R2020-058 2020-04-08RESOLUTION NO. R2020-58
A Resolution of the City Council of the City of Pearland, Texas, accepting the
City's comprehensive annual financial report for fiscal year 2019 and the
accompanying independent audit as presented by the accounting firm of
Whitley Penn, LLP.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain comprehensive annual financial report for fiscal year 2019, 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 City's comprehensive annual financial report
for fiscal year 2019.
PASSED, APPROVED and ADOPTED this the 8th day of April, A.D., 2020.
TOM REID
MAYOR
ATTE :
CRY TAL ROAN, TRMC, CMC
CITY SECRETARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
Fiscal Year 2019 Audit Results
Financial Statement Audit and Federal Single Audit
Page 4 of 249
Engagement Team
Lupe Garcia, CPA
Engagement Partner
Dan Hernandez, CPA
Senior Manager
Alex Chaib J.D.
Senior Associate
Tom Pedersen, CPA
Concurring Partner
Grisleda Soto
Associate
Karla Lamboy
Associate
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Auditors’ Responsibility Under Generally
Accepted Auditing Standards
•The financial statements are the responsibility of management.
•Our audit provides reasonable, rather than absolute, assurance that
the financial statements are free of material misstatements.
•As a part of our audit, we obtained an understanding of internal
control sufficient to plan our audits and to determine the nature and
extent of testing performed.Page 6 of 249
1
4
2
3
Sufficient audit evidence
Substantive Testing
Determine if we can rely on controls and
reduce risk of material misstatement.
Internal Controls
Disclaimer, Modified, Unmodified
Opinion
Risk Assessment
Planning
The Audit Process
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Disclaimer
(No Assurance)
Modified
(Qualified or Adverse)
Unmodified
(Clean Opinion)
Types of Auditor Opinions
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Auditor’s Report on Financials (p. 1)
•Unmodified or “clean” opinion
•Highest level of assurance that can be given on a set of financial
statements
•Audit conducted in accordance with Government Auditing Standards
Page 9 of 249
Auditor’s Report on IC and Compliance
•Internal control over financial reporting
•No material weakness identified
•No significant deficiencies reported
•No instances of noncompliance material to the financial statements
were noted
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Federal Single Audit –Major Program
Total Schedule of Expenditures of Federal Awards
•$15.7 million
Drinking Water State Revolving Fund (CFDA #66.468)
•$8.8 million
Disaster Grants –Public Assistance (CFDA #97.036)
•$1.5 million
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Auditor’s Report on Major Programs
•Internal control over federal major program
•No material weakness identified
•No significant deficiencies reported
•Unmodified opinion on compliance for federal major program
•No instances of noncompliance or questioned costs were noted
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Statement of Net Position (p. 19)
Total Primary Government
(Governmental and Business-type Activities)As of September 30, 2019 As of September 30, 2018
Cash and cash equivalents $266,327,613 $242,857,247
Receivables/other 40,751,643 35,858,092
Capital assets, net 1,235,296,273 1,202,379,189
Total Assets (a)1,542,375,529 1,481,094,528
Total Deferred Outflows of Resources (b)23,692,879 18,365,661
Current liabilities 30,672,600 27,455,556
Noncurrent liabilities 731,648,878 704,921,598
Total Liabilities (c)762,321,478 732,377,154
Total Deferred Inflows of Resources (d)173,766 3,505,386
Total Net Position (e)$803,573,164 $763,577,649
Accounting formula: a + b -c -d = ePage 13 of 249
Noncurrent (Long-term) Liabilities
Total Primary Government
(Governmental and Business-type)September 30, 2019 September 30, 2018
Certificates of obligation $51,620,000 $41,750,000
Sales tax revenue bonds 1,750,000 12,845,000
General obligation bonds 269,520,000 278,175,000
Tax increment revenue bonds 83,315,000 85,180,000
Permanent improvement bonds 4,480,000 4,845,000
Water and sewer revenue bonds 232,415,000 214,705,000
Total OPEB liability 5,801,182 5,140,967
Net pension liability 30,335,139 18,055,593
Bond premiums 43,446,282 34,741,033
Other 8,966,275 9,484,005
Total $731,648,878 $704,921,598Page 14 of 249
Statement of Revenues, Expenditures, and
Changes in Fund Balance -General Fund (p. 78)
For the Year Ended
September 30, 2019 Final Budget Actual Variance
Total Revenues $77,586,727 $78,566,150 $979,423
Total Expenditures 78,945,831 76,031,677 2,914,154
Excess (Deficiency) of
Revenues Over
Expenditures (1,359,104)2,534,473 3,893,577
Other Financing Sources
(Uses), net 863,257 679,735 (183,522)
Net Change in Fund
Balance (495,847)3,214,208 3,710,055
Fund Balance –Beginning 13,987,656 13,987,656
Fund Balance –Ending $13,491,809 $17,201,864Page 15 of 249
General Fund Unassigned Fund Balance ($M)
$19.66
$16.78
$11.26
$12.41
$15.65
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Page 16 of 249
General Fund Unassigned Fund Balance (Days)
114
86
52
59
75
0
20
40
60
80
100
120
140
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
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Required Communications
•Significant Accounting Policies
•The City’s accounting policies and methods are appropriate and in accordance
with industry standards.
•Accounting Estimates
•The preparation of the financial statements requires that certain estimates
and judgments be made by management. These judgments and estimates
include:
•Allowances for doubtful accounts
•Depreciation expense
•Pension and OPEB liabilities, deferred inflows and outflows of resources, and pension
and OPEB expense
•We concluded that management has a reasonable basis for significant
judgments and estimates that impact the financial statements.Page 18 of 249
Required Communications
•Difficulties Encountered in Performing the Audit
•We encountered no difficulties in dealing with management in performing
and completing our audit
•Corrected or Uncorrected Misstatements
•There were no material misstatements that were identified by us that
required management’s correction
•Disagreements with Management
•We had no disagreements with management over the application of
accounting principles or management’s judgments about accounting
estimates.Page 19 of 249
Required Communications
•Management Representations
•We have requested certain representations from management
•Consultation with Other Accountants
•We are not aware of any situations in which management consulted with
other accountants on accounting or financial reporting matters.
•Major Issues Discussed with Management Prior to Retention
•We discussed the application of accounting principles and auditing standards,
however, our responses were not a condition to our retention.Page 20 of 249
Page 21 of 249
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CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended
September 30, 2019
Prepared by:
Finance
Department
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This Page Intentionally Left Blank
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CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
City of Pearland 2019 CAFR
Page
Introductory Section
Letter of Transmittal i
Principal Officials xiv
Organizational Chart xv
GFOA Certificate of Achievement xvi
Financial Section
Report of Independent Auditors 3
Management’s Discussion and Analysis 9
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 21
Statement of Activities 22
Fund Financial Statements:
Balance Sheet - Governmental Funds 24
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 27
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 31
Statement of Net Position - Proprietary Funds 32
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds 33
Statement of Cash Flows - Proprietary Funds 34
Notes to the Financial Statements 37
Required Supplementary Information:
General Fund - Schedule of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual 82
Notes To Required Supplementary Budget Information 83
Schedule of Changes in Net Pension Liability and Related Ratios 84
Schedule of Contributions - Texas Municipal Retirement System 85
Schedule of Changes in the Total OPEB Liability - Texas Municipal Retirement
System Supplemental Death Benefits Fund 86
Schedule of Changes in the Total OPEB Liability - City of Pearland Retiree
Health Care Plan 87
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City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS (Continued)
Financial Section (Continued) Page
Other Supplementary Information:
Combining and Individual Fund Statements and Schedules 93
Combining Balance Sheet - Non-Major Governmental Funds 94
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Non-Major Governmental Funds 95
Schedules of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual:
Debt Service Fund 102
Hotel/Motel Tax Fund 103
Court Security Fund 104
City-Wide Donations Fund 105
Court Technology Fund 106
Street Assessments 107
Park Donations Fund 108
Police Seizure Fund 109
Parks and Recreation Development Fund 110
Sidewalk Fund 111
Grant Fund 112
Traffic Impact Improvements 113
Juvenile Management Fund 114
Regional Detention Fund 115
Educational TV Fund 116
U of H Fund 117
Capital Projects Fund 118
Pearland Economic Development Corporation 119
Combining Statement of Net Position - Internal Service Funds 121
Combining Statement of Revenues, Expenses, and Changes in Net
Position - Internal Service Funds 122
Combining Statement of Cash Flows - Internal Service Funds 123
Long-Term Debt Amortization Schedules:
Combining Schedule of Governmental Activity Long-Term Debt 127
Combining Schedule of Enterprise Fund Long-Term Debt 135
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City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS (Continued)
Statistical Section (Unaudited) Page
Net Position by Component 142
Changes in Net Position 144
Fund Balances of Governmental Funds 148
Changes in Fund Balances of Governmental Funds 150
Spending and Growth Analysis 152
Assessed Value and Estimated Actual Value of Taxable Property 154
Direct and Overlapping Property Tax Rates 156
Property Tax Levies and Collections 159
Principal Property Taxpayers 160
Principal Property Taxpayers - Total Taxes 161
Taxable Sales by Category 164
Outstanding Debt by Type 166
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per
Capita 169
Direct and Overlapping Governmental Activities Debt 170
Pledged Revenue Coverage 172
Demographic and Economic Statistics 173
Principal Employers 175
Full-time Equivalent City Government Employees by Function/Program 176
Operating Indicators by Function/Program 178
Capital Asset Statistics by Function/Program 184
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City of Pearland 2019 CAFR
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City of Pearland 2019 CAFR
Introductory Section
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City of Pearland 2019 CAFR
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City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Tel: 281.652.1600
pearlandtx.gov
March 23, 2020
Honorable Mayor, Members
of City Council, and Citizens of the
City of Pearland, Texas USA
The Comprehensive Annual Financial Report (CAFR) of the City of Pearland, Texas (the “City”)
for the fiscal year ending September 30, 2019, is hereby submitted as mandated by both local
and state statutes. These ordinances and statutes require that the City issue an annual report on
its financial position and activity and that an independent firm of certified public accountants audit
this report.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Whitley Penn, LLP, Certified Public Accountants, issued an unmodified (or “clean”) opinion on the
City of Pearland’s financial statements for the year ending September 30, 2019. The independent
auditor’s report is located at the front of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. MD&A complements this letter of transmittal and should be read in conjunction with
it.
PROFILE OF THE GOVERNMENT
The City of Pearland, Texas was incorporated in December 1959 and adopted a Home Rule
Charter on February 6, 1971 and is a home-rule City operating under a Council-Manager form of
government. Policy-making and legislative authority are vested in a governing Council consisting
of the mayor and seven other members.
The Mayor and Council members are elected at-large, and each of them hold office for a period
of three consecutive years. Council members are limited to two full consecutive terms in office,
and there is no term limitation on the office held by the Mayor. The City Manager is appointed by
Council and is responsible for implementation of Council priorities and day-to-day management
of all City operations. The City is located across the northern end of Brazoria County and shares
a common border with Houston, Texas to the north. The City extends into Fort Bend and Harris
counties.
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The City of Pearland, encompassing 48.82 square miles. The city is long east to west,
Broadway/FM 518 stretches across the community from Almeda Road/FM 521 on the western
city limit to the eastern limit border with Friendswood. That stretch of Broadway/FM 518 is 13.94
miles across. The geography of the city challenges City delivery of services. The community
moreover is fast-growing additional population with its multi-faceted attractiveness, increasing
from 18,000 residents in 1990 to 125,198 residents estimated as of January 2018 with an
estimated growth of an additional 58,000 residents by 2032.
A full range of municipal services is provided by the City of Pearland including public safety (full-
time professional police and fire); solid waste; water and wastewater utilities; public
improvements; repair and maintenance of infrastructure; recreational and community activities;
convention and visitor services; and general administrative services. The City provides planning
for future land use, traffic control, building codes, and health inspections, and plans for new
infrastructure and rehabilitation of infrastructure to meet the needs of the citizens today, as well
as tomorrow. The City is authorized to issue debt, subject to certain limitations, for the purpose of
financing its capital projects and the City is empowered to levy a property tax on real property
within its boundaries.
Activities of the general, debt service, water and sewer, solid waste, capital project funds, and
special revenue funds such as hotel/motel tax are included in the City’s annual appropriated
budget. Capital project funds are budgeted for project length. The legal level of control for each
budget is at the fund level, which is to say that total expenditures for each fund should not exceed
total budgeted expenditures for that fund. The City Manager is authorized to transfer budgeted
amounts within and among departments. The City Council must approve any budget amendment
that increases appropriations by fund. The City amends the budget at the end of each fiscal year
to reflect current year projections for revenues and expenditures/expenses.
As an independent political subdivision of the State of Texas, the City is considered a primary
government. Pursuant to standards established by the Governmental Accounting Standards
Board (GASB), the City also reports for all funds for which the City, as the primary government,
is financially accountable. As such, this report includes financial activities of three component
units as follows: The Pearland Economic Development Corporation was created by the City in
1995 under the Texas Development Corporation Act of 1979 to promote, assist, and enhance
economic and related development activities on behalf of the City.
The Tax Increment Reinvestment Zone (TIRZ #2) was created in 1998 for the purposes of
development and redevelopment in the Zone Area, better known as Shadow Creek Ranch. The
City participates in the Zone by contributing a portion of tax increments produced in the Zone to
the Tax Increment Fund. The Development Authority of Pearland was created in 2004 to provide
financing for the development of TRIZ #2. All these component units are considered blended
component units and have been included as major funds in the Governmental Funds.
ECONOMIC CONDITIONS
Local Economy
Located 20 minutes away from downtown Houston, Texas, the nation’s second largest seaport,
the world-renowned Texas Medical Center, Port of Houston, Port Freeport, major chemical
refineries in south Brazoria County, and NASA-Johnson Space Center, Pearland is a premier
location for residential and commercial growth. The Pearland economy and context is inexorably
linked with the Houston metropolitan area. With available land, business facilities, a sound
infrastructure, and a diverse workforce supported by educational programs, Pearland’s growth
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has been consistent and will continue to be sustained over time with continued residential and
commercial development.
Energy, healthcare and life sciences, and manufacturing have been key areas of interest for
Pearland for over ten years, combined with a mix of reinforcing land uses, urban planning, key
entertainment and cultural attractions, public spaces, and walkability and connectivity will provide
for livable sustainable developments.
As noted later in the Economic Development section, Pearland Economic Development
Corporation (PEDC) and the City worked on several major projects in 2018, including
Endress+Hauser and Energy Rental Solutions.
The total of all new, non-residential construction permitted during the 2019 calendar year was
approximately $220 million, an 18% decrease in value from 2018’s $268 million. New single-family
housing permits totaled 644, and there were no multi-family housing permits issued in 2019.
During FY 2019, the building permit revenues increased by $256,000 or 6.3% as compared to FY
2018 revenue collections. In addition, revenues from electrical, plumbing & gas, and mechanical
permits combined decreased by $5,365, from $723,215 in FY 2018 to $717,850 in FY 2019, a
less than 1% decrease. The building plan check fee revenues increased by $18,441, from
$998,724 to $1,017,165, a 2% increase for the fiscal year. The total reported valuation of all
commercial projects for 2019 is $144,535,169. In fiscal year 2019, 658 single-family home permits
were issued, and in the previous fiscal year 817 were issued. T his is a 19.5% decrease, which is
equivalent to the decrease from FY 2017 to FY 2018. In May 2019, Texas state law mandated
that we do not request construction valuation on residential building permits, so we cannot report
any change in valuation from FY 2018 to FY2019.
Pearland is a regional shopping destination and the economy has grown since the Great
Recession. For prior FY 19, sales tax growth moderated. As such, the City projected a 1.0%
growth in sales tax for fiscal year 2020. The City’s sales tax for fiscal year 2019 totaled $33.4
million, a decrease of $362,481 or 1% under fiscal year 2018. Of the $33.5 million, $22.4 million
went to the City’s General Fund for operations and $11 million went to the City’s Economic
Development Corporation for specific economic development programs and activities. The City’s
General Fund is 26% funded by sales tax, an elastic revenue stream that will fluctuate with the
economy. As such, the City closely monitors sales tax and the economy.
Pearland’s unemployment rate was 2.4% in May 2019, down from 3.4 % in 2018. That rate
compared to rate for the same time periods in Brazoria County of 3.4% and 4.5%, respectively.
Regional and State of Texas Economy
Houston is the world’s energy capital, capital of an oil and gas industry that is in constant flux. At
this writing, in the midst of the COVID-19 public health emergency and pandemic, that instability
is in high gear. Even prior to COVID-19. The Greater Houston Partnership (GHP) was reporting
that “The closing spot price for a barrel of West Texas Intermediate (WTI), the U.S. benchmark
for light, sweet crude, averaged $50.83 per barrel during the second week of February ’20, down
5.1 percent from $53.53 for the same period in ’19, according to the U.S. Energy Information
Administration. A mild winter season and the spreading of coronavirus to several other countries
continue exerting downward pressures on global demand for oil and natural gas. And while oil
prices rose following OPEC’s agreement to production cuts last December, the lack of consensus
on a second round of cuts led to a price collapse.”
From GHP, it is reported that “Metro Houston created 88,000 jobs, a 2.8 percent increase, in the
12 months ending December ’19, according to data released today by the Texas Workforce
Commission (TWC). The level of reported job growth is not supported by other economic
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indicators.” In their annual employment forecast issued December 2019, GHP said that, “The
situation Houston faces today is eerily similar to what it faced after the 1980s bust—an
oversaturated real estate market, a bleak outlook for oil and gas, and the need for innovation to
drive the economy forward. It took the better part of a decade for real estate to recover, and longer
than that for oil and gas, but Houston recouped all the 221,000 jobs lost over five years (1982 –
1987) in just 39 months. Since then, the region has added 3.4 million residents, 1.5 million jobs,
and more than $350 billion to regional GDP. And that’s after enduring another five economic
downturns. Granted, the outlook for oil and gas remains bleak today. And developers need to
stop erecting new warehouses and apartments. But Houston continues to create jobs. As of
October ’19, Houston’s employment stood at 3.2 million, a record high for the region.”
The Houston Area Association of Realtors, in numbers reported by GHP, reflect across the entire
metro area, 102,709 total home sales in 2019 (inclusive of single-family, townhomes, duplexes,
condos and residential lots). There were 87,632 single-family home sales across that same
geography. For the prior 2018, there were 98,395 and 82,229 sold respectively.
Long-Term Financial Planning
The City adopts a one-year operating budget, including a five-year capital improvement program
(CIP). Even though a one-year budget is adopted, the budget implements strategies, both
financial and operational, to meet existing challenges and to plan for the future.
The City’s adopted (August 12, 2019) Five-Year CIP for fiscal year 2020 through 2024 totals
$652.9 million. The large and varying CIP for public investments of drainage, parks, facilities,
streets, water, and wastewater positions City infrastructure for serving the high-growth that’s here
and what will come in the future.
The CIP finalizes the $162 million bond program approved by the voters in May 2007 and the new
voter-approved May 2019 bond issue of $80 million.
Funding from projects is supported by non-debt sources ($16.7 million), leveraged outside funds
($89.1 million), tax-supported debt ($156.6 million), and water/sewer supported enterprise fund
debt repaid by user fees ($390.5 million). Property tax-supported Debt to taxable assessed
valuation has been decreasing and remains below 5% at about 3%.
For non-enterprise general obligations, the Debt Service Fund can meet current and future
obligations based on the City’s Multi-Year Forecast and Five-Year CIP where needed. Issuance
of debt is factored into funding sources, based on the Five-Year CIP. All new debt issued is
assumed to be issued with a 20-year maturity level principal payment. The City’s property tax rate
for the FY 20 budget is $0.4344, of which $0.3675 cents is for actual debt service and $0.0675
cents is for rebates to in-city MUD districts but considered as debt service component. The Debt
Service component, inclusive of in-City MUD district rebates, for the prior FY 19 was $0.4300.
The City completes a Water/Sewer Cost of Service Rate Study annually for the forecast. The
study is built around the Five-Year CIP, operating budget, and future needs. Due to funds on hand
for pay-as-you go capital improvements, the rates for FY 2017 and FY 2018 increased moderately
each fiscal year. FY 2018 experienced a 10% revenue increase in order to fund the additional
costs for labor, chemicals, system upgrades, expansion, and maintenance. For FY 2020, the
water and sewer rates have been adjusted up slightly (about 1.6%) to bring revenue necessary
for the system. The City’s utility system continues to be self-supporting and financially sound.
Relevant Financial Policies/Guidelines
Financial Policies guide the development and implementation of the budget, are a framework for
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fiscal decision making, and ensure financial resources are available to meet the current and future
needs of the City. The policy statements address areas of reporting and auditing, budgetin g,
revenues, capital improvements, debt, and grants to name a few. Some of the most relevant
policies are:
• Recurring revenues fund recurring expenditures/expenses
• Non-recurring funds fund non-recurring expenditures/expenses
• General Fund Operating Reserves should be a minimum of two months of
operations
• Water and Wastewater Operating Reserves shall strive to be maintained at 25%
of operations and a 1.4 bond coverage for Water and Sewer debt service
• Budget revenues on a conservative basis
• Fund existing services at current service levels
• Enterprise Funds must be self-supporting
• Leverage City dollars by seeking outside funding sources
• Maintain stable property tax rates
Major Initiatives
The City Council, staff, and community share a vision that combines progress and innovation with
prudent controls to shape Pearland’s future, as it becomes one of the largest suburbs in the
Houston area. Some of the major initiatives are as follows:
Public Safety
Personal safety is a key means of both attracting new residents and retaining existing ones in
Pearland; if citizens don’t feel safe, they will not come nor will they stay. The Pearland Police
Department continues to focus on the strategic priority of Safe Community.
In order to operate more efficiently, the Department employs a data-driven approach to policing.
Examples of this are the implementation of the Special Investigation Unit investigation unit within
the Criminal Investigations Division to quickly address emerging criminal trends, continued efforts
to thwart crime and crashes in the identified Data Driven Approaches to Crime and Traffic Safety
(DDACTS) zones, and crime analysis updates which provide mapping and data specific to the
different police beats within the City of Pearland.
The Pearland Police Department encourages public involvement through the programs offered
by members of the Community Outreach unit. This includes the Department’s flagship program,
the Citizens’ Police Academy. The alumni association for that program provided a generous
donation which, along with funds from narcotic seizures and the City of Pearland, facilitated the
purchase of a mobile command post. This mobile unit will enable on-site command capacity for
the City of Pearland during emergency situations and large-scale public events.
With the support of IT staff, the Pearland Police Department continues to be a leader in innovative
policing technology. A prime example is the Unmanned Aircraft System (UAS), aka drone, unit
that provides support to police department personnel, other police agencies, and other COP
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Departments. In addition to UAS training, the course catalog offered by the Police Department
has solidified Pearland as a regional hub for law enforcement training.
Fire Station 1, relocated on the northeast corner of McHard and Old Alvin Road, opened in
September 2019 to provide quicker response times. The new station totals approximately 9,500
sq. ft., while housing one fire engine and one ambulance.
Fire Station 8, to be located in the master-planned community of Shadow Creek Ranch, at the
northwest corner of Shadow Creek Parkway and Reflection Bay Drive, is anticipated to be
completed early summer 2020. This station will be approximately 18,000 sq. ft. and initially house
one fire engine, one ladder truck, and one ambulance. A second engine will be added in the future
based on service demand and available funding. During FY21 an additional 26 full-time fire
fighters will be onboarded for staffing. The City of Pearland was successfully awarded a FEMA
SAFER grant, which will allow enough funding for 12 new firefighters to be hired.
Fire Station 4 (located on Freedom Drive east of Cullen) will be relocated immediately adjacent
to the existing fire station, which was built in 2001 as a volunteer station. Modifications were
originally made in 2008 to accommodate some full-time staff. This new fire station, which is
currently going through design schematics, will have modern health and safety features, as well
as improved technology to assist with fire fighter safety, productivity, efficiency and effective
workflow. No additional staffing will be required to fully operate this station. New Fire Station 4
will be built in conjunction with a new Animal Shelter, and is expected to complete construction in
October 2021.
In May of 2019, Pearland voters approved a general obligation bond of $1.3 million for Phase I of
the Fire Training Field Improvement Plan to construct a two-story live fire training building. This
building will be located on the existing Fire Training Field behind the David L. Smith Fire
Administration Building on Veterans Drive, and is expected to be completed by May 2021.
Due primarily to the addition of fire stations and operations staffing totaling 131 full-time fire
fighters, the 90th percentile city-wide response times for emergencies have been reduced by over
two minutes in the last four years. Our Emergency Management Program continues to grow,
finalizing the city’s Hazard Mitigation Plan and implementing many lessons and strategies learned
from Hurricane Harvey. Significant Community Risk Reduction efforts ha ve resulted in the
removal of numerous dilapidated/dangerous structures, public-private cooperation for
subdivisions with residential sprinklers, and semi-annual inspections of all establishments
providing food service. In addition, the Community Outreach division has aided more than 20,000
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Pearland residents by completing community public safety education such as CPR certifications,
car seat inspections, and smoke alarm testing.
90th percentile city-wide response times for Fire emergencies have been reduced by over two
minutes in the last four years. The achievement is due primarily to the addition of Fire Stations
and staffing of operations that will see a total of 131 full-time fire fighters by fall 2020. A strong
emergency management program continues to grow finalizing the city’s Hazard Mitigation Plan
and implementing lessons learned from Hurricane Harvey. Community Risk Reduction efforts
have resulted in the removal of dilapidated dangerous structures, public-private cooperation for
subdivisions with residential sprinklers, twice annual inspections of all establishments providing
food service, and community public safety education of more than 20,000, to name a few.
Economic Development
The Pearland Economic Development Corporation (PEDC) is a non-profit Type B Corporation
under the Texas Development Corporation Act and is primarily funded by a half-cent sales tax in
the City of Pearland. PEDC is committed to enhancing the community’s economic vitality through
the attraction, retention and expansion of primary employers. PEDC works to ensure Pearland’s
business climate and built environment strongly support these efforts by focusing on aesthetics,
infrastructure, quality of life, image, workforce and quality development and redevelopment of key
Pearland districts and corridors.
PEDC works with the City to generally promote the City and to utilize various tools such as tax
abatement and the authority granted the City under Chapter 380 of the Local Government Code
to encourage new jobs and investment in the community.
The following highlights a few of PEDC’s Fiscal Year 18-19 attraction and retention projects.
Endress+Hauser, a leader in the field of measurement technology for industrial process
engineering, broke ground on its new Gulf Coast Regional Campus in March 2019. The Swiss-
based company manufactures instrumentation and devices that provide solutions to more than
100,000 customers worldwide. PEDC assisted with the project and began working with the
company on its relocation in early 2018. The 100,000-square-foot facility will be located on a 17-
acre site at the southeast corner of Beltway 8 and Kirby Drive. It will include an area for calibration
and repair, as well as feature office and training space. The new facility will be home to
approximately 110 employees when it opens.
Dover Precision Components, an integrated provider of performance-critical solutions for rotating
and reciprocating machinery, broke ground on a new innovation lab in September 2019. The
nearly 12,000-square-foot building is being constructed directly north of the company’s Pearland
operations facility in the Lower Kirby District. PEDC recruited Dover to Pearland in 2013 and the
company constructed a 150,000-square-foot manufacturing and operations center on a 14-acre
site on the corner of Spectrum Boulevard and Hooper Road. The new innovation lab, scheduled
for completion in the second quarter of 2020, will house test rigs, allowing R&D engineers to
develop new application solutions and conduct product performance testing under demanding
operating conditions.
Lonza opened the world’s largest dedicated gene and cell therapy manufacturing facility in
Pearland's Lower Kirby District in April 2018, and the 300,000-square-foot facility continues to
grow. The company had multiple expansions in 2019, including the construction of additional
parking and laboratory space. The new laboratory encompasses 10,000 square feet and will be
used to process new products and will also allow Lonza to employ more technicians. Construction
also began on additional clean rooms and is in the planning stages for another six to be completed
in 2020. In addition, Lonza also acquired a 19-acre parcel of land south of the current facility for
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possible future growth. Lonza currently employs 350 at its Pearland facility.
Energy Rental Solutions (ERS), a Caterpillar dealer dedicated to the specialty rental business,
celebrated the groundbreaking of its new headquarters in Pearland in March 2019. The 40,000-
square-foot building includes office and warehouse space and is located on a 12-acre site on Rice
Drier Road and State Highway 35. The facility was completed in late 2019 and is home to
approximately 55 employees, including executive management, sales, operations, administrative,
service technicians, and warehouse personnel. PEDC and city officials began working with ERS
in 2017 on the project. The site ERS selected is part of the 18-acre Rice Drier Commerce Park,
a development located in the area identified as Business Park North in the State Highway 35
Redevelopment Strategy. PEDC and the city partnered with the developer to improve drainage in
the area, and PEDC is currently funding the reconstruction of Rice Drier Road.
As we entered the final year of the Pearland 20/20 strategic plan, PEDC, along with local partners
in government, education, healthcare and business, continued to make progress on many of the
plan’s key initiatives. The long-term strategic community and economic development plan that
was created in 2012 incorporates nine strategies to ensure a shared vision for the community’s
future growth and an action plan to achieve it. The plan’s steering committee completed a mid-
course update to the plan in 2015 to get a big-picture sense of key successes and challenges.
The nine strategies are 1) Economic Development Marketing, 2) Mobility, 3) Corridors and
Character Districts, 4) Recreation and Culture, 5) Beautification and Gateways, 6) Lower Kirby
District, 7) Multi-Use Event Center, 8) Education and Workforce, and 9) Internal Marketing.
One of the City’s prime areas for development, the Lower Kirby District, a 1,200 acre mixed -use
development located at Hwy 288 and Beltway 8, has infrastructure needs that make it more
difficult to develop. The PEDC continually works with area Municipal Management Districts,
developers, and the City on the development of regional detention, infrastructure projects, corridor
enhancements, and the installation of underground electricity that will serve developable sites
within the District. Construction began on the extension of South Spectrum Boulevard in April
2019. The roadway was extended to Kirby Drive from its existing terminus just west of 288 and is
scheduled for completion in early 2020. The project is being implemented and funded by LKPMD
and PMMD1 with partial funds from America Modern Green and PEDC. America Modern Green
is developing the Ivy District at the southwest corner of South Spectrum Boulevard and the SH
288 frontage road in the Lower Kirby District. The planned development is pr oposed to include
offices, a continuing care retirement center, retail, condominiums, townhomes, and apartments.
Infrastructure work was completed in 2019, including water and sewer lines, as well as road and
storm sewer construction. The 2020 construction phase includes the public park and amenities
surrounding the lake, including a trail, which will serve active and passive recreation needs of
those who live, work, or visit within the District, and a pedestrian bridge across Clear Creek. PEDC
and the developer are partnering to finance the public park improvements. Development of
buildings should begin in 2020.
All of these improvements continue to transform the 1,200-acre Lower Kirby District into
Pearland's most diverse, mixed-use employment, residential and entertainment part of the city.
Another key initiative outlined in the Pearland 20/20 Community Strategic Plan is to optimize the
development potential of Pearland’s principal commercial corridors. The State Highway 35
Redevelopment Strategy was developed in 2016 to build upon the Strategic Plan suggestions
and provide the “big picture” strategic actions that are needed to encourage more investment in
the corridor. In October 2019, construction was completed on the SH 35 Entryway and Corridor
Enhancements project. Part of the SH 35 Redevelopment Strategy that was derived from the
20/20 Community Strategic Plan, it focused on enhancing the entryway at Beltway 8 by placing
two Pearland entryway monument signs near Clear Creek, planting canopy trees along the
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medians, enhancing pedestrian areas at major intersections, and framing the roadway with
smaller street trees along the right-of-way. The project, which provided the “big picture” actions
needed to encourage more investment in the corridor, was funded and will be maintained by
PEDC.
In mid-2019, PEDC began the creation of a Broadway Corridor Development Plan. A key strategy
in the Pearland 20/20 Strategic Plan was to optimize the development potential of Pearland’s
principal commercial corridors. Creation of a FM 518/Broadway master development plan was
the highest ranked priority by the steering committee. The plan will focus on the 6.2-mile segment
of the corridor from SH 288 to SH 35, which will be reconstructed and widened by the Texas
Department of Transportation (TXDOT). The design phase for the reconstruction will commence
in early 2020 once an environmental study is completed. The PEDC’s plan will be on facilitating
and planning for the impact of the proposed reconstruction, including mobility and effect on
existing businesses. The Broadway Corridor Development Plan is scheduled f or completion in
early 2020.
With construction of the managed toll
lanes along the 288-corridor nearing
completion in both Harris and Brazoria
Counties, PEDC, the City, and Pearland
Municipal Management District No. 2
(PMMD2) continue to implement the 288
Corridor Master Improvements Plan. In
2019, the PEDC board approved
agreements for median enhancements
and plant procurement along the
corridor. Additional aesthetic
improvements will be added after the
entire toll lane construction is complete. These include enhanced landscaping, lighting, artistic
sculptures, detention ponds with large fountains, irrigation, and gateway signage. All
improvements are scheduled for completion in 2021.
In 2019, the Pearland Economic Development Corporation (PEDC), along with local partners in
government, education, healthcare and business embarked on a collaborative community and
economic development strategic planning process that will make the community a more
prosperous, successful, and vibrant place to live, work, and do business. This plan builds upon
the Pearland 20/20 strategy, mentioned above.
The resulting Pearland Prosperity Strategic Plan two Community Goals that broadly identify the
desired outcomes of Pearland’s holistic economic development effort. These Goals are:
Economic growth and diversification: Provide opportunities for residents to prosper and
enhance Pearland’s fiscal sustainability through a holistic approach to economic
development
A community of choice in Greater Houston: Ensure Pearland’s quality of life and quality of
place continue to attract and retain diverse individuals and families
These goals can be pursued through a number of Strategic Initiatives grouped into seven high-
level Focus Areas. Each Initiative corresponds to an action, program, effort, or investment that
can help move Pearland toward its desired future. The Focus Areas provide organizational clarity
and readily communicate to a wide variety of audiences the issues that Pearland will seek to
address through collective action.
These Focus Areas are: (1) Business Development, (2) Business Formation and Early-Stage
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Growth, (3) Site Development, (4) Corridors, (5) Infrastructure and Mobility, (6) Quality of Life and
Quality of Place, and (7) Workforce and Talent.
PEDC continues to promote Pearland and is working with a myriad of companies on future
relocations and site visits as well as working with existing businesses on future expansions.
Convention and Visitor’s Bureau
The City’s Convention and Visitors Bureau (CVB), funded by hotel occupancy taxes, also focuses
on economic development through tourism and attracting leisure and business visitors into the
City of Pearland. In late 2012, the City Council authorized the creation of a city department for the
Convention and Visitors Bureau, service that had been previously contracted out. In fiscal year
2013, an Executive Director and staff were hired. The proximity of Pearland in the Gulf Coast
Region of Texas, makes Pearland a positive destination for visitors.
Land Use Plan/Annexation
Land use planning allows a community to accommodate its projected growth in a manner that
preserves its history and culture, as well enhance the overall quality of life for the current and
future residents and businesses. Planning allows a city a greater measure of control of its future
rather than simply reacting to change.
The City of Pearland uses its 2015 Comprehensive Plan as its primary planning policy document
to guide and balance future development, including infill and redevelopment, and community
enhancement efforts of the city. Pearland has evolved from a rural community, to a busting
suburb, fully integrated with the Houston metropolitan area. Through the Comprehensive Plan,
and associated implementation regulations such as zoning, Pearland continues to prepare for the
growth to come by focusing on the identifying forthcoming needs and setting concrete plans in
place to continue to manage this growth.
In 2019, the Texas State Legislature curtailed municipalities’ abilities to proactively annex; long
used as a tool to assist in managing growth. However, with Pearland’s water and wastewater
capacity, combined with its public safety and other services, Pearland has seen increased interest
in voluntary annexation petitions as property owners and developers seek to partner for both
party’s success.
Capital Improvement Projects and Planning
With continued residential and commercial development, and to plan the need to build new
infrastructure and maintain existing infrastructure is a priority and will be implemented through an
aggressive capital improvement program. The City’s adopted (August 12, 2019) Five-Year CIP
2020–2024 totals $652.9 million. Projects include drainage ($30.0 million), streets ($129.1
million), facilities ($82.9 million), parks ($23.5 million), water (188.2 million) and wastewater
($199.2 million).
Major drainage projects include work in West Lea, Willowcrest, Mimosa Acres, and Piper Road.
Major street projects include McHard Road Extension (Mykawa Road to Cullen Pkwy), Mykawa
Road Widening (BW 8 to FM 518), Broadway and Dixie Farm intersection, Bailey Road Expansion
(Veterans Drive to Main Street), and neighborhood street reconstructions.
Facility projects include Sheri D. Coleman Animal Services Center, Shadow Creek Public Library,
and Orange Street Service Center Phase 2.
Parks projects include Clear Creek Trail and Shadow Creek Ranch Park Phase II.
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Major projects for water improvements include the Surface Water Plant Phase 1 (10 MGD),
Transite Pipe Waterline Replacement Program, and Ground Storage Tank Rehabilitation.
Wastewater projects include Barry Rose Water Reclamation Facility Expansion, JHEC Water
Reclamation Facility Expansion, Longwood Water Reclamation Facility decommissioning,
Sanitary sewer rehabilitation, and Southdown Regional Lift Station & Force main.
Transportation Improvements and Strategic Planning
Charged with planning, establishing, and maintaining an effective transportation system, the City
of Pearland is involved in numerous activities to face this challenge. The City is involved in
regional efforts for long-range transportation planning and funding. The Mayor is the Secretary
for H-GAC’s Transportation Policy Council (TPC), with the Deputy City Manager serving as an
alternate. The Assistant City Manager is the Chair of the Transportation Advisory Committee
(TAC), a sub-committee of the TPC, a member of the Transportation Improvement Program (TIP)
Subcommittee, and a member the Regional Transportation Plan (RTP) Subcommittee.
The prior TIP calls provided major funding for ongoing and upcoming projects in and around
Pearland as depicted below.
HGAC Transportation Improvement 2021‐2024 Projects inventory for public comment
Project
Project Sponsor
Project Limits
City/County
Funds
Federal/State
Funds
Total Project
Estimate
Projected
Letting Date
SH288/FM518 Overpass Brazoria County Overpass Only $ 1,904,800 $ 7,619,200 $ 9,524,000 2016
FM518/SH288 Intersection Brazoria County Intersection Only $ 2,800,200 $ 11,200,800 $ 14,001,000 2016
CR101 Brazoria County FM1128 to CR90 $ 3,412,400 $ 13,649,600 $ 17,062,000 2017
Hughes Ranch Road City of Pearland Smith Ranch to Cullen $ 8,455,058 $ 15,229,942 $ 23,685,000 2018
Green Tee Terrace Trail City of Pearland Hughes Rd to FM518 $ 1,688,568 $ 3,275,150 $ 4,963,718 2018
Shadow Creek Ranch Trail City of Pearland Nature Park to Kirby Dr $ 823,760 $ 1,492,366 $ 2,316,126 2018
McHard Road City of Pearland Mykawa to Cullen $ 19,403,969 $ 32,580,531 $ 51,984,500 2020
Mykawa Road City of Pearland FM518 to BW8 $ 13,330,623 $ 31,641,226 $ 44,971,849 2021
Safe Routes to School City of Pearland Various $ 1,208,400 $ 2,553,600 $ 3,762,000 2021
Smith Ranch Road City of Pearland Hughes Ranch Rd to FM518 $ 4,391,000 $ 3,899,591 $ 8,290,591 2022
Clear Creek Trail City of Pearland Hughes Rd to U of H $ 4,115,872 $ 6,684,128 $ 10,800,000 2022
CR59 Brazoria County Kirby to Kingsley $ 1,954,000 $ 7,816,000 $ 9,770,000 2023
CR58 Brazoria County Savannah Pkwy to CR48 $ 1,223,200 $ 4,892,800 $ 6,116,000 2023
FM521 Fort Bend County FM2234 to SH6 $ 15,045,400 $ 60,181,600 $ 75,227,000 2024
Total $ 79,757,249 $ 202,716,535 $ 282,473,784
18‐Mar‐20
With the growth in population along the Highway 288 corridor and the number of Pearland
residents that rely on Hwy 288 to commute to Houston and the Texas Medical Center, the City
along with Brazoria County have been meeting and working with the Texas Department of
Transportation to provide traffic relief on the corridor through managed toll lanes. Harris County
began construction in 2017 on the four new toll lanes on Texas 288 north of the Brazoria -Harris
County line to the Texas Medical Center. Brazoria County partnered with Texas Department of
Transportation (TxDOT) to continue the managed toll lanes from the county line south to County
Road 58. The construction of the Brazoria County project for the new four managed toll lanes
began construction in 2018.
Brazoria County secured TIP funds to reconstruct the SH288 overpass at FM518, widen FM518
under SH288 and reconstruct associated frontage road approaches to the intersection, which will
assist in relieving congestion issues at the City’s busiest intersection. The TIP funds will provide
80% of the funds and the Texas Department of Transportation (TxDOT) is providing the 20%
matching funds. This project is in currently under construction with the toll lane project.
The Gulf Coast Center operates a transportation program known as Connect Transit. Connect
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Transit provides “curb cab” service to Pearland. Services are shared ride services with pick -up
and delivery from curb to curb by reservation. The City f unds approximately $20,000 for this
service annually to its citizens meeting the eligibility requirements; seniors, person with
disabilities, or low-income. This is a way to provide those needing transportation to grocery stores,
doctor visits, etc.
