R2024-091 2024-06-24RESOLUTION NO. R2024-91
A Resolution of the City Council of the City of Pearland, Texas, accepting the
City’s annual comprehensive financial report for fiscal year 2023 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 2023, 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 annual comprehensive financial
report for fiscal year 2023.
Section 3. That acceptance of the annual comprehensive financial report reflects the
City’s compliance with the Federal Single Audit requirements for government organizations
expending federal funds.
PASSED, APPROVED and ADOPTED this the 24th day of June, A.D., 2024.
_____________________________
J.KEVIN COLE
MAYOR
ATTEST:
_____________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
DocuSign Envelope ID: 44364158-FDEC-4181-81D6-BACEC4A9081C
P 9924
CITY OF PEARLAND, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended September 30, 2023
Prepared by:
Finance Department
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
Page
Introductory Section
Letter of Transmittal xviii
Principal Officials xix
Staff Organization Chart xx
GFOA Certificate of Achievement xxi
Financial Section
Independent Auditor’s Report 3
Management’s Discussion and Analysis 7
Basic Financial Statements:
Government‐Wide Financial Statements:
Statement of Net Position 17
Statement of Activities 19
Fund Financial Statements:
Balance Sheet ‐ Governmental Funds 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 23
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 24
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
‐ Governmental Funds to the Government‐wide Statement of Activities 27
Statement of Net Position ‐ Proprietary Funds 28
Statement of Revenues, Expenses and Changes in Fund Net Position ‐ Proprietary Funds 31
Statement of Cash Flows ‐ Proprietary Funds 32
Notes to Basic Financial Statements 35
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
‐ General Fund 83
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
‐ Pearland Economic Development Corporation 84
Notes to Required Supplementary Budget Information 85
Schedule of Changes in Net Pension Liability and Related Ratios Texas Municipal Retirement
System 86
Schedule of Contributions – Texas Municipal Retirement System 87
Schedule of Changes in the Total OPEB Liability and Related Ratios – Texas Municipal
Retirement System Supplemental Death Benefits Fund 89
Schedule of Changes the Total OPEB Liability and Related Ratios – City of Pearland
Retirement Health Care Plan 90
Other Supplementary Information:
Nonmajor Governmental Funds:
Combining Balance Sheet – Nonmajor Governmental Funds 98
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
Nonmajor Governmental Funds 106
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS (continued)
Page
Financial Section (continued)
Other Supplementary Information: (continued)
Combining Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual:
Debt Service Fund 114
Special Revenue Funds:
Hotel/Motel Occupancy Tax Fund 115
Municipal Court Security Fund 116
City‐wide Donation Fund 117
Court Technology Fund 118
Street Assessments Fund 119
Park Donations Fund 120
Tree Trust Fund 121
Parks Financial Assistance Donations Fund 122
Police State Seizure Fund 123
Police Federal Seizure Fund 124
Community Safety Fund 125
Parks & Recreation Development Fund 126
Sidewalk Fund 127
Drainage Maintenance Fund 128
Grant Fund 129
CDBG Grant Fund 130
CDBG Disaster Recovery Fund 131
Disaster Recovery Fund 132
Hazard Mitigation Fund 133
Coronavirus Relief Fund 134
ARPA Fund 135
Opioid Settlement Fund 136
Traffic Impact Improvement Fund 137
Truancy Prevention and Diversion Fund 138
Municipal Jury Fund 139
Municipal Channel (PEG) Fund 140
U of H Fund 141
Regional Detention Fund 142
Infrastructure Reinvestment Fund 143
Combining Statement of Net Position – Internal Service Funds 146
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds 148
Combining Statement of Cash Flows – Internal Service funds 150
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS (continued)
Statistical Section (Unaudited) 155
Financial Trends:
Net Position by Component 156
Changes in Net Position 158
Fund Balances of Governmental Funds 162
Changes in Fund Balances of Governmental Funds 164
Revenue Capacity:
Spending and Growth Analysis 166
Assessed Value and Estimated Actual Value of Taxable Property 168
Direct and Overlapping Property Tax Rates 170
Property Tax Levies and Collections 173
Principal Property Taxpayers 175
Taxable Sales by Category 176
Debt Capacity:
Outstanding Debt by Type 178
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt
Per Capita 181
Direct and Overlapping Governmental Activities Debt 182
Pledged Revenue Coverage 184
Demographic and Economic Information:
Demographic and Economic Statistics 185
Principal Employers 186
Operating Information:
Full‐time Equivalent City Government Employees by Function/Program 187
Operating Indicators by Function/Program 188
Capital Asset Statistics by Function/Program 195
INTRODUCTORY SECTION (UNAUDITED)
i City of Pearland, Texas 2023 ACFR
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Tel: 281.652.1600
pearlandtx.gov
June 24, 2024
Honorable Mayor, Members
of City Council, and Citizens of the
City of Pearland, Texas USA
The Annual Comprehensive Financial Report (ACFR) of the City of Pearland, Texas (the “City”)
for the fiscal year ended September 30, 2023, is hereby submitted as mandated by both local and
state statutes. The applicable 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. As standard practice, 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 ended September 30, 2023. 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. The MD&A complements this letter of transmittal and should be read in conjunction
with the transmittal letter.
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 members.
The Mayor and Council members are elected at-large, and each of them holds office for 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 the Council
and is responsible for recommending a budget, implementing City Council priorities, keeping the
City Council and community informed during the year, making recommendations, and day-to-day
management of all City operations.
ii City of Pearland, Texas 2023 ACFR
The incorporated City is primarily located across the northern end of Brazoria County and shares
a common border with Houston, Texas to the north. The City extends into both Fort Bend and
Harris counties. The City of Pearland encompasses 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 the City's delivery of services.
Moreover, the community is fast-growing. The additional population due to Pearland’s multi-
faceted attractiveness increased from 18,000 residents in 1990 to 132,300 residents as reported
in the official 2023 U.S. Census, an increase of 700% over thirty years.
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 Pearland community is
one of opportunity with economic development supported by investment and jobs. 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, to
finance 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
the 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 near 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 two component units
The Pearland Economic Development Corporation (PEDC) and the Development Authority of
Pearland (DAP). 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 Development Authority of Pearland was created in 2004 to provide financing for the
development of Tax Increment Reinvestment Zone #2. The Tax Increment Reinvestment Zone
(TIRZ #2) was created in 1998 for 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. Both component units are
considered blended component units and have been included as major funds in the Governmental
Funds.
iii City of Pearland, Texas 2023 ACFR
ECONOMIC CONDITIONS
Local Economy
Pearland is a premier location for residential and commercial growth. The City is located 20
minutes away from downtown Houston, 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. The Pearland economy and context are 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
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 continued implementation efforts for the Pearland Prosperity
community strategic plan and worked on several major projects in 2023, including opening of
Millar’s R&D, manufacturing and headquarters facility, expansion of Kelsey-Seybold’s Pearland
clinic, and the completion of one of four office warehouse projects totaling over one million of
square footage in Lower Kirby.
The total of all new, non-residential construction permitted during the fiscal year was
approximately $342 million, a decrease of 15.5% in added value from fiscal year 2022’s $405
million. New single-family housing permits totaled 204, down 59% from the previous fiscal year.
Building permit revenues decreased by $1,209,695.18 or approximately 26% as compared to
fiscal year 2022 revenue collections. In addition to rising interest rates that had a negative impact
on development throughout the nation, locally one of the largest on-going residential projects,
Massey Oaks, encountered significant delays, constructing 57% of what they anticipated for fiscal
year 2023. If Massey Oaks hit their projected numbers an additional $188k in revenue would have
been collected. While there are several large multi-family projects on the horizon, none applied
for permits during fiscal year 2023.
Pearland’s unemployment rate was 4.1% in September 2023, up from 3.2% in September 2022.
Through the most recently available data, the rate is in a downward path to 3.5% as of December
2023. (https://ycharts.com/indicators/pearland_tx_unemployment_rate) Those rates compare to
the rates for the same time periods in Brazoria County of 4.5%, 4.2%, and 4% respectively
(https://ycharts.com/indicators/brazoria_county_tx_unemployment_rate).
As we neared the end of 2023, a great deal of uncertainty about the direction of the economy
remained. As we continued to deal with the adverse effects of the temporary shutdown of the
economy, supply chain disruptions, changes in consumer behavior (that are likely to persist for
years), high inflation, and worker shortages, the results led to upward wage pressures. The
interest rates were steady between 5.25 and 5.5% per FOMC, (Federal Open Market Committee)
between March 2022 and July 2023. While the Federal Reserve System (Fed) has indicated there
will be rate decreases in 2024, there have not been any reductions to date and will likely be
moderate reductions through the end of the year.
iv City of Pearland, Texas 2023 ACFR
As a multi-faceted local government, the City of Pearland’s economy, as monitored and reported
continuously, has shown significant resilience over the past year from the effects of the pandemic.
The combination of early action, conservative budgeting, and continuous monitoring have kept
City finances in good standing. As with 2020 and 2021, throughout fiscal year 2022, the City
maintained a mantra of working to maximize flexibility and reserves to deal with unknown change.
This philosophy was tested with the property tax valuation error that caused financial ripples
throughout fiscal year 2023. The City mitigated these effects by proactively taking a look at
operating costs and debt service. In the General Fund, additional revenue from ARPA funds,
interest and PEDC was recognized. Expenses were reduced by removing lease fees to the Motor
Pool($1.4M), as well as differing expenses on other items. The city also recognized interest in the
debt fund, transferred interest from CIP funds, plus refinanced and defeased debt. Through the
actions taken both funds continued to meet policy minimums and no recurring operating expenses
or staff were removed from the budget.
GRANTS
The City receives ongoing assistance from the federal government and the State of Texas in the
form of grants and grant-funded loans each year. In compliance with applicable federal
regulations (2 CFR 200 Subpart F – 200.501), entities that spend over $750,000 in federal funding
within a fiscal year must complete a “Single Audit” of all federal grant-funded expenditures. Where
State grant funding is concerned, Chapter 783 of the Texas Government Code imposes a similar
regulation, requiring entities that spend more than $750,000 in State grant funds to perform a
Single Audit of State grant-funded expenditures.
In fiscal year 2023, the City’s federal grant-funded expenditures exceeded $750,000, and a
Federal Single Audit was required. State-funded programs did not result in expenditures over the
statutory threshold (also, $750,000), so no State Single Audit was required.
Federal Grants and Assistance*
The programs that make up the City’s estimated federal expenditures applicable to Single Audit
requirements in fiscal year 2023 include funds awarded from the following federal agencies, with
more detail available in the applicable Single Audit Schedule of Expenditures of Federal Awards
(SEFA):
SOURCE** PROGRAM TYPE EXPENSES**
U.S. Department of Housing & Urban Development Entitlement $211,132
U.S. Department of Justice Public Safety $175,194
U.S. Department of Transportation Transportation $7,877,025
U.S. Department of the Treasury COVID-19 Relief $4,619,182
U.S. Environmental Protection Agency Water Quality $10,103,047
U.S. Department of Homeland Security Fire Protection $97,580
Total Estimated Federal Expenditures $23,083,160
* Schedule of Expenditures of Federal Awards (SEFA) – 9/30/2023.
** State pass-through entities may be involved in the disbursement of funds to the City.
v City of Pearland, Texas 2023 ACFR
State Grant Funding
For fiscal year 2023, State-issued grant funding assistance came from the Texas Parks & Wildlife
Department (TPWD) for an Inclusive Playground facility at the City’s Shadow Creek Ranch Sports
Complex ($164,452), the State’s Law Enforcement Officer Standards and Education Fund
($8,954), and a Texas Commission on Environmental Quality (TCEQ) grant from the Houston-
Galveston Area Council for Solid Waste Recycling ($63,034). The expenditures for fiscal year
2023 total $236,440, which is below the $750,000 statutory spending threshold required to trigger
a State Single Audit, so no Schedule of Expenditures of State Awards (SESA) is required for fiscal
year 2023.
Regional and State of Texas Economy
Houston is the world’s energy capital of an oil and gas industry that is in constant flux. At this
writing, a plunge in new home construction, the ongoing war in Ukraine, inflation, rising interest
rates, and a looming recession create uncertainty. However, demand for global crude has been
climbing as economies reopen, which bodes well for our region. The U.S. Energy Information
Administration forecasts WTI to average $78.18 per barrel in 2024.
According to the Greater Houston Partnership’s (GHP) The Economy at a Glance January 2023
“The region lost 359,400 jobs during March and April of ’20 as businesses shut down and
consumers stayed home. From when the economy began to reopen in May of ’20 through
November of ’22, the region created 504,200 jobs, recouping 140.3 percent of its losses. Fifteen
of the 19 major sectors tracked by the Texas Workforce Commission have fully recouped their
pandemic losses. Only hotels, manufacturing, other services, and energy have yet to recover”.
GHP also stated that it “expects the next recession to be short and shallow, with minimal impact
on the local economy. Momentum from ’22 and the region’s remarkable resilience will set the
tone over the next 12 months. By the time ’24 arrives, job growth will again be robust, and Houston
will be seven-for-seven in recessions and recoveries.”
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 includes future year forecasting and
implements strategies, both financial and operational, to meet existing challenges and to plan
ahead.
The City’s adopted (September 11, 2023) Five-Year CIP for fiscal years 2024 through 2028 totals
$850.7 million. The large and varying CIP for public investments in drainage, parks, facilities,
streets, water, and wastewater positions City infrastructure for serving the population and
businesses that are here and yet to come.
The CIP document completes the balance of the $162 million bond program approved by the
voters in May 2007 and the voter-approved May 2019 bond issue of $80 million. As well as $181.3
million bond referendum in 2023.
Funding for projects is supported by non-debt sources ($4.2 million), leveraged outside funds
($32.4 million), tax-supported debt ($265.7 million), and water/sewer-supported enterprise fund
debt repaid by user fees ($459.8 million). The ratio of outstanding property tax-supported Debt to
taxable assessed valuation decreased slightly from the previous year but remains well below the
internal benchmark of 5% at about 2.58%.
vi City of Pearland, Texas 2023 ACFR
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. Issuance of debt is
factored into funding sources, based on the Five-Year CIP. The City’s property tax rate for the
fiscal year 2024 budget is $0.6554 of which $0.280238 cents is for actual debt service and
$0.052662 cents is for rebates to in-city MUD districts but considered as a debt service
component. The Debt Service component, inclusive of in-city MUD district rebates, for the fiscal
year 2024 budget was $0.3329.
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. Rate customers saw
a 5% increase in fiscal year 2022 and a 13.1% increase in fiscal year 2023. To bring revenue
necessary to maintain the system. The City’s utility system continues to be self-supporting and
financially sound. City Council approved a 14% increase in the fiscal year 2024 Budget to keep
up with expenses and debt issuance. As with other aspects of the City’s service delivery package,
there are substantial capital projects for the expansion of plants, distribution and collection lines,
and a variety of modernizations to meet the needs of the current and future community. Continued
expansions and improvements will require appropriate rate increases to provide adequate upkeep
of the system.
Relevant Financial Policies/Guidelines
Financial Policies guide the development and implementation of the budget, are a framework for
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, budgeting,
revenues, capital improvements, debt, and grants to name a few. Some of the most relevant
policies are:
• Recurring revenues fund recurring expenditures/expenses
• Non-recurring funds fund non-recurring expenditures/expenses
• General Fund Operating Reserves should be a minimum of three months of
operations
• Meet a 1.15 Bond Coverage Requirement and the annual Debt Service Reserve
set by Bond Ordinances. Maintain a cash equivalent operating reserve at 15% of
the current year’s budget appropriation for total operating expenses in the
Water/Sewer operating fund. The aggregate between the reserve balances of the
Water/Sewer operating fund and Water/Sewer debt service fund shall be no less
than 25%.
• 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
vii City of Pearland, Texas 2023 ACFR
Strategic Priorities and 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 one of the largest suburbs in the Houston area.
Some of the strategic priorities are as follows:
Trusted Government
Delivering transparent, high-quality, and accessible city services by developing cutting edge
solutions, engaging with the community, and continuously improving our capabilities. To do so we
have developed a means to interconnect historical information and data to ensure the public as
well as future elected officials have access to the information that shaped past decisions and
actions. Additionally, in 2023 the Finance Department spearheaded a Fraud and Vulnerability
Assessment for the entire organization via a third-party consultant. The results of the assessment
were good in that no issues were uncovered and the recommendations to address potential
vulnerabilities will be implemented over the next several years.
Safe Community
Personal safety is a key means of both attracting new residents and businesses 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.
To operate more efficiently and effectively, the Department employs a data-driven approach to
policing. Examples of this are the implementation of the Special 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.
viii City of Pearland, Texas 2023 ACFR
In August 2023, the Police Department received accreditation status from the Texas Law
Enforcement Best Practices Accreditation program. This program evaluates police departments
on over 170 best business practices including use of force, protection of citizen rights, vehicle
pursuits, property and evidence management, and patrol and investigative operations with only
200 of the 2700+ police agencies in Texas achieving this accreditation.
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. Another primary focus of the Police Department is training. The
Pearland Police Academy graduated classes two and three over the course of Fiscal Year 2023,
as well as saw significant progress in the repurposing of Fire Station 4 into the Law Enforcement
Training Center. This first-class training facility will house the Police Academy and provide a home
to other training opportunities when the Academy is not in session. Additionally, the Training
Division provided over 39,000 training hours last year, including internal personnel and attendees
from over 170 outside agencies.
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
Departments. This section works with other units such as K9 and SWAT to further capabilities in
several key areas like search and rescue, tracking and safety at public events. In Fiscal Year
2023, the Pearland Police Department became the first law enforcement agency in the nation to
receive a Beyond Visual Line of Sight (BVLOS) waiver from the FAA. This waiver was
monumental to the Drone as a First Responder program, allowing for drone operation from a
remote location without a human visual observer.
Through the continued focus on adoption and rescue programs the Animal Services section is
proud to report the no-kill status was maintained for Fiscal Year 2023 as well.
ix City of Pearland, Texas 2023 ACFR
Safe Community also includes the Fire Department. In
2023 the Fire Department completed a 5-year strategic
plan to align with community needs in coordination with
The Center for Public Safety Excellence (CPSE). In
fiscal year 2023 one ladder truck, one fire engine, and
four ambulances were ordered to replace an aging
fleet and move towards a comprehensive apparatus
replacement program within the City’s Motor Pool
Fund.
Significant Community Risk Reduction efforts have
resulted in the removal of numerous dilapidated and 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 Pearland residents by completing community
public safety education such as CPR certifications, car
seat inspections, and smoke alarm testing.
The 90th percentile city-wide response times for Fire
emergencies have continued to be a challenge over
the last four years. We are working towards reducing
response times by the installation of a traffic signal
preemption system and reviewing our dispatching
services. Also implementing several strategic additions of Fire Stations and staffing apparatus
with 138 full-time firefighters and 11 part-time firefighters, who provide all-hazard responses
including fire, rescue, and Emergency Medical Services (EMS) with certified fire and EMS
professionals. 138 is an increase of four full-time (FTE) positions added to Operations in fiscal
year 2023 and three in fiscal year 2024.
Whole Community
The Pearland Convention and Visitors Bureau (CVB) commemorated its 10th year as a City of
Pearland department with a jam-packed calendar of both leisure and sporting events, robust
marketing campaigns, and the contract award for Pearland’s first-ever Cultural Arts Master Plan
project.
The Parks and Recreation Department is also an essential part of the Pearland community. The
department protects, maintains, and operates 26 parks and facilities, exceeding 547 acres of City-
owned land and over 20 miles of existing city trails.
The Parks & Recreation Department strives to remain safe, relevant, and accessible by all.
Through a dedicated staff, the department offers a variety of sports, recreation, educational
enrichment, adaptive programming, arts programs, culturally inclusive opportunities, nature
exploration, and aquatic activities.
x City of Pearland, Texas 2023 ACFR
In 2023, Pearland Parks & Recreation
adhered to its vision of creating exceptional
experiences for the community through
services, programs, events, volunteerism,
sponsorship attendance, and so much
more. New recreation programs and
experiences were introduced: such as
family cooking classes, the Level 2
Kayaking program, and the Horned Lizard
project. New partnerships, such as Special
Olympics, were formed to bring a Unified
Sports model to Pearland. Upgrades to
existing amenities, such as turf conversion
at the Sports Complex at Shadow Creek Ranch baseball and softball fields provided more
opportunity. Community connected volunteerism with group commitments from organizations
such as Dawson High School Football and many corporate groups to support events, Miracle
League, Knapp Activity Center services, and to supplement summer camp. Through 2023 and
moving forward, Parks and Recreation continues to work on overcoming staffing shortages much
like other agencies nationwide. The department transitioned several part-time positions to full-
time roles at the Pearland RCN and innovatively explored various approaches in other areas to
sustain service delivery to the Pearland community amidst increasing demands on the existing
staff. The department also focuses on remedies for demand on athletic fields through help from
consultants to develop an Athletic Strategic Operating Plan. Pearland Parks & Recreation joined
the ranks of elite park and recreation agencies across the country by earning accreditation for the
third time through the Commission for Accreditation of Parks and Recreation Agencies (CAPRA)
and the National Parks & Recreation Association (NRPA). The City of Pearland was initially
awarded this distinguished accomplishment in 2013 and has since successfully achieved
reaccreditation in 2018 and 2023. CARPA accreditation is the only national accreditation for park
and recreation agencies and is a measure of an agency’s overall quality of operation,
management, and service to the community. This mark of distinction indicates that Pearland
Parks & Recreation has met rigorous standards related to the management and administration of
lands, facilities, resources, programs, safety, and services.
The success of the organization is attributed to having the ability to strike a balance between
steadfast tradition and change through innovation, and delivering services that address the unique
needs of a diverse and engaged community.
xi City of Pearland, Texas 2023 ACFR
Strong Economy
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 staff works with the City and partners to generally promote the City and to utilize various
tools to encourage and sustain quality private investment. Tools include PEDC investing in the
infrastructure that businesses rely upon and judicious use of 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 that are tied to the performance of the private investment
goals.
Throughout 2023, PEDC continued to coordinate implementation efforts for the Pearland
Prosperity community strategic plan, which was adopted in early 2020. At the center of the
Pearland Prosperity framework are two Community Goals that broadly identify the desired
outcomes of Pearland’s holistic economic development effort: (1) Economic growth and
diversification and (2) A community of choice in Greater Houston. These goals can be pursued
through a number of Strategic Initiatives grouped into seven high-level Focus Areas: (1) Business
Development, (2) Business Formation and Early-Stage Growth, (3) Site Development, (4)
Corridors, (5) Infrastructure and Mobility, (6) Quality of Life and Quality of Place, and (7)
Workforce and Talent.
The following highlights a few of PEDC’s fiscal year 2023 business development projects.
xii City of Pearland, Texas 2023 ACFR
Millar, Inc. opened its new headquarters
and manufacturing facility located in
Pearland’s Lower Kirby District in August
2023. Founded in 1969, Millar, Inc.
pioneered the development of pressure
sensor technology, directing its design
and manufacturing expertise toward
integrating that technology into catheters
for life sciences and clinical applications.
PEDC began working with Millar in 2017
on its relocation to Pearland. The site
Millar selected for its facility was part of
tract owned by PEDC, which it sold to
Millar. The 56,000-square-foot
headquarters and manufacturing facility
will also house the company’s R&D and
warehouse functions. Located on a five-
acre site on Kirby Drive just south of
Beltway 8, the relocation brought $10.6M
in capital investment and 140 jobs to
Pearland.
In Lower Kirby, the Brennan Investment Group project reached completion, marking a significant
milestone in the area's ongoing growth. The newly
unveiled Class-A distribution building, spanning 216,004
square feet and situated on a 12-acre site to the east of
the intersection of Kirby Drive and North Spectrum
Boulevard, stands as a testament to the district's
strategic location and continued development. This
achievement is part of a broader initiative that
encompasses several office warehouse projects,
potentially contributing more than one million square feet
to the district. Other projects include Levey Group's
Levey Logistics Park, featuring plans for two Class-A
industrial buildings spanning approximately 650,000
square feet at Beltway 8 and Alameda School Road; Adkisson Group's proposed 128,250-square-
foot distribution building at Beltway 8 and Hooper Road; and Stream Realty's anticipated 392,188
square-foot distribution project at the corner of Kirby Drive and North Spectrum Boulevard.
xiii City of Pearland, Texas 2023 ACFR
With the construction of the managed toll lanes along State
Highway 288, one of Pearland’s principal corridors, completed in
both Harris and Brazoria Counties, PEDC, the City, and Pearland
Municipal Management District No. 2 (PMMD2) completed the
288 Corridor Master Improvements Plan in 2023.
The final phase of the multiple-phase master improvements plan,
which included landscape elements, irrigation, lighting, water
fountains, pear sculptures, and sidewalks and gateway markers
was completed in 2023. PEDC funded the entire $24.1 million
cost of the 288 Corridor Master Plan Improvements while the
maintenance and long-term improvements will be the primary
responsibility of PMMD#2 via its taxing authority.
The Pearland Young Professionals program also launched in 2023, providing networking, career
development, leadership, and civic engagement opportunities for area young professionals.
Visitors also make up a piece of the strong economy of the City of Pearland. Pearland welcomed
350,000 visitors to the City during 2023 with visitors originating from the top five cities including
DFW, Austin, San Antonio, College Station, and New Orleans.
The CVB continued to nurture the partnership with the United States Fastpitch Association
(USFA) to expand their footprint in Pearland to 10 tournaments in a calendar year. During fiscal
year 2023 the partnership produced a total of 1,361 room nights for Pearland hotels. Pearland
welcomed a total of 470 teams with 94 traveling teams and an overall attendance of 22,904 with
an estimated total economic impact of $3.3 million.
Additionally, the 10 regional tournaments held within a calendar year met the milestone needed
to utilize hotel occupancy tax funds for a sports facility improvement project at a single, host
facility.
Fiscal year 2023 culminated in ranking at the top spot for the highest Hotel Occupancy Tax
revenue generated since the inception of the CVB as a City department in 2013. Total fiscal year
2023 Hotel Occupancy Tax revenue equaled $1,743,243 representing a 14% year-over-year
increase.
xiv City of Pearland, Texas 2023 ACFR
Workforce and Talent, the seventh focus area in the Pearland Prosperity strategic plan, serves to
connect and enhance Pearland’s talent pipeline through a collaborative approach.
In March 2023, WorkInPearland, Pearland's Workforce and Job Resource, officially launched.
Developed through a collaborative partnership between the Pearland Economic Development
Corporation (PEDC) and the Pearland Chamber of Commerce, WorkInPearland serves as a vital
link connecting employers to Pearland's talented workforce and providing comprehensive job
postings, regional training programs, and workforce support services.
Job seekers, irrespective of residency, can register to access local jobs, regional training
programs, and workforce support services throughout the year. Area businesses have the
opportunity to showcase their organizations and career opportunities through customizable virtual
booths.
In September, WorkInPearland extended its impact by hosting an in-person job fair at the
Pearland Recreation Center. The event, conducted in collaboration with the Pearland Chamber
of Commerce and Workforce Solutions – Pearland, provided nearly 600 job seekers with valuable
opportunities to engage with more than 68 actively hiring employers. Attendees also had the
chance to explore various training and educational resources available within the Pearland
community, highlighting a collaborative effort to foster employment opportunities and workforce
growth in our community.
Sustainable Infrastructure
Land use planning allows a community to accommodate its projected growth in a manner that
preserves its history and culture, as well as enhances 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 utilizes its 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 bustling
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 identifying forthcoming needs and setting definitive plans in place
to continue to manage this growth. To continue to stay ahead of the curve, Pearland is currently
in the process of updating the Comprehensive Plan, Pearland2040, to ensure the city is prepared
for key trends, new challenges, and the full array of opportunities ahead.
With continued residential and
commercial development, the
need to plan and build new
infrastructure and maintain and
replace existing infrastructure is a
priority. It is a priority and will be
implemented through an
aggressive capital improvement
program. The City’s adopted
(September 11, 2023) Five-Year
CIP 2024–2028 totals $850.7
million. Projects include drainage
xv City of Pearland, Texas 2023 ACFR
($124.5 million), parks ($43.8 million), facilities ($133.9 million), streets ($118.6 million), water
($119.9 million) and wastewater ($309.7 million). The City’s adopted CIP also includes the
proposed 2023 bond program recommended projects. Projects selected in the proposed bond
program represent Drainage (14 projects), Parks (2 projects), Facilities (1 project), and Streets (2
projects).
In 2019 the Citizens of Pearland voted on the 2019 bond program. The program was $80 million
of projects that included Drainage, Streets, Parks, and Facilities. The program is nearing the 5-
year mark and all projects are completed, in design, or construction. Completed projects are Fire
Station 4, Shari Colman Animal Shelter, Piper Road Drainage, Mimosa Acres Drainage, Parks
Maintenance, and Hickory Slough detention basin. Projects nearing construction completion are
West Lea Drainage, Willowcrest subdivision, with Sherwood subdivision reconstruction in design
phase, and the Bailey Road expansion is under construction.
In July 2022 the City Council created the Citizens Drainage Bond Advisory Committee
(Committee) to meet for a period of 6 months and develop and recommend projects for a drainage
bond program. The Committee selected 14 drainage projects for inclusion in the selected
proposed 2023 bond program. Projects include Veterans Road, Longwood Park subdivision,
Shady Crest and Creek View subdivision, and several other areas throughout the City.
Major street projects include: the completion of the last major east-west thoroughfare, McHard
Road (from Mykawa to Cullen), in April 2023; designing of Mykawa Road Widening (BW 8 to FM
518); design completion and bidding of Smith Ranch Road Expansion (Hughes Ranch to
Broadway); construction of the Bailey Road Expansion (Veterans Drive to Main Street); and
various intersection improvements and neighborhood street reconstructions. In addition, the 2023
bond program proposes to construct Hughes Road expansion.
Facility projects include Fire Station #6, Fire Station #7, Police Training Center, Hillhouse Road
Annex Phase 2, Natatorium Air Handling Replacement, Water Operations Building, and Orange
Street Service Center Phase 2.
Parks projects include Clear Creek Trail, Woodcreek Park Bridge, and two projects proposed in
the 2023 bond program, Hickory Slough Sportsplex and Independence Park Phase II.
Major projects for water improvements include the upcoming completion of the Surface Water
Plant Phase 1 (10 MGD) and Bailey Water Plant Improvements, FM 518 Utility Relocations
(SH288 to Cullen), Transite Pipe Waterline Replacement Program, Water Production Facility
Rehabilitation and Ground Storage Tank Rehabilitation.
Wastewater projects include the upcoming completion of the JHEC Water Reclamation Facility
Expansion, Barry Rose Water Reclamation Facility Expansion, Longwood Water Reclamation
Facility decommissioning, Sanitary Sewer Rehabilitation, Lift Station Rehabilitation, and
Southdown Regional Lift Station & Force Main.
In addition to physical infrastructure improvements, the City is involved in regional efforts for long-
range transportation planning and funding. The Mayor is a member of H-GAC’s Transportation
Policy Council (TPC), with the City Manager serving as an alternate. The City Manager is also a
member and past chair of the Transportation Advisory Committee (TAC), a sub-committee of the
TPC, and a member of the Transportation Improvement Program (TIP) Subcommittee.
xvi City of Pearland, Texas 2023 ACFR
The prior TIP calls provided major funding for ongoing and upcoming projects in and around
Pearland as depicted below.
With the growth in population throughout Pearland the need for additional capacity along our
major commercial east-west thoroughfare (FM518) has been recognized by TxDOT and H-GAC
with construction funding for the widening the segment between SH288 and Cullen Boulevard to
six lanes allocated for 2026. Additionally, TxDOT has started the design and land acquisition to
widen FM518 to six lanes between Cullen Boulevard and McLean Road. Additional planning for
the future has started with H-GAC studying the needs along FM518 between McLean and
Friendswood including a more detailed look between McLean and Barry Rose in our Old Town
area.
The City is continuing to move forward with the projects that have been approved in the TIP and
will continue to improve connectivity as well as general mobility (roads and trails) throughout the
City.
Project Project Sponser Project Limits
City/County
Funds
Federal/State
Funds
Total Project
Estimate
Project
Letting Date
McHard Road City of Pearland Mykawa to Cullen 15,466,469.00$ 32,380,531.00$ 47,847,000.00$ 2020
CR 59 Brazoria County Kirby to Kingsley 1,954,000.00$ 7,816,000.00$ 9,770,000.00$ 2022
Safe Routes to School City of Pearland Various 1,208,400.00$ 2,553,600.00$ 3,762,000.00$ 2022
Smith Ranch Road City of Pearland Hughes Ranch Road to FM 518 9,724,409.00$ 3,899,128.00$ 13,623,537.00$ 2023
CR 58 Brazoria County Savannah Pkwy to CR 48 1,223,200.00$ 4,892,800.00$ 6,116,000.00$ 2023
FM 521 Fort Bend County FM 2234 to SH 6 15,045,400.00$ 60,181,600.00$ 75,227,000.00$ 2024
Clear Creek Trail City of Pearland Hughes Road to U of H 3,785,872.00$ 6,684,128.00$ 10,470,000.00$ 2024
MyKawa Road City of Pearland FM 518 to BW 8 17,526,623.00$ 2,237,680.00$ 19,764,303.00$ 2026
xvii City of Pearland, Texas 2023 ACFR
Resilient Finances
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 include 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.
While inflation and supply chain issues continue to impact the world, the local economy has
remained strong and healthy. Local Pearland sales taxes have continued to grow but have
slowed, seeing an increase in sales tax revenue in fiscal year 2023 of 6% over fiscal year 2022.
Property Tax revenue is projected to maintain the strong levels that have developed, despite an
error by the Brazoria County Tax Office when calculating the total property tax base for fiscal year
2023. The revaluation was a one-time occurrence and was immediately addressed via fiscal year
2023 Budget Amendment #1. Property taxes provide a timing buffer from the standpoint that the
fiscal year 2023 budget relies upon values determined by the three county appraisal districts as
of January 1, 2022. Likewise, values as of January 1, 2023 will provide the General Fund and
Debt Service Fund revenues for fiscal year 2024. Property values have remained strong, and the
housing market continues to flourish, despite the nationwide slowdown in the real estate market
due to increased borrowing costs. Looking ahead, property values as of January 1, 2023 will not
come into play until the City’s fiscal year 2024.
The future impacts of the property tax valuation error were resolved in fiscal year 2023 with the
Brazoria County Tax Office signing an updated property tax calculation worksheet – providing the
City with enough property tax increment to address the situation in a financially sustainable and
politically acceptable manner.
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 Annual Comprehensive Financial Report for the year ended September 30, 2022.
