (this page intentionally left blank) GENERAL FUND The General Fund is used to account for all financial transactions not properly includable in other funds. CITY OF PEARLAND, TEXAS GENERAL FUND COMPARATIVE BALANCE SHEET September 30, 2001 and 2000 Assets Current Assets Cash and cash equivalents Receivables: Property taxes Sales taxes, Franchise taxes, Garbage Accounts Receivable Less: Allowance for estimated uncollectibles Accrued mterest Due from other funds Inventories Total Assets Liabilities and Fund Balance Liabilities Accounts payable Accrued liabilities Due to other funds Accrued Compensated Absences Deferred revenue Total Liabilities Fund Balance Reserved for encumbrances Unreserved: Undesignated Total Fund Balance Total Liabilities and Fund Balance 2001 7,013,997 364,222 1,937,737 230,060 (65,590) 251,721 51,915 $ 9,784,068 565,968 24,032 1,486,763 551,048 592,314 3,220,125 471,659 6,092,283 6,563,942 $ 9,784,068. Exhibit A-1 2000 6,503,460 292,363 443,563 (63,008) 31,943 63,008 51,678 7,323,007 797,699 253,535 610,015 164,186 292,363 2,117,798 294,544 4,910,665 5,205,209 $ 7,323,007 CITY OF PEARLAND, TEXAS GENERAL FUND STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 Revenues Property taxes and penalties Other taxes Licenses and permits Fines and forfeitures Franchise fees Charges for services Intergovernmental revenues Other revenues Total Revenues Expenditures Current: General government Public safety Public works Community services Total Expenditures Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfer in from Water & Sewer Transfer in from P.E.D.C. Transfer (out) to Capital Projects Transfer (out) to Water & Sewer Transfer (out) to Grant Total Other Financing Sources (Uses) Revenues and Other Financing Sources Over (Under) Expenditures Fund Balance - Beginning Pnor Period Adjustment Fund Balance - Ending 2001, Budget 2001 Actual Variance Favorable (Unfavorable) Exhibit A-2 2000 Actual 7,013,350 4,237,800 1,097,500 759,700 Z012,000 3,273,550 130,000 639,775 19,163,675 6,784,591 4,810,098. 1,896,728 856,641 2,303,73.0 3,202,767 848,712 20,703,267 (228,759) 572,298 799,228 96,941 291,730 (70,783) (130,000) 208,937 1,539,592 5,876,495. 3,697,523 1,469,799 731,959 2,022,789 3,061,545 15,000 827,950 17,703,060 4,185,324 7,019,360 6,122,085 2,033,143 19,359,912 4,217,744',: 6,692,138 5,974,667 2,043,620 18,928,169 (32,420) 327,222 147,418. (10,477) 431,743 3,580,693. 5,944,516 5,635,397 1,762,770 16,923,376 (196,237) 700,000 110,000 (846,491) (128,000) 1,775,098 700,000 110,000 (2,246,491) (128,000) (52,794) 1,971,335 (1,400,000) (52,794) 779,684 781,000 110,000 (794,967) (128,000) ( 64,491) (1,617,285) (1,452,794) (31,967) (360,728) 5,205,209 157,813 518,541 747,717 5,205,209 1,200,920 ,200,920 4,457,492 4,844,481 6,563,942 1,719,461. 5,205,209 Property Taxes and Penalties Property taxes - current Property taxes - delinquent Penalties and interest Attorney fees Misc. Tax Revenue Other Taxes City retail sales tax State beverage tax Licenses and Permits Building permits Electrical Permits Plumbing & gas permits Platting Fees Mechanical Permits Beer Permits Moving Permits Garage Sale Permits Electrical licenses Animal licenses Peddlers & Solicitors Health Certificate Fees Wrecker Permits Culvert Permits Building Plan Check Fee Occupancy Permits Plan & Zone Board of Adj. Demolition permits Bldg. Site Work Permit Alarm permits Reinspec, Fee/Inspection Sign permits Health - Mobile unit Health - Add. Mobile unit Health - School, Day care Health - Temporary Health - Produce Vendor Health - Club/Tavern Health - Employees 1-5 Health - Employees 6-10 Health - Employees 11-15 Health - Employees 16-20 Health - Employees 21 or More Health - Registration 1 Yr. Health - Registration 2 Yr. CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 $ 2001 Budget 6,832,600 $ 70,000 40,000 20,000 50,750 7,013,350 Actual 6,471,141 $ 179,902 80,641 go 52,907 6,784,591 Variance Favorable (Unfavorable) (361,459) $ 109,902 40,641 (20,000) 2,157 (228,759) Exhibit A-3 page 1 of 3 2000 Actual 5,626,664 119,461 58,231 22,371 49,768 5,876,495 4,225,800 12,000 4,795,353 14,745 569,553 2,745 3,684,676 4,237,800 4,810,098 572,298 12,847 3,697,523 530,000 65,000 75,000 50,000 50,000 3,500 8,000 17,000 13,500 15,000 1,000 20,000 4,000 2,500 200,000 2,000 10,000 200 20,000 2,500 1,000 4,000 1,300 2,000 867,755 98,184 137,396 62,644 117,905 3,710 7,050 18,600 15,888 9,342 2,335 17,925 5,400 3,704 479,760 2,875 14,665 50 15,524. 3,645 1,500 4,556 (15) Elm 2,548 3,783 337,755 33,184 62,396 12,644 67,905 210 (950) 1,600 2,388 (5,658) 1,335 (2,075) 1,400 1,204 279,760 875 4,665 (150) (4,476) 1,145 500 556 (15) 1,248 1,783 686,073 73,701 94,819 50,396 74,316 4,310 8,100 18,937 14,635 9,324 1,900 18,997 4,900 2,338 347,538 2,225 21,079 300 21,862 2,788 800 4,253 6,208 1,097,500 1,896,728 799,228 1,469,799 Fines and Forfeitures Child Safety Child Safety - Harris Co. Mun. Court Bldg. Security Fines Franchise Fees Gas Electric utility Telephone Company Cable television Sanitation Charges for Services False Alarm Fee Clean Pearland Bldg. Rent Land Rental Fleet Repairs Fuel Service Center Basketball Programs Trash Revenue Sanitation Billing Fee MUD/ EMS/ Fire Collections Animal Shelter Disposal of Animals Police Programs Fingerprint Fees Tennis Programs Recreation Programs Leam to Swim Programs Community Building Rental Senior Citizens Programs Swimming Pool Fees Pool Rental Pavilion Rental Ambulance Service Fee Rental Gazebo & Pavilion Soccer Program Softball Program Summer Camp Barbecue Shelter Rental Pool Locker fee Winter Fest Dog Trot CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL Year Ended September 30 2001 with comparative actual amounts for the Year Ended September 30, 2000 " 2001 Budget Actual Variance. Favorable (Unfavorable) Exhibit A-3 page2.of3 2000 Actual ,700 18,000. 740,000 759,700 25 1,887 (71) 854,800 856,641 25 187; (18,071). 114,800 96,941 1,849 (26,832) 756,942 731,959 72,000 1,150,000 300,000 125,000 365,000 88,884 510,021 214,339 138,669 351,816 16,884 360,021 (85,661). 13,669 (13,184) 71,604 1,163,224 315,192 124,814 347,955 2,012,000 2,303,730 291,730 2,022,789 2,400 8,500 2,400,000 135,000 55,000 20,000 3,500 50 500 4,500 100,000 20,000 38,000 3,000 15,000 3,500 2,500. 350,000 6,000 35,000 55,000 3,000 100 12,000 1,000 3,273,550 5 2,277::. 1,416'' 3,635 2,261,660 166,305 71,541 22,614 6,555 54 678. 14,346 81,392 31,130 28,340 4,118 14,500 3,687 1,750 370,272 1,664 41,226 60,278 11,270 2,055 3,202,767 5 (123) 1,416 (4,865) (138,340) 31,305 6,541 2,614 3,055 4 178 9,846 (18,608) 11,130 (9,660) 1,118 (500) 187 (750) 20,272 (4,336) 6,226 5,278 (3,000) (100) (730) 1,055 (70,783) 25 ,600 8,365 2,156,943 122,763 53,470 18,279 3,940 97 535 6,992 94,252 26,065 21,213 4,040 18,234 2,259 190 377,377 4,590 48,004 76,449 1,760 12,433 1,670 3,061,545 -61- Intergovernmental Revenues Grant - PD Radar Trailer Grant - Police Department Grant - Gal. Co. Task Force Grant - Forestry Program Emergency Mgmt. Asst Grant Federal E.M.A. Grant Other Revenues City Brochure Report Copies - Police Dept Bids & Specs Cash Short/Over Donations- Concert/Band Donations -other Reimbursements - Phone & Fax Reimbursement - Worker Comp Reimbursement - P.LS.D. Reimbursement - Demolition L.E.O.S.E. Training Fire Plat Copies Reproduction/Xerox Copies Reimbursement - Insurance Texpool Interest Payroll Interest N.O.W. Account Interest Interest Income Credit Card Interest Miscellaneous Street Light Charges N.S.F. Fees Sand/ Topsoil Discount Taken Pool/Park Vending Machine Comm. Center Vending Machine City Hall Vending Machine Concession Stand Total Revenues Transfer in (out) Transfer in from Water & Sewer Transfer in from Economic Development Total Revenues CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 2001 Budget Actual Variance. Favorable (Unfavorable) Exhibit A-3 page 3. of 3 2000 Actual $ 69,000 46,000 15,000 MOO (69,000) (46,000) (15,000) $ 15,000 130,000 (130,000) 15,000 4,000 4,500 500 5,000 3,000 2,500 211,825 1,500 2,000 5,000 200,000 800 30,000 90,000 1,000 30,000 40,000 1,000 50 1,500 1,500 100 4,000 1,290 4,465 3,425 6,557 2,643 239 234,057 3,600 108 1,249 1,899 46,249 287,654 862 21,976 77,536 3,970 72,592 71,319 1,251 28 961 761 329 3,692 (2,710) (35) 2,925 1,557 (357) (2,261) 22,232 3,600 108 (251) (101) 41,249 87,654 62 (8,024) (12,464) 2,970 42,592 31,319 251 (22) (540) (739) 229 (308) 4,331 4,896 (181) 8,750 (4,679) 3,023 14,315 173,721 1,548 3,285 983 248,195 1,001 23,934 126,175 2,830 76,983 86,408 1,375 43,416 55 1,331 2,010 202 4,043 639,775 848,712 208,937 827,950 19,163,675 700,000 110,000 20,703,267 700,000 110,000 1,539,592 17,703,060 19,973,675 21,513,267 $ 1,539,592 # $ 17,703,060 (this page intentionally left blank) General Government City Council Personnel Commodities Contractual services Administrative expenses Capital outlay City Manager Personnel Commodities Contractual services Administrative expenses Capital outlay City Secretary Personnel Commodities Contractual services Administrative expenses Capital outlay Finance Personnel Commodities Contractual services Administrative expenses Capital outlay Tax Contractual services Human Resources Personnel Commodities Contractual services Administrative expenses Capital outlay CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 2001 Budget Actual 22,025 $ 2,000 45,625 5,000 74,650 520,320 5,300 6,320 36,030 567,970 105,299 4,135 1,750 33,239 144,423 507,494 12,283 3,750 37,985 2,000 20,486 $ 2,447 61,060 75 84,069 510,995 10,125 2,455 46,085 14,335 583,996 101,498 5,009 1,256 25,212 2,438 563,512 115,867 115,867 294,947 16,715 2,200 101,982 415,844 135,413 485,172 12,197 6,006 41,403 4,744 549,521 113,475 113,475 295,314 11,567 1,376 108,260 3,145 419,662 Variance Favorable (Unfavorable) 1,539 (447) (15,435) 4,925 (9,419) 9,325 (4,825) 3,865 (10,055) (14,335) (16,026) 3,801 (874) 494 8,027 (2,438) 9,010 22,322 86 (2,256) (3,418) (2,744) 13,991 2,392 2,392 (367) 5,148 824 (6,278) (3,145) Exhibit A-4 page 1 of 6 2000 Actual 22,249 1,114 27,313 50,676 454,104 7,248 3,700 27,866 5,528 498,446 85,388 3,623 1,300 26,090 116,401 424,197 11,862 5,305 28,342 469,706 133,231 133,231 270,293 7,722 1,901 41,896 1,612 (3,818) 323,424 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000. General Government (con't) Legal Personnel Commodities Contractual services Administrative expenses Sundry charges Capital outlay Municipal Court Personnel Commodities Contractual services Administrative services Capital outlay Custiodial Services Personnel Commodities Contractual services Administrative services Capital outlay City Hall. Commodities Contractual services Other services Capital outlay Public Affairs/Grants Personnel Commodities Contractual services Adnunistrative services Capital outlay 2001 Budget 194,848 7,025 1,000 67,550 5,000 275,423 212,624 3,971. 850 16,365 Actual 233,810 152,221 28,612 2,700 1,160 195,374 2,823 1,804 73,970 5,000 184,693 19,619 117,512 274,104. 70,000 481,235 183,228 92,258 57,340 278,971. 203,999 2,821 1,059. 15,232 223,111 152,073 25,690 1,516 179 Variance Favorable (Unfavorable) (526) 4,202 (804) (6,420) 332,826 179,458 (3,548) 8,625 1,150 (209) 1,133 15,705 164,536 295,778 161,659 637,679 58,574 31,471 10,699 148 2,922 1,184 981 271,163 5,235 Exhibit A-4 page 2of6 2000 Actual 172,015 4,345 247 87,777 3,914 (47,024) (21,674) (91,659) (156,444). 2,110 33,684 25,869 61,663 264,384 194,713 6,591 1,471 12,917 2,537 218,229 121,901 25,702 1,887. 729 150,219 17,483 108,160 228,589 • 354,232 130,342 48,310 33,004 5,317 216,973 Other Personnel Commodities Contractual services Miscellaneous services Sundry charges Total General Government Public Safety Police Personnel Commodities Contractual services Administrative services Capital outlay Fire Personnel Commodities Contractual services Administrative services Capital outlay Fire Marshal Personnel Commodities Contractual services Administrative services Capital outlay Animal Shelter Personnel Commodities Contractual services Other services Capital outlay CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 2001 Budget Actual 36,000 $ 23,845 55,489 617,737 62,000 795,071 4,185,324 4,640,731 87,932 300,746 211,761 380,980 5,622,150 58,834 89,000 49,775 197,609 145,189 11,168 6,350 39,900 23,140 225,747 171,640 11,349 9,150 20,763 8,250 221,152 36,000 23,739 51,676 540,587 89,225 741,227 4,217,744 4,422,774 83,416 328,493 165,366 414,074 5,414,123 45,745 26,035 41,260 Variance Favorable (Unfavorable) 106 3,813 77,150 (27,225) 53,844 (32,420) 217,957 4,516 (27,747) 46,395 (33,094) 208,027 13,089 62,965 8,515 113,040 121,864 6,594 5,927 17,880 24,490 176,755 161,012 19,566 13,678 16,798 17,160 228,214 84,569 23,325 4,574 423 22,020 (1,350) 48,992 10,628 (8,217) (4,528) 3,965 (8,910) (7,062) Exhibit A-4 page 3 of 6 2000 Actual MEI 720,254 64,518 784,772 3,580,693 3,814,646 74,655 331,805 214,088 173,930 4,609,124 37,442 44,664 39,618 55,980 177,704 94,274 9,670 10,591 27,143 141,678 148,713 7,224 23,313 15,305 2,254 196,809 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 Emergency Medical Services Personnel Commodities Contractual services Other services Capital outlay Total Public Safety, Public Works Administration Personnel Commodities Contractual services Other services Capital outlay Engineering Personnel Commodities Contractual services Other services Capital outlay Community Development Personnel Commodities Contractual services Administrative services Capital outlay Community Services Commodities 2001 Budget Actual 413,064. 