Fiscal Responsibility and Sustainability
Fiscal sustainability can be defined as “the extent to which patterns of Government spending do
not undermine the capability of the Government to continue to spend to achieve its public
purposes.” City Council takes a proactive stance in ensuring the fiscal health and sustainability of
the City. Council adopted a set of Financial Management Policy Statements and receives
quarterly Finance “Snapshot” presentations, which includes economic indicators. The City also
prepares a Five-Year Forecast for the City’s major funds to see how the spending decisions made
today affect the future as well as to identify any issues/concerns that are forthcoming and to put
strategies in place today to address those issues/concerns for the future.
Again, as of this writing, the COVID-19 pandemic emergency leaves much uncertainty. The
relatively slow, but healthy, local economy prior to this date will aid in moderating the most severe
parts of the downturn. Local Pearland sales taxes before March 2020 were running about 1%
growth over the prior year.
Property Tax revenue is projected to maintain the strong levels that have developed. Property
taxes provide a timing buffer from the standpoint that the FY 20 budget relies upon values
determined by the three county appraisal districts as of 1/1/2019. Likewise values as of 1/1/2020
will provide the General Fund and Debt Service Fund revenues for FY 21. All of those property
values were well before the prevalence of COVID-19 and the likely economic downturn
associated. Looking ahead, property values as of 1/1/21 will not come into play until the City’s FY
22.
While about half-way into FY 20, the City is already beginning to prepare for the 2021 budget
process and up-coming forecast with the same goal of being fiscally responsible to our citizens.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for the Excellence in Financial Reporting to the City of Pearland,
Texas, for its Comprehensive Annual Financial Report for the year ended September 30, 2018.
This was the 42nd consecutive year that the City has received this prestigious award. To be
awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report. The City’s report satisfies both
generally accepted principles and applicable legal requirements. A Certificate of Achievement is
valid for a period of one year only. City staff believe that our current comprehensive annual
financial report continues to meet the Certificate of Achievement Program’s requirements, and we
are submitting it to GFOA to determine its eligibility for another certificate.
In 2018, the Government Treasurers’ Organization of Texas (GTOT) first awarded the Certificate
of Distinction to the City of Pearland for its Investment Policy. The certification is good f or a two-
year period ending in 2020. The City of Pearland received its Certificate of Investment Policy
award for developing an investment policy that meets the requirements of the Public Funds
Investment Act and standards for prudent public investing established by the Government
Treasurers’ Organization of Texas.
The City has also received the GFOA’s Distinguished Budget Presentation Award for its annual
budget document. In order to qualify for the Distinguished Budget Presentation Award, the
xii City of Pearland 2019 CAFR
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government’s budget document had to be judged proficient as a policy document, a financial plan,
an operations guide, and a communications device.
The preparation of this report was accomplished with the dedicated service of the Accounting staff
of the Finance Department. We express our sincere appreciation to these individuals who have
continually demonstrated the core beliefs of the City and who assisted and contributed to the
preparation of this report. We also thank the Mayor and members of the City Council for their
support in planning and conducting the financial operations of the City in a responsible manner.
Respectfully submitted,
Clay J. Pearson, City Manager Jon Branson, Deputy City Manager
Cynthia Pearson, Director of Finance Rhonda Daugherty, Assistant Director of Finance
xiii City of Pearland 2019 CAFR
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14 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
PRINCIPAL OFFICIALS
As of September 30, 2019
Elected Officials Position
Term
Expires
May
Tom Reid Mayor 2020
J. David Little Mayor Pro Tem 2022
Luke Orlando Councilmember - Position 1 2022
Tony Carbone Councilmember - Position 2 2021
Gary Moore Councilmember - Position 3 2020
Adrian Hernandez Councilmember - Position 4 2021
Trent Perez Councilmember - Position 5 2022
Woody Owens Councilmember - Position 7 2020
Appointed Officials Position
Clay Pearson City Manager
Darrin Coker City Attorney
Letitia Farnie Municipal Court Judge
City Management Position
Jon Branson
Trent Epperson
Deputy City Manager
Assistant City Manager
Matt Buchanan PEDC President
Cynthia Pearson Director of Finance
Crystal Roan City Secretary
Clarence Wittwer Director of Public Works
Michelle Graham
Daniel McGhinnis
Director of Human Resources
Chief Information Officer
Johnny Spires Police Chief
Chris Orlea Director of Parks and Recreation
Vance Riley Fire Chief
John McDonald Director of Community Development
Vacant Executive Director, CVB
Joshua Lee
Jennifer Huhn
Robert Upton
Director of Communications
Municipal Court Administrator
Director of Engineering and Capital Projects
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15 City of Pearland 2019 CAFR
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16 City of Pearland 2019 CAFR
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1 City of Pearland 2019 CAFR
Financial Section
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2 City of Pearland 2019 CAFR
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3 City of Pearland 2019 CAFR
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
REPORT OF INDEPENDENT AUDITORS
To the Honorable Mayor and
Members of the City Council
City of Pearland, Texas
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of City of Pearland,
Texas (the “City”) as of and for the year ended September 30, 2019, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as lis ted in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
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4 City of Pearland 2019 CAFR
To the Honorable Mayor and
Members of the City Council
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund informat ion of the City, as of September 30, 2019, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 9 through 18, budgetary comparison information on
pages 82 through 83, and pension system supplementary information and other post-employment
benefit supplementary information on page 84 through 87 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining and
individual fund statements and schedules, other supplementary information, budgetary comparison
schedules and statistical section are presented for purposes of additional analysis and are not a
required part of the basic financial statements.
The combining and individual fund statements and budgetary comparison schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the und erlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the combining and individual fund statements and
schedules, other supplementary information, and budgetary comparison schedules are fairly stated, in
all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
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5 City of Pearland 2019 CAFR
To the Honorable Mayor and
Members of the City Council
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 23,
2020, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City’s internal control
over financial reporting and compliance.
Houston, Texas
March 23, 2020
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6 City of Pearland 2019 CAFR
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7 City of Pearland 2019 CAFR
Management’s Discussion and Analysis
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8 City of Pearland 2019 CAFR
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9 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Pearland (the “City”), we offer readers of the City’s financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30, 2019.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the primary government of the City exceeded
its liabilities and deferred inflows as of September 30, 2019, by $803.6 million (net position). Of
this amount, $702.7 million is invested in capital assets, net of related capital debt and $71.8
million restricted for capital improvements, debt service, community development programs,
public safety, and economic development.
• At the close of the current fiscal year, the City’s governmental funds reported combined e nding
fund balances of $117.9 million, an increase of $2.2 million in comparison with the prior year.
Approximately $100.8 million of the $117.9 million is considered restricted fund balance and
primarily consists of $34.7 million for economic development and $53.0 million for capital
projects.
• As of September 30, 2019, the unassigned fund balance for the General Fund was $15.7 million
or 21% of total General Fund expenditures. The total fund balance for the General Fund is
$17.2 million or 23% of General Fund expenditures.
• The City’s long-term liabilities increased by $26.7 million primarily due to the issuance of new
debt and an increase in the net pension liability.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements are comprised of three components: (1) government-
wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements - The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference between the four reported as
net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during
the fiscal year. All changes in net position are reported when the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in the future fiscal periods
(e.g., uncollected taxes and earned but unused compensated absences).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-
type activities). The governmental activities of the City include general government, public safety,
public works, community services and parks and recreation. The business-type activities of the City
include water, sewer, and solid waste. The government-wide financial statements can be found on
pages 21 through 23 of this report. The government-wide financial statements include not only the City,
Page 56 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
10 City of Pearland 2019 CAFR
itself (known as the primary government), but also a legally separate Economic Development
Corporation, Tax Increment Reinvestment Zone (TIRZ #2) and the Development Authority of Pearland
for which the City is financially accountable. Financial information for these blended component units is
reported together with the financial information presented for the primary government.
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All funds of the City can be divided into two categori es - governmental
funds and proprietary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statement focus on current sources
and uses of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government’s near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental funds balance sheet and the governmental fund statements of
revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
Beginning on page 24 of this report, information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in
Fund Balances for the General, Debt Service, Capital Projects, Pearland Economic Development
Corporation, Tax Increment Reinvestment Zone #2, and Development Authority of Pearland, which are
considered to be major funds. Data from the non-major governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major governmental funds
is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with the budget.
Proprietary Funds - The City maintains two types of proprietary funds. Enterprise Funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The City uses an Enterprise Fund to account for its Water and Sewer Fund and Solid
Waste Fund. Additionally, the City maintains an Internal Service Fund to account for the financing of
goods or services provided by one department or agency to other departments or agencies of the City
on a cost reimbursement basis. The Internal Service Fund is included in governmental activities for
government-wide reporting purposes.
Proprietary funds provide the same type of information as the government -wide financial statements,
only in more detail. The basic proprietary fund financial statements, which begin on page 32 of this
report, provide separate information for the Water and Sewer and Solid Waste Enterprise Funds since it
is considered to be a major fund of the City. The basic proprietary fund financial statements can be
found on pages 32 through 35 of this report.
Page 57 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
11 City of Pearland 2019 CAFR
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found beginning on page 37 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents other required supplementary information as well as combining and individual fund
statements and schedules that further support the information in the financial statements. This
information is presented immediately following the notes to the financial statements beginning on page
82 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities by
$803.6 million at the close of the most recent fiscal year.
By far the largest portion of the City’s net position (87%) reflects its investment in capital assets (e.g.,
land, infrastructure, buildings, machinery, and equipment), less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
COMPARATIVE SCHEDULE OF NET POSITION
September 30, 2019 and 2018
Amount in (000’s)
Governmental Activities Business-type Activities Totals
2019 2018 2019 2018 2019 2018
Assets
Current and other assets $ 153,973 $ 149,705 $ 153,186 $ 129,011 $ 307,159 $ 278,716
Capital assets 860,947 843,762 374,349 358,618 1,235,296 1,202,380
Total Assets 1,014,920 993,467 527,536 487,629 1,542,456 1,481,096
Total Deferred Outflows
of Resources 20,856
16,477
2,837
1,888
23,693
18,365
Liabilities
Other liabilities 19,155
17,668
11,598
9,788
30,753
27,456
Long-term liabilities
outstanding
472,634
470,704
259,005
234,217 731,640
704,921
Total Liabilities 491,789 488,372 270,603 244,005 762,392 732,377
Total Deferred Inflows
of Resources 153 3,090 21 415 174 3,505
Net position
Net investment in capital
assets
488,077
454,670
214,672
210,674 702,749
665,344
Restricted 56,491 67,263 15,270 14,525 71,761 81,788
Unrestricted (734) (3,451) 29,806 19,898 29,072 16,447
Total Net Position $ 543,834 $ 518,482 $ 259,748 $ 245,097 $ 803,582 $ 763,579
Page 58 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
12 City of Pearland 2019 CAFR
COMPARATIVE SCHEDULE OF CHANGES IN NET POSITION
For the Years Ended September 30, 2019 and 2018
Amounts in (000’s)
Governmental Activities Business-type Activities Totals
2019 2018 2019 2018 2019 2018
Revenues
Program revenues:
Charges for services $ 27,784 $ 27,278 $ 64,317 $ 63,435 $ 92,101 $ 90,713
Operating grants and
contributions
9,005
6,127
1,497
-
10,502
6,127
Capital grants and
contributions
16,678
19,241
4,113
4,614
20,791
23,855
Property taxes 89,930 83,803 - - 89,930 83,803
Sales and use taxes 34,872 35,437 - - 34,872 35,437
Franchise taxes 7,480 7,358 - - 7,480 7,358
Investment earnings 3,293 1,651 2,947 1,360 6,240 3,011
Other 562 4,691 2,361 7
2,923 4,698
Total Revenues 189,604 185,586 75,235 69,416 264,839 255,002
Expenses
General Government 21,249 20,360 - - 21,249 20,360
Public Safety 47,948 43,275 - - 47,948 43,275
Public Works 46,631 53,272 - - 46,631 53,272
Community Services 4,616 4,509 - - 4,616 4,509
Parks and Recreation 7,683 7,194 - - 7,683 7,194
Economic Development 33,470 29,521 - - 33,470 29,521
Interest on long-term debt 14,017 14,441 - - 14,017 14,441
Water and Sewer - - 39,413 41,683 39,413 41,683
Solid Waste - - 7,752 7,441 7,752 7,441
The increase in total net position from the prior year is $42.1 million, not include the prior period
adjustment of negative 2.1 million, is primarily attributable to increase in capital assets, which came
from funding from several debt issuance.
Governmental activities - Governmental activities increased the City’s net position by $25.4 million,
thereby accounting for 60% percent of the total increase in the net position of the City. Key elements
of this increase are as follows:
• Property taxes, sales and use taxes, and franchise taxes totaled $89.9 million, $34.9 million,
and $7.5 million, respectively. These revenues increased by $5.7 million from prior year
primarily as a result of an increase in taxable assessed values.
• Capital grants and contributions totaled $16.7 million as a result of infrastructure contributed
by developers.
• The revenues were offset by expenses for general government, public safety, public works,
and economic development of $21.2 million, $47.9 million, $46.6 million, and $33.5 million,
respectively.
Total Expenses 175,614 172,572 47,165 49,124 222,779 221,696
Increase (decrease) in net
position before special
item and transfers 13,989
13,014
28,070
20,292
42,059
33,306
Transfers 11,364 3,103 (11,364) (3,103) - -
Increase in net position 25,353 16,117 16,706 17,189 42,059 33,306
Net position - beginning 518,482 504,406 245,097 226,771 763,579 731,177
Prior period adjustment - (2,041) (2,055) 1,137 (2,055) (904)
Net position - ending $ 543,835 $ 518,482 $ 259,748 $ 245,097 $ 803,583 $ 763,579
Page 59 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
13 City of Pearland 2019 CAFR
$60
Expenses and Program Revenues - Governmental Activities
$40
$20
$-
$100
$80
Revenues by Source - Governmental Activities
$60
$40
$20
$-
Business-type activities - Business-type activities increased the City’s net position by $16.7 million,
thereby accounting for 40% percent of the total increase in the net position of the City. Key elements of
this increase are as follows:
• Program revenues of $69.9 million increased approximately $1.9 million over the prior year
primarily due to an increase in operating grants and contributions of $1.5 million due to
reimbursements received from federal and state agencies.
$48.0
Expenses
Program Revenues
$46.6
$33.5
$26.8
$21.3 $14.0
$10.8 $4.6 $7.1 $7.7
$4.4 $2.3 $1.9
$89.9
$34.9
$27.8 $25.7
$7.5 $3.9 millions ($) millions ($) Page 60 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
14 City of Pearland 2019 CAFR
• Capital grants and contributions of $4.1 million decreased $0.5 million from the prior year
primarily due to a decrease in contributions from developers for impact fees.
• The revenues listed above were offset by expenses of $39.4 million and $7.8 million,
respectively, for Water and Sewer and Solid Waste, respectively. Expenses increased from
prior year by ($2.0) million.
Expenses and Program Revenues - Business-type Activities
$80
$60
$40
$20
$-
Water and Sewer Solid Waste
Revenues by Source - Business-type Activities
Grants and
contributions
7%
Other
7%
Charges for
services
86% millions ($)
$59.8
Expenses
Program Revenues
$39.4
$7.8 $10.1
Page 61 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
15 City of Pearland 2019 CAFR
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal
requirements.
Governmental Funds - The focus of the City's governmental funds is to provide information of near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
City's financing requirements. In particular, unassigned fund balance may serve as a useful measure
of the City's net resources available for spending at the end of the fiscal year.
The City's governmental funds reflect a combined fund balance of $117.9 million. A portion of the
combined fund balance, or $15.7 million, is unassigned and available for day-to-day operations of the City;
$53.0 million is restricted for capital projects; $34.7 million for economic development and the remaining
balance is restricted for debt service and other programs.
There was an increase in the combined governmental fund balance of $2.2 million from the prior year.
The increase in fund balance includes increases in the General Fund of $3.2 million, Capital Projects
Fund of $9.1 million, and the Tax Increment Reinvestment Zone #2 of $0.6 million. These increases in
fund balance were partially offset by decreases in fund balance in the Debt Service Fund of $1.4 million,
Pearland Economic Development Corporation of $10.4 million. The General Fund's fund balance totaled
$17.2 million at year end.
The Pearland Economic Development Corporation, Tax Increment Reinvestment Zone #2, and
Development Authority of Pearland, the City’s component units blended with the primary government, had
expenditures totaling $60.4 million, leaving an ending fund balance of $16.7 million, $9.6 million, and
$8.3 million, respectively, all considered restricted.
Proprietary Funds - The City's business-type activities contain two activities (water and sewer, and solid
waste). The City’s proprietary funds provide the same type of information found in the government-
wide financial statements business-type activities. Total net position in the Internal Service Fund was $6.9
million at year end, a $3.4 million increase from the prior year.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there was a $1.8 million increase in appropriations between the adopted and
amended budget. The increase in appropriations is attributable to carryover funding from prior-year
encumbrances and projects and to reflect projections during the 2019-2020 budget process.
Actual revenues of $78.6 million were $1.0 million over the amended budget mainly in licenses and
permits. Actual expenditures of $76.0 million were under the amended budget by $2.9 million, resulting in
a year-end fund balance of $17.2 million, in excess of budget by $3.7 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - At the end of fiscal year 2019, the City's governmental activities and business-type
activities had invested $860.9 million and $374.3 million, respectively, in a variety of capital assets and
infrastructure, as reflected in the following schedule. This represents a net increase of $17.2 million, or 2.0
percent over the end of last fiscal year for the governmental activities and a net increase of $15.7 million or
4.4 percent over the end of last fiscal year for business-type activities.
Page 62 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
16 City of Pearland 2019 CAFR
Amounts in (000's) Governmental Activities Business-Type Activities Totals
2019 2018 2019 2018 2019 2018
Land $ 31,166 $ 31,161 $ 3,796 $ 3,796 $ 34,962 $ 34,957
Construction in progress 145,667 110,736 98,530 84,111 244,197 194,847
Infrastructure 604,170 619,102 228,151 224,300 832,321 843,402
Buildings and improvements 68,500 71,506 23,783 24,518 92,283 96,024
Machinery and equipment 9,338 8,304 1,118 1,542 10,457 9,846
Furniture and fixtures 2,105 2,953 10 15 2,116 2,968
Contractual water rights - - 18,960 20,336 18,960 20,336
Total Capital Assets $ 860,947 $ 843,762 $ 374,349 $ 358,618 $ 1,235,296 $ 1,202,380
Construction in progress at year-end represents numerous ongoing projects, the largest of which relate
to street, parks, and water/sewer projects. Additional information on the City’s capital assets can be
found in Note 4 to the financial statements.
Long-Term Debt - At the end of the current fiscal year, the City had total bonds, certificates of
obligation, and capital leases outstanding of $687.4 million. Of this amount, $274.0 million is composed
of general obligation bonds, $51.6 million is composed of certificates of obligation and $317.5 million
represents revenue bonds secured solely by specified revenue sources.
Amounts in (000's) Governmental Activities Business-Type Activities Totals
2019 2018 2019 2018 2019 2018
General obligation bonds $ 269,520 $ 278,175 $ 4,480 $ 4,845 $ 274,000 $ 283,020
Certificates of obligation 51,620 41,750 - - 51,620 41,750
Revenue bonds 85,065 98,025 232,415 214,705 317,480 312,730
Unamortized issuance
premium/(discount) 26,639 23,844 16,808 10,897 43,446 34,741
Capital leases payable 761 1,282 86 173 847 1,455
$ 433,605 $ 443,076 $ 253,789 $ 230,620 $ 687,393 $ 673,696
The City’s general obligation bonds and certificates of obligation debt for governmental activities
increased to $321.1 million. The increase is due to new debt issued offset by scheduled pr incipal
payments. The City’s debt for business-type activities increased to $236.9 million, a net increase of
$17.3 million from the previous year, which was a result of new debt issued offset by scheduled
principal payments.
Current credit ratings on debt issues are as follows:
Standard
and Poor's Fitch
Moodys
Investor
Services
General obligation bonds AA AA Aa2
Revenue bonds AA- AA- Aa3
Both the Pearland Economic Development Corporation (PEDC) and the Development Authority of
Pearland (DAP), component units of the City, have issued debt. The PEDC bonds are rated A1 from
Moody’s. The DAP bonds are rated A- by Standard and Poor’s. Additional information on the City’s
long-term debt can be found in Note 5 to the financial statements.
Page 63 of 249
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
17 City of Pearland 2019 CAFR
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The City of Pearland continues with its forward momentum in FY 2020, less in terms of population and
more in terms of growing value. The City’s sales tax revenue is expected to continue strongly, providing
$22.6 million in FY 2020 with 1% growth. Sales tax revenue actually provides substantially to General
Fund operations in addition to being the funding source for our Pearland Economic Development
Corporation for another $11.3 million in FY 2020. The City also saw $495 million or 4.6% increase in
added taxable value in FY 2020. The combination of rooftops and retailers in Pearland helps the local
economy with jobs and investment and obviously provides tremendous value to our local government
operations.
The City received positive ratings from Moody’s Investor Services and Fitch Ratings, Inc. for its 2019
bond issuances. The City’s Permanent Improvement Bonds Series 2019 for $15.755 million, the City’s
Certificates of Obligation Series 2019A and 2019B for $4.465 million and 11.98 respectively were
assigned a rating of ‘AA’ by Fitch and ‘Aa2’ by Moody’s. Separately, our enterprise fund Water and
Sewer System Revenue Bonds-Series 2019B for $34.59 million were assigned ‘AA-’ by Fitch and ‘Aa3’
by Moody’s. These ratings demonstrate strong creditworthiness relative to other U.S. municipal or tax-
exempt issuers or issues. The City, however, is significantly leveraged, which was necessary to allow
the City to grow successfully.
The City’s growth allows debt service payments to be spread over a larger tax base, steadying the debt
service rate while continuing moderate new debt issuances for capital investment projects. The debt
service increased slightly from $0.4300 in 2019 to $0.4344 in 2020. Anticipated future increases to the
Debt to AV ratio are precipitated by the voter-approved 2019 bond package, which included $79 million
in general obligation projects. As of September 30, 2019 the City had $321.1 million in General
Obligation and Certificates of Obligation outstanding being paid back primarily by property taxes. Our
financial obligations will continue to be met, and the City will continue to grow, but knowing that the
heavy investments both past and future may limit our resources for ongoing operations and
innovations.
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CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
18 City of Pearland 2019 CAFR
With a growing Houston area economy and the continued growth in value and population, the City
General Fund revenues and other sources are projected to increase from $82,262,212 in FY 2019 to
$86,934,676 in FY 2020, an increase of $4,672,464, or 5.7%, mainly due to an increase in Property
Tax, Sales Tax, and Charges for Services. Property Tax revenues increased in 2020 by 12% over FY
2019 year-end amended revenue, resulting in steady property tax revenue as a percent of total
revenues, from 27.9% in FY 2019 to 29.5% in FY 2020, and a slight increase in the overall property tax
rate from $0.7092 to $0.7412 per $100 valuation.
FY 2020 total expenditures are $86,211,511, 4.1% more than the FY 2019 Amended Budget. Salaries
and benefits remain the major expenditure for FY 2020, at 71.7% of the total. Police and Fire remained
the main focus of the supplemental funding. The Police Department will be adding two new Sworn
Officers and two Telecommunications Operators. The Fire Department will be continuing the process of
“continuous onboarding” by bringing on 26 new firefighters, supplemented in part by grant funding. A
2% increase in salary is included for all personnel, to support recruitment and retention efforts.
The General Fund meets reserve requirements and the fund is structurally in balance for FY 2020
whereby operating revenues are greater than expenditures. The adopted FY 2020 fund balance over
policy is $125,545, with the adopted ending fund balance of $14,488,383 for FY 2020.
REQUESTS FOR INFORMATION
The financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of City’s finances. If you have questions about this report or need any additional financial
information, contact Cynthia Pearson, Director of Finance, at 3523 Liberty Drive, Pearland, Texas 77581, or
call (281) 652-1600. The report and general information can be found on the City’s website at
www.pearlandtx.gov
Page 65 of 249
19 City of Pearland 2019 CAFR
Basic Financial Statements
Page 66 of 249
20 City of Pearland 2019 CAFR
Page 67 of 249
21 See notes to the financial statements. City of Pearland 2019 CAFR
Capital assets not subject
CITY OF PEARLAND, TEXAS
STATEMENT OF NET POSITION
September 30, 2019
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and equivalents $ 38,072,172 $ 11,439,793 $ 49,511,965
Investments 92,723,623 11,547,129 104,270,752
Receivables, net of allowance
for uncollectibles 25,790,641 14,904,373 40,695,014
Internal balances (2,750,000) 2,750,000 -
Inventories 121,442 - 121,442
Prepaid items 15,244 - 15,244
Restricted cash and cash equivalents - 66,466,265 66,466,265
Restricted investments - 46,078,631 46,078,631
Capital assets:
to depreciation 176,833,212 102,326,143 279,159,355
Capital assets, net of
accumulated depreciation 684,113,688 272,023,230 956,136,918
Total Capital Assets 860,946,900 374,349,373 1,235,296,273
Total Assets 1,014,920,022 527,535,564 1,542,455,586
Deferred Outflow s of Resources
Deferred charge on refunding 9,383,525 1,301,418 10,684,943
Deferred outflows related to OPEB activities 503,172 80,424 583,596
Deferred outflows related to pension activities 10,969,551 1,454,789 12,424,340
Total Deferred Outflows of Resources 20,856,248 2,836,631 23,692,879
Liabilities
Accounts payable and accrued liabilities 12,456,888 6,884,749 19,341,637
Accrued interest 1,305,328 574,894 1,880,222
Unearned revenues 2,974,647 - 2,974,647
Customer deposits 2,417,846 4,138,305 6,556,151
Long-term liabilities:
Due within one year 28,805,934 12,414,911 41,220,845
Due in more than one year 412,077,367 242,214,345 654,291,712
Total OPEB liability 4,973,600 818,394 5,791,994
Net pension liability 26,777,303 3,557,836 30,335,139
Total Liabilities 491,788,913 270,603,434 762,392,347
Deferred Inflows of Resources
Deferred inflows related to OPEB activities 75,649 10,249 85,898
Deferred inflows related to pension activities 77,385 10,483 87,868
Total Deferred Inflows of Resources 153,034 20,732 173,766
Net Position
Net investment in capital assets 488,077,356 214,671,762 702,749,118
Restricted for:
Capital improvements 3,087,030 9,481,643 12,568,673
Debt service 11,010,197 5,788,868 16,799,065
Community development programs 7,230,884 - 7,230,884
Public safety 503,919 - 503,919
Economic development 34,659,047 - 34,659,047
Unrestricted (734,110) 29,805,756 29,071,646
Total Net Position $ 543,834,323 $ 259,748,029 $ 803,582,352
Page 68 of 249
22 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019
Page 1 of 2
Program Revenue
Capital Grants
Charges for Operating Grants and
Functions/Programs Expenses Services and Contributions Contributions
Primary Government
Governmental Activities:
General Government
$ 21,249,001
$ 10,826,098
$ -
$ -
Public Safety 47,948,271 4,412,897 - -
Public Works 46,631,396 1,379,478 8,765,191 16,678,409
Community Services 4,616,269 6,887,859 239,408 -
Parks and Recreation 7,683,358 2,327,989 - -
Economic Development 33,469,691 1,949,704 - -
Interest on long-term debt 14,016,509 - - -
Total Governmental Activities 175,614,495 27,784,025 9,004,599 16,678,409
Business-type activities:
Water and Sewer 39,413,149
55,696,046
-
4,113,156
Solid Waste 7,751,791 8,621,198 1,497,430 -
Total Business-Type Activities 47,164,940 64,317,244 1,497,430 4,113,156
Total Primary Government $ 222,779,435 $ 92,101,269 $ 10,502,029 $ 20,791,565
Page 69 of 249
23 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019
Page 2 of 2
Net (Expense) Revenue and Changes in Net Position
Primary Government
Functions/Programs
Primary Government
Governmental Business-type
Activities Activities Total
Governmental Activities:
General Government
$ (10,422,903) $ - $ (10,422,903)
Public Safety (43,535,374) - (43,535,374)
Public Works (19,808,318) - (19,808,318)
Community Services 2,510,998 - 2,510,998
Parks and Recreation (5,355,369) - (5,355,369)
Economic Development (31,519,987) - (31,519,987)
Interest on long-term debt (14,016,509) - (14,016,509)
Total Governmental Activities (122,147,462) - (122,147,462)
Business-type activities:
Water and Sewer
- 20,396,053 20,396,053
Solid Waste - 2,366,837 2,366,837
Total Business-Type Activities - 22,762,890 22,762,890
Total Primary Government (122,147,462) 22,762,890 (99,384,572)
General Revenues:
Taxes:
Property taxes 89,929,735 - 89,929,735
Sales and use taxes 34,872,026 - 34,872,026
Franchise taxes 7,479,797 - 7,479,797
Unrestricted investment earnings 3,292,893 2,946,810 6,239,703
Miscellaneous 562,050 2,360,862 2,922,912
Transfers 11,364,397 (11,364,397) -
Total General Revenues and Transfers 147,500,898 (6,056,725) 141,444,173
Change in net position 25,353,436 16,706,165 42,059,601
Net position - beginning 518,480,887 245,096,762 763,577,649
Prior period adjustment - (2,054,898) (2,054,898)
Net position - ending $ 543,834,323 $ 259,748,029 $ 803,582,352
Page 70 of 249
24 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2019
Page 1 of 2
Total Deferred Inflows
Fund Balances
Non-spendable
Prepaid items 15,244 - - -
Restricted
Debt service - 5,426,609 - -
Capital improvements - - 51,351,705 -
Community development programs - - - -
Public safety - - - -
Economic development - - - 16,735,436
Assigned
Encumbrances 1,520,940 - - -
Unassigned 15,665,666 - - -
Total Fund Balances
Total Liabilities, Deferred
17,201,850 5,426,609 51,351,705 16,735,436
Inflows of Resources,
and Fund Balances $ 28,289,413 $ 13,218,608 $ 59,604,067 $ 20,478,823
Capital
Pearland
Economic
Development
Assets
General Fund Debt Service Projects Corporation
Cash and cash equivalents $ 1,352,391 $ 963,308 $ 6,877,395 $ 953,675
Investments
Receivables, net of allowance
for uncollectibles
19,871,620
7,050,158
4,588,364
7,666,936
49,205,453
3,521,219
14,180,939
5,344,209
Prepaid items 15,244 - - -
Total Assets $ 28,289,413 $ 13,218,608 $ 59,604,067 $ 20,478,823
Liabilities
Accounts payable $ 2,863,550 $ - $ 3,811,046 $ 210,932
Accrued expenditures 1,964,678 132,080 2,818,803 72,479
Deposits 2,379,513 - - 38,333
Due to other funds 2,750,000 - - -
Unearned revenue 581,131 771,003 1,622,513 -
Total Liabilities 10,538,872 903,083 8,252,362 321,744
Deferred Inflows of Resources
Unavailable revenue 548,691
6,888,916
-
3,421,643
of Resources 548,691 6,888,916 - 3,421,643
Page 71 of 249
25 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2019
Page 2 of 2
Total Deferred Inflows
Fund Balances
Non-spendable
Prepaid items - - - 15,244
Restricted
Debt service - - - 5,426,609
Capital improvements - - 1,600,152 52,951,857
Community development programs - - 7,230,884 7,230,884
Public safety - - 503,920 503,920
Economic development 9,599,015 8,324,596 - 34,659,047
Assigned
Encumbrances - - - 1,520,940
Unassigned - - (27,299) 15,638,367
Total Fund Balances 9,599,015 8,324,596 9,307,657 117,946,868
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 9,652,067 $ 8,324,596 $ 11,156,600 $ 150,724,174
Assets
Tax Increment
Reinvestment
Zone #2
Development
Authority of
Pearland
Non-major
Governmental
Funds
Total
Governmental
Funds
Cash and cash equivalents $ 9,518,115 $ 8,324,596 $ 4,307,406 $ 32,296,886
Investments
Receivables, net of allowance
for uncollectibles
63,215
70,737
-
-
4,814,032
2,035,162
92,723,623
25,688,421
Prepaid items - - - 15,244
Total Assets $ 9,652,067 $ 8,324,596 $ 11,156,600 $ 150,724,174
Liabilities
Accounts payable
$ 53,052
$ -
$ 332,008
$ 7,270,588
Accrued expenditures - - 30,057 5,018,097
Deposits - - - 2,417,846
Due to other funds - - - 2,750,000
Unearned revenue - - - 2,974,647
Total Liabilities 53,052 - 362,065 20,431,178
Deferred Inflows of Resources
Unavailable revenue -
-
1,486,878
12,346,128
of Resources - - 1,486,878 12,346,128
Page 72 of 249
26 City of Pearland 2019 CAFR
Page 73 of 249
27 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
September 30, 2019
Total fund balance, governmental funds
$ 117,946,868
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
860,946,900
Deferred outflows represent a consumption of net position that applies to future
periods and therefore will not be recognized as an outflow of resources until then.
Deferred charge on refunding
9,383,525
Deferred outflows relating to OPEB activities 503,172
Deferred outflows relating to pension activities 10,969,551
Other long-term assets (property taxes receivable and adjudicated court fines
receivable) are not available to pay current period expenditures and, therefore, are
reported as unavailable revenue in the funds.
12,346,128
Long-term liabilities, including bonds payable, are not due and payable in the current
period, therefore, are not reported in the funds.
Bonds and capital leases payable (433,604,774)
Compensated absences (7,278,516)
Accrued interest governmental activity debt (1,305,328)
Total OPEB liability (4,973,600)
Net pension liability (26,777,303)
Deferred inflows represent a consumption of net position that applies to future periods
and therefore will not be recognized as an inflow of resources until then.
(153,034)
Internal service funds are used by management to charge the cost of property
insurance and employee benefits to individual funds. The assets and liabilities of the
internal service funds are included in the governmental activities in the statement of net
position.
5,830,734
Net Position of Governmental Activities in the Statement of Net Position
$ 543,834,323
Page 74 of 249
28 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
September 30, 2019
Page 1 of 2
Pearland
Economic
Capital Development
General Fund Debt Service Projects Corporation
Revenues
Property taxes $ 23,098,212 $ 35,397,759 $ - $ -
Sales and use taxes 22,427,733 - - 11,048,959
Franchise fees 7,244,497 - - -
Licenses and permits 4,198,551 - - -
Fines and forfeitures 2,528,927 - - -
Charges for services 17,149,571 - - 488,271
Investment earnings 750,827 370,115 994,119 629,714
Intergovernmental - - 9,627,261 12,000
Other 1,167,832 792,945 600,000 441,664
Total Revenues 78,566,150 36,560,819 11,221,380 12,620,608
Expenditures
Current:
General government 10,288,113 - - -
Public safety 42,509,295 - - -
Public works 12,154,279 - 441,518 -
Community services 3,890,941 - - -
Parks and recreation 5,892,670 - - -
Economic development
Debt Service:
- - - 11,257,984
Principal 528,212 18,660,000 - 11,118,461
Interest and other charges 14,638 12,407,558 400,398 188,671
Capital outlay 753,529 - 31,656,489 472,321
Intergovernmental - 7,325,484 - -
Total Expenditures 76,031,677 38,393,042 32,498,405 23,037,437
Excess (deficiency) of revenues
over expenditures 2,534,473 (1,832,223) (21,277,025) (10,416,829)
Other Financing Sources (Uses)
Revenue bonds issued - - - -
Certificates of obligation issued - - 16,445,000 -
Refunding bonds issued - 10,240,000 5,515,000 -
Payments to refunded bond
escrow agent - (12,551,318) - -
Premium on debt issued - 2,200,938 4,055,805 -
Transfers in 4,674,460 572,098 5,676,460 184,186
Transfers out (3,994,725) - (1,362,087) (164,742)
Total Other Financing Sources (Uses) 679,735 461,718 30,330,178 19,444
Net change in fund balances 3,214,208 (1,370,505) 9,053,153 (10,397,385)
Fund balances - beginning 13,987,642 6,797,114 42,298,552 27,132,821
Fund balances - ending $ 17,201,850 $ 5,426,609 $ 51,351,705 $ 16,735,436
Page 75 of 249
29 See notes to the financial statements. City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
September 30, 2019
Page 2 of 2
Tax Increment Development Non-major Total
Reinvestment Authority of Governmental Governmental
Zone #2 Pearland Funds Funds
Revenues
Property taxes $ 31,755,832 $ - $ - $ 90,251,803
Sales and use taxes - - 1,395,334 34,872,026
Franchise fees - - 235,300 7,479,797
Licenses and permits - - - 4,198,551
Fines and forfeitures - - 182,894 2,711,821
Charges for services - - 88,664 17,726,506
Investment earnings 188,520 17,674 234,755 3,185,724
Intergovernmental - - 690,267 10,329,528
Other -
- 944,243 3,946,684
Total Revenues 31,944,352 17,674 3,771,457 174,702,440
Expenditures
Current:
General government - 10,725 874,571 11,173,409
Public safety - - 206,291 42,715,586
Public works - - - 12,595,797
Community services - - 328,287 4,219,228
Parks and recreation - - 172,457 6,065,127
Economic development
Debt Service:
14,209,992 12,820,008 - 38,287,984
Principal - 7,700,000 - 38,006,673
Interest and other charges - 2,634,236 - 15,645,501
Capital outlay - - 712,641 33,594,980
Intergovernmental -
- - 7,325,484
Total Expenditures 14,209,992 23,164,969 2,294,247 209,629,769
Excess (deficiency) of revenues
over expenditures 17,734,360 (23,147,295) 1,477,210 (34,927,329)
Other Financing Sources (Uses)
Revenue bonds issued - 5,835,000 - 5,835,000
Certificates of obligation issued - - - 16,445,000
Refunding bonds issued - - - 15,755,000
Payments to refunded bond
escrow agent - - - (12,551,318)
Premium on debt issued - - - 6,256,743
Transfers in - 17,146,455 370 28,254,029
Transfers out (17,146,455) - (197,871) (22,865,880)
Total Other Financing Sources (Uses) (17,146,455) 22,981,455 (197,501) 37,128,574
Net change in fund balances 587,905 (165,840) 1,279,709 2,201,245
Fund balances - beginning 9,011,110 8,490,436 8,027,948 115,745,623
Fund balances - ending $ 9,599,015 $ 8,324,596 $ 9,307,657 $ 117,946,868
Page 76 of 249
30 City of Pearland 2019 CAFR
Page 77 of 249
CITY OF PEARLAND, TEXAS
31 See notes to the financial statements City of Pearland 2019 CAFR
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019
Net change in fund balances - total governmental funds: $ 2,201,245
Amounts reported for Governmental Activities in the Statement of Activities are different
because:
Governmental funds report outlays for capital assets as expenditures. However, in the
Statement of Activities, the cost of these assets is allocated over their estimated useful
lives as depreciation expense.
This is the amount by which capital outlays of $38,330,220 is exceeded by depreciation of
$38,485,535 in the current period.
(155,315)
Governmental funds report only the proceeds from the disposal of capital assets and not
the difference between the carrying value and the accumulated depreciation of the asset.
This is the amount by which the carrying value exceeded the accumulated depreciation.
(417,952)
Capital assets acquired as a result of in-City development. 16,678,409
Governmental funds do not present revenues that are not available to pay current
obligations. In contrast, such revenues are reported in the Statement of Activities when
earned.
(1,583,413)
Pension and OPEB contributions made after the pension plan measurement date are
reported as expenditures in the governmental funds and are reported as deferred outflows
on the face of the statement of net position
5,757,414
Governmental funds report bond proceeds as current financial resources. In contrast, the
Statement of Activities treats such issuance of debt as a liability. Governmental funds
report repayment of bond principal as an expenditure, In contrast, the Statement of
Activities treats such repayments as a reduction in long-term liabilities. This is the amount
by which proceeds exceeded repayments.