This was the 47th 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 annual comprehensive 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 annual comprehensive
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 2022, the Government Treasurers’ Organization of Texas (GTOT) awarded the second
Certificate of Distinction to the City of Pearland for its Investment Policy. The certification is good
for a two-year period ending in 2024. 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.
xviii City of Pearland, Texas 2023 ACFR
The City has also received the GFOA’s Distinguished Budget Presentation Award for its annual
budget document for 36 consecutive years with its Fiscal Year 2022 budget document. In order
to qualify for the Distinguished Budget Presentation Award, the government’s budget document
had to be judged proficient as a policy document, a financial plan, an operations guide, and a
communications device.
The City will submit a Popular Annual Financial Report (PAFR) to Government Finance Officers
Association (GFOA) for fiscal year 2023. The Popular Annual Financial Reporting Awards
Program (PAFR Program) was established by GFOA in 1991 to encourage and assist state and
local governments to extract information from their annual comprehensive financial report to
produce high quality reports specifically designed to be readily accessible and easily
understandable to the general public without a background in public finance and then to recognize
individual governments that are successful in achieving that goal. This is the fifth year in a row
the City is participating in this program.
The preparation of this report is 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 responsibly.
Respectfully submitted,
Trent Epperson Ron Fraser
City Manager Deputy City Manager
Victor Brownlees Kendra Murphy
Interim Chief Financial Officer Deputy Director of Finance
Transmittal
June 24, 2024
xix City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
PRINCIPAL OFFICIALS
September 30, 2023
Elected Officials
Position
Term Expires
May
Kevin Cole Mayor 2026
Joseph Koza Mayor Pro‐Tem – Place 1 2025
Tony Carbone City Council Place 2 2024
Mona Chavarria City Council Place 3 2026
Adrian Hernandez City Council Place 4 2024
Layni Cade City Council Place 5 2025
Chad Thumann City Council Place 6 2025
Rushi Patel City Council Place 7 2026
Audit Committee Members Position
Kevin Cole Mayor
Tony Carbone Councilmember – Position 2
Jeffrey Barry Councilmember – Position 6
City Management Position
Trent Eppersson City Manager
Ron Fraser Deputy City Manager
Victor Brownlees Assistant City Manager / Interim Chief Financial Officer
Joel Hardy Grants‐ Special Projects Administrator
Matt Buchanan President PEDC
J. Jack Taylor Fire Chief
Frances Aguilar City Secretary
Lorenzo Wingate Director of Public Works
LaRae James Director of Human Resources
Johnny Spires Police Chief
Carry Capers Director of Parks & Recreation
Vance Wyly Director of Community Development
Tracy Rohrbacher Executive Director, CVB
Joshua Lee Director of Communications
Darrin Coker City Attorney
Daniel McGhinnis Chief Information Officer
David Sohns Director of Utilities
Letitia Farnie Municipal Court Judge
xx City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS ORGANIZATIONAL CHART AS OF SEPTEMBER 30, 2023
xxi City of Pearland, Texas 2023 ACFR
xxii City of Pearland, Texas 2023 ACFR
1 City of Pearland, Texas 2023 ACFR
FINANCIAL SECTION
2 City of Pearland, Texas 2023 ACFR
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
3 City of Pearland, Texas 2023 ACFR
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of City Council
City of Pearland, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business‐type activities, each major fund, and
the aggregate remaining fund information of the City of Pearland, Texas (the “City”), as of and for the year ended September
30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements
as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining
fund information of the City, as of September 30, 2023, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS)
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet
our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
To the Honorable Mayor and Members of City Council
City of Pearland, Texas
4 City of Pearland, Texas 2023 ACFR
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City’s
internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control‐related matters that we identified during the
audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis,
pension information, other‐post employment benefit information, and certain budget to actual schedules, as listed in the
table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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.
Supplementary 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 combining and individual fund statements and schedules and budget to actual schedules are
presented for purposes of additional analysis and are 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.
To the Honorable Mayor and Members of City Council
City of Pearland, Texas
5 City of Pearland, Texas 2023 ACFR
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual fund statements and schedules and budget to actual schedules, are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory and statistical section, but does not include the basic financial statements and our auditor’s report thereon. Our
opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form
of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2024 on our consideration
of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of
our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over
financial reporting and compliance.
Houston, Texas
June 24, 2024
6 City of Pearland, Texas 2023 ACFR
7 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
As Management of the City of Pearland, Texas (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, 2023. This information is
not intended to be a complete statement of the City's financial condition. We recommend and encourage readers to consider
the information presented here in conjunction with the additional information presented in the accompanying transmittal
letter (Pages i ‐ xviii of this report), and the statistical section (Pages 153 ‐ 195 of this report), as well as the annual budget
found on the City's website at https://www.pearlandtx.gov/.
Financial Highlights
The assets and deferred outflows of resources of the primary government of the City exceeded its liabilities and
deferred inflows of resources as of September 30, 2023, by $913.3 million (net position). Of this amount, $742.1
million is invested in capital assets, net of related capital debt and $113.4 million is restricted for capital
improvements, debt service, community development programs, public safety and economic development. The
remaining $57.8 million net position is unrestricted.
The City’s total net position increased by $32.0 million due to increases in utility billing charges, property taxes, and
sales taxes.
As of September 30, 2023, the City's governmental funds reported combined ending fund balances of $146.2 million,
a decrease of $29.6 million in comparison to the prior year. Approximately $107.1 million of the $146.2 million is
considered restricted fund balance and primarily consists of $34.6 million for economic development and $34.7
million for capital projects.
As of September 30, 2023, the fund balance of the General Fund was $31.3 million, all of which was unassigned,
except for $7,232 which was nonspendable for prepaid expenses. Unassigned fund balance represents 32% of total
General Fund expenditures.
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. Additionally, required supplementary information which includes this
management's discussion and analysis, information related to the City's pension plan and retiree health plans and budgetary
comparison information is also included in this report. This report also contains other supplementary information as listed in
the table of contents 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).
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
8 City of Pearland, Texas 2023 ACFR
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, parks and recreation, economic development, and
intergovernmental. The business‐type activities of the City include water, sewer, and solid waste. The government‐wide
financial statements can be found on pages 17 through 19 of this report. The government‐wide financial statements include
not only the City, itself (known as the primary government), but also legally separate entities for which the City is financially
accountable. These entities include the Pearland Economic Development Corporation, the Development Authority of
Pearland, and the Tax Increment Reinvestment Zone #2. 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
categories – governmental funds and proprietary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government‐wide financial statements. However, unlike the government‐wide financial statements,
governmental fund financial statement focus on current sources and uses of spendable resources, as well as on balances of
spendable resources available at the end of the FISCAL YEAR. Such information may be useful in evaluating a government's
near‐term financing requirements.
Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities
in the government‐wide financial statements. By doing so, readers may better understand the long‐term impact of the
government's near‐term financing decisions. Both the governmental funds balance sheet and the governmental fund
statements of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
Beginning on page 20 of this report, information is presented separately in the Governmental Funds Balance Sheet and in the
Governmental Funds 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 28 of this report, provide separate information for the
Water and Sewer and Solid Waste Enterprise Funds since they are considered to be a major fund of the City. The basic
proprietary fund financial statements can be found on pages 28 through 33 of this report.
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
9 City of Pearland, Texas 2023 ACFR
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 35 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 83 of this report.
Government‐wide Overall 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 $913.3 million at the close of the most recent fiscal
year.
By far the largest portion of the City's net position (81%) reflects its investment in capital assets, less any related debt used
to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Comparative Statement of Net Position
September 30, 2023 and 2022
Net Position
Governmental Activities Business‐type Activities Totals
2023 2022 2023 2022 2023 2022
Assets and
Deferred Outflows
Assets:
Current 195,812,584$ 234,227,670$ 133,625,571$ 194,611,940$ 329,438,155$ 428,839,610$
Capital assets 927,270,327 905,391,897 608,850,188 560,501,002 1,536,120,515 1,465,892,899
Total assets 1,123,082,911 1,139,619,567 742,475,759 755,112,942 1,865,558,670 1,894,732,509
Deferred outflows 26,323,538 14,004,754 3,639,491 2,074,947 29,963,029 16,079,701
Total Assets and
Deferred Outflows 1,149,406,449 1,153,624,321 746,115,250 757,187,889 1,895,521,699 1,910,812,210
Liabilities and
Deferred Inflows
Liabilities:
Current 17,851,486 27,005,315 28,089,006 33,630,866 45,940,492 60,636,181
Long‐term 497,797,185 494,161,258 433,683,878 452,855,885 931,481,063 947,017,143
Total liabilities 515,648,671 521,166,573 461,772,884 486,486,751 977,421,555 1,007,653,324
Deferred inflows 4,463,363 12,661,096 320,929 1,751,488 4,784,292 14,412,584
Total Liabilities and
Deferred Inflows 520,112,034 533,827,669 462,093,813 488,238,239 982,205,847 1,022,065,908
Net Position
Net investment in
capital assets 520,908,660 511,376,611 221,204,781 139,301,257 742,113,441 650,677,868
Restricted 79,137,368 48,792,055 34,269,076 30,063,595 113,406,444 78,855,650
Unrestricted 29,248,387 59,627,986 28,547,580 99,584,798 57,795,967 159,212,784
Total Net Position 629,294,415$ 619,796,652$ 284,021,437$ 268,949,650$ 913,315,852$ 888,746,302$
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
10 City of Pearland, Texas 2023 ACFR
Comparative Statement of Activities
Year Ended September 30, 2023 and 2022
Changes in Net Position
Governmental Activities Business‐type Activities Totals
2023 2022 2023 2022 2023 2022
Revenues
Program Revenues:
Charges for services 27,387,227$ 31,093,594$ 76,172,785$ 62,206,430$ 103,560,012$ 93,300,024$
Operating grants and
contributions 15,685,275 20,115,314 ‐ 35,351 15,685,275 20,150,665
General Revenues:
Property taxes 105,406,761 101,524,474 ‐ ‐ 105,406,761 101,524,474
Sales and use taxes 47,417,820 44,699,475 3,553 ‐ 47,421,373 44,699,475
Franchise taxes 7,383,276 6,869,599 ‐ ‐ 7,383,276 6,869,599
Investment earnings 8,576,993 472,072 6,788,422 1,161,439 15,365,415 1,633,511
Gain (loss) on sale
of capital assets 60,493 ‐ (5,183) ‐ 55,310 ‐
Miscellaneous 16,393,373 5,206,387 347,698 45,375 16,741,071 5,251,762
Total Revenues 228,311,218 209,980,915 83,307,275 63,448,595 311,618,493 273,429,510
Expenses
General government 15,525,231 34,580,025 ‐ ‐ 15,525,231 34,580,025
Public safety 69,571,000 52,440,312 ‐ ‐ 69,571,000 52,440,312
Public works 51,590,615 33,362,976 ‐ ‐ 51,590,615 33,362,976
Community services 5,576,750 4,834,347 ‐ ‐ 5,576,750 4,834,347
Park and Recreation 10,145,289 8,040,915 ‐ ‐ 10,145,289 8,040,915
Economic Development 41,692,122 39,101,460 ‐ ‐ 41,692,122 39,101,460
Intergovernmental 8,170,718 ‐ ‐ ‐ 8,170,718 ‐
Interest on debt 13,762,987 13,238,056 ‐ ‐ 13,762,987 13,238,056
Water and sewer ‐ ‐ 56,008,286 48,592,364 56,008,286 48,592,364
Solid waste ‐ ‐ 7,555,660 7,157,894 7,555,660 7,157,894
Total Expenses 216,034,712 185,598,091 63,563,946 55,750,258 279,598,658 241,348,349
Change in Net Position
Before Transfers 12,276,506 24,382,824 19,743,329 7,698,337 32,019,835 32,081,161
Transfers 7,142,355 6,079,216 (7,142,355) (6,079,216) ‐ ‐
Change in Net Position 19,418,861 30,462,040 12,600,974 1,619,121 32,019,835 32,081,161
Net Position, Beginning,
as Restated 609,875,554 589,334,612 271,420,463 267,330,529 881,296,017 856,665,141
Net Position ‐ Ending 629,294,415$ 619,796,652$ 284,021,437$ 268,949,650$ 913,315,852$ 888,746,302$
The City’s overall net position increased by $32.0 million from the prior fiscal year. The reasons for this change are discussed
in the following sections for governmental activities and business‐type activities.
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
11 City of Pearland, Texas 2023 ACFR
Governmental Activities. Governmental activities net position increased by $19.4 million, from a restated net position of
$609.9 million to an ending net position of $629.3 million. Key elements of this change are as follows.
Property taxes increased by $3.9 million when compared to the previous year due to an increase in appraised values.
Sales taxes increased by $2.7 million when compared to the previous year.
Investment earnings increased by $8.1 million due to a much more favorable market in 2023.
Total expenses increased by $30.4 million from the previous fiscal year.
Business‐type Activities. Business‐type activities net position increased by $12.6 million, from a restated net position of
$271.4 million to an ending net position of $284.0 million. Key elements of this change are as follows
Charges for services increased by $14.0 million due to a 13% increase in rates on October 1, 2022 and an increase in
the number of customers served.
Investment earnings increased by $5.6 million due to a much more favorable market in 2023.
Total expenses increased by $7.8 million due to increased demand for service and increasing costs.
Financial Analysis of Governmental 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 $146.2 million. Of this amount, $28.8 million is unassigned
and available for day‐to‐day operations of the City; $18,518 is nonspendable; $107.1 million is restricted; $9.3 million is
committed by City Council; and $1.0 million is assigned by management.
Analysis of Individual Funds
The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the
general fund was $31.3 million, while total fund balance decreased by $2.4 million to an ending balance of $31.3 million. This
change was due to less than anticipated revenues generated from various sources such as property taxes, sales taxes, fines
and forfeitures. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance to
total general fund expenditures. Unassigned fund balance represents 32% of total general fund expenditures.
The fund balance of the City’s debt service fund decreased by $0.1 million during the current fiscal year to an ending fund
balance of $3.4 million. This activity in this fund varies based on the amount of debt outstanding each year.
The fund balance of the City’s capital projects fund decreased by $28.1 million during the current fiscal year to an ending fund
balance of $41.9 million. This change was due to continued spending on bond projects.
The fund balance of the Pearland Economic Development Corporation decreased by $5.1 million during the current fiscal year
to an ending fund balance of $34.6 million. This change was due to transfers out to the capital projects fund.
The fund balance of the Tax Increment Reinvestment Zone #2 increased by $2.2 million during the current fiscal year to an
ending fund balance of $9.4 million. This change was due to property taxes exceeding amounts required to be transferred to
the Development Authority of Pearland.
The fund balance of the Development Authority of Pearland increased by $0.2 million during the current fiscal year to an
ending fund balance of $13.3 million. This change was due to slightly higher scheduled bond payment requirements in future
years.
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
12 City of Pearland, Texas 2023 ACFR
Proprietary Funds. The City's proprietary funds provide the same type of information found in the government‐wide financial
statements, but in more detail. The City's business‐type activities primarily consist of services provided by the water and
sewer fund.
The net position of the water and sewer fund increased by $11.2 million during the current fiscal year to an ending net
position of $277.8 million. This change was due to a 13% increase in rates on October 1, 2022 and an increase in the number
of customers served, offset by increasing costs to operate the utility department.
General Fund Budgetary Highlights
Original budget compared to final budget. During the year, there was an increase of $1.0 million in appropriations between
the adopted and amended budget which is only a 1.0% amendment to total adopted expenditures.
Final budget compared to actual results. Actual revenues of $96.5 million were less than final budgeted amounts by $0.6
million due to less than anticipated revenues generated from various sources such as property taxes, sales taxes, fines and
forfeitures. Actual expenditures of $96.8 million were less than final budgeted amounts by $4.3 million primarily due to less
than anticipated public works expenditures.
Capital Assets And Debt Administration
Capital Assets. At the end of fiscal year 2023, the City's governmental activities and business‐type activities had invested
$927.3 million and $608.9 million, respectively, in a variety of capital assets and infrastructure, as reflected in the following
schedule. This represents a net increase of an increase of $20.9 million over the end of last fiscal year for the governmental
activities and an increase of $45.9 million over the end of last fiscal year for business‐type activities.
Capital Assets
Governmental Activities Business‐type Activities Totals
2023
2022
as Restated 2023
2022
as Restated 2023
2022
as Restated
Land 50,908,495$ 40,610,789$ 10,343,706$ 3,877,076$ 61,252,201$ 44,487,865$
Construction in progress 109,327,102 136,886,909 270,713,695 227,553,541 380,040,797 364,440,450
Infrastructure 591,512,312 569,679,090 292,549,322 294,839,656 884,061,634 864,518,746
Buildings and improvements 133,263,251 124,631,524 20,627,872 21,362,801 153,891,123 145,994,325
Machinery and equipment 9,434,156 9,218,047 342,567 489,836 9,776,723 9,707,883
Furniture and fixtures 25,741,008 22,439,744 812,864 11,654 26,553,872 22,451,398
Contractual water rights ‐ ‐ 13,460,162 14,835,230 13,460,162 14,835,230
Lease assets 108,551 43,803 ‐ ‐ 108,551 43,803
SBITA assets 6,975,452 2,845,005 ‐ ‐ 6,975,452 2,845,005
Total Capital Assets 927,270,327$ 906,354,911$ 608,850,188$ 562,969,794$ 1,536,120,515$ 1,469,324,705$
Construction in progress at year‐end represents numerous ongoing projects, the largest of which relate to street, parks, and
water/sewer projects. City's capital assets can be found in Note 4 to the financial statements.
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
13 City of Pearland, Texas 2023 ACFR
Long‐Term Debt. At the end of the current fiscal year, the City had total outstanding debt of $454.7 million in the
governmental activities and $428.1 million in the business‐type activities.
Outstanding Debt
Governmental Activities Business‐type Activities Totals
2023
2022
as Restated 2023
2022
as Restated 2023
2022
as Restated
General obligation bonds 250,510,000$ 265,615,000$ 2,380,000$ 2,710,000$ 252,890,000$ 268,325,000$
Certificates of obligation 89,950,000 101,660,000 45,710,000 45,710,000 135,660,000 147,370,000
Revenue bonds 68,345,000 64,810,000 363,085,000 382,785,000 431,430,000 447,595,000
Unamortized premium 29,643,687 36,212,515 16,073,123 18,575,144 45,716,810 54,787,659
Leases 108,923 41,568 ‐ ‐ 108,923 41,568
Financed purchases ‐ 130,839 ‐ ‐ ‐ 130,839
SBITAs 6,369,647 2,426,245 ‐ ‐ 6,369,647 2,426,245
Compensated absences 9,801,250 9,134,082 831,182 855,852 10,632,432 9,989,934
Total Outstanding Debt 454,728,507$ 480,030,249$ 428,079,305$ 450,635,996$ 882,807,812$ 930,666,245$
The City's outstanding debt for governmental activities decreased by $25.3 million due to scheduled principal payments,
principal refunding of $4,420,000, and defeasance of $8,900,000, offset by issuance of $18.2 million in bonds. The City's debt
for business‐type activities decreased by $22.6 million from the previous year due to scheduled principal payments. Current
credit ratings on debt issues are as follows:
S&P Fitch Moody's
General obligation bonds AA AA A2
Certificates of obligation AA AA Aa2
Revenue bonds N/A A+ A3
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.
Economic Factors and Next Year's Budget and Rates
Pearland, Texas, is experiencing robust economic growth with significant development in healthcare, education, retail, and
technology sectors. The city’s healthcare industry is booming with numerous expansions to meet the needs of its growing
population. Pearland’s local businesses and educational institutions further bolster its strong job market.
As the fastest‐growing city in the region, Pearland offers everything needed for business success, including affordable
housing, outstanding schools, safe neighborhoods, and a superb quality of life. With millions of square feet of retail, office,
and residential construction completed in the past decade, Pearland is on its way to becoming the next major employment
center.
In fiscal year 2024, Pearland projects strong sales tax revenue of $32.1 million, a 3.5% increase from fiscal year 2023. The city
received positive bond ratings from Moody's and Fitch for its 2023 issuances, reflecting a stable financial outlook. The City's
Permanent Improvement Bonds Series 2023 for $7.7 million, and the City's Certificates of Obligation Series 2023A and 2023B
for $9.4 million and $9.08 million, respectively, were assigned a rating of 'AA' by Fitch and 'Aa2' by Moody's. Additionally,
Pearland is investing in Internal Service Funds to stabilize tax rates and avoid capital outlay "spikes." The city plans for
conservative sales tax growth of 3% and continued strong property values, expected to rise by upwards of 10%.
Pearland’s close proximity to cultural amenities, professional sports, and recreational opportunities enhances its appeal. The
city continues to invest in Internal Service Funds to assist with operating expenses moving forward, helping residents and
businesses by stabilizing the tax rate. This initiative aims to avoid capital outlay "spikes" in tax rates.
CITY OF PEARLAND, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)
14 City of Pearland, Texas 2023 ACFR
Requests for Information
The financial report is designed to provide our citizens, customers, investors and creditors with a general overview of City's
finances. If you have questions about this report or need any additional financial information, contact Kendra Murphy, Deputy
Director of Finance, at 3523 Liberty Drive, Pearland, Texas 77581, or 281‐652‐1698. The report and general information can
be found on the City's website at www.pearlandtx.gov.
15 City of Pearland, Texas 2023 ACFR
BASIC FINANCIAL STATEMENTS
16 City of Pearland, Texas 2023 ACFR
See notes to the financial statements. 17 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF NET POSITION
September 30, 2023
Primary Government
Governmental
Activities
Business‐type
Activities Total
Assets
Cash and equivalents 105,314,308$ 3,892,165$ 109,206,473$
Investments 12,402,817 ‐ 12,402,817
Receivables, net of allowance
for uncollectibles 30,535,596 12,547,997 43,083,593
Internal balances (5,579,397) 5,579,397 ‐
Inventories 629,460 ‐ 629,460
Prepaid items 18,518 ‐ 18,518
Restricted cash and cash equivalents 52,491,282 111,606,012 164,097,294
Capital Assets:
Nondepreciable 160,235,597 281,057,401 441,292,998
Depreciable, net 767,034,730 327,792,787 1,094,827,517
Total Capital Assets 927,270,327 608,850,188 1,536,120,515
Total Assets 1,123,082,911 742,475,759 1,865,558,670
Deferred Outflows of Resources
Deferred charge on refunding 3,856,283 715,803 4,572,086
Pension related 21,366,290 2,780,418 24,146,708
OPEB related 1,100,965 143,270 1,244,235
Total Deferred Outflows of Resources 26,323,538 3,639,491 29,963,029
Liabilities
Accounts payable 3,780,614 7,319,696 11,100,310
Accrued liabilities 8,589,727 15,865,461 24,455,188
Accrued interest 1,681,102 777,007 2,458,109
Unearned revenues 2,829,315 ‐ 2,829,315
Customer deposits 970,728 4,126,842 5,097,570
Long‐term liabilities:
Due within one year: Bonds, leases,
financed purchases, compensated absences 40,275,883 22,684,354 62,960,237
Due in more than one year:
Bonds, leases, financed purchases,
compensated absences 414,452,624 405,394,951 819,847,575
Net pension liability 37,215,147 4,842,847 42,057,994
Total OPEB liability 5,853,531 761,726 6,615,257
Total Liabilities 515,648,671 461,772,884 977,421,555
Deferred Inflows of Resources
Lease related 1,997,166 ‐ 1,997,166
OPEB related 2,466,197 320,929 2,787,126
Total Deferred Inflows of Resources 4,463,363 320,929 4,784,292
Net Position
Net investment in capital assets 520,908,660 221,204,781 742,113,441
Restricted for:
Capital improvements ‐ 19,683,269 19,683,269
Debt service 10,094,363 14,585,807 24,680,170
Tourism 7,732,367 ‐ 7,732,367
Community development programs 3,181,050 ‐ 3,181,050
Grants 167,563 ‐ 167,563
Public safety 668,452 ‐ 668,452
Economic development 57,293,573 ‐ 57,293,573
Unrestricted 29,248,387 28,547,580 57,795,967
Total Net Position 629,294,415$ 284,021,437$ 913,315,852$
18 City of Pearland, Texas 2023 ACFR
See notes to the financial statements. 19 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS STATEMENT OF ACTIVITIES Year Ended September 30, 2023 Net (Expense) Revenue and Changes in Net PositionProgram Revenue Primary GovernmentFunctions/Programs ExpensesCharges for ServicesOperating Grants and ContributionsGovernmental ActivitiesBusiness‐type Activities TotalPrimary GovernmentGovernmental Activities:General government 15,525,231$ 11,807,639$ 11,563,567$ 7,845,975$ ‐$ 7,845,975$ Public safety 69,571,000 7,743,199 ‐ (61,827,801) ‐ (61,827,801) Public works 51,590,615 288,852 4,109,708 (47,192,055) ‐ (47,192,055) Community services 5,576,750 4,066,610 ‐ (1,510,140) ‐ (1,510,140) Parks and recreation 10,145,289 2,106,322 ‐ (8,038,967) ‐ (8,038,967) Economic development 41,692,122 1,374,605 12,000 (40,305,517) ‐ (40,305,517) Intergovernmental 8,170,718 ‐ ‐ (8,170,718) ‐ (8,170,718) Interest on long‐term debt 13,762,987 ‐ ‐ (13,762,987) ‐ (13,762,987) Total Governmental Activities216,034,712 27,387,227 15,685,275 (172,962,210) ‐ (172,962,210) Business‐type activities:Water and sewer 56,008,286 68,700,067 ‐ 12,691,781 12,691,781 Solid waste 7,555,660 7,472,718 ‐ (82,942) (82,942) Total Business‐Type Activities63,563,946 76,172,785 ‐ ‐ 12,608,839 12,608,839 Total Primary Government279,598,658$ 103,560,012$ 15,685,275$ (172,962,210) 12,608,839 (160,353,371) General Revenues:Taxes:Property taxes 105,406,761 ‐ 105,406,761 Sales and use taxes 47,417,820 3,553 47,421,373 Franchise taxes 7,383,276 ‐ 7,383,276 Unrestricted investment earnings 8,576,993 6,788,422 15,365,415 Gain (loss) on sale of assets 60,493 (5,183) 55,310 Miscellaneous 16,393,373 347,698 16,741,071 Transfers 7,142,355 (7,142,355) ‐ Total General Revenues and Transfers192,381,071 (7,865) 192,373,206 Change in net position 19,418,861 12,600,974 32,019,835 Net Position ‐ Beginning, as Restated609,875,554 271,420,463 881,296,017 Net Position ‐ Ending629,294,415$ 284,021,437$ 913,315,852$
See notes to the financial statements. 20 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
BALANCE SHEET ‐ GOVERNMENTAL FUNDS
September 30, 2023
General Fund
Debt Service
Fund
Capital Projects
Fund
Pearland
Economic
Development
Corporation
Assets
Cash and cash equivalents 10,560,232$ 3,473,299$ 2,716,636$ 28,247,980$
Investments 7,637,886 ‐ ‐ 4,764,931
Receivables (net of allowance
for uncollectibles) 9,617,346 4,694,297 5,910,156 7,449,556
Due from other funds 11,985,492 ‐ ‐ ‐
Prepaids 7,232 ‐ ‐ ‐
Restricted cash and cash equivalents ‐ ‐ 52,402,086 ‐
Total Assets 39,808,188$ 8,167,596$ 61,028,878$ 40,462,467$
Liabilities
Accounts payable 598,809$ 13,000$ 2,118,636$ 449,249$
Accrued liabilities 4,166,455 16,150 3,223,851 152,482
Accrued interest ‐ 132,080 ‐ ‐
Deposits payable 965,219 ‐ 2,771 ‐
Due to other funds ‐ ‐ 8,567,129 338,715
Unearned revenue 150,426 ‐ ‐ ‐
Total Liabilities 5,880,909 161,230 13,912,387 940,446
Deferred Inflows of Resources
Unavailable revenue 606,529 4,636,369 5,226,500 4,878,719
Lease related 1,997,166 ‐ ‐ ‐
Total Deferred Inflows of Resources 2,603,695 4,636,369 5,226,500 4,878,719
Fund Balances
Nonspendable 7,232 ‐ ‐ ‐
Restricted ‐ 3,369,997 34,709,307 34,643,302
Committed ‐ ‐ 7,829,794 ‐
Assigned ‐ ‐ ‐ ‐
Unassigned 31,316,352 ‐ (649,110) ‐
Total Fund Balances 31,323,584 3,369,997 41,889,991 34,643,302
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 39,808,188$ 8,167,596$ 61,028,878$ 40,462,467$
See notes to the financial statements. 21 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
BALANCE SHEET ‐ GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Investments
Receivables (net of allowance
for uncollectibles)
Due from other funds
Prepaids
Restricted cash and cash equivalents
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Accrued interest
Deposits payable
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Lease related
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Tax Increment
Reinvestment
Zone #2
Development
Authority of
Pearland
Other
Governmental
Funds
Total
Governmental
Funds
9,417,313$ 13,246,400$ 16,299,236$ 83,961,096$
‐ ‐ ‐ 12,402,817
‐ 4,121 2,598,646 30,274,122
‐ ‐ ‐ 11,985,492
‐ ‐ 11,286 18,518
‐ ‐ ‐ 52,402,086
9,417,313$ 13,250,521$ 18,909,168$ 191,044,131$
14,585$ ‐$ 87,118$ 3,281,397$
2,978 ‐ 181,400 7,743,316
‐ ‐ ‐ 132,080
‐ ‐ ‐ 967,990
‐ ‐ 2,195,217 11,101,061
‐ ‐ 2,678,889 2,829,315
17,563 ‐ 5,142,624 26,055,159
‐ ‐ 1,486,878 16,834,995
‐ ‐ ‐ 1,997,166
‐ ‐ 1,486,878 18,832,161
‐ ‐ 11,286 18,518
9,399,750 13,250,521 11,749,432 107,122,309
‐ ‐ 1,449,011 9,278,805
‐ ‐ 973,825 973,825
‐ ‐ (1,903,888) 28,763,354
9,399,750 13,250,521 12,279,666 146,156,811
9,417,313$ 13,250,521$ 18,909,168$ 191,044,131$
22 City of Pearland, Texas 2023 ACFR
See notes to the financial statements. 23 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
September 30, 2023
Total Fund Balance, Governmental Funds 146,156,811$
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.
Capital assets 1,577,534,743
Accumulated depreciation/amortization (663,843,492)
913,691,251
Differences between expected and actual experiences, assumption changes and net differences
between projected and actual earnings and contributions subsequent to the measurement date for
the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources
and deferred inflows of resources on the statement of net position.
Deferred outflows ‐ pension related 21,187,618
Deferred outflows ‐ OPEB related 1,091,758
Deferred inflows ‐ OPEB related (2,445,574)
19,833,802
Other long‐term assets (property taxes receivable and adjudicated court fines receivable) are not
available to pay current period expenditures and, therefore, are either deferred or not reported in
the funds.
Property taxes receivable 1,473,799
UHCL financing receivable 3,769,099
Street assessments 1,486,878
PEDC receivable 5,878,719
Intergovernmental receivables 4,226,500
16,834,995
Long‐term liabilities that are not due and payable in the current period, and therefore, are not
reported in the funds.
Bonds payable (408,805,000)
Leases payable (108,923)
Compensated absences (9,282,564)
Net pension liability (36,903,942)
Total OPEB liability (5,804,582)
Accrued interest payable on long‐term debt (1,398,424)
(462,303,435)
Governmental funds report the effect of premiums, discounts, and refundings and similar items
when debt is first issued, whereas these amounts are deferred and amortized in the statement of
activities.
Deferred amount on refunding 3,856,283
Premium on bonds (29,643,687)
(25,787,404)
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. 20,868,395
Net Position of Governmental Activities in the Statement of Net Position 629,294,415$
See notes to the financial statements. 24 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES ‐ GOVERNMENTAL FUNDS
Year Ended September 30, 2023
General Fund
Debt Service
Fund
Capital Projects
Fund
Pearland
Economic
Development
Corporation
Revenues
Property taxes 31,193,438$ 36,875,417$ ‐$ ‐$
Sales and use taxes 30,592,388 ‐ ‐ 15,078,283
Franchise fees 7,178,462 ‐ ‐ ‐
Licenses and permits 3,419,601 ‐ ‐ ‐
Fines and forfeitures 1,764,925 ‐ ‐ ‐
Charges for services 20,090,621 ‐ ‐ ‐
Investment earnings 1,449,623 371,342 3,639,310 1,506,308
Intergovernmental ‐ ‐ 4,109,708 12,000
Other 828,550 10,802,953 2,500,027 547,825
Total Revenues 96,517,608$ 48,049,712$ 10,249,045$ 17,144,416$
Expenditures
Current:
General government 9,226,863 ‐ ‐ ‐
Public safety 63,895,113 ‐ ‐ ‐
Public works 10,093,441 ‐ ‐ ‐
Community services 4,709,377 ‐ ‐ ‐
Parks and recreation 7,743,360 ‐ ‐ ‐
Economic development ‐ ‐ ‐ 4,576,659
Debt Service:
Principal 148,633 18,035,000 ‐ 250,000
Interest and other charges 3,027 15,535,258 ‐ 23,600
Bond issuance costs ‐ 10,093,025 ‐ ‐
Capital outlay 1,020,858 ‐ 53,194,337 651,619
Intergovernmental ‐ 8,048,963 ‐ ‐
Total Expenditures 96,840,672 51,712,246 53,194,337 5,501,878
Excess (Deficiency) of Revenues
Over Expenditures (323,064) (3,662,534) (42,945,292) 11,642,538
Other Financing Sources (Uses)
Transfers in ‐ 3,552,442 14,829,526 ‐
Transfers out (2,036,975) ‐ ‐ (16,746,286)
Capital bonds issued ‐ 4,420,000 ‐ ‐
Payment to refunded bond escrow agent ‐ (4,376,057) ‐ ‐
Issuance of debt ‐ leases ‐ ‐ ‐ ‐
Sale of general capital assets 2,428 ‐ ‐ ‐
Total Other Financing Sources (Uses)(2,034,547) 3,596,385 14,829,526 (16,746,286)
Net change in Fund Balances (2,357,611) (66,149) (28,115,766) (5,103,748)
Fund Balances ‐ Beginning, as Restated 33,681,195 3,436,146 70,005,757 39,747,050
Fund Balances ‐ Ending 31,323,584$ 3,369,997$ 41,889,991$ 34,643,302$
See notes to the financial statements. 25 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES ‐ GOVERNMENTAL FUNDS
Year Ended September 30, 2023
Revenues
Property taxes
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Debt Service:
Principal
Interest and other charges
Bond issuance costs
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Capital bonds issued
Payment to refunded bond escrow agent
Issuance of debt ‐ leases
Sale of general capital assets
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning, as Restated
Fund Balances ‐ Ending
Tax Increment
Reinvestment
Zone #2
Development
Authority of
Pearland
Other
Governmental
Funds
Total
Governmental
Funds
37,099,935$ ‐$ ‐$ 105,168,790$
‐ ‐ 1,747,149 47,417,820
‐ ‐ 204,814 7,383,276
‐ ‐ 202,269 3,621,870
‐ ‐ 105,306 1,870,231
‐ ‐ 429,900 20,520,521
292,205 58,959 486,747 7,804,494
‐ ‐ 5,714,554 9,836,262
‐ ‐ 1,011,225 15,690,580
37,392,140$ 58,959$ 9,901,964$ 219,313,844$
‐ ‐ 131,699 9,358,562
‐ ‐ 631,183 64,526,296
‐ ‐ 2,868,297 12,961,738
‐ ‐ 228,253 4,937,630
‐ ‐ 1,005,165 8,748,525
11,841,887 24,747,538 ‐ 41,166,084
‐ 9,950,000 20,454 28,404,087
‐ 2,098,089 ‐ 17,659,974
‐ 192,218 ‐ 10,285,243
‐ ‐ 2,980,752 57,847,566
‐ ‐ 121,755 8,170,718
11,841,887 36,987,845 7,987,558 264,066,423
25,550,253 (36,928,886) 1,914,406 (44,752,579)
‐ 23,364,808 5,511,660 47,258,436
(23,364,808) ‐ (3,868,704) (46,016,773)
‐ 13,735,000 ‐ 18,155,000
‐ ‐ ‐ (4,376,057)
‐ ‐ 105,603 105,603
‐ ‐ ‐ 2,428
(23,364,808) 37,099,808 1,748,559 15,128,637
2,185,445 170,922 3,662,965 (29,623,942)
7,214,305 13,079,599 8,616,701 175,780,753
9,399,750$ 13,250,521$ 12,279,666$ 146,156,811$
26 City of Pearland, Texas 2023 ACFR
27 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES ‐ GOVERNMENTAL FUNDS TO THE
GOVERNMENT‐WIDE STATEMENT OF ACTIVITIES
Year Ended September 30, 2023
Net Change in Fund Balances ‐ Total Governmental Funds:(29,623,942)$
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.