92,360 90,020. 99,625. 57,633 752,702 7,019,360 124,624 9,500 3,050 5,190 468,778. 70,621 63,798 60,151 96,659 760,007 6,692,138 125,047 9,896 2,544 6,157 142,364 552,139 9,802 8,965 136,185 25,350 732,441 372,761 20,122. 12,400 50,611 5,200 461,094 10,000 143,643 545,720 8,372 9,454 39,255 28,685 631,486 363,338 18,032 16,879 51,759 6,414 456,422 13,067 10,000 13,067 Variance Favorable (Unfavorable) (55,714) 21,739 26,222 39,474 (39,026) (7,305) 327,222 Exhibit A-4 page 4 of 6 2000 Actual (423). (396) 506'. (967) (1,279) 6,419 1,430 (489) 96,930 (3,335) 100,955. 463,834 85,214 1.78,305 74,402 117,446 819,201 • 5,944,516 116,488 7,712 5,328 4,402 9,423 2,090 (4,479) (1,148) (1,214) 4,672 (3,067) (3,067) 33,930 494,577 5,961 12,754 182,423 16,720 712,435 318,106 17,427 14,767 54,221 404,521 10,000 10,000 Public Works (con't) Fleet Maintenance Personnel Commodities Contractual services Other services Capital outlay Service Center Personnel Commodities Contractual services Other services Capital outlay Street and Drainage Personnel Commodities Contractual services Other services Capital outlay Sanitation Contractual services Special services Franchise fees Total Public Works CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 2001 Budget Actual 210,469 2,980 4,992 3,610 222,051 12,785 53,600 53,044 215,489 $ 2,161 5,757 1,804 1,290 226,502 63,398 38,076 34,144 119,429 502,112 226,996 637,391 365,852 177,000 1,909,351 20,000 2,455,355 50,000 2,525,355 6,122,085 135,618 472,259 201,038 430,972 608,249 168,245 1,880,763 17,509 2,418,981 50,676 2,487,166 5,974,667 Variance Favorable (Unfavorable) (5,020) 819 (765) 1,806 (1,290) (4,451) (50,613) 15,524 18,900 (16,189) 29,853 25,958 206,419 (242,397) 8,755. 28,588 2,491 36,374 (676) 38,189 147,418 Exhibit A-4 page 5 of 6 2000 Actual 203,465 4,783 7,035 1,128 216,411 21,949 41,691 58,869 122,509 428,719 251,066 584,269 378,453 90,360 1,732,867 2,302,724 2,302,724 5,635,397 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual amounts for the Year Ended September 30, 2000 Variance Favorable Actual (Unfavorable) Community Services Library Commodities Contractual services Administrative services Capital outlay Parks & Recreation - Admnnstration Personnel Commodities Contractual services Other services Capital outlay Parks & Recreation - Recreation Personnel Commodities Contractual services Other services Capital outlay Parks & Recreation -Athletics Personnel Commodities Contractual services Other services Capital outlay 2001 Budget 2,050 6,900 56,500 3,500. 68,950 668,352 35,317 146,124 12,576 102,457 1,064,826 249,357 118,518 7,459 63,671 6,800 445,805 72,372. 93,665 2,410 30,024 1,601 66,681 71,652 -2,735 .142,649 617,894 33,069 174,502 115,548 145,542 1,086,555 234,729. 91,520• ••.3,012 • 61,586: 6,348••• `197,194 54,957 97,540 15,682 26,941 Parks & Recreation - Aquatics & Special Events Personnel Commodities Contractual services Other services Capital outlay Total Community Services 208,471 126,476. 70,900 :25,180. : 20,535 2,000 245,091 2,033,143 195,121 98,515 76,421 39,879 5,755 1,511 222,081 2,043,620 449 (59,781) (15,152) 765 (73,719) Exhibit A-4 page 6of6 2000 Actual 50,458 2,248 (28,378) (2,972) (43,085) • (21,729) 14,628 26,998 4,447, 2,085 452 48,611. 17,415 (3,875) (3,272) 3,083 13,350 27,961 (5,521) (14,699). 14,780 489 23,010 (10,477) 2,328 2,922 54,601 5,264 65,115 540,939 25,991 189,864 104,221 53,608 914,623.. 226,533 153,188 6,428 57,233 7,850 451,232 109,696 142,871 20,173 53,545 5,515 331,800 1,762,770 Total Expenditures 19,359,912 18,928,169. 431,743 16,923,376 (this page intentionally left blank) SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for specific revenues that are legally restricted for particular purposes. A description of the individual special revenue funds follows: Regional Detention Fund A fund created to account for the regional detention development. Municipal Court A fund created to account for municipal court fees collected. Hotel/Motel A fund created to account for hotel/motel occupancy tax revenue. Park Donation A fund created to account for park donations. Park & Recreation Development A fund created to account for the development of parks. Tree Donations A fund created to account for tree donations. Tree Trust A fund created to account for tree trust donations. Police Fund To account for financial resources to be used for the Police department drug program. Federal Police Fund To account for expenditures related to special federal programs. for the police department. Community Services To account for expenditures related to community services. Grant Fund To account for all grant revenues and expenditures. Assets Cash and cash equivalents Account receivable Due from EWA Due from others fund Accrued interest receivable Total Assets Liabilities and Fund Balances Liabilities Accounts payable Due to other funds Deferred revenue grants Total Liabilities Fund Balances Reserved for encumbrance Unreserved: Designated for subsequent years' expenditures Total Liabilities and Fund Balances CITY OF PEARLAND, TEXAS SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET September 30, 2001 with comparative totals for September 30, 2000 Municipal Court Soccer Regional Court Detention Hotel Motel tax Park Donation $25,269 $ 1,835 $14,951 $221,393 50,041 $75,310 5,179 $1,835 $14,951 $221,393 $ 1,066. $ 1,066 74,244 $75,310 5,179 3,444 3,444 1,835 14,951 221,393 $1,835 $14,951 $221,393 1,735 $5,179 Park & Recreation Development $346,201 3,444 $349,645 349,645 $349,645 Tree Donation $1,342 Tree Trust Side Walk $9,882 $63,769 Police $43,015 Federal Community Police Services $7,987 $64,378 Grants 45,941 162,917 Totals 2001 $800,021 45,941 162,917 58,664 $1,342 $9,882 $63,769 $43,015 $7,987 $64,378 $208,858 1,342 9,882 $1,342 $9,882 63,769 $63,769 43,015 7,987 $43,015 $7,987 64,378 $64,378 188,719 13,631 202,350 $1,067,543 6,508 $208,858 $1,066 192,163 13,631 206,860 860,684 ,067,543 Exhibit B-1 Totals 2000. $558,997 50,569 88 $609,654 5,173 1,018 6,191 603,462 $609,654 CITY OF PEARLAND, TEXAS SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended September 30, 2001 with comparative totals for the Year Ended September 30, 2000 Hotel Park & Municipal Soccer Regional Motel Park Recreation Court Court Detention Tax Donation Development Revenues Taxes Hotel/ Motel Tax $ $ $ $ 52,279 $ Intergovernmental Revenue: Grants Total Intergovernmental Revenue Other Revenue: 52,279 Municipal Court 46,279 1,835 _ Regional Detention 1,073 Park/Tree Police Drug Revenue 242,092 Community Services Revenue _ Sidewalk Investment earnings 175 1,867 4,241 1,210 5,093 Transfer in from general fund Total Other Revenue: Total Revenues Expenditures General Government 17,600 Park Equipment Community Services 3,635 19,887 121,501 Police Drug Expense Total Expenditures 17,600 121,501 Revenues Over (Under) Expenditures 3,635 19,887 Transfer in from General Fund Revenues & Other Financing Sources. over (under) Expenditures 28,854 1,835 (118,562) 56,520 (2,425) 227,298 Fund Balances - Beginning 45,390 133,513 164,873 4,160 122,348 Fund Balances - Endmg $74,244 $1,835 $14,951 $221,393 $1,735 $349,645 46,454 1,835 2,939 4,241 1,210 247,185 46,454 1,835 2,939 56,520 1,210 247,185 Tree Donation Tree Trust Bide Walk 94 194 Police Federal Police Community Services Grant 333,677 333,677 Totals 2001 52,473 333,677 386,150 Exhibit B-2 Totals 2000 47,937 100,000.. 303,631 451,568 30 12,190 516 63,576 13,322 993 178 58,971 571 417 48,114 1,073 254,312 13,322 58,971. 63,576 15,260 45,390 32,736 155,571 8,838 18,652 7,570. 30 30 12,706 12,706 63,576 28,048 14,316 178 59,543 417 454,629 278,757 63,770 4,316 178 59,543 334,094 840,779 730,325 8,362 18,880. 418,436 17,600 42,402 576,347 28,048 8,362 18,880. 418,436 636,349 390,998 3,675 15,165 7,675 417,513 30 , (15,342) 63,770 1,312 $1,342 25,225 5,953 37,061 178 7,809. 40,663 23,715 52,794 (84,342) 38,056. 52,794 204,430 603,462 312,812 290,650 $9,882 $63,769 $43,015 $7,987 $64,378 $6,509 $860,685 $603,462 -75- (this page intentionally left blank) DEBT SERVICE FUND The Debt Service Fund is used to account for property taxes levied for payment of principal and interest on all general obligation and other debts of the City. CITY OF PEARLAND, TEXAS DEBT SERVICE FUND COMPARATIVE BALANCE SHEET September 30, 2001 and 2000 Assets Cash and cash equivalents Receivables: Property taxes Total Assets Liabilities and Fund Balance Liabilities Accounts payable Deferred revenue Total Liabihtres Fund Balance Unreserved: Designated for debt service 2001. 1,579,418 186,326 1,765,744 34,432 186,326 220,758 1,544,987 Total Liabilities and Fund Balance $ Exhibit C-1 2000 736,014 186,807 922,821 54,866 186,807 241,673 681,148 1,765,744 $ 922,821 CITY OF PEARLAND, TEXAS DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended September 30, 2001 with comparative actual balances for the Year Ended September 30, 2000 Revenues Property Taxes and Penalties: Property taxes - current Other revenues - investment earnings Total Revenues Expenditures Debt Service: Principal retirement Interest and fiscal charges Other miscellaneous expenses Total Expenditures Revenues Over (Under) Expenditures Other Financing Sources(Uses) Transfer out to other fund Total Other Financing Sources (Uses) Revenues and Other Financing Sources Over (Under) Expenditures Fund Balance - Beginning Fund Balance - Ending 2001 Budget Actual 4 53,856 $ 53,000 4,048,701 90,820 Variance Favorable (Unfavorable) (105,155) $ 37,820 Exhibit C-2 2000 Budget 3,342,006 20,000 4,206,856 1,680,000. 2,405,000 4,600 4,139,521 1,680,000 1,554,951 40,731 (67,335) (850,049) 36,131 3,362,006 1,455,000 1,920,000 4,089,600 117,256 50,000 3,275,682 813,918 3,375,000 863,839 746,583 (50,000) (12,994) 50,000 167,256 681,148 (50,000) 863,839 681,148 848,404 1,544,987 696,583 (12,994) 208,324 696,583 $ 195,330 (this page intentionally left blank) CAPITAL PROJECTS FUNDS The Capital Projects Funds are used to account for all resources used for the acquisition and/or construction of all buildings, equipment, rights of way, street and drainage improvements, and regional wastewater facilities. The funds used are described below. Street Assessment A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Street Assessment = McHard Rd. A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Street Assessment-- Southfork A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Street Assessment = Hooks Rd. A compulsory levy made against certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties. Capital Proiect Fund A fund created to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Road & Bridges To account for financial resources to be used for roads & bridges. Library To account for financial resources to be used for the City's library Capital Improvement 1997 To account for financial resources to be used for the facilities projects, transportation projects, drainage projects, and watershed projects. Certificate of Obligation 1997A To account for capital expenditures related to the issuance of certificates of obligation in August 1997. -81 Assets Cash and cash equivalents Investments Assessments Receivable Accrued interest receivable Due from General Fund Total Assets Liabilities and Fund Balances Liabilities Accounts payable Due to Other Funds Deferred Revenue Total Liabilities Fund Balance Reserved for encumbrances Fund Balance Total Fund Balance Total Liabilities and Fund Balance CITY OF PEARLAND, TEXAS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET September 30, 2001 with comparative totals for September 30, 2000 Cty Rd 58 Street Assessments Fite St. Street Assessments McHard Rd Street Assessments 19,994 $ 25,052 $ 191,799 $19,994 19,994 19,994 $ 19,994 $25,052 25,052 25,052 171,875 $363,674 363,674 363,674 Southfork Street Assessments Hooks Rd Street Assessments 130,566 $ 203,732 $130,566 130,566 130,566 $203,732 203,732 203,732 Street Assessments 47,734 15,966 $63,700 19,200 15,966 35,166. 