8,835,920
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds:
Accrued interest (147,219)
Deferred charge on refunding 1,454,540
Bond premiums/discounts (2,794,533)
Compensated absences (29,033)
Capital lease activity 520,496
Other post-employment benefit expense (573,032)
Pension expense (7,785,167)
The internal service funds are used by management to charge the costs of property
insurance and employee benefits to individual funds. The net revenue (expense) of certain
activities of internal service funds is reported with governmental activities. 3,391,076
Change in net position of governmental activities $ 25,353,436
Page 78 of 249
CITY OF PEARLAND, TEXAS
32 See notes to the financial statements City of Pearland 2019 CAFR
Capital assets:
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2019
Governmental
Business-type Activities - Enterprise Funds Activities -
Water and Sewer Solid Waste Internal
Fund Fund Total Service Funds
Assets Current assets: Cash and cash equivalents $ 11,121,116 $ 318,677 $ 11,439,793 $ 5,775,281
Investments 11,547,129 - 11,547,129 -
Accounts receivable, net of allowance for doubtful accounts 12,927,646 1,976,727 14,904,373 102,221
Due from other funds 2,750,000 - 2,750,000 -
Inventories - - - 121,442
Restricted cash and cash equivalents 66,466,265 - 66,466,265 -
Restricted investments 46,078,631 - 46,078,631 -
Total current assets 150,890,787 2,295,404 153,186,191 5,998,944
Non-current assets:
Land and improvements 3,796,382 - 3,796,382 -
Construction in progress 98,529,761 - 98,529,761 -
Contractual rights to water supply 34,511,428 - 34,511,428 -
Infrastructure 364,431,770 - 364,431,770 -
Buildings 32,268,698 - 32,268,698 -
Machinery and equipment 5,476,411 - 5,476,411 1,080,100
Less Accumulated depreciation (164,665,077) - (164,665,077) -
Total non-current assets 374,349,373 - 374,349,373 1,080,100
Total Assets 525,240,160 2,295,404 527,535,564 7,079,044
Deferred Outflows of Resources
Deferred charge on refunding 1,301,418 - 1,301,418 -
Deferred outflows relating to OPEB activities 80,424 - 80,424 -
Deferred outflows relating to pension activities 1,454,789 - 1,454,789 -
Total Deferred Outflows of Resources 2,836,631 - 2,836,631 -
Liabilities
Current liabilities: Accounts payable and accrued expenses 6,211,562 673,187 6,884,749 168,208
Accrued interest payable 574,894 - 574,894 -
Customer deposits 4,138,305 - 4,138,305 -
Compensated absences - current portion 188,779 - 188,779 -
Bonds and permanent improvement payable - current portion 12,140,000 - 12,140,000 -
Capital lease - current portion 86,132 - 86,132 -
Total current liabilities 23,339,672 673,187 24,012,859 168,208
Non-current liabilities: Compensated absences 651,772 - 651,772 -
Capital lease obligation 34 - 34 -
Total OPEB Liability 818,394 - 818,394 -
Net pension liability 3,557,836 - 3,557,836 -
Bonds and permanent improvement payable 241,562,539 - 241,562,539 -
Total non-current liabilities 246,590,575 - 246,590,575 -
Total Liabilities 269,930,247 673,187 270,603,434 168,208
Deferred Inflows of Resources
Deferred inflows relating to OPEB activities 10,249 - 10,249 -
Deferred inflows relating to pension activities 10,483 - 10,483 -
Total Deferred Inflows of Resources 20,732 - 20,732 -
Net Position
Net investment in capital assets 214,671,762 - 214,671,762 1,080,100
Restricted for debt service 5,788,868 - 5,788,868 -
Restricted for capital projects 9,481,643 - 9,481,643 -
Unrestricted 28,183,538 1,622,217 29,805,755 4,750,636
Total Net Position $ 258,125,811 $ 1,622,217 $ 259,748,028 $ 5,830,736
Page 79 of 249
CITY OF PEARLAND, TEXAS
33 See notes to the financial statements City of Pearland 2019 CAFR
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended September 30, 2019
Business-type Activities - Enterprise Funds
Governmental
Activities -
Revenues
Charges for services
Water and Sewer
Fund
$ 55,696,046
Solid Waste
Fund
$ 8,621,198
Total
$ 64,317,244
Internal Service
Funds
$ 8,275,646
Total operating revenues 55,696,046 8,621,198 64,317,244 8,275,646
Operating Expenses
Personnel services 8,452,073 - 8,452,073 469,504
Supplies and materials 6,738,676 - 6,738,676 18,832
Contractual services 4,735,584 7,751,791 12,487,375 9,093,622
Repairs and maintenance 2,372,830 - 2,372,830 1,498,799
Other expenses 41,327 - 41,327 23,366
Depreciation and amortization 11,322,452 - 11,322,452 -
Total Operating Expenses 33,662,942 7,751,791 41,414,733 11,104,123
Operating income (loss) 22,033,104 869,407 22,902,511 (2,828,477)
Non-Operating Revenues (Expenses)
Intergovernmental - 1,497,430 1,497,430 -
Earnings on investments 2,944,181 2,629 2,946,810 107,169
Miscellaneous revenue (expense) 2,360,862 - 2,360,862 136,136
Debt issuance costs (800,333) - (800,333) -
Interest expense (4,949,874) - (4,949,874) -
Total Non-Operating Revenues (Expenses) (445,164) 1,500,059 1,054,895 243,305
Income (loss) before contributions and transfers 21,587,940 2,369,466 23,957,406 (2,585,172)
Capital contributions 4,113,156 - 4,113,156 -
Transfers in 834,754 - 834,754 5,976,248
Transfers out (12,199,151) - (12,199,151) -
Change in net position 14,336,699 2,369,466 16,706,165 3,391,076
Total net position - beginning 245,844,010 (747,249) 245,096,761 3,519,760
Prior period adjustment (2,054,898) - (2,054,898) -
Total net position - ending $ 258,125,811 $ 1,622,217 $ 259,748,028 $ 6,910,836
Page 80 of 249
34 See notes to the financial statements City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2019
Page 1 of 2
Business-type Activities - Enterprise Funds
Governmental
Activities -
Water and Sewer
Fund
Solid Waste
Fund Total
Internal Service
Funds
Cash Flows from Operating Activities
Receipts from customers and users
$ 51,863,611
$ 7,813,763
$ 59,677,374
$ -
Receipts from interfund charges for insurance activities 8,102,167
Disbursed for personnel services (8,860,970) - (8,860,970) (469,504)
Disbursed for goods and services (14,450,903) (8,995,144) (23,446,047) (10,588,003)
Net cash provided (used) by operating activities 28,551,738 (1,181,381) 27,370,357 (2,955,340)
Cash Flow s from Noncapital Financing Activities
Transfers in 834,754 - 834,754 5,976,248
Transfers out (12,199,151) - (12,199,151) -
Cash received from non-operating revenues 2,360,862 1,497,430 3,858,292 -
Net cash provided by (used by) noncapital
financing activities
(9,003,535)
1,497,430
(7,506,105)
5,976,248
Cash Flow s from Capital and Related Financing Activities
Proceeds from the issuance of debt 29,763,159 - 29,763,159 -
Principal payments on debt (11,710,000) - (11,710,000) -
Principal payments on leases (84,216) - (84,216) -
Bond issuance costs (800,333) - (800,333) -
Interest paid (4,889,946) - (4,889,946) -
Acquisition and construction of capital assets (21,806,105) - (21,806,105) (1,080,100)
Net cash provided by capital and related
financing activities
(9,527,441)
-
(9,527,441)
(943,964)
Cash Flows from Investing Activities
Purchase of investments 9,160,970 - 9,160,970 -
Interest received 2,944,181 2,628 2,946,809 107,168
Net cash provided by (used by) investing activities 12,105,151 2,628 12,107,779 107,168
Net increase (decrease) in cash and equivalents
22,125,913
318,677
22,444,590
2,184,112
Cash and equivalents, beginning 55,461,467 - 55,461,467 3,591,168
Cash and equivalents, end $ 77,587,381 $ 318,677 $ 77,906,058 $ 5,775,281
1 1
Unrestricted cash and equivalents $ 11,121,116 $ 318,677 $ 11,439,793 $ 5,775,281
Restricted cash and equivalents 66,466,265 - 66,466,265 -
$ 77,587,381 $ 318,677 $ 77,906,058 $ 5,775,281
Page 81 of 249
35 See notes to the financial statements City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2019
Page 2 of 2
Business-type Activities - Enterprise Funds
Governmental
Activities -
Water and Sewer
Fund
Solid Waste
Fund Total
Internal Service
Funds
Reconciliation of operating income to net cash
provided by operating activities Operating income (loss) $ 22,033,104 $ 869,407 $ 22,902,511 $ (2,828,477)
Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 11,322,452 - 11,322,452 -
(Increase) decrease in accounts receivable (6,120,995) (807,435) (6,928,430) (173,479)
(Increase) decrease in deferred outflows relating to OPEB activities (442,974) - (442,974) -
(Increase) decrease in deferred outflows relating to pension activities (777,419) - (777,419) Increase (decrease) in accounts payable (562,486) 24,099 (538,387) 46,616
Increase (decrease) in salaries payable 878,789 - 878,789 -
Increase (decrease) in due to other funds - (1,267,452) (1,267,452) -
Increase (decrease) in customer deposits 2,288,560 - 2,288,560 -
Increase (decrease) in total OPEB liability (1,127,609) - (1,127,609) -
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows relating to
1,465,206 - 1,465,206 -
pension activities (404,890) -
(404,890) -
Net cash provided by (used by) operating activities $ 28,551,738 $ (1,181,381) $ 27,370,357 $ (2,955,340)
Summary of non-cash transactions
Contributed capital assets $ 4,113,156 $ - $ 4,113,156 $ -
Page 82 of 249
36 City of Pearland 2019 CAFR
Page 83 of 249
37 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1 - Summary of Significant Accounting Policies
The City of Pearland, Texas (the "City") was incorporated in December 1959 and adopted a "Home Rule
Charter" February 6, 1971. The Charter, as amended, provides for a Council-Manager form of government
and provides services authorized by its charter. Presently, these services include police, fire and emergency
medical, water and sewer services, drainage, sanitation, building and code inspection, planning, zoning,
engineering, street repair and maintenance, park maintenance, recreational activities for citizens, and
general administrative services. Fire protection is provided through a combination full-time part-
time/volunteer department. The City is governed by an elected mayor and seven-member Council.
The Mayor and all members are elected at large. The Mayor is allowed to vote only in case of a tie vote.
The Mayor and each Council member hold office for a period of three years and until his/her successor is
elected and qualified. Council members shall be limited to two full consecutive terms of office and there is
no limitation on the office of the Mayor. The City Manager is appointed by Council and is responsible for
implementation of Council policy, execution of the laws, and all day-to-day operations of the City.
A. Financial Reporting Entity
The City is an independent political subdivision of the State of Texas governed by an elected council and
a mayor and is considered a primary government. As required by accounting principles generally accepted
in the United States of America, these financial statements have been prepared based on considerations
regarding the potential for inclusion of component units, which are other entities or organizations that are
financially accountable to the City. Blended component units are component units that are considered so
closely related to the legal entity that the blended component unit funds appear as funds that are integral
parts of the primary government. The City’s financial statements include the following blended
component units: the Pearland Economic Development Corporation (PEDC); the Tax Increment
Reinvestment Zone (TIRZ #2); and the Development Authority of Pearland (DAP). No other entities
have been included in the City's reporting entity. Additionally, as the City is considered a primary
government for financial reporting purposes, its activities are not considered a part of any other
governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the
City's financial reporting entity are based on criteria prescribed by generally accepted accounting
principles. These same criteria are evaluated in considering whether the City is a part of any other
governmental or other type of reporting entity. The overriding elements associated with prescribed criteria
considered in determining that the City's financial reporting entity status is that of a primary government
are that it has a separately elected Governing body; it is legally separate; and it is fiscally independent of
other state and local governments.
The financial reporting entity consists of the City and its component units. Component units are legally
separate organizations for which the City is financially accountable or other organizations whose nature
and significant relationship with the City are such that exclusion would cause the City’s financial
statements to be misleading. Financial accountability is defined as the appointment of a voting majority of
the component unit’s board, and (i) either the City’s ability to impose its will on the organization or (ii) there
is potential for the organization to provide a financial benefit to or impose a financial burden on the City.
The basic financial statements include blended component units. The blended component units, although
legally separate entities are, in substance, part of the City’s operations and so data from these units are
combined with data of the primary government.
Page 84 of 249
38 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
A. Financial Reporting Entity (continued)
For financial reporting purposes, the City’s basic financial statements include all financial activities that are
controlled by or are dependent upon actions taken by City Council. The component units do not issue
separate financial statements.
Blended Component Units: All of these units are presented as governmental fund types.
Pearland Economic Development Corporation (PEDC)
In 1995, the citizens of Pearland established the Pearland Economic Development Corporation (PEDC)
to help the citizens and public officials of Pearland attract new businesses and to help existing businesses
to expand. The mechanism to fund the operations of the corporation is through a sales tax levy at a rate
of one-half of one percent (1/2%). The PEDC is governed by a board appointed by the City Council.
Although it is legally separated from the City, the PEDC relies upon the primary government for
appointing the board, also City Council must approve the PEDC’s budget and any debt issuances. The
PEDC provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost
exclusively, benefits the City even though it may not provide services directly to it.
Tax Increment Reinvestment Zone (TIRZ #2)
In 1998, the Tax Increment Reinvestment Zone (TIRZ #2) was established for a period of 30 years or until
dissolved by the City. The TIRZ #2 provides tax-assisted property development and/or redevelopment in
specific geographic areas in accordance with applicable state laws. The TIRZ #2 is governed by a board
appointed by the City Council. Although it is legally separated from the City, the TIRZ #2 is fiscally
dependent upon the primary government because the City Council must also approve any debt issuances
done on behalf of the TIRZ. A major land owner within the City sits on the Board of Directors for the
TIRZ #2. TIRZ #2 provides services entirely, or almost entirely, to the City or otherwise exclusively, or
almost exclusively, benefits the City even though it may not provide services directly to it.
Development Authority of Pearland
In 2004, the City created the Development Authority of Pearland to provide financing for the development of
the TIRZ #2. Proceeds from bond sales are to be used to reimburse developers and fund a debt service
reserve. The Development Authority of Pearland is governed by a board appointed by the City Council.
Although it is legally separated from the City, the Development Authority of Pearland is fiscally dependent
upon the primary government because the City Council must also approve any debt issuances done on
behalf of the Development Authority of Pearland. The Development Authority of Pearland provides
services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the
City even though it may not provide services directly to it.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Changes in Net Position) report information about the City as a whole. These statements include all
activities of the primary government and its component units. For the most part, the effect of interfund
activity has been eliminated from the government-wide statements. Exceptions to this general rule are
charges between the City's business-type and governmental funds. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges
for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements and all proprietary funds are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recognized when
earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash
flows. With this measurement focus, all assets and all liabilities associated with the operations of these
activities are included on the statements of net position. Proprietary fund-type operating statements
present increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. Furniture and
equipment capitalized in the Proprietary Fund Types are valued at cost.
The governmental fund financial statements are presented on a current financial resources measurement
focus and modified accrual basis of accounting. This is the manner in which these funds are normally
budgeted. Revenues are recognized as soon as they are both measurable and available. Measurable
means that the amount of the transaction can be determined and available means collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Revenues susceptible to accrual include property taxes, sales and use taxes, franchise fees,
charges for services and interest on temporary investments. Other receipts become measurable and
available when cash is received by the government and are recognized as revenue at that time.
Under modified accrual accounting, expenditures are recognized in the accounting period in which the
liability is incurred, if measurable, except for interest on general long-term debt, which is recognized when
due. Since the governmental fund statements are presented on a different measurement focus and basis
of accounting than the government-wide statements' governmental column, a reconciliation is presented
which briefly explains the adjustments necessary to reconcile fund-based financial statements with the
governmental column of the government-wide presentation.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)
In the fund financial statements, the accounts of the City are organized on the basis of funds, each of
which is considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and
expenditures or expenses, as appropriate. Following is a description of the various funds:
Governmental funds are those funds through which most governmental functions are typically financed. The
City reports the following major governmental funds:
The General Fund is used to account for all financial transactions not properly includable in other funds.
The principal sources of revenues include local property taxes, sales and franchise taxes, licenses and
permits, fines and forfeitures, and charges for services. Expenditures include general government, public
works, parks and recreation, community services, and public safety.
The Debt Service Fund is used to account for the payment of interest and principal on all general
obligation bonds and other governmental long-term debt of the City. The primary source of revenue for
debt service is local property taxes. The Debt Service Fund is considered a major fund for reporting
purposes.
The Capital Projects Fund is used to account for the expenditures of resources accumulated on a pay-
as-you-go basis and the sale of bonds and related interest earnings for capital improvement projects.
The Capital Projects Fund is considered a major fund for reporting purposes.
The Pearland Economic Development Corporation is used to account for the revenues and expenditures
associated with the half-cent sales tax for economic development approved by the voters in 1995. Use
of the funds are governed by State Law.
The Tax Increment Reinvestment Zone #2 fund is used to account for the incremental property tax
revenues in the specific geographical area and use thereof from the participating taxing entities in the
Zone. The Tax Increment Reinvestment Zone #2 is considered a major fund for reporting purposes.
The Development Authority of Pearland fund is used to account for the financing of the development of
the TIRZ #2. The Development Authority of Pearland is considered a major fund for reporting purposes.
The City’s Business type activities consist of the following funds:
The Enterprise Funds are used to account for the operations that provide water and sewer utility services as
well as solid waste collection services to the public. The services are financed and operated in a manner
similar to private business enterprises where the intent of the governing body is that the costs (expenses
including depreciation) of providing goods or services to the general public on a continuing basis will be
financed or recovered primarily through user charges.
Additionally, the city maintains Internal Service Funds used to account for the financing of goods or
services provided by one department or agency to other departments or agencies of the City on a cost -
reimbursement basis. Services provided by the Internal Service Funds include property and liability
insurance coverage, employee benefits, health claims, and motor pool. The Internal Service Funds is
included in governmental activities for government-wide reporting purposes.
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CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)
All assets, deferred outflows of resources, liabilities, equities, revenues, expenses and transfers relating
to the government's business activities are accounted for through proprietary funds. The measurement
focus is on determination of net income, financial position and cash flows.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s water and sewer function and
various other functions of the government. Elimination of these charges would distort the direct costs and
program revenue reported for the various functions concerned.
Amounts reported as program revenues include: (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenue. Likewise, general revenue includes all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
City’s Enterprise Funds are charges to customers for sales and services. Operating expenses for
Enterprise Funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue
and expense.
D. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond
or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted
net position and unrestricted net position in the government-wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources are considered to
be applied. It is the City's policy to consider restricted net position to have been depleted before
unrestricted net position is applied.
E. Fund Balance Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the
governmental fund financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City's policy to consider restricted fund balance to have
been depleted before using any of the components of unrestricted fund balance. Further, when the
components of unrestricted fund balance can be used for the same purpose, committed fund balance is
depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
F. Fund Balance Working Capital Policies
Governmental Funds are presented in the financial statements as follows:
Nonspendable – Amounts that cannot be spent either because they are not in a spendable form or
because they are legally or contractually required to be maintained intact.
Restricted – Amounts that can be spent only for specific purposes because of the City Charter,
City Code, State or Federal laws, or externally imposed conditions by grantors or creditors.
Committed – Amounts than can be used only for specific purposes determined by ordinances
passed by City Council, the City’s highest level of decision making authority. Commitments may be
modified or rescinded only through ordinances approved by City Council.
Assigned – Amounts that are intended to be used for a specific purpose, but do not meet the
definition of restricted or committed fund balance. Under the City’s policy, amounts can be
assigned by the City’s Director of Finance.
Unassigned – Amounts that are available for any purpose. Positive amounts are reported only in
the General Fund.
City Council has authorized the Director of Finance as the official authorized to assign fund balance to
a specific purpose. City Council has established fund balance and working capital policies under which
the City shall maintain the fund balance and working capital of the various operating funds at the
following levels:
General Fund Unassigned Fund Balance
The City shall maintain the General Fund unassigned fund balance equivalent to 2 months of
recurring operating expenditures, based on current year expenditures. If the fund balance exceeds
this amount, funding non-recurring expenditures in the following fiscal year may be used to draw
down the balance.
Water/Sewer Unreserved Working Capital
The City shall maintain a working capital sufficient to provide for reserves for emergencies and
revenue shortfalls. A cash equivalent operating reserve will be established and maintained at 25%
of the current year’s budget appropriation for recurring operating expenses.
The cash operating reserve is derived by dividing the total cash equivalents balance by recurring
operating expenses.
Use of Fund Balance/Working Capital
Fund balance/Working Capital shall only be used for emergencies, non-recurring
expenditures/expenses or major capital purchases that cannot be accommodated through current
year savings. Should such use reduce balances below the level established as the objective for
that fund, restoration recommendations will accompany the request/decision to utilize said
balances.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
F. Fund Balance Working Capital Policies (continued)
Debt Service Fund Total Fund Balance
The City shall maintain the debt service fund balance at 10% of annual debt service requirements
OR a fund balance reserve as required by bond ordinances, whichever is greater.
Property Liability Insurance Fund Unrestricted Net Position
The Property Liability Insurance Fund accounts for uninsured and deductible claims for the City’s
property and liability insurance. Claims cannot be reasonably predicted and budgeted for; therefore
the fund will maintain a balance that approximates the prior average annual expense for the last
three years, excluding extra-ordinary expenses in the fund.
The Employee Benefits Fund and Health Claims Fund are funded through City and employee
contributions. Estimated costs shall be determined during each budget year and the contributions
adjusted accordingly. There is no minimum balance for this fund as it relates to employee benefits.
Economic Development Corporation
As sales tax revenue fluctuates due to changes in economic conditions, the PEDC shall maintain a
fund balance of no less than 10% of budgeted sales tax revenues.
Water/Sewer Revenue Debt Coverage Reserves
Revenues shall be maintained at 1.15 times coverage in a fiscal year where the water/sewer fund is
not issuing additional debt and 1.4 times coverage in a year where debt is anticipated to be issued.
Bond Issuance Reserves
Debt service reserves should be maintained for each bond issue as required by bond covenants.
Contingency Fund
Pursuant to the City Charter, a provision shall be made within the annual budget for a contingency
fund in an amount not more than seven percent of the total budget (General Fund) to be used in
case of unforeseen items of expenditure.
G. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-
term investments with original maturities of three months or less from the date of acquisition. For the
purpose of the statement of cash flows, the Proprietary Fund Types consider temporary investments with
maturity of three months or less when purchased to be cash equivalents.
The City pools cash resources of its various funds to facilitate the management of cash. Cash applicable to
a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current
operating requirements. Cash in excess of current requirements is invested in various interest-bearing
accounts and securities and disclosed as part of the City's investments.
The City pools excess cash of the various individual funds to purchase these investments. These pooled
investments are reported in the combined balance sheet as Investments in each fund based on each
fund's share of the pooled investments. Interest income is allocated to each respective individual fund,
monthly, based on their respective share of investments in the pooled investments.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
H. Investments
Investments consist of Local Government Investment Pools, United States (U.S.) Government Agency
securities, and Certificates of Deposit with original maturities greater than three months from the dat e of
acquisition. The City reports all investments at fair value, except for investment pools. The City’s
investment pools are valued and reported at amortized cost, which approximates fair value.
The City categorizes fair value measurements of its investments based on the hierarchy established by
generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the
valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs. The City’s local government investment pools are recorded at amortized costs as
permitted by GASB Statement No. 79, Certain Investment Pools and Pool Participants.
I. Receivables
All receivables are reported at their gross value, and where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. Trade accounts receivable in excess of 120 days comprise
the trade accounts receivable allowance for uncollectibles.
J. Due to and Due from Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded by all funds
affected in the period in which the transactions are executed. These receivables and payables are
classified as "due from other funds" or "due to other funds". Interfund receivables and payables which
are not expected to be paid within 12 months are classified as loans from/loans to other funds.
K. Inventories and Prepaid Items
Inventory, which consists of fuel and auto parts for use in the City’s vehicles, is stated at cost (first-in, first-
out method). Expenditures are recognized as the fuel and auto parts are consumed rather when
purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The cost of
prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
L. Restricted Assets
Certain proceeds of the Water and Sewer Enterprise Fund revenue bonds and certain resources set aside
for their repayment are classified as restricted assets on the balance sheet because their use is limited by
applicable bond covenants. Certain resources are also set aside for repayment of Pearland Economic
Development Corporation Bonds and are reported as restricted assets.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
M. Capital Assets
Capital assets which include property, plant, equipment and infrastructure, are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated
useful life of three years or more. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of
donation. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets’ lives are not capitalized.
Property, plant, and equipment are depreciated using the straight-line method over the following useful
lives:
Asset Years
Buildings and improvements 10-45
Machinery and equipment 3-15
Infrastructure 10-50
Intangible Assets - Water Rights 25
N. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation, sick and holiday pay
benefits.
Employees hired prior to October 1, 2005 earn vacation leave at the rate of 15 days per year from 1 to 15
years of service, 20 days per year for service of 16 to 19 years, and 25 days per year for service of 20
years or more. Employees, who are non-exempt and are hired after October 1, 2005 earn vacation at a
rate of 10 days per year from 1-4 years of service, 15 days per year for 5-14 years of service and 20 days
for 15 and over years of service. Employees, who are exempt and are hired after October 1, 2005 earn
vacation at a rate of 15 days per year from 1-14 years of service, and 20 days for 15 and over years of
service. Certified police personnel earn 15 days of vacation after 1 year and 20 days of vacation after 15
years. Effective October 1, 2011 certified fire fighter personnel earn 168 hours of vacation from 1-4 years,
241 hours of vacation for 5-14 years and 312 hours after 15 years. Employees are required to use their
vacation in the year it is earned. Employees may carry over a maximum of 40 (48 for certified shift Fire
employees) hours of vacation a year.
City employees receive 10 paid holidays per year. In addition to providing paid time off for the City-
observed holidays, the City permits regular full-time employees to take up to two (2) paid personal days
(designated holidays) annually. Employees required to work on a City-observed holiday may be paid or
may elect to receive compensatory time off for the holiday. Overtime is earned at one and one-half times
the regular rate of pay for non-exempt employees. Employees may be paid or receive compensatory time.
The maximum accrual for Compensatory Time is 120 hours, including employees involved in public safety.
All sick leave benefits are accumulated and paid to employees upon separation from the City not to
exceed 720 hours for employees hired prior to July 24, 2006, and 360 hours for employees hired after.
Vacation, sick and holiday pay benefits are accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
O. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenditures during the reporting period. Actual results could differ
from those estimates.
P. Comparative Data and Reclassifications
Comparative data for the prior year have been presented in certain sections of the accompanying
financial statements in order to provide an understanding of changes in the City’s financial position and
operations. Also, certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year’s presentation.
Q. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position or fund balance that applies to a future period(s)
and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. The City
has only three items that qualify for reporting in this category.
• Deferred outflows of resources for refunding - Reported in the government-wide statement of
net position, this deferred charge on refunding results from the difference in the carrying value
of refunded debt and its reacquisition price. This amount is deferred and amortized over the
shorter of the life of the refunded or refunding debt.
• Deferred outflows of resources for pension - Reported in the government-wide financial
statement of net position, this deferred outflow results from pension plan contributions made
after the measurement date of the net pension liability and the results of 1) differences between
projected and actual earnings on pension plan investments; 2) changes in actuarial
assumptions; 3) differences between expected and actual actuarial experiences and 4) changes
in the City’s proportional share of pension liabilities. The deferred outflows of resources related
to pensions resulting from City contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the next fiscal year. The deferred
outflows resulting from differences between projected and actual earnings on pension plan
investments will be amortized over a closed five year period. The remaining pension related
deferred outflows will be amortized over the expected remaining service lives of all employees
(active and inactive employees) that are provided with pensions through the pension plan.
• Deferred outflows of resources for other post-employment benefits (OPEB) - Reported in the
government wide financial statement of net position, these deferred outflows result from OPEB
plan contributions made after the measurement date of the net OPEB liability and the results of
changes in assumptions and other inputs. The deferred outflows of resources resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the total
OPEB liability in the next fiscal year. The other OPEB related outflow will be amortized over the
expected remaining service lives of all employees (active and inactive employees) who are
provided with OPEB benefits.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
Q. Deferred Outflows/Inflows of Resources (continued)
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position or fund balance that applies to a future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify
for reporting in this category.
• Deferred inflows of resources for unavailable revenues - Reported only in the governmental
funds balance sheet, unavailable revenues arise under the modified accrual basis of
accounting. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available.
• Deferred inflows of resources for pension - Reported in the government wide financial statement
of net position, these deferred inflows result primarily from changes in actuarial assumpt ions.
These pension related deferred inflows will be amortized over the expected remaining service
lives of all employees (active and inactive employees) that are provided with pensions through
the pension plan.
• Deferred inflows of resources for OPEB - Reported in the government wide financial statement
of net position, these deferred inflows result primarily from changes in actuarial assumptions.
These OPEB related deferred inflows will be amortized over the expected remaining service
lives of all employees (active and inactive employees) that are provided with OPEB through the
OPEB plans.
R. Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and inflows of
resources, and pension expense, City specific information about its Fiduciary Net Position in the Texas
Municipal Retirement System (TMRS) and additions to/deductions from the City’s Fiduciary Net
Position have been determined on the same basis as they are reported by TMRS. For this purpose,
plan contributions are recognized in the period that compensation is reported for the employee, which is
when contributions are legally due. Benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value. Information
regarding the City’s Total Pension Liability is obtained from TMRS through a report prepared for the
City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions, as superseded by GASB Statement No. 71.
S. Other-Post Employment Benefits (OPEB)
The City provides its retirees the opportunity to maintain health insurance coverage by participating in
the City’s insurance plan. The City reports the total liability for this plan on the government -wide and
proprietary fund financial statements. The actual cost recorded in the governmental fund financial
statements is the cost of the health benefits incurred on behalf of the retirees less the premiums
collected from the retirees. Information regarding the City’s total liability for this plan is obtained through
a report prepared by HUB International, the City’s third-party actuary, in compliance with GASB
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 1 - Summary of Significant Accounting Policies (continued)
T. Other-Post Employment Benefits (OPEB)
Additionally, the City participates in a defined-benefit group-term life insurance plan, both for current
and retired employees, administered by the Texas Municipal Retirement System (TMRS). The City
reports the total liability for this plan on the government-wide and proprietary fund financial statements.
Information regarding the City’s total OPEB liability is obtained f rom TMRS through a report prepared
for the City by TMRS’ consulting actuary, Gabriel Roeder Smith & Company, in compliance with GASB
Statement No. 75.
U. New Accounting Standards
The following standards have been issued, but have not been implemented as not yet effective.
GASB Statement No. 84, Fiduciary Activities. This Statement establishes standards of accounting and
financial reporting for fiduciary activities.
GASB Statement No. 87, Leases. This Statement establishes standards of accounting and financial
reporting for leases by lessees and lessors.
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.
This Statement establishes accounting requirements for interest cost incurred before the end of a
construction period.
Note 2 - Deposits (Cash) and Investments
Authorization for Deposits and Investments
The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas
Government Code, regulates deposits and investment transactions of the City.
In accordance with applicable statutes, the City has a depository contract with an area bank
(depository) providing for interest rates to be earned on deposited funds and for banking charges the
City incurs for banking services received. The Cit y may place funds with the depository in interest and
non-interest bearing accounts. State law provides that collateral pledged as security for bank deposits
must have a market value of not less than the amount of the deposits and must consist of: (1)
obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State
of Texas or its agencies; (3) other obligations, the principal and interest on which are unconditionally
guaranteed or insured by the State of Texas; and/or (4) obligations of states, agencies, counties, cities,
and other political subdivisions of any state having been rated as to investment quality by a nationally
recognized investment rating firm and having received a rating of not less than A or its eq uivalent. City
policy requires the collateralization level to be at least 102% of market value of principal and accrued
interest.
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NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
Authorization for Deposits and Investments (continued)
The Council has adopted a written investment policy regarding the investment of City funds as required
by the Public Funds Investment Act (Chapter 2256, Texas Government Code). The investments of the
City are in compliance with the City’s investment policy. The City’s investment policy is more restrictive
than the PFIA requires. It is the City’s policy to restrict its direct investments to obligations of the U.S.
Government or U.S. Government Agencies, obligations of states, counties, and cities, fully
collateralized certificates of deposit, bankers’ acceptances, mutual funds, repurchase agreements and
local government investment pools. The maximum maturity allowed is five years from date of
purchase. The City’s investment policy does not allow investments in collateralized mortgage
obligations.
The City's cash and investments are classified as: cash and cash equivalents, investments, and
restricted cash and investments. The cash and cash equivalents include cash on hand, deposits with
financial institutions, and short-term investments, which have maturities at purchase of less than three
months, consisting mainly of certificates of deposit. The restricted cash and investments are assets
restricted for specific use. The restricted cash and investments include cash on deposit with financial
institutions. For better management of cash, the City pools the cash, based on the City's needs, into
either bank/sweep accounts, or in longer-term investments in U.S. Government Securities. However,
each fund's balance of cash and investments is maintained in the books of the City.
Deposit and Investment Amounts
The deposit and investment policies for the Pearland Economic Development Corporation, TIRZ No. 2
and Development Authority of Pearland are substantially the same as the City.
The following schedule shows the City’s recorded cash and investments at year-end:
Total Fair Value
Cash $ 115,978,227
Temporary Investments
Texas CLASS 79,294,173
TexSTAR 28,587,745
FAMC discount note 5,012,179
FFCB discount note 1,000,004
FHLB discount note 1,999,513
FHLMC discount note 4,686,301
FNMA discount note 1,001,146
Certificates of deposit 28,768,323
$ 266,327,611
At September 30, 2019, the City reported cash deposits in the amount of $115,978,227. Except for the
money market fund which does not require collateral, the City’s cash deposits were covered by federal
depository insurance and by pledged collateral held by the City's agent in the City's name.
Page 96 of 249
50 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
Deposit and Investment Amounts (continued)
Quoted market prices are the basis of the fair value for U.S. Treasury and Age ncy securities. The
amount of increase or decrease in the fair value of investments during the current year is included in
the City’s investment income as follows:
Total Fair Value
Interest income
Unrealized gain (loss) on
$ 5,552,889
temporary investments 686,814
Investment earnings $ 6,239,703
The City’s investments’ fair value measurements are as follows at September 30, 2019:
Fair Value Measurement Using
Investments Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs
U.S Agency Securities $ 13,699,143 $ - $ 13,699,143 $ -
Certificates of deposit 28,768,323 28,768,323 - -
Interest Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
generally accepted accounting principles:
Weighted
Average
Total Fair Value Maturity (days)
Temporary Investments
Texas CLASS $ 79,294,173 50
TexSTAR 28,587,745 22
FAMC discount note 5,012,179 492
FFCB discount note 1,000,004 396
FHLB discount note 1,999,513 444
FHLMC discount note 4,686,301 562
FNMA discount note 1,001,146 455
Certificates of deposit 28,768,323 281
$ 150,349,384
Portfolio weighted average maturity 130
The City’s investment policy specifies a maximum weighted average maturity for the portf olio of 900
days or 30 months based on the stated maturity date of the investments. When including cash
investments the weighted average maturity for the City is 130 days.
To the extent possible, the City attempts to match investments with anticipated cash flow requirements.
The City does not directly invest in securities with a stated maturity date more than five years or 1,825
days from date of purchase. The settlement date is considered the date of purchase.
Page 97 of 249
51 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
Concentration of Credit Risk
With the exception of U.S. Treasury Securities and interest-bearing checking accounts that are fully
collateralized, no more than 75 percent of the City’s total investment portfolio will be invested in a single
security type.
Investment Type Total Fair Value
Percentage of
Total Investment
Portfolio
Texas CLASS $ 79,294,173 53%
TexSTAR 28,587,745 19%
FAMC discount note 5,012,179 3%
FFCB discount note 1,000,004 1%
FHLB discount note 1,999,513 1%
FHLMC discount note 4,686,301 3%
FNMA discount note 1,001,146 1%
Certificates of deposit 28,768,323 19%
Total $ 150,349,384 100%
Credit Risk
Federal National Mortgage Association, Federal Home Loan Bank, Federal Home Loan Mortgage
Corporation, Federal Farm Credit Bank and the Federal National Mortgage Association Discount Notes
were rated AA+ by Standard & Poor’s, AAA by Fitch Ratings, and Aaa by Moody’s Investors Service.
All credit ratings meet acceptable levels required by guidelines prescribed by both the PFIA and the
City’s investment policy. A public fund investment pool must be continuously rated no lower than AAA
or AAAm or no lower than investment grade by at least one nationally-recognized rating service and
have a weighted average maturity no greater than 90 days. Investments with minim um required ratings
do not qualify as authorized investments during the period the investment does not have the minimum
rating.
In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants,
the Local Government Investment Pools do not have any limitations and restrictions on withdrawals
such as notice periods or maximum transaction amounts. These pools do not impose any liquidity fees
or redemption gates.
Page 98 of 249
52 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 2 - Deposits (Cash) and Investments (continued)
Restricted Assets
The Enterprise Funds have restricted certain cash and investments for customer deposits, reserve and
emergency expenses, capital improvements, cash restricted for others, and revenue bond debt service.
Because of certain bond covenants, the Enterprise Funds are required to maintain prescribed amounts of
resources that can be used only to service outstanding debt. Some of the proceeds from debt or from
funds received from acquisition of Municipal Utility Districts are restricted for use on capital projects.
Revenue bond debt service $ 6,363,762
Customer deposits 3,889,815
Capital improvements 102,291,319
Total $ 112,544,896
Note 3 - Receivables
Receivables at September 30, 2019, consisted of the following:
Primary Government:
Governmental Funds:
Debt Service
Capital
Pearland
Economic
Development
Tax Increment
Reinvestment
Non-major
Governmental
Receivables
Property taxes, including
General Fund Fund Projects Fund Corporation Zone #2 Funds T otal
penalties and interest $ 569,152 $ 949,143 $ - $ - $ - $ - $ 1,518,295
Lease receivable - 6,744,981 - - - - 6,744,981
Sales and other taxes 5,230,611 - - 1,889,220 - 414,514 7,534,345
Interest 36,160 2,728 10,233 27,414 - 1,290 77,825
Other 1,231,987 - 3,510,986 3,427,575 70,737 1,619,358 9,860,643
Allowance for uncollectibles (17,752) (29,916) - - - - (47,668)
$ 7,050,158 $ 7,666,936 $ 3,521,219 $ 5,344,209 $ 70,737 $ 2,035,162 $ 25,688,421
Governmental funds report receivables for revenues that are not considered to be available to liquidate
liabilities of the current period. At the end of the current fiscal year, the various components of unavailable
and unearned revenue reported in the governmental funds were as follows:
Unavailable Unearned
Delinquent property taxes receivable - general fund $ 548,691 $ -
Delinquent property taxes receivable - debt service fund 914,938 -
Lease revenues-principal 5,973,978 -
Street assessments 1,486,878 -
Other 3,421,643 1,622,513
Lease interest revenues - 771,003
Grants and revenues prior to meeting all eligibility requirements - 581,131
Total $ 12,346,128 $ 2,974,647
Page 99 of 249
53 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 3 - Receivables (continued)
Proprietary Funds:
Business-type Activities - Enterprise Funds
Governmental
Activities -
Receivables
Water and
Sewer Fund
Solid Waste
Fund Total
Internal Service
Fund
Customer accounts $ 11,800,331 $ 1,994,781 $ 13,795,112 $ -
Interest 36,480 - 36,480 -
Other 1,189,359 - 1,189,359 102,221
Allowance for
uncollectibles (98,524) (18,054) (116,578) -
$ 12,927,646 $ 1,976,727 $ 14,904,373 $ 102,221
Property Taxes
Property taxes are levied by October 1 in conformity with Subtitle E, Texas Property Tax Code. Taxes are
due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year
in which imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all
taxes, penalties, and interest ultimately imposed. The Central Appraisal District ("CAD") of Brazoria
County, Harris County, and Fort Bend County, Texas, establishes appraised values. Taxes are levied by
the City Council based on the appraised values and operating needs of the City. The City contracts billing
and collection of tax levies with the Brazoria County Tax Assessor-Collector.