Capital outlay 57,847,566
Depreciation expense (42,021,404)
15,826,162
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade‐ins, and donations) is an
increase (decrease) to net position.(38,040)
The repayment of the principal of long‐term debt consumes the current financial resources of governmental funds. The
transaction, however, does not have any effect on net position. Also, governmental funds report the effect of bond
premiums, discounts and similar items when debt is first issued, whereas the amounts are deferred and amortized in the
statement of activities.
Issuance of debt ‐ bonds (18,155,000)
Issuance of debt ‐ leases (105,603)
Principal paid ‐ bonds 28,235,000
Principal paid ‐ leases 38,248
Principal paid ‐ financing agreement 130,839
Payment to escrow agent ‐ bond refunding 4,376,057
Payment to escrow agent ‐ bond defeasance 9,988,288
24,507,829
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in
the funds.
Property taxes receivable 237,971
UHCL financing receivable (714,610)
Economic development agreement receivables 1,374,605
Intergovernmental receivables 5,849,013
Lease receivables (4,387)
6,742,592
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 on long‐term debt 131,309
Amortization of bond premiums/discounts and deferred amounts of refunding 4,250,792
Current period gain/loss on defeasance of bonds 16,997
Compensated absences (198,066)
Changes in pension liabilities and related deferred outflows and inflows of resources (3,023,250)
Changes in OPEB liabilities and related deferred outflows and inflows of resources (474,975)
702,807
An internal service fund is used by management to charge the cost of certain activities, such
as insurance and fleet management, to individual funds. A portion of the change in net position of the internal service
funds is included in governmental activities in the statement
of activities.1,301,453
Change in Net Position of Governmental Activities 19,418,861$
28 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2023
Business‐type Activities
Governmental
Activities
Water and
Sewer Fund
Solid Waste
Fund
Total Enterprise
Funds
Internal Service
Funds
Assets
Current assets:
Cash and cash equivalents 3,892,165$ ‐$ 3,892,165$ 21,353,212$
Receivables, net 11,942,423 605,574 12,547,997 261,474
Inventories ‐ ‐ ‐ 629,460
Restricted cash and cash equivalents 111,606,012 ‐ 111,606,012 89,196
Total current assets 127,440,600 605,574 128,046,174 22,333,342
Noncurrent assets:
Capital assets:
Land and improvements 10,343,706 ‐ 10,343,706 ‐
Construction in progress 270,713,695 ‐ 270,713,695 ‐
Contractual rights to water supply 34,511,428 ‐ 34,511,428 ‐
Infrastructure 484,032,413 ‐ 484,032,413 ‐
Buildings 32,042,833 ‐ 32,042,833 ‐
Machinery and equipment 6,438,572 ‐ 6,438,572 10,892,429
Right‐to‐use software ‐ ‐ ‐ 11,016,172
Less accumulated
depreciation/amortization (229,232,459) ‐ (229,232,459) (8,329,525)
Total noncurrent assets 608,850,188 ‐ 608,850,188 13,579,076
Total Assets 736,290,788 605,574 736,896,362 35,912,418
Deferred Outflows of Resources
Deferred charge on refunding 715,803 ‐ 715,803 ‐
Pension related 2,780,418 ‐ 2,780,418 178,672
OPEB related 143,270 ‐ 143,270 9,207
Total Deferred Outflows of Resources 3,639,491$ ‐$ 3,639,491$ 187,879$
29 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2023
Business‐type Activities
Governmental
Activities
Water and
Sewer Fund
Solid Waste
Fund
Total Enterprise
Funds
Internal Service
Funds
Liabilities
Current liabilities:
Accounts payable 6,541,865$ 777,831$ 7,319,696$ 499,217$
Accrued liabilities 15,865,461 ‐ 15,865,461 846,411
Accrued interest 777,007 ‐ 777,007 150,598
Customer deposits 4,126,842 ‐ 4,126,842 2,738
Due to other funds 839,877 44,554 884,431 ‐
Current portion of noncurrent liabilities:
Compensated absences 249,354 ‐ 249,354 ‐
SBITA payable ‐ ‐ ‐ 2,477,440
Bonds payable 22,435,000 ‐ 22,435,000 ‐
Total current liabilities: 50,835,406 822,385 51,657,791 3,976,404
Noncurrent liabilities:
Compensated absences 581,828 ‐ 581,828 518,686
SBITA payable ‐ ‐ ‐ 3,892,207
Bonds payable 404,813,123 ‐ 404,813,123 ‐
Net pension liability 4,842,847 ‐ 4,842,847 311,205
Total OPEB liability 761,726 ‐ 761,726 48,949
Total noncurrent liabilities: 410,999,524 ‐ 410,999,524 4,771,047
Total Liabilities 461,834,930 822,385 462,657,315 8,747,451
Deferred Inflows of Resources
OPEB related 320,929 ‐ 320,929 20,623
Total Deferred Inflows of Resources 320,929 ‐ 320,929 20,623
Net Position
Net investment in capital assets 221,204,781 ‐ 221,204,781 7,209,429
Restricted 34,269,076 ‐ 34,269,076 ‐
Unassigned 22,300,563 (216,811) 22,083,752 20,122,794
Total Net Position 277,774,420$ (216,811)$ 277,557,609 27,332,223$
Adjustment to reflect the consolidation of
Internal service fund activities related to enterprise funds 6,463,828
Net position of Business‐type Activities 284,021,437$
30 City of Pearland, Texas 2023 ACFR
See notes to the financial statements. 31 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Year Ended September 30, 2023
Business‐type Activities
Governmental
Activities
Water and Sewer
Fund Solid Waste Fund
Total Enterprise
Funds
Internal Service
Funds
Operating Revenues
Charges for services:
Metered water sales 64,400,575$ ‐$ 64,400,575$ ‐$
Impact fees 2,835,298 ‐ 2,835,298 ‐
Solid waste fees ‐ 7,472,718 7,472,718 ‐
Other utility fees and charges 1,464,194 ‐ 1,464,194 ‐
Risk management ‐ ‐ ‐ 10,234,799
Equipment management ‐ ‐ ‐ 13,698,104
Sales and use taxes ‐ 3,553 3,553 ‐
Miscellaneous 347,698 ‐ 347,698 1,417,403
Total Operating Revenues 69,047,765 7,476,271 76,524,036 25,350,306
Operating Expenses
Personnel services 10,826,531 ‐ 10,826,531 4,362,529
Supplies and materials 8,404,965 ‐ 8,404,965 111,043
Buildings and grounds 69,202 ‐ 69,202 1,038,507
Repairs and Maintenance 1,392,634 ‐ 1,392,634 2,296,621
Contractual Services 10,870,244 7,555,660 18,425,904 14,730,023
Miscellaneous 100,915 ‐ 100,915 769,533
Capital Outlay (S/B ZERO!)‐ ‐ ‐ ‐
Depreciation and amortization 18,433,875 ‐ 18,433,875 5,793,738
Total Operating Expenses 50,098,366 7,555,660 57,654,026 29,101,994
Operating Income (Loss)18,949,399 (79,389) 18,870,010 (3,751,688)
Nonoperating Revenues (Expenses)
Investment earnings 6,788,327 95 6,788,422 776,886
Gain (loss) on disposal of property (5,183) ‐ (5,183) 96,105
Interest expense (7,425,306) ‐ (7,425,306) (205,156)
Total Nonoperating Revenues (Expenses)(642,162) 95 (642,067) 667,835
Income (Loss) Before Capital
Contributions and Transfers 18,307,237 (79,294) 18,227,943 (3,083,853)
Transfers in ‐ ‐ ‐ 5,931,491
Transfers out (7,142,355) ‐ (7,142,355) (30,799)
Change in Net Position 11,164,882 (79,294) 11,085,588 2,816,839
Net Position ‐ Beginning, as Restated 266,609,538 (137,517) 266,472,021 24,515,384
Net Position (Deficit) ‐ Ending 277,774,420$ (216,811)$ 277,557,609$ 27,332,223$
Reconciliation to government‐wide statement of activities
Change in net position of enterprise funds 11,085,588$
Adjustment for the net effect of the current year activity
between the internal service funds and enterprise funds 1,515,386
Change in Net Position of Business‐type Activities 12,600,974$
See notes to the financial statements. 32 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2023
Business‐type Activities
Governmental
Activities
Water and Sewer
Fund
Solid Waste
Fund
Total Enterprise
Funds
Internal Service
Funds
Cash Flows from Operating Activities
Receipts from customers and users 65,923,303$ 7,388,346$ 73,311,649$ ‐$
Receipts from interfund charges for services ‐ ‐ ‐ 23,932,903
Other receipts 347,698 3,553 351,251 1,223,754
Payments to employees for salaries and benefits (10,536,839) ‐ (10,536,839) (3,817,883)
Payments to suppliers and service providers (25,507,392) (7,465,375) (32,972,767) (18,992,354)
Net Cash Provided (Used) by Operating Activities 30,226,770 (73,476) 30,153,294 2,346,420
Cash Flows from Noncapital Financing Activities
Transfers from other funds ‐ ‐ ‐ 5,931,491
Transfers to other funds (7,142,355) ‐ (7,142,355) (30,799)
Net Cash Provided (Used) by Noncapital
Financing Activities (7,142,355) ‐ (7,142,355) 5,900,692
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets (64,319,452) ‐ (64,319,452) (2,797,128)
Proceeds from sale of capital assets ‐ 616,086
Principal paid on bonds (20,030,000) (20,030,000) ‐
Principal payments on SBITAs ‐ (4,181,604)
Interest paid on capital related debt (9,928,369) ‐ (9,928,369) (54,558)
Net cash Provided (Used) by Capital and
Related Financing Activities (94,277,821) ‐ (94,277,821) (6,417,204)
Cash Flows from Investing Activities
Interest on investments 6,788,327 95 6,788,422 776,886
Net Cash Provided (Used) by Investing Activities 6,788,327 95 6,788,422 776,886
Net Increase (Decrease) in Cash and Cash Equivalents (64,405,079) (73,381) (64,478,460) 2,606,794
Beginning Cash and Cash Equivalents 179,903,256 73,381 179,976,637 18,835,614
Ending Cash and Cash Equivalents 115,498,177$ ‐$ 115,498,177$ 21,442,408$
Reconciliation to the Statement of Net Position ‐
Proprietary Funds
Unrestricted cash and cash equivalents 3,892,165$ ‐$ 3,892,165$ 21,353,212$
Restricted cash and cash equivalents 111,606,012 ‐ 111,606,012 89,196
115,498,177$ ‐$ 115,498,177$ 21,442,408$
See notes to the financial statements. 33 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2023
Business‐type Activities
Governmental
Activities
Water and Sewer
Fund
Solid Waste
Fund
Total Enterprise
Funds
Internal Service
Funds
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss) 18,949,399$ (79,389)$ 18,870,010$ (3,751,688)$
Adjustment to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation and amortization expense 18,433,875 ‐ 18,433,875 5,793,738
(Increase) decrease in assets
Accounts receivable, net (2,776,764) (84,372) (2,861,136) (193,649)
Inventories ‐ ‐ ‐ (147,463)
Increase (decrease) in liabilities:
Accounts payable 2,311,709 42,335 2,354,044 123,882
Accrued liabilities (7,756,299) 3,396 (7,752,903) (22,980)
Customer deposits (64,719) ‐ (64,719) (66)
Due to other funds 839,877 44,554 884,431 ‐
Compensated absences (24,670) ‐ (24,670) 469,102
Net pension liability and related amounts 530,534 ‐ 530,534 41,971
Total OPEB liability and related amounts (216,172) ‐ (216,172) 33,573
Net Cash Provided (Used) by Operating Activities 30,226,770$ (73,476)$ 30,153,294$ 2,346,420$
Noncash Investing, Capital, and Financing Activities
Gain (loss) on disposition of capital assets (5,183)$ ‐$ (5,183)$ 96,105$
SBITAs issued ‐ ‐ ‐ (8,125,006)
SBITA assets obtained ‐ ‐ ‐ 8,171,170
34 City of Pearland, Texas 2023 ACFR
35 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
Note 1 – Summary of Significant Accounting Policies
The financial statements of the City of Pearland, Texas (the “City”) have been prepared in conformity with accounting
principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as
generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted
standard‐setting body for establishing governmental accounting and financial reporting principles. The City’s significant
accounting policies are described below.
A. Description of government‐wide financial statements
The government‐wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities
are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes,
intergovernmental revenues, and other nonexchange transactions, are reported separately from business‐type activities,
which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is
reported separately from certain legally separate component units, if applicable, for which the primary government is
financially accountable.
B. Reporting Entity
The City was incorporated in December 1959 and adopted a "Home Rule Charter" on 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.
The City is an independent political subdivision of the State of Texas governed by an elected mayor and seven‐member City
Council. The accompanying financial statements present the government and its component units, entities for which the
government is considered to be financially accountable. Blended component units are, in substance, part of the primary
government’s operations, even though they are legally separate entities. Thus, the following blended component units are
appropriately presented as funds of the primary government:
Blended Component Unit ‐ 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 percent). 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. PEDC is reported as a
governmental fund and does not issue separate financial statements.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
36 City of Pearland, Texas 2023 ACFR
Blended Component Unit ‐ Development Authority of Pearland (DAP) ‐ 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. DAP is reported as a governmental fund and does not
issue separate financial statements.
C. Basis of Presentation ‐ Government‐wide Financial Statements
While separate government‐wide and fund financial statements are presented, they are interrelated. The governmental
activities column incorporates data from governmental funds and internal service funds, while business‐type activities
incorporate data from the City’s enterprise funds. Separate financial statements are provided for governmental funds,
proprietary funds, and fiduciary funds, even though the latter are excluded from the government‐wide financial statements.
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 enterprise funds and governmental funds for various functions
of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various
functions concerned.
D. Basis of Presentation ‐ Fund Financial Statements
The fund financial statements provide information about the City’s funds, including its fiduciary funds and blended
component units. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented.
The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate
column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual
governmental and enterprise funds are reported as separate columns in the fund financial statements.
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 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 Pearland Economic Development Corporation, a blended component unit, is a special revenue fund used to account
for the revenues and expenditures associated with the half‐cent sales tax for economic development approved by the
voters in 1995. Use of the funds are governed by State Law.
The Tax Increment Reinvestment Zone #2 fund is a special revenue fund 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. 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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
37 City of Pearland, Texas 2023 ACFR
The Development Authority of Pearland fund, a blended component unit, is a special revenue fund used to account for
the financing of the development of the TIRZ #2.
The City reports the following major enterprise fund:
The Water and Sewer Fund is used to account for the operations that provide water and sewer utility 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 reports the following fund types:
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.
During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding
at year end are reported as due from/to other funds and advances to/from other funds. Further, certain activity occurs during
the year involving transfers of resources between funds reported at gross amounts as transfers in/out. While these balances
are reported in fund financial statements, certain eliminations are made in the preparation of the government‐wide financial
statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service
funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column.
Similarly, balances between the funds included in business‐type activities (i.e., the enterprise funds) are eliminated so that
only the net amount is included as internal balances in the business‐type activities column. Transfers between the funds
included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental
activities column. Similarly, balances between the funds included in business‐type activities are eliminated so that only the
net amount is included as transfers in the business‐type activities column.
E. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of
accounting. Measurement focus indicates the type of resources being measured such as current financial resources or
economic resources. The basis of accounting indicates the timing of recognition in the financial statements of various kinds
of transactions or events. The government‐wide, proprietary, and fiduciary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
The governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized when they have been earned and they are both measurable
and available. Revenues are considered to be available when they are 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. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service principal and interest expenditures on general long‐term debt,
including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments,
postemployment benefits and environmental obligations are recognized later based on specific accounting rules applicable
to each, generally when payment is due. General capital asset acquisitions, including entering into contracts giving the City
the right to use leased assets, are reported as expenditures in governmental funds. Issuance of long‐term debt and financing
through leases are reported as other financing sources.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
38 City of Pearland, Texas 2023 ACFR
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered
to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded
as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during
the period or within the availability period for this revenue source (within 60 days of year end). Expenditure‐driven grants
are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have
been met, and the amount is received during the period or within the availability period for this revenue source (within 60
days of year end). All other revenue items are considered to be measurable and available only when cash is received by the
City.
F. Budgetary Information
1. Budgetary Basis of Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund,
Pearland Economic Development Corporation, other special revenue funds (excluding Development Authority of
Pearland and TIRZ #2), and the debt service fund. The capital projects fund is appropriated on a project‐length basis. The
appropriated budget is prepared by fund, function, and department. The City’s department heads may make transfers
of appropriations within a department. Transfers of appropriations between departments require the approval of the
Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations)
is the department level. Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related
encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e.,
purchase orders, contracts, and commitments). While all appropriations and encumbrances technically lapse at year end,
valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year)
are reappropriated and become part of the subsequent year’s budget pursuant to state regulations, and the
encumbrances are automatically reestablished in the next year.
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash and Cash Equivalents
The City's cash and cash equivalents are 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.
2. Investments
Investments consist of Local Government Investment Pools, United States (U.S.) government agency securities, and
Certificates of Deposit with original maturities greater than three months from the date of acquisition. The City reports
all investments at fair value, except for investment pools. The City's investment pools are valued and reported at Net
Asset Value (NAV), which approximates fair value.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
39 City of Pearland, Texas 2023 ACFR
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 observable
inputs other those in Level 1; Level 3 inputs are unobservable inputs. The City's local government investment pools are
recorded at NAV as permitted by GASB Statement No. 79, Certain Investment Pools and Pool Participants, and are exempt
from reporting in the fair value hierarchy.
3. Inventory 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.
4. 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.
5. Interfund Balances
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.
6. Capital Assets
Capital assets are tangible and intangible assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business‐type activities
column in the government‐wide financial statements. Capital assets, except for infrastructure assets, are defined by the
City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year.
As the City constructs or acquires capital assets each period, they are capitalized and reported at historical cost (except
for intangible right‐to‐use lease/SBITA assets, the measurement of which is discussed in a note below). The reported
value excludes normal maintenance and repairs, which are amounts spent in relation to capital assets that do not
increase the asset’s capacity or efficiency or increase its estimated useful life. Donated capital assets are recorded at
acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with
equivalent service potential on the date of the donation. Intangible assets follow the same capitalization policies as
tangible capital assets and are reported with tangible assets in the appropriate capital asset class.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
40 City of Pearland, Texas 2023 ACFR
Land and construction in progress are not depreciated. The other tangible and intangible property, plant, equipment, the
right to use leased equipment, and infrastructure of the primary government are depreciated/amortized using the
straight‐line method over the following estimated useful lives:
Asset Years
Infrastructure 10‐50
Water and sewer system 30‐50
Buildings and improvements 10‐45
Machinery and equipment 3‐15
Furniture and fixtures 3‐10
Intangible Water Rights 25
Right‐to‐use lease assets Shorter of lease term or asset's useful life
Right‐to‐use SBITA Subscription term
7. 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.
8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources.
Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify
for reporting in this category:
i. Deferred charge on refunding reported in the government‐wide statement of net position. The deferred charge
on refunding resulted from the difference between 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.
ii. Deferred amounts related to pension and OPEB relate differences between estimated and actual investment
earnings, changes in actuarial assumptions, and other pension and OPEB related changes.
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources.
Deferred inflows of resources represent an acquisition of net assets 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 the following items that qualify for reporting
in this category:
i. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from property taxes, UHCL receivable, special assessments, economic development
agreements, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
ii. Deferred amounts related to leases and deferred amounts related to pension and OPEB are reported in the
government‐wide financial statements.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
41 City of Pearland, Texas 2023 ACFR
9. Net Position
For government‐wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of
resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three
components:
Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization
and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition,
construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of
resources that are attributable to the acquisition, construction, or improvement of those assets or related debt
are included in this component of net position.
Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources
related to those assets. Assets are reported as restricted when constraints are placed on asset use either by
external parties or by law through constitutional provision or enabling legislation.
Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and
deferred inflows of resources that does not meet the definition of the two preceding categories.
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.
10. Fund Balance
In governmental fund types, the difference between assets and deferred outflows of resources less liabilities and
deferred inflows of resources is called “fund balance.” The City’s governmental funds report the following categories of
fund balance, based on the nature of any limitations requiring the use of resources for specific purposes:
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 Chief
Financial Officer.
Unassigned – Amounts that are available for any purpose. Positive amounts are reported only in the General
Fund.
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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
42 City of Pearland, Texas 2023 ACFR
City Council has authorized the Chief Financial Officer 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 three 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 percent of the current year's budget appropriation for recurring operating expenses. The cash
equivalent operating reserve is derived by dividing the total cash equivalents balance by recurring operating
expenses.
Use of Fund Balance/Working Capital – Fund balance/working capital shall only be used for emergencies, non‐
recurring expenditures/expenses or major capital purchases that cannot be accommodated through current
year savings. Should such use reduce balances below the level established as the objective for that fund,
restoration recommendations will accompany the request/decision to utilize said balances.
Debt Service Fund Total Fund Balance – The City shall maintain the debt service fund balance at 10 percent 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.
Employee Benefits Fund and Health Claims 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.
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 7 percent of the total budget (General Fund) to be used in case
of unforeseen items of expenditure.
11. Leases and Subscription‐Based Information Technology Arrangements (SBITAs)
Lessee: The City is a lessee for a noncancellable right to use lease assets and subscription‐based software. The City
recognizes a lease/SBITA liability and an intangible right‐to‐use lease/SBITA asset in the government‐wide financial
statements. The City recognizes lease/SBITA liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease/SBITA, the City initially measures the liability at the present value of payments expected
to be made during the term. Subsequently, the liability is reduced by the principal portion of payments made. The asset
is initially measured as the initial amount of the liability, adjusted for payments made at or before the agreement’s
commencement date, plus certain initial direct costs. Subsequently, the asset is amortized on a straight‐line basis over
its useful life or subscription term.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
43 City of Pearland, Texas 2023 ACFR
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected
payments to present value, (2) lease/SBITA term, and (3) lease/SBITA payments.
The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by
the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount
rate.
The term includes the noncancellable period of the lease or subscription term. Payments included in the
measurement of the liability are composed of fixed payments and purchase option price that the City is
reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its leases/SBITAs and will remeasure
the assets and liabilities if certain changes occur that are expected to significantly affect the amount of the liabilities.
Lease/SBITA assets are reported with other capital assets and lease/SBITA liabilities are reported with long‐term debt on
the statement of net position.
Lessor: The City is a lessor for a noncancellable lease of a building. The City recognizes a lease receivable and a deferred
inflow of resources in the government‐wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of
lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease
receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred
inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease
receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of
the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the
lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the
amount of the lease receivable.
12. 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 1‐15 years of service,
20 days per year for service of 16‐19 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 one 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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
44 City of Pearland, Texas 2023 ACFR
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.
13. 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 GASB Statement No. 68, Accounting and
Financial Reporting for Pensions, as amended by GASB Statement No. 71.
14. Other Postemployment Benefits (OPEB) – Retiree Health Care
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.
15. Other Postemployment Benefits (OPEB) – TMRS Supplemental Death Benefits
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 from TMRS through a report prepared for the City by TMRS' consulting actuary, Gabriel Roeder Smith
& Company, in compliance with GASB Statement No. 75.
H. Revenues and Expenditures/Expenses
1. Program Revenues
Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided or fines imposed by a given function or segment, and (2) grants and
contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a
particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated
resources are reported as general revenues rather than as program revenues.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
45 City of Pearland, Texas 2023 ACFR
2. Property Taxes
Property taxes attach as an enforceable lien on real property and are levied as of July 1. The tax levy is divided into two
billings: the first billing (mailed on July 1) is an estimate of the current year’s levy based on the prior year’s taxes; the
second billing (mailed on January 1) reflects adjustments to the current year’s actual levy. The billings are considered
past due 30 days after the respective tax billing date, at which time the applicable property is subject to lien,
and penalties and interest are assessed.
3. Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the water and sewer fund, solid waste fund, and
internal service funds are charges to customers for sales and services. The water and sewer fund also recognizes as
operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system.
Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
I. 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.
J. New Accounting Standards
GASB Statement No. 94 Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements was issued in
March 2020 and is effective for periods beginning after June 15, 2022. This Statement addresses issues related to public‐
private and public‐public partnership arrangements (PPPs). The Statement also provides guidance for accounting and
financial reporting for availability payment arrangements (APAs). The requirements of this Statement are effective for
periods beginning after June 15, 2022. The City has evaluated the effects of this standard and has determined that it does not
impact the financial statements.
GASB Statement No. 96 Subscription‐Based Information Technology Arrangements (SBITA), was issued in May 2020 and was
effective for periods beginning after June 15, 2022. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in
a right‐to‐use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the
capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4)
requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards
established in Statement No. 87, Leases, as amended. As such the City has incorporated such SBITAs into its capital assets and
long‐term liabilities on both the face of the financial statements and the note disclosures.
GASB issued Statement No. 99, Omnibus 2022 was issued in April 2022. This Statement was issued to enhance comparability
in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues
that have been identified during implementation and application of certain GASB Statements and accounting and financial
reporting for financial guarantees. The requirements of this Statement are effective immediately upon issuance, for periods
beginning after June 15, 2022 and June 15, 2023, depending on the topical area.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
46 City of Pearland, Texas 2023 ACFR
Note 2 – Cash and Investments
The City's investment portfolio is managed in accordance with the Texas Public Funds Investment Act, as amended, and its
own Investment Policy. The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government
Code, regulates what types of investments can be made, requires written investment policies, mandates training
requirements of investment officers, requires internal management reports to be produced at least quarterly, and provides
for the selection of authorized broker‐dealers and investment managers.
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. As of September 30, 2022, the City's investment
portfolio contains certificates of deposit, government investment pools, and obligations of U.S. government agencies. Each
of the City's investments are in compliance with the PFIA.
In accordance with applicable statutes, the City has a depository contract with an area bank (depository) providing for interest
rates to be earned on deposited funds and for banking charges the City incurs for banking services received. The City may
place funds with the depository in interest and non‐interest‐bearing accounts. State law provides that collateral pledged as
security for bank deposits must have a fair value of not less than the amount of the deposits and must consist of: (1)
obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies;
(3) other obligations, the principal and interest on which are unconditionally guaranteed or insured by the State of Texas;
and/or (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as
to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its
equivalent. City policy requires the collateralization level to be at least 102 percent of fair value of principal and accrued
interest.
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, demand deposits with financial institutions, and short‐
term investments, which have maturities at purchase of less than three months, consisting mainly of certificates of deposits.
The restricted cash and investments are assets restricted for specific use. The restricted cash and investments include cash
on deposit with financial institutions. For better management of cash, the City pools the cash, based on the City's needs, into
either bank/sweep accounts, or in longer‐term investments in U.S. government securities. However, each fund's balance of
cash and investments is maintained in the books of the City. The City's investments primarily consist of government
investment pools. The City's investments in government pools are measured at net asset value. The investment pools do not
have any limitations or restrictions on withdrawals, such as notice periods or maximum transaction amounts, and do not
impose any liquidity or redemption gates.
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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
47 City of Pearland, Texas 2023 ACFR
Deposit and Investment Amounts
The following schedule shows the City's recorded cash and cash equivalents and investments at year‐end:
Amount
Percent of
Portfolio WAM
Cash and Cash Equivalents:
Demand depots (book value) 57,623,137$ 20.2% 1
Mutual Fund 53,520,622 18.7% 35
Investment Pools:
Texas CLASS 110,197,626 38.6% 49
TexSTAR 9,774,286 3.4% 30
LOGIC 42,188,096 14.8% 39
Total Investment Pools 162,160,008 56.8%
Total Cash and Cash Equivalents 273,303,767 95.7%
Investments:
Certificates of Deposit 1,527,288 0.5% 288
US Treasury Bills/Notes 10,875,529 3.8% 373
Total Investments 12,402,817 4.3%
Total Cash and Investments 285,706,584$ 100.0%48
At September 30, 2023, the City's demand deposits were covered federal depository insurance and pledged collateral held
by the City's agent in the City's name.
The Federal Agricultural Mortgage Corporation (FAMC) discount note is valued based on price data obtained from observed
transactions and market price quotations from broker dealers and/or pricing vendors. Certificates of deposit are stated at
amortized cost. 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:
Interest income 15,626,455$
Unrealized gain (loss) (256,653)
15,369,802$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
48 City of Pearland, Texas 2023 ACFR
The City's investments' fair value measurements are as follows at September 30, 2023.
Fair Value Measurements Using
Fair Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Certificates of Deposit 1,527,288$ $ ‐ $ 1,527,288 ‐$
US Treasury Bills/Notes 10,875,529 10,875,529 ‐ ‐
12,402,817$ 10,875,529$ 1,527,288$ ‐$
The City's investments in government pools include deposits in TexSTAR, Texas CLASS and LOGIC. These pools operate
similarly to money market funds and each share is equal in value to $1.00. The value of the pool is equal to the value of the
pool shares. The investments in government pools are measured at NAV and are exempt from reporting in the fair value
hierarchy.
TexSTAR was created in April 2002 pursuant to the Interlocal Cooperation Act of the State of Texas, chapter 791 of the Texas
Government Code and the Public Funds Investment Act, chapter 2256 of the Texas Government Code. TexSTAR policies
require that local government deposits be used to purchase investments authorized by the Texas Public Funds Investment
Act. The State Comptroller of Public Accounts exercises responsibility over TexSTAR. TexSTAR is administered by Hilltop
Securities, Inc. and J.P. Morgan Investment Management. J.P. Morgan Investment Management, Inc. provides investment
advisory services.
The Texas Cooperative Liquid Assets Securities System Trust (Texas CLASS) was created as a local government investment
pool (LGIP) pursuant to Section 2256.016 of the Public Funds Investment Act, Texas Government Code (PFIA). Per state code,
entities may pool any of their funds, or funds under their control, to preserve principal, maintain the liquidity of the funds,
and maximize yield. The Texas CLASS Trust Agreement is an agreement of indefinite term regarding the investment,
reinvestment, and withdrawal of local government funds. The parties to the Trust Agreement are Texas local government
entities that choose to participate in the Trust (the Participants), Public Trust Advisors, LLC (Public Trust) as Program
Administrator, and Wells Fargo Bank Texas, N.A. as Custodian. The investment pools do not have any limitations or restrictions
on withdrawals, such as notice periods or maximum transaction amounts, and do not impose any liquidity or redemption
gates.
LOGIC is a local government investment pool organized under the authority of the Interlocal Cooperation Act, chapter 791,
of the Texas Government Code, and the Public Funds Investment Act, chapter 2256, of the Texas Government Code. LOGIC's
investment objectives are to seek preservation of principal, liquidity, and current income through investment in a diversified
portfolio of short‐term marketable securities. Since September 2005, J.P. Morgan Investment Management Inc. (JPMIM) has
served as investment adviser to LOGIC. JPMIM is an SEC registered investment adviser and an affiliate of J.P Morgan Asset
Management (JPMAM), which is the marketing name for the asset management business of JPMorgan Chase & Co. Hilltop
Securities Inc. (Hilltop Securities) and JPMIM serve as co‐administrators to LOGIC and Hilltop Securities provides
administrative, participant support, and marketing services. Hilltop Securities is a registered broker dealer, member of
FINRA/SIPC, which provides financial advisory and investment banking services to governmental entities across the county.
JPMorgan Chase Bank N.A. provides custodial services.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
49 City of Pearland, Texas 2023 ACFR
Interest Rate Risk
The City's investment policy specifies a maximum weighted average maturity for the portfolio of 900 days or 30 months based
on the stated maturity date of the investments. When including cash investments, the weighted average maturity for the City
was 48 days as of September 30, 2023. To the extent possible, the City attempts to match investments with anticipated cash
flow requirements. The City does not directly invest in securities with a stated maturity date more than five years or 1,825
days from date of purchase. The settlement date is considered the date of purchase.
Concentration of Credit Risk
With the exception of U.S. Treasury Securities and interest‐bearing checking accounts that are fully collateralized, no more
than 75 percent of the City's total investment portfolio will be invested in a single security type. If the City elects to participate
in more than one investment pool, the total percent invested in all pools shall not exceed the maximum percent allowed. As
of September 30, 2023, the City's investment portfolio was in compliance with the City’s investment policy as it relates to
diversification and concentration of credit risk.
Credit Risk
The Federal Agricultural Mortgage Corporation discount note was rated AA+ by Standard & Poor's and Aaa by Moody's
Investors Service.
All credit ratings meet acceptable levels required by guidelines prescribed by both the PFIA and the City's investment policy.