28,534 28,534 25,052 $ 363,674 $ 130,566 $ 203,732 $ 63,700 Capital Projects 1,218,267 1,400,000 $2,618,267 35,991 35,991 677,101 1,905,175 2,582,276 2,618,267 Roads and Bridges 75,165 $75,165. 75,165 75,165 .75,165 Library 0,845 $10,845 10,845 10,845 10,845 Capital Improvement 1997 Certificate of Obligation 1997A Total 2001 Exhibit D-1 Total ..2000 70,838 $70,838 763,112 141,676 $904,788 2,757,104 187,841. 1,541,676 $4,486,621 620,034 141,676 675,225 141,676 15,966 141,676 620,034. 832,867 284,754 (70,838) 961,855 2,691,899. (70,838) 284,754 3,653,754 70,838 $ 904,788 4,486,621 5,339,579 5,966 1,336 $5,356,881 302,727 15,966 318,693 661,393 4,376,795 5,038,188 5,356,881 Revenues Investment earnings T.D.O.T Other Total Revenues Expenditures - Capital Outlay General Government Public Safety Public Works Utility Billing Streets and transportation Drainage Other projects Parks and recreation Total Expenditures Revenues (Under) Expenditures Other Financing Sources (Uses) Transfer In from General Fund Transfer (Out) to Other Funds Transfer In from Overpass Proceeds from lease financing Library Grant Total Other Financing Sources (Uses) CITY OF PEARLAND, TEXAS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended September 30, 2001 with comparative totals for the Year Ended September 30, 2000 Cty Rd 58 Fite Rd McHard Rd Southfork Hooks Rd Street Street Street Street Street Street Assessments Assessments Assessment Assessments Assessments Assesmentr 7 $ 52 $ 4,266 $ $ 4,020 $ 1,471 19,987 25,000 5,323 90,547 19,994 25,052 4,266 5,323 94,567 1,471 14,573 14,573 19,994 25,052 4,266 5,323 94,567 (13,102) No Revenues and Other Financing Resources Over (Under) Expenditures 19,994 25,052 4,266 5,323 94,567 (13,102) Fund Balances- Beginning Fund Balances - Ending 359,407 125,243 109,165 41,636 19,994 $ 25,052 $ 363,674 $ 130,566 $ 203,732 $ 28,534 Capital: Projects 27,032 $ 27,032 Roads and Bridges 1,564' 35,857 37,421 Library Capital Improvement 1997 165,769 8,805 174,574 67,895 85,514. 330,548 129,808 22,370 566,523 61,624 39,698 613,765. 22,370. 667,845 (586,733). 2,246,491 212,768 15,051 (493,271) 2,459,259 1,872,527 15,051 (493,271) 709,750 60,114 10,845' 422,433 2,582,276 $ 75,165 $ 10,845 $ (70,838) Certificate Of Obligation 1997A Totals 2001 155,226 22,220 177,445 93,637 223,846 149,663 567,146 24,989. Mb 631,398 1,462,968 1,078,818 92,884 85,514 Exhibit D-2 Totals 2000 269,534 639,310 908,844 1,565,412 - 1,524,592 . 1,248,324 : 3,198,173 4,516,726 (3,020,728) 30,000 (3,949,580) 2,246,491 212,768 30,000 .0,000 (2,990,728) 2,489,259 (1,460,321) 3,275,482 5,114,075 284,754 $ 3,653,754 40,720 650,618 135,463 852,799 1,679,600 (770,756) 694,967 151,676 846,643 75,887 5038,188 5,114,075 (this page intentionally left blank) ACCOUNT. GROUPS (this page intentionally left blank) GENERAL FIXED ASSETS This is a self -balancing group of accounts used to account for the fixed assets of the City. CITY OF PEARLAND, TEXAS SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE September 30, 2001 and 2000 General Fixed Assets Land Buildings Construction in progress Improvements Machinery and equipment Total General Fixed Assets Investments in General Fixed Assets Financed By Capital Projects Funds General Obligation bonds and Time warrants and certificates o Lease Purchase agreement Federal grants General Fund Revenues Special Revenue Fund Reserves Special Assessments lntergovernmental transfers obligation Total Investment in General Fixed Assets 2001 Exhibit F-1 2000 1,607,086 $ 9,888,234 5,961,546 25,623,297 11,559,002 54,639,165 1,513,277 9,888,234 2,339,349 25,417,328 10,176,089 38,889,909 $ 425,519 395,576 1.1,609,460 2,114,776 510,286 693,639 49,334,277 35,061,742 425,519 395,576 10,132,739 2,114,776 510,286 693,639 54,639,165 $ 49,334,277 CITY OF PEARLAND, TEXAS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY General Government City Council Human Resource City Manager City Secretary Finance Legal Municipal Court Custodial Services City Hall MIS Total General Government Public Safety Police Fire Animal Shelter Code Enforcement Civil Service Fire Marshall Emergency Medical Services Total Public Safety Public Works Public Works Service Center Fleet Maintenance Engineering Street Sanitation Total Public Works Community Services Library Parks, Recreation, Beautification Total Community Services Construction in Progress Total Year Ended September 30, 2001. Balance Oct. 1, 2000 4,410 27,406 61,861 38,207 54,483 1 33,283 113,219 49,718 3,902,746 13,169 4,298,502 5,297,126 1,003,151 421,000 287,334 4,433 217,783 1,102,125 8,332,952 Additions Exhibit F-2 Balance Sept. 30, 2001 1,442,973 1,132,113 77,168 206,753 22,217,325 453,653 25,529,985 4,459,0111 4,374,471 8,833,489 2,339,349. 49,334,277 3,145 14,335 2,439 4,743 431,947 456,609 409,594 7,802 7,160 6,031 24,490 96,659 561,736 146,196 1,291 33,163 168,245 348,895 2,735 312,716 315,451 3,622,197 4,410 30,551 76,196 ,. 40,646 59,226 33,283 �113,219 49,718 4,334,693 13,169 4,755,111 5,706,720 1,010,953 438,160 293,365 4,433 242,273 1,198,784 8,894,688 1,589,169 1,132,113 78,459 239,916 22,385,570 453,653 25,878,880. 4,461,753 4,687,187 9,148,940 5,961,546 5,304,888 54,639,165 -91.- CITY OF PEARLAND, TEXAS SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY September 30, 2001 General Government City Council Human Resource City Manager City Secretary Finance Legal Municipal Court Custodial Services City Hall MIS Total General Government Public Safety Police Fire Animal Shelter Code Enforcement Civil Service Fire Marshal Emergency Medical Services Total Public Safety Public Works Public Works Service Center Fleet Maintenance Engineering Street Sanitation Total Public Works Community Services Library Parks, Recreation Total Community Services Contruction in Progress Totals Total 4,410 30,551 76,196 40,646 59,226 33,283 113,219 49,718 4,334,693 13,169 4,755,111 5,706,720 1,010,953 438,160 293,365 4,433 242,273 1,198,784 8,894,688 1,589,169 1,132,113 78,459 239,916 22,385,570 453,653 25,878,880 4,461,753 4,687,187 9,148,940 5,961,546 $ 54,639,165 Land Buildings .Improvements 50,014 50,014 4,320 4,320 503,867 15,500 198,066 57,236 774,669 2,298,570 2,298,570 938,940 48,031 287,435 6,212 212,625 2,493,243 571,432 7,010 578,442 5,000 3,464,092 773,083 1,053,887 778,083 4,517,979 6,182 200,881 Exhibit F-3 Machinery and Equipment 4,410 30,551 76,196 40,646 59,226 33,283 107,037 49,718 1,785,228 13,169 207,063 1,639 50,000 109,570 4,739 8,977. 174,925 1,048,011 394,001 20,843,031 387,652 22,672,695 886,471 1,682,143 2,568,614 2,199,464 3,766,141 912,922 146,405 183,795 4,433 231,322 977,182 6,222,200 37,291 151,180 78,459 239,916 1,344,473 1,755 1,853,074 106,190 1,178,074 1,284,264 $ 1,607,086 $ 9,888,234 $ 25,623,297 $ 11,559,002 GENERAL LONG-TERM DEBT This account group is a self -balancing group of accounts used to account for the City's long-term liabilities which include general obligation bonds, certificates of obligation, capital leases, and compensated absences.. Due During Fiscal Year Ending Sept. 30, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Totals Due During Fiscal Year Ending Sept. 30, 2002 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Totals Certificates of Obligation Series 1997 - S6,250,000 Principal Interest Due Due March 1, March 1 September 1 100,000 100,000 100,000 100,000 100,000 110,000 120,000 120,000 400,000 460,000 520,000 580,000 650,000 1,210,000 1,280,000 5,950,000 329,885 322,635 315,385 308,135 300,885 293,273 285,385 278,335 264,685 242,110 216,255 186,960 153,895 103,373 35,200 3,636,396 Certificates of Obligation Series 1995 - $5,000,000 Total 429,885 422,635 415,385 408,135 400,885 403,273 405,385 398,335 664,685 702,110 736,255 766,960 803,895 1,313,373 1,315,200 9,586,396 Principal Interest Due Due March 1, March 1 September 1 175,000 255,000 270,000 500,000 500,000 500,000 500,000 500,000 234,045 159,338 145,290 124,250 96,500 68,250 39,500 12,500 Total 409,045 414,338 415,290 624,250 596,500 568,250 539,500 512,500 as 4,260,000 1,861,245 6,121,245 Exhibit G (1 of 21 Certificates of Obligation Series 1997A - $5,500,000 Principal Due March 1 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 395,000 415,000 440,000 465,000 495,000 525,000 555,000 590,000 620,000 5,300,000 Interest Due March 1, September 1 288,846 281,646 274,446 267,246 260,046 252,846 246,346 240,846 227,976 206,916 184,686 161,040 135,716 108,489 79,395 48,480 16,275 3,281,241 Total 388,846 381,646 374,446 367,246 360,046 352,846 346,346 340,846 622,976 621,916 624,686 626,040 630,716 633,489 634,395 638,480 636,275 8,581,241 Certificates of Obligation Series 1991 S2,125,000 Principal Due March 1 170,000 170,000 Interest Due March 1, September 1 5,525 5,525 Total 175,525 175,525 Due During Fiscal Year Ending Sept. 30, 2002 2003 2004 2005 2006 2007 2008. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Totals Due During Fiscal Year Ending 2002 2003 2004 2005 - 2006 2007. 2008 2009 2010 2011 2012 2013 •2014 2015 2016 2017 2018 Totals Pnncipal Due Principal Due March 1 770,000 755,000 Oa IN CITY OF PEARLAND, TEXAS SCHEDULE OF GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS TO MATURITY Refunding Bonds Series 1993 - $6,510,000 Interest Due March 1, September 1 52,244 17,459 1,525,000 69,703 September 30,2001 Total 822,244 772,459 alb 1,594,703 Obligations Under Bank One Capital Leases Interest Due 74,724 1,636 ono 01. 74,724 1,636 76,360 01. 76,360 Principal Due March 1. 140,000 375,000 1,330,000 1,620,000 1,700,000 1,800,000 1,885,000 1,980,000 No Refunding Bonds Series 2000 - $10,830,000 Interest Due March 1, September 1 528,663 516,432 475,937 405,875 320,650 230,700 142,260 48,510 0.0 Total 668,663 891,432 1,805,937 2,025,875 2,020,650 2,030,700 2,027,260 2,028,510 10,830,000 2,669,027 13,499,027 Principal Due 125,000 130,000 255,000 Street Improvement Bond, Series 1992 - $2,000,000 Interest Due March 1, 76,238 68,400 144,638 201,238 198,400 399,638 Due During Fiscal Year Ending Sept. 30, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016, 2017 2018 Totals CITY OF PEARLAND, TEXAS SCHEDULE OF GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS TO MATURITY September 30, 2001 ANNUAL REQUIREMENTS FOR ALL SERIES Total Principal Due Total Interest Due Total Principle & Interest Due 1,654,724 1,645,000 1,730,000 2,030,000 2,125,000 2,250,000 2,360,000 2,470,000 1,295,000 1,375,000 1,460,000 1,545,000 1,645,000 1,735,000 1,835,000 590,000 620,000 28,364,724 1,517,082 1,428,017 1,273,738 1,176,766 1,065,893 949,154 833,329 712,981 616,911 545,526 469,191 387,500 302,111 211,862 114,595 48,480 16,275 11,669,411 3,171,806 3,073,017 3,003,738 3,206,766 3,190,893 3,199,154 3,193,329 3,182,981 1,911,911 1,920,526 1,929,191 1,932,500 1,947,111 1,946,862 1,949,595 638,480 636,275 40,034,135 ENTERPRISE FUND DEBT Due During Fiscal Year Ending Sept. 30, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals Due During Fiscal Year Ending Sept. 30, 2002 2003 2004 2225 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Water & Sewer System Revenue Bonds Series 1996A - $1115000. Total Interest Due Prtndple March 1, Due 37,500 200,000 200,000 10,400 • 10,400 Total Prindple & Interest Due 210,400 210,400 Water & Sewer System Revenue Bonds Series 1999- $8,000,000. Principal Due Sept 1 160,000 165,000 175,000 180,000 190,000 195,000 205,000 215,000 220,000 230,000 240,000 250,000 260,000 275,000 295,000 1,080,000 1,125,000 1,175,000 1,27.5,000 7,850,000 Interest Due March 1, September 1 384,650 376,810 368,725 360,150 351,330 34Z020 332,465 322,420 311,885 301,105 289,835 278,075 265,825 253,085 239,610 225,645 172,725 117,600 60,025 5,353,985 Total Prindpk & Interest Due 544,650 541,810 543,725 540,150 541,330 537,020 537,465 537,420 531,885 531,105 529,835 528,075 525,825 528,085 524,610 1,305,645 1,297,725 1,292,600 1,285,025 13,203,985 Exhibit H (1 of 2) Water & Sewer System Revenue Bonds Series 1996B - $8,870,000 Prtndple March 1 Sept 1 210,000 420,000 440,000 455,000 475,000 495,000 515,000 540,000 560,000 590,000 615,000 645,000 675,000 710,000 745,000 Interest Due March 1 Sept1 365,440 357,460 341,080 323,480 304,826 284,876 263,590 240,390 216,632 190,870 163,140 133,946 102,968 70,568 36,132 Total Prldple & Interest Due 575,440 777,460 781,080 778,480 779,826 779,876 778,590 780,390 776,632 780,870 778,140 778,946 777,968 780,568 781,132 8,090,000 Principal Due Sept. 1 75,000 90,000 100,000 855,000 880,000 915,000 545,000 980,000 1,015,000 1,050,000 1,090,000 1,125,000 1,170,000 1,210,000 1,250,000 2,090,000 2,160,000 17,0001000 3,395,398 11,485,398 Certificates of Obligations Series 1998 - $17,100,000 Interest Due March 1, September 1 593,833 591,500 588,768 574,706 548,675 521,073 492,006 461,197 428,271 393,157 355,697 316,100 274,497 230,760 184,937 121,790 41,040 Total Prindle & Interest Due 668,833 681,500 688,768 1,429,706 1,428,675 1,436,073 1,437,006 1,441,197 1,443,271 1,443,157 1,445,697 1,441,100 1,444,497 1,440,760 1,434,937 2,211,790 2,201,040 6,718,007 23,718,007 Due During Fiscal Year Ending Sept 30, 2002 2003 2004 2005. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals CITY OF PEARLAND TEXAS SCHEDULE OF ENTERPRISE FUND DEBT SERVICE REOUIREMENTS TO MATURITY Total Principal Due September 30, 2001 Annual Requirements for A8 Series Total Interest Due 645,000 675,000 715,000 1,490,000 1,545,000 1,605,000 1,665,000 1,735,000 1,795,000 1,870,000 1,945,000 :.2,020,000 2,105,000 2,195,000 2,280,000 '.. 3,1702000 3,285,000 1,175,000 1,225,000 33,140,000 1,354,323 1,325,770 1,298,573 1,258,336 1,204,831. 1,147,969 1,088,061 1,024,007 956,788 885,132 808,672 728,121 643,290 554,413 460,679 347,435 213,765 117,600 60,025 15,477,790 Total Prindpal & Interest Due 1,999,323 zo o,no 2,013,573 ;.. 2,748,336 2749,831 2,752,969. 2,753,061 2,759,007 2751,788:. 2,755,132 2,753,672 2,748,121 2,748,290 2,749,413 2740,679 ` 3,517,435 3,498,765 1,292,600 1,285,025 48,617,790 -99- (this page intentionally left blank) COMPONENT UNITS Assets Cash and cash equivalents Accounts receivable Interest receivable Due from other funds Amount to be provided for retirement of debt Fixed assets Iabilities Equity Liabilities and Equity Accounts payable Accrued liabilities Accrued compensated absences Due to Other Funds General obligation bonds Investment in General Fixed Assets Undesignated CITY OF PEARLAND, TEXAS COMPONENT UNITS COMBINING BALANCE SHEET September 30, 2001 and 2000 PEDC TIRZ Exhibit I-1 TOTAL 2001 2000 4,046,262 $ 18,673 $ 4,064,935 $ 3,543,017 479,643 479,643 271,274 271,274 16,488 4,668,528 4,668,528 4,752,620 55,403 - 55,403 55,403 $9,521,110 $ 18,673 9,539,783 8,367,528 8,544 $ 9,996 18,528 4,650,000 4,687,068 $ 55,403 4,778,639 $ 8,544 9,996 18,528 271,274 271,274 4,650,000 271,274 $ 34,727 7,620 4,745,000 4,958,342 4,787,347 $ 55,403 $ 55,403 (252,601) 4,526,038 3,524,778 4,834,042 (252,601) 4,581,441 3,580,181 9,521,110 $ 18,673 9,539,783 8,367,528 CITY OF PEARLAND, TEXAS COMPONENT UNITS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Year Ended September 30, 2001 with comparative totals for the Year Ended September 30, 2000 Operating Revenues Sales Tax Revenue Other Revenue Total Operating Revenues Operating Expenses Economic Development Personnel Commodities Contractual Services Other Services Capital Outlay Debt Service Total Expenitures Revenues over (under)Expenditures Operating Transfers In (Out) Operating Transfer to Other Fund Revenues and Other Sources Fund Balance - Beginning Prior. Period Adjustment Retained Earnings (Deficit) Ending PEDC 2,397,275 165,816 2,563,091. 228,050 6,883 9,469 293,223 403,722 370,616 1,311,963 1,251,128 (322,768) Exhibit I-2 Totals TIRZ 2001 2000 928,360 3,477,332 372,948 $ 4,778,639. 241,501 2,397,275 407,317 1,841,918 600,465 241,501 541,552 541,552 2,804,592 228,050 6,883 9,469. 834,775 403,722 370,616 1,853,515 2,442,383 178,839 4,671 205,981 142,478 701,280 372,023 1,605,272 (300,051) (300,051) 47,450 (252,601) $ 951,077 (322,768) 628,309 3,524,782 372,948 4,526,038 837,111 (110,000) 727,111 2,797,667 3,524,778 Assets Cash and cash equivalents Accounts receivable Interest receivable Due from Other Funds Amount to be provided for retirement of debt Fixed assets Liabilities Equity Liabilities and Equity Accounts payable Accrued liabilities Accrued compensated absences General obligation bonds Investment in General Fixed Assets Undesignated CITY OF PEARLAND, TEXAS PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC) COMBINING BALANCE SHEET September 30, 2001 and 2000 EDC Fund Overpass EDC Fixed Assets EDC Long Term Debt $ 4,046,262 $ $ $ 479,643 271,274 4,668,528 55,403 $4,797,179 $ - $55,403 $4,668,528 8,544 $ $ 9,996 18,528 4,650,000 18,540 4,668,528 55,403 4,778,639 4,778,639 - 55,403 $ 4,797,179 $ - $ 55,403 $ 4,668,528 Exhibit I-3 TOTAL 2001 2000 $ 4,046,262 $ 3,474,126 479,643 271,274 4,668,528 55,403 9,521,110 8,544 9,996 18,528 4,650,000 4,687,068 55,403 4,778,639 4,834,042 9,521,110 16,488 4,752,620 55,403 8,298,637 13,286 7,620 4,745,000 4,765,906 55,403 3,477,328 3,532,731 8,298,637 CITY OF PEARLAND, TEXAS PEARLAND ECONOMIC DEVELOPMENT CORPORTATION (PEDC) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Year Ended September 30, 2001 with comparative totals for the Year Ended September 30, 2000 Operating Revenues Sales Tax Revenue Other Revenue Total Operating Revenues Operating Expenses Economic Development Personnel Commodities Contractual Services Other Services Capital Outlay Debt Service Total Expenitures Revenues over Expenditures Operating Transfers In (Out) Operating Transfer to Other Fund Revenues and Other Sources. Fund Balance - Beginning Prior Period Adjustment Retained Earnings (Deficit) Ending EDC Exhibit I-4 Totals Fund Overpass 2001 2,397,275 163,812 2,561,087 228,050 6,883 9,469 293,223 403,722 370,616 1,311,963 1,249,124 (110,000) 1,139,124 3,266,568 372,948 4,778,639 2,004 2,397,275 165,816 2000 1,841,918 415,199 2,004 2,563,091 2,257,117 228,050 6,883 9,469 293,223 403,722 370,616. 1,311,963 178,839 4,671 205,981 3,162 701,280 372,023 1,465,956 2,004. (212,768) (210,764) 210,764 1,251,128 (322,768) 928,360 3,477,332 372,948 4,778,639 791,161 (110,000) 681,161 2,796,167 3,477,328 CITY OF PEARLAND, TEXAS Exhibit I-5 TIRZ #1 and TIRZ#2 COMPARATIVE BALANCE SHEET September 30, 2001 and 2000 Edgewater Shadow Creek Total TIRZ #1 TIRZ #2 2001 2000 Assets Cash and cash equivalents $ 18,673 $ $ 18,673 $ 68,891 Investments Total Assets 18,673 18,673 68,891 Liabilities and Equity Liabilities Due to Other Fund $ - $ 271,274 $ 271,274 $ 21,441 Equity Total Liabilities 271,274 271,274 21,441 Undesignated Total Liabilities and Equity 8,673 (271,274) (252,601) 47,450 $ 18,673 $ $ 18,673 $ 68,891 CITY OF PEARLAND, TEXAS TIRZ#1 AND TII2Z #2 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Operating Revenues Other Revenue Total Operating Revenues Operatinu Expenses TIRZ Other services Total Operating Expenses Revenues over Expenditures Fund Balance - Beginning Fund Balance (Deficit) - Ending Year Ended September 30, 2001 Edgewater TIRZ #1 175,137 175,137 225,000 225,000 (49,863) 68,536 Shadow Creek TIRZ #2 Exhibit 1-6 Totals 2001 2000 66,364 241,501 185,266 66,364 241,501 185,266 316,552 541,552 39,316 316,552 541,552 139,316 (250,188) (21,086) (300,051) 47,450 45,950 1,500 18,673 $ (271,274) $ (252,601) 47,450 Due During Fiscal Year Ending Sept. 30, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Totals CITY OF PEARLAND, TEXAS SCHEDULE OF COMPONENT UNIT FUNDS DEBT SERVICE REOUIREMENTS TO MATURITY September 30, 2001 Princial Due Sept. 1 100,000 185,000 200,000 210,000 220,000 235,000 300,000 320,000 340,000 360,000 385,000 410,000 435,000 460,000 490,000 4,650,000 Sales Tax Revenue Bonds Series 1997 - $5,000,000 Interest Due March 1, September 1 267,570 260,370 247,050 232,650. 217,530 201,690 187,590 171,990 155,030 136,670 117,050 95,875 73,325 49,400 25,480 2,439,270 Exhibit I-7 Total 367,570 445,370 447,050 442,650 437,530 436,690 487,590 491,990 495,030 496,670 502,050 505,875 508,325 509,400 515,480 6,573,790 UNAUDITED STATISTICAL SECTION 109- Fiscal Year Ended Sept. 30, CITY OF PEARLAND, TEXAS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Fiscal Years General Government Pubhc Safety Public Works Community Services Debt Service Table 1 Total 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 1,591,133 1,709,983 1,831,204 1,998,228 2,316,013 2,357,621 2,834,021 3,685,523 3,580,693 4,217,744 2,467,920 2,890,899 3,100,156 3,445,100 3,865,449 4,238,647 5,026,554 5,695,956 5,944,516 6,692,138 2,293,754 3,514,225 3,312,929 3,798,607 4,112,939 4,334,123 4,925,693 5,137,708 5,635,397 5,974,667 (1) - Includes general governmental expenditures of the General Fund and Debt Service. Fund. 464,376 501,733 777,059 881,211 1,185,426 1,137,045 1,543,440 1,580,624 1,762,770 2,043,620 2,361,609 2,547,354 2,254,696 2,044,453 2,430,097 2,451,033 3,273,010 3,209,693 3,064,038 3,275,682 9,178,792 11,164,194 11,276,044 12,167,599 13,909,924 14,518,469 17,602,718 19,309,504 19,987,414 22,203,851 Fiscal Year Ended Sept. 30, (1) (2) (1) Property Taxes and Penalties (2) Other Taxes CITY OF PEARLAND, TEXAS GENERAL GOVERNMENTAL REVENUES BY SOURCE (11 Last Ten Fiscal Years Licenses and Permits Fines and Forfeitures Charges For Services Franchise Fees Inter- governmental Revenues Other Revenues Table 2 Total 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 7,722,736 8,094,140 8,261,631 8,568,140 9,292,922 10,472,362 7,108,800 8,192,927 9,272,373 10,833,292 1,704,160 1,733,901 1,905,741 2,166,219 2,298,546 2,589,918 2,973,058 3,426,576 3,697,523 4,810,098 296,725 418,577 432,626 339,309 514,081 524,197 615,808 955,819 1,469,799 1,896,728 315,085 404,857 415,511, 415,378 459,884 529,152 576,856 675,691 731,959 1,115,488 1,089,194 1,182,274 1,425,741 1,553,765 1,648,617 2,508,087 2,960,214 3,061,545 856,641 3,202,767 Includes general governmental revenues of the General Fund and Debt Service Fund. - Primarily City Sales taxes. 1,077,130 1,050,451 1,109,374 1,026,007 1,016,069 1,498,788 1,703,715 1,943,545 2,022,789 2,303,730 107,987 78,882 246,414 197,764 345,674 489,860 15,000 371,742 12,603,066 311,959 13,103,079 463,971 809,141 523,188 722,189 678,232 692,481 896,730 939,532 13,879,115 14,828,817 15,904,869 18,182,987 16,510,230 19,337,113 21,167,718 24,842,788 Fiscal Year Ended Sept. 30, 1992 1993 1994 1995 1996 1997 1998 Total Tax Levy (2) 4,943,097 5,218,769 5,224,050 5,316,625 5,869,525 6,343,113 7,062,826 Current Tax Collections 4,832,158 5,141,839 5,020,687 5,229,939 5,790,544 6,235,954 6,957,153 1999 8,147,473 7,992,304 2000 9,174,224 9,022,542 2001 10, 864,049 10,609,654 CITY OF PEARLAND, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS (11 Last Ten Fiscal Years Percent of Current Taxes Collected 97.76 98.53 96.11 98.37 98.65 98.31 98.50 98.10 98.35 97.66 Delinquent Tax Collections 60,002 96,234 11,520 63,318 62,365 70,983 74,969 96,094 119,461 179,483 (1 - A property tax system was initiated in the 1970-71 fiscal year. Taxes are levied in August (or as soon thereafter as practicable) and become delinquent on February I of each year. The City, in accordance with Section 33.07 of the Texas Property Tax Law Annotated 1982, imposes an additional penalty of 15% beginning July 1 to defray cost of collection. (2 - The total tax levy has been adjusted to reflect additions to and deletions from the tax roll for prior years. Total Tax Collections 4,892,160 5,238,073 5,032,207 5,293,257 5,852,909 6,306,937 7,032,122 8,088,398 9,142,003 10,789,137 Percent of Total Tax Collections to Total Tax Levy 98.97 100.37 96.33 99.56 99.72 99.43 99.57 99.27 99.65 99.31 Table 3 Percent of Outstanding Delinquent Delinquent Taxes to Taxes Total Tax Levy 278,501 303,983 286,677 383,032 280,499 258,104 293,915 389,445 479,170 285,091 5.63 5.82 5.49 7.20 4.78 4.07 4.16 4.78 5.22 2.62 Fiscal Year Ended Sept. 30, 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 CITY OF PEARLAND, TEXAS ASSESSED VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Real Property 532,082,340 555,963,400 593,577,620 646,643,658 722,600,850 774,645,420 857,952,469 998,492,267 1,145,678,437 1,381,514,173 Personal Property Note- Assessment date is January 1st of the tax year. Assessed value is 100% of the estimated actual value. Source- Tax department records of the City. 94,804,820 98,841,350 136,752,320 116,800,212 121,756,997 100,838,570 154,096,941 181,888,920 174,353,848 181,888,920 Table 4 Total 626,887,160 654,804,750 730,329,940 763,443,870 844,357,847 875,483,990 1,012,049,410 1,180,381,187 1,320,032,285 1,563,403,093 Fiscal Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 CITY OF PEARLAND, TEXAS PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (1) Pearland Independent City of School Pearland District 0.80 0.80 0.72 0.70 0.70 0.70 0.70 0.70 0.70 0.69 1.60 1.53 1.70 1.71 1.71 1.77 1.78 1.86 1.65 1.82 Last Ten Fiscal Years Brazoria County 0.32 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.40 0.40 Port of Harris Houston County Authority 0.32 0.33 0.34 0.36 0.41 0.42 0.42 0.37 0.35 0.38 Note: Property Tax rates based on per $100 of assessed valuation. 