Note 4 - Capital Assets
A summary of changes in the primary government’s capital assets for the year ended September 30, 2019,
follows:
Balance
September 30, (Decreases)
and
Balance
September 30,
Governmental Activities
2018 Increases Reclassifications 2019
Capital assets not being depreciated:
Land $ 31,161,169 $ 4,566 $ - $ 31,165,735
Construction in progress 110,735,700 37,602,377 (2,670,600) 145,667,477
Total capital assets not being depreciated 141,896,869 37,606,943 (2,670,600) 176,833,212
Other capital assets:
Infrastructure 1,018,136,839 16,273,925 1,189,615 1,035,600,379
Buildings and improvements 109,810,957 701,538 (46,490) 110,466,005
Machinery and equipment 23,425,809 1,497,744 776,629 25,700,182
Furniture and fixtures 8,119,312 158,660 (23,300) 8,254,672
Total other capital assets 1,159,492,917 18,631,867 1,896,454 1,180,021,238
Less accumulated depreciation for:
Infrastructure (399,034,922) (32,020,376) (375,253) (431,430,551)
Buildings and improvements (38,304,947) (3,678,040) 17,166 (41,965,821)
Machinery and equipment (15,122,038) (1,804,043) 564,200 (16,361,881)
Furniture and fixtures (5,166,221) (983,076) - (6,149,297)
Total accumulated depreciation (457,628,128) (38,485,535) 206,113 (495,907,550)
Other capital assets, net 701,864,789 (19,853,668) 2,102,567 684,113,688
Totals $ 843,761,658 $ 17,753,275 $ (568,033) $ 860,946,900
Page 100 of 249
54 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 4 - Capital Assets (continued)
Balance
September 30,
(Decreases) Balance
and September 30,
2018 Increases Reclassifications 2019
Business-type Activities
Capital assets not being depreciated:
Land $ 3,796,382 $ - $ - $ 3,796,382
Construction in progress 84,111,268 22,948,637 (8,530,144) 98,529,761
Total capital assets not being depreciated 87,907,650
22,948,637 (8,530,144) 102,326,143
Other capital assets:
Water and sewer system
351,804,043
4,548,087 8,079,640 364,431,770
Buildings and improvements 32,268,698 - - 32,268,698
Machinery and equipment 5,521,981 15,572 (188,663) 5,348,890
Furniture and fixtures 127,521 - - 127,521
Contractual water rights 34,511,428 - - 34,511,428
Total other capital assets 424,233,671
4,563,659 7,890,977 436,688,307
Less accumulated depreciation for:
Water and sewer system (127,503,877) (8,768,967) (7,498) (136,280,342)
Buildings and improvements (7,750,899) (735,269) - (8,486,168)
Machinery and equipment (3,980,332) (438,776) 188,663 (4,230,445)
Furniture and fixtures (112,757) (4,372) - (117,129)
Contractual water rights (14,175,925) (1,375,068) - (15,550,993)
Total accumulated depreciation (153,523,790)
(11,322,452) 181,165 (164,665,077)
Other capital assets, net 270,709,881
(6,758,793) 8,072,142 272,023,230
Totals $ 358,617,531
$ 16,189,844 $ (458,002) $ 374,349,373
Depreciation was charged to programs as follows:
General government $ 2,425,174
Public safety 2,015,597
Public works 32,502,072
Community services 184,206
Parks and recreation 1,358,486
Total Governmental Activity $ 38,485,535
Water and sewer
Total Business-Type Activity
$ 11,322,452
$ 11,322,452
Page 101 of 249
55 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 4 - Capital Assets (continued)
The City had active construction projects as of September 30, 2019. The projects included various
improvements to streets, drainage and facilities as well as and water and sewer improvements. At year-
end, the City's contractual commitments on projects were as follows:
Project Description
Contract
Total In
Progress
Remaining
Commitment
Drainage Improvement $ 20,628,454 $ 15,089,622 $ 5,538,832
Building Improvements 49,723,789 23,350,386 26,373,403
Street Improvement 135,296,577 83,735,553 51,561,024
Park Improvements 35,187,889 23,491,916 11,695,973
Total Governmental Activities 240,836,709 145,667,477 95,169,232
Water and Sewer Improvements 209,183,295 98,529,761 110,653,534
Total Primary Government $ 450,020,004 $ 244,197,238 $ 205,822,766
Note 5 - Long-Term Debt
A. Governmental Activity Debt
The City issues general obligation bonds and certificates of obligation, and upon annexation and dissolution
of Municipal Utility Districts, assumes unlimited tax and revenue obligations. The assumed obligations were
used to acquire and construct major capital facilities. General obligation bonds, certificates of obligation, and
assumed obligations from dissolved and annexed areas are for both governmental and business-type
activities. The bonds are reported in the Proprietary Funds only if they are expected to be repaid from
proprietary revenues. The general long-term bonds, certificates of obligation and assumed obligations are
paid through the Debt Service Fund from tax revenues.
The City’s component units, which are considered blended components units, have revenue bonds used to
acquire and construct or to reimburse developers for major capital improvements. Revenue bonds are paid
through the Pearland Economic Development Corporation from sales tax and through the Development
Authority of Pearland from property tax increment.
The Tax Increment Contract Revenue Bonds, Series 2018 were issued in November 2018 in the
amount of $5,835,000 for developer reimbursements of TIRZ infrastructure improvements. The bonds
bear an all cost true interest rate of 3.41 percent and are due in installments ranging from $395,000 to
$630,000 through September 1, 2029.
The Certificates of Obligation, Series 2019A were issued in August 2019 in the amount of $4,465,000
for construction and improvements to certain streets, roads, and intersections, certain improvements to
the recreation center and natatorium, and improvements to facilities for the Orange Street Service
Center. The certificates bear interest from 3.00 percent to 4.00 percent and are due in annual
installments ranging from $220,000 to $255,000 through March 1, 2039.
The Certificates of Obligation, Series 2019B were issued in August 2019 in the amount of $11,980,000
for certain improvements to parks, including Shadow Creek Ranch Park, improvements to Fire Station
#8, and improvements to the Shadow Creek Library. The certificates bear interest of 5.00 percent and
mature on March 1, 2030.
Page 102 of 249
56 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
A. Governmental Activity Debt (continued)
The Permanent Improvement & Refunding Bonds, Series 2019 were issued in August 2019 in the
amount of $15,755,000 for construction and improvements to the City drainage system and City
facilities, and refunding certain outstanding obligations. The bonds bear interest from 4.00 percent to
5.00 percent and are due in annual installments ranging from $275,000 to $2,470,000 through March 1,
2039. The refunding proceeds were used to purchase U.S. Government securities and theses
securities were placed in an irrevocable escrow agent to provide for future debt service on $12,325,000
of refunded bonds Certificate of Obligations, Series 2007 of $3,285,000 and Certificate of Obligation,
Series 2010A of $9,040,000. As a result, the refunded bonds are considered to be defeased and the
related liability for the bonds has been removed from the City’s liabilities. The reacquisition price
exceeded the net carrying amount of the old debt by $235,060, which is also known as refunding
charge. This amount is being netted against the new debt and amortized over the life of the new debt,
which was equal or shorter than the refunded debt. This resulted in an economic gain (difference
between present values of the old and new debt service payment) of $1,042,043.
During the fiscal year the City had a $10,845,000 early redemption (defeasance) of Sales Tax Revenue
Refunding Bonds, Series 2016. The City recorded the cash defeasance as debt service principal
expenditures in the fund financial statements. The amount of interest saving as a result of the early
redemption was $1,682,510.
The following is a summary of changes in the City's total governmental long-term liabilities for the year
ended September 30, 2019. In general, the City uses the General and Debt Service funds as well as the
Economic Development Corporation and Development Authority to liquidate governmental long-term
liabilities.
Balance
September 30,
2018
Additions
(Reductions)
Balance
September 30,
2019
Amounts
Due Within
One Year
Governmental Activities
Bonds payable:
General obligation bonds $ 278,175,000 $ 15,755,000 $ (24,410,000) $ 269,520,000 $ 16,150,000
Certificates of obligation 41,750,000 16,445,000 (6,575,000) 51,620,000 3,330,000
Sales tax revenue bonds 12,845,000 - (11,095,000) 1,750,000 250,000
Tax increment revenue bonds
Unamortized premium/
85,180,000 5,835,000 (7,700,000) 83,315,000 7,350,000
(discount) 23,844,210 6,256,743 (3,462,210) 26,638,743 -
Total bonds payable 441,794,210 44,291,743 (53,242,210) 432,843,743 27,080,000
Other liabilities:
Obligations under capital leases 1,281,527 36,181 (556,677) 761,031 367,691
Compensated absences 7,249,494 4,741,274 (4,712,241) 7,278,527 1,358,243
Total Governmental Activities $ 450,325,231 $ 49,069,198 $ (58,511,128) $ 440,883,301 $ 28,805,934
Long-term liabilities applicable to the City's governmental activities are not due and payable in the
current period, and accordingly, are not reported as fund liabilities in the governmental funds. Interest on
long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when
due.
The full amount estimated to be required for debt service on general obligation debt is provided by (1) the
debt service portion of the tax levy; (2) interest earned in the Debt Service Fund; and (3) transfers from
the Water and Sewer Enterprise Fund. Transfers from the Enterprise Funds are approved at the discretion
of City Council and are not intended to service a specific bond series.
Page 103 of 249
57 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
A. Governmental Activity Debt (continued)
A summary of the terms of general obligation bonds and certificates of obligation, as of September 30,
2019, follows:
Series
Original
Issue
Matures
Interest
Rate (%)
Debt
Outstanding
General Obligation Bonds
Permanent Improvement & Refunding Bonds, Series 2009 16,735,000 2020 2.00-5.00 $ 615,000
Permanent Improvement Bonds, Series 2011 5,400,000 2036 2.125-4.125 4,240,000
Permanent Improvement Refunding Bonds, Series 2012 43,575,000 2029 3.00-5.00 32,410,000
Permanent Improvement Bonds, Series 2013 9,315,000 2038 3.00-5.00 7,520,000
Permanent Improvement & Refunding Bonds, Series 2014 40,410,000 2034 2.00-5.00 34,795,000
Permanent Improvement Refunding Bonds, Series 2015 47,165,000 2032 2.00-5.00 43,940,000
Permanent Improvement Bonds, Series 2015 8,495,000 2035 2.00-4.00 6,795,000
Permanent Improvement Refunding Bonds, Series 2015A 10,210,000 2029 2.00-3.00 6,565,000
Permanent Improvement & Refunding Bonds, Series 2016A 33,275,000 2036 2.00-5.00 30,810,000
Permanent Improvement Refunding Bonds, Series 2016B 29,840,000 2031 2.00-5.00 25,135,000
Permanent Improvement & Refunding Bonds, Series 2017 56,900,000 2037 2.00-5.00 53,745,000
Permanent Improvement Bonds, Series 2018 7,440,000 2038 2.50-5.00 7,065,000
Permanent Improvement & Refunding Bonds, Series 2019 15,755,000 2039 4.00-5.00 15,755,000
Annexed Municipal Utility District Bonds
BC MUD 4 Series 2011 2,640,000 2020 2.50-5.00 130,000
Total General Obligation Bonds $ 269,520,000
Certificates of Obligation
Certificates of Obligation, Series 2009 8,520,000 2020 2.25-5.00 $ 325,000
Certificates of Obligation, Series 2009A 12,145,000 2020 2.00-4.50 635,000
Certificates of Obligation, Series 2011 2,095,000 2021 2.09 420,000
Certificates of Obligation, Series 2013 2,745,000 2038 3.00-4.625 2,240,000
Certificates of Obligation, Series 2014 4,625,000 2034 2.00-4.00 3,470,000
Certificates of Obligation, Series 2015 4,860,000 2035 2.00-4.00 3,880,000
Certificates of Obligation, Series 2016 13,995,000 2036 2.00-4.00 11,895,000
Certificates of Obligation, Series 2017 6,205,000 2037 2.00-4.00 5,580,000
Certificates of Obligation, Series 2018 7,085,000 2038 2.00-5.00 6,730,000
Certificates of Obligation, Series 2019A 4,465,000 2039 3.00-4.00 4,465,000
Certificates of Obligation, Series 2019B 11,980,000 2030 5.00 11,980,000
Total Certificates of Obligation $ 51,620,000
Page 104 of 249
58 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
A. Governmental Activity Debt (continued)
A summary of the terms of the revenue bonds recorded as long-term liabilities in the Pearland Economic
Development Corporation and Development Authority of Pearland as of September 30, 2019, is as
follows:
Series
Original Issue
Matures
Interest
Rate (%)
Debt
Outstanding
Pearland Economic Development Corporation
Sales Tax Revenue Refunding Bonds, Series 2016 $ 14,640,000 2030 2.36 $ 1,750,000
Development Authority of Pearland
Tax Increment Revenue Bonds, Series 2013 9,150,000 2029 3.77 6,765,000
Tax Increment Revenue Bonds, Series 2014 8,060,000 2029 3.00 5,400,000
Tax Increment Revenue Bonds, Series 2015 66,030,000 2029 3.00 48,340,000
Tax Increment Revenue Bonds, Series 2016 12,320,000 2029 2.22 9,945,000
Tax Increment Revenue Bonds, Series 2017 8,555,000 2029 3.13 7,425,000
Tax Increment Revenue Bonds, Series 2018 5,835,000 2029 3.41 5,440,000
Total Component Unit Long-Term Debt $ 85,065,000
Prior Year Refunding
In prior years, the City defeased certain general obligation and other bonds by placing the proceeds of the
new bonds in an irrevocable trust to provide for all future debt service payments on the refunded bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's
financial statements. At September 30, 2019, the City did not have any previously refunded bonds
outstanding or outstanding refunding escrows.
Page 105 of 249
59 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
A. Governmental Activity Debt (continued)
Capital Lease Obligations
The City has entered into certain capital lease agreements in order to purchase public safety and
management information systems, equipment and other construction-related equipment. The capital lease
obligations are paid out of the General, Debt Service and Water and Sewer Funds. The historical purchase
price of the capital assets under lease is approximately $7.4 million and entirely classified as machinery
and equipment.
Following is a summary of future lease payments due on this equipment:
Fiscal Year Obligations
2020 $ 379,616
2021 212,807
2022 125,336
2023 64,434
Total 782,193
Less: Interest (21,162)
Obligations under capital leases $ 761,031
Page 106 of 249
60 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
A. Governmental Activity Debt (continued)
Capital Lease Obligations (continued)
The annual requirements to amortize governmental activity general obligation bonds and certificates of
obligation outstanding at September 30, 2019, were as follows:
General Obligation
Governmental Activities
Certificates of Obligation
Fiscal Year Principal Interest Principal Interest
2020 $ 16,150,000 $ 11,070,228 $ 3,330,000 $ 1,823,899
2021 17,465,000 10,397,667 2,370,000 1,791,676
2022 18,235,000 9,646,768 2,160,000 1,730,232
2023 18,885,000 8,829,193 2,155,000 1,669,319
2024 19,500,000 7,941,180 2,160,000 1,603,957
2025 20,290,000 7,032,692 2,175,000 1,531,881
2026 20,905,000 6,116,162 2,170,000 1,457,107
2027 21,690,000 5,150,068 2,180,000 1,376,956
2028 22,475,000 4,191,428 2,175,000 1,298,032
2029 23,255,000 3,247,130 2,180,000 1,222,387
2030 15,455,000 2,450,971 14,160,000 844,975
2031 15,925,000 1,850,960 2,180,000 468,918
2032 15,185,000 1,257,007 2,185,000 393,541
2033 6,310,000 828,688 2,185,000 319,243
2034 6,400,000 589,722 2,190,000 244,252
2035 4,400,000 381,788 1,960,000 172,715
2036 3,355,000 220,121 1,730,000 108,631
2037 2,220,000 105,763 1,025,000 58,694
2038 1,140,000 35,531 725,000 23,969
2039 280,000 5,600 225,000 4,500
$ 269,520,000 $ 81,348,667 $ 51,620,000 $ 18,144,884
Page 107 of 249
61 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
A. Governmental Activity Debt (continued)
Capital Lease Obligations (continued)
The annual requirements to amortize blended component unit revenue bonds outstanding at September
30, 2019, were as follows:
Governmental Activities
Sales Tax Revenue Bonds Tax Increment Revenue Bonds
Fiscal Year Principal Interest Principal Interest
2020
$ 250,000 $ 41,300
$ 7,350,000 $ 2,303,495
2021 250,000 35,400 7,550,000 2,102,129
2022 250,000 29,500 7,760,000 1,895,150
2023 250,000 23,600 7,975,000 1,679,674
2024 250,000 17,700 8,195,000 1,460,178
2025 250,000 11,800 8,420,000 1,234,157
2026 250,000 5,900 8,650,000 1,001,497
2027 - - 8,890,000 762,008
2028 - - 9,135,000 515,391
2029 - - 9,390,000 261,508
$ 1,750,000 $ 165,200 $ 83,315,000 $ 13,215,187
B. Business-type Activity Debt
The Water and Sewer System Revenue Bonds, Series 2019A were issued in August 2019 in the amount
of $21,000,000. The bonds bear interest from 0.00 percent to 1.14 percent, due to the Texas Water
Development Board subsidy and are due in annual installments of $700,000 through September 1, 2049.
The Water and Sewer System Revenue & Refunding Bonds, Series 2019B were issued in August 2019 in
the amount of $34,590,000. The bonds bear interest from 4.00 percent to 5.00 percent and are due in
annual installments ranging from $580,000 to $5,065,000 through September 1, 2039. Proceeds of the
bonds will be used for waterworks and sanitary sewer system improvements and to refund certain
obligations of the City. The refunding proceeds were used to purchase U.S. Government securit ies and
theses securities were placed in an irrevocable escrow agent to provide for future debt service on
$27,250,000 of refunded bonds Water and Sewer System Revenue Bonds, Series 2007 of $11,390,000
and Water and Sewer System Revenue Bonds, Series 2010A of $15,860,000. As a result, the
refunded bonds are considered to be defeased and the related liability for the bonds has been removed
from the City’s liabilities. The reacquisition price exceeded the net carrying amount of the old debt by
$613,010, which is also known as refunding charge. This amount is being netted against the new debt
and amortized over the life of the new debt, which was equal or shorter than the refunded debt. This
resulted in an economic gain (difference between present values of the old and new debt service
payment) of $2,174,196.
Page 108 of 249
62 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
B. Business-type Activity Debt (continued)
The following is a summary of changes in the City's total business-type long-term liabilities for the year
ended September 30, 2019.
Balance
September 30,
2018
Additions
(Reductions)
Balance
September 30,
2019
Amounts
Due Within
One Year
Business-type Activities
Bonds payable:
Permanent Improvement Bonds
$ 4,845,000
$ -
$ (365,000)
4,480,000
370,000
Water and sewer revenue bonds
Unamortized premium/
214,705,000 55,590,000 (37,880,000) 232,415,000 11,770,000
(discount) 10,896,823 7,069,135 (1,158,419) 16,807,539 -
Total bonds payable 230,446,823 62,659,135 (39,403,419) 253,702,539 12,140,000
Other liabilities:
Obligations under capital leases
172,828
- (86,662)
86,166
86,132
Compensated absences 780,156 527,628 (467,233) 840,551 188,779
Total Business-type Activities $ 231,399,807 $ 63,186,763 $ (39,957,314) $ 254,629,256 $ 12,414,911
The business-type activity long-term debt will be repaid, plus accrued interest, from operating revenues of
the Water and Sewer Fund. The City is required by the applicable revenue bond indentures to pledge the
net revenues of the Water and Sewer Fund for the retirement of its outstanding revenue bonds, including
interest thereon. Revenue bonds and refunding bonds are payable solely from and, equally secured by, a
first lien on and pledge of the net revenue of the City's Water and Sewer Fund.
A summary of the terms of revenue bonds and permanent improvement bonds recorded in the Enterprise
Funds as of September 30, 2019, is as follows:
Series
Original Issue
Matures
Interest
Rate (%)
Debt
Outstanding
Water and Wastewater Fund
Water & Sewer System Adjustable Rate Revenue Bonds,
Series 1999
$ 8,000,000
2020
4.41-4.60
$ 610,000
Water & Sewer System Refunding Bonds, Series 2010B 8,970,000 2023 1.75-4.00 445,000
Permanent Improvement and Refunding Bonds, Series 2012 6,230,000 2025 3.00-5.00 4,480,000
Water & Sewer System Revenue Bonds, Series 2012 8,670,000 2037 2.00-3.625 5,060,000
Water & Sewer System Revenue Bonds, Series 2014 9,210,000 2039 2.00-4.00 8,205,000
Water & Sewer System Revenue Bonds, Series 2016A 8,880,000 2036 2.00-4.00 7,545,000
Water & Sewer System Revenue Bonds, Series 2016B 11,100,000 2025 2.00-4.00 7,405,000
Water & Sewer System Revenue Bonds, Series 2016C 50,100,000 2045 2.00-4.00 44,520,000
Water & Sewer System Revenue Bonds, Series 2017A 10,225,000 2027 0.00-1.29 8,210,000
Water & Sewer System Revenue Bonds, Series 2017B
Water & Sewer System Revenue & Refunding Bonds,
Series 2017C
12,025,000
60,970,000
2047
2037
0.00-2.10
2.00-5.00
11,345,000
57,025,000
Water & Sewer System Revenue Bonds, Series 2018A 8,650,000 2048 0.47-2.07 8,360,000
Water & Sewer System Revenue Bonds, Series 2018B 19,050,000 2038 2.00-5.00 18,095,000
Water & Sewer System Revenue Bonds, Series 2019A
Water & Sewer System Revenue & Refunding Bonds,
Series 2019B
21,000,000
34,590,000
2049
2039
0.00-1.14
4.00-5.00
21,000,000
34,590,000
Total Utility System Fund $ 236,895,000
Page 109 of 249
63 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 5 - Long-Term Debt (continued)
B. Business-type Activity Debt (continued)
The annual requirements to amortize Enterprise Fund revenue bonds and permanent improvement bonds
outstanding at September 30, 2019, were as follows:
Business-Type Activities
Revenue Bonds Permanent Improvement Bonds
Fiscal Year Principal Interest Principal Interest
2020 $ 11,770,000 $ 6,586,457 $ 370,000 $ 157,000
2021 11,985,000 6,313,918 370,000 142,200
2022 12,075,000 6,011,190 385,000 127,100
2023 12,915,000 5,693,434 395,000 111,500
2024 12,110,000 5,328,627 1,480,000 74,000
2025 12,385,000 4,997,784 1,480,000 22,200
2026 12,880,000 4,637,707 - -
2027 13,200,000 4,180,706 - -
2028 12,470,000 3,708,034 - -
2029 12,810,000 3,238,968 - -
2030 13,140,000 2,780,073 - -
2031 11,975,000 2,335,816 - -
2032 9,520,000 1,918,967 - -
2033 9,685,000 1,619,617 - -
2034 9,855,000 1,323,683 - -
2035 7,320,000 1,048,333 - -
2036 6,730,000 853,134 - -
2037 6,345,000 680,667 - -
2038 5,260,000 518,819 - -
2039 4,350,000 397,894 - -
2040 3,130,000 312,878 - -
2041 3,145,000 273,794 - -
2042 3,150,000 233,896 - -
2043 3,165,000 193,426 - -
2044 3,175,000 152,277 - -
2045 3,190,000 110,604 - -
2046 1,490,000 68,350 - -
2047 1,500,000 44,924 - -
2048 990,000 21,139 - -
2049 700,000 7,980 - -
$ 232,415,000 $ 65,593,096 $ 4,480,000 $ 634,000
C. Legal Compliance
Long-term debt assumed by the City upon dissolution of annexed municipal utility district in fiscal years
2006, 2007, and 2013 has been recorded as part of the City's long-term debt. A portion of the assumed
debt is related to assets recorded in the Water and Sewer Fund. Even though the debt is related to assets
recorded in the Water and Sewer Fund, the debt is considered general obligation debt based on Texas
law.
Page 110 of 249
64 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 6 - Interfund Transactions
A summary of interfund transfers, the purpose of which is to cover operational expenses/expenditures, for
the year ended September 30, 2019, is as follows:
Transfers In Transfers Out
General Fund $ 4,674,460 $ 3,994,725
Debt Service Fund 572,098 -
Capital Projects Fund 5,676,460 1,362,087
Pearland Economic Development
Corporation 184,186 164,742
Tax Increment Reinvestment Zone #2 - 17,146,455
Development Authority of Pearland 17,146,455 -
Non-major Governmental Funds 370 197,871
Water and Sewer Fund 834,754 12,199,151
Internal Service Fund 5,976,248 -
$ 35,065,031 $ 35,065,031
A summary of interfund receivables and payables at September 30, 2018, follows:
Receivable Fund Payable Fund Amount Purpose
Water and Sewer Fund General Fund $ 2,750,000 Short term loan
Note 7 - Fund Balance / Net Position
Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration for the General
Fund, special revenue funds, and capital projects funds. Certain amounts which were classified as
restricted, committed, or assigned for specific purposes have been encumbered in the governmental
funds.
Significant encumbrances, primarily for capital improvements and street maintenance, included in
governmental fund balances are as follows:
Encumbrance
General Fund - assigned $ 1,520,940
Page 111 of 249
65 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 8 - Deferred Compensation Plan
The City maintains, for its employees, a tax-deferred compensation plan meeting the requirements of
Internal Revenue Code Section 457. The plan was established in the 1995 fiscal year by City Ordinance,
and ICMA Retirement Corporation is the plan administrator. The deferred compensation is not available to
employees until termination, retirement, death, or unforeseen emergency. The plan's trust arrangements
are established to protect deferred compensation amounts of employees under the plan from any other use
other than intended under the plan (eventual payment to employees deferring the compensation) in
accordance with federal tax laws. Amounts of compensation deferred by employees under plan provisions
are disbursed bi-weekly by the City to a third-party administrator. The third-party administrator handles all
funds in the plan and makes investment decisions and disburses funds to employees in accordance with
plan provisions.
Note 9 - Employee Retirement System
Texas Municipal Retirement System
Plan Description and Provisions
The City participates as one of 887 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8,
Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for
municipal employees in the State of Texas. The TMRS Act places the general administration and
management of the System with a six-member Board of Trustees. Although the Governor, with the
advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of
Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal
Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that
can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and
the city-financed monetary credits with interest were used to purchase an annuity. Members may
choose to receive their retirement benefit in one of seven actuarially equivalent payments options.
Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an
amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits
and interest.
At the date the plan began, the City granted monetary credits for service rendered before the plan
began of a theoretical amount equal to two times what would have been contributed by the employee,
with interest, prior to establishment of the plan. Monetary credits for service since the plan began are
200% of the employee's accumulated contributions.
Page 112 of 249
66 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 - Employee Retirement System (continued)
Benefits Provided (continued)
A summary of plan provisions for the City are as follows:
Employee deposit rate: 7%
Matching ratio (city to employee): 2 to 1
Years required for vesting: 5
Service retirement eligibility: 20 years at any age, 5 years at age 60 and above
Updated service credit: 100% repeating
Annuity increase to retirees: 70% of CPI repeating
Supplemental death benefit – employees
and retirees: Yes
At the December 31, 2018 valuation and measurement date, the following employees were covered by
the benefit terms:
Retirees or beneficiaries currently receiving benefits: 225
Inactive employees entitled to but not yet receiving benefits: 317
Active employees: 681
Total: 1,223
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings,
and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing
body of the city. Under the state law governing TMRS, the contribution rate for each city is determined
annually by the consulting actuary, using the Entry Age Normal (EAN) actuarial cost method. The
actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal
year. For fiscal year 2019, the City’s contribution rate was 13.55% for the months in 2018 and 13.30%
for the months in 2019.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2018, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of
that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2018 actuarial valuation was determined using the
following actuarial assumptions:
Inflation: 2.5% per year
Overall payroll growth: 3.0% per year
Investment Rate of Return: 6.75%, net of pension plan investment expense, including inflation
Page 113 of 249
67 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 - Employee Retirement System (continued)
Actuarial Assumptions (continued)
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with
male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements. For disabled annuitants,
the gender-distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments.
These actuarial assumptions were developed primarily from the actuarial investigation of the
experience of TMRS over the four year period from December 31, 2010 to December 31, 2014. They
were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement
mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the
Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In
conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the
Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Assumptions
are reviewed annually. No additional changes were made for the 2018 valuation.
The long-term expected rate of return on pension plan investments is 6.75%. The pension plan’s policy
in regard to the allocation of invested assets is established and may be amended by the TMRS Board
of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital
appreciation as well as the production of income, in order to satisfy the short -term and long-term
funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long -term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term
Expected Real
Rate of Return
Asset Class Target Allocation (Arithmetic)
U.S. equities 17.5% 4.30%
International equities 17.5% 6.10%
Core fixed income 10.0% 1.00%
Non-core fixed income 20.0% 3.39%
Real estate 10.0% 3.78%
Real return 10.0% 4.44%
Absolute return 10.0% 3.56%
Private equity 5.0% 7.75%
Total 100.0%
Page 114 of 249
68 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 - Employee Retirement System (continued)
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that employee contributions will remain at the current 7%
and employer contributions will be made at the rates specified in statute. Based on that assumption, the
pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the Total Pension
Liability.
Changes in the Net Pension Liability
Total Pension
Plan Fiduciary
Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 12/31/2017 $ 145,424,516 $ 127,368,923 $ 18,055,593
Changes for the year:
Service cost 7,869,363 - 7,869,363
Interest 9,914,570 - 9,914,570
Difference between
expected and actual
experience 41,404 - 41,404
Changes in assumptions - - -
Contributions - employer - 6,225,163 (6,225,163)
Contributions - employee - 3,216,353 (3,216,353)
Net investment income - (3,818,135) 3,818,135
Benefit payments,
including refunds, of
employee contributions (4,953,354) (4,953,354) -
Administrative expense - (73,737) 73,737
Other charges - (3,853) 3,853
Net changes 12,871,983 592,437 12,279,546
Balance at 12/31/2018 $ 158,296,499 $ 127,961,360 $ 30,335,139
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%,
as well as what the City’s net pension liability would be if it were calculated using a discount rate that is
1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease
Current Single
Rate
Assumption
1% Increase
to 5.75% 6.75% to 7.75%
City's net pension liability $ 57,412,147 $ 30,335,139 $ 8,624,573
Page 115 of 249
69 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 9 - Employee Retirement System (continued)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources Related to Pensions
For the year ended September 30, 2019, the City recognized pension expense of $8,840,233.
At September 30, 2019, the City reported deferred outflows and inflows of resources related to
pensions from the following sources:
Differences between actuarial
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Contributions subsequent to
Deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date of $4,937,786 will be recognized as a reduction of the net pension liability for the
measurement year ending December 31, 2019 (i.e. recognized in the city’s financial statements
September 30, 2020). Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Fiscal Year
Net Deferred
Outflows (Inflows)
of Resources
2020 $ 2,573,766
2021 1,241,050
2022 1,085,036
2023 2,494,265
2024 4,569
Total $ 7,398,686
assumptions and actual
experience
$ 866,010 $ -
Changes in actuarial assumptions used
Differences between projected
and actual investment earnings
- 87,868
6,620,544 -
the measurement date 4,937,786 -
Total $ 12,424,340 $ 87,868
Page 116 of 249
70 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 - Other Post-Employment Benefits
TMRS Supplemental Death Benefits Fund
Benefit Plan Description
The City also participates in the cost sharing multiple-employer defined benefit group-term life insurance
plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death
Benefits Fund (SDBF). The City elected, by ordinance, to provide group-term life insurance coverage to
both current and retired employees. The City may terminate coverage under and discontinue participation
in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January
1.
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period
preceding the month of death); retired employees are insured for $7,500; this coverage is another post-
employment benefit (OPEB). As the SDBF covers both active and retiree participants, with no segregation
of assets, the SDBF is considered to be an unfunded OPEB plan (i.e. no assets are accumulated).
Membership in the plan as of the measurement date of December 31, 2018 was as follows:
Inactive employees currently receiving benefits 160
Inactive employees entitled to but not yet receiving benefits 102
Active employees 681
Total 943
Contributions
Contributions are made monthly based on the covered payroll of employee members of the participating
member city. The contractually required contribution rate is determined annually for each city (currently
0.12% of covered payroll). The rate is based on the mortality and service experience of all employees
covered by the SDBF and the demographics specific to the workforce of the city. There is a one-year delay
between the actuarial valuation that serves as the basis for the employer contribution rate and the calendar
year when the rate goes into effect. The funding policy of this plan is to assure that adequate resources
are available to meet all death benefit payments for the upcoming year; the intent is not to prefund retiree
term life insurance during employees’ entire careers. As such, contributions are utilized to fund active
member deaths on a pay-as-you-go basis; any excess contributions and investment income over
payments then become net position available for benefits.
Discount Rate
The TMRS SDBF program is treated as unfunded OPEB plan because the SDBF trust covers both active
employees and retirees and the assets are not segregated for these groups. Under GASB Statement No.
75, the discount rate for an unfunded OPEB plan should be based on 20-year tax-exempt AA or higher
Municipal Bonds. Therefore, a discount rate of 3.71% based on the 20 Year Bond GO Index published by
bondbuyer.com is used as of the measurement date of December 31, 2018.
Page 117 of 249
71 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 - Other Post-Employment Benefits (continued)
TMRS Supplemental Death Benefits Fund (continued)
Plan Assets
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75.
Actuarial Assumptions
The City’s total OPEB liability was measured at December 31, 2018 and was determined by an actuarial
valuation as of that date using the following actuarial assumptions:
Valuation Date: December 31, 2018
Methods and Assumptions:
Inflation: 2.50%
Salary Increases: 3.50% to 10.50%, including inflation
Discount rate: 3.71%. The discount rate was based on the Fidelity Index’s “20-
Year Municipal GO AA Index” rate as of December 31, 2017.
Retirees’ share of benefit related costs: $0
Administrative expenses: All administrative expenses are paid through the Pension Trust
and accounted for under reporting requirements under GASB
Statement No. 68.
Mortality rates – service retirees: RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female rates
multiplied by 103% and projected on a fully generational basis
with scale BB.
Mortality rates – disabled retirees: RP2000 Combined Mortality Table with Blue Collar Adjustment
with male rates multiplied by 109% and female rates multiplied
by 103% with a 3 year set-forward for both males and females.
The rates are projected on a fully generational basis with scale
BB to account for future mortality improvements subject to the
3% floor.
Other Information
The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an
actuarial experience study for the period December 31, 2010 to December 31, 2014.
Changes in the Total OPEB Liability
Service cost $ 82,690
Interest 41,463
Difference between expected
and actual experience 143,594
Changes of assumptions (99,775)
Benefit payments (4,594)
Net change in total OPEB liability 163,378
Total OPEB liability - beginning 1,213,598
Total OPEB liability - ending $ 1,376,976
Page 118 of 249
72 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 - Other Post-Employment Benefits (continued)
TMRS Supplemental Death Benefits Fund (continued)
Sensitivity Analysis
The following presents the total OPEB liability of the employer, calculated using the discount rate of 3.71%,
as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1
percentage point lower (2.71%) or 1 percentage point higher (4.71%) than the current rate. Note that the
healthcare cost trend rate does not affect the total OPEB liability, so sensitivity to the healthcare cost trend
rate is not shown.
1% Decrease to
2.71%
Current Discount
Rate Assumption
3.71%
1% Increase to
4.71%
$ 1,648,801 $ 1,376,976 $ 1,169,863
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB Activity
For the year ended September 30, 2019, the City recognized OPEB expense of $145,734. As of
September 30, 2019, the City reported deferred outflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected
and actual experience $ 123,623 $ -
Changes assumptions 80,375 85,898
Contributions subsequent to
the measurement date 3,706 -
Total $ 207,704 $ 85,898
The $3,706 reported as deferred outflows of resources related to OPEB resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the
year ending September 30, 2020. Amounts currently reported as deferred outflows of resources related to
OPEB, excluding contributions subsequent to the measurement date, will be recognized in OPEB expense
as follows:
Net deferred
Fiscal
Year
outflows (inflows)
of resources
2020 $ 21,581
2021 21,581
2022 21,581
2023 21,581
2024 21,581
Thereafter 10,195
Total $ 118,100
Page 119 of 249
73 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 - Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP)
Plan Description
The City’s defined benefit OPEB plan, City of Pearland Retiree Health Care Plan (RHCP), provides
OPEB through an implicit healthcare premium for retirees for all permanent full-time employees of the
City. RHCP is a single-employer defined benefit OPEB plan administered by the City. At this time, no
assets are accumulated in a trust to fund the future requirements of the RHCP.
Benefits provided
Retirees who are entitled to receive retirement benefits under the City’s retirement plan may purchase
continued health benefits coverage for the retiree and the retiree’s dependents, but shall pay 100% of the
premium for coverage. The retiree, however, is able to receive a lower rate by participating in the City’s
plan as opposed to individually purchasing health insurance. The City’s coverage is secondary to Medicare
when the person becomes eligible for these benefits.
Employees covered by benefit terms. At October 1, 2017, the actuarial valuation date, the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefit payments: 8
Inactive employees entitled to but not yet receiving benefit payments: 0
Active employees: 643
Total 651
Total OPEB Liability
The City’s total OPEB liability of $4,415,018 was measured as of September 30, 2019, and was
determined by an actuarial valuation as of October 1, 2017.
Actuarial assumptions and methods
The total OPEB liability was determined using the following actuarial assumptions, applied to all periods
included in the measurement, unless otherwise specified:
Valuation Date: October 1, 2017
Measurement Date: September 30, 2019
Methods and Assumptions:
Discount Rate: 3.58% per annum, which includes inflation
Inflation: 2.50% per annum
Salary Increases: 3.00% average which includes inflation
Healthcare cost trend rates: 5.70% initial medical trend rate for retirees decreasing to an ultimate
rate of 3.81% in the year 2073
Mortality rates were updated and are based upon the RP-2014h sex distinct mortality improvement
table with generational mortality improvement scale MP-2018.
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CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 - Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP) (continued)
Discount Rate
The discount rate of 3.58% is based upon the yield of 20-year tax-exempt general obligation municipal
bonds with an average rating of AA/Aa or higher. The other financial assumptions for long-term
inflation, payroll growth, and salary scale were taken from the TMRS actuary study. The per capita
claims costs and how these costs are expected to escalate in the future were set by HUB International
who develops the funding rates.
Plan Assets
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75.
Changes in the Total OPEB Liability
The retiree medical plan sponsored by the City is offered to all former employees who satisfy the
retirement eligibility provisions of the plan, however only a grandfathered group of employees and
retirees are eligible for a subsidy which is based upon accrued service with the City as of October 1,
2006 and or the number of years of City service at retirement. The following table shows the changes in
total OPEB liability:
Service cost $ 295,552
Interest 157,119
Changes of assumptions 101,145
Benefit payments (66,167)
Net change in total OPEB liability 487,649
Total OPEB liability at 9/30/2018 3,927,369
Total OPEB liability at 9/30/2019 $ 4,415,018
Assumption Changes. Since the prior full valuation as of October 1, 2017, the mortality improvement
scale was updated from MP-2016 to the MP-2018 table. Also, the per capita claims costs and trend
were updated to reflect recent experience and the discount rate was decreased from 3.75% to 3.58%
Sensitivity of the total OPEB liability to changes in the discount rate
The following presents the plan’s total OPEB liability, calculated using a discount rate of 3.75%, as well
as what the plan’s total OPEB liability would be if it were calculated using a discount rate that is one
percent lower or one percent higher:
1% Decrease to
2.58%
Current Discount
Rate Assumption
3.58%
1% Increase to
4.58%
$ 4,940,170 $ 4,415,018 $ 3,946,749
Page 121 of 249
75 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 10 - Other Post-Employment Benefits (continued)
Retiree Health Care Plan (RHCP) (continued)
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates
The following presents the plan’s total OPEB liability, calculated using the assumed trend rates as well
as what the plan’s total OPEB liability would be if it were calculated using a trend rate that is one
percent lower or one percent higher:
Current
Healthcare Cost
Trend Rate
1% Decrease to Assumption 1% Increase to
4.21% 5.21% 6.21%
$ 3,738,164 $ 4,415,018 $ 5,241,730
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended September 30, 2019, the City recognized OPEB expense of $524,959. At
September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Differences between
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
expected and actual
experience $ 258,451 $ -
Changes assumptions 117,441 -
Total $ 375,892 $ -
Amounts currently reported as deferred outflows of resources related to OPEB, excluding contributions
subsequent to the measurement date, will be recognized in OPEB expense as follows:
Fiscal
Year
Net deferred
outflows (inflow s)
of resources
2020 72,288
2021 72,288
2022 72,288
2023 72,288
2024 72,289
Thereafter 14,451
Total $ 375,892
Page 122 of 249
76 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 11 - Commitments and Contingencies
Litigation and Other Contingencies
The City was involved in various lawsuits and arbitration proceedings at September 30, 2019. The City and
its legal counsel believe that any amounts which the City might ultimately be required to pay will not
exceed underlying insurance coverage.
Reimbursements due to Developers/Business Assistance
Pursuant to the Local Government Code, the Economic Development Corporation offers incentives to
attract and retain businesses to Pearland. The following are the current incentives.
Original
Amounts Paid
Outstanding
Current Incentives Amount Prior Years Current Year Balance
KS Management-Grant $ 2,663,000 $ 1,183,560 $ 295,890 $ 1,183,550
KS Management-Sales Tax 600,000 66,196 19,340 514,464
Base Pair 2017 60,000 30,000 15,000 15,000
FloWorks Intl. (Shale-Inland) 350,000 210,000 - 140,000
M&S Logistics 60,000 38,000 - 22,000
Tool Flo 1,152,000 152,000 596,000 404,000
Lonza Phase 1 600,000 - 300,000 300,000
Lonza Phase 2 750,000 - - 750,000
Adient Medical 40,000 10,000 - 30,000
Endress+Hauser 525,000 - - 525,000
Keystone 189,000 - - 189,000
Diamond Bolt 27,500 27,500 - -
MHI 250,000 - - 250,000
Graham Ventures - Code Ninja 406,000 - - 406,000
Wilmar Oleo NA 116,000 - - 116,000
$ 7,788,500 $ 1,717,256 $ 1,226,230 $ 4,845,014
Lower Kirby Urban Center Master Plan
On June 10, 2013 Pearland adopted a 20/20 Strategic Plan to create a vision for the community’s future
growth. One of the strategies was to implement plans to develop the Lower Kirby Urban Center as
Pearland’s most intensive mixed-use employment, residential, and entertainment district. The Lower Kirby
Master Plan identified $48 million in priority construction projects that include drainage, water, sewer,
streets, traffic, sidewalks, and streetscape necessary to facilitate development of the area. On March 10,
2014, the City entered into a Master Financing Agreement with Lower Kirby Pearland Management District
and Pearland Municipal Management District which outlines the process for the City to advance funds to the
District(s) in order to facilitate the development. The City will be reimbursed from the District(s) from bond
sales as the area is developed and the Districts’ taxable values support bond issuances. Each project is
taken on a case by case basis and is approved via a Letter of Financing Agreement (LFA).
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CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 11 - Commitments and Contingencies (continued)
The following LFA’s have been approved by and between the City and the LKMD and the PMMD#1.
The City had receivable balances at September 30, 2019 of $3,421,643 relating to these LFA’s.