A public fund investment pool must be continuously rated no lower than AAA or AAAm or no lower than investment grade
by at least one nationally recognized rating service and have a weighted average maturity no greater than 90 days.
Investments with minimum required ratings do not qualify as authorized investments during the period the investment does
not have the minimum rating. TexSTAR and Texas CLASS are both rated AAAm by S&P Global Ratings.
In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the Local Government
Investment Pools do not have any limitations and restrictions on withdrawals such as notice periods or maximum transaction
amounts. These pools do not impose any liquidity fees or redemption gates.
Restricted Assets
The Enterprise Funds have restricted certain cash and investments for customer deposits, reserve and emergency 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 15,362,814$
Customer deposits 4,126,842
Capital improvements (impact fees) 18,472,968
Unspent bond proceeds 73,643,388
Total 111,606,012$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
50 City of Pearland, Texas 2023 ACFR
Note 3 – Receivables
Receivables at September 30, 2023, consisted of the following for the governmental funds:
General Fund
Debt
Service Fund
Capital
Projects Fund
Pearland
Economic
Development
Corporation
Development
Authority of
Pearland
Non‐Major
Governmental
Funds Total
Receivables
Property taxes, including
penalties and interest 622,719$ 890,420$ ‐$ ‐$ ‐$ ‐$ 1,513,139$
Street assessments ‐ ‐ ‐ ‐ ‐ 1,284,935 1,284,935
Franchise taxes 1,393,483 ‐ ‐ ‐ ‐ 12,770 1,406,253
Financing lease (UHCL)‐ 3,827,028 ‐ ‐ ‐ ‐ 3,827,028
Sales and other taxes 5,106,747 ‐ ‐ 2,553,374 ‐ ‐ 7,660,121
Economic development
agreements ‐ ‐ 1,000,000 4,878,719 ‐ ‐ 5,878,719
Leases 1,952,950 ‐ ‐ ‐ ‐ ‐ 1,952,950
Intergovernmental ‐ ‐ 4,910,156 ‐ ‐ ‐ 4,910,156
Other 557,638 ‐ ‐ 17,463 4,121 1,300,941 1,880,163
Gross Receivables 9,633,537 4,717,448 5,910,156 7,449,556 4,121 2,598,646 30,313,464
Allowance for
uncollectibles (16,191) (23,151) ‐ ‐ ‐ ‐ (39,342)
Net receivable 9,617,346$ 4,694,297$ 5,910,156$ 7,449,556$ 4,121$ 2,598,646$ 30,274,122$
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 revenue, excluding lease‐related
amounts, and unearned revenue reported in the governmental funds were as follows:
Unearned Revenue: Amount
Parks and recreation department (deposits & prepayments) $ 106,507
Economic development agreements 43,919
ARPA grant 2,678,889
Total Unearned Revenue $ 2,829,315
Unavailable Revenue: Amount
Delinquent property taxes receivable $ 1,473,799
UHCL receivable 3,769,099
Street assessments 1,486,878
Economic development agreements 5,878,719
Intergovernmental 4,226,500
Total Unavailable Revenue $ 16,834,995
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
51 City of Pearland, Texas 2023 ACFR
Receivables at September 30, 2023, consisted of the following for the proprietary funds:
Governmental
Activities
Water and
Sewer Fund
Solid Waste
Fund Total
Internal Service
Fund
Receivables
Customer accounts:
Billed 7,128,142$ 865,664$ 7,993,806 261,474$
Unbilled 5,951,668 ‐ 5,951,668 ‐
Other 268,021 71,217 339,238 ‐
Allowance for
uncollectibles (1,405,408) (331,307) (1,736,715) ‐
11,942,423$ 605,574$ 12,547,997$ 261,474$
Business‐type Activities ‐ Enterprise Funds
City utility customers are billed on the basis of monthly cycle billings. At the end of the fiscal year, the City accrues estimated
unbilled revenues for water and sewer services and solid waste services provided before the period ended September 30, to
be billed after year‐end.
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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
52 City of Pearland, Texas 2023 ACFR
Note 4 – Capital Assets
A summary of changes in the City’s capital assets for the year ended September 30, 2023, is as follows:
Governmental Activities
Beginning
Balance, as
restated Increases Disposals
Transfers to
Depreciable
Assets Ending Balance
Governmental Activities
Capital Assets, not being Depreciated:
Land 40,610,789$ 2,433,771$ ‐$ 7,863,935$ 50,908,495$
Construction in progress 136,886,909 54,810,108 ‐ (82,369,915) 109,327,102
Total Capital Assets, not being
Depreciated 177,497,698 57,243,879 ‐ (74,505,980) 160,235,597
Capital Assets, being Depreciated:
Infrastructure 1,108,875,450 28,950 ‐ 58,133,021 1,167,037,421
Buildings and improvements 180,032,725 ‐ (6,253) 11,650,124 191,676,596
Machinery and equipment 31,075,170 3,099,232 (442,611) ‐ 33,731,791
Furniture and fixtures 30,822,370 81,727 ‐ 4,722,835 35,626,932
Right‐to‐use lease equipment 67,782 ‐ (54,550) ‐ 13,232
Right‐to‐use lease buildings 40,362 105,603 (40,362) ‐ 105,603
Right‐to‐use SBITA assets 2,845,005 8,171,167 ‐ ‐ 11,016,172
Total Other Capital Assets, being
Depreciated 1,353,758,864 11,486,679 (543,776) 74,505,980 1,439,207,747
Less Accumulated Depreciation for:
Infrastructure (539,196,360) (36,328,749) ‐ ‐ (575,525,109)
Buildings and improvements (55,401,201) (3,018,397) 6,253 ‐ (58,413,345)
Machinery and equipment (21,857,123) (2,883,123) 442,611 ‐ (24,297,635)
Furniture and fixtures (8,382,626) (1,503,298) ‐ ‐ (9,885,924)
Right‐to‐use lease equipment (44,433) (19,929) 54,550 ‐ (9,812)
Right‐to‐use lease buildings (19,908) (20,926) 40,362 ‐ (472)
Right‐to‐use SBITA assets ‐ (4,040,720) ‐ ‐ (4,040,720)
Total Accumulated Depreciation (624,901,651) (47,815,142) 543,776 ‐ (672,173,017)
Total Capital Assets being
depreciated, net 728,857,213 (36,328,463) ‐ 74,505,980 767,034,730
Governmental Activities Capital Assets, Net 906,354,911$ 20,915,416$ ‐$ ‐$ 927,270,327$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
53 City of Pearland, Texas 2023 ACFR
Business‐type Activities
Beginning
Balance, as
restated Increases Disposals
Transfers to
Depreciable
Assets Ending Balance
Business‐type Activities
Capital Assets, not being Depreciated:
Land 3,877,076$ ‐$ ‐$ 6,466,630$ 10,343,706$
Construction in progress 227,553,541 64,265,925 ‐ (21,105,771) 270,713,695
Total Capital Assets, not being Depreciated:231,430,617 64,265,925 ‐ (14,639,141) 281,057,401
Capital Assets, being Depreciated
Water and sewer system 470,442,506 ‐ ‐ 13,589,907 484,032,413
Buildings and improvements 32,042,833 ‐ ‐ ‐ 32,042,833
Machinery and equipment 5,254,852 48,385 (95,426) ‐ 5,207,811
Furniture and fixtures 153,048 28,479 ‐ 1,049,234 1,230,761
Contractual water rights 34,511,428 ‐ ‐ ‐ 34,511,428
Right‐to‐use lease equipment ‐ ‐ ‐ ‐ ‐
Right‐to‐use lease buildings ‐ ‐ ‐ ‐ ‐
Right‐to‐use SBITA assets ‐ ‐ ‐ ‐ ‐
Total Capital Assets, being Depreciated 542,404,667 76,864 (95,426) 14,639,141 557,025,246
Less Accumulated Depreciation:
Water and sewer system (175,602,850) (15,880,241) ‐ ‐ (191,483,091)
Buildings and improvements (10,680,032) (734,929) ‐ ‐ (11,414,961)
Machinery and equipment (4,765,016) (167,134) 66,906 ‐ (4,865,244)
Furniture and fixtures (141,394) (276,503) ‐ ‐ (417,897)
Contractual water rights (19,676,198) (1,375,068) ‐ ‐ (21,051,266)
Right‐to‐use lease equipment ‐ ‐ ‐ ‐ ‐
Right‐to‐use lease buildings ‐ ‐ ‐ ‐ ‐
Right‐to‐use SBITA assets ‐ ‐ ‐ ‐ ‐
Total Accumulated Depreciation (210,865,490) (18,433,875) 66,906 ‐ (229,232,459)
Total Capital Assets being
Depreciated, net 331,539,177 (18,357,011) (28,520) 14,639,141 327,792,787
Totals 562,969,794$ 45,908,914$ (28,520)$ ‐$ 608,850,188$
Depreciation was charged to programs as follows:
Governmental Activities
Depreciation/
Amortization Expense
General government 6,595,113$
Public safety 539,826
Public works 39,053,906
Community services 207,900
Parks and recreation 945,511
Economic development 472,886
Total Governmental Activities 47,815,142
Business‐type activities:
Water and sewer 18,433,875
Total Depreciation Expense, Primary Government 66,249,017$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
54 City of Pearland, Texas 2023 ACFR
The City had active construction projects as of September 30, 2023. The projects included various improvements to streets,
drainage and facilities 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 44,010,564$ 19,869,997$ 24,140,567$
Facilities 102,980,155 8,556,745 94,423,410
Parks and Recreation 46,779,615 4,551,964 42,227,651
Streets 227,700,383 76,348,396 151,351,987
Total Governmental Activities 421,470,717 109,327,102 312,143,615
Facilities 542,500 202,409 340,091
Water and Sewer Improvements 516,387,163 270,511,286 245,875,877
Total Business‐Type Activities 516,929,663 270,713,695 246,215,968
Total Primary Government 938,400,380$ 380,040,797$ 558,359,583$
Note 5 – Long‐term 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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
55 City of Pearland, Texas 2023 ACFR
Changes in Long‐term Liabilities
The following is a summary of changes in the City's total governmental long‐term liabilities for the year ended September 30,
2023.
Governmental Activities
Beginning
Balance,
as Restated Increases Decreases
Ending
Balance
Amounts Due
in One Year
Bonds Payable:
General obligation bonds 265,615,000$ ‐$ (19,525,000)$ 246,090,000$ 20,570,000$
General obligation bonds ‐
Private Placement ‐ 4,420,000 ‐ 4,420,000 820,000
Certificates of obligation 101,660,000 ‐ (11,710,000) 89,950,000 2,875,000
Sales tax revenue bonds 1,000,000 ‐ (250,000) 750,000 250,000
Tax increment revenue bonds 63,810,000 ‐ (8,400,000) 55,410,000 8,625,000
Tax increment revenue bonds ‐
Private placement ‐ 13,735,000 (1,550,000) 12,185,000 1,850,000
Unamortized premium/discount 36,212,515 ‐ (6,568,828) 29,643,687 ‐
Total Bonds Payable 468,297,515 18,155,000 (48,003,828) 438,448,687 34,990,000
Other Long‐Term Liabilities:
Leases 41,568 105,603 (38,248) 108,923 23,674
Financed purchases 130,839 ‐ (130,839) ‐ ‐
SBITAs 2,426,245 8,125,006 (4,181,604) 6,369,647 2,477,440
Compensated absences 9,134,082 667,168 ‐ 9,801,250 2,784,769
Total Governmental Activities
Long‐Term Liabilities 480,030,249$ 27,052,777$ (52,354,519)$ 454,728,507$ 40,275,883$
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. 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.
During the current fiscal year, the City issued the following bonds in the governmental activities:
Private Placement Permanent Improvement Refunding Bonds, Series 2022, in the amount of $4,420,000. The
proceeds were used to refund $3,165,000 of the Permanent Improvement and Refunding Bonds, Series 2014, and
$1,135,000 Permanent Improvement and Refunding Bonds, Series 2016A. The payment to escrow agent of
$4,376,057 exceeded the carrying value of the refunded bonds by $76,057, resulting in a current period expense of
$76,057. The transaction resulted in present value savings of $39,509.
Tax Increment Contract Revenue Bonds, Series 2022, in the amount of $13,735,000. The proceeds were used to
reimburse developers for projects for the Development Authority of Pearland in the amount of $13,551,000.
In addition, the City defeased $8,900,000 of Certificates of Obligation, Series 2019B. The carrying value of the defeased bonds
exceeded the payment of $9,992,788 resulting in a current period gain of $93,054. The purchase price of the escrowed
securities were equal to the present value of all principal and interest payments.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
56 City of Pearland, Texas 2023 ACFR
The following is a summary of changes in the City's total business‐type activities long‐term liabilities for the year ended
September 30, 2023.
Business‐type Activities
Beginning
Balance Additions Decreases
Ending
Balance
Amounts Due
Within One Year
Bonds Payable:
General obligation bonds 2,710,000$ ‐$ (330,000)$ 2,380,000$ 1,135,000$
Certificates of obligation 45,710,000 ‐ 45,710,000 2,405,000
Water and sewer revenue bonds 382,785,000 (19,700,000) 363,085,000 18,895,000
Unamortized premium/discount 18,575,144 ‐ (2,502,021) 16,073,123 ‐
Total Bonds Payable 449,780,144 ‐ (22,532,021) 427,248,123 22,435,000
Other Long‐Term Liabilities:
Compensated absences 855,852 ‐ (24,670) 831,182 249,354
Total Business‐type Activities
Long‐Term Liabilities 450,635,996$ ‐$ (22,556,691)$ 428,079,305$ 22,684,354$
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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
57 City of Pearland, Texas 2023 ACFR
The debt service requirements for the City’s bonds are as follows:
Governmental Activities
GO ‐ Private Placement
Fiscal General Obligation Private Placement Certificates of Obligation Sales Tax Revenue Bonds
Year Principal Interest Principal Interest Principal Interest Principal Interest
2024 20,570,000$ 10,421,275$ 820,000$ $144,360.00 2,875,000$ $3,859,532.00 250,000$ 17,700$
2025 21,325,000 9,409,937 850,000 114,300 2,905,000 3,755,232 250,000 11,800
2026 21,810,000 8,359,337 885,000 83,070 2,920,000 3,645,307 250,000 5,900
2027 22,670,000 7,275,712 915,000 50,670 2,945,000 3,529,232 ‐ ‐
2028 23,555,000 6,187,372 950,000 17,100 2,950,000 3,413,807 ‐ ‐
2029 ‐ 2033 92,855,000 17,041,491 ‐ ‐ 55,020,000 8,570,042 ‐ ‐
2034 ‐ 2038 31,810,000 5,076,378 ‐ ‐ 14,800,000 2,372,913 ‐ ‐
2039 ‐ 2043 11,495,000 782,325 ‐ ‐ 5,535,000 372,525 ‐ ‐
246,090,000$ 64,553,827$ 4,420,000$ 409,500$ 89,950,000$ 29,518,590$ 750,000$ 35,400$
Governmental Activities
Tax Increment Revenue Bonds Total
Fiscal Tax Increment Revenue Bonds Private Placement Governmental Activities
Year Principal Interest Principal Interest Principal Interest
2024 8,625,000$ 1,512,321$ 1,850,000$ 455,719$ 34,990,000$ 16,410,907$
2025 8,860,000 1,278,087 1,920,000 386,529 36,110,000 14,955,885
2026 9,100,000 1,037,024 1,990,000 314,721 36,955,000 13,445,359
2027 9,350,000 788,940 2,065,000 240,295 37,945,000 11,884,849
2028 9,605,000 533,537 2,140,000 163,064 39,200,000 10,314,880
2029 ‐ 2033 9,870,000 270,676 2,220,000 83,028 159,965,000 25,965,237
2034 ‐ 2038 ‐ ‐ ‐ ‐ 46,610,000 7,449,291
2039 ‐ 2043 ‐ ‐ ‐ ‐ 17,030,000 1,154,850
55,410,000$ 5,420,585$ 12,185,000$ 1,643,356$ 408,805,000$ 101,581,258$
Business‐type Activities
Total
Fiscal General Obligation Certificates of Obligation Revenue Bonds Business‐type Activities
Year Principal Interest Principal Interest Principal Interest Principal Interest
2024 1,135,000$ 90,625$ 2,405,000$ 2,165,200$ 18,895,000$ 6,975,156$ 22,435,000$ 9,230,981$
2025 1,245,000 31,125 2,410,000 2,044,950 19,165,000 6,607,433 22,820,000 8,683,508
2026 ‐ ‐ 2,405,000 1,924,450 19,660,000 6,210,526 22,065,000 8,134,976
2027 ‐ ‐ 2,405,000 1,804,200 19,980,000 5,717,370 22,385,000 7,521,570
2028 ‐ ‐ 2,405,000 1,683,950 19,250,000 5,203,648 21,655,000 6,887,598
2029 ‐ 2033 ‐ ‐ 12,025,000 6,616,000 91,060,000 18,598,110 103,085,000 25,214,110
2034 ‐ 2038 ‐ ‐ 12,030,000 3,609,250 69,470,000 9,808,426 81,500,000 13,417,676
2039 ‐ 2043 ‐ ‐ 9,625,000 962,800 49,265,000 5,119,438 58,890,000 6,082,238
2044 ‐ 2048 ‐ ‐ ‐ ‐ 40,895,000 2,446,370 40,895,000 2,446,370
2049 ‐ 2053 ‐ ‐ ‐ ‐ 15,445,000 387,326 15,445,000 387,326
2,380,000$ 121,750$ 45,710,000$ 20,810,800$ 363,085,000$ 67,073,803$ 411,175,000$ 88,006,353$
Total Primary Government
Principal Interest
2024 57,425,000$ 25,641,888$
2025 58,930,000 23,639,393
2026 59,020,000 21,580,335
2027 60,330,000 19,406,419
2028 60,855,000 17,202,478
2029 ‐ 2033 263,050,000 51,179,347
2034 ‐ 2038 128,110,000 20,866,967
2039 ‐ 2043 75,920,000 7,237,088
2044 ‐ 2048 40,895,000 2,446,370
2049 ‐ 2053 15,445,000 387,326
819,980,000$ 189,587,611$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
58 City of Pearland, Texas 2023 ACFR
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, 2023, the City
had $8,900,000 of previously refunded bonds outstanding or outstanding refunding escrows.
Leases
The City is under contract for noncancellable leases that convey control of the right to use assets. The lease liabilities
outstanding as of September 30, 2023, are as follows:
Terms Lease Liability Right‐to‐Use Asset
Governmental Activities
Start
Date
End
Date
Interest
Rate
Original
Amount
Outstanding
Balance
Asset
Value
Accumulated
Amortization
Net
Asset
Equipment:
Quadient Postage Meters 10/01/21 06/11/24 0.3280% 13,232$ 3,320$ 13,232$ (9,812)$ 3,420$
Total Equipment 13,232 3,320 13,232 (9,812) 3,420
Building:
Pearland Town Center Office Space
Rental ‐ 11200 Broadway Street 10/1/2023 9/30/2028 0.2480% 105,603 105,603 105,603 (472) 105,131$
Total Building 105,603 105,603 105,603 (472) 105,131
Totals 118,835$ 108,923$ 118,835$ (10,284)$ 108,551$
All amounts paid were previously included in the measurement of the lease liability and there were no other related outflows
of resources for the period such as variable payments or termination penalties. In addition, there were no commitments
incurred prior to commencement of any lease term and there were no impairment losses related to SBITA assets.
The future principal and interest lease payments as of September 30, 2023, were as follows:
Fiscal
Year Principal Interest Total
2024 23,674$ 153$ 23,827$
2025 20,293 211 20,504
2026 20,959 161 21,120
2027 21,644 109 21,753
2028 22,353 55 22,408
108,923$ 689$ 109,612$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
59 City of Pearland, Texas 2023 ACFR
Subscription‐Based Information Technology Arrangements (SBITAs)
The City is under contract for noncancellable SBITAs that convey control of the right to use software. The SBITA liabilities
outstanding as of September 30, 2023, are as follows:
Terms SBITA Liability Subscription Asset
Governmental Activities
Start
Date
End
Date
Interest
Rate
Original
Amount
Outstanding
Balance
Asset
Value
Accumulated
Amortization
Net
Asset
All Traffic Solutions ‐ Subscription 11/15/22 11/14/25 3.2380% 28,168$ 18,478$ 28,168$ (8,242)$ 19,926$
Appspace ‐ Content Management System 10/01/22 12/05/23 3.1440% 17,809 ‐ 17,809 (15,085) 2,724
Aurigo Masterworks Cloud ‐ Pro 12/06/22 12/05/23 3.1440% 1,832,884 308,682 1,863,509 (1,527,042) 336,467
Aurigo Software 10/01/22 10/05/27 3.3050% 865,202 684,792 865,202 (172,561) 692,641
Bluebeam Revu ‐ Software 10/01/22 06/21/24 3.2070% 41,706 ‐ 41,706 (24,178) 17,528
Cisco Duo 10/01/22 02/08/25 3.2070% 56,767 28,254 56,767 (24,099) 32,668
CityWorks PLL Software 10/01/22 09/07/24 3.2070% 32,718 ‐ 410,675 (212,113) 198,562
ClearGov Subscription 05/01/23 09/30/26 2.3630% 155,788 136,729 169,828 (20,711) 149,117
CS ‐ PD ‐ Software ‐ 4 10/01/22 09/19/24 3.2070% 32,718 ‐ 32,718 (16,613) 16,105
Education Information Technology 10/01/22 01/25/24 3.1440%‐ ‐ ‐ ‐ ‐
ESRI ‐ ArcGIS GeoEvent Server 10/01/22 08/29/24 3.2070% 87,923 ‐ 87,923 (45,940) 41,983
Fleetio Manage ‐ Enterprise 10/03/22 10/02/25 3.2380% 117,758 77,248 119,257 (39,532) 79,725
Freshworks ‐ Subscription 10/01/22 04/14/24 3.2070% 22,084 ‐ 22,084 (14,350) 7,734
GIS Software 10/01/22 01/09/25 3.2070% 176,630 87,688 176,630 (77,640) 98,990
GrayKey License 10/16/22 10/15/24 3.2070% 38,648 10,653 38,648 (18,519) 20,129
InformaCast ‐ Software 10/01/22 11/14/23 3.1440% 7,920 ‐ 7,920 (7,057) 863
Insight Software 1 10/01/22 09/30/24 3.2070% 4,000 1,968 4,000 (2,000) 2,000
Insight Software 2 10/01/22 08/03/24 3.2070% 13,771 ‐ 13,771 (7,477) 6,294
Ion Wave ‐ Strategic Sourcing Software 10/01/22 11/30/25 3.2380% 59,127 38,996 59,127 (18,672) 40,455
Microsoft Enterprise 10/05/22 10/31/25 3.2380% 1,636,485 1,207,605 1,636,485 (526,753) 1,109,732
Microsoft Software 11/01/22 10/31/25 3.2380% 1,246,707 817,827 1,246,707 (380,938) 865,769
NetCloud Mobile Essentials 02/22/23 02/21/26 2.6560% 140,691 92,559 140,691 (28,529) 112,162
New World ERP and Incode Software ‐ 1 04/01/23 03/31/25 2.4700% 316,677 161,020 316,677 (79,169) 237,508
New World ERP and Incode Software ‐ 2 10/01/22 09/30/24 3.2070% 139,563 68,680 139,563 (69,781) 69,782
Open Counter ‐ Software 10/01/22 10/31/25 3.2380% 116,461 76,604 136,261 (44,193) 92,068
Opticom Cloud Platform 01/11/23 01/10/33 2.8530% 1,000,570 887,380 1,000,570 (72,263) 928,307
PerfectMind Software 10/01/22 10/31/26 3.2690% 81,406 63,558 81,406 (19,936) 61,470
PLL ELA Premium 02/01/23 03/31/26 2.6560% 809,753 634,634 809,753 (170,474) 639,279
Sequel ‐ Cisco Flex Software 10/01/22 06/27/24 3.2070% 62,711 ‐ 62,711 (36,006) 26,705
Sequel ‐ Infoblox DDI 09/20/23 09/19/26 2.9010% 49,892 32,783 49,892 (508) 49,384
Traffic Suite ‐ Subscription 11/25/22 11/24/24 3.2070% 5,907 2,907 5,907 (2,510) 3,397
Traffic Suite Subscription Licenses 10/01/22 08/17/24 3.2070% 12,341 ‐ 12,341 (6,563) 5,778
VMware software 10/01/22 01/27/25 3.2070% 282,422 140,431 282,422 (121,472) 160,950
Watch Guard Software 10/21/22 10/20/27 3.3050% 745,078 552,459 745,078 (140,737) 604,341
WaterSmart Platform 10/01/22 06/30/26 3.2690% 312,966 237,712 333,966 (89,057) 244,909
Total Lease Liability 10,551,251$ 6,369,647$ 11,016,172$ (4,040,720)$ 6,975,452$
All amounts paid were previously included in the measurement of the subscription liability and there were no other related
outflows of resources for the period such as variable payments or termination penalties. In addition, there were no
commitments incurred prior to commencement of any SBITA term and there were no impairment losses related to SBITA
assets.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
60 City of Pearland, Texas 2023 ACFR
The future principal and interest SBITA payments as of September 30, 2023, were as follows:
Fiscal
Year Principal Interest Total
2024 2,477,440$ 186,207$ 2,663,647$
2025 1,750,231 119,897 1,870,128
2026 1,201,251 65,349 1,266,600
2027 420,169 28,306 448,475
2028 98,338 14,852 113,190
2029 ‐ 2033 422,218 30,540 452,758
6,369,647$ 445,151$ 6,814,798$
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, 2023, is as follows:
Transfers In Transfers Out
General Fund $ ‐ $ (2,036,975)
Debt Service Fund 3,552,442 ‐
Capital Projects Fund 14,829,526 ‐
Pearland Economic Development Corporation ‐ (16,746,286)
Tax Increment Reinvestment Zone #2 ‐ (23,364,808)
Development Authority of Pearland 23,364,808 ‐
Non‐major Governmental Funds 5,511,660 (3,868,704)
Water and Sewer Fund ‐ (7,142,355)
Internal Service Fund 5,931,491 (30,799)
$ 53,189,927 $ (53,189,927)
A summary of interfund balances, the purpose of which is to make payments for expenditures/expenses from a pooled
operating bank account in the general fund, as of September 30, 2023 is as follows:
Due From
Other Funds
Due To
Other Funds
General Fund $ 11,985,492 $ ‐
Capital Projects Fund ‐ 8,567,129
Pearland Economic Development Corporation ‐ 338,715
Non‐major Governmental Funds ‐ 2,195,217
Water and Sewer Fund ‐ 839,877
Solid Waste Fund ‐ 44,554
$ 11,985,492 $ 11,985,492
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
61 City of Pearland, Texas 2023 ACFR
Note 8 ‐ Leases Receivable
Governmental Activities
Lessor activity for the current year and future maturities for the City's Governmental Activities for the current year is as
follows:
Beginning
Balance Additions Reductions
Ending
Balance
Lease Receivable
Cell tower leases:
T‐Mobile 841,000$ ‐$ (27,514)$ 813,486$
Clear wireless 929,445 ‐ (25,780) 903,665
Natatorium ‐ 357,684 (121,885) 235,799
Total Lease Receivable 1,770,445$ 357,684$ (175,179)$ 1,952,950$
Beginning
Balance Additions Reductions
Ending
Balance
Deferred Inflow of Resources
Cell tower leases:
T‐Mobile 829,322$ ‐$ (41,455)$ 787,867$
Clear wireless 917,471 ‐ (40,686) 876,785
Natatorium ‐ 357,684 (25,170) 332,514
Total Deferred Inflow of Resources 1,746,793$ 357,684$ (107,311)$ 1,997,166$
Fiscal
Year
Principal
Payments
Interest
Payments
Total
Payments
2024 174,311$ 16,270$ 190,581$
2025 179,430 13,208 192,638
2026 62,688 10,069 72,757
2027 65,272 9,668 74,940
2028 67,938 9,250 77,188
2029 ‐ 2033 382,739 39,357 422,096
2034 ‐ 2038 463,262 26,062 489,324
2039 ‐ 2043 495,382 9,975 505,357
2044 61,928 284 62,212
1,952,950$ 134,143$ 2,087,093$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
62 City of Pearland, Texas 2023 ACFR
Note 9 – Fund Balance/Net Position
Fund Balance Deficits
The following funds reported deficit fund balances as of September 30, 2023:
Nonmajor Governmental Funds:
CDBG ‐ Disaster Recovery Fund 307,770$
Disaster Recovery Fund 68,402
Hazard Mitigation Fund 83,694
Coronavirus Relief Fund 1,412,395
Truancy Prevention and Diversion 4,328
U of H Fund 27,299
Enterprise Funds:
Solid Waste Fund 216,811
Note 10 – 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 MissionSquare Retirement is the plan
record keeper. 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 City does not contribute to the plan. The third‐party
administrator handles all funds in the plan and makes investment decisions and disburses funds to employees in accordance
with plan provisions.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
63 City of Pearland, Texas 2023 ACFR
Note 11 – Employee Retirement System
Texas Municipal Retirement System
Plan Description and Provisions
The City participates as one of 901 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
annual comprehensive financial report 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 percent 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 percent of the employee's accumulated contributions. A summary of plan provisions
for the City are as follows:
Employee deposit rate 7.00%
Matching ratio (City to employee) 2 to 1
Years required for vesting 5
Service requirement eligibility
(expressed as age/years of service) 60/5, 0/20
Updated service credit 100% Repeating,
Transfers
Annuity increase (to retirees) 70% of CPI Repeating
At the December 31, 2022, valuation and measurement date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 327
Inactive employees entitled to but not yet receiving benefits 440
Active employees 788
Total 1,555
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
64 City of Pearland, Texas 2023 ACFR
Contributions
The contribution rates for employees in TMRS are either 5 percent, 6 percent, or 7 percent of employee gross earnings, and
the City matching percentages are either 100 percent, 150 percent, or 200 percent, 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 percent of their annual gross earnings during the fiscal year. For fiscal
year 2023, the City's contribution rate was 12.94 percent for the months in 2022 and 13.05 percent for the months in 2023.
The City's contributions to TMRS for the year ended September 30, 2023, were $8,669,461 and were equal to the required
contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2022, 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, 2022, actuarial valuation was determined using the following actuarial
assumptions:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 23 years (longest amortization ladder)
Asset Valuation Method 10 Year smoothed market; 12% soft corridor
Inflation 2.50%
Salary Increases 3.50% to 11.50% 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 2019 valuation pursuant to an
experience study of the period 2014‐2018.
Mortality Postretirement: 2019 Municipal Retirees of Texas Mortality Tables.
The rates are projected on a fully generational basis with scale UMP.
Preretirement: PUB (10) mortality tables, with the Public Safety table
used for males and the General Employee table used for females. The
rates are projected on a fully generational basis with scale UMP.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
65 City of Pearland, Texas 2023 ACFR
Actuarial Assumptions
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 real rates of return for each major asset class are summarized in the
following table.
Asset Class Target Allocation
Long‐Term Expected
Real Rate of Return
(Arithmetic)
U.S. equities
Global public equity 35.0% 7.55%
Core fixed income 6.0% 2.00%
Non‐core fixed income 20.0% 5.68%
Other public and private markets 12.0% 7.22%
Real estate 12.0% 6.85%
Hedge funds 5.0% 5.35%
Private equity 10.0% 10.00%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75 percent. The projection of cash flows used to
determine the discount rate assumed that employee 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 active and inactive employees. 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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
66 City of Pearland, Texas 2023 ACFR
Changes in the Net Pension Liability
TPL (a)
Plan Fiduciary
Net Position (b)
NPL
(a) ‐ (b)
Balance at January 1, 2021 209,577,398$ 197,846,251$ 11,731,147$
Changes for the year:
Service cost 10,527,935 ‐ 10,527,935
Interest 14,287,566 ‐ 14,287,566
Difference between expected and
actual experience 3,479,388 ‐ 3,479,388
Contributions ‐ employer ‐ 8,056,797 (8,056,797)
Contributions ‐ employee ‐ 4,358,391 (4,358,391)
Net investment income ‐ (14,471,304) 14,471,304
Benefit payments, including refunds,
of employee contributions (6,347,455) (6,347,455) ‐
Administrative expense ‐ (124,973) 124,973
Other ‐ 149,131 (149,131)
Net changes 21,947,434 (8,379,413) 30,326,847
Balance at December 31, 2022 231,524,832$ 189,466,838$ 42,057,994$
The following presents the net pension liability of the City, calculated using the discount rate of 6.75 percent, 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
percent) or 1‐percentage‐point higher (7.75 percent) than the current rate.
1% Decrease to
5.75%
Current Single Rate
Assumption 6.75%
1% Increase to
7.75%
Net Pension Liability (Asset) 82,127,257$ 42,057,994$ 9,967,101$
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 at tmrs.com.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2023, the City recognized pension expense of $11,998,406.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
67 City of Pearland, Texas 2023 ACFR
At September 30, 2023, the City reported deferred outflows and inflows of resources related to pensions from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between actuarial assumptions
and actual experience 4,690,793$ ‐$
Changes in actuarial assumptions 248,203 ‐
Differences between projected and actual
pension plan investment earnings 13,075,033 ‐
Contributions subsequent to the
measurement date 6,132,679 ‐
Total 24,146,708$ ‐$
Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will
be recognized as a reduction of the net pension liability in the fiscal year subsequent to 2023. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Fiscal Year
2024 2,430,380$
2025 4,528,354
2026 4,593,205
2027 6,400,572
2028 61,518
Total 18,014,029$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
68 City of Pearland, Texas 2023 ACFR
Note 12 – Other Post‐Employment Benefits (OPEB)
The City offers two other postemployment benefit (OPEB) plans; the Retiree Health Care Plan and the TMRS‐Supplemental
Death Benefits Fund as discussed below. OPEB items for the two plans are as follows:
TMRS ‐
Supplemental
Death Benefits
Fund
Retiree Health
Care Plan Total
Total OBEB Liability 1,484,791$ 5,130,466$ 6,615,257$
Deferred Outflows of Resources 447,113 797,122 1,244,235
Deferred Inflows of Resources 907,511 1,879,615 2,787,126
OPEB expense 138,190 446,825 585,015
TMRS Supplemental Death Benefits Fund
Benefit Plan Description
The City also participates in the single‐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. No assets are accumulated in a trust that meets the criteria of paragraph 4 of GASB Statement No 75.
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 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, 2022 was as follows:
Inactive employees currently receiving benefits 246
Inactive employees entitled to but not yet receiving benefits 132
Active Employees 788
1,166
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 0.20 percent 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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
69 City of Pearland, Texas 2023 ACFR
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 1.84 percent based
on the 20‐Year Municipal GO AA Index rate published by bondbuyer.com is used as of the measurement date of December
31, 2022.