0.02 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 Harris County Flood Control 0.06 0.06 0.06 0.06 0.08 0.08 0.08 0.03 0.06 0.05 Table 5 Harris County Hospital District 0.20 0.20 0.19 0.18 0.12 0.12 0.12 0.15 0.20 0.19 gayer CITY OF PEARLAND, TEXAS PRINCIPAL TAXPAYERS September30, 2001 : Weatherford U.S.A., Inc. 2 : Reliant Energy 3 Southwestern Bell 4 Pearland Enclave Apt. LTD 5 Albertsons Inc. 6 Aggeko Inc. 7 Lowe's.Home Centers Inc. 8 . Home Depot USA Inc. 9 . Continental 34 Fund Ltd. 10 Phillips Petroleum CO Total principal taxpayers Others Total Source. Tax department records of the Brazoria County Type of Business Oil Field Service, Rental & Fishing Operation Utility Company Utility Company Apartment complex Supermarket Mobil Temperature Home improvement stores Home improvement stores Apartment Oil Field Service 2000 Assessed Value of Property * 29,100,820 14,070,710 10,758,360 10,235,020 7,719,520 7,649,420 6,931,600 6,199,660 6,044,420 5,998,890 104,708,420 1,458,694,673 1 563,403,093 Table 6 Percentage of Assessed Valuation 1.86% 0.90 0.69 0.65 0.49 0.49 0.44 0.40 0.39 0.38 6.70 93.30 100.00 -115- Fiscal Year CITY OF PEARLAND, TEXAS PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS September 30, 2001 Construction- B Table 7 Bank Property Deposits -A Value - C 1992 40,648,928 175,680,243 617,887,160 1993 47,503,523 190,640,375 654,840,750 1994 50,962,332 194,173,827 730,329,940 1995 44,521,636 * 763,443,870 1996 47,357,024 * 844,357,847 1997 126,940,074 * 912,663,450 1998 95,711,203 * 1,020,836,821 1999 106,475,930 * 1,310,608,180 2000 248,015,927 * 1,320,032,285 2001 236,902,344 * 1,563,403,093 Note A- Bank deposits are as reported by Texas Bankers Associations at the preceding December 31. Note B - Inspection department records to the City. Note C - Tax departmentrecords of the City. * Information not available CITY OF PEARLAND, TEXAS RATIO OF NET GENERAL LONG-TERM DEBT TO ASSESSED VALUE AND NET LONG-TERM DEBT PER CAPITA Fiscal Year Ended Estimated Sept. 30, •Population " 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 23,016 23,016 27,942 27,942 30,000 36,000 37,000 37,535 39,000 40,700 Net Assessed Value (in Thousands) 1,268,906 1,329,410 1,411,711 1,494,202 25,810,000 1,563,037 24,810,000 1,624,015 35,350,000 Last Ten Fiscal Years Gross Long -Term Debt (1) 1,012,049 1,180,381 1,320,032 23,398,361 24,385,000 21,765,000 34,820,139 33,456,209 30,351,250 1,563,403 28,364,724 (1) - Includes all general obligation bonds, certificates of obligation, and obligations under capital leases at fiscal year end. * Source: 1989 Reliant Energy connections (City records) times 3.19 less vacancy rate of 6.3% 1990 Bureau of Statistics 1991-98 Bureau of Statistics plus Houston Lighting and Power connections times 3.19 less vacancy rate of 6.3% Debt Service Monies Available Net Long -Term Debt 1,792,917 21,605,444 1,953,703 22,431,297 2,036,915 19,728,085 2,173,995 23,636,005 2,435,712 22,374,288 2,141,816 33,208,184 273,742 34,546,397 208,324 33,247,885 681,148 29,670,102 1,544,987 26,819,737 Ratio of Net Long -Term Debt to Assessed Value 1.70 1.69 1.40 1.58 1.43 2.04 3.41 2.82 2.25 1.72. Table 8 Net Long -Term Debt Per Capita 939: 975 706 846 746 922 934 886 761 659 Fiscal Year Ended Sept. 30 CITY OF PEARLAND, TEXAS Table 9 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL LONG-TERM DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND LEGAL DEBT LIMITS Principal Last Ten Fiscal Years Ratio of Interest Total Debt Service and Final Total Debt General to Total Agent Fees Service Expenditures (1) Expenditures 1992 1,000,237 1,361,372 2,361,609 9,178,792 1993 1,243,361 1,303,993 2,547,354 11,163,194 1994 1,100,000 1,154,694 2,254,694 11,267,042 1995 955,000 1,089,453 2,044,453 12,167,599 1996 1,010,000 1,420,097 2,430,097 13,909,924 1997 1,200,000 1,251,033 2,451,033 14,518,469 1998 1,280,000 1,993,010 3,273,010 17,586,532 1999 1,440,000 1,769,693 3,209,693 19,309,504 2000 1,605,000 1,468,461 3,073,461 19,987,414 2001 1,680,000 1,558,652 3,238,652 22,203,851 (1) - Includes general governmental expenditures of the General Fund and Debt Service Fund. The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter. to levy property taxes up to $2 50 per $100 of assessed valuation for general governmental services. Within the $2 50 maximum levy, there is no legal limit upon the amount of property taxes which can be levied for debt service. The property tax rates to finance general governmental services and debt service for the 2000-2001 tax year were $.43500 and $.26000, respectively, per $100 of assessed valuation. 26 23 20 17 17 17 19 17 15 15 CITY OF PEARLAND, TEXAS COMPUTATION OF DIRECT & INDIRECT DEBT September 30, 2001 Taxing Jurisdiction Brazoria.County Harris County Debt 27,199,761 890,829,545 Pearland Independent School District. 171,756,247 Port of Houston Authority 324,705,000 Harris County Flood Control 108,994,629 Total Overlapping Debt City of Pearland 81,845,000 Total Direct and Overlapping Debt Population Per Capita Debt -Direct and Overlapping Gross Overlapping Percentage 6.97% 0.02% 70.29% 0.02% 0.02% 100.00% Table 10 Amount 1,895,823 178,166 120,727,466 64,941 21,799 122,888,195 81,845,000 204,733,195 40700 5,030 CITY OF PEARLAND, TEXAS DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Table 11 Fiscal Year Ended Estimated School Unemployment Sept. 30, Population (1) Enrollment (2) Percentage (3) 1991 18,750 6,950 2.60 % 1992 23,016 7,500 2.50 % 1993 23,016 7,555 3.20 % 1994 27,942 8,138 3.80 % 1995 27,942 8,600 3.70 % 1996 30,000 8,900 3.60 % 1997 36,000 9,300 3.90 1998 37,000 9,200 4.50 % 1999 37,535 9,500 : 4.60 % 2000 39,000 9,700 3.60 % 2001 40,700 11,170 3.70 % Sources: Estimated Population - The Pearland Economic Development Corporation School enrollment figures were obtained from Pearland Independent School Distnet and includes kindergarten through college students. Unemployment statistics for the City were obtained from the Texas Workforce Commission and calculated as a percentage of unemployed to employable. CITY OF PEARLAND, TEXAS MISCELLANEOUS STATISTICAL DATA September 30, 2001 Date of incorporation December 1959 Form of government Council/Manager Area . 31.3 square miles Fire Protection: Number of stations Number of certified personnel, not including reserve firefighters Number of fire vehicles Police Protection: Number of stations 1 Number of commissioned officers, not including P.S.O. or reserve officers 106 Number of patrol vehicles 74 (home fleet program) Recreation: Number of parks Acres Number of pools Number of tennis courts 9 Softball fields 4 Pavilions 1 large & 4 small Community Center 1 Activity Building Table 12 Page 1 of 2 Education: Pearland Independent School District Number of teachers Number of students Elementary Schools Middles School Junior High High School 4. 50 16 8 111 702 11,170 7 2 2 1 CITY OF PEARLAND, TEXAS MISCELLANEOUS STATISTICAL DATA September 30, 2001 City Employees: Full-time employees 249 Part-time employees 44 293 Election: Number of votes cast Last general election Last city election 2,411 06/02/01 Water: Number of wells 10 Average daily consumption 5,500,000 gallons Maximum daily consumption 10,000,000 gallons Water mains 180 miles Number of connections 11,780 Sewer: Number of plants 3 Liftstations 65 Average daily capacity 7,750,000 gallons Maximum daily consumption 28,000,000 gallons Sanitary sewer mains 170 miles Number of connections 11,200 Emergency Medical Services: Number of volunteers 23 Number of paid paramedics 34 Number of stations 1 Number of vehicles 7 Library Number of buildings 1 Number of cardholders 28,000 Number of books in library 89,000 Table 12 Page 2 of 2 I I City of Pearland Interim Financial Statements For Period Ending February 28, 2001 I I MEMORANDUM March 30, 2001 To Alan Mueller, Interim City Manager From Jim Ca , erector of Finance Subject Monthl ancial Statements for the period ending February 28, 2001 This report displays financial data for the partial year October 1, 2000 through February 28, 2001 At this point in time we are five months into our current fiscal year, and we should have collected 41 7% of our revenue, and expended a like amount of operating budget funds. That assumption holds true throughout this report, except for those revenue and expense items that do not occur in a ratable fashion. In such cases we have replaced the monthly pro-rata budget with a cyclical budget based on historical financial data. We use these cyclical budgets in both revenue and expense budgets where appropnate. These reports have been analyzed to forecast the financial position of the City at year-end, and to determine if the budget is serving its purpose as an integral part of our internal control structure. We use the variances of actual revenues and expenses compared to budgeted revenues and expenses, for this interim period, to project ending increases or decreases in fund balances at year end. We have also reviewed the revenue budgets and analyzed variances that may have a matenal effect on the over-all revenue budget. Departmental expense budgets have been scrutinized for all negative variances, and explanations for the entire fund are included. The results of that analysis preformed on a fund-by-fund basis follow. General Fund The General Fund is the chief operating fund of the City, and accounts for all transactions except for those required to be accounted for in another fund. This fund is comprised of only one fund known as the general fund and coded as 010 Revenue Property Tax Negative Variance- This variance grew much smaller during the month of February Revenue will closely approximate the budget by year-end. Other(Sales) Tax Positive Variance- Sales tax rebates are slightly above budget at this point, and are projected to be approximately $120,000 over budget by year-end. 1 Licenses and Permits Positive Variance- Increased building activity Projection for year-end indicates the positive variance will be in excess of$400,000 Fines and Forfeiture Positive Variance will hold throughout year Franchise Fees Positive variance now and, will be very close to budget by year-end. Charges for Services Negative Variances now, Sanitation revenue approximately 5% behind budget. Intergovernmental revenue Positive Variance, should hold throughout year Other Revenues Positive Variance will probably continue to grow for remaining part of year General Fund Total Revenue Positive Variance- Over-all the fund is over collecting the budget by$518,626 excluding property taxes for the reasons noted earlier in this letter Should this positive trend hold for the rest of the year, as we think it will, this number will grow to over $700,000 Expenditures Of the 28 departments in this fund 4 have exceeded the departmental year to date budget, none have exceeded the annual departmental budget amount. Overall the entire fund has a positive expenditure variance at the present of$1,218,973 As we approach the year-end this positive variance may shrink as year-end accruals and final transfers are made. We estimate it will end at an approximately$300,000 positive variance. Fund Balance The fund balance in the General Fund was $5,243,512 at October 1, 2000 Current variances indicate that this balance will grow by about $1,000,000 to $6,243,512 by September 30, 2001 Propriety/Enterprise Funds Water and Sewer Funds The Water and Sewer Fund is a part of the Proprietary Fund group and is an Enterprise fund. This means that our intent is to operate the fund in a manner similar to a private business, and costs (including depreciation) are covered by user fees. The fund contains the following separate funds. (030) Water and Sewer, (042)Utility Impact Fee, (066) Shadow Creek Utility Impact Fee, (057) Southwest Environmental Project, and(064) CO's 1998 1 Revenue Water and Sewer revenue is $38,097 above this year's budget estimates. Expenditures Expenditures at the present are showing a positive vanance of$523,648 Fund Balance The Water and Sewer Fund Balance is projected to increase by over$500,000 at September 30, 2001 Debt Service Funds The Debt Service Fund is used to accumulate resources with which we will pay future bond principle, interest, and bank services charges related to our long-term financings. The fund is comprised of only one fund(020) Debt Service. Revenue Negative vanance due to the changing pattern of collections attributed to the change in Tax Collectors Total variance is projected to be minimum at year-end. Expenditures No variance projected at year-end, unless bond issues are smaller than budgeted. Fund Balance The Debt Service Fund started the year with a fund balance of$722,526 and this number will be basically unchanged at year-end, except for the possibility mentioned above. Special Revenue Funds This fund contains the(043)Regional Detention, (045)Hotel and Motel Tax, (060), Police, (062) Federal Police, (063) Community Services, (046 & 047)Parks Donations and(101) Grant Funds. These funds all contain revenues that are "earmarked" for specific purposes. Primary revenues flowing into this fund so far this year have been, Hotel/Motel Tax, Park Land Fees, Grants and Interest Income. 