3/10/2014
Cost
Lower Kirby
Pearland
Management
District
Pearland
Municipal
Management
District #1
Detention Pond $ 1,947,753 0.0% $ - 27.7% $ 539,528
Master Drainage Plan 127,410 0.0% - 30.8% 39,268
Regional Drainage Plan 183,031 0.0% - 23.9% 43,717
Subtotal - 622,513
8/24/2015
South Spectrum PER
$ 214,137
57.4%
- 40.2%
86,124
9/12/2015
North Spectrum Traffic Signal
4/26/2016
TxDOT Ditch Acquisition
2/28/2017
South Spectrum West
5/8/2017
West Conveyance Pond
7/10/2017
288 Waterline & LK Park Improvements
5/8/2019
LK Regional Detention Property Acquisition
$ 318,525
$ 400,000
$ 5,755,789
$ 277,000
$ 1,189,000
$ 32,097
100.0% - 0.0% -
73.0% 292,000 27.0% 108,000
0.0% - 21.3% 1,228,378
0.0% - 88.8% 246,044
100.0% 1,189,000 0.0% -
0.0% - 100.0% 32,097
Total $ 1,481,000 $ 2,323,156
City funding for these LFA’s is via Reimbursement Agreements with the Pearland Economic
Development Corporation, whereby the City gets reimbursed for the cost of these projects by the
Corporation; so that the City is not actually out any dollars.
Chapter 380 Economic Development Agreements
The City had two sales tax incentive agreements in effect during the current fiscal year with Kelsey-Seybold
and Costco Wholesale Corporation. The City’s legal obligations and limitations relating to the sales tax
incentive agreements are outlined by the Texas Local Government Code, Title 12, Subtitle A, Chapter 380,
Miscellaneous Provisions Relating to Municipal Planning and Development.
Kelsey-Seybold (Kelsey) is a large multi-specialty clinic system located in the Greater Houston area
and is Houston’s largest and most renowned private multi-specialty physician group. The Kelsey
System is a major provider of healthcare for NASA and a center for healthcare research. The City of
Pearland and Pearland Economic Development Corporation made certain agreements with Kelsey to
relocate its administrative headquarters to Shadow Creek Ranch in Pearland. The headquarters is
located in a four story, 170,000-square-foot building at the intersection of Shadow Creek Parkway and
Kirby Drive. The headquarters had a cost of $36 million, including the costs for equipment, construction,
and fees. Construction began in May 2012 and Kelsey began operations at the site in October 2013.
The City of Pearland and the Pearland Economic Development Corporation (PEDC) each have a 10-
year sales tax incentive agreement with Kelsey that allows Kelsey to receive an incentive of 60% of the
sales tax remitted by Kelsey and its vendors. The agreements with the City and the PEDC requires
Kelsey to maintain a minimum of 600 jobs to be in place as an eligibility factor. To date the City and the
PEDC have paid $312,826 in sales tax incentives.
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78 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 11 - Commitments and Contingencies (continued)
Chapter 380 Economic Development Agreements (continued)
Costco Wholesale Corporation is a membership warehouse club that provides a wide selection of
merchandise. As of 2014, it is the second largest retailer in the United States and the third largest in the
world, and the largest membership warehouse club chain in the United States. The City of Pearland
agreed to provide Costco incentives to build a 150,000 square-foot retail warehouse with an attached
tire center and free-standing fuel facility. Total investment was estimated at $33.7M and the project
created approximately 75 full-time and 75 part-time jobs.
The agreement with Costco and the City of Pearland is to refund Costco a portion of the 1.0% of sales
tax collected by the City at the business location for a period not to exceed 10 years and an amount not
to exceed $750,000. Costco opened in November 2015, with the first payment made in fiscal year
2016. To date, the City has paid $488,580 in sales tax incentives.
Note 12 - Risk Management
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City’s risk management
program mainly encompasses obtaining property and liability insurance through Texas Municipal
League’s Intergovernmental Risk-Pool (TML-IRP), and through commercial insurance carriers. The
participation of the City in TML-IRP is limited to payment of premiums. The City has not had any
significant reduction in insurance coverage, and the amounts of insurance settlements have not
exceeded insurance coverage for any of the last three years.
The City also provides Workers’ Compensation insurance on its employees through TML-Workers’
Compensation Fund. Workers’ Compensation premiums are subject to change when audited by TML
Workers’ Compensation Fund. At fiscal year-end September 30, 2019, the City believed the amounts
paid on Workers’ Compensation would not change significantly from the amounts recorded.
Note 13 - Capital Lease
The City has a 20-year agreement to lease a facility to the University of Houston Clear Lake (UHCL),
which commenced in July 2010. Rent or lease payments are broken into two parts, debt service and
operating. For accounting purposes the City has classified the lease as a direct financing lease.
Because this lease is recorded in a governmental fund, the receivable is deferred and the distinction
between a sales and direct financing lease is not relevant at the fund level.
UHCL has an option to purchase the facility upon the commencement date of July 2010 until the 61st
day preceding the 20th anniversary of the commencement date.
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CITY OF PEARL AND, TEXAS
NOTES TO FINANCIAL STATEMENTS (continued)
Note 13 - Capital Lease (continued)
The lease payments related to debt service to be received coincide with debt service payments the City
is required to make on a bond that matures on March 1, 2029. At September 30, 2019, the future
minimum debt service lease payments to be received under the lease are as follows:
Fiscal year ending
September 30, Payment
2020 $ 771,581
2021 757,155
2022 737,205
2023 716,401
2024 695,169
2025-2029 3,131,979
Total $ 6,809,490
Note 14 - Prior Period Adjustments
In the current fiscal year, it came to management’s attention that a liability, representing surcharges
billed and collected and belonging to another entity, was understated. As a result, the beginning net
position of the City’s business-type activities and water and sewer fund have been restated on the
statement of activities (business-type activities) and statement of revenues, expenses and changes in
net position (water and sewer fund) to reflect the increase to this liability balance.
Net position at September 30, 2018,
as previously reported
Statement of
Activities
Business-type
Activities
$ 245,096,762
Statement of
Revenues,
Expenses and
Changes in Net
Position
Water and Sewer
Fund
$ 245,844,010
Increase in liability balance (2,045,898) (2,045,898)
Net position at October 1, 2018,
as restated
$ 243,050,864
$ 243,798,112
Note 15 - Subsequent Event
In November 2019, the Development Authority of Pearland issued $4,255,000 Tax Increment Contract
Revenue Bonds, Series 2019 to be used for developer reimbursement.
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Required Supplementary Information
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82 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended September 30, 2019
Budgeted Amounts
Variance with
Final Budget -
Positive
Adopted Amended Actual (Negative)
Revenues
Property taxes
$ 21,332,769
$ 22,952,305
$ 23,098,212
$ 145,907
Sales and use taxes 22,855,294 22,438,980 22,427,733 (11,247)
Franchise fees 7,296,694 7,272,488 7,244,497 (27,991)
Licenses and permits 3,785,535 3,882,850 4,198,551 315,701
Fees and forfeitures 2,110,750 2,452,750 2,528,927 76,177
Charges for services 17,617,566 16,899,459 17,149,571 250,112
Investment earnings 250,000 537,000 750,827 213,827
Intergovernmental - - - -
Other 983,806 1,150,895 1,167,832 16,937
Total Revenues 76,232,414 77,586,727 78,566,150 979,423
Expenditures
Current:
General government 9,946,347 10,494,725 10,288,113 206,612
Public safety 43,628,984 43,661,567 42,509,295 1,152,272
Public works 12,085,452 13,062,901 12,154,279 908,622
Community services 4,282,923 4,141,916 3,890,941 250,975
Parks and recreation
Debt Service:
Principal
6,256,810
520,496
6,133,683
520,496
5,892,670
528,212
241,013
(7,716)
Interest and other charges 22,355 22,355 14,638 7,717
Capital outlay 425,638 908,188 753,529 154,659
Total Expenditures
Excess (deficiency) of revenues
over expenditures
77,169,005
(936,591)
78,945,831
(1,359,104)
76,031,677
2,534,473
2,914,154
3,893,577
Other Financing Sources (Uses)
Transfers in 4,560,460 4,674,460 4,674,460 -
Transfers out (3,254,107) (3,811,203) (3,994,725) (183,522)
Total Other Financing Sources (Uses) 1,306,353 863,257 679,735 (183,522)
Net change in fund balances 369,762 (495,847) 3,214,208 3,710,055
Fund balances, beginning 13,987,642 13,987,642 13,987,642 -
Fund balances, ending $ 14,357,404 $ 13,491,795 $ 17,201,850 $ 3,710,055
Page 129 of 249
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CITY OF PEARLAND, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY BUDGET INFORMATION
Budgetary Compliance
The City has complied with all material budget requirements for the year ended September 30, 2019.
Annual appropriated budgets are adopted for the General, Special Revenue and Debt Service Funds,
using the same basis of accounting as for financial reporting. All annual appropriations lapse at fiscal
year-end. Project length budgets are adopted for the Capital Project Funds. The City, for management
control, approves a financial plan for the Enterprise Fund.
Expenditures may not legally exceed budgeted appropriations at the fund level (i.e. General Fund, Debt
Service Fund, etc.). Expenditure requests, which would require an increase in total budgeted
appropriations, must be approved by City Council through a formal budget amendment. At any time in
the fiscal year, the Council may make emergency appropriations to meet a pressing need for public
expenditure in order to protect the public health, safety, or welfare. The Council has the power to transfer
any unencumbered funds allocated by the budget from one activity, function, or department, to another
activity, function, or department, to re-estimate revenues and expenditures, and to amend the budget.
Because City Council adopts the budget at the fund level, management has the authority to transfer
available funds allocated by the budget from one function/department or activity to another function or
activity within the same department. In cooperation with the directors and department heads of the City,
the Budget Officer, the Director of Finance and the City Manager prepare an annual budget for the
General Fund, Special Revenue Funds and Debt Service Fund for the ensuing fiscal year, in a form
and style as deemed desirable by the City Manager. The City Manager shall submit to the Council, for
its review, consideration, and revision, both a letter describing the proposed new budget, as well as a
balanced budget for the forthcoming fiscal year, between 60 (sixty) and 90 (ninety) days prior to the
beginning of the fiscal year. The budget, as adopted, must set forth the appropriations for services,
functions, and activities of the various City departments and agencies, and shall meet all fund
requirements provided by law and required by bond covenants. Capital projects are budgeted on a
project-length basis.
Amounts reported in the accompanying financial statements represent the budgeted amount with all
supplemental appropriations.
Page 130 of 249
84 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM
Last Five Measurement Years
2018 2017 2016 2015 2014
Service cost $ 7,869,363 $ 7,548,267 $ 6,756,543 $ 6,035,636 $ 5,118,873
Interest 9,914,570 9,064,733 8,166,924 7,679,417 7,010,813
Changes of benefit terms
Difference between expected and actual experience 41,404 33,887 1,159,738 846,833 241,450
Change in assumptions - - - (304,820) -
Benefit payments, including refunds of
employee contributions
(4,953,354)
(3,481,143)
(2,875,256)
(3,808,062)
(2,729,973)
Net change in total pension liability 12,871,983 13,165,744 13,207,949 10,449,004 9,641,163
Total pension liability - beginning 145,424,516 132,258,772 119,050,823 108,601,188 98,960,025
Total pension liability - ending (a) $ 158,296,499 $ 145,424,516 $ 132,258,772 $ 119,050,192 $ 108,601,188
Plan fiduciary net position:
Contributions - employer $ 6,225,163 $ 5,991,467 $ 5,253,253 $ 4,786,602 $ 4,339,785
Contributions - employee 3,216,353 3,081,580 2,749,756 2,498,961 2,355,095
Net investment income (3,818,135) 14,836,941 6,458,752 135,758 4,766,828
Benefit payments, including refunds of
employee contributions
(4,953,354)
(3,481,143)
(2,875,256)
(3,808,062)
(2,729,973)
Administrative expense (73,737) (76,869) (72,899) (82,673) (49,756)
Other (3,853) (3,896) (3,927) (4,082) (4,091)
Net change in plan fiduciary net position 592,437 20,348,080 11,509,679 3,526,504 8,677,888
Plan fiduciary net position - beginning 127,368,923 107,020,843 95,511,165 91,984,661 83,306,773
Plan fiduciary net position - ending (b) 127,961,360 127,368,923 107,020,844 95,511,165 91,984,661
Net pension liability - ending (a) - (b) $ 30,335,139 $ 18,055,593 $ 25,237,928 $ 23,539,027 $ 16,616,527
Plan fiduciary net position as a
percentage of total pension liability 80.84% 87.58% 80.92% 80.23% 84.70%
Covered employee payroll $ 45,939,075 $ 44,013,221 $ 39,282,225 $ 35,545,557 $ 33,615,923
Net pension liability as a percentage
of covered payroll 66.03% 41.02% 64.25% 66.22% 49.43%
Notes to the Required Supplementary Information
Amounts presented are for each measurement year, which end the preceding December 31 of the City's fiscal year end.
Net pension liability is calculated using a new methodology and will be presented prospectively in accordance with GASB 68.
Ten years of data should be presented in this schedule but data was unavailable prior to 2014.
Page 131 of 249
85 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
Last Ten Fiscal Years
2019 2018 2017 2016 2015
Actuarially determined contribution $ 6,461,150 $ 6,072,762 $ 5,924,405 $ 5,295,359 $ 4,600,419
Contribution in relation of the actuarially
determined contribution
$ 6,461,150
$ 6,072,762
$ 5,924,405
$ 5,295,359
$ 4,600,419
Contribution deficiency (excess) - - - - -
Covered payroll $ 48,297,918 $ 44,772,623 $ 43,703,166 $ 39,566,838 $ 34,650,598
Contributions as a percentage of covered
payroll 13.4% 13.6% 13.6% 13.4% 13.3%
2014
2013
2012
2011
2010
Actuarially determined contribution $ 4,311,811 $ 3,780,847 $ 3,518,289 $ 3,302,952 $ 2,995,119
Contribution in relation of the actuarially
determined contribution
$ 4,311,811
$ 3,780,847
$ 3,518,289
$ 3,302,952
$ 2,995,119
Contribution deficiency (excess) - - - - -
Covered payroll $ 30,580,987 $ 28,876,260 $ 27,756,555 $ 26,871,670 $ 25,519,548
Contributions as a percentage of covered
payroll
14.1%
13.1%
12.7%
12.3%
11.7%
NOTES TO REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
Valuation Date:
Notes: Actuarial determined contribution rates are calculated as of
December 31 and become effective in January 13 months later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method: Entry Age Normal
Amortization Method: Level Percentage of Payroll, Closed
Remaining Amortization Period: 27 years
Asset Valuation Method: 10 Year smoothed market; 15% soft corridor
Inflation: 2.50%
Salary Increases: 3.50% to 10.50% including inflation
Investment Rate of Return: 6.75%
Retirement Age: Experience-based table of rates that are specific to the City's plan
of benefits. Last updated for the 2015 valuation pursuant to an
experience study of the period 2010 – 2014.
Mortality: RP2000 Combined Mortality Table with Blue Collar Adjustment
with male rates multiplied by 109% and female rates multiplied by
103% and projected on a fully generational basis with scale BB.
Other Information:
Notes: There were no benefit changes during the year.
Page 132 of 249
86 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
TEXAS MUNICIPAL RETIREMENT SYSTEM SUPPLEMENTAL DEATH BENEFITS FUND
Last Two Measurement Years
2018 2017
Service cost $ 82,690 $ 66,020
Interest 41,463 39,025
Difference between expected and actual experience 143,594 -
Changes of assumptions (99,775) 111,349
Benefit payments (4,594) (4,401)
Net change in total OPEB liability 163,378 211,993
Total OPEB liability - beginning 1,213,598 1,001,605
Total OPEB liability - ending $ 1,376,976 $ 1,213,598
Covered payroll
$ 45,939,075
$ 44,013,221
Total OPEB liability as a percentage of covered payroll 3.00% 2.76%
Notes to the Required Supplementary Information
Amounts presented are for each measurement year, which end the preceding
December 31 of the City's fiscal year end.
Total OPEB liability is calculated using a new methodology and will be presented
prospectively in accordance with GASB 75.
Ten years of data should be presented in this schedule but data was unavailable
prior to 2017.
There are no plan assets accumulated in a trust that meets the criteria in
paragraph 4 of GASB Statement No. 75.
Page 133 of 249
87 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
CITYOF PEARLAND RETIREMENT HEALTH CARE PLAN
Last Two Measurement Year
2019 2018
Service cost $ 295,552 $ 456,161
Interest 157,119 240,852
Changes of benefit terms - (2,314,150)
Difference between expected and actual experience - 361,831
Changes of assumptions 101,145 43,043
Benefit payments (66,167) (127,339)
Net change in total OPEB liability 487,649 (1,339,602)
Total OPEB liability - beginning 3,927,369 5,266,971
Total OPEB liability - ending $ 4,415,018 $ 3,927,369
Covered payroll
$ 48,297,918
$ 44,772,623
Total OPEB liability as a percentage of covered payroll 9.14% 8.77%
Notes to the Required Supplementary Information
Amounts presented are for each measurement year, which is the same as the
City's fiscal year end.
Total OPEB liability is calculated using a new methodology and will be presented
prospectively in accordance with GASB 75.
Ten years of data should be presented in this schedule but data was unavailable
prior to 2017.
There are no plan assets accumulated in a trust that meets the criteria in
paragraph 4 of GASB Statement No. 75.
Assumption Changes
Since the prior valuation, the mortality improvement scale was updated from MP-2016 to
the MP-2018 table. Also, the per capita claims costs and trend were updated to reflect
recent experience.
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89 City of Pearland 2019 CAFR
Other Supplementary Information
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90 City of Pearland 2019 CAFR
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91 City of Pearland 2019 CAFR
Combining and Individual Fund
Statements and Schedules
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93 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NON-MAJOR GOVERNMENTAL FUNDS
To account for the proceeds of specific revenue sources that, are legally restricted to expenditures for
specific purposes.
Hotel/Motel Tax Fund - A fund created to account for hotel/motel occupancy tax revenue.
Court Security Fund - A fund created to account for the receipt and expenditure of revenues from court
fines for court security.
City-Wide Donation Fund - A fund created to account for miscellaneous donations for all city
departments except parks.
Court Technology Fund - This fund is used to account for the receipt and expenditure of revenues from
court fines for court technology.
Street Assessments Fund - A fund created to account for the revenue and expenditure of street
assessments as approved by City Council for a designated street(s).
Park Donation Fund - A fund used to account for park donations for park special events and
development of parks. This fund also includes funds from tree trust donations.
Police Seizure Fund - A fund created to account for state and federal seizure funds which are used
solely for law enforcement purposes.
Park and Recreation Development Fund - A fund created to account for the receipt and expenditure of
payment in lieu of parkland for the development of parks.
Sidewalk Fund - A fund created to account for resources designated for sidewalks.
Grant Fund - A fund created to account for revenues and expenditures associated with federal, state,
and local grants.
Traffic Impact Improvement Fund - A fund created to account for resources and expenditures from
traffic impact analysis.
Juvenile Management Fund - A fund created to account for receipt and expenditure of revenues from
court fines for juvenile case manager.
Regional Detention Fund - A fund created to account for regional detention development.
Educational TV Fund - A fund created to account for the revenues and expenditures associated with
the purchase of equipment for public-access television broadcasting under rules set forth by the Federal
Communications Commission (FCC).
University of Houston (U of H) Fund - A fund created to account for lease revenues and the operating
expenditures related to the University of Houston Clear Lake-Pearland Campus built by the City and
leased to the University of Houston Clear Lake and the Pearland Economic Development Corporation.
Page 140 of 249
94 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30, 2019
Page 1 of 4
Assets
Hotel/Motel
Tax
Court
Security
City-Wide
Donation
Court
Technology
Cash and cash equivalents $ 1,157,688 $ 36,670 $ 162,485 $ 27,191
Investments 3,889,990 - - -
Receivables (net of allowance
for uncollectibles)
387,520
-
-
-
Total Assets $ 5,435,198 $ 36,670 $ 162,485 $ 27,191
Liabilities
Accounts payable $ 44,138 $ 363 $ - $ 400
Accrued expenditures 2,758 - - -
Total Liabilities 46,896 363 - 400
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows
of Resources
-
-
-
-
-
-
-
-
Fund Balance
Restricted for:
Community development
programs 5,388,302 36,307 - -
Public safety - - 162,485 26,791
Capital improvements - - - -
Unassigned - - - -
Total Fund Balances 5,388,302 36,307 162,485 26,791
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 5,435,198 $ 36,670 $ 162,485 $ 27,191
Page 141 of 249
95 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30, 2019
Page 2 of 4
Assets
Street
Assessments
Park
Donation
Police
Seizure
Park and
Recreation
Development
Cash and cash equivalents $ - $ 530,051 $ 282,728 $ 933,649
Investments - - - 246,292
Receivables (net of allowance
for uncollectibles) 1,486,878 - - -
Total Assets
Liabilities
Accounts payable
Accrued expenditures - - - -
Total Liabilities - 1 10,181 238,943
Deferred Inflows of Resources
Unavailable revenue 1,486,878 - - -
Total Deferred Inflows
of Resources 1,486,878 - - -
Fund Balance
Restricted for:
Community development
programs - 530,050 - -
Public safety - - 272,547 -
Capital improvements - - - 940,998
Unassigned - - - -
Total Fund Balances - 530,050 272,547 940,998
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 1,486,878 $ 530,051 $ 282,728 $ 1,179,941
$ 1,486,878 $ 530,051 $ 282,728 $ 1,179,941
$ -
$ 1
$ 10,181
$ 238,943
Page 142 of 249
96 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30, 2019
Page 3 of 4
Assets
Sidewalk Grant
Traffic Impact
Improvement
Juvenile
Management
Cash and cash equivalents $ 46,251 $ 260,427 $ 612,903 $ 43,192
Investments - - - -
Receivables (net of allowance
for uncollectibles) - 132,480 - -
Total Assets
Liabilities
Accounts payable
Accrued expenditures - - - -
Total Liabilities - 25,729 - 1,095
Deferred Inflows of Resources
Unavailable revenue - - - -
Total Deferred Inflows
of Resources - - - -
Fund Balance
Restricted for:
Community development
programs - 367,178 - -
Public safety - - - 42,097
Capital improvements 46,251 - 612,903 -
Unassigned - - - -
Total Fund Balances 46,251 367,178 612,903 42,097
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ 46,251 $ 392,907 $ 612,903 $ 43,192
$ 46,251 $ 392,907 $ 612,903 $ 43,192
$ -
$ 25,729
$ -
$ 1,095
Page 143 of 249
97 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30, 2019
Page 4 of 4
Total
Non-major
Assets
Regional Educational
Detention TV
Governmental
U of H Funds
Cash and cash equivalents $ - $ 214,171 $ - $ 4,307,406
Investments - 677,750 - 4,814,032
Receivables (net of allowance
for uncollectibles)
- 28,284
- 2,035,162
Total Assets $ - $ 920,205 $ - $ 11,156,600
Liabilities
Accounts payable $ - $ 11,158 $ - $ 332,008
Accrued expenditures - - 27,299 30,057
Total Liabilities - 11,158 27,299 362,065
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows
of Resources
- -
- -
- 1,486,878
- 1,486,878
Fund Balance
Restricted for:
Community development
programs - 909,047 - 7,230,884
Public safety - - - 503,920
Capital improvements - - 1,600,152
Unassigned - - (27,299) (27,299)
Total Fund Balances - 909,047 (27,299) 9,307,657
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances $ - $ 920,205 $ - $ 11,156,600
Page 144 of 249
98 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
Page 1 of 4
Revenues
Hotel/Motel
Tax
Court
Security
City-Wide
Donation
Court
Technology
Sales and use taxes $ 1,395,334 $ - $ - $ -
Franchise fees - - - -
Fines and forfeitures - 48,304 - 55,081
Charges for services - - - -
Investment earnings 126,357 593 3,619 168
Intergovernmental - - - -
Other 71,021 - 108,444 -
Total Revenues
Expenditures
Current:
1,592,712 48,897 112,063 55,249
General government 865,023 - - -
Public safety - - 3,723 -
Community services - 38,256 - 33,373
Parks and recreation - - - -
Capital outlay - - 44,456 -
Total Expenditures
Excess (deficiency) of revenues
over expenditures
865,023
727,689
38,256
10,641
48,179
63,884
33,373
21,876
Other Financing Sources (Uses)
Transfers in
Transfers out (665) - - -
Total Other Financing
Sources (Uses) (665) - - -
Net change in fund balances 727,024 10,641 63,884 21,876
Fund balances - beginning 4,661,278 25,666 98,601 4,915
Fund balances - ending $ 5,388,302 $ 36,307 $ 162,485 $ 26,791
Page 145 of 249
99 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
Page 2 of 4
Revenues
Street Park
Assessments Donation
Police
Seizure
Park and
Recreation
Development
Sales and use taxes $ - $ - $ - $ -
Franchise fees - - - -
Fines and forfeitures - - - -
Charges for services - 44,850 - -
Investment earnings - 14,409 8,019 40,969
Intergovernmental - - - -
Other - 96,648 54,300 581,017
Total Revenues
Expenditures
Current:
- 155,907 62,319 621,986
General government - - - -
Public safety - - 17,724 -
Community services - - - -
Parks and recreation - 142,584 - 29,873
Capital outlay - -
146,657 494,732
Total Expenditures
Excess (deficiency) of revenues
over expenditures
- 142,584
- 13,323
164,381
(102,062)
524,605
97,381
Other Financing Sources (Uses)
Transfers in
Transfers out - - - (162,000)
Total Other Financing
Sources (Uses) - - - (162,000)
Net change in fund balances - 13,323 (102,062) (64,619)
Fund balances - beginning - 516,727 374,609 1,005,617
Fund balances - ending $ - $ 530,050 $ 272,547 $ 940,998
Page 146 of 249
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
Page 3 of 4
100 City of Pearland 2019 CAFR
Revenues
Sidewalk
Grant
Traffic Impact
Improvement
Juvenile
Management
Sales and use taxes $ - $ - $ - $ -
Franchise fees - - - -
Fines and forfeitures - - - 79,509
Charges for services 43,814 - - -
Investment earnings 191 2,245 15,855 990
Intergovernmental - 690,267 - -
Other - 6,311 - -
Total Revenues
Expenditures
Current:
44,005 698,823 15,855 80,499
General government - 9,548 - -
Public safety - 184,844 - -
Community services - 112,981 - 66,009
Parks and recreation - - - -
Capital outlay - - - -
Total Expenditures
Excess (deficiency) of revenues
over expenditures
-
44,005
307,373
391,450
-
15,855
66,009
14,490
Other Financing Sources (Uses)
Transfers in
Transfers out (4,220) - (1,141) -
Total Other Financing
Sources (Uses) (4,220) - (1,141) -
Net change in fund balances 39,785 391,450 14,714 14,490
Fund balances - beginning 6,466 (24,272) 598,189 27,607
Fund balances - ending $ 46,251 $ 367,178 $ 612,903 $ 42,097
Page 147 of 249
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019
Page 4 of 4
101 City of Pearland 2019 CAFR
Regional
Educational
Total
Non-major
Governmental
Revenues
Detention TV U of H Funds
Sales and use taxes $ - $ - $ - $ 1,395,334
Franchise fees - 235,300 - 235,300
Fines and forfeitures - - - 182,894
Charges for services - - - 88,664
Investment earnings 179 21,161 - 234,755
Intergovernmental - - - 690,267
Other 26,502 - - 944,243
Total Revenues
Expenditures
Current:
26,681 256,461 - 3,771,457
General government - - - 874,571
Public safety - - - 206,291
Community services - 77,668 - 328,287
Parks and recreation - - - 172,457
Capital outlay - 26,796 - 712,641
Total Expenditures
Excess (deficiency) of revenues
over expenditures
-
26,681
104,464
151,997
- 2,294,247
- 1,477,210
Other Financing Sources (Uses)
Transfers in - - 370 370
Transfers out (29,845) - - (197,871)
Total Other Financing
Sources (Uses) (29,845) - 370 (197,501)
Net change in fund balances (3,164) 151,997 370 1,279,709
Fund balances - beginning 3,164 757,050 (27,669) 8,027,948
Fund balances - ending $ - $ 909,047 $ (27,299) $ 9,307,657
Page 148 of 249
102 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
MAJOR GOVERNMENTAL FUND – DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Property taxes $ 35,030,000 $ 35,397,759 $ 367,759 $ 34,190,351
Investment earnings 300,000 370,115 70,115 217,443
Miscellaneous 794,914 792,945 (1,969) 813,537
Total Revenues 36,124,914 36,560,819 435,905 35,221,331
Expenditures
Debt Service:
Principal 18,660,000 18,660,000 - 15,245,000
Interest and other charges 12,667,208 12,407,558 259,650 12,619,329
Intergovernmental 7,328,484 7,325,484 3,000 7,168,372
Total Expenditures 38,655,692 38,393,042 262,650 35,032,701
Excess (deficiency) of revenues
over expenditures
(2,530,778)
(1,832,223)
698,555
188,630
Other Financing Sources (Uses)
Refunding bonds issued - 10,240,000 10,240,000 -
Premium on debt issued
Payments to refunded bond
escrow agent
-
-
2,200,938
(12,551,318)
2,200,938
(12,551,318)
-
-
Transfers in 571,968 572,098 130 697,023
Total Other Financing Sources (Uses) 571,968 461,718 (110,250) 697,023
Net change in fund balance (1,958,810) (1,370,505) 588,305 885,653
Fund Balance - Beginning 6,797,114 6,797,114 -
5,911,461
Fund Balance - Ending $ 4,838,304 $ 5,426,609 $ 588,305 $ 6,797,114
Page 149 of 249
103 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – HOTEL/MOTEL TAX
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 3018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Sales and use taxes $ 1,450,000 $ 1,395,334 $ (54,666) $ 1,597,258
Investment earnings 10,800 126,357 115,557 70,762
Other - 71,021 71,021 36,611
Total Revenues 1,460,800 1,592,712 131,912 1,704,631
Expenditures
Current:
General government
1,076,843
865,023
211,820
1,029,011
Capital outlay 500,000 - 500,000 -
Total Expenditures
Excess (deficiency) of revenues
over expenditures
1,576,843
(116,043)
865,023
727,689
711,820
843,732
1,029,011
675,620
Other Financing Sources (Uses)
Transfers out (665) (665) - (617,890)
Net change in fund balance (116,708) 727,024 843,732 57,730
Fund Balance - Beginning 4,661,278 4,661,278 - 4,603,548
Fund Balance - Ending $ 4,544,570 $ 5,388,302 $ 843,732 $ 4,661,278
Page 150 of 249
104 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND - COURT SECURITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30 2018
2019
Variance
Positive / Amended
Budget Actual (Negative) 2018
Revenues
Fines and forfeitures $ 49,800 $ 48,304 $ (1,496) $ 41,035
Investment earnings 800 593 (207) 416
Total Revenues 50,600 48,897 (1,703) 41,451
Expenditures
Current:
Community services 40,431 38,256 2,175 50,258
Total Expenditures 40,431 38,256 2,175 50,258
Net change in fund balance 10,169 10,641 472 (8,807)
Fund Balance - Beginning 25,666 25,666 - 34,473
Fund Balance - Ending $ 35,835 $ 36,307 $ 472 $ 25,666
Page 151 of 249
105 City of Pearland 2019 CAFR
CITY OF PEARL AND, TEXAS
SPECIAL REVENUE FUND – CITY-WIDE DONATION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Variance
Positive /
(Negative)
Amended
Budget Actual 2018
Revenues
Investment earnings $ 1,000 $ 3,619 $ 2,619 $ 1,336
Other income 95,602 108,444 12,842 31,681
Total Revenues 96,602 112,063 15,461 33,017
Expenditures
Current:
Public safety 39,673 3,723 35,950 9,128
Capital outlay 227,798 44,456 183,342 -
Total Expenditures
Excess (deficiency) of revenues
over expenditures
267,471
(170,869)
48,179
63,884
219,292
234,753
9,128
23,889
Net change in fund balance (170,869) 63,884 234,753 23,889
Fund Balance - Beginning 98,601 98,601 - 74,712
Fund Balance - Ending $ (72,268) $ 162,485 $ 234,753 $ 98,601
Page 152 of 249
106 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – COURT TECHNOLOGY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Variance
Positive / Amended
Budget Actual (Negative) 2018
Revenues
Fines and forfeitures $ 56,000 $ 55,081 $ (919) $ 44,138
Investment earnings 225 168 (57) 9
Total Revenues 56,225 55,249 (976) 44,147
Expenditures
Current:
Community services
40,894
33,373
7,521
40,203
Total Expenditures 40,894 33,373 7,521 40,203
Net change in fund balance 15,331 21,876 6,545 3,944
Fund Balance - Beginning 4,915 4,915 - 971
Fund Balance - Ending $ 20,246 $ 26,791 $ 6,545 $ 4,915
Page 153 of 249
107 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – STREET ASSESSMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019*
Variance
Amended Positive /
Budget Actual (Negative) 2018*
Revenues
Investment earnings
$ - $
- $ - $ -
Other
Total Revenues
-
-
-
-
-
-
-
-
Expenditures
Current:
General government
-
-
-
-
Total Expenditures - - -
-
Net change in fund balance - - - -
Fund Balances - Beginning - - - -
Fund Balances - Ending $ - $ - $ - $ -
*No transactions in 2019 or 2018.
Page 154 of 249
108 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – PARK DONATION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Charges for services $ 135,408 $ 44,850 $ (90,558) $ 290,615
Investment earnings 7,800 14,409 6,609 7,809
Other 105,605 96,648 (8,957) 99,376
Total Revenues 248,813 155,907 (92,906) 397,800
Expenditures
Current:
Parks and recreation 181,133 142,584 38,549 143,452
Total Expenditures 181,133 142,584 38,549 143,452
Net change in fund balance 67,680 13,323 (54,357) 254,348
Fund Balance - Beginning 516,727 516,727 - 262,379
Fund Balance - Ending $ 584,407 $ 530,050 $ (54,357) $ 516,727
Page 155 of 249
109 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – POLICE SEIZURE
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Investment earnings $ 4,800 $ 8,019 $ 3,219 $ 4,941
Other 53,300 54,300 1,000 115,876
Total Revenues 58,100 62,319 4,219 120,817
Expenditures
Current:
Public safety 37,200 17,724 19,476 17,800
Capital outlay 198,764 146,657 52,107 -
Total Expenditures 235,964 164,381 71,583 17,800
Net change in fund balance (177,864) (102,062) 75,802 103,017
Fund Balance - Beginning 374,609 374,609 - 271,592
Fund Balance - Ending $ 196,745 $ 272,547 $ 75,802 $ 374,609
Page 156 of 249
110 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – PARK AND RECRETION DEVELOPMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30 2018
2019
Variance
Positive /
(Negative)
Amended
Budget Actual 2018
Revenues
Excess (deficiency) of
Total Other Financing
Investment earnings $ 18,000 $ 40,969 $ 22,969 $ 10,867
Other 457,154 581,017 123,863 964,060
Total Revenues 475,154 621,986 146,832 974,927
Expenditures
Current:
Parks and recreation 46,145 29,873 16,272
Capital outlay 758,372 494,732 263,640 134,494
Total Expenditures 804,517 524,605 279,912 134,494
revenues over expenditures (329,363) 97,381 426,744 840,433
Other Financing Sources (Uses)
Transfers out (162,000)
(162,000)
-
(555,000)
Sources (Uses) (162,000) (162,000) - (555,000)
Net change in fund balance (491,363) (64,619) 426,744 285,433
Fund Balance - Beginning 1,005,617 1,005,617 - 720,184
Fund Balance - Ending $ 514,254 $ 940,998 $ 426,744 $ 1,005,617
Page 157 of 249
111 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – SIDEWALK
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Variance
Positive /
(Negative)
Amended
Budget Actual 2018
Revenues
Charges for services $ 10,000 $ 43,814 $ 33,814 $ 86
Investment earnings 200 191 (9) 97
Total Revenues 10,200 44,005 33,805 183
Expenditures
Current:
Total Expenditures
Other Financing Sources (Uses)
-
-
-
-
-
-
-
-
Transfers out
Total Other Financing
Sources (Uses)
(4,220)
(4,220)
(4,220)
(4,220)
-
-
-
-
Net change in fund balance 5,980 39,785 33,805 183
Fund Balance - Beginning 6,466 6,466 - 6,283
Fund Balance - Ending $ 12,446 $ 46,251 $ 33,805 $ 6,466
Page 158 of 249
112 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Variance
Positive /
(Negative) 2018
Amended
Budget Actual
Revenues
Total other financing
Investment earnings $ 1,877 $ 2,245 $ 368 $ 2,393
Intergovernmental 1,288,165 690,267 (597,898) 539,284
Other 17,256 6,311 (10,945)
Total Revenues 1,307,298 698,823 (608,475) 541,677
Expenditures
Current:
General government 37,480 9,548 27,932 19,385
Public safety 265,145 184,844 80,301 304,018
Community service 518,654 112,981 405,673 79,830
Parks and recreation - - - -
Capital outlay 238,238 - 238,238 106,497
Total Expenditures
Excess (deficiency) of
1,059,517 307,373 752,144 509,730
revenues over expenditures 247,781 391,450 143,669 31,947
Other Financing Sources (Uses)
Transfers out -
-
-
(200,000)
sources (uses) - - - (200,000)
Net change in fund balance 247,781 391,450 143,669 (168,053)
Fund Balance - Beginning (24,272) (24,272) - 143,781
Fund Balance - Ending $ 223,509 $ 367,178 $ 143,669 $ (24,272)
Page 159 of 249
113 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – TRAFFIC IMPACT IMPROVEMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Variance
Amended Positive /
Budget Actual (Negative) 2018
Revenues
Investment earnings
$ 11,200
$ 15,855
$ 4,655
$ 8,460
Total Revenues 11,200 15,855 4,655 8,460
Expenditures
Current:
Public works -
-
- 93,548
Total Expenditures
Excess (deficiency) of revenues
over expenditures
-
11,200
-
15,855
-
4,655
93,548
(85,088)
Other Financing Sources/(Uses)
Transfers out (1,141) (1,141) - -
Total Other Financing
Sources (Uses) (1,141) (1,141) - -
Net change in fund balance 10,059 14,714 4,655 (85,088)
Fund Balance - Beginning 598,189 598,189 - 683,277
Fund Balance - Ending $ 608,248 $ 612,903 $ 4,655 $ 598,189
Page 160 of 249
114 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – JUVENILE MANAGEMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Fines and Forfeitures $ 80,000 $ 79,509 $ (491) $ 60,315
Investment earnings 1,100 990 (110) 409
Total Revenues 81,100 80,499 (601) 60,724
Expenditures
Current:
Community services
63,780
66,009
(2,229)
53,628
Total Expenditures 63,780 66,009 (2,229) 53,628
Net change in fund balance 17,320 14,490 (2,830) 7,096
Fund Balance - Beginning 27,607 27,607 - 20,511
Fund Balance - Ending $ 44,927 $ 42,097 $ (2,830) $ 27,607
Page 161 of 249
115 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – REGIONAL DETENTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Investment earnings $ 49 $ 179 $ 130 $ 607
Other 26,502 26,502 - 148,290
Total Revenues 26,551 26,681 130 148,897
Other Financing Sources (Uses)
Transfers out (29,715) (29,845) (130) (148,891)
Total Other Financing Sources (Uses) (29,715) (29,845) (130) (148,891)
Net change in fund balance (3,164) (3,164) - 6
Fund Balance - Beginning 3,164 3,164 - 3,158
Fund Balance - Ending $ - $ - $ - $ 3,164
Page 162 of 249
116 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – EDUCATIONAL TV
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Investment earnings $ 20,000 $ 21,161 $ 1,161 $ 12,193
Franchise taxes 265,000 235,300 (29,700) 260,430
Total Revenues 285,000 256,461 (28,539) 272,623
Expenditures
Current:
Community services 120,680 77,668 43,012 64,760
Capital outlay 77,952 26,796 51,156 -
Total Expenditures 198,632 104,464 94,168 64,760
Revenues over (under) expenditures 86,368 151,997 65,629 207,863
Other Financing Sources (Uses)
Transfers out -
-
-
(51,531)
Total Other Financing Sources (Uses) -
-
-
(51,531)
Net change in fund balance 86,368 151,997 65,629 156,332
Fund Balances - Beginning 757,050 757,050 -
600,718
Fund Balances - Ending $ 843,418 $ 909,047 $ 65,629 $ 757,050
Page 163 of 249
117 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – U OF H
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Investment earnings
Total Revenues
$ -
-
$ -
-
$ -
-
$ -
-
Expenditures
Current:
Total Expenditures
-
-
-
-
Other Financing Sources (Uses)
Transfers in - 370 370 -
Total Other Financing Sources (Uses) - 370 370 -
Net change in fund balance
-
370
370
-
Fund Balances - Beginning (27,669) (27,669) - (27,669)
Fund Balances - Ending $ (27,669) $ (27,299) $ 370 $ (27,669)
Page 164 of 249
118 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Investment earnings $ 731,033 $ 994,119 $ 263,086 $ 620,468
Intergovernmental 40,368,602 9,627,261 (30,741,341) 7,779,656
Other income -
600,000 600,000 106
Total Revenues 41,099,635 11,221,380 (29,878,255) 8,400,230
Expenditures
Current:
Public works 439,368 441,518 (2,150) 3,577,346
Debt Service
Interest and other charges - 400,398 (400,398) 212,265
Capital outlay 47,882,862 31,656,489 16,226,373 40,945,241
Total Expenditures
Excess (deficiency) of revenues
over expenditures
48,322,230
(7,222,595)
32,498,405
(21,277,025)
15,823,825
(14,054,430)
44,734,852
(36,334,622)
Other Financing Sources (Uses)
Issuance of debt 30,750,496 21,960,000 (8,790,496) 14,525,000
Premium on debt issued - 4,055,805 4,055,805 1,143,159
Transfers in 8,473,631 5,676,460 (2,797,171) 6,184,865
Transfers out (1,337,333) (1,362,087) (24,754) (1,006,954)
Total Other Financing Sources (Uses) 37,886,794 30,330,178 (7,556,616) 20,846,070
Net change in fund balance 30,664,199 9,053,153 (21,611,046) (15,488,552)
Fund Balance - Beginning 42,298,552 42,298,552 -
57,787,104
Fund Balance - Ending $ 72,962,751 $ 51,351,705 $ (21,611,046) $ 42,298,552
Page 165 of 249
119 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUND – PEARLAND ECONOMIC DEVELOPMENT CORPORATION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
For the Year Ended September 30, 2019
With comparative actual totals for the Year Ended September 30, 2018
Excess (deficiency) of
Net change in fund balance (16,366,401) (10,397,385) 5,600,644 6,592,498
Fund Balances- Beginning 27,132,821 27,132,821 - 20,540,323
Fund Balance - Ending $ 10,766,420 $ 16,735,436 $ 5,600,644 $ 27,132,821
2019
Amended
Variance
Positive /
Budget Actual (Negative) 2018
Revenues
Sales and use taxes $ 11,131,486 $ 11,048,959 $ (82,527) $ 11,177,690
Charges for services 460,000 488,271 28,271 459,996
Investment earnings 86,895 629,714 542,819 304,643
Intergovernmental 12,000 12,000 - 12,000
Other 40,000 441,664 401,664 3,650,059
Total Revenues 11,730,381 12,620,608 890,227 15,604,388
Expenditures
Current:
Economic development 15,873,496 11,257,984 4,615,512 2,311,058
Capital outlay 804,000 472,321 331,679 552,659
Debt Service
Principal 11,187,344 11,118,461 68,883 905,000
Interest and bond issue costs 67,200 188,671 (121,471) 324,500
Total Expenditures 27,932,040
23,037,437 4,894,603 4,093,217
revenues over expenditures (16,201,659) (10,416,829) 5,784,830 11,511,171
Other Financing Sources (Uses)
Transfers in - 184,186 (184,186) -
Transfers out (164,742) (164,742) - (4,918,673)
Total Other Financing Sources (Uses) (164,742) 19,444 (184,186) (4,918,673)
Page 166 of 249
120 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NON-MAJOR GOVERNMENTAL FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the government and to other government
units, on a cost reimbursement basis.