Actuarial Assumptions
The City's total OPEB liability was measured at December 31, 2022, and was determined by an actuarial valuation as of that
date using the following actuarial assumptions.
Valuation Date: September 30, 2022
Methods and Assumptions:
Inflation 2.50%
Salary Increases 3.5% to 11.5%, including inflation
Discount rate* 4.05%
Retirees' share of benefit related costs $0
Administrative expenses All administrative expenses are paid through the
Pension Trust and accounted for under reporting
requirements under GASB Statement No. 68.
Mortality rates ‐ services retirees 2019 Municipal Retirees of Texas Mortality Tables.
The rates are projected on a fully generational basis
with Scale UMP.
Mortality rates ‐ disabled retirees 2019 Municipal Retirees of Texas Mortality Tables
with a 4 year set‐forward for males and a 3 year set‐
forward for females. In addition, a 3.5% and 3.0%
minimum mortality rate will be applied to reflect the
impairment for younger members who become
disabled for males and females, respectively. The rates
are projected on a fully generational basis by Scale UMP
to account for future mortality improvements subject to
the floor.
* The discount rate was based on the Fidelity Index’s “20‐Year Municipal GO AA Index”
rate as of December 31, 2022.
Other Information
The actuarial assumptions used in the December 31, 2021, valuation were based on the results of an actuarial experience
study for the period December 31, 2014 to December 31, 2018.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
70 City of Pearland, Texas 2023 ACFR
Changes in the Total OPEB Liability
Balance at January 1, 2021 2,158,946$
Changes for the year:
Service cost 149,421
Interest on total OPEB liability 40,870
Differences between expected and
actual experience 30,912
Change of assumptions (870,455)
Benefit payments (24,903)
Balance at December 31, 2022 1,484,791$
Total OPEB
Liability
Sensitivity Analysis
The following presents the total OPEB liability of the employer, calculated using the discount rate of 4.05 percent, 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 or 1‐
percentage‐point higher 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.
Total OPEB Liability 1,813,893$ 1,484,791$ 1,232,179$
1% Decrease in
Discount
Rate (3.05%)
Current
Discount
Rate (4.05%)
1% Increase in
Discount
Rate (5.05%)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Activity
For the year ended September 30, 2023, the City recognized OPEB expense of $138,190. As of September 30, 2023, the City
reported deferred outflows of resources related to OPEB from the following sources:
Difference between expected and actual experience 70,038$ (136,585)$
Changes of assumptions 353,252 (770,926)
Contributions subsequent to measurement date 23,823 ‐
Total 447,113$ (907,511)$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
71 City of Pearland, Texas 2023 ACFR
The 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 fiscal year subsequent to fiscal year 2023. Amounts currently
reported as deferred outflows and deferred inflows of resources related to OPEB, excluding contributions subsequent to the
measurement date, will be recognized in OPEB expense as follows.
Fiscal Year
2024 (52,101)$
2025 (64,648)
2026 (72,521)
2027 (86,831)
2028 (120,408)
Thereafter (87,712)
Total (484,221)$
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 percent 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, 2021, the actuarial valuation date, the following employees were covered
by the benefit terms:
Inactive employees currently receiving benefits 11
Inactive employees entitled to but not yet receiving benefits ‐
Active Employees 723
Total 734
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
72 City of Pearland, Texas 2023 ACFR
Actuarial Assumptions and Methods
The City's total OPEB liability was measured as of September 30, 2023, and was determined by an actuarial valuation as of
October 1, 2021. 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, 2021
Methods and Assumptions:
Measurement Date September 20, 2023
Actuarial Cost Method Entry Age Normal as a level percentage of salary
Amortization period (in years)The expected remaining service of all employees
eligible for or currently receiving OPEB through the
OPEB plan.
Amortization method Straight line amortization
Discount Rate* 4.77% per annum
Salary Increases* 3.00% per annum
Healthcare cost trends rates*6.80% initial medical trend rate for retirees
decreasing to an ultimate rate of 4.14% in the year
2042
* An embedded inflation rate of 2.50% is included in these rates.
Discount Rate
The discount rate of 4.77 percent 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.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
73 City of Pearland, Texas 2023 ACFR
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:
Balance at October 1, 2022 4,884,940$
Changes for the year:
Service cost 304,981
Interest on total OPEB liability 241,690
Change of assumptions (55,038)
Benefit payments (246,107)
Balance at September 30, 2023 5,130,466$
Total OPEB
Liability
Assumption Changes. The discount rate increased from 4.77 percent to 4.87 percent.
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 4.87 percent, as well as what the
plan's total OPEB liability would be if it were calculated using a discount rate that is 1‐percentage‐point lower or 1‐percentage‐
point higher than the current rate:
Total OPEB Liability 5,853,212$ 5,130,466$ 4,748,650$
1% Increase in
Discount Rate
(5.87%)
Current Discount
Rate Assumption
(4.87%)
1% Decrease in
Discount Rate
(3.87%)%
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 1‐percentage‐point lower or 1‐percentage‐point higher
than the current healthcare cost trend rate:
1% Decrease
(5.8%)
Current
Healthcare Cost
Trend Rates
Assumption
(6.8%)
1% Increase
(7.8%)
Total OPEB Liability 4,378,808$ 5,130,466$ 6,107,597$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
74 City of Pearland, Texas 2023 ACFR
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2023, the City recognized OPEB expense of $446,825. At September 30, 2023, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience 72,909$ (41,379)$
Changes assumptions 724,213 (1,838,236)
797,122$ (1,879,615)$
Amounts currently reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB
expense as follows.
Fiscal Year
2024 (99,845)$
2025 (157,683)
2026 (172,134)
2027 (172,134)
2028 (172,134)
Thereafter (308,563)
Total (1,082,493)$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
75 City of Pearland, Texas 2023 ACFR
Note 13 – Fund Balance Classifications
In accordance with the guidance in GASB No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City
has classified ending fund balance based on the availability of funds for expenditure on programs and services. As of
September 30, 2023, the following balances were restricted, committed, or assigned in the governmental fund balances:
Fund Balance as
of September 30,
2023
Restricted
Debt service 3,369,997$
Capital projects 34,709,307
Tourism 7,732,367
Public safety 668,452
Community development 3,181,050
Grants 167,563
Economic development 57,293,573
Total Restricted Fund Balance 107,122,309$
Committed
Capital projects 9,278,805$
Total Committed Fund Balance 9,278,805$
Assigned
Public works 729,289$
Grants 244,536
Total Assigned Fund Balance 973,825$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
76 City of Pearland, Texas 2023 ACFR
Note 14 – Commitments and Contingencies
Litigation and Other Contingencies
The City was involved in various lawsuits and arbitration proceedings at September 30, 2023. 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 the City. The following are the current incentives:
Original Amount Prior Years Current Year
Outstanding
Balance
Adient Medical 40,000$ 10,000$ ‐$ 30,000$
Base Pair 2017 60,000 45,000 ‐ 15,000
Coastal Swim 54,200 ‐ ‐ 54,200
Endress+Hauser 525,000 301,000 126,000 98,000
ESE Partners 66,500 ‐ 44,575 21,925
Graham Ventures 638,000 ‐ 99,000 539,000
H‐Town HealthCare 70,000 35,000 7,000 28,000
Keystone 189,000 ‐ ‐ 189,000
KS Management‐Grant 2,663,000 2,071,230 295,880 295,890
Lonza Phase 3 750,000 ‐ 516,000 234,000
Multalloy 350,000 210,000 ‐ 140,000
Ref‐Chem 880,000 ‐ ‐ 880,000
Syzygy 565,000 ‐ 25,000 540,000
Tool Flo 1,152,000 748,000 ‐ 404,000
Wilmar 116,000 76,000 ‐ 40,000
8,118,700$ 3,496,230$ 1,113,455$ 3,509,015$
Amounts Paid
Lower Kirby Urban Center Master Plan
One of the strategies of the Pearland Prosperity Strategic Plan is 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).
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
77 City of Pearland, Texas 2023 ACFR
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, 2023 of $3,374,014 from the Pearland Municipal Management District #1 and $2,504,705 from
the Lower Kirby Pearland Management District.
Capital
Projects Fund
Pearland Economic
Development
Corporation
Pearland Municipal Management District #1
Detention Pond Acquisition ‐$ 539,528$
Detention Analysis ‐ 34,276
Detention Phasing Plan ‐ 4,992
LK PER Phase 1 ‐ 43,717
TxDOT Ditch Acquisition ‐ 128,508
West Conveyance Pond ‐ 154,279
South Spectrum PER ‐ 86,124
South Spectrum West 1,000,000 1,228,377
LK Regional Detention Property Acquisition ‐ 154,213
Total Pearland Municipal Management District #1 1,000,000 2,374,014
Lower Kirby Pearland Management District
LK Park Improvements ‐ 1,000,000
LK Regional Detention Acquisition PH 2 ‐ 1,504,705
Total Lower Kirby Pearland Management District ‐ 2,504,705
Total LFA Recievables 1,000,000$ 4,878,719$
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 one Chapter 380 agreement in effect during the current fiscal year with Kelsey‐Seybold. 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
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 percent of the sales tax remitted by Kelsey and its
vendors. The agreements with the City and the PEDC require Kelsey to maintain a minimum of 600 jobs to be in place as an
eligibility factor. The City and the PEDC have paid $699,087 in sales tax incentives over the life of the agreement and $62,237
for fiscal year 2023.
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
78 City of Pearland, Texas 2023 ACFR
Note 15 – 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 the end of
fiscal year 2023, the City believed the amounts paid on Workers' Compensation would not change significantly from the
amounts recorded.
The City uses the Property Liability Insurance Internal Service 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. The fund accounts
for the annual premiums and accounts for insurance recovery funds on eligible claims.
The City uses the Health Claims Fund, a medical self‐insurance fund, to account for and finance the City's employee health
insurance medical claims. The fund accounts for employee, City, retiree and COBRA contributions, claims and administrative
fees.
Changes in the balance of claims liabilities as reported in the Health Claims Fund (an Internal Service Fund) during the current
and past two years are as follows:
Year Ended September 30,
2021 2022 2023
Beginning Liability 499,228$ 588,613$ 527,892$
Claims incurred 8,007,351 8,337,574 7,864,240
Claims payments (7,917,966) (8,398,295) (8,029,606)
Ending Liability 588,613$ 527,892$ 362,526$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
79 City of Pearland, Texas 2023 ACFR
Note 16 – Financing Lease
The City has a 20‐year agreement with the University of Houston Clear Lake (UHCL), which commenced in July 2010. Under
the agreement, the City issued certificates of obligation to construct a facility to be used by and ultimately transferred to
UHCL, with UHCL supporting most of the related debt service payments on the certificates of obligation. The agreement
provides that UHCL pay the City for debt service and operating costs through March 1, 2029, when the bond matures and the
property transfers to UHCL.
The payments related to debt service to be received coincide with debt service payments the City is required to make on the
certificates of obligations that mature on March 1, 2029. At September 30, 2023, the future minimum debt service payments
to be received under the agreement are as follows:
Year Ending September 30, Payment
2024 716,401$
2025 695,169
2026 669,142
2027 651,309
2028‐2029 1,811,528
4,543,549$
Note 17 – Restatements
The beginning balance of fund balance and net position, as applicable, of the governmental activities was restated due to the
following:
General
Fund
Capital
Projects
Fund
Pearland
Economic
Development
Corporation
Nonmajor
Governmental
Funds
Motor Pool
Fund
Information
Technology
Fund
Government‐
wide
Reconciliation
Total
Governmental
Activities
Governmental Activities
Record lease receivable at fund level 898,641$ ‐$ ‐$ ‐$ ‐$ ‐$ (898,641)$ ‐$
Record lease related deferred
inflows at fund level (712,667) ‐ ‐ ‐ ‐ ‐ 712,667 ‐
Correct terms for lease receivable (162,322) ‐ ‐ ‐ ‐ ‐ ‐ (162,322)
Subtotal 23,652 ‐ ‐ ‐ ‐ ‐ (185,974) (162,322)
To correct transfers posted
incorrectly in previous year ‐ ‐ ‐ ‐ 587,294 ‐ (587,294) ‐
To correct pooled cash posted
incorrectly in previous year ‐ ‐ ‐ ‐ (1,057,349) ‐ 1,110,842 53,493
Subtotal ‐ ‐ ‐ ‐ (470,055) ‐ 523,548 53,493
Reverse duplicate recording of
revenue recognition for
ARPA funding (1,000,000) ‐ ‐ ‐ ‐ ‐ ‐ (1,000,000)
GASB 96 assets ‐ ‐ ‐ ‐ ‐ 2,845,005 ‐ 2,845,005
GASB 96 liabilities ‐ ‐ ‐ ‐ ‐ (2,426,245) ‐ (2,426,245)
Record unavailable revenue for
grant/development receivables ‐ (7,296,625) ‐ ‐ ‐ ‐ ‐ (7,296,625)
Correct grant receivables ‐ ‐ 38,333 (90,463) ‐ ‐ ‐ (52,130)
Correct capital assets ‐ ‐ ‐ ‐ ‐ ‐ (1,882,274) (1,882,274)
Total restatement (976,348) (7,296,625) 38,333 (90,463) (470,055) 418,760 (1,544,700) (9,921,098)
Beginning Balance 34,657,543 77,302,382 39,708,717 8,707,164 20,017,035 ‐ 411,124,117 619,796,652
Beginning Balance, as Restated 33,681,195$ 70,005,757$ 39,747,050$ 8,616,701$ 19,546,980$ 418,760$ 409,579,417$ 609,875,554$
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
80 City of Pearland, Texas 2023 ACFR
The beginning balance of net position of the enterprise funds and business‐type activities was restated due to the following:
Water and Sewer
Fund
Business‐type Activities
Correct capital assets 2,470,813$
Total restatement 2,470,813
Beginning Balance 264,138,725
Beginning Balance, as Restated 266,609,538$
Lastly, the State Court Costs Fund was a custodial fund in the previous fiscal year. This fund had $0 in net position at
September 30, 2022 and was closed during fiscal year 2023. Any remaining funds are reported as deposits/liabilities in the
general fund.
Note 18 – Subsequent Events
The following events occurred subsequent to September 30, 2023:
On October 27, 2023, Moody’s Investors Services downgraded the City’s General Obligation debt to “A2” (negative
outlook) from “Aa2” and downgraded the water and sewer system revenue debt to “A3” (negative outlook) from
“Aa3”.
On November 1, 2023, the City issued Series 2023 Permanent Improvement Bonds of $8,235,000.
On November 9, 2023, the City issued the following bonds:
o Series 2023A Certificates of Obligation of $10,075,000
o Series 2023B Certificates of Obligation of $9,390,000
o Series 2023C Certificates of Obligation of $54,835,000
On May 1, 2024, the City defeased $3,080,000 of Series 2019B Certificates of Obligation
On May 1, 2024, the City defeased $7,290,000 of Series 2020B Certificates of Obligation
On May 28, 2024, Fitch Ratings downgraded the City’s Water and Sewer System revenue debt to “A” (negative
outlook) from “A+” (stable outlook).
81 City of Pearland, Texas 2023 ACFR
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
82 City of Pearland, Texas 2023 ACFR
83 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Property taxes 37,025,506$ 31,456,290$ 31,193,438$ (262,852)$ 29,937,664$
Sales and use taxes 30,119,451 30,925,000 30,592,388 (332,612) 28,930,889
Franchise fees 6,737,279 6,883,139 7,178,462 295,323 6,622,237
Licenses and permits 4,656,527 3,543,088 3,419,601 (123,487) 4,612,554
Fines and forfeitures 1,977,043 2,010,508 1,764,925 (245,583) 1,989,062
Charges for services 20,799,806 19,950,090 20,090,621 140,531 22,257,316
Investment earnings 506,532 1,570,186 1,449,623 (120,563) 98,435
Intergovernmental ‐ ‐ ‐ ‐ 4,548,225
Other 542,619 799,729 828,550 28,821 603,797
Total Revenues 102,364,763 97,138,030 96,517,608 (620,422) 99,600,179
Expenditures
Current:
General government 9,663,317 9,976,327 9,226,863 749,464 14,545,343
Public safety 64,167,537 64,504,114 63,895,113 609,001 58,350,556
Public works 11,731,412 11,831,851 10,093,441 1,738,410 12,479,013
Community services 5,446,283 5,224,975 4,709,377 515,598 4,585,041
Parks and recreation 8,233,149 8,246,545 7,743,360 503,185 6,588,930
Debt Service:
Principal ‐ 121,680 148,633 (26,953) 179,299
Interest and other charges ‐ 3,030 3,027 3 7,543
Capital outlay 928,030 1,271,911 1,020,858 251,053 769,296
Total Expenditures 100,169,728 101,180,433 96,840,672 4,339,761 97,505,021
Excess (Deficiency) of Revenues
Over Expenditures 2,195,035 (4,042,403) (323,064) 3,719,339 2,095,158
Other Financing Sources (Uses)
Transfers in 6,947,699 8,402,361 ‐ (8,402,361) 5,197,799
Transfers out (10,542,150) (11,422,336) (2,036,975) 9,385,361 (5,159,815)
Sale of general capital assets 3,000 3,000 2,428 (572) ‐
Total Other Financing Sources (Uses)(3,591,451) (3,016,975) (2,034,547) 982,428 37,984
Net change in Fund Balances (1,396,416) (7,059,378) (2,357,611) 4,701,767 2,133,142
Fund Balances ‐ Beginning,
as Restated 33,681,195 33,681,195 33,681,195 ‐ 32,524,401
Fund Balances (Deficit) ‐ Ending 32,284,779$ 26,621,817$ 31,323,584$ 4,701,767$ 34,657,543$
84 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
PEARLAND ECONOMIC DEVELOPMENT CORPORATION
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Sales and use taxes 13,989,302$ 15,248,339$ 15,078,283$ (170,056)$ 14,250,278$
Investment earnings 18,554 1,588,349 1,506,308 (82,041) 224,376
Intergovernmental 12,000 12,000 12,000 ‐ 12,000
Other 6,000 543,000 547,825 4,825 1,214,079
Total Revenues 14,025,856 17,391,688 17,144,416 (247,272) 15,700,733
Expenditures
Current:
Economic development 5,004,366 5,490,565 4,576,659 913,906 3,644,501
Debt Service:
Principal 250,000 250,000 250,000 ‐ 250,000
Interest and other charges 23,600 23,600 23,600 ‐ 29,500
Capital outlay 6,261,000 950,000 651,619 298,381 10,308,907
Total Expenditures 11,538,966 6,714,165 5,501,878 1,212,287 14,232,908
Excess (Deficiency) of Revenues
Over Expenditures 2,486,890 10,677,523 11,642,538 965,015 1,467,825
Other Financing Sources (Uses)
Transfers in 1,300,000 ‐ ‐ ‐ ‐
Transfers out (15,780,353) (18,815,257) (16,746,286) 2,068,971 (190,709)
Sale of general capital assets ‐ ‐ ‐ ‐ 1,154,819
Total Other Financing Sources (Uses)(14,480,353) (18,815,257) (16,746,286) 2,068,971 964,110
Net change in Fund Balances (11,993,463) (8,137,734) (5,103,748) 3,033,986 2,431,935
Fund Balances ‐ Beginning,
as Restated 39,747,050 39,747,050 39,747,050 ‐ 37,276,782
Fund Balances (Deficit) ‐ Ending 27,753,587$ 31,609,316$ 34,643,302$ 3,033,986$ 39,708,717$
85 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY BUDGET INFORMATION
For the Year Ended September 30, 2023
Budgetary Compliance
The City has complied with all material budget requirements for the year ended September 30, 2023.
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 the end of the fiscal year. Project length budgets are
adopted for the Capital Project Funds. The City, for management control, approves a financial plan for the Enterprise Fund.
The City does not legally adopt an annual appropriated budget for the Development Authority of Pearland or TIRZ #2.
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 Chief Financial Officer 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 and 90 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.
86 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Texas Municipal Retirement System Last Nine Measurement Years Measurement Year2014 2015 2016 2017 2018 2019 2020 2021 2022Total Pension LiabilityService cost 5,118,873$ 6,035,636$ 6,756,543$ 7,548,267$ 7,869,363$ 8,361,735$ 9,324,466$ 9,811,113$ 10,527,935$ Interest 7,010,813 7,679,417 8,166,924 9,064,733 9,914,570 10,784,493 11,845,518 12,984,066 14,287,566 Difference between expected and actual experience 241,450 846,833 1,159,738 33,887 41,404 249,817 847,255 2,320,691 3,479,388 Change in assumptions ‐ (304,820) ‐ ‐ ‐ 952,323 ‐ ‐ ‐ Benefit payments, including refunds of employee contributions (2,729,973) (3,808,062) (2,875,256) (3,481,143) (4,953,354) (5,414,199) (4,807,485) (5,978,894) (6,347,455) Net Change in Total Pension Liability9,641,163 10,449,004 13,207,949 13,165,744 12,871,983 14,934,169 17,209,754 19,136,976 21,947,434 Total Pension Liability ‐ Beginning98,960,025 108,601,188 119,050,823 132,258,772 145,424,516 158,296,499 173,230,668 190,440,422 209,577,398 Total Pension Liability ‐ Ending (a)108,601,188$ 119,050,192$ 132,258,772$ 145,424,516$ 158,296,499$ 173,230,668$ 190,440,422$ 209,577,398$ 231,524,832$ Plan Fiduciary Net Position:Contributions ‐ employer 4,339,785$ 4,786,602$ 5,253,253$ 5,991,467$ 6,225,163$ 6,543,589$ 7,258,507$ 7,623,084$ 8,056,797$ Contributions ‐ employee 2,355,095 2,498,961 2,749,756 3,081,580 3,216,353 3,439,022 3,866,781 4,073,416 4,358,391 Net investment income 4,766,828 135,758 6,458,752 14,836,941 (3,818,135) 19,805,631 11,569,310 22,200,809 (14,471,304) Benefit payments, including refunds of employee contributions (2,729,973) (3,808,062) (2,875,256) (3,481,143) (4,953,354) (5,414,199) (4,807,485) (5,978,894) (6,347,455) Administrative expense (49,756) (82,673) (72,899) (76,869) (73,737) (111,780) (74,766) (102,560) (124,973) Other (4,091) (4,082) (3,927) (3,896) (3,853) (3,359) (2,917) 702 149,131 Net Change in Plan Fiduciary Net Position8,677,888 3,526,504 11,509,679 20,348,080 592,437 24,258,904 17,809,430 27,816,557 (8,379,413) Plan Fiduciary Net Position ‐ Beginning83,306,773 91,984,661 95,511,165 107,020,843 127,368,923 127,961,360 152,220,264 170,029,694 197,846,251 Plan Fiduciary Net Position ‐ Ending (b)91,984,661 95,511,165 107,020,844 127,368,923 127,961,360 152,220,264 170,029,694 197,846,251 189,466,838 Net Pension Liability ‐ Ending (a) ‐ (b)16,616,527$ 23,539,027$ 25,237,928$ 18,055,593$ 30,335,139$ 21,010,404$ 20,410,728$ 11,731,147$ 42,057,994$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability84.70% 80.23% 80.92% 87.58% 80.84% 87.87% 89.28% 94.40% 81.83%Covered Employee Payroll 33,615,923$ 35,545,557$ 39,282,225$ 44,013,221$ 45,939,075$ 49,128,879$ 55,239,728$ 58,191,657$ 62,258,636$ Net Pension Liability as a Percentage of Covered Payroll49.43% 66.22% 64.25% 41.02% 66.03% 42.77% 36.95% 20.16% 67.55% Notes to the Required Supplementary Information (a) Amounts presented are for each measurement year, which end the preceding December 31 of the City's fiscal year‐end. (b) Ten years of data should be presented in this schedule, but data was unavailable prior to 2014.
87 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS SCHEDULE OF CONTRIBUTIONS Texas Municipal Retirement System Last Ten Fiscal Years 2019 2020 2021 2022 2023Actuarially determined contribution 6,461,150$ 6,818,604$ 7,545,831$ 7,989,951$ 8,669,461$ Contribution in relation of the actuarially determined contribution 6,461,150 6,818,604 7,545,831 7,989,951 8,669,461 Contribution deficiency (excess)‐ ‐ ‐ ‐ ‐ Covered payroll 48,297,918$ 51,414,583$ 57,237,508$ 61,538,157$ 65,580,842$ Contributions as a percentage of covered payroll 13.38% 13.26% 13.18% 12.98% 13.22%2014 2015 2016 2017 2018Actuarially determined contribution 4,311,811$ 4,600,419$ 5,295,359$ 5,924,405$ 6,072,762$ Contribution in relation of the actuarially determined contribution 4,311,811 4,600,419 5,295,359 5,924,405 6,072,762 Contribution deficiency (excess)‐ ‐ ‐ ‐ ‐ Covered payroll 30,580,987$ 34,650,598$ 39,566,838$ 43,703,166$ 44,772,623$ Contributions as a percentage of covered payroll 14.10% 13.28% 13.38% 13.56% 13.56%Fiscal YearFiscal Year
88 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS NOTES TO REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION For the Year Ended September 30, 2023 Methods and Assumptions Used to Determine Contribution Rates: Valuation Date:Notes Actuarial determined contribution rates are calculated as ofDecember 31 and become effective in January 13 months later.Methods and Assumptions Used to Determine Contribution Rates:Actuarial Cost Method Entry Age NormalAmortization Method Level Percentage of Payroll, ClosedRemaining Amortization Period 23 years (longest amortization ladder)Asset Valuation Method 10 Year smoothed market; 12% soft corridorInflation 2.50%Salary Increases 3.50% to 11.50% including inflationInvestment Rate of Return 6.75%Retirement Age Experience‐based table of rates that are specific to the City's plan ofbenefits. Last updated for the 2019 valuation pursuant to anexperience study of the period 2014‐2018.Mortality Postretirement: 2019 Municipal Retirees of Texas Mortality Tables.The rates are projected on a fully generational basis with scale UMP.Preretirement: PUB (10) mortality tables, with the Public Safetytable used for males and the General Employee table used forfemales. The rates are projected on a fully generational basis withscale UMP.Other Information:Notes: There were no benefit changes during the year.
89 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS Texas Municipal Retirement System Supplemental Death Benefits Fund Last Six Measurement Years Measurement Year2017 2018 2019 2020 2021 2022Total OPEB LiabilityService cost 66,020$ 82,690$ 73,693$ 110,479$ 139,660$ 149,421$ Interest 39,025 41,463 52,362 44,073 40,441 40,870 Difference between expected and actual experience ‐ 143,594 (224,466) (27,031) (35,262) 30,912 Changes of assumptions 111,349 (99,775) 276,531 291,685 73,519 (870,455) Benefit payments, including refunds of employee contributions (4,401) (4,594) (4,913) (5,524) (23,277) (24,903) Net Change in Total OPEB Liability 211,993 163,378 173,207 413,682 195,081 (674,155) Total OPEB Liability ‐ Beginning1,001,605 1,213,598 1,376,976 1,550,183 1,963,865 2,158,946 Total OPEB Liability ‐ Ending1,213,598$ 1,376,976$ 1,550,183$ 1,963,865$ 2,158,946$ 1,484,791$ Covered‐Employee Payroll 44,013,221$ 45,939,075$ 49,128,879$ 55,239,728$ 58,191,657$ 62,258,636$ Total OPEB Liability as a Percentage of Covered‐Employee Payroll2.76% 3.00% 3.16% 3.56% 3.71% 2.38% 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. 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.
90 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS City Of Pearland Retirement Health Care Plan Last Six Measurement Years Measurement Year2017 2018 2019 2020 2021 2022Total OPEB LiabilityService cost 456,161$ 295,552$ 364,519$ 515,331$ 531,977$ 304,981$ Interest 240,852 157,119 167,755 140,612 169,734 241,690 Changes of benefit terms (2,314,150) ‐ ‐ ‐ ‐ ‐ Difference between expected and actual experience 361,831 ‐ (74,479) ‐ 28,290 ‐ Changes of assumptions 43,043 101,145 1,240,492 (203,273) (2,206,085) (55,038) Benefit payments, including refunds of employee contributions (127,339) (66,167) (38,350) (39,277) (127,324) (246,107) Net change in total OPEB liability (1,339,602) 487,649 1,659,937 413,393 (1,603,408) 245,526 Total OPEB Liability ‐ Beginning5,266,971 3,927,369 4,415,018 6,074,955 6,488,348 4,884,940 Total OPEB Liability ‐ Ending3,927,369$ 4,415,018$ 6,074,955$ 6,488,348$ 4,884,940$ 5,130,466$ Covered‐Employee Payroll 44,772,623$ 48,297,918$ 51,067,300$ 54,267,466$ 62,799,942$ 63,986,647$ Total OPEB Liability as a Percentage of Covered‐Employee Payroll8.77% 9.14% 11.90% 11.96% 7.78% 8.02% 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. 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.
91 City of Pearland, Texas 2023 ACFR
OTHER SUPPLEMENTARY INFORMATION
92 City of Pearland, Texas 2023 ACFR
93 City of Pearland, Texas 2023 ACFR
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
94 City of Pearland, Texas 2023 ACFR
95 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
Hotel/Motel Occupancy Tax
A fund created to account for hotel/motel occupancy tax revenue.
Municipal Court Security
A fund created to account for the receipt and expenditure of revenues from court fines for court security.
City Wide Donation
A fund created to account for miscellaneous donations for all City departments except parks.
Court Technology
This fund is used to account for the receipt and expenditure of revenues from court fines for court technology.
Street Assessment
A fund created to account for the revenue and expenditure of street assessments as approved by City Council for a
designated street(s).
Park Donations
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.
Tree Trust
Tree Trust Fund Ordinance 772 established to protect healthy trees, preserve the natural ecological environment and
aesthetic qualities of the City, and to protect and increase the value of residential and commercial properties within the
City. This fund is used to account for tree trust donations from developers who cannot mitigate for trees removed
during development; the fee is determined by a tree survey, based on how many caliper inches are mitigated.
Parks Financial Assistance Donations
The Financial Assistance Program, funded by the Forever Parks Foundation, assists individuals who are financially
unable to participate in programs provided by the Parks & Recreation department.
Police State Seizure
A fund created to account for state seizure funds which are used solely for law enforcement purposes.
Police Federal Seizure
A fund created to account for federal seizure funds which are used solely for law enforcement purposes.
Community Safety Fund
The Community Safety grant was implemented in FY22 for Pearland communities to apply for funds to assist with
neighborhood safety. There are no planned expenses for FY4.
Parks & Recreation Development
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.
96 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
Drainage Maintenance Fund
The drainage fund was initiated in Fiscal Year 2023 as the City proposed to develop a more program‐based approach to
drainage maintenance. The City of Pearland develops, maintains, and operates a drainage system that facilitates the
collection and movement of stormwater runoff throughout the community and into receiving streams. The City
currently has inventoried and maintains 322 miles of enclosed storm sewer, 145 miles of open ditch, 12,237 inlets and
179 detention sites.
Grant Fund
To account for all revenues and expenditures associated with federal, state and local grants, except CDBG.
CDBG Grant Fund
The Community Development Block Grant Fund is funded through the U.S. Department of Housing and Urban
Development (HUD) for use in providing programs, services and local infrastructure improvements that benefit low‐and
moderate‐income families.
CDBG ‐ Disaster Recovery Fund
The Texas General Land Office administers the State's funding from the U.S. Department of Housing & Urban
Development (HUD) for the purpose of Community Development Block Grant ‐Disaster Recovery (CDBG‐DR) funding;
specifically, Hurricane Harvey federal disaster no. DR‐TX‐4332.
Disaster Recovery Fund
The Disaster Recovery Fund is specifically designed to account for various expenditures associated with major, federally
declared catastrophes that may be the subject of FEMA Public Assistance, or some other federal and/or State grant that
covers eligible costs involving the City’s of local disaster response/recovery.
Hazard Mitigation Fund
The Texas Division of Emergency Management (TDEM) and the Texas Water Development Board (TWDB) separately
administer various types of hazard and flood mitigation assistance to localities with post‐disaster recovery needs;
specifically, buyouts of flood‐damaged residential property, elevation of flood‐damaged homes, generators for public
safety and emergency management facilities, and other eligible mitigation investments. The City of Pearland is
repetitively impacted by hurricanes, tropical storms and other severe weather events that produce damages to private
and public property via high winds, wind‐driven rain, torrential rain, flooding, and other harmful meteorological
conditions.
Coronavirus Relief Fund
The City of Pearland was a recipient of a direct allocation of Coronavirus Aid, Relief and Economic Security (CARES) Act
funding for COVID‐19 preparedness, response, prevention and recovery, issued by the State of Texas ‐Division of
Emergency Management (TDEM) for the Brazoria County portion of the City. This allocation of funds was based on the
U.S. Treasury method of distribution outlined in the CARES Act ‐$55 per capita for the applicable population within the
jurisdiction. For the Brazoria County portion of population within the City of Pearland city limits, this amounted to
$6,374,005 for the 2019 Census Bureau 115,891 population.
97 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
ARPA Fund
After the expiration of the 116th Congress' Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, the
117th Congress passed additional Coronavirus recovery stimulus measures in the form of the American Rescue Plan Act
(ARPA) in 2021. In addition to the expenditure allowances provided in the CARES Act, ARPA provides eligible
jurisdictions with the ability to engage in economic recovery efforts involving the use of these funds for water and
wastewater treatment projects, broadband infrastructure, as well as public entity economic recovery from COVID‐19
revenue losses. The City of Pearland received $11,888,971 in ARPA State & Local Fiscal Recovery Funds (SLFRF) in two
equal payments, the first of which was made in June of 2021 in the amount of $5,944,486, with the second payment of
the remaining balance of the award being made in FY 2022.Funds may be used the same as allowable with the CARES
Act, in addition to being able to cover revenue losses from COVID‐19, water/wastewater facility improvements, and
broadband infrastructure. All funds must be obligated for expenditures by December 31, 2024 and fully expended by
December 31, 2026.
Opioid Settlement
To account for all revenues and expenditures associated with the Opioid Settlement funds.
Traffic Impact Improvement
A fund created to account for resources and expenditures from traffic impact analysis.
Truancy Prevention and Diversion
A fund created to account for receipt and expenditure of revenues from court fines for juvenile case manager.
Municipal Jury Fund
Effective January 1, 2020, Senate Bill 346 created the Local Consolidated Fee total $14 of which $0.10 is allocated to the
Local Municipal Jury Fund. Money allocated under Section 134.101, 134.102, or 134.103 to the county or municipal jury
fund maintained in the county or municipal treasury, as applicable, and as required by Section 134.151 may be used by
a county or a municipality only to fund juror reimbursements and otherwise finance jury services.