1 I Capital Projects Funds This fund contains the(041) Street Assessment, (050) Capital Projects, (053) Roads and Bridges, (054) Library, (058) Capital Improvement 1997 and (061) CO's 1997 Funds. They are all used to account for financial resources to be used for the acquisition or construction of capital items. Revenue sources for this fund have been, interest income and transfer from the General Fund for capital purchases Expenditures are for the active capital projects at this time Pearland Economic Development Corporation Funds Revenue Revenue is $34,145 over budget. Expenditures Expenses are projected to be below budget at the end of the fiscal year Fund Balance The Corporation should increase its retained earnings balance at year-end. Conclusion With 41 7% of the fiscal year covered by this report we can project that the City will end the year with increases in all fund balances, and all fund balance reserve goals are met. CC Mayor and City Councilmembers I I P General Purpose Financial Statement o t CITY OF PEARLAND, TEXAS COMBINED BALANCE SHEET- ALL FUND TYPES AND ACCOUNT GROUPS Period Ended February 28,2001 with comparative totals for September 30,2000 Proprietary Governmental Fund Types Fund Type Special Debt Capital Enterprise General Revenue Service Projects Fund Assets and Other Debits Assets Cash and cash equivalents $ 10,358,376 $ 593,849 $ 1,843,715 $ 4,813,472 $ 15,804,019 Receivables: Property taxes 319,546 - 159,623 - - Accounts Receivable 279,983 - - 242,179 658,776 Less:Allowance for estimated uncoil. (63,008)' - - - (84,603) Assessments - - - - - Accrued interest 31,943 88 - 3,826 142,751 Due from other funds 63,008 50,569 - - 31,549 Inventories 51,678 - - - - Restricted assets - - - - - Cash and cash equivalents - - - - - Deferred charges - - - - - Construction in progress - - - - 7,775,780 Fixed assets(net where applicable - - - - - of accumulated depreciation) - - - - 12,964,307 Bond issurance cost net amort. - - - - 8,108,332 Other Debits Amount available for debt service - - - - 1,521,177 Amount to be provided for retirement of - - - - 9,493,251 general long-term debt Total Assets and Other Debits $ 11,041,526 $ 644,506 $ 2,003,338 $ 5,059,477 $ 56,415,339 Liabilities,Equity,and Other Credits Liabilities Accounts payable $ 492,038 $ 1,364 $ - $ 39,107 $ 515,429 Accrued expenses - - - - 90,700 Due to other funds 82,118 - - - 63,008 Security deposits - - - - 565,061 Accrued compensated absences 164,186 - - - 171,675 Deferred revenue 319,546 - 159,623 15,966 (166,408) Current portion - - - - - Certificates of obligation - - - - - Revenue bonds-less current portion - - - - 33,725,000 4 Obligations under capital leases - - - - - General obligation bonds - - - - - Total Liabilities 1,057,889 1,364 159,623 55,073 34,964,465 Equity and Other Credits Contributed capital $ - $ - $ - $ - $ 16,021,810 Investment in general fixed assets - - - - - Retained earnings - - - - 714,317 Fund Balances: Reserved for encumbrances 294,544 55,347 - 2,221,381 4,714,747 Unreserved: Designated for debt service - - 1,843,715 - - Designated for subsqt.years'expenditures - 587,795 - - - Undesignated 9,689,094 - - 2,783,023 - Total Equity and Other Credits 9,983,638 643,142 1,843,715 5,004,404 21,450,873 Total Liabilities,Equity,and Other Credits $ 11,041,526 $ 644,506 $ 2,003,338 $ 5,059,477 $ 56,415,339 I Total Primary Component Account Groups Government Units Totals General General Long- (Memorandum TIRZ (Memorandum Only) Fixed Assets Term Debt Only) P.E.D.C. 1,2 Jan 31,2001 2000 1 $ - $ - $ 33,413,431 $ 3,670,273 $ 21,327 $ 37,105,031 $ 44,227,152 - - 479,169 - - 479,169 479,170 - - 1,180,938 - - 1,180,938 1,761,216 - - (147,611) - - (147,611) (147,611) - - - - 250,000 250,000 242,178 - - 178,608 16,488 - 195,096 195,096 1 - - 145,126 - - 145,126 674,041 - - 51,678 - - 51,678 51,678 - - - - - - 425,136 - - - - - - 510,640 - - 7,775,780 - - 7,775,780 - 49,334,278 - 62,298,585 55,403 - 62,353,988 78,263,007 - 8,108,332 - - 8,108,332 273,741 1,794,918 - - 1,794,918 722,526 30,583,036 40,076,287 4,752,620 - 44,828,907 38,584,414 $ 49,334,278 $ 30,856,777 $ 155,355,242 $ 8,494,784 $ 271,327 $ 164,121,353 $ 165,988,643 $ - $ - $ 1,047,938 $ 15,664 $ - $ 1,063,602 $ 2,560,307 - 90,700 - - 90,700 404,029 145,126 - - 145,126 610,015 - - 565,061 - - 565,061 528,630 1,215,529 1,551,390 7,620 - 1,559,010 1,441,592 - - 328,727 - - 328,727 510,735 15,875,000 15,875,000 4,745,000 - 20,620,000 17,525,000 II - - - 33,725,000 - - 33,725,000 33,725,000 381,248 381,248 - - 381,248 826,209 13,385,000 13,385,000 - - 13,385,000 19,850,000 0 30,856,777 67,095,191 4,768,284 0 71,863,475 77,981,517 $ - $ - $ 16,021,810 $ - $ - $ 16,021,810 $ 16,524,351 49,334,278 - 49,334,278 55,403 - 49,389,681 49,389,680 - 714,317 - - 714,317 10,361,051 - - 7,286,019 7,174 806,600 8,099,793 2,555,094 - - 1,843,715 - - 1,843,715 722,526 - - 587,795 - - 587,795 3,458,006 - - 12,472,117 3,663,923 (535,273) 15,600,767 4,996,418 49,334,278 - 88,260,051 3,726,500 271,327 92,257,878 88,007,126 $ 49,334,278 $ 30,856,777 $ 155,355,242 $ 8,494,784 $ 271,327 $ 164,121,353 $ 165,988,643 I CITY OF PEARLAND TEXAS COMBINED BALANCE SHEET ALL GOVERNMENTAL FUND TYPES Period Ended February 28,2001 Goi General Assets and Other Debits Assets Cash and cash equivalents $ 10,358,376 Investments - Receivables: Property taxes 319,546 Accounts Receivable 279,983 Less.Allowance for estimated uncollectibles (63,008) Assessments - Accrued interest 31,943 Due from other funds 63,008 Inventories 51,678 Restricted assets - Bond issurance cost net amort. Other Debits Amount available for debt service - Total Assets and Other Debits $ 11,041,526 Liabilities,Equity,and Other Credits Liabilities Accounts payable $ 492,038 Due to other funds 82,118 Security deposits - Accrued compensated absences 164,186 Deferred revenue 319,546 Current portion - General obligation bonds - , Total Liabilities 1,057,889 Equity and Other Credits Fund Balances. Reserved for encumbrances (294,544) Reserved for inventories and prepaid items - Unreserved: Designated for debt service - Designated for New Industry - Designated for subsequent years'expenditures - Undesignated 10,278,182 Total Equity and Other Credits 9,983,638 Total Liabilities,Equity,and Other Credits $ 11,041,526 I ivernmental Fund Types Special Debt Capital TOTAL Revenue Service Projects $ 593,849 $ 1,843,715 $ 4,813,472 $ 17,609,412 - 159,623 - 479,169 - - 242,179 522,162 - (63,008) 88 - 3,826 35,857 50,569 - - 113,577 - - 51,678 $ 644,506 $ 2,003,338 $ 5,059,477 $ 18,748,848 $ 1,364 $ - $ 39,107 $ 532,509 - - 82,118 - - - 164,186 - 159,623 15,966 495,135 1,364 159,623 55,073 1,273,949 55,347 - 2,221,381 1,982,184 - 1,843,715 - 1,843,715 587,795 - - 587,795 2,783,023 13,061,205 643,142 1,843,715 5,004,404 17,474,899 $ 644,506 $ 2,003,338 $ 5,059,477 $ 18,748,848 II CITY OF PEARLAND, TEXAS 1 COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES- ALL GOVERNMENTAL FUND TYPES Period Ended February 28,2001 Governmental Special General Revenue Revenues Property taxes and penalties $ 6,018,730 $ - Other taxes 1,852,996 26,773 Licenses and permits 676,197 - Fines and forfeitures 347,185 13,755 Franchise fees 1,105,859 - Charges for services 1,241,990 146,300 Intergovernmental revenues 47,332 - Other revenues 291,000 11,264 Interest earned - 11,154 Total Revenues 11,581,289 209,246 Expenditures Current(see note below): Salary& Wages 3,803,798 - Materials& Supplies 276,656 - Expense 2,585,379 - Services 143,533 Non-Operating Expenses 508,113 2,271 Capital Outlay&Capital improvements - 23,762 Debt Service: - - Principal retirement - - Interest and fiscal charges - - Total Expenditures 7,173,945 169,566 Revenues Over(Under)Expenditures 4,407,344 39,680 Other Financing Sources(Uses) Transfer in from Water& Sewer 291,665 - Transfer in from Eco. Develop 45,833 - Transfer in from PEDC - - Transfer out to General Fund - - Proceeds from lease financing - - Total Other Financing Sources(Uses) 337,498 - 41 Revenues and Other Financing Sources Over(Under)Expenditures and Other Financing(Uses) 4,744,842 39,680 Fund Balances-Beginning 5,238,796 603,462 Fund Balances-Ending $ 9,983,638 $ 643,142 (Note:In the column of Totals Memorandum Only of the year 2000 the categories are grouped as follow General Government, Public Safety,Public Works and Community Services). I Fund Types Totals Debt Capital (Memorandum Only) Service Projects 2001 2000 $ 3,582,561 $ - $ 9,601,291 $ 9,344,578 - - 1,879,769 3,745,460 - - 676,197 1,469,799 10,811.23 - 371,751 731,959 - - 1,105,859 2,022,789 - I44,887 1,533,177 3,061,545 0 - 30,000 77,332 15,000 - 118,729 420,993 2,652,225 42,538 115,415 169,107 - 3,635,911 409,031 15,835,477 23,043,355 - - 3,803,798 3,971,861 - - 276,656 5,952,191 (2,553) - 2,582,825 5,632,183 143,533 - - - 510,384 1,781,610 - 731,470 755,232 1,679,600 1,680,000 - 1,680,000 1,605,000 837,276 - 837,276 1,459,038 2,514,723 731,470 10,589,704 22,081,483 1,121,189 (322,439) 5,245,773 961,872 - - 291,665 1,353,081 - - 45,833 110,000 - 212,768 212,768 - - - - (664,992) - - 151,676 / - 212,768 550,266 949,765 1,121,189 (109,671) 5,796,039 1,911,637 722,526 5,114,075 11,678,859 9,994,654 $ 1,843,715 $ 5,004,404 $ 17,474,899 $ 11,906,291 1 CITY OF PEARLAND OF TEXAS COMBINED BALANCE SHEET- ALL PROPRIETARY FUNDS(ENTERPRISE FUNDS) Period Ended February 28,2001 Proprietary Funds Types Enterprise Enterprise Total Fund(W& S) Projects Assets and Other Debits Assets Cash and cash equivalents $ 2,757,892 $ 13,046,127 $ 15,804,020 Receivables: Accounts Receivable 658,306 470 658,776 Less.Allowance for est. uncollect. (84,603) - (84,603) Assessments - - - ' Accrued interest 12,115 130,636 142,751 Due from other funds 31,549 - 31,549 Deferred charges - - - Construction in progress - 7,775,780 7,775,780 Fixed assets(net where applicable of accum.depre.) 12,227,371 736,936 12,964,307 Bond issurance cost net amort. - 8,108,332 8,108,332 Other Debits Amount available for debt service - 1,521,177 1,521,177 Amount to be provided for retirement - 9,493,251 9,493,251 of general long-term debt - - - Total Assets and Other Debits $ 15,602,630 $ 40,812,709 $ 56,415,339 Liabilities,Equity,and Other Credits Liabilities Accounts payable $ 121,685 $ 393,744 $ 515,429 Accrued interest expenses 34,071 56,629 90,700 Due to other funds 63,008 - 63,008 Security deposits 565,061 - 565,061 Accrued compensated absences 171,675. - 171,675 Deferred revenue (208,009) 41,602 (166,408) Certificates of obligation - - - 1 Revenue bonds-less current portion 8,675,000 25,050,000 33,725,000 Obligations under capital leases - - - General obligation bonds - - - Total Liabilities 9,422,491 25,541,975 34,964,465 Equity and Other Credits Contributed capital 11,723,901 4,297,909 16,021,810 Investment in general fixed assets - - - Retained earnings (5,677,834) 6,392,151 714,317 Fund Balances: Reserved for encumbrances 134,072 4,580,675 4,714,747 Unreserved: Undesignated - - - Total Equity and Other Credits 6,180,139 15,270,734 21,450,873 Total Liabilities,Equity,and Other Credits $ 15,602,630 $ 40,812,709 $ 56,415,339 , CITY OF PEARLAND, TEXAS COMBINED STATEMENTS OF REVENUES,EXPENSES,AND CHANGES IN RETAINED EARNINGS- ALL PROPRIETARY FUND TYPES(ENTERPRISE FUND) Period Ended February 28,2001 Propriety Funds Types Enterprise Enterprise Total Fund(W&S) Projects Operating Revenues Water& sewer sales and services $ 2,647,890 $ - $ 2,647,890 Impact fees - 1,719,017 1,719,017 Others 16,210 - 16,210 Total Operating Revenues 2,664,100 1,719,017 4,3 83,117 p Operating Expenses Personel 640,461 - 640,461 Material& Supplies 239,824 - 239,824 Maintenance 201,403 - 201,403 Service 633,851 117,977 751,828 Debt service 395,104 348,116 743,220 Capital outlays 220,608 3,287,108 3,507,716 Capital improvements - 311,404 311,404 Other charges 63,917 - 63,917 Total Operating Expenses 2,395,168 4,064,605 6,459,773 Operating loss before depreciation 268,932 (2,345,588) (2,076,656) Depreciation - - - Operating Income(Loss) 268,932 (2,345,588) (2,076,656) Non-Operating Revenue Earnings on investments - 518,780 518,780 Bond Proceeds - - - Interest earned 47,499 - 47,499 ' Total Non-Operating Revenues(Expenses) 47,499 518,780 566,279 Income Before Operating Transfers 316,431 (1,826,808) (1,510,377) Operating Transfers In(Out) Operating Transfer from General Fund - - - Operating Transfer from Water and Sewer - - - Interdepartmental charges (8,657) - (8,657) Operating Transfer To Other Funds (291,665) - (291,665) 16,109 (1,826,808) (1,810,699) Retained Earnings-Beginning 6,164,030 17,097,542 23,261,572 Retained Earnings-Ending $ 6,180,139 $ 15,270,734 $ 21,450,873 1 CITY OF PEARLAND COMBINE BALANCE SHEET- ALL COMPONENT UNITS Period Ended February 28,2001 Total Total P.E.D.0 & Overpass TIRZ Assets and Other Debits Assets Cash and cash equivalents $ 3,670,273 $ 21,327 Investments(short-term) - - Receivables: Property taxes - - Accounts Receivable - 250,000 Less:Allowance for estimated uncollectibles - - Assessments - - Accrued interest 16,488 - Due from other funds - - Inventories - - Deferred charges - - Construction in progress - - Fixed assets(net where applicable of accum. depre.) 