Property Liability Insurance Fund - To account for the activities of the City's property and casualty
insurance. Coverage includes general liability, law enforcement, public official and employees' liability,
auto liability, physical damage and multi-peril, mobile equipment, real and personal property, and
windstorm coverage.
Employee Benefits Fund - To account for other forms of insurance such as dental, vision, life, and
disability provided by the City to employees except for health insurance.
Health Claims Fund - To account for the activities of the City's employee health insurance. The fund
accounts for retiree and COBRA contributions, claims and coverage.
Motor Pool Fund - To account for the operations and maintenance of the City's fleet. Its customers are
city departments, and its primary revenue source is payments from those departments for vehicle and
equipment maintenance and replacement.
Page 167 of 249
121 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
September 30, 2019
Assets
Current assets:
Property
Liability
Insurance
Fund
Employee
Benefits
Fund
Health
Claims Fund
Motor Pool
Fund Total
Cash and cash equivalents $ 364,786 $ 29,139 $ 3,406,702 $ 1,974,654 $ 5,775,281
Accounts Receivables, net 17,175 7,461 77,585 - 102,221
Inventories - -
- 121,442 121,442
Total current assets 381,961 36,600 3,484,287 2,096,096 5,998,944
Non-current assets:
Capital Assets:
Equipment and Furniture - - - 1,080,100 1,080,100
Total Assets 381,961 36,600 3,484,287 3,176,196 7,079,044
Liabilities
Current liabilities:
Accounts payable and accrued
expenses 1,155 -
- 167,053 168,208
Total Liabilities 1,155 -
- 167,053 168,208
Net Position - - - 1,080,100 1,080,100
Unrestricted 380,806 36,600 3,484,287 1,929,043 5,830,736
Total Net Position $ 380,806 $ 36,600 $ 3,484,287 $ 3,009,143 $ 6,910,836
Page 168 of 249
122 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2019
Revenues
Property
Liability
Insurance
Fund
Employee
Benefits
Fund
Health
Claims Fund
Motor Pool
Fund Total
Charges for services $ 268,831 $ -
$ 8,006,815 $ -
$ 8,275,646
Total operating revenues 268,831 - 8,006,815 - 8,275,646
Operating Expenses
Personnel services
42,591
- -
426,913
469,504
Contractual services 1,463,846 - 7,606,537 23,239 9,093,622
Repairs and maintenance - - - 1,498,799 1,498,799
Supplies and materials - - - 18,832 18,832
Other expenses - - 23,366 - 23,366
Total Operating Expenses 1,506,437 - 7,629,903 1,967,783 11,104,123
Operating income (loss) (1,237,606) - 376,912 (1,967,783) (2,828,477)
Non-Operating Revenues (Expenses)
Earnings on investments 7,077 1,546 74,004 24,542 107,169
Miscellaneous income - - - 136,136 136,136
Total Non-Operating Revenues (Expenses) 7,077 1,546 74,004 160,678 243,305
Income (loss) before contributions and
transfers (1,230,529) 1,546 450,916 (1,807,105) (2,585,172)
Transfers in
Transfers out
1,160,000
-
- - 4,816,248
- - -
5,976,248
-
Change in net position (70,529) 1,546 450,916 3,009,143 3,391,076
Total net position - beginning 451,335 35,054 3,033,370 - 3,519,760
Total net position - ending $ 380,806 $ 36,600 $ 3,484,287 $ 3,009,143 $ 6,910,836
Page 169 of 249
123 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2019
Property
Liability
Insurance
Fund
Employee
Benefits
Fund
Health
Claims Fund
Motor Pool
Fund Total
Cash Flows from Operating Activities
Receipts from interfund charges for insurance activities
$ 298,155 $
(7,235)
$ 7,932,689
$ (121,442)
$ 8,102,167
Disbursed for personnel services (42,591) - - (426,913) (469,504)
Net cash provided by (used by) noncapital
Disbursed for goods and services (1,463,766) (112,927) (7,637,493) (1,373,817) (10,588,003)
Net cash provided (used) by operating activities (1,208,202) (120,162) 295,196 (1,922,172) (2,955,340)
Cash Flows from Noncapital Financing Activities
Transfers in 1,160,000
-
-
4,816,248
5,976,248
financing activities 1,160,000 -
-
4,816,248 5,976,248
Cash Flows from Capital and Related Financing
Activities
Proceeds from the sale of equipment - - - 136,136 136,136
Acquisition and construction of capital assets - - - (1,080,100) (1,080,100)
Net cash used by capital and related
financing activities -
-
-
(943,964) (943,964)
Cash Flows from Investing Activities
Interest received
7,078
1,545
74,003
24,542
107,168
Net cash provided by (used by) investing activities 7,078 1,545 74,003 24,542 107,168
Net increase (decrease) in cash and equivalents (41,124) (118,617) 369,199 1,974,654 2,184,112
Cash and equivalents, beginning 405,910 147,756 3,037,502 -
3,591,168
Cash and equivalents, end $ 364,786 $ 29,139 $ 3,406,702 $ 1,974,654 $ 5,775,281
Reconciliation of operating income to net cash
provided by operating activities
Operating income (loss) $ (1,237,606)
$ -
$ 376,912
$ (1,967,783)
$ (2,828,477)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
(Increase) decrease in accounts receivable 29,324 (7,235) (74,126) (121,442) (173,479)
Increase (decrease) in accounts payable 80 (112,927) (7,590) 167,053 46,616
Net cash provided by (used by) operating activities $ (1,208,202) $ (120,162) $ 295,196 $ (1,922,172) $ (2,955,340)
Page 170 of 249
124 City of Pearland 2019 CAFR
Page 171 of 249
125 City of Pearland 2019 CAFR
Long-Term Debt Amortization Schedules
Page 172 of 249
126 City of Pearland 2019 CAFR
Page 173 of 249
127 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 1 of 8
Certificates of Obligation, Series 2009 Certificates of Obligation, Series 2009A
Fiscal Year
2020
Principal
$ 325,000
Interest
$ 13,000
Total
$ 338,000
Principal
$ 635,000
Interest
$ 10,319
Total
$ 645,319
2021 - - - - - -
2022 - - - - - -
2023 - - - - - -
2024 - - - - - -
2025 - - - - - -
2026 - - - - - -
2027 - - - - - -
2028 - - - - - -
2029 - - - - - -
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
$ 325,000 $ 13,000 $ 338,000 $ 635,000 $ 10,319 $ 645,319
Permanent Improvement & Refunding Bonds, Series
2009 (Gov't Portion)
Permanent Improvement Bonds, Series 2011
Fiscal Year
2020
Principal
$ 615,000
Interest
$ 9,994
Total
$ 624,994
Principal
$ 185,000
Interest
$ 156,831
Total
$ 341,831
2021 - - - 190,000 149,331 339,331
2022 - - - 200,000 141,531 341,531
2023 - - - 205,000 134,456 339,456
2024 - - - 210,000 128,231 338,231
2025 - - - 220,000 121,506 341,506
2026 - - - 225,000 114,275 339,275
2027 - - - 235,000 106,506 341,506
2028 - - - 245,000 98,106 343,106
2029 - - - 250,000 88,819 338,819
2030 - - - 260,000 78,619 338,619
2031 - - - 275,000 67,919 342,919
2032 - - - 285,000 56,719 341,719
2033 - - - 295,000 45,119 340,119
2034 - - - 305,000 33,119 338,119
2035 - - - 320,000 20,419 340,419
2036 - - - 335,000 6,909 341,909
2037 - - - - - -
2038 - - - - - -
2039 - - - - - -
$ 615,000 $ 9,994 $ 624,994 $ 4,240,000 $ 1,548,415 $ 5,788,415
Page 174 of 249
128 City of Pearland 2019 CAFR
CITY OF PEARL AND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 2 of 8
Certificates of Obligation, Series 2011 Permanent Improvement Refunding Bonds, Series
2012 (Gov't Portion)
Fiscal Year
2020
Principal
$ 210,000
Interest
$ 6,584
Total
$ 216,584
Principal
$ 2,200,000
Interest
$ 1,056,100
Total
$ 3,256,100
2021 210,000 2,195 212,195 2,340,000 965,300 3,305,300
2022 - - - 2,680,000 864,900 3,544,900
2023 - - - 2,840,000 754,500 3,594,500
2024 - - - 2,720,000 643,300 3,363,300
2025 - - - 4,520,000 521,100 5,041,100
2026 - - - 4,540,000 385,200 4,925,200
2027 - - - 3,035,000 271,575 3,306,575
2028 - - - 5,355,000 145,725 5,500,725
2029 - - - 2,180,000 32,700 2,212,700
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
$ 420,000 $ 8,779 $ 428,779 $ 32,410,000 $ 5,640,400 $ 38,050,400
BC MUD #4
Unlimited Tax Bonds, Series 2011
Permanent Improvement Bonds, Series 2013
Fiscal Year
2020
Principal
$ 130,000
Interest
$ 2,275
Total
$ 132,275
Principal
$ 320,000
Interest
$ 314,068
Total
$ 634,068
2021 - - - 330,000 301,067 631,067
2022 - - - 330,000 287,868 617,868
2023 - - - 340,000 274,467 614,467
2024 - - - 350,000 260,668 610,668
2025 - - - 360,000 246,467 606,467
2026 - - - 370,000 231,868 601,868
2027 - - - 370,000 217,067 587,067
2028 - - - 380,000 202,068 582,068
2029 - - - 390,000 186,424 576,424
2030 - - - 400,000 169,880 569,880
2031 - - - 410,000 152,411 562,411
2032 - - - 420,000 134,202 554,202
2033 - - - 430,000 115,288 545,288
2034 - - - 440,000 95,712 535,712
2035 - - - 450,000 75,688 525,688
2036 - - - 460,000 55,212 515,212
2037 - - - 480,000 33,763 513,763
2038 - - - 490,000 11,331 501,331
2039 - - - - - -
$ 130,000 $ 2,275 $ 132,275 $ 7,520,000 $ 3,365,519 $ 10,885,519
Page 175 of 249
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 3 of 8
129 City of Pearland 2019 CAFR
Certificates of Obligation, Series 2013 Permanent Improvement & Refunding Bonds, Series
2014
Fiscal Year
2020
Principal
$ 100,000
Interest
$ 98,988
Total
$ 198,988
Principal
$ 2,310,000
Interest
$ 1,508,281
Total
$ 3,818,281
2021 100,000 94,487 194,487 2,415,000 1,401,706 3,816,706
2022 100,000 89,488 189,488 2,510,000 1,284,831 3,794,831
2023 100,000 84,487 184,487 3,165,000 1,149,206 4,314,206
2024 100,000 79,488 179,488 2,710,000 1,002,331 3,712,331
2025 110,000 74,237 184,237 2,830,000 863,831 3,693,831
2026 110,000 69,288 179,288 3,055,000 716,706 3,771,706
2027 110,000 64,887 174,887 4,120,000 537,332 4,657,332
2028 110,000 60,488 170,488 3,145,000 385,191 3,530,191
2029 120,000 55,737 175,737 5,860,000 218,850 6,078,850
2030 120,000 50,563 170,563 535,000 90,950 625,950
2031 120,000 45,312 165,312 535,000 69,550 604,550
2032 120,000 40,063 160,063 535,000 48,150 583,150
2033 130,000 34,512 164,512 535,000 28,088 563,088
2034 130,000 28,663 158,663 535,000 9,363 544,363
2035 130,000 22,812 152,812 - - -
2036 140,000 16,650 156,650 - - -
2037 140,000 10,175 150,175 - - -
2038 150,000 3,469 153,469 - - -
$ 2,240,000 $ 1,023,794 $ 3,263,794 $ 34,795,000 $ 9,314,366 $ 44,109,366
Certificates of Obligation, Series 2014 Permanent Improvement Refunding Bonds, Series
2015
Fiscal Year
2020
Principal
$ 230,000
Interest
$ 105,319
Total
$ 335,319
Principal
$ 3,755,000
Interest
$ 1,926,819
Total
$ 5,681,819
2021 230,000 100,719 330,719 3,890,000 1,768,019 5,658,019
2022 230,000 96,119 326,119 4,020,000 1,619,069 5,639,069
2023 230,000 90,369 320,369 4,010,000 1,462,119 5,472,119
2024 230,000 82,319 312,319 4,975,000 1,247,494 6,222,494
2025 235,000 73,019 308,019 4,540,000 1,009,619 5,549,619
2026 230,000 63,719 293,719 4,745,000 777,494 5,522,494
2027 235,000 55,594 290,594 4,155,000 554,994 4,709,994
2028 235,000 48,544 283,544 4,100,000 348,619 4,448,619
2029 230,000 41,425 271,425 3,450,000 159,868 3,609,868
2030 230,000 34,237 264,237 905,000 59,478 964,478
2031 230,000 26,906 256,906 720,000 33,637 753,637
2032 230,000 19,431 249,431 675,000 10,968 685,968
2033 230,000 11,812 241,812 - - -
2034 235,000 3,965 238,965 - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
2039 - - - - - -
$ 3,470,000 $ 853,497 $ 4,323,497 $ 43,940,000 $ 10,978,197 $ 54,918,197
Page 176 of 249
130 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 4 of 8
Permanent Improvement Bonds, Series 2015 Certificates of Obligation, Series 2015
Fiscal Year
2020
Principal
$ 425,000
Interest
$ 202,575
Total
$ 627,575
Principal
$ 240,000
Interest
$ 116,800
Total
$ 356,800
2021 425,000 194,075 619,075 240,000 112,000 352,000
2022 425,000 185,575 610,575 240,000 106,600 346,600
2023 425,000 176,013 601,013 245,000 100,538 345,538
2024 425,000 165,387 590,387 245,000 93,800 338,800
2025 425,000 151,575 576,575 240,000 85,325 325,325
2026 425,000 134,575 559,575 245,000 75,625 320,625
2027 425,000 117,575 542,575 245,000 65,825 310,825
2028 425,000 100,575 525,575 245,000 57,250 302,250
2029 425,000 85,700 510,700 245,000 49,900 294,900
2030 420,000 73,025 493,025 240,000 42,625 282,625
2031 425,000 60,350 485,350 240,000 35,275 275,275
2032 425,000 47,600 472,600 245,000 27,697 272,697
2033 425,000 34,425 459,425 240,000 19,969 259,969
2034 425,000 20,719 445,719 240,000 12,168 252,168
2035 425,000 6,906 431,906 245,000 4,134 249,134
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
$ 6,795,000 $ 1,756,650 $ 8,551,650 $ 3,880,000 $ 1,005,531 $ 4,885,531
Permanent Improvement Refunding Bonds, Series
2015A
Permanent Improvement and Refunding Bonds,
Series 2016A
Fiscal Year
2020
Principal
$ 395,000
Interest
$ 188,350
Total
$ 583,350
Principal
$ 985,000
Interest
$ 1,230,700
Total
$ 2,215,700
2021 410,000 176,275 586,275 1,120,000 1,209,650 2,329,650
2022 430,000 163,675 593,675 1,125,000 1,170,325 2,295,325
2023 535,000 150,538 685,538 1,135,000 1,113,825 2,248,825
2024 520,000 136,050 656,050 1,150,000 1,056,700 2,206,700
2025 540,000 120,150 660,150 1,160,000 998,950 2,158,950
2026 555,000 103,725 658,725 1,200,000 939,950 2,139,950
2027 580,000 86,700 666,700 1,215,000 879,575 2,094,575
2028 855,000 65,175 920,175 1,230,000 824,600 2,054,600
2029 1,745,000 26,175 1,771,175 1,960,000 770,600 2,730,600
2030 - - - 6,725,000 606,700 7,331,700
2031 - - - 4,100,000 390,200 4,490,200
2032 - - - 4,425,000 219,700 4,644,700
2033 - - - 820,000 114,800 934,800
2034 - - - 820,000 82,000 902,000
2035 - - - 820,000 49,200 869,200
2036 - - - 820,000 16,400 836,400
2037 - - - - - -
2038 - - - - - -
2039 - - - - - -
$ 6,565,000 $ 1,216,813 $ 7,781,813 $ 30,810,000 $ 11,673,875 $ 42,483,875
Page 177 of 249
131 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 5 of 8
Certificates of Obligation, Series 2016
Permanent Improvement & Refunding Bonds, Series
2017
Permanent Improvement Refunding Bonds, Series
2016B
Certificates of Obligation, Series 2017
Fiscal Year
2020
Principal
$ 1,095,000
Interest
$ 2,300,619
Total
$ 3,395,619
Principal
$ 310,000
Interest
$ 188,000
Total
$ 498,000
2021 2,495,000 2,216,344 4,711,344 310,000 180,250 490,250
2022 2,540,000 2,090,469 4,630,469 310,000 170,950 480,950
2023 2,590,000 1,962,219 4,552,219 300,000 161,800 461,800
2024 2,645,000 1,831,344 4,476,344 310,000 151,100 461,100
2025 2,695,000 1,697,844 4,392,844 310,000 138,700 448,700
2026 2,760,000 1,561,469 4,321,469 310,000 126,300 436,300
2027 4,410,000 1,382,219 5,792,219 310,000 113,900 423,900
2028 4,580,000 1,157,469 5,737,469 310,000 101,500 411,500
2029 3,010,000 967,719 3,977,719 310,000 89,100 399,100
2030 2,260,000 858,569 3,118,569 310,000 76,700 386,700
2031 7,000,000 719,668 7,719,668 315,000 64,200 379,200
2032 7,205,000 470,568 7,675,568 310,000 53,250 363,250
2033 2,560,000 275,268 2,835,268 310,000 43,950 353,950
2034 2,615,000 183,209 2,798,209 310,000 34,456 344,456
2035 1,095,000 114,975 1,209,975 310,000 24,769 334,769
2036 1,095,000 65,700 1,160,700 310,000 15,081 325,081
2037 1,095,000 21,900 1,116,900 315,000 5,119 320,119
2038 - - - - - -
2039 - - - - - -
$ 53,745,000 $ 19,877,572 $ 73,622,572 $ 5,580,000 $ 1,739,125 $ 7,319,125
Fiscal Year
2020
Principal
$ 700,000
Interest
$ 300,850
Total
$ 1,000,850
Principal
$ 2,810,000
Interest
$ 1,143,350
Total
$ 3,953,350
2021 700,000 286,850 986,850 2,910,000 1,028,950 3,938,950
2022 700,000 272,850 972,850 3,025,000 895,125 3,920,125
2023 700,000 258,850 958,850 2,675,000 752,625 3,427,625
2024 700,000 244,850 944,850 2,810,000 615,500 3,425,500
2025 700,000 230,850 930,850 2,005,000 495,125 2,500,125
2026 700,000 216,850 916,850 2,015,000 394,625 2,409,625
2027 700,000 195,850 895,850 2,105,000 291,625 2,396,625
2028 700,000 174,850 874,850 1,105,000 211,375 1,316,375
2029 700,000 157,350 857,350 1,140,000 155,250 1,295,250
2030 700,000 136,350 836,350 1,265,000 95,125 1,360,125
2031 695,000 115,425 810,425 1,270,000 31,750 1,301,750
2032 700,000 94,500 794,500 - - -
2033 700,000 73,500 773,500 - - -
2034 700,000 52,500 752,500 - - -
2035 700,000 31,500 731,500 - - -
2036 700,000 10,500 710,500 - - -
2037 - - - - - -
2038 - - - - - -
$ 11,895,000 $ 2,854,275 $ 14,749,275 $ 25,135,000 $ 6,110,425 $ 31,245,425
Page 178 of 249
132 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 6 of 8
Permanent Improvement Bonds, Series 2018 Certificates of Obligation, Series 2018
Fiscal Year
2020
Principal
$ 375,000
Interest
$ 289,950
Total
$ 664,950
Principal
$ 355,000
Interest
$ 276,250
Total
$ 631,250
2021 370,000 278,800 648,800 355,000 265,600 620,600
2022 370,000 264,000 634,000 355,000 251,400 606,400
2023 370,000 249,200 619,200 355,000 237,200 592,200
2024 370,000 234,400 604,400 355,000 223,000 578,000
2025 370,000 217,750 587,750 355,000 207,025 562,025
2026 370,000 199,250 569,250 355,000 189,275 544,275
2027 375,000 180,625 555,625 355,000 171,525 526,525
2028 370,000 162,000 532,000 350,000 153,900 503,900
2029 375,000 143,375 518,375 355,000 136,275 491,275
2030 370,000 126,600 496,600 355,000 120,300 475,300
2031 375,000 111,700 486,700 355,000 106,100 461,100
2032 375,000 96,700 471,700 355,000 91,900 446,900
2033 370,000 81,800 451,800 350,000 77,800 427,800
2034 370,000 67,000 437,000 355,000 63,700 418,700
2035 375,000 52,100 427,100 355,000 49,500 404,500
2036 370,000 37,200 407,200 355,000 35,300 390,300
2037 370,000 22,400 392,400 350,000 21,200 371,200
2038 375,000 7,500 382,500 355,000 7,100 362,100
$ 7,065,000 $ 2,822,350 $ 9,887,350 $ 6,730,000 $ 2,684,350 $ 9,414,350
Permanent Improvement & Refunding Bonds, Series
2019
Certificates of Obligation, Series 2019A
Fiscal Year
2020
Principal
$ 550,000
Interest
$ 740,316
Total
$ 1,290,316
Principal
$ 225,000
Interest
$ 147,058
Total
$ 372,058
2021 570,000 708,150 1,278,150 225,000 150,575 375,575
2022 580,000 679,400 1,259,400 225,000 143,825 368,825
2023 595,000 650,025 1,245,025 225,000 137,075 362,075
2024 615,000 619,775 1,234,775 220,000 130,400 350,400
2025 625,000 588,775 1,213,775 225,000 123,725 348,725
2026 645,000 557,025 1,202,025 220,000 117,050 337,050
2027 665,000 524,275 1,189,275 225,000 110,375 335,375
2028 685,000 490,525 1,175,525 225,000 102,500 327,500
2029 2,470,000 411,650 2,881,650 220,000 93,600 313,600
2030 2,315,000 292,025 2,607,025 225,000 84,700 309,700
2031 815,000 213,775 1,028,775 225,000 75,700 300,700
2032 840,000 172,400 1,012,400 225,000 66,700 291,700
2033 875,000 133,900 1,008,900 225,000 57,700 282,700
2034 890,000 98,600 988,600 220,000 48,800 268,800
2035 915,000 62,500 977,500 220,000 40,000 260,000
2036 275,000 38,700 313,700 225,000 31,100 256,100
2037 275,000 27,700 302,700 220,000 22,200 242,200
2038 275,000 16,700 291,700 220,000 13,400 233,400
2039 280,000 5,600 285,600 225,000 4,500 229,500
$ 15,755,000 $ 7,031,816 $ 22,786,816 $ 4,465,000 $ 1,700,983 $ 6,165,983
Page 179 of 249
133 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 7 of 8
Certificates of Obligation, Series 2019B Pearland Economic Development Corporation
Sales Tax Revenue Refunding Bonds, Series 2016
Fiscal Year
2020
Principal
$ -
Interest
$ 560,731
Total
$ 560,731
Principal
$ 250,000
Interest
$ 41,300
Total
$ 291,300.00
2021 - 599,000 599,000 250,000 35,400 285,400
2022 - 599,000 599,000 250,000 29,500 279,500
2023 - 599,000 599,000 250,000 23,600 273,600
2024 - 599,000 599,000 250,000 17,700 267,700
2025 - 599,000 599,000 250,000 11,800 261,800
2026 - 599,000 599,000 250,000 5,900 255,900
2027 - 599,000 599,000 - - -
2028 - 599,000 599,000 - - -
2029 - 599,000 599,000 - - -
2030 11,980,000 299,500 12,279,500 - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
$ 11,980,000 $ 6,251,231 $ 18,231,231 $ 1,750,000 $ 165,200 $ 1,915,200
Development Authority of Pearland
Tax Increment Contract Revenue Bonds, Series 2013
Development Authority of Pearland
Tax Increment Contract Revenue Bonds, Series 2014
Fiscal Year
2020
Principal
$ 445,000
Interest
$ 255,041
Total
$ 700,041
Principal
$ 475,000
Interest
$ 146,880
Total
$ 621,880
2021 465,000 238,264 703,264 490,000 133,960 623,960
2022 735,000 220,734 955,734 505,000 120,632 625,632
2023 560,000 193,024 753,024 520,000 106,896 626,896
2024 615,000 171,912 786,912 530,000 92,752 622,752
2025 670,000 148,727 818,727 545,000 78,336 623,336
2026 725,000 123,468 848,468 560,000 63,512 623,512
2027 785,000 96,135 881,135 575,000 48,280 623,280
2028 850,000 66,541 916,541 590,000 32,640 622,640
2029 915,000 34,496 949,496 610,000 16,592 626,592
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
2039 - - - - - -
$ 6,765,000 $ 1,548,342 $ 8,313,342 $ 5,400,000 $ 840,480 $ 6,240,480
Page 180 of 249
CITY OF PEARLAND, TEXAS
COMINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 8 of 8
134 City of Pearland 2019 CAFR
Development Authority of Pearland
Tax Increment Contract Revenue & Refunding
Bonds, Series 2015
Development Authority of Pearland
Tax Increment Contract Revenue Bonds, Series 2016
Fiscal Year
2020
Principal
$ 4,395,000
Interest
$ 1,324,516
Total
$ 5,719,516
Principal
$ 900,000
Interest
$ 220,779
Total
$ 1,120,779
2021 4,510,000 1,204,093 5,714,093 920,000 200,799 1,120,799
2022 4,380,000 1,080,519 5,460,519 940,000 180,375 1,120,375
2023 4,705,000 960,507 5,665,507 955,000 159,507 1,114,507
2024 4,800,000 831,590 5,631,590 985,000 138,306 1,123,306
2025 4,900,000 700,070 5,600,070 1,005,000 116,439 1,121,439
2026 5,005,000 565,810 5,570,810 1,025,000 94,128 1,119,128
2027 5,110,000 428,673 5,538,673 1,050,000 71,373 1,121,373
2028 5,215,000 288,659 5,503,659 1,070,000 48,063 1,118,063
2029 5,320,000 145,768 5,465,768 1,095,000 24,309 1,119,309
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
$ 48,340,000 $ 7,530,205 $ 55,870,205 $ 9,945,000 $ 1,254,078 $ 11,199,078
Development Authority of Pearland
Tax Increment Contract Revenue Bonds, Series 2017
Development Authority of Pearland
Tax Increment Contract Revenue Bonds, Series 2018
Fiscal Year
2020
Principal
$ 670,000
Interest
$ 170,775
Total
$ 840,775
Principal
$ 465,000
Interest
$ 185,504
Total
$ 650,504
2021 685,000 155,365 840,365 480,000 169,648 649,648
2022 700,000 139,610 839,610 500,000 153,280 653,280
2023 720,000 123,510 843,510 515,000 136,230 651,230
2024 730,000 106,950 836,950 535,000 118,668 653,668
2025 750,000 90,160 840,160 550,000 100,425 650,425
2026 765,000 72,910 837,910 570,000 81,669 651,669
2027 780,000 55,315 835,315 590,000 62,232 652,232
2028 805,000 37,375 842,375 605,000 42,113 647,113
2029 820,000 18,860 838,860 630,000 21,483 651,483
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
2039 - - - - - -
$ 7,425,000 $ 970,830 $ 8,395,830 $ 5,440,000 $ 1,071,252 $ 6,511,252
Page 181 of 249
135 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 1 of 4
Water & Sewer System Adjustable Rate Revenue
Bonds, Series 1999
Water & Sewer System Revenue Refunding Bonds,
Series 2010B
Fiscal Year
2020
Principal
$ 610,000
Interest
$ 28,060
Total
$ 638,060
Principal
$ 445,000
Interest
$ 15,575
Total
$ 460,575
2021 - - - - - -
2022 - - - - - -
2023 - - - - - -
2024 - - - - - -
2025 - - - - - -
2026 - - - - - -
2027 - - - - - -
2028 - - - - - -
2029 - - - - - -
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
2039 - - - - - -
2040 - - - - - -
2041 - - - - - -
2042 - - - - - -
2043 - - - - - -
2044 - - - - - -
2045 - - - - - -
2046 - - - - - -
2047 - - - - - -
2048 - - - - - -
2049 - - - - - -
$ 610,000 $ 28,060 $ 638,060 $ 445,000 $ 15,575 $ 460,575
Permanent Improvement Refunding Bonds,
Series 2012 (Water &Sew er Portion)
Water & Sewer System Revenue & Refunding
Bonds, Series 2012
Fiscal Year
2020
Principal
$ 370,000
Interest
$ 157,000
Total
$ 527,000
Principal
$ 800,000
Interest
$ 165,155
Total
$ 965,155
2021 370,000 142,200 512,200 230,000 141,155 371,155
2022 385,000 127,100 512,100 230,000 134,255 364,255
2023 395,000 111,500 506,500 240,000 127,355 367,355
2024 1,480,000 74,000 1,554,000 230,000 120,155 350,155
2025 1,480,000 22,200 1,502,200 225,000 113,255 338,255
2026 - - - 175,000 106,505 281,505
2027 - - - 180,000 101,080 281,080
2028 - - - 185,000 95,500 280,500
2029 - - - 190,000 89,488 279,488
2030 - - - 195,000 83,312 278,312
2031 - - - 200,000 76,975 276,975
2032 - - - 300,000 70,225 370,225
2033 - - - 315,000 60,100 375,100
2034 - - - 325,000 49,075 374,075
2035 - - - 335,000 37,700 372,700
2036 - - - 345,000 25,556 370,556
2037 - - - 360,000 13,050 373,050
2038 - - - - - -
2039 - - - - - -
2040 - - - - - -
2041 - - - - - -
2042 - - - - - -
2043 - - - - - -
2044 - - - - - -
2045 - - - - - -
2046 - - - - - -
2047 - - - - - -
2048 -
-
- - -
-
$ 4,480,000 $ 634,000 $ 5,114,000 $ 5,060,000 $ 1,609,896 $ 6,669,896
Page 182 of 249
136 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 2 of 4
Water & Sewer System Revenue Bonds, Series 2014 Water and Sewer System Revenue Bonds, Series
2016A
Fiscal Year Principal Interest Total Principal Interest Total
2020 $ 240,000 $ 290,419 $ 530,419 $ 445,000 $ 209,663 $ 654,663
2021 255,000 280,819 535,819 445,000 196,313 641,313
2022 270,000 270,619 540,619 445,000 187,413 632,413
2023 280,000 259,819 539,819 440,000 178,513 618,513
2024 295,000 248,619 543,619 445,000 169,713 614,713
2025 310,000 236,819 546,819 445,000 160,812 605,812
2026 330,000 224,419 554,419 440,000 151,912 591,912
2027 345,000 211,219 556,219 445,000 134,312 579,312
2028 365,000 200,869 565,869 445,000 116,512 561,512
2029 385,000 189,919 574,919 445,000 106,500 551,500
2030 405,000 177,888 582,888 445,000 93,150 538,150
2031 425,000 164,725 589,725 440,000 79,800 519,800
2032 445,000 150,912 595,912 445,000 66,600 511,600
2033 470,000 135,893 605,893 445,000 53,250 498,250
2034 495,000 120,031 615,031 445,000 39,900 484,900
2035 520,000 102,706 622,706 440,000 26,550 466,550
2036 550,000 84,506 634,506 445,000 13,350 458,350
2037 575,000 65,256 640,256 - - -
2038 605,000 45,131 650,131 - - -
2039 640,000 23,200 663,200 - - -
2040 - - - - - -
2041 - - - - - -
2042 - - - - - -
2043 - - - - - -
2044 - - - - - -
2045 - - - - - -
2046 - - - - - -
2047 - - - - - -
2048 - - - - - -
2049 -
-
-
-
-
-
$ 8,205,000 $ 3,483,788 $ 11,688,788 $ 7,545,000 $ 1,984,263 $ 9,529,263
Water & Sew er System Revenue Bonds,
Series 2016B
(Texas Water Development Board - SWIFT)
Water & Sew er System Revenue Bonds,
Series 2016C
(Texas Water Development Board - SWIFT)
Fiscal Year Principal Interest Total Principal Interest Total
2020 $ 1,235,000 $ 7,524 $ 1,242,524 $ 1,860,000 $ 315,066 $ 2,175,066
2021 1,235,000 7,524 1,242,524 1,855,000 315,066 2,170,066
2022 1,235,000 7,523 1,242,523 1,700,000 315,066 2,015,066
2023 1,235,000 7,523 1,242,523 1,700,000 315,066 2,015,066
2024 1,230,000 6,412 1,236,412 1,700,000 313,536 2,013,536
2025 1,235,000 3,952 1,238,952 1,700,000 310,136 2,010,136
2026 - - - 1,700,000 304,696 2,004,696
2027 - - - 1,700,000 297,386 1,997,386
2028 - - - 1,700,000 288,206 1,988,206
2029 - - - 1,700,000 278,176 1,978,176
2030 - - - 1,700,000 267,296 1,967,296
2031 - - - 1,700,000 255,396 1,955,396
2032 - - - 1,700,000 242,476 1,942,476
2033 - - - 1,700,000 228,536 1,928,536
2034 - - - 1,700,000 213,746 1,913,746
2035 - - - 1,700,000 198,106 1,898,106
2036 - - - 1,700,000 181,786 1,881,786
2037 - - - 1,700,000 164,786 1,864,786
2038 - - - 1,700,000 147,446 1,847,446
2039 - - - 1,700,000 129,766 1,829,766
2040 - - - 1,700,000 111,746 1,811,746
2041 - - - 1,700,000 93,556 1,793,556
2042 - - - 1,700,000 75,196 1,775,196
2043 - - - 1,700,000 56,666 1,756,666
2044 - - - 1,700,000 37,966 1,737,966
2045 - - - 1,705,000 19,096 1,724,096
2046 - - - - - -
2047 - - - - - -
2048 -
-
-
-
-
-
$ 7,405,000 $ 40,458 $ 7,445,458 $ 44,520,000 $ 5,475,966 $ 49,995,966
Page 183 of 249
137 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 3 of 4
Water & Sewer System Revenue Bonds,
Series 2017A (Texas Water Development Board -
Drinking Water State Revolving Fund)
Water & Sewer System Revenue Bonds,
Series 2017B (Texas Water Development Board -
Drinking Water State Revolving Fund)
Fiscal Year Principal Interest Total Principal Interest Total
2020 $ 1,010,000 $ 59,079 $ 1,069,079 $ 340,000 $ 184,925 $ 524,925
2021 1,010,000 58,473 1,068,473 340,000 184,721 524,721
2022 1,015,000 55,948 1,070,948 340,000 183,871 523,871
2023 1,020,000 51,380 1,071,380 345,000 182,341 527,341
2024 1,025,000 44,954 1,069,954 345,000 180,168 525,168
2025 1,030,000 36,447 1,066,447 350,000 177,304 527,304
2026 1,045,000 25,941 1,070,941 350,000 173,734 523,734
2027 1,055,000 13,610 1,068,610 355,000 169,604 524,604
2028 - - - 360,000 165,025 525,025
2029 - - - 365,000 160,021 525,021
2030 - - - 370,000 154,582 524,582
2031 - - - 375,000 148,699 523,699
2032 - - - 385,000 142,362 527,362
2033 - - - 390,000 135,586 525,586
2034 - - - 395,000 128,488 523,488
2035 - - - 405,000 121,061 526,061
2036 - - - 410,000 113,245 523,245
2037 - - - 420,000 105,168 525,168
2038 - - - 430,000 96,768 526,768
2039 - - - 435,000 88,125 523,125
2040 - - - 445,000 79,338 524,338
2041 - - - 455,000 70,304 525,304
2042 - - - 465,000 61,022 526,022
2043 - - - 475,000 51,490 526,490
2044 - - - 485,000 41,705 526,705
2045 - - - 495,000 31,665 526,665
2046 - - - 505,000 21,369 526,369
2047 - - - 515,000 10,815 525,815
2048 - - - - - -
2049 -
-
-
-
-
-
$ 8,210,000 $ 345,832 $ 8,555,832 $ 11,345,000 $ 3,363,506 $ 14,708,506
Water & Sewer System Revenue & Refunding
Bonds, Series 2017C
Water & Sewer System Revenue Bonds,
Series 2018A (Texas Water Development Board -
Drinking Water State Revolving Fund)
Fiscal Year Principal Interest Total Principal Interest Total
2020 $ 2,085,000 $ 2,567,281 $ 4,652,281 $ 290,000 $ 117,705 $ 407,705
2021 2,150,000 2,463,031 4,613,031 290,000 116,458 406,458
2022 2,270,000 2,355,531 4,625,531 290,000 114,805 404,805
2023 2,980,000 2,242,031 5,222,031 285,000 112,746 397,746
2024 4,045,000 2,093,031 6,138,031 285,000 110,380 395,380
2025 4,275,000 1,890,781 6,165,781 290,000 107,758 397,758
2026 6,020,000 1,677,031 7,697,031 285,000 104,829 389,829
2027 6,275,000 1,376,031 7,651,031 290,000 101,694 391,694
2028 6,555,000 1,062,281 7,617,281 290,000 98,301 388,301
2029 3,230,000 734,531 3,964,531 290,000 94,734 384,734
2030 3,275,000 605,331 3,880,331 290,000 90,964 380,964
2031 1,825,000 507,082 2,332,082 290,000 87,020 377,020
2032 3,150,000 452,332 3,602,332 285,000 82,931 367,931
2033 3,245,000 326,332 3,571,332 290,000 78,770 368,770
2034 3,345,000 196,532 3,541,532 290,000 74,362 364,362
2035 765,000 92,000 857,000 285,000 69,809 354,809
2036 765,000 61,400 826,400 285,000 65,221 350,221
2037 770,000 30,800 800,800 290,000 60,547 350,547
2038 - - - 290,000 55,704 345,704
2039 - - - 290,000 50,802 340,802
2040 - - - 285,000 45,843 330,843
2041 - - - 290,000 40,913 330,913
2042 - - - 285,000 35,867 320,867
2043 - - - 290,000 30,879 320,879
2044 - - - 290,000 25,775 315,775
2045 - - - 290,000 20,642 310,642
2046 - - - 285,000 15,480 300,480
2047 - - - 285,000 10,379 295,379
2048 -
-
-
290,000 5,249 295,249
$ 57,025,000 $ 20,733,369 $ 77,758,369 $ 8,360,000 $ 2,026,567 $ 10,386,567
Page 184 of 249
138 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September 30, 2019
Page 4 of 4
Water & Sewer System Revenue Bonds,
Series 2018B
Water & Sewer System Revenue Bonds,
Series 2019A (Texas Water Development Board -
Drinking Water State Revolving Fund)
Fiscal Year Principal Interest Total Principal Interest Total
2020 $ 955,000 $ 799,950 $ 1,754,950 $ 700,000 $ 146,578 $ 846,578
2021 955,000 780,850 1,735,850 700,000 137,060 837,060
2022 950,000 742,650 1,692,650 700,000 137,060 837,060
2023 950,000 704,650 1,654,650 700,000 137,060 837,060
2024 950,000 666,650 1,616,650 700,000 137,060 837,060
2025 950,000 628,650 1,578,650 700,000 136,920 836,920
2026 950,000 581,150 1,531,150 700,000 136,290 836,290
2027 955,000 533,650 1,488,650 700,000 135,170 835,170
2028 950,000 485,900 1,435,900 700,000 133,490 833,490
2029 955,000 438,400 1,393,400 700,000 131,250 831,250
2030 955,000 390,650 1,345,650 700,000 128,450 828,450
2031 955,000 342,900 1,297,900 700,000 125,020 825,020
2032 955,000 295,150 1,250,150 700,000 121,030 821,030
2033 950,000 247,400 1,197,400 700,000 116,550 816,550
2034 950,000 199,900 1,149,900 700,000 111,650 811,650
2035 955,000 152,400 1,107,400 700,000 106,400 806,400
2036 950,000 114,200 1,064,200 700,000 100,870 800,870
2037 950,000 76,200 1,026,200 700,000 95,060 795,060
2038 955,000 38,200 993,200 700,000 88,970 788,970
2039 - - - 700,000 82,600 782,600
2040 - - - 700,000 75,950 775,950
2041 - - - 700,000 69,020 769,020
2042 - - - 700,000 61,810 761,810
2043 - - - 700,000 54,390 754,390
2044 - - - 700,000 46,830 746,830
2045 - - - 700,000 39,200 739,200
2046 - - - 700,000 31,500 731,500
2047 - - - 700,000 23,730 723,730
2048 - - - 700,000 15,890 715,890
2049 -
-
-
700,000 7,980 707,980
$ 18,095,000 $ 8,219,500 $ 26,314,500 $ 21,000,000 $ 2,870,838 $ 23,870,838
Water & Sewer System Revenue & Refunding
Bonds, Series 2019B
Fiscal Year Principal Interest Total
2020 $ 755,000 $ 1,679,479 $ 2,434,479
2021 2,520,000 1,632,450 4,152,450
2022 2,630,000 1,506,450 4,136,450
2023 2,740,000 1,374,950 4,114,950
2024 860,000 1,237,950 2,097,950
2025 875,000 1,194,950 2,069,950
2026 885,000 1,151,200 2,036,200
2027 900,000 1,106,950 2,006,950
2028 920,000 1,061,950 1,981,950
2029 4,550,000 1,015,950 5,565,950
2030 4,805,000 788,450 5,593,450
2031 5,065,000 548,200 5,613,200
2032 1,155,000 294,950 1,449,950
2033 1,180,000 237,200 1,417,200
2034 1,210,000 190,000 1,400,000
2035 1,215,000 141,600 1,356,600
2036 580,000 93,000 673,000
2037 580,000 69,800 649,800
2038 580,000 46,600 626,600
2039 585,000 23,400 608,400
2040 - - -
2041 - - -
2042 - - -
2043 - - -
2044 - - -
2045 - - -
2046 - - -
2047 - - -
2048 -
$ 34,590,000
-
$ 15,395,479
-
$ 49,985,479
Page 185 of 249
139 City of Pearland 2019 CAFR
Statistical Section
(Unaudited)
Page 186 of 249
140 City of Pearland 2019 CAFR
Page 187 of 249
141 City of Pearland 2019 CAFR
Unaudited Statistical Section
This part of the City’s comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government's overall financial health.