Municipal Channel (PEG) Fund
A fund created to account for the revenues and expenditures associated with the purchase of equipment for public‐
access television broadcasting under rules set forth by the Federal Communications Commission (FCC).
U of H Fund
A fund created to account for lease revenues and the operating expenditures related to the University of Houston Clear
Lake‐Pearland Campus built by the City and leased to the University of Houston Clear Lake and the Pearland Economic
Development Corporation.
Regional Detention Fund
The Regional Detention Fund accounts for regional detention development.
Infrastructure Reinvestment Fund
A fund used to account for the repair and maintenance of streets and sidewalks.
98 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Hotel/Motel
Occupancy Tax
Municipal Court
Security
City Wide
Donation
Court
Technology
7,390,651$ 59,579$ 225,421$ 6,184$
412,445 ‐ ‐ ‐
11,286 ‐ ‐ ‐
7,814,382$ 59,579$ 225,421$ 6,184$
9,579$ ‐$ 140$ 47$
61,150 1,045 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
70,729 1,045 140 47
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
11,286 ‐ ‐ ‐
7,732,367 58,534 225,281 6,137
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
7,743,653 58,534 225,281 6,137
7,814,382$ 59,579$ 225,421$ 6,184$
99 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Street
Assessment Park Donations Tree Trust
Parks Financial
Assistance
Donations
52$ 95,195$ 1,429,004$ 2,863$
1,486,878 131 ‐ ‐
‐ ‐ ‐ ‐
1,486,930$ 95,326$ 1,429,004$ 2,863$
‐$ ‐$ 33,700$ ‐$
‐ 10,000 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 10,000 33,700 ‐
1,486,878 ‐ ‐ ‐
1,486,878 ‐ ‐ ‐
‐ ‐ ‐ ‐
52 85,326 1,395,304 2,863
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
52 85,326 1,395,304 2,863
1,486,930$ 95,326$ 1,429,004$ 2,863$
100 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 3 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Police State
Seizure
Police Federal
Seizure
Community
Safety Fund
Parks &
Recreation
Development
181,311$ 211,456$ 225,070$ 592,327$
3,707 ‐ ‐ ‐
‐ ‐ ‐ ‐
185,018$ 211,456$ 225,070$ 592,327$
2,719$ 17,586$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
2,719 17,586 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
182,299 193,870 225,070 592,327
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
182,299 193,870 225,070 592,327
185,018$ 211,456$ 225,070$ 592,327$
101 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 4 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Sidewalk Fund
Drainage
Maintenance
Fund Grant Fund
CDBG Grant
Fund
66,065$ 490,892$ ‐$ ‐$
‐ ‐ 486,014 196,701
‐ ‐ ‐ ‐
66,065$ 490,892$ 486,014$ 196,701$
‐$ 536$ ‐$ 11,050$
‐ 34,130 30,888 12,279
‐ ‐ 210,590 110,581
‐ ‐ ‐ ‐
‐ 34,666 241,478 133,910
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ 62,791
‐ ‐ ‐ ‐
66,065 456,226 244,536 ‐
‐ ‐ ‐ ‐
66,065 456,226 244,536 62,791
66,065$ 490,892$ 486,014$ 196,701$
102 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 5 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
CDBG ‐ Disaster
Recovery Fund
Disaster
Recovery Fund
Hazard
Mitigation Fund
Coronavirus
Relief Fund
‐$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐$ ‐$ ‐$ ‐$
‐$ ‐$ ‐$ ‐$
433 ‐ 433 ‐
307,337 68,402 83,261 1,412,395
‐ ‐ ‐ ‐
307,770 68,402 83,694 1,412,395
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
(307,770) (68,402) (83,694) (1,412,395)
(307,770) (68,402) (83,694) (1,412,395)
‐$ ‐$ ‐$ ‐$
103 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 6 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
ARPA Fund
Opioid
Settlement
Traffic Impact
Improvement
Truancy
Prevention and
Diversion
2,681,055$ 104,772$ 340,320$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
2,681,055$ 104,772$ 340,320$ ‐$
‐$ ‐$ ‐$ 100$
2,166 ‐ ‐ 1,577
‐ ‐ ‐ 2,651
2,678,889 ‐ ‐ ‐
2,681,055 ‐ ‐ 4,328
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 104,772 340,320 ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ (4,328)
‐ 104,772 340,320 (4,328)
2,681,055$ 104,772$ 340,320$ ‐$
104 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 7 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Municipal Jury
Fund
Municipal
Channel (PEG)
Fund U of H Fund
Regional
Detention Fund
2,542$ 538,468$ ‐$ 206,998$
‐ 12,770 ‐ ‐
‐ ‐ ‐ ‐
2,542$ 551,238$ ‐$ 206,998$
‐$ 11,661$ ‐$ ‐$
‐ ‐ 27,299 ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 11,661 27,299 ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
2,542 539,577 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ 206,998
‐ ‐ (27,299) ‐
2,542 539,577 (27,299) 206,998
2,542$ 551,238$ ‐$ 206,998$
105 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 8 of 8
COMBINING BALANCE SHEET ‐ NON‐MAJOR GOVERNMENTAL FUNDS
September 30, 2023
Assets
Cash and cash equivalents
Receivables (net of allowance
for uncollectibles)
Prepaids
Total Assets
Liabilities
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total Liabilities
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Infrastructure
Reinvestment
Fund
Total
Nonmajor
Governmental
Funds
1,449,011$ 16,299,236$
‐ 2,598,646
‐ 11,286
1,449,011$ 18,909,168$
‐$ 87,118$
‐ 181,400
‐ 2,195,217
‐ 2,678,889
‐ 5,142,624
‐ 1,486,878
‐ 1,486,878
‐ 11,286
‐ 11,749,432
1,449,011 1,449,011
‐ 973,825
‐ (1,903,888)
1,449,011 12,279,666
1,449,011$ 18,909,168$
106 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
Hotel/Motel
Occupancy Tax
Municipal Court
Security
City Wide
Donation
Court
Technology
1,747,149$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 36,686 ‐ 30,200
‐ ‐ ‐ ‐
304,679 1,741 7,235 93
‐ ‐ ‐ ‐
22,348 ‐ 170,432 ‐
2,074,176 38,427 177,667 30,293
‐ ‐ ‐ ‐
‐ ‐ 183,367 ‐
‐ ‐ ‐ ‐
‐ 40,606 ‐ 23,551
933,539 ‐ ‐ ‐
20,454 ‐ ‐ ‐
105,603 ‐ ‐ ‐
‐ ‐ ‐ ‐
1,059,596 40,606 183,367 23,551
1,014,580 (2,179) (5,700) 6,742
‐ ‐ ‐ ‐
(31,515) ‐ ‐ ‐
105,603 ‐ ‐ ‐
74,088 ‐ ‐ ‐
1,088,668 (2,179) (5,700) 6,742
6,654,985 60,713 230,981 (605)
7,743,653$ 58,534$ 225,281$ 6,137$
107 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
Street
Assessment Park Donations Tree Trust
Parks Financial
Assistance
Donations
‐$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ 425,900 ‐
1 2,251 44,393 19
‐ ‐ ‐ ‐
‐ 126,536 ‐ 11,000
1 128,787 470,293 11,019
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ 22,752 ‐
‐ 68,382 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ 286,478 ‐
‐ ‐ ‐ ‐
‐ 68,382 309,230 ‐
1 60,405 161,063 11,019
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
1 60,405 161,063 11,019
51 24,921 1,234,241 (8,156)
52$ 85,326$ 1,395,304$ 2,863$
108 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 3 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
Police State
Seizure
Police Federal
Seizure
Community
Safety Fund
Parks &
Recreation
Development
‐$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ 202,269
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
5,331 6,531 6,535 19,278
‐ ‐ ‐ ‐
59,492 150,993 ‐ ‐
64,823 157,524 6,535 221,547
‐ ‐ ‐ ‐
90,701 33,357 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 49,195 ‐ ‐
‐ ‐ 13,381 ‐
90,701 82,552 13,381 ‐
(25,878) 74,972 (6,846) 221,547
‐ ‐ ‐ ‐
‐ ‐ ‐ (334,721)
‐ ‐ ‐ ‐
‐ ‐ ‐ (334,721)
(25,878) 74,972 (6,846) (113,174)
208,177 118,898 231,916 705,501
182,299$ 193,870$ 225,070$ 592,327$
109 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 4 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
Sidewalk Fund
Drainage
Maintenance
Fund Grant Fund
CDBG Grant
Fund
‐$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
1,908 10,767 ‐ ‐
‐ ‐ 666,054 277,601
‐ ‐ 231,540 ‐
1,908 10,767 897,594 277,601
‐ ‐ 9,829 72,042
‐ ‐ 323,758 ‐
‐ 1,559,999 ‐ ‐
‐ ‐ ‐ 60,828
‐ ‐ 3,244 ‐
‐ ‐ ‐ ‐
‐ ‐ 871,081 ‐
‐ ‐ ‐ 91,326
‐ 1,559,999 1,207,912 224,196
1,908 (1,549,232) (310,318) 53,405
‐ 2,005,458 84,721 ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 2,005,458 84,721 ‐
1,908 456,226 (225,597) 53,405
64,157 ‐ 470,133 9,386
66,065$ 456,226$ 244,536$ 62,791$
110 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 5 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
CDBG ‐ Disaster
Recovery Fund
Disaster
Recovery Fund
Hazard
Mitigation Fund
Coronavirus
Relief Fund
‐$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 46,945 ‐ ‐
‐ 238,884 ‐ ‐
‐ 285,829 ‐ ‐
28,490 ‐ 8,888 ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
167 ‐ 16,881 ‐
28,657 ‐ 25,769 ‐
(28,657) 285,829 (25,769) ‐
‐ ‐ ‐ 1,827,767
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ 1,827,767
(28,657) 285,829 (25,769) 1,827,767
(279,113) (354,231) (57,925) (3,240,162)
(307,770)$ (68,402)$ (83,694)$ (1,412,395)$
111 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 6 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
ARPA Fund
Opioid
Settlement
Traffic Impact
Improvement
Truancy
Prevention and
Diversion
‐$ ‐$ ‐$ ‐$
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ 37,705
‐ ‐ ‐ ‐
‐ ‐ 9,831 2
4,619,182 104,772 ‐ ‐
‐ ‐ ‐ ‐
4,619,182 104,772 9,831 37,707
12,450 ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ 41,390
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
1,104,264 ‐ ‐ ‐
‐ ‐ ‐ ‐
1,116,714 ‐ ‐ 41,390
3,502,468 104,772 9,831 (3,683)
‐ ‐ ‐ ‐
(3,502,468) ‐ ‐ ‐
‐ ‐ ‐ ‐
(3,502,468) ‐ ‐ ‐
‐ 104,772 9,831 (3,683)
‐ ‐ 330,489 (645)
‐$ 104,772$ 340,320$ (4,328)$
112 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 7 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
Municipal Jury
Fund
Municipal
Channel (PEG)
Fund U of H Fund
Regional
Detention Fund
‐$ ‐$ ‐$ ‐$
‐ 204,814 ‐ ‐
‐ ‐ ‐ ‐
715 ‐ ‐ ‐
‐ ‐ ‐ 4,000
65 18,754 ‐ 5,967
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
780 223,568 ‐ 9,967
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 39,126 ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ 39,126 ‐ ‐
780 184,442 ‐ 9,967
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
‐ ‐ ‐ ‐
780 184,442 ‐ 9,967
1,762 355,135 (27,299) 197,031
2,542$ 539,577$ (27,299)$ 206,998$
113 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 8 of 8
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON‐MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2023
Revenues
Sales and use taxes
Franchise fees
Licenses and permits
Fines and forfeitures
Charges for services
Investment earnings
Intergovernmental
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt ‐ leases
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances ‐ Beginning
Fund Balances (Deficit) ‐ Ending
Infrastructure
Reinvestment
Fund
Total
Nonmajor
Governmental
Funds
‐$ 1,747,149$
‐ 204,814
‐ 202,269
‐ 105,306
‐ 429,900
41,366 486,747
‐ 5,714,554
‐ 1,011,225
41,366 9,901,964
‐ 131,699
‐ 631,183
1,308,298 2,868,297
‐ 228,253
‐ 1,005,165
‐ 20,454
564,131 2,980,752
‐ 121,755
1,872,429 7,987,558
(1,831,063) 1,914,406
1,593,714 5,511,660
‐ (3,868,704)
‐ 105,603
1,593,714 1,748,559
(237,349) 3,662,965
1,686,360 8,616,701
1,449,011$ 12,279,666$
114 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
DEBT SERVICE FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Property taxes 43,951,802$ 37,330,000$ 36,875,417$ (454,583)$ 37,763,000$
Investment earnings 10,000 396,073 371,342 (24,731) 41,091
Other 692,979 10,625,627 10,802,953 177,326 735,447
Total Revenues 44,654,781 48,351,700 48,049,712 (301,988) 38,539,538
Expenditures
Debt Service:
Principal 22,665,000 18,365,000 18,035,000 330,000 21,505,000
Interest and other charges 16,108,045 15,662,508 15,535,258 127,250 14,785,753
Bond issuance costs 90,000 10,132,475 10,093,025 39,450 31,900
Intergovernmental 7,763,930 8,048,961 8,048,963 (2) 7,289,088
Total Expenditures 46,626,975 52,208,944 51,712,246 496,698 43,611,741
Excess (Deficiency) of Revenues
Over Expenditures (1,972,194) (3,857,244) (3,662,534) 194,710 (5,072,203)
Other Financing Sources (Uses)
Transfers in 3,302,442 3,552,442 3,552,442 ‐ 2,621,118
Capital bonds issued ‐ 4,420,000 4,420,000 ‐ ‐
Payment to refunded bond escrow agen ‐ (4,376,057) (4,376,057) ‐ ‐
Total Other Financing Sources (Uses)3,302,442 3,596,385 3,596,385 ‐ 2,621,118
Net change in Fund Balances 1,330,248 (260,859) (66,149) 194,710 (2,451,085)
Fund Balances ‐ Beginning 3,436,146 3,436,146 3,436,146 ‐ 5,887,231
Fund Balances (Deficit) ‐ Ending 4,766,394$ 3,175,287$ 3,369,997$ 194,710$ 3,436,146$
115 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
HOTEL/MOTEL OCCUPANCY TAX
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Sales and use taxes 946,900$ 1,420,000$ 1,747,149$ 327,149$ 1,518,308$
Investment earnings 6,000 200,000 304,679 104,679 46,617
Other 15,000 20,000 22,348 2,348 25,242
Total Revenues 967,900 1,640,000 2,074,176 434,176 1,590,167
Expenditures
Current:
Parks and recreation 1,060,038 987,608 933,539 54,069 851,968
Debt Service:
Principal ‐ ‐ 20,454 (20,454) ‐
Capital outlay ‐ ‐ 105,603 (105,603) ‐
Total Expenditures 1,060,038 987,608 1,059,596 (71,988) 851,968
Excess (Deficiency) of Revenues
Over Expenditures (92,138) 652,392 1,014,580 362,188 738,199
Other Financing Sources (Uses)
Transfers out (31,515) (31,515) (31,515) ‐ (944)
Leases (as lessee)‐ ‐ 105,603 105,603 ‐
Total Other Financing Sources (Uses)(31,515) (31,515) 74,088 105,603 (944)
Net change in Fund Balances (123,653) 620,877 1,088,668 467,791 737,255
Fund Balances ‐ Beginning 6,654,985 6,654,985 6,654,985 ‐ 5,917,730
Fund Balances (Deficit) ‐ Ending 6,531,332$ 7,275,862$ 7,743,653$ 467,791$ 6,654,985$
116 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
MUNICIPAL COURT SECURITY
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Fines and forfeitures 48,000$ 36,800$ 36,686$ (114)$ 42,699$
Investment earnings 4 1,100 1,741 641 95
Total Revenues 48,004 37,900 38,427 527 42,794
Expenditures
Current:
Community services 34,625 41,942 40,606 1,336 31,056
Total Expenditures 34,625 41,942 40,606 1,336 31,056
Net change in Fund Balances 13,379 (4,042) (2,179) 1,863 11,738
Fund Balances ‐ Beginning 60,713 60,713 60,713 ‐ 48,975
Fund Balances (Deficit) ‐ Ending 74,092$ 56,671$ 58,534$ 1,863$ 60,713$
117 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
CITY WIDE DONATION
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings 100$ 5,161$ 7,235$ 2,074$ 355$
Other 65,800 155,835 170,432 14,597 76,195
Total Revenues 65,900 160,996 177,667 16,671 76,550
Expenditures
Current:
General government ‐ ‐ ‐ ‐ 1,494
Public safety 177,680 238,180 183,367 54,813 15,287
Total Expenditures 177,680 238,180 183,367 54,813 16,781
Net change in Fund Balances (111,780) (77,184) (5,700) 71,484 59,769
Fund Balances ‐ Beginning 230,981 230,981 230,981 ‐ 171,212
Fund Balances (Deficit) ‐ Ending 119,201$ 153,797$ 225,281$ 71,484$ 230,981$
118 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
COURT TECHNOLOGY
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Fines and forfeitures 45,000$ 30,000$ 30,200$ 200$ 35,426$
Investment earnings 100 100 93 (7) ‐
Total Revenues 45,100 30,100 30,293 193 35,426
Expenditures
Current:
General government ‐ ‐ ‐ ‐ 30,000
Community services 32,943 32,943 23,551 9,392 13,756
Total Expenditures 32,943 32,943 23,551 9,392 43,756
Net change in Fund Balances 12,157 (2,843) 6,742 9,585 (8,330)
Fund Balances ‐ Beginning (605) (605) (605) ‐ 7,725
Fund Balances (Deficit) ‐ Ending 11,552$ (3,448)$ 6,137$ 9,585$ (605)$
119 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
STREET ASSESSMENT
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings ‐$ ‐$ 1$ 1$ 51$
Total Revenues ‐ ‐ 1 1 51
Expenditures
Total Expenditures ‐ ‐ ‐ ‐ ‐
Net change in Fund Balances ‐ ‐ 1 1 51
Fund Balances ‐ Beginning 51 51 51 ‐ ‐
Fund Balances (Deficit) ‐ Ending 51$ 51$ 52$ 1$ 51$
120 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
PARK DONATIONS
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings 100$ 1,000$ 2,251$ 1,251$ 46$
Other 105,100 119,015 126,536 7,521 15,661
Total Revenues 105,200 120,015 128,787 8,772 15,707
Expenditures
Current:
Parks and recreation 105,550 49,556 68,382 (18,826) 47,763
Total Expenditures 105,550 49,556 68,382 (18,826) 47,763
Net change in Fund Balances (350) 70,459 60,405 (10,054) (32,056)
Fund Balances ‐ Beginning 24,921 24,921 24,921 ‐ 56,977
Fund Balances (Deficit) ‐ Ending 24,571$ 95,380$ 85,326$ (10,054)$ 24,921$
121 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
TREE TRUST
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Charges for services 2,000$ 300,000$ 425,900$ 125,900$ 1,025,950$
Investment earnings 100 30,000 44,393 14,393 1,983
Total Revenues 2,100 330,000 470,293 140,293 1,027,933
Expenditures
Current:
Community services 12,500 39,191 22,752 16,439 ‐
Parks and recreation ‐ ‐ ‐ ‐ 58,897
Capital outlay 445,000 445,000 286,478 158,522 ‐
Total Expenditures 457,500 484,191 309,230 174,961 58,897
Excess (Deficiency) of Revenues
Over Expenditures (455,400) (154,191) 161,063 315,254 969,036
Other Financing Sources (Uses)
Transfers out ‐ ‐ ‐ ‐ (200,000)
Total Other Financing Sources (Uses)‐ ‐ ‐ ‐ (200,000)
Net change in Fund Balances (455,400) (154,191) 161,063 315,254 769,036
Fund Balances ‐ Beginning 1,234,241 1,234,241 1,234,241 ‐ 465,205
Fund Balances (Deficit) ‐ Ending 778,841$ 1,080,050$ 1,395,304$ 315,254$ 1,234,241$
122 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
PARKS FINANCIAL ASSISTANCE DONATIONS
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings 50$ 50$ 19$ (31)$ ‐$
Other 5,000 5,000 11,000 6,000 ‐
Total Revenues 5,050 5,050 11,019 5,969 ‐
Expenditures
Current:
Parks and recreation 5,000 5,000 ‐ 5,000 8,190
Total Expenditures 5,000 5,000 ‐ 5,000 8,190
Net change in Fund Balances 50 50 11,019 10,969 (8,190)
Fund Balances ‐ Beginning (8,156) (8,156) (8,156) ‐ 34
Fund Balances (Deficit) ‐ Ending (8,106)$ (8,106)$ 2,863$ 10,969$ (8,156)$
123 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
POLICE STATE SEIZURE
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings 108$ 5,000$ 5,331$ 331$ 273$
Other ‐ 56,000 59,492 3,492 67,043
Total Revenues 108 61,000 64,823 3,823 67,316
Expenditures
Current:
Public safety 52,200 89,883 90,701 (818) 27,952
Capital outlay ‐ ‐ ‐ ‐ 27,314
Total Expenditures 52,200 89,883 90,701 (818) 55,266
Net change in Fund Balances (52,092) (28,883) (25,878) 3,005 12,050
Fund Balances ‐ Beginning 208,177 208,177 208,177 ‐ 196,127
Fund Balances (Deficit) ‐ Ending 156,085$ 179,294$ 182,299$ 3,005$ 208,177$
124 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
POLICE FEDERAL SEIZURE
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings 100$ 5,000$ 6,531$ 1,531$ 194$
Other ‐ 151,000 150,993 (7) ‐
Total Revenues 100 156,000 157,524 1,524 194
Expenditures
Current:
Public safety 35,000 35,000 33,357 1,643 15,493
Capital outlay ‐ 124,196 49,195 75,001 32,797
Total Expenditures 35,000 159,196 82,552 76,644 48,290
Net change in Fund Balances (34,900) (3,196) 74,972 78,168 (48,096)
Fund Balances ‐ Beginning 118,898 118,898 118,898 ‐ 166,994
Fund Balances (Deficit) ‐ Ending 83,998$ 115,702$ 193,870$ 78,168$ 118,898$
125 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
COMMUNITY SAFETY FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings ‐$ 3,500$ 6,535$ 3,035$ ‐$
Total Revenues ‐ 3,500 6,535 3,035 ‐
Expenditures
Intergovernmental ‐ 231,915 13,381 218,534 18,084
Total Expenditures ‐ 231,915 13,381 218,534 18,084
Excess (Deficiency) of Revenues
Over Expenditures ‐ (228,415) (6,846) 221,569 (18,084)
Other Financing Sources (Uses)
Transfers in ‐ ‐ ‐ ‐ 250,000
Total Other Financing Sources (Uses)‐ ‐ ‐ ‐ 250,000
Net change in Fund Balances ‐ (228,415) (6,846) 221,569 231,916
Fund Balances ‐ Beginning 231,916 231,916 231,916 ‐ ‐
Fund Balances (Deficit) ‐ Ending 231,916$ 3,501$ 225,070$ 221,569$ 231,916$
126 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
PARKS & RECREATION DEVELOPMENT
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Licenses and permits 95,000$ 260,000$ 202,269$ (57,731)$ 611,390$
Investment earnings 3,000 14,000 19,278 5,278 1,656
Total Revenues 98,000 274,000 221,547 (52,453) 613,046
Expenditures
Current:
Parks and recreation ‐ ‐ ‐ ‐ 1
Debt Service:
Principal ‐ ‐ ‐ ‐ 71,079
Interest and other charges ‐ ‐ ‐ ‐ 2,674
Capital outlay ‐ 615,319 ‐ 615,319 22,495
Total Expenditures ‐ 615,319 ‐ 615,319 96,249
Excess (Deficiency) of Revenues
Over Expenditures 98,000 (341,319) 221,547 562,866 516,797
Other Financing Sources (Uses)
Transfers out (84,721) (334,721) (334,721) ‐ (710,228)
Total Other Financing Sources (Uses)(84,721) (334,721) (334,721) ‐ (710,228)
Net change in Fund Balances 13,279 (676,040) (113,174) 562,866 (193,431)
Fund Balances ‐ Beginning 705,501 705,501 705,501 ‐ 898,932
Fund Balances (Deficit) ‐ Ending 718,780$ 29,461$ 592,327$ 562,866$ 705,501$
127 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
SIDEWALK FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Charges for services 5,000$ ‐$ ‐$ ‐$ 17,422$
Investment earnings 100 1,300 1,908 608 100
Total Revenues 5,100 1,300 1,908 608 17,522
Expenditures
Total Expenditures ‐ ‐ ‐ ‐ ‐
Net change in Fund Balances 5,100 1,300 1,908 608 17,522
Fund Balances ‐ Beginning 64,157 64,157 64,157 ‐ 46,635
Fund Balances (Deficit) ‐ Ending 69,257$ 65,457$ 66,065$ 608$ 64,157$
128 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
DRAINAGE MAINTENANCE FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings ‐$ 6,820$ 10,767$ 3,947$ ‐$
Total Revenues ‐ 6,820 10,767 3,947 ‐
Expenditures
Current:
Public works 1,827,449 1,725,824 1,559,999 165,825 ‐
Total Expenditures 1,827,449 1,725,824 1,559,999 165,825 ‐
Excess (Deficiency) of Revenues
Over Expenditures (1,827,449) (1,719,004) (1,549,232) 169,772 ‐
Other Financing Sources (Uses)
Transfers in 1,972,958 1,972,958 2,005,458 32,500 ‐
Transfers out ‐ ‐ ‐ ‐ ‐
Total Other Financing Sources (Uses)1,972,958 1,972,958 2,005,458 32,500 ‐
Net change in Fund Balances 145,509 253,954 456,226 202,272 ‐
Fund Balances ‐ Beginning ‐ ‐ ‐ ‐ ‐
Fund Balances (Deficit) ‐ Ending 145,509$ 253,954$ 456,226$ 202,272$ ‐$
129 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
GRANT FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental 393,356$ 1,394,462$ 666,054$ (728,408)$ 1,610,220$
Other ‐ 190,000 231,540 41,540 ‐
Total Revenues 393,356 1,584,462 897,594 (686,868) 1,610,220
Expenditures
Current:
General government 1,320 13,319 9,829 3,490 11,343
Public safety 259,982 301,213 323,758 (22,545) 764,707
Parks and recreation ‐ 30,799 3,244 27,555 ‐
Capital outlay 156,940 1,160,267 871,081 289,186 585,548
Total Expenditures 418,242 1,505,598 1,207,912 297,686 1,361,598
Excess (Deficiency) of Revenues
Over Expenditures (24,886) 78,864 (310,318) (389,182) 248,622
Other Financing Sources (Uses)
Transfers in 84,721 84,721 84,721 ‐ 94,900
Total Other Financing Sources (Uses)84,721 84,721 84,721 ‐ 94,900
Net change in Fund Balances 59,835 163,585 (225,597) (389,182) 343,522
Fund Balances ‐ Beginning 470,133 470,133 470,133 ‐ 126,611
Fund Balances (Deficit) ‐ Ending 529,968$ 633,718$ 244,536$ (389,182)$ 470,133$
130 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
CDBG GRANT FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental 478,854$ 4,130,926$ 277,601$ (3,853,325)$ 367,846$
Total Revenues 478,854 4,130,926 277,601 (3,853,325) 367,846
Expenditures
Current:
General government 40,794 69,708 72,042 (2,334) 93,717
Public safety ‐ ‐ ‐ ‐ 60,669
Community services 67,603 67,602 60,828 6,774 57,310
Capital outlay 271,049 2,678,009 ‐ 2,678,009 ‐
Intergovernmental 99,408 1,315,607 91,326 1,224,281 167,925
Total Expenditures 478,854 4,130,926 224,196 3,906,730 379,621
Net change in Fund Balances ‐ ‐ 53,405 53,405 (11,775)
Fund Balances ‐ Beginning 9,386 9,386 9,386 ‐ 21,161
Fund Balances (Deficit) ‐ Ending 9,386$ 9,386$ 62,791$ 53,405$ 9,386$
131 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
CDBG ‐ DISASTER RECOVERY FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental 5,308,153$ 19,081,869$ ‐$ (19,081,869)$ 81,833$
Total Revenues 5,308,153 19,081,869 ‐ (19,081,869) 81,833
Expenditures
Current:
General government 293,896 304,260 28,490 275,770 13,208
Capital outlay 4,361,635 17,045,900 ‐ 17,045,900 68,624
Intergovernmental 455,342 1,731,709 167 1,731,542 1
Total Expenditures 5,110,873 19,081,869 28,657 19,053,212 81,833
Net change in Fund Balances 197,280 ‐ (28,657) (28,657) ‐
Fund Balances ‐ Beginning,
as Restated (279,113) (279,113) (279,113) ‐ (197,280)
Fund Balances (Deficit) ‐ Ending (81,833)$ (279,113)$ (307,770)$ (28,657)$ (197,280)$
132 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
DISASTER RECOVERY FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental ‐$ 46,495$ 46,945$ 450$ ‐$
Other ‐ ‐ 238,884 238,884 8,865
Total Revenues ‐ 46,495 285,829 239,334 8,865
Expenditures
Current:
General government ‐ ‐ ‐ ‐ 1,009
Total Expenditures ‐ ‐ ‐ ‐ 1,009
Excess (Deficiency) of Revenues
Over Expenditures ‐ 46,495 285,829 239,334 7,856
Other Financing Sources (Uses)
Transfers in ‐ ‐ ‐ ‐ 94,365
Total Other Financing Sources (Uses)‐ ‐ ‐ ‐ 94,365
Net change in Fund Balances ‐ 46,495 285,829 239,334 102,221
Fund Balances ‐ Beginning (354,231) (354,231) (354,231) ‐ (456,452)
Fund Balances (Deficit) ‐ Ending (354,231)$ (307,736)$ (68,402)$ 239,334$ (354,231)$
133 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
HAZARD MITIGATION FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental 503,760$ 5,575,469$ ‐$ (5,575,469)$ (40,513)$
Total Revenues 503,760 5,575,469 ‐ (5,575,469) (40,513)
Expenditures
Current:
General government ‐ 30,138 8,888 21,250 741
Capital outlay ‐ 4,204,300 ‐ 4,204,300 ‐
Intergovernmental 499,760 2,040,063 16,881 2,023,182 4,041
Total Expenditures 499,760 6,274,501 25,769 6,248,732 4,782
Net change in Fund Balances 4,000 (699,032) (25,769) 673,263 (45,295)
Fund Balances ‐ Beginning,
as Restated (57,925) (57,925) (57,925) ‐ (4,000)
Fund Balances (Deficit) ‐ Ending (53,925)$ (756,957)$ (83,694)$ 673,263$ (49,295)$
134 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
CORONAVIRUS RELIEF FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental ‐$ ‐$ ‐$ ‐$ 18,945$
Total Revenues ‐ ‐ ‐ ‐ 18,945
Expenditures
Total Expenditures ‐ ‐ ‐ ‐ ‐
Excess (Deficiency) of Revenues
Over Expenditures ‐ ‐ ‐ ‐ 18,945
Other Financing Sources (Uses)
Transfers in 1,827,767 1,827,767 1,827,767 ‐ ‐
Total Other Financing Sources (Uses)1,827,767 1,827,767 1,827,767 ‐ ‐
Net change in Fund Balances 1,827,767 1,827,767 1,827,767 ‐ 18,945
Fund Balances ‐ Beginning (3,240,162) (3,240,162) (3,240,162) ‐ (3,259,107)
Fund Balances (Deficit) ‐ Ending (1,412,395)$ (1,412,395)$ (1,412,395)$ ‐$ (3,240,162)$
135 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
ARPA FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental 5,944,486$ 7,298,074$ 4,619,182$ (2,678,892)$ 1,172,384$
Total Revenues 5,944,486 7,298,074 4,619,182 (2,678,892) 1,172,384
Expenditures
Current:
General government 3,006,779 3,228,606 12,450 3,216,156 172,384
Capital outlay ‐ 550,000 1,104,264 (554,264) ‐
Total Expenditures 3,006,779 3,778,606 1,116,714 2,661,892 172,384
Excess (Deficiency) of Revenues
Over Expenditures 2,937,707 3,519,468 3,502,468 (17,000) 1,000,000
Other Financing Sources (Uses)
Transfers out (1,687,319) (2,519,468) (3,502,468) (983,000) ‐
Total Other Financing Sources (Uses)(1,687,319) (2,519,468) (3,502,468) (983,000) ‐
Net change in Fund Balances 1,250,388 1,000,000 ‐ (1,000,000) 1,000,000
Fund Balances ‐ Beginning ‐ ‐ ‐ ‐ (1,000,000)
Fund Balances (Deficit) ‐ Ending 1,250,388$ 1,000,000$ ‐$ (1,000,000)$ ‐$
136 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
OPIOID SETTLEMENT
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Intergovernmental ‐$ ‐$ 104,772$ 104,772$ ‐$
Total Revenues ‐ ‐ 104,772 104,772 ‐
Expenditures
Total Expenditures ‐ ‐ ‐ ‐ ‐
Net change in Fund Balances ‐ ‐ 104,772 104,772 ‐
Fund Balances ‐ Beginning ‐ ‐ ‐ ‐ ‐
Fund Balances (Deficit) ‐ Ending ‐$ ‐$ 104,772$ 104,772$ ‐$
137 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
TRAFFIC IMPACT IMPROVEMENT
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings 100$ 6,945$ 9,831$ 2,886$ 561$
Total Revenues 100 6,945 9,831 2,886 561
Expenditures
Current:
Public works 214,920 ‐ ‐ ‐ 288,065
Total Expenditures 214,920 ‐ ‐ ‐ 288,065
Net change in Fund Balances (214,820) 6,945 9,831 2,886 (287,504)
Fund Balances ‐ Beginning 330,489 330,489 330,489 ‐ 617,993
Fund Balances (Deficit) ‐ Ending 115,669$ 337,434$ 340,320$ 2,886$ 330,489$
138 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
TRUANCY PREVENTION AND DIVERSION
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Fines and forfeitures 52,500$ 37,145$ 37,705$ 560$ 44,208$
Investment earnings 100 50 2 (48) ‐
Total Revenues 52,600 37,195 37,707 512 44,208
Expenditures
Current:
Community services 43,583 42,743 41,390 1,353 49,092
Total Expenditures 43,583 42,743 41,390 1,353 49,092
Net change in Fund Balances 9,017 (5,548) (3,683) 1,865 (4,884)
Fund Balances ‐ Beginning (645) (645) (645) ‐ 4,239
Fund Balances (Deficit) ‐ Ending 8,372$ (6,193)$ (4,328)$ 1,865$ (645)$
139 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
MUNICIPAL JURY FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Fines and forfeitures 1,000$ 705$ 715$ 10$ 808$
Investment earnings 25 50 65 15 3
Total Revenues 1,025 755 780 25 811
Expenditures
Current:
Community services 1,000 1,000 ‐ 1,000 ‐
Total Expenditures 1,000 1,000 ‐ 1,000 ‐
Net change in Fund Balances 25 (245) 780 1,025 811
Fund Balances ‐ Beginning 1,762 1,762 1,762 ‐ 951
Fund Balances (Deficit) ‐ Ending 1,787$ 1,517$ 2,542$ 1,025$ 1,762$
140 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
MUNICIPAL CHANNEL (PEG) FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Franchise fees 235,000$ 208,000$ 204,814$ (3,186)$ 247,362$
Investment earnings 1,500 15,100 18,754 3,654 2,895
Total Revenues 236,500 223,100 223,568 468 250,257
Expenditures
Current:
Community services 101,500 101,500 39,126 62,374 43,963
Capital outlay ‐ 144,500 ‐ 144,500 ‐
Total Expenditures 101,500 246,000 39,126 206,874 43,963
Excess (Deficiency) of Revenues
Over Expenditures 135,000 (22,900) 184,442 207,342 206,294
Other Financing Sources (Uses)
Transfers out ‐ ‐ ‐ ‐ (701,000)
Total Other Financing Sources (Uses)‐ ‐ ‐ ‐ (701,000)
Net change in Fund Balances 135,000 (22,900) 184,442 207,342 (494,706)
Fund Balances ‐ Beginning 355,135 355,135 355,135 ‐ 849,841
Fund Balances (Deficit) ‐ Ending 490,135$ 332,235$ 539,577$ 207,342$ 355,135$
141 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
U OF H FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Total Revenues ‐$ ‐$ ‐$ ‐$ ‐$
Expenditures
Total Expenditures ‐ ‐ ‐ ‐ ‐
Net change in Fund Balances ‐ ‐ ‐ ‐ ‐
Fund Balances ‐ Beginning (27,299)$ (27,299)$ (27,299)$ ‐$ (27,299)$
Fund Balances (Deficit) ‐ Ending (27,299)$ (27,299)$ (27,299)$ ‐$ (27,299)$
142 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
REGIONAL DETENTION FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Charges for services ‐$ 4,000$ 4,000$ ‐$ 195,724$
Investment earnings ‐ 4,200 5,967 1,767 307
Total Revenues ‐ 8,200 9,967 1,767 196,031
Expenditures
Total Expenditures ‐ ‐ ‐ ‐ ‐
Net change in Fund Balances ‐ 8,200 9,967 1,767 196,031
Fund Balances ‐ Beginning 197,031 197,031 197,031 ‐ 1,000
Fund Balances (Deficit) ‐ Ending 197,031$ 205,231$ 206,998$ 1,767$ 197,031$
143 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL
INFRASTRUCTURE REINVESTMENT FUND
For the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Variance with
Final Budget 2022
Revenues
Investment earnings ‐$ 36,000$ 41,366$ 5,366$ 2,522$
Total Revenues ‐ 36,000 41,366 5,366 2,522
Expenditures
Current:
Public works 940,894 1,027,033 1,308,298 (281,265) 1,478,204
Capital outlay 652,820 652,820 564,131 88,689 670,704
Total Expenditures 1,593,714 1,679,853 1,872,429 (192,576) 2,148,908
Excess (Deficiency) of Revenues
Over Expenditures (1,593,714) (1,643,853) (1,831,063) (187,210) (2,146,386)
Other Financing Sources (Uses)
Transfers in 1,593,714 1,593,714 1,593,714 ‐ 2,406,203
Total Other Financing Sources (Uses)1,593,714 1,593,714 1,593,714 ‐ 2,406,203
Net change in Fund Balances ‐ (50,139) (237,349) (187,210) 259,817
Fund Balances ‐ Beginning 1,686,360 1,686,360 1,686,360 ‐ 1,426,543
Fund Balances (Deficit) ‐ Ending 1,686,360$ 1,636,221$ 1,449,011$ (187,210)$ 1,686,360$
144 City of Pearland, Texas 2023 ACFR
145 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
INTERNAL SERVICE FUNDS
September 30, 2023
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 ‐– 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.