55,403 - Other Debits Amount available for debt service - - Amount to be provided for retirement of 4,752,620 - general long-term debt - - Total Assets and Other Debits $ 8,494,784 $ 271,327 Liabilities,Equity, and Other Credits Liabilities Accounts payable $ 15,664 $ - Accrued expenses - - Security deposits - - Accrued compensated absences 7,620 - Certificates of obligation 4,745,000 - General obligation bonds - - Total Liabilities 4,768,284 - Equity and Other Credits Contributed capital - - Investment in general fixed assets 55,403 - 1 Retained earnings - - Fund Balances: - - Reserved for encumbrances 7,174 806,600 Unreserved: - - Designated for debt service - - Undesignated 3,663,923 (535,273) Total Equity and Other Credits 3,726,500 271,327 Total Liabilities,Equity,and Other Credits $ 8,494,784 $ 271,327 1 I CITY OF PEARLAND, TEXAS COMBINED STATEMENTS OF REVENUES, EXPENSES,AND CHANGES IN RETAINED EARNINGS- ALL COMPONENT UNITS P.E.D.C.AND TIRZS Period Ended February 28,2001 Component Units P.E.D.C. & Overpass TIRZ 1 &2 Operating Revenues Other revenue $ - $ 38,209 ' Sales tax 922,725 - Property taxes 199,743 Other revenue - - 1 Total Operating Revenues 922,725 237,952 Operating Expenses - Salary& Wages 76,793 - Materials & Supplies 1,275 - Maintenance 1,182 - Services 104,960 16,768 Other Charges 3,000 - Capital Outlay 216,138 - Total Operating Expenses 403,348 16,768 Operating Income Before Depreciation 519,377 221,184 Depreciation - - Operating Income(Loss) 519,377 221,184 Non-Operating Revenue/(Expenses) Bond Proceeds - - Interest and fiscal charges 70,198 2,694 Debt services (137,205) - Total Non-Operating Revenues(Expenses) (67,007) 2,694 Income Before Operating Transfers 452,370 223,878 Operating Transfers In(Out) 1 Operating Transfer from General Fund - - Transfer to Capital Project (212,768) - Operating Transfer out (45,833) - Net Income(Loss) 193,769 223,878 Retained Earnings-Beginning 3,532,731 47,450 Retained Earnings-Ending $ 3,726,500 $ 271,327 I I I This Page Left Intentionally Blank I I r I Individual Fund Statements Budget Comparisons r r I CITY OF PEARLAND GENERAL FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Revenues Variance Property Taxes and Penalties $ 7,013,350 $ 6,619,294 $ 6,018,730 $ (600,564) Other Taxes 4,237,800 1,789,774 1,852,996 63,222 IILicenses and Permits 1,097,500 397,430 676,197 278,767 Fines and Forfeitures 759,700 278,775 347,185 68,410 Franchise Fees 2,012,000 1,074,434 1,105,859 31,425 Charges for Services 3,273,550 1,302,311 1,241,990 (60,321) Intergovernmental Revenues 130,000 45,228 47,332 2,104 Other Revenues 639,775 155,984 291,000 135,016 Total Revenues $ 19,163,675 $ 11,663,230 $ 11,581,289 $ (81,941) r r 4 CITY OF PEARLAND GENERAL FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Revenues Variance Property Taxes-current $ 6,832,600 $ 6,547,799 $ 5,939,224 $ (608,575) Property Taxes- delinquent 70,000 29,854 60,159 30,305 Penalties and Interest 40,000 12,963 17,914 4,951 Attorney Fees 20,000 750 - (750) Shadowcreek Prop Adj 50,000 7,098 - (7,098) Misc. Tax Revenue 750 20,830 1,433 (19,397) Property Taxes and Penalties 7,013,350 6,619,294 6,018,730 (600,564) 41 City Retail Sales Tax 4,225,000 1,783,796 1,845,450 61,654 City Retail Sales Tax Discount 800 330 357 27 State Beverage Tax 12,000 5,648 7,190 1,542 Other Taxes 4,237,800 1,789,774 1,852,996 63,222 Building Permits 530,000 161,500 300,359 138,859 Electrical Permits 65,000 23,448 34,181 10,733 Plumbing&Gas Permits 75,000 23,311 44,943 21,632 Platting Fees 50,000 18,181 20,503 2,322 Mechanical Permits 50,000 18,949 40,467 21,518 Beer Permits 3,500 1,220 1,370 150 Moving Permits 8,000 3,029 3,200 171 Garage Sale Permits 17,000 5,555 5,955 400 Electrical Licenses 13,500 11,007 13,240 2,233 Animal Licenses 15,000 5,198 3,384 (1,814) Peddlers& Solicitors 1,000 421 1,285 864 Health Certicate Fees 20,000 14,848 13,155 (1,693) Wrecker Permits 4,000 3,700 100 (3,600) Culvert Permits 2,500 811 1,376 565 Building Plan Check Fee 200,000 83,330 167,336 84,006 Occupancy Permits 2,000 920 1,100 180 Plan&Zone Board of Adj. 10,000 3,019 7,315 4,296 41 Demolition Permits 200 41 - (41) Kennel Licenses - - - - Bldg. Site Work Permit 20,000 14,392 11,180 (3,212) Alarm Permits 2,500 1,094 1,500 406 Reinspec. Fee/Inspection 1,000 646 300 (346) Sign Permits 4,000 1,625 1,841 216 Health-Mobile unit - - - - Health-Employees 1-5 - - - - Health-Registration 1 Yr 1,300 407 578 171 Health-Registration 2 Yr 2,000 778 1,530 752 Licenses and Permits 1,097,500 397,430 676,197 278,767 Child Safety-Harris Co. 1,700 658 699 41 41 I CITY OF PEARLAND GENERAL FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Revenues Variance Mun. Court Bldg. Security 18,000 6,666 (14) (6,680) Fines 740,000 271,451 346,500 75,049 Fines and Forfeitures 759,700 278,775 347,185 68,410 Gas 72,000 72,000 88,884 16,884 Electric Utility 1,150,000 654,567 758,417 103,850 1 Telephone Company 300,000 140,504 55,857 (84,647) Cable Television 125,000 64,711 65,651 940 Sanitation 365,000 142,652 137,050 (5,602) Franchise Fees 2,012,000 1,074,434 1,105,859 31,425 False Alarm Fee - - - J - GPS-Disk - - - - Clean Pearland Bldg. Rent 2,400 1,000 822 (178) Tax Substation Bldg Rent - - 1,416 1,416 Basketball Programs 8,500 3,346 2,388 (958) Trash Revenue 2,400,000 993,162 934,754 ,(58,408) Sanitation Billing Fee 135,000 51,701 46,294 (5,407) MUD/EMS/Fire Collections 55,000 21,503 30,267 8,764 Animal Shelter 20,000 8,452 7,953 (500) Disposal of Animals 3,500 983 2,350 1,367 Police Programs 50 20 24 4 Fingerprint Fees 500 205 285 80 Tennis Programs 4,500 807 1,987 1,180 Recreation Programs 100,000 36,633 30,272 (6,361) Learn to Swim Programs 20,000 - (12) (12) Community Building Rental 38,000 16,467 12,340 (4,127) Senior Citizens Programs 3,000 1,243 1,808 565 Swimming Pool Fees 15,000 - - - Pool Rental 3,500 81 - (81) 1 Pavilion Rental 2,500 - 20 20 Ambulance Service Fee 350,000 130,909 132,549 1,640 Rental Gazebo&Pavilion 6,000 1,416 1,059 (357) Soccer Program 35,000 8,965 5,957 (3,008) Softball Program 55,000 15,544 17,752 2,208 Barbeque Shelter Rental 3,000 598 (300) (898) Winter Fest 12,000 8,671 11,112 2,441 Dog Trot 1,000 545 895 350 Pool Locker Fee 100 60 - (60) a Charges for Services 3,273,550 1,302,311 1,241,990 (60,321) Grant-Police Department 69,000 29,978 42,010 12,032 Grant-Gal. Co. Task Force 46,000 11,500 - (11,500) Grant- Forestry Program - - - Emergency Mgmt. Asst Grant - - - r r CITY OF PEARLAND GENERAL FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Revenues Variance Grant- E.M.S 15,000 3,750 5,322 1,572 Intergovernmental Revenues 130,000 45,228 47,332 2,104 City Brochure 4,000 1,458 375 (1,083) Report Copies-Police Dept 4,500 1,691 1,892 201 Bids& Specs 500 - 625 625 Cash Short/Over - - 193 193 , Suspense Revenue - - 93 93 Donations-Concert/Band 5,000 2,706 500 (2,206) Donations Planning - - - - Reimbursements-Phone& Fax 3,000 1,250 2,294 1,044 Reimbursement- Worker Comp 2,500 1,040 - (1,040) Reimbursement- P.I.S.D 211,825 - - - Plat Copies 1,500 841 505 (336) Reprodution/Xerox Copies 2,000 859 712 (147) Reimbursement-Insurance 5,000 - 15,546 15,546 Texpool Interest 200,000 61,966 78,534 16,568 Payroll Interest 800 286 459 173 N O W Account Interest 30,000 18,540 20,415 1,875 Interest Income 90,000 33,930 105,409 71,479 Credit Card Interest 1,000 256 2,785 2,529 Miscellaneous 30,000 12,500 9,064 (3,436) Auction - - - - Street Light Charges 40,000 16,091 48,174 32,083 N S.F Fees 1,000 415 401 (14) Sand/Topsoil - - - - Discount Taken 50 20 2,215 2,195 Pavers - - - - Pool/Park Vending Machine 1,500 625 - (625) Comm. Center Vending Machin( 1,500 625 193 (432) City Hall Vending Machine 100 40 88 48 Concession Stand 4,000 845 529 (316) i Other Revenues 639,775 155,984 291,000 135,016 Total Revenues $ 19,163,675 $ 11,663,230 $ 11,581,289 $ (81,941) 0 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance City Council $ 74,650 $ 31,085 $ 40,327 $ (9,242) City Manager 542,868 226,160 170,669 55,491 ' City Secretary 168,863 59,251 45,859 13,392 Finance 562,312 227,531 190,747 36,784 Tax 115,867 48,275 48,130 145 Human Resources 415,844 173,201 133,936 39,265 Legal 275,423 114,710 114,049 661 Municipal Court 233,810 97,341 89,515 7,826 Custodial Services 184,693 76,759 64,155 12,604 City Hall 480,931 200,385 188,853 11,532 Public Affairs/Grants 332,826 135,100 96,706 38,394 Other requirements 1,769,562 756,739 418,126 338,613 Total General Government 5,157,649 2,146,537 1,601,072 545,465 P Police 5,622,150 2,329,180 2,272,114 57,066 Fire 197,609 82,277 32,283 49,994 Fire Marshal 225,747 93,911 54,255 39,656 Animal Shelter 221,152 91,919 78,589 13,330 Emergency Medical Services 752,702 310,284 297,470 12,814 Total Public Safety 7,019,360 2,907,571 2,734,711 172,860 Public works Administration 142,364 59,270 58,910 360 1 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Engineering 683,283 269,980 340,082 (70,102) Code Enforcement 425,865 177,316 169,952 7,364 Community Services 10,000 4,165 - 4,165 Fleet Maintenance 222,051 92,427 89,613 2,814 Service Center 119,429 49,440 59,031 (9,591) Streets and Drainage 1,909,351 794,640 503,055 291,585 Sanitation 2,525,355 1,052,183 863,695 188,488 Total Public Works 6,037,698 2,499,421 2,084,338 415,083 Library 68,950 28,710 41,045 (12,335) Parks&Recreation-Administration 1,064,826 437,312 427,315 9,997 Parks&Recreation-Recreation 445,805 185,043 151,865 33,178 Parks&Recreation-Athletics 208,471 86,249 64,816 21,433 Parks&Recreation-Aquatics 245,091 102,055 68,782 33,273 Total Community Services 2,033,143 839,369 753,823 85,546 Total Expenditures $ 20,247,850 $ 8,392,898 $ 7,173,945 $ 1,218,954 4 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Personnel $ 22,025 $ 9,175 $ 7,342 $ 1,833 ' Materials& Supplies 2,000 830 1,241 (411) Maintenance - - - - Services 50,625 21,080 31,744 (10,664) Capital Outlay - - City Council 74,650 31,085 40,327 (9,242) Personnel 495,218 206,320 152,232 54,088 Materials& Supplies 5,300 2,205 515 1,690 Maintenance 6,320 2,630 384 2,246 Services 36,030 15,005 17,538 (2,533) Other Charges - - - - Capital Outlay - - - _ City Manager 542,868 226,160 170,669 55,491 Personnel 124,624 43,015 37,633 5,382 Materials& Supplies 9,500 1,707 1,834 (127) Maintenance 1,500 725 54 671 Services 28,119 11,674 6,006 5,668 Other Charges 5,120 2,130 332 1,798 Capital Outlay - - - _ City Secretary 168,863 59,251 45,859 13,392 Personnel 506,294 204,285 176,916 27,370 Materials& Supplies 12,283 5,079 3,425 1,654 Maintenance 3,750 1,525 1,507 18 Services 37,865 15,762 8,735 7,027 Other Charges 120 50 164 (114) / Capital Outlay 2,000 830 - 830 Finance 562,312 227,531 190,747 36,784 Personnel - - - _ Materials& Supplies - - - - Maintenance - - _ _ Other Services 115,867 48,275 48,130 145 Capital Outlay - - _ _ Tax 115,867 48,275 48,130 145 Personnel 294,947 122,870 108,641 14,229 Materials& Supplies 16,715 6,946 4,541 2,405 Maintenance 2,200 910 1,249 (339) Services 