Contents Page
Financial Trends 142
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 154
These schedules contain information to help the reader assess the government's
most significant local revenue sources, the property tax and sales tax.
Debt Capacity 166
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability to
issue additional debt in the future.
Demographic and Economic Information 173
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take
place.
Operating Information 176
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
Page 188 of 249
142 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000’s0
(Accrual Basis of Accounting)
Table 1
Page 1 of 2
2010 2011 2012 1 2013 1,2 2014
Governmental Activities
Net investment in capital assets $ 422,643 $ 413,439 $ 353,160 $ 391,032 $ 397,346
Restricted 18,020 16,462 38,933 43,413 52,209
Unrestricted
Total governmental activities
13,692 14,543 10,117 14,696 2,477
net position $ 454,355 $ 444,444 $ 402,210 $ 449,141 $ 452,032
Business-type activities
Net investment in capital assets $ 144,244 $ 156,629 $ 156,888 $ 165,915 $ 174,955
Restricted 17,587 5,603 9,821 9,542 14,484
Unrestricted
Total business-type activities
11,942 13,910 12,439 16,704 15,612
net position $ 173,773 $ 176,142 $ 179,148 $ 192,161 $ 205,051
Primary government
Investment in capital assets $ 566,887 $ 570,068 $ 510,048 $ 556,947 $ 572,301
Restricted 35,607 22,065 48,754 52,955 66,693
Unrestricted
Total primary government
25,634 28,453 22,556 31,400 18,089
net position $ 628,128 $ 620,586 $ 581,358 $ 641,302 $ 657,083
1 Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal
years 2012 and 2013 have been restated for comparison purposes.
2 Due to implementation of GASB 61, the City's component units are now
considered blended component units versus discretely presented as in years
prior to fiscal year 2013. Fiscal year 2012 has been restated for comparison
purposes.
Page 189 of 249
143 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000’s0
(Accrual Basis of Accounting)
Table 1
Page 2 of 2
2015 2016 2017 2018 2019
Governmental Activities
Net investment in capital assets $ 423,706 $ 439,923 $ 449,141 $ 454,670 $ 488,077
Restricted 53,883 60,640 60,310 67,263 56,491
Unrestricted
Total governmental activities
3,800 3,185 (5,045) (2,500) (742)
net position $ 481,389 $ 503,748 $ 504,406 $ 519,433 $ 543,826
Business-type activities
Net investment in capital assets $ 186,819 $ 187,937 $ 205,827 $ 210,674 $ 214,672
Restricted 13,539 15,852 13,972 14,525 15,270
Unrestricted
Total business-type activities
12,815 13,351 6,972 20,663 29,805
net position $ 213,173 $ 217,140 $ 226,771 $ 245,862 $ 259,747
Primary government
Investment in capital assets $ 610,525 $ 627,860 $ 654,968 $ 665,344 $ 702,749
Restricted 67,422 76,492 74,282 81,788 71,761
Unrestricted
Total primary government
16,615 16,536 1,927 18,163 29,063
net position $ 694,562 $ 720,888 $ 731,177 $ 765,295 $ 803,573
Page 190 of 249
144 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Account Basis of Accounting)
Table 2
Page 1 of 4
2010 2011 2012 1 2013 1,2 2014
Expenses
Governmental activities:
General Government
$ 13,439
$ 15,945
$ 13,334
$ 13,358
$ 12,241
Public Safety 24,268 23,042 27,403 28,944 32,130
Public Works 35,679 31,130 28,510 31,690 38,579
Community Services 3,323 3,254 4,267 3,807 4,687
Parks and Recreation 7,699 8,062 9,264 9,524 6,896
Economic Development - - 26,311 17,411 26,498
Interest on long-term debt 13,738 13,142 11,572 10,534 16,225
Total government activities expenses
Business-type activities:
98,146 94,575 120,661 115,268 137,256
Water and Sewer 27,157 29,192 29,392 31,289 32,444
Solid Waste 7,089 7,285 7,528 8,324 6,664
Total business-type activities 34,246 36,477 36,920 39,613 39,108
Total primary government expenses $ 132,392 $ 131,052 $ 157,581 $ 154,881 $ 176,364
Program Revenue
Governmental activities:
Charges for services:
General Government
$ 6,637 $
- $ 7,624
$ 6,326
$ 6,637
Public Safety 3,296 3,679 4,206 7,410 2,793
Public Works 10 18 43 3,096 322
Community Services 4,312 4,632 5,855 3,264 7,375
Parks and Recreation 906 2,027 2,080 2,209 2,290
Economic Development - - 413 414 430
Operating grants and contributions:
General Government 5,215 5,488 6,045 44 440
Public Safety 641 407 711 603 434
Public Works 207 675 53 1,388 7,612
Community Services 159 366 311 108 337
Parks and Recreation 424 462 542 182 474
Economic Development - - - - -
Capital grants and contributions:
General Government - - - 180 -
Public Safety 98 - - - -
Public Works 29,800 10,330 18,743 52,921 29,269
Parks and Recreation - - 100 - -
Total governmental activities program revenues 51,705 28,084 46,726 78,145 58,413 Business-
type activities:
Charges for services:
Water and Sewer 24,961 28,664 27,535 29,008 28,929
Solid Waste 7,313 7,258 7,654 8,175 7,008
Operating grants and contributions:
Water and Sewer 70 61 205 - -
Capital grants and contributions:
Water and Sewer 8,611 4,215 8,118 16,273 17,677
Total business-type activities program revenues 40,955 40,198 45,009 53,456 53,614
Total primary government program revenues $ 92,660 $ 68,282 $ 91,735 $ 131,601 $ 112,027
1 Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and 2013 have been
restated for comparison purposes.
2 Due to implementation of GASB 61, the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013. Fiscal year 2012 has been restated for
comparison purposes.
Page 191 of 249
145 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Account Basis of Accounting)
Table 2
Page 2 of 4
Expenses
2015 2016 2017 2018 2019
Governmental activities:
General Government
$ 17,189
$ 18,016
$ 20,121
$ 20,360
$ 21,249
Public Safety 33,179 38,933 44,343 43,275 47,948
Public Works 45,894 46,449 49,221 53,271 46,631
Community Services 3,641 3,711 5,107 4,509 4,616
Parks and Recreation 3,731 4,820 8,823 7,194 7,683
Economic Development 26,159 31,330 31,293 29,521 33,470
Interest on long-term debt 15,569 15,946 14,422 14,441 14,017
Total government activities expenses
Business-type activities:
Water and Sewer
145,362
34,266
159,205
37,941
173,331
41,475
172,571
41,683
175,614
39,413
Solid Waste 6,417 6,833 7,059 7,441 7,752
Total business-type activities 40,683 44,774 48,534 49,124 47,165
Total primary government expenses $ 186,045 $ 203,979 $ 221,865 $ 221,695 $ 222,779
Program Revenue
Governmental activities:
Charges for services:
General Government $ 7,624 $ 8,547 $ 9,518 $ 10,414 $ 10,826
Public Safety 4,110 4,276 3,949 3,777 4,413
Public Works 338 320 1,395 253 1,379
Community Services 7,771 8,520 8,026 6,566 6,888
Parks and Recreation 2,412 2,218 2,001 2,766 2,328
Economic Development 1,209 13 3,886 3,503 1,951
Operating grants and contributions:
General Government 747 2,595 - - -
Public Safety 294 - - 11 -
Public Works 4,589 11,123 12,459 5,884 8,765
Community Services 216 - 575 232 239
Parks and Recreation 1,586 - - - -
Economic Development - - - - -
Capital grants and contributions:
General Government - - - - -
Public Safety - - - - -
Public Works 36,440 24,636 10,107 19,241 16,678
Parks and Recreation - - -
- -
Total governmental activities program revenues
Business-type activities:
Charges for services:
Water and Sewer
67,336
30,201
62,248
43,677
51,916
51,544
52,647
55,593
53,467
55,696
Solid Waste 6,637 6,945 6,549 7,842 8,621
Operating grants and contributions:
Water and Sewer 2,512 30 - - -
Capital grants and contributions:
Water and Sewer 13,177 4,094 2,027 4,613 4,113
Total business-type activities program revenues 52,527 54,746 60,120 68,048 69,927
Total primary government program revenues $ 119,863 $ 116,994 $ 112,036 $ 120,695 $ 123,394
Page 192 of 249
146 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Account Basis of Accounting)
Table 2
Page 3 of 4
2010 2011 2012 1 2013 1,2 2014
Net (Expense)/Revenue
Governmental activities
$ (46,441)
$ (66,491)
$ (73,935)
$ (37,123)
$ (78,843)
Business-type activities 6,709 3,721 8,089 13,843 14,506
Total primary government net expense $ (39,732) $ (62,770) $ (65,846) $ (23,280) $ (64,337)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes $ 31,140 $ 32,963 $ 33,451 $ 52,230 $ 54,433
Sales and use taxes 14,218 13,578 13,983 22,969 24,942
Franchise taxes 5,075 5,426 5,605 5,670 5,999
Investment earnings 1,376 253 157 134 155
Miscellaneous 6,294 1,028 1,854 1,554 1,701
Special item - - - - -
Transfers 621 1,186 1,475 2,269 1,607
Total governmental activities $ 58,724 $ 54,434 $ 56,525 $ 84,826 $ 88,837
Business-type activities:
Investment earnings
$ 363
$ 100
$ 116
$ 68
$ 95
Miscellaneous 23 779 9 444 682
Transfers (621) (1,186) (1,475) (2,269) (1,607)
Total business-type activities (235) (307) (1,350) (1,757) (830)
Total primary government $ 58,489 $ 54,127 $ 55,175 $ 83,069 $ 88,007
Change in Net Position:
Governmental activities
$ 12,283
$ (12,057)
$ (17,410)
$ 47,703
$ 9,994
Business-type activities 6,474 3,414 6,739 12,086 13,676
Total primary government $ 18,757 $ (8,643) $ (10,671) $ 59,789 $ 23,670
1 Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and 2013 have been
restated for comparison purposes.
2 Due to implementation of GASB 61, the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013. Fiscal year 2012 has been restated for
comparison purposes.
Page 193 of 249
147 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Account Basis of Accounting)
Table 2
Page 4 of 4
2015 2016 2017 2018 2019
Net (Expense)/Revenue
Governmental activities $ (78,026) $ (96,957) $ (121,414) $ (119,924) $ (122,148)
Business-type activities 11,844 9,972 11,586 18,924 22,762
Total primary government net expense $ (66,182) $ (86,985) $ (109,828) $ (101,000) $ (99,386)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes $ 57,378 $ 62,974 $ 76,686 $ 83,803 $ 89,930
Sales and use taxes 27,295 29,970 31,976 35,437 34,872
Franchise taxes 6,484 6,971 7,263 7,358 7,480
Investment earnings 254 491 622 1,651 3,293
Miscellaneous 2,398 4,149 3,108 4,691 562
Special item (3,039) - - - -
Transfers 2,031 2,828 2,417 3,103 11,364
Total governmental activities $ 92,801 $ 107,383 $ 122,072 $ 136,043 $ 147,501
Business-type activities:
Investment earnings
$ 139
$ 325
$ 396
$ 1,361
$ 2,947
Miscellaneous 274 219 66 7 2,361
Transfers (2,030) (2,828) (2,417) (3,103) (11,364)
Total business-type activities (1,617) (2,284) (1,955) (1,735) (6,056)
Total primary government $ 91,184 $ 105,099 $ 120,117 $ 134,308 $ 141,445
Change in Net Position:
Governmental activities
$ 14,775
$ 10,426
$ 658
$ 16,117
$ 25,353
Business-type activities 10,227 7,688 9,631 17,189 16,706
Total primary government $ 25,002 $ 18,114 $ 10,289 $ 33,306 $ 42,059
Page 194 of 249
148 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Table 3
Page 1 of 2
General fund
2010 2011 2012 2013 1 2014
Non-spendable $ 146 $ 130 $ 182 $ 158 $ 202
Restricted - 126 - - -
Assigned 117 160 167 1,554 1,394
Unassigned 12,599 14,108 17,222 16,911 17,859
Total General Fund $ 12,862 $ 14,524 $ 17,571 $ 18,623 $ 19,455
All other governmental funds
Non-spendable $ - $ - $ - $ 183 $ 209
Restricted
Debt service 6,705 5,160 4,992 5,192 5,951
Capital improvements 30,893 23,461 13,776 14,536 17,519
Public safety 612 541 702 715 390
Economic Development - - - 20,777 23,814
Community development programs
Tourism 1,394 1,452 1,821 2,267 2,994
Parks and recreation 1,214 1,143 968 985 168
Capital projects - other 962 810 797 866 -
Other 79 87 215 638 918
Unassigned - -
-
-
-
Total other Governmental Funds $ 41,859 $ 32,654 $ 23,271 $ 46,159 $ 51,963
1 Due to implementation of GASB 61, the City's component units are now considered blended
component units versus discretely presented as in years prior to fiscal year 2013.
Page 195 of 249
149 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Table 3
Page 2 of 2
2015 2016 2017 2018 2019
General fund
Non-spendable $ 293 $ 151 $ 101 $ 136 $ 15
Restricted - - - - -
Assigned 1,406 3,994 3,000 1,538 1,521
Unassigned 19,655 16,775 11,262 12,314 15,666
Total General Fund $ 21,354 $ 20,919 $ 14,363 $ 13,988 $ 17,202
All other governmental funds
Non-spendable
$ 173
$ -
$ 4
$ -
$ -
Restricted
Debt service
5,835
8,276
5,912
6,797
5,427
Capital improvements 22,484 47,361 59,200 43,912 52,952
Public safety 394 342 364 506 504
Economic Development
Community development programs
Tourism
24,117
3,685
32,844
4,194
36,795
4,604
44,634
4,661
34,659
5,388
Parks and recreation 105 131 262 517 530
Capital projects - other - - - - -
Other 1,149 1,264 779 783 1,313
Unassigned - - (28) (52) (28)
Total other Governmental Funds $ 57,940 $ 94,411 $ 107,892 $ 101,758 $ 100,745
Page 196 of 249
150 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Table 4
Page 1 of 2
2010 2011 2012 2013 1 2014
Revenues
Property taxes $ 32,856 $ 33,454 $ 34,362 $ 54,475 $ 57,378
Sales and use taxes 13,578 13,983 15,632 24,942 27,295
Franchise fees 5,426 5,605 5,817 5,999 6,484
Licenses and permits 1,807 1,721 2,320 2,989 4,149
Fines and forfeitures 2,475 2,895 3,374 3,534 3,121
Charges for services 9,328 11,687 11,891 12,982 13,078
Investment earnings 591 156 92 154 254
Intergovernmental 3,689 2,199 3,089 4,595 2,541
Other 982 1,560 2,541 7,973 4,157
Total Revenues 70,732 73,260 79,118 117,643 118,457
Expenditures
General government
8,527
10,866
7,784
7,958
8,027
Public safety 23,784 23,926 25,372 26,204 29,171
Public works 7,108 6,505 5,533 7,812 8,121
Community services 3,839 3,376 4,246 3,523 3,960
Parks and recreation 6,305 7,539 7,499 7,244 7,816
Economic development
Debt service:
Principal
6,200
8,217
9,373
17,414
15,637
25,248
15,815
Interest and other charges 13,635 13,543 12,401 15,859 16,373
Capital outlay 61,317 25,703 9,201 22,101 15,536
Intergovernmental 3,794 3,954 3,992 4,058 4,307
Total Expenditures 134,509 103,629 85,401 127,810 134,374
Excess of revenues over (under) expenditures (63,777) (30,369) (6,283) (10,167) (15,917)
Other Financing Sources (Uses)
Transfers in
3,498
3,525
5,909
15,515
16,507
Transfers out (2,312) (2,050) (5,096) (14,583) (16,967)
Debt issued 28,962 21,637 49,805 12,060 49,560
Payment to Escrow Agent - (1,630) (54,478) - (33,182)
Capital leases 2,050 1,289 - 1,179 1,853
Other - 56 3,809 331 4,784
Total other Financing Sources (uses) 32,198 22,826 (51) 14,502 22,555
Net change in fund balances $ (31,579) $ (7,543) $ (6,334) $ 4,335 $ 6,638
Debt service as a percentage of noncapital
expenditures
27.1%
27.9%
28.3%
29.8%
27.0%
1 Due to implementation of GASB 61, the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013.
Page 197 of 249
151 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Table 4
Page 2 of 2
Revenues
2015 2016 2017 2018 2019
Property taxes $ 62,922 $ 67,569 $ 76,562 $ 83,484 $ 90,252
Sales and use taxes 29,970 31,293 31,976 35,437 34,872
Franchise fees 6,971 7,228 7,263 7,358 7,480
Licenses and permits 4,544 5,677 5,435 4,146 4,198
Fines and forfeitures 3,108 2,931 2,654 2,468 2,712
Charges for services 14,661 15,313 16,015 16,769 17,726
Investment earnings 433 728 619 1,600 3,186
Intergovernmental 3,197 15,959 16,010 8,579 10,329
Other 7,076 5,065 5,736 7,200 3,947
Total Revenues 132,882 151,765 162,270 167,041 174,702
Expenditures
General government
10,470
11,609
11,223
11,300
11,173
Public safety 32,229 36,818 40,858 41,273 42,716
Public works 10,298 13,292 17,365 16,968 12,596
Community services 3,408 4,294 4,837 4,313 4,219
Parks and recreation 5,823 6,458 6,419 5,959 6,065
Economic development
Debt service:
Principal
25,625
23,790
31,051
19,736
29,001
24,341
29,195
23,547
38,288
38,007
Interest and other charges 16,595 15,841 15,221 15,814 15,646
Capital outlay 24,471 31,982 43,860 43,474 39,541
Intergovernmental 4,792 4,847 6,937 7,168 7,325
Total Expenditures 157,501 175,928 200,062 199,011 215,576
Excess of revenues over (under) expenditures (24,619) (24,163) (37,792) (31,970) (40,874)
Other Financing Sources (Uses)
Transfers in
17,043
26,062
28,466
24,456
34,200
Transfers out (15,233) (20,844) (26,860) (22,266) (22,866)
Debt issued 81,258 142,701 115,718 24,223 44,292
Payment to Escrow Agent (54,303) (89,638) (72,608) - (12,551)
Capital leases 574 1,918 - - -
Other 3,157 -
-
-
-
Total other Financing Sources (uses) 32,496 60,199 44,716 26,413 43,075
Net change in fund balances $ 7,877 $ 36,036 $ 6,924 $ (5,557) $ 2,201
Debt service as a percentage of noncapital
expenditures
29.9%
24.8%
25.3%
24.9%
30.3%
1 Due to implementation of GASB 61, the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013.
Page 198 of 249
152 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPENDING AND GROWTH ANALYSIS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Table 4.5
Page 1 of 2
Amounts in (000's)
Expenditures
2010
2011
2012
2013
2014
2015
General Gov't $ 19,561 $ 10,877 $ 7,797 $ 7,958 $ 8,027 $ 10,470
Public Safety 23,784 23,926 25,372 26,204 29,171 32,229
Public Works 7,108 6,505 5,533 7,812 8,121 10,298
Community Services 3,839 3,376 4,246 3,523 3,960 3,408
Parks & recreation 6,305 7,539 7,499 7,244 7,816 5,823
Economic Development 15,426 17,391 20,397 17,414 25,248 25,625
Debt Service - principal 8,525 10,847 12,893 15,637 15,815 23,790
Debt service - interest 17,096 17,154 15,534 15,859 16,373 16,595
Capital outlay 64,563 25,768 9,201 22,101 15,536 24,471
Intergovernmental 4,234 4,127 4,158 4,058 4,307 4,792
Total $ 170,441 $ 127,510 $ 112,630 $ 127,810 $ 134,374 $ 157,501
Distribution of Spending
General Gov't
11.5%
8.5%
6.9%
6.2%
6.0%
6.6%
Public Safety 14.0% 18.8% 22.5% 20.5% 21.7% 20.5%
Public Works 4.2% 5.1% 4.9% 6.1% 6.0% 6.5%
Community Services 2.3% 2.6% 3.8% 2.8% 2.9% 2.2%
Parks & recreation 3.7% 5.9% 6.7% 5.7% 5.8% 3.7%
Economic Development 9.1% 13.6% 18.1% 13.6% 18.8% 16.3%
Debt Service - principal 5.0% 8.5% 11.4% 12.2% 11.8% 15.1%
Debt service - interest 10.0% 13.5% 13.8% 12.4% 12.2% 10.5%
Capital outlay 37.9% 20.2% 8.2% 17.3% 11.6% 15.5%
Intergovernmental 2.5% 3.2% 3.7% 3.2% 3.2% 3.0%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Per Capita Expenditures
Adjusted for CPI
POPULATION 94,100 97,200 99,800 104,100 106,900 112,300
PER CAPITA $ 1,811 $ 1,312 $ 1,129 $ 1,228 $ 1,257 $ 1,403
CPI INDEX (NATIONAL) 218.06 224.94 229.59 232.96 234.75 236.70
PER CAPITA ADJ TO 2019 $ 2,133 $ 1,497 $ 1,262 $ 1,353 $ 1,375 $ 1,521
PER CAPITA ADJ TO 2010 $ 1,811 $ 1,272 $ 1,072 $ 1,149 $ 1,168 $ 1,292
Page 199 of 249
153 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
SPENDING AND GROWTH ANALYSIS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Table 4.5
Page 2 of 2
Amounts in (000's)
Ten
Year
Average
Compounded
Expenditures 2016 2017 2018 2019 % CHG Growth Rate
General Gov't $ 11,609 $ 11,223 $ 11,363 $ 11,300 -42.2% -5.91%
Public Safety 36,818 40,858 41,281 41,273 73.5% 6.32%
Public Works 13,292 17,365 16,998 16,968 138.7% 10.15%
Community Services 4,294 4,837 4,313 4,313 12.3% 1.30%
Parks & recreation 6,458 6,419 5,960 5,959 -5.5% -0.63%
Economic Development 31,051 29,001 29,195 29,195 89.3% 7.35%
Debt Service - principal 19,736 24,341 23,547 23,547 176.2% 11.95%
Debt service - interest 15,841 15,221 15,814 15,814 -7.5% -0.86%
Capital outlay 31,982 43,860 44,321 43,474 -32.7% -4.30%
Intergovernmental 4,847 6,937 7,168 7,168 69.3% 6.02%
Total $ 175,928 $ 200,062 $ 199,960 $ 199,011 16.8% 1.74%
Distribution of Spending
General Gov't
6.6%
5.6%
5.7%
5.7%
Public Safety 20.9% 20.4% 20.6% 20.7%
Public Works 7.6% 8.7% 8.5% 8.5%
Community Services 2.4% 2.4% 2.2% 2.2%
Parks & recreation 3.7% 3.2% 3.0% 3.0%
Economic Development 17.6% 14.5% 14.6% 14.7%
Debt Service - principal 11.2% 12.2% 11.8% 11.8%
Debt service - interest 9.0% 7.6% 7.9% 7.9%
Capital outlay 18.2% 21.9% 22.2% 21.8%
Intergovernmental 2.8% 3.5% 3.6% 3.6%
Total 100.0% 100.0% 100.0% 100.0%
Average
Compounded
Per Capita Expenditures
Adjusted for CPI
Growth Rate
POPULATION 117,100 121,500 125,198 127,500 3.43%
PER CAPITA $ 1,502 $ 1,647 $ 1,597 $ 1,561 -1.64%
CPI INDEX (NATIONAL) 241.40 246.37 252.44 256.76 1.83%
PER CAPITA ADJ TO 2019 $ 1,598 $ 1,716 $ 1,624 $ 1,561 -3.41%
PER CAPITA ADJ TO 2010 $ 1,357 $ 1,457 $ 1,380 $ 1,326 -3.41%
Page 200 of 249
154 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Table 5
Page 1 of 2
Real Property
Fiscal
Year
Tax
Year
Residential
Commercial
Personal
Property
Less Tax Exempt
Real Property
2010 2009 $ 4,673,324,896 $ 1,762,831,286 $ 632,160,830 $ 484,145,515
2011 2010 4,916,409,359 1,833,483,370 527,132,210 590,247,297
2012 2011 4,929,336,548 1,897,683,176 488,098,315 592,996,676
2013 (1) 2012 5,042,965,503 1,954,587,058 612,564,952 617,274,555
2014 2013 5,530,854,515 1,966,675,342 614,461,500 627,308,465
2015 2014 6,000,588,340 2,035,398,664 670,832,220 673,524,095
2016 2015 6,687,172,478 2,200,841,575 677,182,023 677,182,023
2017 2016 7,800,700,555 2,552,439,217 776,125,452 835,697,201
2018 2017 8,160,296,748 3,201,012,344 801,094,174 916,937,992
2019 2018 8,388,984,355 3,467,102,770 880,377,068 882,979,174
Notes:
(1)
Assessed valuation for fiscal year 2013 does not include Brazoria County Mud #4 valuation of
$241,712,166 that was annexed into the City on December 31, 2012.
Assessed values presented here are for the City and Tax Increment Reinvestment Zone.
Assessed value based on adjusted tax roll at year end.
Page 201 of 249
155 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Table 5
Page 2 of 2
Fiscal
Year
Tax
Year
Less Other
Exemptions and
Abatements
Total Taxable
Assessed Value
Total
Direct Tax
Rate
Estimated Actual
Taxable Value
Assessed Value
as a Percent of
Actual Taxable
Value
2010 2009 $ 315,123,559 $ 6,269,047,937 0.6526 $ 6,269,047,937 100%
2011 2010 355,054,613 6,331,723,029 0.6651 6,331,723,029 100%
2012 2011 352,494,382 6,369,626,981 0.6851 6,369,626,981 100%
2013 (1) 2012 454,866,920 6,537,976,038 0.7051 6,537,976,038 100%
2014 2013 487,709,374 6,996,973,518 0.7051 6,996,973,518 100%
2015 2014 452,738,140 7,580,556,989 0.7121 7,580,556,989 100%
2016 2015 423,238,764 8,464,775,289 0.7053 8,464,775,289 100%
2017 2016 571,315,443 9,722,252,580 0.6812 9,722,252,580 100%
2018 2017 681,810,199 10,563,655,075 0.6851 10,563,655,075 100%
2019 2018 904,072,816 10,949,412,203 0.7092 10,949,412,203 100%
Notes:
(1)
Assessed valuation for fiscal year 2013 does not include Brazoria County Mud #4
valuation of $241,712,166 that was annexed into the City on December 31, 2012.
Assessed values presented here are for the City and Tax Increment Reinvestment Zone.
Assessed value based on adjusted tax roll at year end.
Page 202 of 249
156 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(Rate per $100 assessed value)
Table 6
Page 1 of 3
City Direct Rates Overlapping Rates (a)
Fiscal
Year
M & O
Rate
I & S
Rate
Total
Direct
Pearland
Independent
School
District
Pasadena
Independent
School
District
Alvin
Independent
School
District
Alvin
Comm
College
Brazoria
County
Fort
Bend
County
2010
0.220
0.433
0.653
1.419
1.350
1.304
0.200
0.426
0.500
2011 0.215 0.450 0.665 1.419 1.350 1.304 0.200 0.463 0.500
2012 0.215 0.470 0.685 1.419 1.350 1.344 0.199 0.473 0.500
2013 0.215 0.490 0.705 1.419 1.350 1.329 0.200 0.486 0.500
2014 0.215 0.490 0.705 1.416 1.350 1.329 0.194 0.492 0.500
2015 0.222 0.490 0.712 1.416 1.350 1.417 0.204 0.499 0.495
2016 0.223 0.483 0.705 1.416 1.350 1.417 0.204 0.486 0.486
2017 0.241 0.440 0.681 1.416 1.350 1.450 0.192 0.457 0.474
2018 0.255 0.430 0.685 1.416 1.480 1.450 0.181 0.440 0.458
2019 0.279 0.430 0.709 1.416 1.416 1.450 0.188 0.368 0.445
Source: Brazoria County, Harris County, and Fort Bend County Appraisal Districts.
(a) Overlapping rates are those of local and county governments that apply to property owners within the City of Pearland. Not
all overlapping rates apply to all Pearland property owners; for example, although the county property tax rates apply to all.
Page 203 of 249
157 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(Rate per $100 assessed value)
Table 6
Page 2 of 3
Overlapping Rates (a)
Fiscal
Year
Harris
County
Port of
Houston
Authority
Harris
County
Flood
Control
Harris
County
Hospital
District
Harris
County
Dept of
Education
Brazoria/
Ft Bend
MUD
No. 1
MUD
No. 17
MUD
No. 18
MUD
No. 19
2010
0.392
0.016
0.029
0.192
0.060
0.850
0.600
0.560
0.630
2011 0.388 0.021 0.029 0.192 0.007 0.850 0.547 0.550 0.620
2012 0.391 0.019 0.028 0.192 0.007 0.850 0.547 0.545 0.600
2013 0.400 0.020 0.028 0.182 0.007 0.850 0.547 0.530 0.580
2014 0.415 0.017 0.028 0.170 0.006 0.850 0.544 0.510 0.550
2015 0.417 0.015 0.027 0.170 0.006 0.850 0.520 0.470 0.510
2016 0.419 0.013 0.027 0.170 0.005 0.848 0.460 0.390 0.450
2017 0.417 0.013 0.028 0.172 0.005 0.848 0.410 0.350 0.400
2018 0.418 0.013 0.028 0.171 0.005 0.848 0.380 0.310 0.380
2019 0.419 0.012 0.029 0.171 0.005 0.848 0.380 0.310 0.360
Source: Brazoria County, Harris County, and Fort Bend County Appraisal Districts.
(a) Overlapping rates are those of local and county governments that apply to property owners within the City of
Pearland. Not all overlapping rates apply to all Pearland property owners; for example, although the county property
tax rates apply to all.
Page 204 of 249
158 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(Rate per $100 assessed value)
Table 6
Page 3 of 3
Overlapping Rates (a)
Fiscal
Year
MUD
No. 23
MUD
No. 26
MUD
No. 28
MUD
No. 34
MUD
No. 35
2010
0.800
0.710
0.820
0.850
1.020
2011 0.770 0.710 0.820 0.850 1.020
2012 0.630 0.690 0.820 0.850 1.020
2013 0.610 0.690 0.820 0.850 1.020
2014 0.600 0.690 0.820 0.850 1.020
2015 0.580 0.690 0.820 0.850 1.020
2016 0.540 0.690 0.820 0.820 1.020
2017 0.480 0.690 0.820 0.800 1.020
2018 0.470 0.690 0.820 0.800 1.000
2019 0.460 0.690 0.820 0.780 1.000
Source: Brazoria County, Harris County, and Fort Bend County Appraisal Districts.
(a) Overlapping rates are those of local and county governments that apply to property owners within the City of
Pearland. Not all overlapping rates apply to all Pearland property owners; for example, although the county
property tax rates apply to all.
Page 205 of 249
159 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Table 7
Fiscal
Year Taxes Levied
Collected within the
Fiscal Year of the Levy
Collections
Total Collections to Date
Ended for the Percentage in Subsequent Percentage
Sept 30, Fiscal Year Amount of Levy Years Amount of Levy
2010 41,081,407 40,590,543 98.81% 443,824 41,034,367 99.9%
2011 41,968,046 41,594,389 99.11% 334,334 41,928,723 99.9%
2012 43,441,792 43,110,373 99.24% 314,070 43,424,443 100.0%
2013 45,850,625 45,509,522 99.26% 295,837 45,805,359 99.9%
2014 49,096,473 48,802,720 99.40% 231,224 49,033,944 99.9%
2015 53,463,919 53,175,174 99.46% 164,468 53,339,642 99.8%
2016 58,829,331 58,545,664 99.52% 108,001 58,653,665 99.7%
2017 64,977,413 64,579,894 99.39% 162,638 64,742,532 99.6%
2018 70,633,922 70,216,601 99.41% 149,069 70,365,670 99.6%
2019 75,680,458 75,276,247 99.47% - 75,276,247 99.5%
Source: Brazoria County Tax Office
Note: Taxes levied based on adjusted tax roll.
Page 206 of 249
160 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
Current Year and Nine Years Ago
Table 8
Taxpayer
2019 2010
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
Pearland Town Center LP $ 92,488,650 1 0.84% $ 75,533,070 1 1.21%
HCA Healthcare Corp 75,650,360 2 0.69%
Amreit SPF Shadow Creek LP 66,511,460 3 0.61% 49,613,650 4 0.79%
Mar Shadow Creek LP 57,306,070 4 0.52%
Weatherford U.S., Inc. 45,442,990 5 0.41% 58,636,172 2 0.94%
Goodgarden Owner GP 38,500,000 6 0.35%
DD Shadow Creek V LLC 37,000,000 7 0.34%
Brazoria SCR Associates LLC 35,842,780 8 0.33%
W-F&B 11900 Shadow Creek VIII 35,250,000 9 0.32%
Discovery Shadow Creek Owner
Pearland Investments LTD
35,126,160 10 0.32%
52,997,630
3
0.85%
Inland American Shadow Creek 30,000,000 5 0.48%
Pearland Lifestyle Center, LP 26,040,041 6 0.42%
CenterPoint Energy, Inc. 24,885,690 7 0.40%
Inland American Waterford, LTD 24,500,480 8 0.39%
Walmart Real Estate 24,373,700 9 0.39%
Total $ 519,118,470 4.73% $ 390,859,033 6.26%
Source: Brazoria County Appraisal District
* Tax Year 2018
Page 207 of 249
161 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
2018 TOTAL TAXES
Table 8A
Page 1 of 3
Taxpayer
Property Use
Taxable Value
Taxing Unit
Tax Rate
Pearland Town
Center LP
Retail mixed use
center
$92,488,650
HCA
Healthcare
Corp
Health
Care/Hospital
$75,650,360
Amreit SPF
Shadow
Creek LP
Retail
$66,511,460
Alvin ISD
1.450000
1,341,085
1,051,010
964,416
Pearland ISD 1.415600 - 44,831 -
Houston ISD 1.206700 - - -
City of Pearland 0.709158 655,891 536,481 471,671
Harris County 0.418580 - - -
Brazoria County 0.367914 340,279 278,328 244,705
Alvin Community College 0.187775 173,671 16,567 124,892
Harris County Hospital District 0.171080 - - -
Brazoria Drainage Dist 4 0.146000 135,033 110,450 97,107
Brazoria county MUD #26 0.690000 - - -
Houston Community College System 0.100263 - - -
Pearland Municipal Management
District #2 0.087500 80,928 - 58,198
Brazoria County Special Road &
Bridge 0.060000 55,493 45,390 39,907
Harris County Flood Control Dist 0.287700 - - -
Port of Houston Authority 0.115500 - - -
Harris County Dept. of Education 0.005190 - - -
Total Tax $ 2,782,380 $ 2,083,056 $ 2,000,896
% Paid to City of Pearland
23.6%
25.8%
23.6%
Source: Brazoria County Tax Office & Harris County Tax Office
Page 208 of 249
162 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
2018 TOTAL TAXES
Table 8A
Page 2 of 3
Taxpayer
Property Use
Taxable Value
Taxing Unit
Tax Rate
Mar Shadow
Creek LP
Multi-Family
Housing
$57,306,070
Weatherford
US LP
Oil & Gas
Service
$45,442,990
Goodgarden
Owner GP
Multi-Family
Housing
$38,500,000
Alvin ISD
1.450000
830,938
-
558,250
Pearland ISD 1.415600 - 643,291 -
Houston ISD 1.206700 - - -
City of Pearland 0.709158 406,391 322,263 273,026
Harris County 0.418580 - - -
Brazoria County 0.367914 210,837 167,191 141,647
Alvin Community College 0.187775 107,606 - 72,293
Harris County Hospital District 0.171080 - - -
Brazoria Drainage Dist 4 0.146000 83,667 66,347 56,210
Brazoria county MUD #26 0.690000 - - -
Houston Community College System 0.100263 - - -
Pearland Municipal Management
District #2 0.087500 - - -
Brazoria County Special Road &
Bridge 0.060000 34,384 27,266 23,100
Harris County Flood Control Dist 0.287700 - - -
Port of Houston Authority 0.115500 - - -
Harris County Dept. of Education 0.005190 - - -
Total Tax $ 1,673,823 $ 1,226,357 $ 1,124,526
% Paid to City of Pearland
24.3%
26.3%
24.3%
Page 209 of 249
163 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
PRINCIPAL PROPERTY TAX PAYERS
2018 TOTAL TAXES
Table 8A
Page 3 of 3
Taxpayer
Property Use
Taxable Value
Taxing Unit
Tax Rate
DD SCR V
LLC
Multi-Family
Housing
$37,000,000
Brazoria-SCR
Associates LLC
& Shadow Cre
Multi-Family
Housing
$ 35,842,780
W-F&B 11900
Shadow Creek
VIII
Multi-Family
Housing
$ 35,250,000
Discovery
Shadow Creek
Owner
Multi-Family
Housing
$35,126,160
Alvin ISD
1.450000
536,500
519,720
511,125
509,329
Pearland ISD 1.415600 - - -
Houston ISD 1.206700 - - -
City of Pearland 0.709158 262,388 254,182 249,978 249,100
Harris County 0.418580 - - - -
Brazoria County 0.367914 136,128 131,871 129,690 129,234
Alvin Community College 0.187775 69,477 67,304 66,191 65,958
Harris County Hospital District 0.171080 - - - -
Brazoria Drainage Dist 4 0.146000 54,020 52,330 51,465 51,284
Brazoria county MUD #26 0.690000 - - 243,225 -
Houston Community College System 0.100263 - - - -
Pearland Municipal Management
District #2 0.087500 - - - -
Brazoria County Special Road &
Bridge 0.060000 22,200 21,506 21,150 21,076
Harris County Flood Control Dist 0.287700 - - - -
Port of Houston Authority 0.115500 - - - -
Harris County Dept. of Education 0.005190 - - - -
Total Tax $ 1,080,713 $ 1,046,913 $ 1,272,824 $ 1,025,981
% Paid to City of Pearland
24.3%
24.3%
19.6%
24.3%
Page 210 of 249
164 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
TAXABLE SALES BY CATEGORY
Last Ten Calendar Years
(In thousands of dollars)
Table 9
Page 1 of 2
Calendar Year
2010 2011 2012 2013 2014
Retail Trade $ 673,714 $ 697,419 $ 764,460 $ 828,225 $ 871,813
Accommodations & Food Services 155,345 172,126 198,439 215,705 240,961
Real Estate/Rental/Leasing 46,811 48,059 61,690 55,811 61,392
Manufacturing 39,582 49,474 48,213 34,562 51,274
Wholesale Trade 30,730 33,163 33,566 34,356 42,915
Other Services (Except Public Admin) 25,114 29,557 30,669 34,119 38,539
Information 15,672 16,896 19,194 24,369 29,602
Construction 15,537 17,558 23,181 24,367 26,350
Arts, Entertainment & Recreation 11,315 11,511 12,710 13,569 14,692
Mining, Quarrying, Oil and Gas 3,246 3,316 3,726 12,865 14,520
Admin/Support/Waste Mgmt/Remediation 10,650 11,004 12,696 13,344 12,963
Professional/Scientific/Technical 6,277 7,072 9,037 11,210 10,531
Health Care/Social Assistance 184 252 351 1,065 3,205
Finance, Insurance 1,404 1,261 1,347 1,246 1,483
Agriculture, Forestry, Fishing 180 306 468 772 728
Transportation/Warehousing 282 418 425 318 406
Educational Services 207 314 429 372 350
Utilities 3 187 3 7 7
Total $ 1,036,253 $ 1,099,893 $ 1,220,604 $ 1,306,282 $ 1,421,731
City direct sales tax rate b 1.00% 1.00% 1.00% 1.00% 1.00%
Source: State Comptroller's Office.
a 2019 taxable sales thru 2nd quarter of 2019.
b The City direct sales tax rate includes the City only
and not the Pearland Economic Development Corp. (4B).