146 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
COMBINING STATEMENT OF NET POSITION ‐ INTERNAL SERVICE FUNDS
September 30, 2023
Risk
Management
Fund
Employee
Benefits Fund
Health Claims
Fund
Motor Pool
Fund
Assets
Current assets:
Cash and cash equivalents 1,199,064$ 161,110$ 3,373,042$ 15,086,995$
Receivables, net 45,889 ‐ 213,665 ‐
Inventories ‐ ‐ ‐ 629,460
Restricted cash and cash equivalents 5,000 ‐ 84,196 ‐
Total current assets 1,249,953 161,110 3,670,903 15,716,455
Noncurrent assets:
Capital assets:
Machinery and equipment ‐ ‐ ‐ 10,892,429
Right‐to‐use software ‐ ‐ ‐ ‐
Less accumulated
depreciation/amortization ‐ ‐ ‐ (4,288,805)
Total noncurrent assets ‐ ‐ ‐ 6,603,624
Total Assets 1,249,953 161,110 3,670,903 22,320,079
Deferred Outflows of Resources
Pension related 17,056 ‐ ‐ 161,616
OPEB related 879 ‐ ‐ 8,328
Total Deferred Outflows of Resources 17,935 ‐ ‐ 169,944
Liabilities
Current liabilities:
Accounts payable 227 14,529 ‐ 106,239
Accrued liabilities 10,306 107,875 370,839 87,887
Accrued interest ‐ ‐ ‐ ‐
Customer deposits ‐ ‐ 2,738 ‐
Current portion of noncurrent liabilities:
SBITA payable ‐ ‐ ‐ ‐
Total current liabilities: 10,533 122,404 373,577 194,126
Noncurrent liabilities:
Compensated absences ‐ ‐ ‐ 37,295
SBITA payable ‐ ‐ ‐ ‐
Net pension liability 29,708 ‐ ‐ 281,497
Total OPEB liability 4,673 ‐ ‐ 44,276
Total noncurrent liabilities: 34,381 ‐ ‐ 363,068
Total Liabilities 44,914 122,404 373,577 557,194
Deferred Inflows of Resources
OPEB related 1,969 ‐ ‐ 18,654
Total Deferred Inflows of Resources 1,969 ‐ ‐ 18,654
Net Position
Net investment in capital assets ‐ ‐ ‐ 6,603,624
Unassigned 1,221,005 38,706 3,297,326 15,310,551
Total Net Position 1,221,005$ 38,706$ 3,297,326$ 21,914,175$
147 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
COMBINING STATEMENT OF NET POSITION ‐ INTERNAL SERVICE FUNDS
September 30, 2023
Assets
Current assets:
Cash and cash equivalents
Receivables, net
Inventories
Restricted cash and cash equivalents
Total current assets
Noncurrent assets:
Capital assets:
Machinery and equipment
Right‐to‐use software
Less accumulated
depreciation/amortization
Total noncurrent assets
Total Assets
Deferred Outflows of Resources
Pension related
OPEB related
Total Deferred Outflows of Resources
Liabilities
Current liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Customer deposits
Current portion of noncurrent liabilities:
SBITA payable
Total current liabilities:
Noncurrent liabilities:
Compensated absences
SBITA payable
Net pension liability
Total OPEB liability
Total noncurrent liabilities:
Total Liabilities
Deferred Inflows of Resources
OPEB related
Total Deferred Inflows of Resources
Net Position
Net investment in capital assets
Unassigned
Total Net Position
Facilities Fund
Information
Technology
Fund
Total Internal
Service Funds
1,100,806$ 432,195$ 21,353,212$
‐ 1,920 261,474
‐ ‐ 629,460
‐ ‐ 89,196
1,100,806 434,115 22,333,342
‐ ‐ 10,892,429
‐ 11,016,172 11,016,172
‐ (4,040,720) (8,329,525)
‐ 6,975,452 13,579,076
1,100,806 7,409,567 35,912,418
‐ ‐ 178,672
‐ ‐ 9,207
‐ ‐ 187,879
115,398 262,824 499,217
111,725 157,779 846,411
‐ 150,598 150,598
‐ ‐ 2,738
‐ 2,477,440 2,477,440
227,123 3,048,641 3,976,404
106,671 374,720 518,686
‐ 3,892,207 3,892,207
‐ ‐ 311,205
‐ ‐ 48,949
106,671 4,266,927 4,771,047
333,794 7,315,568 8,747,451
‐ ‐ 20,623
‐ ‐ 20,623
‐ 605,805 7,209,429
767,012 (511,806) 20,122,794
767,012$ 93,999$ 27,332,223$
148 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION ‐ INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2023
Risk
Management
Fund
Employee
Benefits Fund
Health Claims
Fund
Motor Pool
Fund
Operating Revenues
Charges for services:
Risk management 545,448$ ‐$ 9,689,351$ ‐$
Equipment management ‐ ‐ ‐ 5,209,461
Miscellaneous 472,738 ‐ 934,665 ‐
Total Operating Revenues 1,018,186 ‐ 10,624,016 5,209,461
Operating Expenses
Personnel services 66,210 ‐ ‐ 673,207
Supplies and materials 242 ‐ ‐ 16,898
Buildings and grounds ‐ ‐ ‐ ‐
Repairs and Maintenance 195 ‐ ‐ 914,922
Contractual Services 3,242,764 ‐ 10,231,622 37,577
Miscellaneous 909 ‐ 16,593 137,475
Depreciation and amortization ‐ ‐ ‐ 1,753,018
Total Operating Expenses 3,310,320 ‐ 10,248,215 3,533,097
Operating Income (Loss)(2,292,134) ‐ 375,801 1,676,364
Nonoperating Revenues (Expenses)
Investment earnings 33,059 1,944 84,723 625,525
Gain (loss) on disposal of property ‐ ‐ ‐ 96,105
Interest expense ‐ ‐ ‐ ‐
Total Nonoperating Revenues (Expenses)33,059 1,944 84,723 721,630
Income (Loss) Before Capital
Contributions and Transfers (2,259,075) 1,944 460,524 2,397,994
Transfers in 1,804,000 ‐ ‐ ‐
Transfers out ‐ ‐ ‐ (30,799)
Change in Net Position (455,075) 1,944 460,524 2,367,195
Net Position ‐ Beginning, as Restated 1,676,080 36,762 2,836,802 19,546,980
Net Position (Deficit) ‐ Ending 1,221,005$ 38,706$ 3,297,326$ 21,914,175$
149 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION ‐ INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2023
Operating Revenues
Charges for services:
Risk management
Equipment management
Miscellaneous
Total Operating Revenues
Operating Expenses
Personnel services
Supplies and materials
Buildings and grounds
Repairs and Maintenance
Contractual Services
Miscellaneous
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Investment earnings
Gain (loss) on disposal of property
Interest expense
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Capital
Contributions and Transfers
Transfers in
Transfers out
Change in Net Position
Net Position ‐ Beginning, as Restated
Net Position (Deficit) ‐ Ending
Facilities Fund
Information
Technology
Fund
Total Internal
Service Funds
‐$ ‐$ 10,234,799$
‐ 8,488,643 13,698,104
‐ 10,000 1,417,403
‐ 8,498,643 25,350,306
938,372 2,684,740 4,362,529
35,059 58,844 111,043
1,038,507 ‐ 1,038,507
345,756 1,035,748 2,296,621
739,609 478,451 14,730,023
84,940 529,616 769,533
‐ 4,040,720 5,793,738
3,182,243 8,828,119 29,101,994
(3,182,243) (329,476) (3,751,688)
24,531 7,104 776,886
‐ ‐ 96,105
‐ (205,156) (205,156)
24,531 (198,052) 667,835
(3,157,712) (527,528) (3,083,853)
3,924,724 202,767 5,931,491
‐ ‐ (30,799)
767,012 (324,761) 2,816,839
‐ 418,760 24,515,384
767,012$ 93,999$ 27,332,223$
150 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS Page 1 of 2 COMBINING STATEMENT OF CASH FLOWS ‐ INTERNAL SERVICE FUNDS For the Year Ended September 30, 2023 Risk Management FundEmployee Benefits FundHealth Claims Fund Motor Pool Fund Facilities FundInformation Technology FundTotal Internal Service FundsCash Flows from Operating ActivitiesReceipts from interfund charges for services 545,448$ ‐$ 9,689,351$ 5,209,461$ ‐$ 8,488,643$ 23,932,903$ Other receipts 484,991 909 728,877 897 ‐ 8,080 1,223,754 Payments to employees for salaries and benefits (62,477) ‐ ‐ (613,685) (831,701) (2,310,020) (3,817,883) Payments to suppliers and service providers (3,291,686) (116,129) (10,412,932) (1,472,803) (2,016,748) (1,682,056) (18,992,354) Net Cash Provided (Used) by Operating Activities(2,323,724) (115,220) 5,296 3,123,870 (2,848,449) 4,504,647 2,346,420 Cash Flows from Noncapital Financing ActivitiesTransfers from other funds 1,804,000 ‐ ‐ ‐ 3,924,724 202,767 5,931,491 Transfers to other funds‐ ‐ ‐ (30,799) ‐ ‐ (30,799) Net Cash Provided (Used) by Noncapital Financing Activities1,804,000 ‐ ‐ (30,799) 3,924,724 202,767 5,900,692 Cash Flows from Capital and Related Financing ActivitiesAcquisition and construction of capital assets‐ ‐ ‐ (2,750,967) ‐ (46,161) (2,797,128) Proceeds from sale of capital assets‐ ‐ ‐ 616,086 ‐ ‐ 616,086 Principal payments on SBITAs‐ ‐ ‐ ‐ ‐ (4,181,604) (4,181,604) Interest paid on capital related debt‐ ‐ ‐ ‐ ‐ (54,558) (54,558) Net cash Provided (Used) by Capital and Related Financing Activities‐ ‐ ‐ (2,134,881) ‐ (4,282,323) (6,417,204) Cash Flows from Investing ActivitiesInterest on investments 33,059 1,944 84,723 625,525 24,531 7,104 776,886 Net Cash Provided (Used) by Investing Activities33,059 1,944 84,723 625,525 24,531 7,104 776,886 Net Increase (Decrease) in Cash and Cash Equivalents(486,665) (113,276) 90,019 1,583,715 1,100,806 432,195 2,606,794 Beginning Cash and Cash Equivalents1,690,729 274,386 3,367,219 13,503,280 ‐ ‐ 18,835,614 Ending Cash and Cash Equivalents1,204,064$ 161,110$ 3,457,238$ 15,086,995$ 1,100,806$ 432,195$ 21,442,408$ Reconciliation to the Statement of Net Position ‐ Proprietary FundsUnrestricted cash and cash equivalents 1,199,064$ 161,110$ 3,373,042$ 15,086,995$ 1,100,806$ 432,195$ 21,353,212$ Restricted cash and cash equivalents 5,000 ‐ 84,196 ‐ ‐ ‐ 89,196 Ending Cash and Cash Equivalents1,204,064$ 161,110$ 3,457,238$ 15,086,995$ 1,100,806$ 432,195$ 21,442,408$
151 City of Pearland, Texas 2023 ACFR CITY OF PEARLAND, TEXAS Page 2 of 2 COMBINING STATEMENT OF CASH FLOWS ‐ INTERNAL SERVICE FUNDS For the Year Ended September 30, 2023 Risk Management FundEmployee Benefits FundHealth Claims Fund Motor Pool Fund Facilities FundInformation Technology FundTotal Internal Service FundsReconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating ActivitiesOperating income (loss) (2,292,134)$ ‐$ 375,801$ 1,676,364$ (3,182,243)$ (329,476)$ (3,751,688)$ Adjustment to reconcile operating income (loss) tonet cash provided (used) by operating activities:Depreciation and amortization expense‐ ‐ ‐ 1,753,018 ‐ 4,040,720 5,793,738 (Increase) decrease in assetsAccounts receivable, net 12,253 909 (205,788) 897 ‐ (1,920) (193,649) Inventories‐ ‐ ‐ (147,463) ‐ ‐ (147,463) Increase (decrease) in liabilities:Accounts payable (24,639) 14,529 ‐ (244,230) 115,398 262,824 123,882 Accrued liabilities (22,937) (130,658) (164,651) 25,762 111,725 157,779 (22,980) Customer deposits‐ ‐ (66) ‐ ‐ ‐ (66) Compensated absences‐ ‐ ‐ (12,289) 106,671 374,720 469,102 Net pension liability and related amounts (73) ‐ ‐ 42,044 ‐ ‐ 41,971 Total OPEB liability and related amounts 3,806 ‐ ‐ 29,767 ‐ ‐ 33,573 Net Cash Provided (Used) by Operating Activities(2,323,724)$ (115,220)$ 5,296$ 3,123,870$ (2,848,449)$ 4,504,647$ 2,346,420$ Noncash Investing, Capital, and Financing ActivitiesGain (loss) on disposition of capital assets‐$ ‐$ ‐$ 96,105$ ‐$ ‐$ 96,105$ SBITAs issued‐ ‐ ‐ ‐ ‐ (8,125,006) (8,125,006) SBITA assets obtained‐ ‐ ‐ ‐ ‐ 8,171,170 8,171,170
152 City of Pearland, Texas 2023 ACFR
153 City of Pearland, Texas 2023 ACFR
STATISTICAL SECTION
154 City of Pearland, Texas 2023 ACFR
155 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
STATISTICAL SECTION (UNAUDITED)
September 30, 2023
This part of the City of Pearland's annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the City's overall financial health.
Contents Page
Financial Trends 156
These schedules contain trend information to help the readers understand how the City's financial
performance and well‐being have changed over time.
Revenue Capacity 166
These schedules contain information to help the reader assess the City's most significant local revenue
sources, sales and property tax.
Debt Capacity 178
These schedules present information to help the reader assess the affordability of the City's current levels
of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 185
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating Information 188
These schedules contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the city provides and the activities it
performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
156 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018
Governmental Activities
Net investment in capital assets 397,346$ 423,706$ 439,923$ 449,141$ 454,670$
Restricted 52,209 53,883 60,640 60,310 67,263
Unrestricted 2,477 3,800 3,185 (5,045) (2,500)
Total Governmental Activities
Net Position 452,032$ 481,389$ 503,748$ 504,406$ 519,433$
Business‐Type Activities
Net investment in capital assets 174,955$ 186,819$ 187,937$ 205,827$ 210,674$
Restricted 14,484 13,539 15,852 13,972 14,525
Unrestricted 15,612 12,815 13,351 6,972 20,663
Total Business‐Type Activities
Net Position 205,051$ 213,173$ 217,140$ 226,771$ 245,862$
Primary Government
Investment in capital assets 572,301$ 610,525$ 627,860$ 654,968$ 665,344$
Restricted 66,693 67,422 76,492 74,282 81,788
Unrestricted 18,089 16,615 16,536 1,927 18,163
Total Primary Government
Net Position 657,083$ 694,562$ 720,888$ 731,177$ 765,295$
157 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
2019 2020 2021 2022 2023
Governmental Activities
Net investment in capital assets 488,077$ 490,304$ 493,671$ 511,377$ 520,909$
Restricted 56,491 44,928 45,162 48,792 79,137
Unrestricted (734) 33,179 52,796 59,628 29,248
Total Governmental Activities
Net Position 543,834$ 568,411$ 591,629$ 619,797$ 629,294$
Business‐Type Activities
Net investment in capital assets 214,672$ 213,081$ 161,157$ 216,661$ 221,205$
Restricted 15,270 16,776 30,064 32,025 34,269
Unrestricted 29,806 39,015 81,185 20,264 28,548
Total Business‐Type Activities
Net Position 259,748$ 268,872$ 272,406$ 268,950$ 284,022$
Primary Government
Investment in capital assets 702,749$ 703,386$ 654,828$ 728,037$ 742,113$
Restricted 71,761 61,704 75,226 80,817 113,406
Unrestricted 29,072 72,195 133,981 79,892 57,796
Total Primary Government
Net Position 803,582$ 837,285$ 864,035$ 888,746$ 913,315$
158 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 4
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Accrual Basis of Accounting)
Primary Government 2014 2015 2016 2017 2018
Expenses
Governmental activities:
General government 12,241$ 17,189$ 18,016$ $20,121.00 20,360$
Public safety 32,130 33,179 38,933 44,343 43,275
Public works 38,579 45,894 46,449 49,221 53,271
Community services 4,687 3,641 3,711 5,107 4,509
Parks and recreation 6,896 3,731 4,820 8,823 7,194
Economic development 26,498 26,159 31,330 31,293 29,521
Intergovernmental ‐ ‐ ‐ ‐ ‐
Interest on long‐term debt 16,225 15,569 15,946 14,422 14,441
Total government activities expenses 137,256 145,362 159,205 173,330 172,571
Business‐type activities:
Water and Sewer 32,444 34,266 37,941 41,475 41,683
Solid Waste 6,664 6,417 6,833 7,059 7,441
Total Business‐type activities 39,108 40,683 44,774 48,534 49,124
Total Expenses 176,364$ 186,045$ 203,979$ 221,864$ 221,695$
Program Revenue
Governmental activities:
Charges for services:
General government 6,637$ 7,624$ 8,547$ $9,518.00 10,414$
Public safety 2,793 4,110 4,276 3,949 3,777
Public works 322 338 320 1,395 253
Community services 7,375 7,771 8,520 8,026 6,566
Parks and recreation 2,290 2,412 2,218 2,001 2,766
Economic development 430 1,209 13 3,886 3,503
Operating grants and contributions:
General government 440 747 2,595 ‐ ‐
Public safety 434 294 ‐ ‐ 11
Public works 7,612 4,589 11,123 12,459 5,884
Community services 337 216 ‐ 575 232
Parks and recreation 474 1,586 ‐ ‐ ‐
Economic development ‐ ‐ ‐ ‐ ‐
Capital grants and contributions:
Public works 29,269 36,440 24,636 10,107 19,241
Total governmental activities 58,413 67,336 62,248 51,916 52,647
Business‐type activities:
Charges for services:
Water and sewer 28,929 30,201 43,677 51,544 55,593
Solid waste 7,008 6,637 6,945 6,549 7,842
Operating grants and contributions:
Water and sewer ‐ 2,512 30 ‐ ‐
Capital grants and contributions:
Water and sewer 17,677 13,177 4,094 2,027 4,613
Total Business‐type activities 53,614 52,527 54,746 60,120 68,048
Total Program Revenue 112,027$ 119,863$ 116,994$ 112,036$ 120,695$
159 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 4
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Accrual Basis of Accounting)
Primary Government 2019 2020 2021 2022 2023
Expenses
Governmental activities:
General government 21,249$ 25,504$ 27,596$ 34,580$ 15,525$
Public safety 47,948 51,031 53,503 52,440 69,571
Public works 46,631 44,862 48,115 33,363 51,591
Community services 4,616 4,383 4,465 4,834 5,577
Parks and recreation 7,683 8,197 6,799 8,041 10,145
Economic development 33,470 28,683 30,653 39,101 41,692
Intergovernmental ‐ ‐ ‐ ‐ 8,171
Interest on long‐term debt 14,017 14,042 13,604 13,238 13,763
Total government activities expenses 175,614 176,702 184,735 185,597 216,035
Business‐type activities:
Water and Sewer 39,413 45,055 44,654 48,592 56,008
Solid Waste 7,752 7,930 8,094 7,158 7,556
Total Business‐type activities 47,165 52,985 52,748 55,750 63,564
Total Expenses 222,779$ 229,687$ 237,483$ 241,347$ 279,599$
Program Revenue
Governmental activities:
Charges for services:
General government 10,826$ 12,424$ 15,425$ 17,816$ 11,808$
Public safety 4,413 4,772 5,048 5,746 7,743
Public works 1,379 113 157 186 289
Community services 6,888 6,100 6,090 5,732 4,067
Parks and recreation 2,328 992 1,090 1,614 2,106
Economic development 1,951 460 445 ‐ 1,375
Operating grants and contributions:
General government ‐ 6,609 1,693 5,740 11,564
Public safety ‐ ‐ ‐ ‐ ‐
Public works 8,765 14,164 17,584 14,008 4,110
Community services 239 ‐ 729 368 ‐
Parks and recreation ‐ ‐ ‐ ‐ ‐
Economic development ‐ ‐ ‐ ‐ 12
Capital grants and contributions:
Public works 16,678 7,148 1,876 ‐ ‐
Total governmental activities 53,467 52,782 50,137 51,210 43,074
Business‐type activities:
Charges for services:
Water and sewer 55,696 54,710 52,649 55,352 68,700
Solid waste 8,621 7,755 8,064 6,855 7,473
Operating grants and contributions:
Water and sewer 1,497 225 ‐ 35 ‐
Capital grants and contributions:
Water and sewer 4,113 1,456 1,007 ‐ ‐
Total Business‐type activities 69,927 64,146 61,720 62,242 76,173
Total Program Revenue 123,394$ 116,928$ 111,857$ 113,452$ 119,247$
160 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 3 of 4
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018
Net (Expense)/Revenue
Governmental activities (78,843)$ (78,026)$ (96,957)$ (121,414)$ (119,924)$
Business‐type activities 14,506 11,844 9,972 11,586 18,924
Total primary government net expense (64,337)$ (66,182)$ (86,985)$ (109,828)$ (101,000)$
General Revenues and Other
Changes in Net Position
Governmental activities:
Taxes:
Property taxes 57,378$ 62,974$ 67,644$ 76,686$ 83,803$
Sales and use taxes 27,295 29,970 31,293 31,976 35,437
Franchise taxes 6,484 6,971 7,228 7,263 7,358
Investment earnings 254 491 729 622 1,651
Miscellaneous 2,399 4,149 5,957 3,108 4,691
Gain on sale of assets ‐ ‐ ‐ ‐ ‐
Transfers 1,607 2,828 6,464 2,417 3,103
Total governmental activities 95,417$ 107,383$ 119,315$ 122,072$ 136,043$
Business‐type activities:
Sales and use taxes ‐ ‐ ‐ ‐ ‐
Investment earnings 95$ 325$ 294$ 396$ 1,361$
Miscellaneous 682 219 166 66 7
Gain on sale of assets
Transfers (1,607) (2,828) (6,464) (2,417) (3,103)
Total business‐type activities (830) (2,284) (6,004) (1,955) (1,735)
Total primary government 94,587$ 105,099$ 113,311$ 120,117$ 134,308$
Change in Net Position:
Governmental activities 16,574$ 29,357$ 22,358$ 658$ 16,117$
Business‐type activities 13,676 9,560 3,968 9,631 17,189
Total primary government 30,250$ 38,917$ 26,326$ 10,289$ 33,306$
161 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 4 of 4
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000’s)
(Accrual Basis of Accounting)
2019 2020 2021 2022 2023
Net (Expense)/Revenue
Governmental activities (122,147)$ (123,919)$ (134,598)$ (134,387)$ (172,962)$
Business‐type activities 22,762 11,162 8,972 6,492 12,609
Total primary government net expense (99,385)$ (112,757)$ (125,626)$ (127,895)$ (160,353)$
General Revenues and Other
Changes in Net Position
Governmental activities:
Taxes:
Property taxes 89,930$ 97,106$ 100,075$ 101,524$ 105,407$
Sales and use taxes 34,872 34,928 40,248 44,699 47,418
Franchise taxes 7,480 7,270 6,940 6,870 7,383
Investment earnings 3,293 1,626 209 472 8,577
Miscellaneous 562 4,865 4,793 5,206 16,393
Gain on sale of assets ‐ ‐ ‐ ‐ 60
Transfers 11,364 5,460 5,548 6,079 7,142
Total governmental activities 147,501$ 151,255$ 157,813$ 164,850$ 192,380$
Business‐type activities:
Sales and use taxes ‐ ‐ ‐ ‐ 4
Investment earnings 2,947$ 1,277$ 94$ 1,161$ 6,788
Miscellaneous 2,361 13 16 45 348
Gain on sale of assets (5)
Transfers (11,364) (5,460) (5,548) (6,079) (7,142)
Total business‐type activities (6,056) (4,170) (5,438) (4,873) (7)
Total primary government 141,445$ 147,085$ 152,375$ 159,977$ 192,373$
Change in Net Position:
Governmental activities 25,354$ 27,336$ 23,215$ 30,463$ 19,418$
Business‐type activities 16,706 6,992 3,534 1,619 12,602
Total primary government 42,060$ 34,328$ 26,749$ 32,082$ 32,020$
162 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018
General fund
Non‐spendable 202$ 293$ 151$ 101$ 136$
Assigned 1,394 1,406 3,994 3,000 1,538
Unassigned 17,859 19,655 16,774 11,262 12,314
Total General Fund 19,455$ 21,354$ 20,919$ 14,363$ 13,988$
All Other Governmental Funds
Non‐spendable 209$ 173$ ‐$ 4$ ‐$
Restricted 51,754 57,768 94,411 107,916 101,810
Committed ‐ ‐ ‐ ‐ ‐
Assigned ‐ ‐ ‐ ‐ ‐
Unassigned ‐ ‐ ‐ (28) (52)
Total All Other Governmental Funds 51,963$ 57,941$ 94,411$ 107,892$ 101,758$
163 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
2019 2020 2021 2022 2023
General fund
Non‐spendable 15$ 28$ 3$ ‐$ 7$
Assigned 1,521 648 216 ‐ ‐
Unassigned 15,666 28,400 32,305 34,658 31,316
Total General Fund 17,202$ 29,076$ 32,524$ 34,658$ 31,324$
All Other Governmental Funds
Non‐spendable ‐$ ‐$ ‐$ ‐$ 11$
Restricted 100,773 131,286 135,755 152,809 107,122
Committed ‐ ‐ ‐ ‐ 9,279
Assigned ‐ ‐ ‐ ‐ 974
Unassigned (28) (27) (4,796) (3,389) (2,553)
Total All Other Governmental Funds 100,745$ 131,259$ 130,959$ 149,420$ 114,833$
164 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018
Revenues
Property taxes 57,378$ 62,922$ 67,569$ 76,562$ 83,484$
Sales and use taxes 27,295 29,970 31,293 31,976 35,437
Franchise fees 6,484 6,971 7,228 7,263 7,358
Licenses and permits 4,149 4,544 5,677 5,435 4,146
Fines and forfeitures 3,121 3,108 2,931 2,654 2,468
Charges for services 13,078 14,661 15,313 16,015 16,769
Investment earnings 254 433 728 619 1,600
Intergovernmental 2,541 3,197 15,959 16,010 8,579
Other 4,157 7,076 5,065 5,736 7,200
Total Revenues 118,457 132,882 151,763 162,270 167,041
Expenditures
General government 8,027 10,470 11,609 11,223 11,300
Public safety 29,171 32,229 36,818 40,858 41,273
Public works 8,121 10,298 13,292 17,365 16,968
Community services 3,960 3,408 4,294 4,837 4,313
Parks and recreation 7,816 5,823 6,458 6,419 5,959
Economic development 25,248 25,625 31,051 29,001 29,195
Debt service:
Principal 15,815 23,790 19,736 24,341 23,547
Interest and other charges 16,373 16,595 15,841 15,221 15,814
Bond issuance costs ‐ ‐ ‐ ‐ ‐
Capital outlay 15,536 24,471 31,982 43,860 43,474
Intergovernmental 4,307 4,792 4,847 6,937 7,168
Total Expenditures 134,374 157,501 175,928 200,062 199,011
Excess of Revenues Over
(Under) Expenditures (15,917) (24,619) (24,165) (37,792) (31,970)
Other Financing Sources (Uses)
Transfers in 16,507 17,043 26,062 28,466 24,456
Transfers out (16,967) (15,233) (20,844) (26,860) (22,266)
Bonds issued 49,560 81,258 142,701 115,718 24,223
Payment to Escrow Agent (33,182) (54,303) (89,638) (72,608) ‐
Issuance of debt ‐ leases 1,853 574 1,918 ‐ ‐
Other 4,784 3,157 ‐ ‐ ‐
Total Other Financing Sources (Uses)22,555 32,496 60,199 44,716 26,413
Net Change in Fund Balances 6,638$ 7,877$ 36,034$ 6,924$ (5,557)$
Debt Service as a Percentage of
Noncapital Expenditures 27.0% 29.9% 24.8% 25.3% 24.9%
165 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
2019 2020 2021 2022 2023
Revenues
Property taxes 90,252$ 97,106$ 100,528$ 101,524$ 105,169$
Sales and use taxes 34,872 34,928 40,248 44,699 47,418
Franchise fees 7,480 7,270 6,940 6,870 7,383
Licenses and permits 4,198 4,424 4,258 4,613 3,622
Fines and forfeitures 2,712 1,723 1,868 2,112 1,870
Charges for services 17,726 18,714 19,858 23,301 20,521
Investment earnings 3,186 1,583 208 1,006 7,804
Intergovernmental 10,329 19,480 19,880 19,982 9,836
Other 3,947 2,553 3,207 5,201 15,691
Total Revenues 174,702 187,781 196,995 209,308 219,314
Expenditures
General government 11,173 12,513 19,460 15,957 9,359
Public safety 42,716 47,218 52,191 59,493 64,526
Public works 12,596 11,693 12,483 13,957 12,962
Community services 4,219 4,452 4,249 4,764 4,938
Parks and recreation 6,065 5,483 6,102 6,704 8,749
Economic development 38,288 25,843 29,175 27,346 41,166
Debt service:
Principal 38,007 27,796 29,577 30,180 28,404
Interest and other charges 15,646 15,939 17,357 17,283 17,660
Bond issuance costs ‐ ‐ ‐ ‐ 10,285
Capital outlay 39,541 38,359 77,114 57,619 57,848
Intergovernmental 7,325 7,769 7,116 7,289 8,171
Total Expenditures 215,576 197,065 254,824 240,592 264,066
Excess of Revenues Over
(Under) Expenditures (40,874) (9,284) (57,829) (31,284) (44,753)
Other Financing Sources (Uses)
Transfers in 34,200 31,561 33,261 35,586 47,258
Transfers out (22,866) (26,101) (27,713) (29,507) (46,017)
Bonds issued 44,292 44,798 46,562 44,674 18,155
Payment to Escrow Agent (12,551) ‐ ‐ ‐ (4,376)
Issuance of debt ‐ leases ‐ ‐ ‐ ‐ 106
Other ‐ ‐ 7,174 1,155 2
Total Other Financing Sources (Uses)43,075 50,258 59,284 51,908 15,129
Net Change in Fund Balances 2,201$ 40,974$ 1,455$ 20,624$ (29,624)$
Debt Service as a Percentage of
Noncapital Expenditures 30.3% 27.6% 26.4% 25.9% 22.3%
166 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
SPENDING AND GROWTH ANAYLSIS – GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Amounts in (000's)
Expenditures 2014 2015 2016 2017 2018 2019
General government $ 8,027 $ 10,470 $ 11,609 $ 11,223 $ 11,363 $ 11,173
Public Safety 29,171 32,229 36,818 40,858 41,281 42,716
Public Works 8,121 10,298 13,292 17,365 16,998 12,596
Community Services 3,960 3,408 4,294 4,837 4,313 4,219
Parks & recreation 7,816 5,823 6,458 6,419 5,960 6,065
Economic Development 25,248 25,625 31,051 29,001 29,195 38,288
Debt service:
Principal 15,815 23,790 19,736 24,341 23,547 38,007
Interest and other charges 16,373 16,595 15,841 15,221 15,814 15,646
Bond issuance costs ‐ ‐ ‐ ‐ ‐ ‐
Capital outlay 15,536 24,471 31,982 43,860 44,321 39,541
Intergovernmental 4,307 4,792 4,847 6,937 7,168 7,325
Total 134,374$ 157,501$ 175,928$ 200,062$ 199,960$ 215,576$
Distribution of Spending
General government 6.0% 6.6% 6.6% 5.6% 5.7% 5.2%
Public Safety 21.7% 20.5% 20.9% 20.4% 20.6% 19.8%
Public Works 6.0% 6.5% 7.6% 8.7% 8.5% 5.8%
Community Services 2.9% 2.2% 2.4% 2.4% 2.2% 2.0%
Parks & recreation 5.8% 3.7% 3.7% 3.2% 3.0% 2.8%
Economic Development 18.8% 16.3% 17.6% 14.5% 14.6% 17.8%
Debt service:
Principal 11.8% 15.1% 11.2% 12.2% 11.8% 17.6%
Interest and other charges 12.2% 10.5% 9.0% 7.6% 7.9% 7.3%
Bond issuance costs 0.0%0.0%0.0%0.0%0.0%0.0%
Capital outlay 11.6% 15.5% 18.2% 21.9% 22.2% 18.3%
Intergovernmental 3.2% 3.0% 2.8% 3.5% 3.6% 3.4%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Adjusted for CPI
POPULATION 106,900 112,300 117,100 121,500 125,198 127,500
PER CAPITA 1,257$ 1,403$ 1,502$ 1,647$ 1,590$ 1,691$
167 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
SPENDING AND GROWTH ANAYLSIS – GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000’s)
(Modified Accrual Basis of Accounting)
Ten Average
Amounts in (000's)Year Compounded
Expenditures 2020 2021 2022 2023 % CHG Growth Rate
General government $ 12,513 $ 19,460 $ 15,957 $ 9,359 16.6% 1.55%
Public Safety 47,218 52,191 59,493 64,526 121.2% 8.26%
Public Works 11,693 12,483 13,957 12,962 59.6% 4.79%
Community Services 4,452 4,249 4,764 4,938 24.7% 2.23%
Parks & recreation 5,483 6,102 6,704 8,749 11.9% 1.13%
Economic Development 25,843 29,175 27,346 41,166 63.0% 5.01%
Debt service:
Principal 27,796 29,577 30,180 28,404 79.6% 6.03%
Interest and other charges 15,939 17,357 17,283 17,660 7.9% 0.76%
Bond issuance costs ‐ ‐ ‐ 10,285 0.0% 0.00%
Capital outlay 38,359 77,114 57,619 57,848 272.3% 14.05%
Intergovernmental 7,769 7,116 7,289 8,171 89.7% 6.61%
Total 197,065$ 254,824$ 240,592$ 264,066$ 96.5% 6.99%
Distribution of Spending
General government 6.3% 7.6% 6.6% 3.5%
Public Safety 24.0% 20.5% 24.8% 24.4%
Public Works 5.9% 4.9% 5.8% 4.9%
Community Services 2.3% 1.7% 2.0% 1.9%
Parks & recreation 2.8% 2.4% 2.8% 3.3%
Economic Development 13.1% 11.4% 11.4% 15.6%
Debt service:
Principal 14.1% 11.6% 12.5% 10.8%
Interest and other charges 8.1% 6.8% 7.2% 6.7%
Bond issuance costs 0.0% 0.0% 0.0% 3.9%
Capital outlay 19.5% 30.3% 23.9% 21.9%
Intergovernmental 3.9% 2.8% 3.0% 3.1%
Total 100.0% 100.0% 100.0% 100.0%
Adjusted for CPI Growth Rate
POPULATION 131,448 125,828 129,600 124,478 1.53%
PER CAPITA 1,499$ 2,025$ 1,856$ 2,121$ 5.37%
168 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year
Tax
Year Residential Commercial
Personal
Property
Less Tax Exempt
Property
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)
2020 2019 8,795,872,742 3,632,391,578 1,018,446,748 (903,424,894)
2021 2020 10,759,083,987 1,941,047,529 865,343,567 (974,936,904)
2022 2021 11,111,640,283 1,901,930,199 797,254,587 (1,020,672,002)
2023 2022 12,134,105,105 5,006,577,583 847,748,246 (500,663,865)
Notes:
(1)Assessed values presented here are for the City and Tax Increment Reinvestment Zone.