96,822 40,330 18,585 21,745 r I CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Other Charges 5,160 2,145 920 1,225 Capital Outlay - - - - Human Resources 415,844 173,201 133,936 39,265 Personnel 194,848 81,170 75,589 5,581 Materials& Supplies 7,025 2,920 1,887 1,033 Maintenance 1,000 410 90 320 Services 67,550 28,130 36,483 (8,353) Other Charges 5,000 2,080 - 2,080 Capital Outlay - - - - Legal 275,423 114,710 114,049 661 Personnel 212,624 88,575 80,270 8,305 Materials& Supplies 3,971 1,645 917 728 Maintenance 850 350 569 (219) Services 15,455 6,396 6,362 34 Other Charges 910 375 207 168 Capital Outlay - - 1,190 (1,190) Municipal Court 233,810 97,341 89,515 7,826 Personnel 152,221 63,410 58,718 4,692 Materials& Supplies 28,612 11,749 4,503 7,246 Maintenance 2,700 1,120 843 277 Services 1,000 415 91 324 Other Charges 160 65 - 65 Capital Outlay - - - - Custiodial Services 184,693 76,759 64,155 12,604 1 Personnel - - - - Materials& Supplies 19,619 8,166 3,656 4,510 Maintenance 117,512 48,989 59,876 (10,887) Services 270,800 112,815 71,367 41,448 Other Charges 3,000 1,250 140 1,110 Capital Outlay 70,000 29,165 53,814 (24,649) City Hall 480,931 200,385 188,853 11,532 Personnel 183,228 75,910 69,713 6,197 Materials& Supplies 92,258 36,108 23,047 13,061 Maintenance - - - I II CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Services 57,340 23,082 3,945 19,137 Other Charges - - - - Capital Outlay - - - - Public Affairs/Grants 332,826 135,100 96,706 38,394 1 Personnel 36,000 21,650 15,000 6,650 Materials& Supplies 23,845 9,935 10,576 (641) Maintenance 55,489 23,120 44,655 (21,535) Services 617,737 270,174 299,740 (29,566) Other Charges 1,036,491 431,860 48,155 383,705 Capital Outlay - - - - Other Requirements 1,769,562 756,739 418,126 338,613 Total General Government 5,157,649 2,146,537 1,601,071 545,466 Personnel 4,640,731 1,920,816 1,753,983 166,833 Materials& Supplies 87,932 36,593 27,429 9,164 Maintenance 300,746 125,289 154,029 (28,740) Services 206,761 85,662 77,713 7,949 Other Charges 5,000 2,080 1,643 437 Capital Outlay 380,980 158,740 257,316 (98,576) Police 5,622,150 2,329,180 2,272,114 57,066 Personnel - - - _ 1 Materials& Supplies 58,834 24,482 4,724 19,758 Maintenance 89,000 37,070 11,255 25,815 Services 46,775 19,475 15,449 4,026 Other Charges 3,000 1,250 856 394 Capital Outlay - _ _ _ Fire 197,609 82,277 32,283 49,994 Personnel 145,189 60,480 46,363 14,117 Materials& Supplies 11,168 4,551 897 3,654 Maintenance 6,350 2,630 1,456 1,174 Services 39,900 16,610 5,186 11,424 Other Charges - - _ - Capital Outlay 23,140 9,640 354 9,286 r 1 CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Fire Marshal 225,747 93,911 54,255 39,656 Personnel 171,640 71,495 53,448 18,047 Materials& Supplies 11,349 4,600 5,065 (465) Maintenance 9,150 3,795 5,676 (1,881) 1 Services 20,263 8,394 6,846 1,548 Other Charges 500 205 670 (465) Capital Outlay 8,250 3,430 6,884 (3,454) Animal Shelter 221,152 91,919 78,589 13,330 Personnel 413,064 172,100 175,267 (3,167) Materials& Supplies 92,360 38,233 17,654 20,579 Maintenance 90,020 36,321 28,450 7,871 Services 96,625 40,063 25,694 14,370 Other Charges 3,000 1,250 410 840 Capital Outlay 57,633 22,317 49,996 (27,679) Emergency Medical Services 752,702 310,284 297,470 12,814 Total Public Safety 7,019,360 2,907,571 2,734,712 172,859 Personnel 124,624 51,905 48,603 3,302 Materials& Supplies 9,500 3,955 4,508 (553) Maintenance 3,050 1,260 1,570 (310) Services 5,190 2,150 4,230 (2,080) Other Charges - - - - 1 Capital Outlay - - - - Public Works Administration 142,364 59,270 58,910 360 Personnel 527,028 219,570 199,008 20,562 Materials& Supplies 7,105 2,950 2,239 711 Maintenance 8,965 3,725 3,384 341 Services 135,885 41,945 131,631 (89,686) Other Charges 300 125 - 125 Capital Outlay 4,000 1,665 3,820 (2,155) Engineering 683,283 269,980 340,082 (70,102) 4 I CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Personnel 344,926 143,705 135,480 8,225 Materials& Supplies 17,972 7,396 3,960 3,436 Maintenance 12,400 5,160 3,242 1,918 Services 50,267 20,930 27,188 (6,258) 1 Other Charges 300 125 82 43 Capital Outlay - - - - Code Enforcement 425,865 177,316 169,952 7,364 Personnel - - - _ Materials& Supplies 10,000 4,165 - 4,165 Maintenance - - - _ Services - - - _ Other Charges - - - _ Capital Outlay - - _ _ Community Services 10,000 4,165 - 4,165 Personnel 210,469 87,680 84,496 3,184 Materials& Supplies 2,980 1,235 829 406 Maintenance 4,992 2,017 2,346 (329) Services 3,450 1,430 1,942 (512) Other Charges 160 65 - 65 Capital Outlay - - _ _ Fleet Maintenance 222,051 92,427 89,613 2,814 Personnel - - _ _ 1 Materials& Supplies 12,785 5,298 12,726 (7,428) Maintenance 53,600 22,315 22,149 166 Services 53,044 21,827 24,156 (2,329) Other Charges - - _ _ Capital Outlay - - _ _ Service Center 119,429 49,440 59,031 (9,591) Personnel 502,112 209,195 179,383 29,812 Materials& Supplies 226,996 94,565 47,177 47,388 Maintenance 637,391 264,705 54,541 210,164 Services 365,852 152,425 147,397 5,028 Other Charges - - 196 (196) Capital Outlay 177,000 73,750 74,361 (611) Streets and Drainage 1,909,351 794,640 503,055 291,585 r I CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Personnel - - - - Materials& Supplies - - - - Maintenance 20,000 8,330 12,384 (4,054) Services 2,505,355 1,043,853 851,311 192,542 . Other Charges - - - - Capital Outlay - - - - Sanitation 2,525,355 1,052,183 863,695 188,488 Total Public Works 6,037,698 2,499,421 2,084,340 415,081 Personnel - - - - Materials& Supplies 2,050 845 528 317 Maintenance 6,900 2,870 2,541 329 Services 56,500 23,540 37,130 (13,590) Other Charges - - - - Capital Outlay 3,500 1,455 846 609 Library 68,950 28,710 41,045 (12,335) Personnel 668,352 278,465 233,935 44,530 Materials& Supplies 35,317 14,664 5,972 8,692 Maintenance 146,124 60,978 75,950 (14,972) Services 112,096 46,075 59,548 (13,473) Other Charges 480 200 164 36 Capital Outlay 102,457 36,930 51,746 (14,816) Parks&Recreation-Administration 1,064,826 437,312 427,315 9,997 Personnel 249,357 103,890 88,167 15,723 Materials& Supplies 118,518 49,354 35,610 13,744 Maintenance 7,459 3,105 - 3,105 Services 62,951 25,564 21,657 3,907 Other Charges 720 300 82 218 Capital Outlay 6,800 2,830 6,348 (3,518) Parks&Recreation-Recreation 445,805 185,043 151,865 33,178 Personnel 72,372 30,140 20,043 10,097 Materials& Supplies 93,665 39,022 24,745 14,277 Maintenance 12,410 4,587 600 3,987 Services 29,784 12,400 19,428 (7,028) Other Charges 240 100 - 100 Capital Outlay - - - - Parks &Recreation-Athletics 208,471 86,249 64,816 21,433 I I CITY OF PEARLAND, TEXAS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Personnel 126,476 52,680 3,567 49,113 Materials& Supplies 70,900 29,510 26,450 3,060 Maintenance 25,180 10,490 35,291 (24,801) Services 19,675 8,190 2,035 6,155 Other Charges 860 355 - 355 Capital Outlay 2,000 830 1,439 (609) Parks&Recreation-Aquatics 245,091 102,055 68,782 33,273 Total Community Services 2,033,143 839,369 753,823 85,546 Total Expenditures $ 20,247,850 $ 8,392,898 $ 7,173,945 $ 1,218,952 D I CITY OF PEARLAND WATER& SEWER FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Revenues Variance Water Sales $ 3,616,500 $ 1,310,221 $ 1,321,775 $ (11,554) Sewer Charges 3,560,000 1,297,737 -1,223,834 73,903 Miscellaneous 183,200 65,544 165,990 (100,446) 1 Total Revenues $ 7,359,700 $ 2,673,502 $ 2,711,599 $ (38,097) i I I II CITY OF PEARLAND WATER& SEWER FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Revenues Variance Texpool interest $ - $ - $ 1,306 $ 1,306 - Meter Reinspection Fees 2,000 1,110 1,610 500 Service Charges for Cut Off 18,000 11,208 - (11,208) Tapping Fees-Water 1,000 625 - (625) II N S.F Fees 4,500 1,840 2,400 560 Water Sales 3,591,000 1,295,438 1,308,899 13,461 Water-Somersetshire - - 7,560 7,560 Water Sales 3,616,500 1,310,221 1,321,775 11,554 Sewer Charges 3,240,000 1,181,790 1,097,038 (84,752) Sewer-Somersetshire - - 6,120 6,120 Tapping Fees-Water 100,000 28,463 28,575 112 Tapping Fees-Sewer 30,000 10,079 2,630 (7,449) Loss of Discount 190,000 77,405 89,472 12,067 Sewer Charges 3,560,000 1,297,737 1,223,834 (73,903) Meter Set Fee 120,000 37,694 102,281 64,587 Cash Short/Over - - - Utility Reimbursement 200 200 8,087 7,887 Reimbursement Misc. 8,000 4,483 6,226 1,743 N 0 W Interest 20,000 5,304 16,195 10,891 Interest Income 30,000 15,783 31,304 15,521 Miscellaneous Income 5,000 2,080 1,897 (183) Miscellaneous 183,200 65,544 165,990 100,446 II Total Revenues $ 7,359,700 $ 2,673,502 $ 2,711,599 $ 38,097 I 1 CITY OF PEARLAND, TEXAS WATER& SEWER FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Water Production&Wastewater' 2,959,860 1,230,971 1,144,308 86,663 W& S Distrubtion& Collection 1,090,539 454,306 339,852 114,454 W& S Accounting&Collection 299,490 124,654 145,043 (20,389) Other Requirements 1,501,241 625,505 518,236 107,269 W& S Construction 1,115,897 461,847 247,728 214,119 Total Expenditures $ 6,967,027 $ 2,897,283 $ 2,395,168 $ 502,115 1 1 II CITY OF PEARLAND, TEXAS WATER& SEWER FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Personnel $ 607,111 $ 252,945 $ 223,885 $ 29,060 Materials& Supplies 573,781 239,064 176,839 62,225 Maintenance 261,503 108,305 149,579 (41,274) Services 946,571 393,075 521,516 (128,441) Other Charges 500 205 164 41 Capital Outlay 570,394 237,377 72,324 165,053 Water Production&Wastewater' 2,959,860 1,230,971 1,144,308 86,663 Personnel 430,882 179,515 148,701 30,814 Materials& Supplies 108,073 44,994 42,593 2,401 Maintenance 58,008 24,158 26,910 (2,752) Services 24,000 9,995 17,025 (7,030) Other Charges 1,000 415 164 251 Capital Outlay 468,576 195,229 104,460 90,769 W& S Distrubtion&Collection 1,090,539 454,306 339,852 114,454 Personnel 210,446 87,665 117,703 (30,038) Materials& Supplies 8,200 3,410 2,915 495 Maintenance 10,800 4,490 3,964 526 Services 69,644 28,924 20,362 8,562 Other Charges 400 165 100 65 Capital Outlay - - - - 11 W&S Accounting& Collection 299,490 124,654 145,043 (20,389) Personnel - - - - Materials& Supplies 14,856 6,190 7,591 (1,401) Maintenance 5,500 2,290 - 2,290 Services 143,900 59,955 52,216 7,739 Debt Service 1,316,985 548,740 395,104 153,636 Other Charges 20,000 8,330 63,325 (54,995) Other Requirements 1,501,241 625,505 518,236 107,269 Personnel 398,261 165,920 150,172 15,748 Materials& Supplies 44,074 18,351 9,886 8,465 Maintenance 49,039 20,422 20,950 (528) 1 I CITY OF PEARLAND, TEXAS WATER&SEWER FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Services 37,940 14,050 22,732 (8,682) Other Charges - - 164 (164) Capital Outlay 586,583 243,104 43,824 199,280 W & S Construction 1,115,897 461,847 247,728 214,119 Total Expenditures $ 6,967,027 $ 2,897,283 $ 2,395,168 $ 502,115 II CITY OF PEARLAND, TEXAS PEARLAND ECONOMIC DEVELOPMENT CORP. SCHEDULE OF REVENUES- BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Sales tax $ 2,111,444 $ 907,539 $ 922,725 $ 15,186 Interest income 45,000 2,416 54 (2,362) Texpool 90,000 28,305 56,751 28,446 NOW account interest 7,000 2,599 11,388 8,789 Total revenue $ 2,253,444 $ 940,859 $ 990,918 $ 50,059 CITY OF PEARLAND, TEXAS PEARLAND ECONOMIC DEVELOPMENT CORP. SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 ' Annual Year To Date Year To Date Budget Budget Actual Variance Personnel $ 242,012 $ 100,820 $ 76,793 $ 24,027 Materials& supplies 8,000 3,330 1,275 2,055 Maintenance 5,250 2,180 1,182 998 Services 380,836 158,484 104,960 53,524 Other charges 3,200 1,330 3,000 (1,670) Debt service 372,000 155,000 137,205 17,795 Transfer to other fund 110,000 45,830 45,833 (3) Capital outlay 1,195,992 491,051 216,138 274,913 Total expenditures $ 2,317,290 $ 958,025 $ 586,387 $ 371,638 1 II CITY OF PEARLAND, TEXAS DEBT SERVICE FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date Budget Budget Actual Variance Debt service $ 4,086,856 $ 3,913,884 $ 3,547,374 $ (366,510) Delinquent taxes 40,000 18,750 35,190 16,440 Penalty& Interest 25,000 10,415 10,811 396 III Shadowcreek property - - - - Texpool 45,000 19,732 30,647 10,915 N 0 W account interest 8,000 4,989 11,892 6,903 Interest income - - - - Total revenue $ 4,204,856 $ 3,967,770 $ 3,635,913 $ (331,857) DEBT SERVICE FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL Period Ended February 28,2001 Annual Year To Date Year To Date 1 Budget Budget Actual Variance In city MUD#17-19 $ 4,600 $ 1,915 $ - $ 1,915 T.I.R.Z 1 & 2 50,000 20,830 - 20,830 Principal 1,680,000 700,000 1,680,000 (980,000) Interest 2,394,500 997,705 837,276 160,429 Fiscal agent fees 10,500 4,375 1,149 3,226 Issurance cost - - (3,702) 3,702 Total expenditures $ 4,139,600 $ 1,724,825 $ 2,514,723 $ (789,898) I