Page 211 of 249
165 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
TAXABLE SALES BY CATEGORY
Last Ten Calendar Years
(In thousands of dollars)
Table 9
Page 2 of 2
Calendar Year
2015 2016 2017 2018 2019 a
Retail Trade $ 961,565 $ 999,033 $ 1,042,624 $ 1,056,690 $ 492,677
Accommodations & Food Services 272,540 298,860 316,070 341,462 179,351
Real Estate/Rental/Leasing 48,024 32,786 44,540 44,467 21,803
Manufacturing 41,175 40,192 39,860 39,133 16,082
Wholesale Trade 41,491 48,114 49,702 56,347 29,469
Other Services (Except Public Admin) 40,373 40,181 41,711 43,812 21,285
Information 33,614 33,449 35,824 39,187 17,779
Construction 32,168 24,655 21,363 27,310 17,359
Arts, Entertainment & Recreation 15,555 16,020 16,344 17,127 8,821
Mining, Quarrying, Oil and Gas 7,285 8,141 11,682 11,125 1,187
Admin/Support/Waste Mgmt/Remediation 12,808 12,725 14,489 16,918 8,951
Professional/Scientific/Technical 11,307 12,177 6,689 8,371 5,541
Health Care/Social Assistance 5,007 2,307 3,751 3,355 2,314
Finance, Insurance 2,226 2,182 2,108 1,906 1,066
Agriculture, Forestry, Fishing 1,609 2,112 3,471 2,496 1,168
Transportation/Warehousing 285 372 560 678 362
Educational Services 393 406 439 512 231
Utilities -
-
-
-
-
Total $ 1,527,425 $ 1,573,712 $ 1,651,227 $ 1,710,896 $ 825,446
City direct sales tax rate b 1.00% 1.00% 1.00% 1.00% 1.00%
Source: State Comptroller's Office.
a 2019 taxable sales thru 2nd quarter of 2019.
b The City direct sales tax rate includes the City only
and not the Pearland Economic Development Corp. (4B).
Page 212 of 249
166 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(Dollars in thousands, except per capita)
Table 10
Page 1 of 2
Governmental Activities Business-Type Activities
General Unamortized Capital Permanent
Fiscal Obligation Certificates Revenue Premiums/ Lease Revenue Improvement
Year Bonds of Obligation Bonds (Discounts) Obligations Bonds Bonds
2010 $ 193,785 $ 92,380 $ - $ 3,277 $ 3,237 $ 116,440 $ 10,540
2011 207,105 91,150 - 3,173 4,032 113,270 9,730
2012 224,170 65,425 3,629 6,479 3,407 109,305 15,130
2013* 236,199 64,690 75,125 6,159 3,681 105,690 14,020
2014 246,791 56,505 80,186 10,122 4,344 102,517 12,865
2015 261,998 50,030 77,012 16,185 3,629 108,099 11,305
2016 262,865 50,070 91,370 18,793 4,229 173,570 9,775
2017 283,140 37,505 97,215 25,832 1,838 196,200 7,360
2018 278,175 41,750 98,025 23,844 1,282 214,705 4,845
2019 269,520 51,620 85,065 26,639 761 232,415 4,480
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Due to implementation of GASB 61 in fiscal year 2013, the City's component units are now considered blended
component units versus discretely as in years prior to fiscal year 2013. As such, the outstanding debt for the
components units have been added; however, the City, or primary government is not legally responsible for the
payment of its debt.
Page 213 of 249
167 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(Dollars in thousands, except per capita)
Table 10
Page 2 of 2
Business-Type Activities
Excluding
Unamortized Capital Total Percentage Total Component
Fiscal Premiums/ Lease Primary of Personal Per Units
Year (Discounts) Obligations Government Income Capita Per Capita
2010 $ 783 $ 345 $ 420,787 13.5% $ 4,429 $ -
2011 656 421 429,537 14.3% 4,380 -
2012 882 342 428,769 13.1% 4,223 -
2013* 730 253 506,547 14.1% 4,800 4,019
2014 592 169 514,091 13.2% 4,709 3,859
2015 659 82 528,999 12.6% 4,561 3,875
2016 850 375 611,897 13.2% 5,225 4,445
2017 9,395 257 658,742 15.3% 5,422 4,622
2018 10,897 173 673,696 13.1% 5,381 4,598
2019 16,808 86 687,394 12.9% 5,391 4,724
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* Due to implementation of GASB 61 in fiscal year 2013, the City's component units are now
considered blended component units versus discretely as in years prior to fiscal year 2013. As
such, the outstanding debt for the components units have been added; however, the City, or
primary government is not legally responsible for the payment of its debt.
Page 214 of 249
168 City of Pearland 2019 CAFR
Page 215 of 249
169 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS Table 11
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(Dollars in thousands, except per capita)
Fiscal
Year
Tax
Year
General
Bonded Debt a
Less Debt
Service
Funds
Net
Bonded
Debt
Ratio of Net
Bonded Debt to
Assessed Value
Percentage
of Personal
Income b
Per
Capita b
2010 2009 $ 299,982 $ 6,706 $ 293,276 4.7% 9.5% $ 3,117
2011 2010 311,158 5,160 305,998 4.8% 10.3% 3,148
2012 2011 311,204 4,992 306,212 4.8% 9.5% 3,068
2013 2012 321,068 4,643 316,425 4.8% 8.9% 3,040
2014 2013 326,283 4,536 321,747 4.6% 8.4% 3,010
2015 2014 339,518 5,034 334,484 4.4% 8.2% 2,978
2016 2015 341,503 8,276 333,227 3.9% 7.2% 2,846
2017 2016 353,837 5,911 347,926 3.6% 8.1% 2,864
2018 2017 443,076 6,797 436,279 4.1% 8.5% 3,485
2019 2018 433,605 5,427 428,178 3.9% 8.1% 3,358
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a Includes general obligation bonds, certificates of obligation, sales, increment, and permanent improvement
bonds net of related premiums/discounts.
b Population and personal income data can be found in demographic and economic statistics table.
Page 216 of 249
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2018 and 2019
Table 12
Page 1 of 2
Debt as of
September 30, Overlapping
Population 125,198
Per Capita Debt - Direct and Overlapping Debt $ 10,693
Source: Individual jurisdictions and/or Texas Municipal Reports.
(a) Harris County Toll Road Certificates are considered self-supporting and are not included
in the amount shown for Harris County.
170 City of Pearland 2019 CAFR
Taxing Jurisdiction 2018 Percent Amount
Alvin Community College District $ 32,520,000 31.56% $ 10,263,312
Alvin ISD 668,510,000 34.79% 232,574,629
Brazoria County 76,230,000 22.97% 17,510,031
Brazoria County MUD No. 6 17,615,000 0.36% 63,414
Brazoria County MUD No. 17 21,835,000 100.00% 21,835,000
Brazoria County MUD No. 18 22,230,000 100.00% 22,230,000
Brazoria County MUD No. 19 26,715,000 100.00% 26,715,000
Brazoria County MUD No. 23 14,265,000 100.00% 14,265,000
Brazoria County MUD No. 26 24,490,000 100.00% 24,490,000
Brazoria County MUD No. 28 57,645,000 100.00% 57,645,000
Brazoria County MUD No. 34 39,175,000 100.00% 39,175,000
Brazoria County MUD No. 35 8,920,000 100.00% 8,920,000
Brazoria-Fort Bend County MUD No. 1 80,865,000 100.00% 80,865,000
Fort Bend County 593,424,527 0.79% 4,688,054
Harris County (a) 2,050,758,022 0.22% 4,511,668
Harris County Dept. of Education 6,555,000 0.22% 14,421
Harris County Flood Control District 83,075,000 0.22% 182,765
Harris County Hospital District 59,490,000 0.22% 130,878
Harris-Brazoria Counties 21,635,000 100.00% 21,635,000
Lower Kirby Pearland Man 15,630,000 100.00% 15,630,000
Pasadena ISD 771,080,000 1.52% 11,720,416
Pearland ISD 367,580,000 76.05% 279,544,590
Port of Houston Authority 593,754,397 0.18% 1,068,758
Total estimated Overlapping 895,677,935
The City $ 443,075,737 100.00% 443,075,737
Total Direct and Estimated $ 1,338,753,672
Page 217 of 249
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2018 and 2019
Table 12
Page 2 of 2
Debt as of
September 30, Overlapping
Population 127,500
Per Capita Debt - Direct and Overlapping Debt $ 11,096
Source: Individual jurisdictions and/or Texas Municipal Reports.
(a) Harris County Toll Road Certificates are considered self-supporting and are not included
in the amount shown for Harris County.
171 City of Pearland 2019 CAFR
Taxing Jurisdiction 2019 Percent Amount
Alvin Community College District $ 28,625,000 29.55% $ 8,458,688
Alvin ISD 796,295,000 33.38% 265,803,271
Brazoria County 143,758,313 22.08% 31,741,836
Brazoria County MUD No. 6 15,030,000 0.30% 45,090
Brazoria County MUD No. 17 20,535,000 100.00% 20,535,000
Brazoria County MUD No. 18 20,890,000 100.00% 20,890,000
Brazoria County MUD No. 19 25,045,000 100.00% 25,045,000
Brazoria County MUD No. 23 13,330,000 100.00% 13,330,000
Brazoria County MUD No. 26 14,900,000 100.00% 14,900,000
Brazoria County MUD No. 28 55,995,000 100.00% 55,995,000
Brazoria County MUD No. 34 37,910,000 100.00% 37,910,000
Brazoria County MUD No. 35 8,550,000 100.00% 8,550,000
Brazoria-Fort Bend County MUD No. 1 70,630,000 100.00% 70,630,000
Fort Bend County 594,872,527 0.70% 4,164,108
Harris County (a) 1,885,182,125 0.24% 4,524,437
Harris County Dept. of Education 6,320,000 0.24% 15,168
Harris County Flood Control District 83,075,000 0.24% 199,380
Harris County Hospital District 55,005,000 0.24% 132,012
Harris-Brazoria Counties 33,470,000 100.00% 33,470,000
Lower Kirby Pearland Man 21,980,000 100.00% 21,980,000
Pasadena ISD 726,235,000 1.68% 12,200,748
Pearland ISD 433,230,000 76.05% 329,471,415
Port of Houston Authority 572,569,397 0.20% 1,145,139
Total estimated Overlapping 981,136,291
The City $ 433,604,774 100.00% 433,604,774
Total Direct and Estimated $ 1,414,741,065
Page 218 of 249
CITY OF PEARLAND, TEXAS
PLEDGED REVENUE COVERAGE
Table 13
172 City of Pearland 2019 CAFR
Amounts in (000’s)
Last Ten Fiscal Years
Water & Sewer Revenue Bonds
Net
Less: Revenue
Fiscal Gross Operating Available for
Debt Service
Year Revenues Expenses Debt Service Principal Interest Total Coverage
2010 $ 25,061 $ 13,585 $ 11,476 $ 2,575 $ 4,848 $ 7,423 $ 1.55
2011 28,664 15,529 13,135 3,170 5,155 8,325 1.58
2012 27,969 15,946 12,023 3,305 5,016 8,321 1.44
2013 29,607 17,423 12,184 3,615 4,724 8,339 1.46
2014 29,341 17,707 12,184 3,765 4,584 8,349 1.46
2015 30,744 18,767 11,977 3,920 4,622 8,542 1.40
2016 44,163 21,167 22,995 7,630 4,918 12,548 1.83
2017 52,005 24,178 27,828 9,195 4,297 13,492 2.06
2018 56,960 24,247 32,713 10,630 5,129 15,759 2.08
2019 61,001 22,340 38,661 11,770 6,586 18,356 2.11
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating
expenses do not include interest, depreciation, or amortization expenses. Debt service excludes Permanent Improvement
Bonds paid with system revenues, as those bonds do not require bond coverage.
Page 219 of 249
173 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS Table 14
DEMOGTRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal
Year
Population
(A)
Personal
Income
(in $000's)
Per Capita
Personal
Income (B)
Median
Age (B)
Education
Level in
Years of
Schooling
School
Enrollment (C)
Unemployment
Rate (D)
2010 $ 94,100 $ 3,076,788 $ 32,697 33.4 14.2 21,269 6.9%
2011 97,200 2,974,785 30,605 33.3 14.2 20,931 6.9%
2012 99,800 3,213,184 32,196 34.8 14.2 21,721 5.6%
2013 104,100 3,555,431 34,154 34.4 14.2 23,771 5.0%
2014 106,900 3,822,958 35,762 34.6 14.2 23,075 4.3%
2015 112,300 4,063,014 36,180 34.6 14.2 23,241 3.3%
2016 117,100 4,637,394 39,602 33.9 14.2 24,096 3.8%
2017 121,500 4,305,839 35,439 36.1 14.2 24,400 4.0%
2018 125,198 5,134,370 41,010 34.7 14.2 30,739 3.5%
2019 127,500 5,313,435 41,674 35.3 14.2 37,400 2.7%
(A) Pearland Economic Development Corporation, 2018 American Community Survey 5-year estimates (Dec 2019)
(B) Pearland Economic Development Corporation, 2018 American Community Survey 5-year estimates (Dec 2019)
(C) 2018 merican Community Survey 5-year estimates
(D) Bureau of Labor Statistics
Page 220 of 249
174 City of Pearland 2019 CAFR
Page 221 of 249
175 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS Table 15
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2019 2010
Percentage Percentage
of Total City of Total City
Employer Employees * Rank Employment Employees Rank Employment
Pearland ISD 2,660 1 4.20% 2,274 1 5.32%
Kelsey Seybold 863 2 1.36%
City of Pearland 787 3 1.24% 601 3 1.41%
Alvin ISD 753 4 1.19%
Memorial Hermann 450 5 0.71%
Lonza 420 6 0.66%
Pearland Medical Center 400 7 0.63%
Dover Energy 330 8 0.52%
Merit Medical 303 9 0.48%
Kemlon 268 10 0.42% 325 4 0.76%
Third Coast Terminals 209 11 0.33%
Tool-Flo 162 13 0.26%
Aggreko
Mitsubishi Heavy Industries
Compressor Corp.
154
154
14
15
0.24%
0.24%
Packaging Service Company 120 16 0.19%
Weatherford 112 17 0.18% 175 9 0.41%
Ethos Energy (TurboCare) 110 18 0.17% 180 8 0.42%
ShawCor Pipe Protection 100 19 0.16% 235 0.55%
Davis Lynch (Forum Energy) 100 18 0.16%
Wal-Mart - n/a 0.00% 800 2 1.87%
Bass Pro Shop - n/a 0.00% 300 5 0.70%
Home Depot - n/a 0.00% 225 7 0.53%
Profax - n/a 0.00% 160 10 0.37%
Total 8,455 13.35% 5,275 12.34%
Sources:
Pearland Economic Development Corp.
Retail establishments data not available in 2019.
Labor force participation in 2019 is 61,312 and in 2010 is 42,732.
*The above list does not include retail employers, such as Wal Mart, Super Target, Lowe's, Home Depot, HEB or Kroger.
Page 222 of 249
176 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 16
Page 1 of 2
2010 2011 2012 2013 2014
Function/Program
Governmental Activities:
General Government 57 57 56 44 45
Public Safety 264 276 286 295 313
Public Works 47 45 31 57 60
Community Services 47 45 56 51 53
Parks and Recreation
Business Type Activities:
Water & Sewer
99
82
105
87
109
90
101
99
99
101
Component Unit:
Economic Development
6
5
5
5
9
Total 601 619 633 652 680
Source: City Budget
Page 223 of 249
177 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 16
Page 2 of 2
2015 2016 2017 2018 2019
Function/Program
Governmental Activities:
General Government 52 62 52 54 55
Public Safety 339 370 370 379 390
Public Works 67 54 65 73 85
Community Services 40 42 50 46 46
Parks and Recreation
Business Type Activities:
Water & Sewer
88
105
89
106
84
109
89
114
90
108
Component Unit:
Economic Development
5
5
5
6
6
Total 696 728 735 761 780
Source: City Budget
Page 224 of 249
178 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 17
Page 1 of 6
Function/Program
2010 2011 2012 2013 2014
GENERAL GOVERNMENT
Finance
Number of purchase orders 2,913 2,679 2,415 2,671 2,640
Number of budget transfers 470 427 429 465 548
Number of invoices paid 21,632 21,000 20,768 23,512 21,486
Average number of employees paid per month 1,220 1,438 1,481 1,527 1,548
Human Resources
Number of hires 91 131 112 94 98
Number of applications received 3,880 3,299 4,936 7,642 8,507
Legal
Number of resolutions and ordinances prepared 229 205 220 254 243
Information Technology
Average monthly service requests 734 815 832 843 838
Number of PC's supported 429 439 448 454 575
PUBLIC SAFETY
Police
Fire
Sources: Various city departments.
Information not presented was not available at time of publication.
(1) UCR method of reporting was terminated after 2009. Effective 2010, Incident Based Reporting
(IBR) is used.
Part 1 Crimes 1,936 1,946 1,819 2,115 2,098
Traffic Crashes 1,380 1,323 1,465 1,529 1,590
Arrests 5,374 5,602 5,685 6,946 6,705
Citizen Calls for Service 27,281 27,414 27,379 29,242 29,744
Traffic Stops 35,838 40,817 49,531 52,945 43,783
Priority 1 Average Response Time 7:54 5:24 3:50 4:15 3:50
Total number of arson incidents 5 2 2 6 7
Fires investigated 22 25 18 16 25
Total annual inspections 1,752 1,380 1,537 1,958 1,644
Total calls for service 8,888 9,676 10,494 10,789 15,048
Patients treated 5,619 6,121 6,537 6,537 6,936
Page 225 of 249
179 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 17
Page 2 of 6
Function/Program
2015 2016 2017 2018 2019
GENERAL GOVERNMENT
Finance
Number of purchase orders 2,377 2,159 589 1,811 1,673
Number of budget transfers 489 362 750 552 509
Number of invoices paid 22,212 26,675 24,548 21,547 17,641
Average number of employees paid per month 1,523 1,536 1,704 1,641 1,665
Human Resources
Number of hires 131 194 170 163 183
Number of applications received 9,132 10,420 13,010 15,452 17,382
Legal
Number of resolutions and ordinances prepared 271 279 276 290 340
Information Technology
Average monthly service requests 854 871 894 325 400
Number of PC's supported 649 680 706 715 732
PUBLIC SAFETY
Police
Fire
Sources: Various city departments.
Information not presented was not available at time of publication.
(1) UCR method of reporting was terminated after 2009. Effective 2010, Incident Based Reporting
(IBR) is used.
Part 1 Crimes 2,411 2,202 2,193 1,962 2,175
Traffic Crashes 1,761 1,728 1,813 2,150 2,150
Arrests 5,781 5,044 4,865 4,844 4,604
Citizen Calls for Service 31,474 31,744 31,945 31,579 32,548
Traffic Stops 33,472 35,764 37,025 33,101 33,559
Priority 1 Average Response Time 4:16 4:11 3:40 4:03 3:53
Total number of arson incidents 1 7 4 2 2
Fires investigated 20 27 19 15 23
Total annual inspections 1,640 1,244 2,607 3,123 1,263
Total calls for service 17,407 9,904 9,965 10,666 10,720
Patients treated 7,180 6,117 4,610 6,273 7,181
Page 226 of 249
180 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 17
Page 3 of 6
Function/Program (continued)
2010 2011 2012 2013 2014
PUBLIC WORKS
Fleet Maintenance
Fleet maintenance jobs completed 2,394 3,410 3,581 3,817 3,860
Preventative maintenance performed 1,741 747 682 611 610
Other Public Works
Fuel issued (gallons) 354,422 361,464 377,754 350,186 353,890
Street sweeping (miles) 2,239 1,299 1,079 1,155 871
Street signs maintained/replaced 2,049 1,588 1,090 884 993
Total work orders completed 18,632 16,834 17,803 18,346 21,212
PARKS AND RECREATION
All Parks and recreation
ROW maintained - acres 245 255 251 251 251
Trees maintained 5,800 6,327 6,157 6,312 6,313
Acres of city property mowed 1,301 1,331 1,380 1,035 1,035
Total number of park work orders received 252 249 230 140 180
Parkland - acres (2) 139 139 138 138 138
Total number of special events held 24 21 22 22 20
Total number of tournaments held 9 11 2 1 3
Number of recreation classes offered (3) 307 459 486 281 272
Average monthly attendance (all locations) (4) 11,823 16,116 18,378 18,980 21,366
Sources: Various city departments.
Information not presented was not available at time of publication.
(2) Prior to 2009, Parkland acres included medians and Wastewater Treatment Plants. After 2009,
(3) Prior to 2010, individual music classes were included in the total recreation classes held.
Program was cancelled.
(4) In FY 2010, a new facility, Recreation Center/Natatorium, opened.
Page 227 of 249
181 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 17
Page 4 of 6
Function/Program (continued)
2015 2016 2017 2018 2019
PUBLIC WORKS
Fleet Maintenance
Fleet maintenance jobs completed 3,887 1,452 1,797 1,382 1,998
Preventative maintenance performed 437 750 742 663 856
Other Public Works
Fuel issued (gallons) 332,745 265,669 331,005 315,941 323,734
Street sweeping (miles) 648 1,160 1,112 1,815 497
Street signs maintained/replaced 1,477 1,370 1,179 1,471 1,511
Total work orders completed 25,873 31,163 25,688 24,529 20,791
PARKS AND RECREATION
All Parks and recreation
ROW maintained - acres 550 459 327 345 404
Trees maintained 6,430 7,922 8,355 8,523 8,873
Acres of city property mowed 1,116 632 664 443 523
Total number of park work orders received 147 190 114 147 55
Parkland - acres (2) 138 337 388 392 547
Total number of special events held 19 16 19 17 23
Total number of tournaments held - 26 - 5 12
Number of recreation classes offered (3) 306 384 265 868 908
Average monthly attendance (all locations) (4) 14,371 19,636 16,814 24,035 19,518
Sources: Various city departments.
Information not presented was not available at time of publication.
(2) Prior to 2009, Parkland acres included medians and Wastewater Treatment Plants. After 2009,
(3) Prior to 2010, individual music classes were included in the total recreation classes held.
Program was cancelled.
(4) In FY 2010, a new facility, Recreation Center/Natatorium, opened.
Page 228 of 249
182 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 17
Page 5 of 6
Function/Program (continued)
2010 2011 2012 2013 2014
COMMUNITY SERVICES
Animal Control
Animal Services Calls for Service 4,057 4,742 4,618 5,167 5,822
Animal Shelter Live Release % 46% 45% 42% 42% 48%
Inspection Services
Total building inspections 21,753 19,244 22,416 26,274 28,434
Total code violation cases 3,433 2,860 1,952 2,244 2,140
Total permits issued 7,874 7,869 8,696 10,630 13,972
Number of plans reviewed 969 917 1,050 939 1,185
Municipal Court
Number of trials 402 688 1,116 885 839
Number of charges 24,657 26,369 30,187 27,439 23,182
Warrants cleared 8,692 8,204 10,080 10,328 9,050
WATER & SEWER
Distribution and Collection
Fire hydrant maintenance and inspections (5) 402 395 887 1,399 837
Backed up sewer repairs 325 310 275 286 334
Water mains repaired 82 410 283 380 111
Water Production
Water produced - wells
(in millions of gallons) 3,065 3,869 2,916 2,859 2,470
Surface Water Purchased
(in millions of gallons) 634 968 1,321 1,816 2,133
Billing & Collections
Annual meter reads 344,618 364,424 370,755 403,220 414,499
Number of bills 336,668 350,871 359,716 387,997 388,338
Wastewater Treatment
Wastewater treated
(in millions of gallons) 2,361 1,943 2,364 2,530 2,493
Sources: Various city departments.
Information not presented was not available at time of publication.
(5) In Water & Sewer, Distribution and Collection fire hydrant maintenance and inspections is
contracted out.
Page 229 of 249
183 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 17
Page 6 of 6
Function/Program (continued)
2015 2016 2017 2018 2019
COMMUNITY SERVICES
Animal Control
Animal Services Calls for Service 5,230 5,484 5,153 4,699 4,582
Animal Shelter Live Release % 53% 54% 56% 56% 55%
Inspection Services
Total building inspections 36,497 37,206 34,880 36,774 36,481
Total code violation cases 4,596 2,560 2,302 2,034 2,387
Total permits issued 18,186 14,612 13,075 8,894 7,270
Number of plans reviewed 1,584 1,349 1,278 1,971 2,419
Municipal Court
Number of trials 856 443 656 567 664
Number of charges 19,223 17,611 16,334 15,463 19,020
Warrants cleared 7,476 7,525 8,463 5,801 6,095
WATER & SEWER
Distribution and Collection
Fire hydrant maintenance and inspections (5) 612 854 186 114 87
Backed up sewer repairs 305 497 545 308 196
Water mains repaired 189 120 102 126 125
Water Production
Water produced - wells
(in millions of gallons) 1,933 2,190 2,417 3,024 2,333
Surface Water Purchased
(in millions of gallons) 2,276 2,517 2,584 2,545 2,754
Billing & Collections
Annual meter reads 428,265 445,154 461,502 467,910 469,499
Number of bills 400,662 417,312 471,549 445,446 449,933
Wastewater Treatment
Wastewater treated
(in millions of gallons) 3,067 3,367 3,455 3,308 3,775
Sources: Various city departments.
Information not presented was not available at time of publication.
(5) In Water & Sewer, Distribution and Collection fire hydrant maintenance and inspections is
contracted out.
Page 230 of 249
184 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 18
Page 1 of 2
Fiscal Year
2012 2010 2011 2013 2014
Function/Program
PUBLIC SAFETY
Police
Police stations 1 1 1 1 1
Fire
Police vehicles 138 142 155 157 161
Fire stations 4 5 6 6 6
Fire vehicles 17 22 23 26 26
Ambulances (1) - - - - 9
EMS
Ambulances (1) 8 8 8 9 -
PUBLIC WORKS
Other public works
Streets (miles) (2) 807 806 806 839 844
Vehicle inventory (3) 355 363 385 374 375
Traffic signals 80 62 74 81 81
PARKS AND RECREATION
Parks and recreation
Developed acreage (4) 139 139 138 138 138
Pools 3 3 3 3 3
Outdoor basketball courts 10 10 6 6 6
Soccer fields 12 12 12 12 12
Activity buildings 4 4 3 3 3
Baseball/softball fields 4 4 4 4 4
WATER AND SEWER
Water Production
Water wells 11 11 11 10 10
Pumping stations 2 2 3 3 3
Ground storage tanks 15 15 15 15 15
Elevated towers 6 6 6 6 6
Wastewater
Treatment plants 5 5 5 5 5
Lift stations 78 80 80 75 76
Distribution and Collection
Water mains (miles) 433 443 448 469 488
Sanitary sewers (miles) 378 380 382 400 415
Sources: Various city departments.
Note: No capital asset indicators are available for the general government and community services functions.
Information not presented was not available at time of publication.
(1) Beginning in FY 2014, the EMS department was rolled into the Fire Department.
(2) Inside city limits. Prior to FY07, street miles were measured visually. Beginning FY07, a GIS system was used to measure street miles.
Although new streets were added in FY 2011, an audit of the database resulted in the elimination of some street miles previously reported.
(3) Decrease in inventory reflects surplus of vehicles auctioned off. Increases reflect new purchases, which may offset with those sold.
Vehicle inventory includes public safety revenues.
(4) Prior to 2009, Parkland acres included medians and Wastewater Treatment Plants.
Page 231 of 249
185 City of Pearland 2019 CAFR
CITY OF PEARLAND, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Table 18
Page 2 of 2
Fiscal Year
2017 2015 2016 2018 2019
Function/Program
PUBLIC SAFETY
Police
Police stations 1 1 1 1 1
Fire
Police vehicles 143 186 194 209 211
Fire stations 6 6 7 6 5
Fire vehicles 26 42 56 60 61
Ambulances (1) 7 9 9 10 10
EMS
Ambulances (1) - - - - -
PUBLIC WORKS
Other public works
Streets (miles) (2) 842 936 928 940 978
Vehicle inventory (3) 372 451 385 338 434
Traffic signals 73 87 91 96 97
PARKS AND RECREATION
Parks and recreation
Developed acreage (4) 168 334 388 392 443
Pools 3 3 3 3 2
Outdoor basketball courts 6 6 6 6 8
Soccer fields 12 18 12 14 12
Activity buildings 3 3 3 3 4
Baseball/softball fields 4 6 14 16 16
WATER AND SEWER
Water Production
Water wells 10 10 10 10 10
Pumping stations 3 3 3 3 3
Ground storage tanks 15 15 15 15 15
Elevated towers 6 6 6 6 6
Wastewater
Treatment plants 5 5 5 5 6
Lift stations 73 74 72 78 69
Distribution and Collection
Water mains (miles) 509 537 546 551 553
Sanitary sewers (miles) 433 440 448 456 459
Sources: Various city departments.
Note: No capital asset indicators are available for the general government and community services functions.
Information not presented was not available at time of publication.
(1) Beginning in FY 2014, the EMS department was rolled into the Fire Department.
(2) Inside city limits. Prior to FY07, street miles were measured visually. Beginning FY07, a GIS system was used to measure street miles.
Although new streets were added in FY 2011, an audit of the database resulted in the elimination of some street miles previously reported.
(3) Decrease in inventory reflects surplus of vehicles auctioned off. Increases reflect new purchases, which may offset with those sold.
Vehicle inventory includes public safety revenues.
(4) Prior to 2009, Parkland acres included medians and Wastewater Treatment Plants.
Page 232 of 249
186 City of Pearland 2019 CAFR
Page 233 of 249
CITY OF PEARLAND, TEXAS
FEDERAL SINGLE AUDIT REPORT
For the Year Ended September 30, 2019
Page 234 of 249
Page 235 of 249
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
Page
Independent Auditors’ Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards 1
Independent Auditors’ Report on Compliance for each Major Federal Program;
Report on Internal Control over Compliance; and Report on Schedule of
Expenditures of Federal Awards Required by the Uniform Guidance 3
Schedule of Findings and Questioned Costs 6
Schedule of Expenditures of Federal Awards 8
Notes to Schedule of Expenditures of Federal Awards 9
Summary Schedule of Prior Audit Findings 10
Corrective Action Plan 11
Page 236 of 249
Page 237 of 249
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
1 City of Pearland 2019 Federal Single Audit
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of City Council
City of Pearland, Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information
of City of Pearland, Texas (the “City”), as of and for the year ended September 30, 2019, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements and have issued our report thereon dated March 23, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Page 238 of 249
To the Honorable Mayor and
Members of City Council
City of Pearland, Texas
2 City of Pearland 2019 Federal Single Audit
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purposes.
Houston, Texas
March 23, 2020
Page 239 of 249
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
3 City of Pearland 2019 Federal single Audit
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE;
AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of City Council
City of Pearland, Texas
Report on Compliance for Each Major Federal Program
We have audited City of Pearland, Texas’ (the “City”) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material
effect on each of the City’s major federal programs for the year ended September 30, 2019. The City’s
major federal programs are identified in the summary of auditor’s results section of the accompanying
schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its awards applicable to federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit
of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (“Uniform Guidance”). Those standards, and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City’s compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City’s compliance.
Page 240 of 249
To the Honorable Mayor and
Members of City Council
City of Pearland, Texas
4 City of Pearland 2019 Federal Single Audit
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the type of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended September 30, 2019.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance referred to above. In planning and performing our audit of
compliance, we considered the City’s internal control over compliance with the types of requirements
that could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal
control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of
a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that might
be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Page 241 of 249
To the Honorable Mayor and
Members of City Council
City of Pearland, Texas
5 City of Pearland 2019 Federal Single Audit
Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
September 30, 2019, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements. We have issued our report thereon dated March 23, 2020, which
contained unmodified opinions on those financial statements. Our audit was performed for the purpose
of forming our opinions on the financial statements that collectively comprise the basic financial
statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes
of additional analysis as required by the Uniform Guidance and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain other procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects in relation to the
basic financial statements taken as a whole.
Houston, Texas
March 23, 2020
Page 242 of 249
CITY OF PEARLAND, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended September 30, 2019
6 City of Pearland 2019 Federal Single Audit
I. Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified that are not
considered to be material weaknesses? None reported
Noncompliance material to financial statements
noted? No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified that are not
considered to be material weaknesses? None reported
Type of auditors’ report issued on compliance with
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with section 2 CFR
200.516(a)?
None
Identification of major programs:
Name of Federal Program or Cluster CFDA Numbers
Drinking Water State Revolving Fund Cluster
Drinking Water State Revolving Fund
Drinking Water State Revolving Loan Fund
Disaster Grants – Public Assistance (Presidentially
Declared Disasters):
Hurricane Harvey Debris Removal - DR-TX-4332
(FEMA Category A)
NDRI FEMA Fire Study
66.468
66.468
97.036
97.036
Dollar Threshold Considered Between Type A
and Type B:
$750,000
Auditee qualified as low risk auditee?
Yes
Page 243 of 249
CITY OF PEARLAND, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
For The Year Ended September 30, 2019
7 City of Pearland 2019 Federal Single Audit
II. Financial Statement Findings
There are no current year findings.
III. Federal Award Findings and Questioned Costs
There are no current year findings.
Page 244 of 249
8 City of Pearland 2019 Federal Single Audit
CITY OF PEARLAND, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2019
Federal Grantor/Pass-Through Grantor/Program Title
Federal
CFDA
Number
Pass-Through
Entity Identifying
Number
Federal
Expenditures
U.S. Department of Housing and Urban Development
Direct:
CDBG - Entitlement Grants Cluster:
Community Development Block Grant 2018 14.218 B-18-MC-48-0400 138,314$
Total CDBG - Entitlement Grants Cluster 138,314
Total U.S. Department of Housing and Urban Development 138,314
U.S. Department of the Interior
Direct:
Office of National Drug Control Policy (ONDCP)
Organized Crime Drug Enforcement Task Force 15.668 N/A 7,278
Total U.S. Department of the Interior 7,278
U.S. Department of Justice
Direct:
Bulletproff Vest Partnership 16.607 N/A 3,000
Passed-through Texas Office of the Governor
Victims of Crime Act 16.804 23623-07 114,062
Total U.S. Department of Justice 117,062
U.S. Department of Transportation
Passed-through the Texas Department of Transportation:
Highway Planning and Construction Cluster:
Mykawa Road 20.205 CSJ - 0912-00-543 283,759
Hughes Ranch Road 20.205 CSJ - 0912-31-311 2,051,361
Green Tee Trail 20.205 CSJ - 0912-31-291 55,290
Shadow Creek Ranch 20.205 CSJ - 0912-31-292 61,764
Max Road 20.205 CSJ - 0912-31-273 792,856
Fite Road 20.205 CSJ - 0912-31-272 112,247
Total Highway Planning and Construction Cluster 3,357,277
Total U.S. Department of Transportation 3,357,277
U.S. Environmental Protection Agency
Passed through Texas Water Development Board:
Drinking Water State Revolving Fund Cluster:
Drinking Water State Revolving Fund 66.468 L1000612 4,163,824
Drinking Water State Revolving Loan Fund 66.468 L1000612 4,677,829
Total Drinking Water State Revolving Fund Cluster 8,841,653
Total U.S. Environmental Protection Agency 8,841,653
U.S. Executive Office of the President
Direct:
High-Intensity Drug Trafficking Area (HIDTA)95.001 N/A 16,241
Total U.S. Executive Office of the President 16,241
U.S. Department of Homeland Security
Passed through Texas Department of Public Safety - Division of Emergency Management:
Disaster Grants - Public Assistance (Presidentially Declared Disasters):
Hurricane Harvey Debris Removal - DR-TX-4332 (FEMA Category A)97.036 039-56348-00 1,347,687
NDRI FEMA Fire Study 97.036 N/A 3,223
Total Disaster Grants - Public Assistance (Presidentially Declared Disasters)1,350,910
Emergency Management Performance Grants 97.042 EMT-2019-EP-0005 39,402
Total U.S. Department of Homeland Security 1,390,312
Total Expenditures of Federal Awards 13,868,137$
Page 245 of 249
CITY OF PEARLAND, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
9 City of Pearland 2019 Federal Single Audit
Note 1 – Summary of Significant Accounting Policies
The City accounts for awards under federal programs in the general and special revenue governmental
funds.
In the governmental funds, these programs are accounted for using a current financial resources
measurement focus. With this measurement focus, only current assets and current liabilities generally
are included on the balance sheet. Operating statements of these funds present increases (i.e.
revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in
net current assets. The modified accrual basis of accounting is used for these funds. This basis of
accounting recognizes revenues in the accounting period in which they become susceptible to accrual,
i.e., both measurable and available, and expenditures in the accounting period in which the liability is
incurred, if measurable, except for certain compensated absences and claims and judgments, which
are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Pass-through entity identifying numbers are presented where available.
Federal grants are considered to be earned to the extent of expenditures made under the provisions of
the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues
until earned. Generally, unused balances are returned to the grantor at the close of specified project
periods.
Note 2 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal
grant activity of the City under programs of the federal government for the year ended September 30,
2019. The information in this schedule is presented in accordance with the requirements of the Uniform
Guidance. Because the schedule presents only a selected portion of the operations of the City, it is not
intended to and does not present the financial position, changes in net position or cash flows of the
City.
Note 3 – Indirect Cost Rate
The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform
Guidance.
Note 4 - Outstanding Loans
The City has outstanding loan commitments under the Clean Water State Revolving Loan Fund (CFDA
#66.458) and Drinking Water State Revolving Loan Fund (CFDA #66.468) from the Texas Water
Development Board, as a pass-through agency for the Environmental Protection Agency. As of
September 30, 2019, the outstanding loan payable balances were:
Series Fund Outstanding Balances
2016B Clean Water $ 7,405,000
2016C Clean Water 44,520,000
2017A Drinking Water 8,210,000
2017B Drinking Water 11,345,000
2018A Drinking Water 8,360,000
2019A Drinking Water 21,000,000
Page 246 of 249
CITY OF PEARLAND, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended September 30, 2019
10 City of Pearland 2019 Federal Single Audit
Federal regulations, Title 2 U.S. Code of Federal Regulations Section 200.511 states, “The auditee is
responsible for follow-up and corrective action on all audit findings. As part of this responsibility, the
auditee must prepare a summary schedule of prior audit findings.” The summary schedule of prior audit
findings must report the status of the following:
All audit findings included in the prior audit’s schedule of findings and questioned costs and
All audit findings reported in the prior audit’s summary schedule of prior audit findings except
audit findings listed as corrected.
I. Prior Audit Findings
None reported
Page 247 of 249
CITY OF PEARLAND, TEXAS
CORRECTIVE ACTION PLAN
For the Year Ended September 30, 2019
11 City of Pearland 2019 Federal Single Audit
Federal regulations, Title 2 U.S. Code of Federal Regulations §200.511 states, “At the completion of
the audit, the auditee must prepare, in a document separate from the auditor's findings described in
§200.516 Audit findings, a corrective action plan to address each audit finding included in the current
year auditor's reports.”
I. Corrective Action Plan
Not applicable
Page 248 of 249
RESOLUTION NO. R2020-58
A Resolution of the City Council of the City of Pearland, Texas, accepting
the City’s comprehensive annual financial report for fiscal year 2019 and
the accompanying independent audit as presented by the accounting firm
of Whitley Penn, LLP.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1.That certain comprehensive annual financial report for fiscal year 2019, 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 City’s comprehensive annual financial
report for fiscal year 2019.
PASSED, APPROVED and ADOPTED this the _____ day of _________________,
A.D., 2020.
________________________________
TOM REID
MAYOR
ATTEST:
________________________________
CRYSTAL ROAN, TRMC, CMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
Page 249 of 249