(2)Assessed value based on adjusted tax roll at year end.
169 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
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
2014 2013 (487,709,374)$ 6,996,973,518$ 0.705100 6,996,973,518$ 100%
2015 2014 (452,738,140) 7,580,556,989 0.712100 7,580,556,989 100%
2016 2015 (423,238,764) 8,464,775,289 0.705300 8,464,775,289 100%
2017 2016 (571,315,443) 9,722,252,580 0.681200 9,722,252,580 100%
2018 2017 (681,810,199) 10,563,655,075 0.685059 10,563,655,075 100%
2019 2018 (904,072,816) 10,949,412,203 0.709158 10,949,412,203 100%
2020 2019 (1,004,810,809) 11,538,475,365 0.741200 11,538,475,365 100%
2021 2020 (813,268,531) 11,777,269,648 0.720000 11,777,269,648 100%
2022 2021 (908,022,173) 11,882,130,894 0.701000 11,882,130,894 100%
2023 2022 (3,976,862,058) 13,510,905,011 0.623765 13,510,905,011 100%
Notes:
(1)Assessed values presented here are for the City and Tax Increment Reinvestment Zone.
(2)Assessed value based on adjusted tax roll at year end.
170 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 3
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per $100 of assessed value)
City of Pearland Overlapping Rates (a)
Pearland Pasadena Alvin
Independent Independent Independent Alvin
Fiscal M & OI & S Total School School School Comm Brazoria
Year Rate Rate Direct District District District College County
2014 0.215$ 0.490$ 0.705$ 1.416$ 1.350$ 1.329$ 0.194$ 0.492$
2015 0.222 0.490 0.712 1.416 1.350 1.417 0.204 0.499
2016 0.223 0.483 0.705 1.416 1.350 1.417 0.204 0.486
2017 0.241 0.440 0.681 1.416 1.350 1.450 0.192 0.457
2018 0.255 0.430 0.685 1.416 1.480 1.450 0.181 0.440
2019 0.279 0.430 0.709 1.416 1.416 1.450 0.188 0.368
2020 0.307 0.434 0.741 1.396 1.378 1.398 0.186 0.365
2021 0.305 0.415 0.720 1.319 1.383 1.398 0.183 0.392
2022 0.309 0.392 0.701 1.315 1.316 1.398 0.183 0.387
2023 0.285 0.339 0.624 1.308 1.335 1.378 0.164 0.391
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, the county property tax rates apply to all.
171 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 3
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per $100 of assessed value)
Overlapping Rates (a)
Harris Harris Harris Brazoria/
Fort Port of County County County Ft Bend
Fiscal Bend Harris Houston Flood Hospital Dept of MUD MUD
Year County County Authority Control District Education No. 1No. 17
2014 0.500$ 0.415$ 0.017$ 0.028$ 0.170$ 0.006$ 0.850$ 0.544$
2015 0.495 0.417 0.015 0.027 0.170 0.006 0.850 0.520
2016 0.486 0.419 0.013 0.027 0.170 0.005 0.848 0.460
2017 0.474 0.417 0.013 0.028 0.172 0.005 0.848 0.410
2018 0.458 0.418 0.013 0.028 0.171 0.005 0.848 0.380
2019 0.445 0.419 0.012 0.029 0.171 0.005 0.848 0.380
2020 0.445 0.407 0.011 0.028 0.166 0.005 0.848 0.360
2021 0.436 0.391 0.010 0.031 0.167 0.005 0.848 0.340
2022 0.457 0.377 0.009 0.034 0.162 0.005 0.848 0.330
2023 0.457 0.344 0.008 0.031 0.148 0.005 0.848 0.300
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, the county property tax rates apply to all.
172 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 3 of 3
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per $100 of assessed value)
Overlapping Rates (a)
Fiscal MUD MUD MUD MUD MUD MUD MUD
Year No. 18 No. 19 No. 23 No. 26 No. 28 No. 34 No. 35
2014 0.510$ 0.550$ 0.600$ 0.690$ 0.820$ 0.850$ 1.020$
2015 0.470 0.510 0.580 0.690 0.820 0.850 1.020
2016 0.390 0.450 0.540 0.690 0.820 0.820 1.020
2017 0.350 0.400 0.480 0.690 0.820 0.800 1.020
2018 0.310 0.380 0.470 0.690 0.820 0.800 1.000
2019 0.310 0.360 0.460 0.690 0.820 0.780 1.000
2020 0.290 0.350 0.460 0.690 0.820 0.750 1.000
2021 0.270 0.310 0.460 0.530 0.820 0.730 1.000
2022 0.250 0.290 0.440 0.100 0.820 0.690 1.000
2023 0.225 0.270 0.440 0.090 0.760 0.620 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, the county property tax rates apply to all.
173 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Taxes Levied Collections
Fiscal for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2014 49,096,473$ 48,802,720$ 99.40% 246,723$ 49,049,443$ 99.9%
2015 53,463,919 53,175,174 99.46% 186,651 53,361,825 99.8%
2016 58,829,331 58,545,664 99.52% 136,250 58,681,914 99.7%
2017 64,977,413 64,579,894 99.39% 220,965 64,800,859 99.7%
2018 70,633,922 70,216,601 99.41% 226,461 70,443,062 99.7%
2019 75,680,458 75,276,247 99.47% 222,017 75,498,264 99.8%
2020 83,055,340 82,617,167 99.47%‐ 82,617,167 99.5%
2021 86,120,247 85,751,572 99.57%‐ 85,751,572 99.6%
2022 87,070,808 86,638,471 99.50%‐ 86,638,471 99.5%
2023 87,756,604 87,297,753 99.48%‐ 87,297,753 99.5%
Source: Brazoria County Tax Office
Note: Taxes levied based on adjusted tax roll.
Collected within the
Fiscal Year of the Levy Total Collections to Date
174 City of Pearland, Texas 2023 ACFR
175 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2023 2014
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
HCA Healthcare Corp $111,400,270 1 0.82% $18,981,110 10 0.27%
Pearland Town Center LP 108,926,840 2 0.81% 66,757,240 20.95%
Shadow Creek Parkway 91,242,827 3 0.68% 27,100,030 60.39%
Mar Shadow Creek LP 84,000,000 40.62%
Lonza INC Houston 64,693,542 50.48%
Zeller 60,286,566 60.45%
WRPV XIV SC Pearland LLC 60,142,320 70.45%
Azure Townes LP 53,000,000 80.39%
Brazoria‐SCR Associates LLC &
Shadow Creek Associates 53,000,000 80.39%
SPUS8 Shadow Creek 51,900,000 10 0.38%
Weatherford U.S., Inc. 69,914,860 11.00%
Global Pipe Supply 51,522,280 30.74%
Amreit SPF Shadow Creek, LP 47,959,306 40.69%
Centerpoint Energy, Inc. 32,832,920 50.47%
Discovery Shadow Creek 25,330,000 70.36%
Shadow Kirby LTD Partnership 25,000,000 80.36%
Walmart Real Estate BUS TR 23,179,360 90.33%
Total 738,592,365$ 5.47% 388,577,106$ 5.55%
Source: Brazoria County Appraisal District
176 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
TAXABLE SALES BY CATEGORY
Last Ten Fiscal Years
(in thousands of dollars)
2014 2015 2016 2017 2018
Retail Trade 871,813$ 961,565$ 999,033$ 1,042,624$ 1,056,690$
Accommodations & Food Services 240,961 272,540 298,860 316,070 341,462
Real Estate/Rental/Leasing 61,392 48,024 32,786 44,540 44,467
Manufacturing 51,274 41,175 40,192 39,860 39,133
Wholesale Trade 42,915 41,491 48,114 49,702 56,347
Other Services (Except Public Admin) 38,539 40,373 40,181 41,711 43,812
Information 29,602 33,614 33,449 35,824 39,187
Construction 26,350 32,168 24,655 21,363 27,310
Arts, Entertainment & Recreation 14,692 15,555 16,020 16,344 17,127
Mining, Quarrying, Oil and Gas 14,520 7,285 8,141 11,682 11,125
Admin/Support/Waste Mgmt/
Remediation 12,963 12,808 12,725 14,489 16,918
Professional/Scientific/Technical 10,531 11,307 12,177 6,689 8,371
Health Care/Social Assistance 3,205 5,007 2,307 3,751 3,355
Finance, Insurance 1,483 2,226 2,182 2,108 1,906
Agriculture, Forestry, Fishing 728 1,609 2,112 3,471 2,496
Transportation/Warehousing 406 285 372 560 678
Educational Services 350 393 406 439 512
Utilities 7 ‐ ‐ ‐ ‐
Total 1,421,731$ 1,527,425$ 1,573,712$ 1,651,227$ 1,710,896$
City direct sales tax rate a 1.00% 1.00% 1.00% 1.00% 1.00%
Source: Source: State Comptroller's Office: https://mycpa.cpa.state.tx.us/allocation/HistSales
a The City direct sales tax rate includes the City only and excludes the Pearland Economic Development Corp.
Calendar Year
177 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
TAXABLE SALES BY CATEGORY
Last Ten Fiscal Years
(in thousands of dollars)
2019 2020 2021 2022 2023
Retail Trade 1,030,791$ 1,056,636$ 1,252,310$ 1,295,200$ 1,290,850$
Accommodations & Food Services 375,329 343,407 435,702 473,006 503,718
Real Estate/Rental/Leasing ‐ 39,671 30,393 71,531 85,434
Manufacturing 32,215 20,889 21,765 28,015 25,555
Wholesale Trade 58,202 47,894 61,786 63,330 25,493
Other Services (Except Public Admin) 42,928 41,106 50,165 61,008 71,273
Information 34,340 22,832 26,644 29,577 28,941
Construction 33,948 31,595 36,189 41,704 40,043
Arts, Entertainment & Recreation ‐ 15,182 19,263 21,370 23,515
Mining, Quarrying, Oil and Gas 3,794 2,287 2,528 5,519 8,098
Admin/Support/Waste Mgmt/
Remediation ‐ 17,681 18,258 18,933 18,525
Professional/Scientific/Technical 30,721 8,852 11,512 10,593 12,896
Health Care/Social Assistance ‐ 4,386 3,175 4,072 4,472
Finance, Insurance 43,987 1,853 3,094 2,036 1,663
Agriculture, Forestry, Fishing ‐ 2,049 3,654 2,737 2,462
Transportation/Warehousing 763 538 234 326 344
Educational Services 5,103 390 1,017 1,085 1,295
Utilities ‐ 5 284 511 607
Total 1,692,121$ 1,657,253$ 1,977,973$ 2,130,553$ 2,145,185$
City direct sales tax rate a 1.00% 1.00% 1.00% 1.00% 1.00%
Source: Source: State Comptroller's Office: https://mycpa.cpa.state.tx.us/allocation/HistSales
a The City direct sales tax rate includes the City only and excludes the Pearland Economic Development Corp.
Calendar Year
178 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 3
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Governmental Activities
General
General Obligation Revenue Unamortized
Fiscal Obligation Bonds ‐Certificates Revenue Bonds ‐Premiums/ Financed Leases SBITAs
Year Bonds Private of Obligation Bonds Private (Discounts) Purchases Payable Payable
2014 246,791$ ‐$ 56,505$ 80,186$ ‐$ 10,122$ 4,344$ ‐$ ‐$
2015 261,998 ‐ 50,030 77,012 ‐ 16,185 3,629 ‐ ‐
2016 262,865 ‐ 50,070 91,370 ‐ 18,793 4,229 ‐ ‐
2017 283,140 ‐ 37,505 97,215 ‐ 25,832 1,838 ‐ ‐
2018 278,175 ‐ 41,750 98,025 ‐ 23,844 1,282 ‐ ‐
2019 269,520 ‐ 51,620 85,065 ‐ 26,639 761 ‐ ‐
2020 268,680 ‐ 66,405 81,445 ‐ 29,963 541 ‐ ‐
2021 260,840 ‐ 86,220 73,235 ‐ 38,710 381 ‐ ‐
2022 265,615 ‐ 101,660 64,810 ‐ 36,213 131 42 ‐
2023 246,090 4,420 89,950 56,160 12,185 29,644 ‐ 109 6,370
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
179 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 3
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Business‐Type Activities
Permanent Unamortized
Fiscal Revenue Certificates Improvement Premiums/ Financed Leases SBITAs
Year Bonds of Obligation Bonds (Discounts) Purchases Payable Payable
2014 102,517$ ‐$ 12,865$ 592$ 169$ ‐$ ‐$
2015 108,099 ‐ 11,305 659 82 ‐ ‐
2016 173,570 ‐ 9,775 850 375 ‐ ‐
2017 196,200 ‐ 7,360 9,395 257 ‐ ‐
2018 214,705 ‐ 4,845 10,897 173 ‐ ‐
2019 232,415 ‐ 4,480 16,808 86 ‐ ‐
2020 335,435 ‐ 4,110 16,168 ‐ ‐ ‐
2021 400,840 ‐ 3,020 16,917 ‐ ‐ ‐
2022 382,785 45,710 2,710 18,575 ‐ ‐ ‐
2023 363,085 45,710 2,380 16,073 ‐ ‐ ‐
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
180 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 3 of 3
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Total Percentage Total
Fiscal Primary of Personal Per
Year Government Income Capita
2014 516,105$ 13.2% 4,709$
2015 531,014 12.6% 4,561
2016 613,913 13.2% 5,243
2017 660,759 15.3% 5,438
2018 675,714 13.2% 5,397
2019 689,413 13.4% 5,490
2020 804,767 15.1% 6,296
2021 882,184 14.6% 6,696
2022 920,273 15.3% 7,085
2023 874,198 14.9% 7,023
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
181 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(dollars in thousands, except per capita)
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
2014 2013 303,296$ (4,643)$ 298,653$ 4.3% 7.8% 2,794$
2015 2014 312,028 (4,536) 307,492 4.1% 7.6% 2,738
2016 2015 312,935 (5,034) 307,901 3.6% 6.6% 2,629
2017 2016 320,645 (8,276) 312,369 3.2% 7.3% 2,571
2018 2017 319,925 (5,911) 314,014 3.0% 6.1% 2,508
2019 2018 321,140 (6,797) 314,343 2.9% 5.9% 2,465
2020 2019 335,085 (5,427) 329,658 2.9% 5.5% 2,508
2021 2020 347,060 (5,427) 341,633 2.9% 5.7% 2,636
2022 2021 367,275 (3,436) 363,839 3.1% 6.3% 2,807
2023 2022 340,460 (3,370) 337,090 2.5% 5.8% 2,708
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.
b Population and personal income data can be found in demographic and economic statistics table.
182 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 2
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2023 and 2022
Debt as of
September 30,
Taxing Jurisdiction 2023 Percent Amount
Alvin Community College District $ 21,940,000 23.60% $ 5,177,840
Alvin Independent School District 936,195,000 27.76% 259,887,732
Brazoria County 207,948,313 19.70% 40,965,818
Brazoria County MUD No. 6 6,435,000 0.29% 18,662
Brazoria County MUD No. 17 14,655,000 100.00% 14,655,000
Brazoria County MUD No. 18 14,870,000 100.00% 14,870,000
Brazoria County MUD No. 19 17,320,000 100.00% 17,320,000
Brazoria County MUD No. 21 22,750,000 1.69% 384,475
Brazoria County MUD No. 22 60,660,000 1.90% 1,152,540
Brazoria County MUD No. 23 11,940,000 100.00% 11,940,000
Brazoria County MUD No. 28 53,905,000 100.00% 53,905,000
Brazoria County MUD No. 34 29,470,000 100.00% 29,470,000
Brazoria County MUD No. 35 6,960,000 100.00% 6,960,000
Brazoria‐Fort Bend Counties MUD No. 1 37,125,000 100.00% 37,125,000
Clear Creek Independent School District 993,980,000 0.95% 9,442,810
Fort Bend County 954,413,703 0.64% 6,108,248
Fort Bend County Drainage District 23,615,000 0.64% 151,136
Friendswood Independent School District 189,905,000 0.04% 75,962
Harris County (a) 1,977,981,319 0.27% 5,340,550
Harris County Dept. of Education 13,865,000 0.27% 37,436
Harris County Flood Control District 1,009,015,000 0.27% 2,724,341
Harris County Hospital District 70,970,000 0.27% 191,619
Harris‐Brazoria Counties MUD No. 509 56,005,000 100.00% 56,005,000
Houston Community College District 446,665,000 0.24% 1,071,996
Houston Independent School District 2,077,325,000 0.27% 5,608,778
Lower Kirby Pearland Management District 33,860,000 100.00% 33,860,000
Pasadena Independent School District 760,255,000 2.62% 19,918,681
Pearland Independent School District 358,840,000 78.37% 281,222,908
Port of Houston Authority 445,749,397 0.27% 1,203,523
San Jacinto Community College District 537,657,427 1.14% 6,129,295
Total estimated Overlapping 922,924,350
The City $ 340,460,000 100.00% 340,460,000
Total Direct and Estimated Overlapping Debt $ 1,263,384,350
Population 124,478
Per Capita Debt ‐ Direct and Overlapping Debt $ 10,149
___________________
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.
Overlapping
183 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 2
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2023 and 2022
Debt as of
September 30,
Taxing Jurisdiction 2022 Percent Amount
Alvin Community College District $ 26,515,000 22.94% $ 6,082,541
Alvin Independent School District 879,220,000 26.26% 230,883,172
Brazoria County 56,490,000 19.70% 11,128,530
Brazoria County MUD No. 6 10,290,000 0.31% 31,899
Brazoria County MUD No. 17 17,670,000 100.00% 17,670,000
Brazoria County MUD No. 18 19,435,000 100.00% 19,435,000
Brazoria County MUD No. 19 21,215,000 100.00% 21,215,000
Brazoria County MUD No. 21 24,545,000 1.70% 417,265
Brazoria County MUD No. 22 45,085,000 1.90% 856,615
Brazoria County MUD No. 23 11,900,000 100.00% 11,900,000
Brazoria County MUD No. 28 4,530,000 100.00% 4,530,000
Brazoria County MUD No. 34 54,840,000 100.00% 54,840,000
Brazoria County MUD No. 35 34,665,000 100.00% 34,665,000
Brazoria‐Fort Bend Counties MUD No. 1 55,505,000 100.00% 55,505,000
Clear Creek Independent School District 1,011,865,000 0.92% 9,309,158
Fort Bend County 547,784,567 0.64% 3,505,821
Fort Bend County Drainage District 24,530,000 0.64% 156,992
Friendswood Independent School District 196,190,000 0.03% 58,857
Harris County (a) 1,093,033,215 0.27% 2,951,190
Harris County Dept. of Education 6,320,000 0.27% 17,064
Harris County Flood Control District 713,005,000 0.27% 1,925,114
Harris County Hospital District 81,540,000 0.27% 220,158
Harris‐Brazoria Counties MUD No. 509 41,165,000 100.00% 41,165,000
Houston Community College District 469,970,000 0.24% 1,127,928
Houston Independent School District 2,336,360,000 0.16% 3,738,176
Lower Kirby Pearland Management District 28,510,000 100.00% 28,510,000
Pasadena Independent School District 714,955,000 2.62% 18,731,821
Pearland Independent School District 401,235,000 79.26% 318,018,861
Port of Houston Authority 469,434,000 0.27% 1,267,472
San Jacinto Community College District 551,322,427 1.14% 6,285,076
Total estimated Overlapping 906,148,710
The City $ 415,695,000 100.00% 415,695,000
Total Direct and Estimated Overlapping Debt $ 1,321,843,710
Population 129,600
Per Capita Debt ‐ Direct and Overlapping Debt $ 10,199
___________________
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.
Overlapping
184 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
PLEDGE REVENUE COVERAGE
Last Ten Fiscal Years
Amounts in (000’s)
Net
Less: Revenue
Fiscal Gross Operating Available for
Year Revenues Expenses Debt Service Principal Interest Total Coverage
2013 29,607$ 17,423$ 12,184$ 3,615$ 4,724$ 8,339$ 1.46
2014 29,341 17,707 11,634 3,765 4,584 8,349 1.39
2015 30,744 18,767 11,977 3,920 4,622 8,542 1.40
2016 44,163 21,167 22,996 7,630 4,918 12,548 1.83
2017 52,005 24,178 27,827 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
2020 56,221 26,128 30,093 15,935 6,867 22,802 1.32
2021 52,681 25,550 27,131 18,055 9,743 27,798 0.98
2022 56,590 26,245 30,345 19,700 7,372 27,072 1.12
2023 75,836 31,664 44,172 18,895 6,975 25,870 1.71
Water & Sewer Revenue Bonds
Debt Service
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.
185 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal
Year
Population
(A)
Personal
Income
(in $000's)
Per Capita
Personal
Income
Median Age
(B)
Education
Level in Years
of Schooling
School
Enrollment
(B)
Unemployment
Rate
(C)
2014 106,900 3,822,958$ 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%
2020 131,448 6,015,060 45,760 36.1 14.2 28,568 6.7%
2021 129,600 6,015,060 46,413 36.1 14.2 28,568 4.1%
2022 129,600 5,758,128 44,430 35.3 14.2 28,568 3.2%
2023 124,478 5,860,050 47,077 36.2 14.2 28,867 3.9%
(A) Pearland Economic Development Corporation, 2022 American Community Survey five‐year estimate (S0101).
(B) Pearland Economic Development Corporation, 2022 American Community Survey five‐year estimate (DP03).
(C) Bureau of Labor Statistics, Local Area Unemployment Statistics (Laus) Report, 2023
186 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees * Rank Employment Employees Rank Employment
Pearland ISD 2,700 1 4.07% 2,472 1 5.42%
Kelsey Seybold 1,221 2 1.84% 850 2 1.86%
Lonza 950 3 1.43%
City of Pearland 850 4 1.28% 614 3 1.35%
Alvin ISD 753 5 1.13% 352 5 0.77%
Memorial Hermann 550 6 0.83%
HCA (Pearland Medical Center) 450 7 0.68%
Dover Energy 240 8 0.36%
Kemlon 240 9 0.36% 390 4 0.86%
Third Coast 225 10 0.34%
Davis Lynch (Forum Energy)‐ 300 6 0.66%
Packaging Service Co.‐ 230 7 0.50%
Texas Honing ‐ 190 8 0.42%
TurboCare ‐ 175 9 0.38%
Weatherford ‐ 160 10 0.35%
Total 8,179 12.32% 5,733 12.57%
Sources:
Pearland Economic Development Corp.
20142023
*For 2023, the above list does not include retail employers, such as Wal‐Mart, Super Target,
Lowe's, Home Depot, HEB.
187 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
FULL‐TIME EQUIVALENT CITY GOVERNEMENT
EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Governmental Activities:
General Government 45 52 62 52 54 55 66 64 98 94
Public Safety 313 339 370 370 379 390 408 424 433 442
Public Works 60 67 54 65 73 85 80 76 60 64
Community Services 53 40 42 50 46 46 48 47 49 49
Parks and Recreation 99 88 89 84 89 90 94 97 98 114
Business Type Activities:
Water & Sewer 101 105 106 109 114 108 117 134 148 147
Component Unit:
Economic Development 9 555666677
Total 680 696 728 735 761 780 819 848 893 917
Source: City Budget
188 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 1 of 6
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2014 2015 2016 2017 2018
GENERAL GOVERNMENT
Finance
Number of purchase orders 2,640 2,377 2,159 589 1,811
Number of budget transfers 548 489 362 750 552
Number of invoices paid 21,486 22,212 26,675 24,548 21,547
Average number of employees paid per month 1,548 1,523 1,536 1,704 1,641
Human Resources
Number of hires 98 131 194 170 163
Number of applications received 8,507 9,132 10,420 13,010 15,452
Legal
Number of resolutions and ordinances prepared 243 271 279 276 290
Information Technology
Average monthly service requests 838 854 871 894 325
Number of PC's supported 575 649 680 706 715
PUBLIC SAFETY
Police
Part 1 Crimes 2,098 2,411 2,202 2,193 1,962
Traffic Crashes 1,590 1,761 1,728 1,813 2,150
Arrests 6,705 5,781 5,044 4,865 4,844
Citizen Calls for Service 29,744 31,474 31,744 31,945 31,579
Traffic Stops 43,783 33,472 35,764 37,025 33,101
Priority 1 Average Response Time 3:50 4:16 4:11 3:40 4:03
Fire
Total number of arson incidents 7 1 7 4 2
Fires investigated 25 20 27 19 15
Total annual inspections 1,644 1,640 1,244 2,607 3,123
Total code violation cases 2,140 4,596 2,560 2,302 2,034
Total calls for service 15,048 17,407 9,904 9,965 10,666
Patients treated 6,936 7,180 6,117 4,610 6,273
Sources: Various city departments.
189 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 2 of 6
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2019 2020 2021 2022 2023
GENERAL GOVERNMENT
Finance
Number of purchase orders 1,673 1,724 2,090 2,126 1,837
Number of budget transfers 509 472 475 609 409
Number of invoices paid 17,641 16,482 17,387 16,424 17,635
Average number of employees paid per month 1,665 1,713 1,800 845 866
Human Resources
Number of hires 183 161 212 242 259
Number of applications received 17,382 16,610 12,226 12,450 11,542
Legal
Number of resolutions and ordinances prepared 340 307 310 308 342
Information Technology
Average monthly service requests 400 347 380 335 297
Number of PC's supported 732 782 810 794 765
PUBLIC SAFETY
Police
Part 1 Crimes 2,175 1,934 1,876 2,325 2,282
Traffic Crashes 2,150 1,719 1,857 1,850 1,942
Arrests 4,604 2,613 3,018 3,903 3,752
Citizen Calls for Service 32,548 30,341 31,092 33,842 33,523
Traffic Stops 33,559 21,764 26,806 30,710 28,766
Priority 1 Average Response Time 3:53 3:59 4:00 4:29 4:13
Fire
Total number of arson incidents 2 4 9 8 2
Fires investigated 23 60 47 54 83
Total annual inspections 1,263 1,155 569 589 623
Total code violation cases 2,387 1,577 1,866 1,321 798
Total calls for service 10,720 10,587 12,677 13,114 13,548
Patients treated 7,181 7,618 8,891 7,788 10,398
Sources: Various city departments.
190 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 3 of 6
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued) 2014 2015 2016 2017 2018
PUBLIC WORKS
Fleet Maintenance
Fleet maintenance jobs completed 3,860 3,887 1,452 1,797 1,382
Preventative maintenance performed 610 437 750 742 663
Other Public Works
Fuel issued (gallons) 353,890 332,745 265,669 331,005 315,941
Street sweeping (miles) 871 648 1,160 1,112 1,815
Street signs maintained/replaced 993 1,477 1,370 1,179 1,471
Total work orders completed 21,212 25,873 31,163 25,688 24,529
PARKS AND RECREATION
All Parks and recreation
ROW maintained ‐ acres 251 550 459 327 345
Trees maintained 6,313 6,430 7,922 8,355 8,523
Acres of city property mowed 1,035 1,116 632 664 443
Total number of park work orders received 180 147 190 114 147
Parkland ‐ acres 138 138 337 388 392
Total number of special events held 20 19 16 19 17
Total number of tournaments held 3 ‐ 26 ‐ 5
Number of recreation classes offered (1)272 306 384 265 868
Average monthly attendance (all locations) (2)21,366 14,371 19,636 16,814 24,035
Sources: Various city departments.
Information not presented was not available at time of publication.
(1) In FY2020 and FY2021, recreation classes were cancelled due to COVID‐19.
(2) In FY2020 and FY2021, attendance was down due to COVID‐19.
191 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 4 of 6
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued) 2019 2020 2021 2022 2023
PUBLIC WORKS
Fleet Maintenance
Fleet maintenance jobs completed 1,998 1,632 1,704 1,699 1,219
Preventative maintenance performed 856 645 721 784 340
Other Public Works
Fuel issued (gallons) 323,734 351,123 277,230 375,002 397,177
Street sweeping (miles) 497 564 453 671 663
Street signs maintained/replaced 1,511 4,638 662 856 459
Total work orders completed 20,791 17,696 17,431 16,153 5,171
PARKS AND RECREATION
All Parks and recreation
ROW maintained ‐ acres 404 381 299 353 334
Trees maintained 8,873 9,223 10,873 13,688 14,030
Acres of city property mowed 523 523 561 561 817
Total number of park work orders received 55 19 22 51 65
Parkland ‐ acres 547 547 547 547 547
Total number of special events held 23 13 11 35 44
Total number of tournaments held 12 18 19 9 11
Number of recreation classes offered (1)908 289 237 1,735 2,705
Average monthly attendance (all locations) (2)19,518 9,661 9,872 33,371 21,416
Sources: Various city departments.
Information not presented was not available at time of publication.
(1) In FY2020 and FY2021, recreation classes were cancelled due to COVID‐19.
(2) In FY2020 and FY2021, attendance was down due to COVID‐19.
192 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 5 of 6
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued) 2014 2015 2016 2017 2018
COMMUNITY SERVICES
Animal Control
Animal Services Calls for Service 5,822 5,230 5,484 5,153 4,699
Animal Shelter Live Release % 48% 53% 54% 56% 56%
Inspection Services
Total building inspections 28,434 36,497 37,206 34,880 36,774
Total permits issued 13,972 18,186 14,612 13,075 8,894
Number of plans reviewed 1,185 1,584 1,349 1,278 1,971
Municipal Court
Number of trials (3)839 856 443 656 567
Number of charges (3)23,182 19,223 17,611 16,334 15,463
Warrants cleared (3)9,050 7,476 7,525 8,463 5,801
WATER & SEWER
Distribution and Collection
Fire hydrant maintenance and inspections (4)837 612 854 186 114
Backed up sewer repairs 334 305 497 545 308
Water mains repaired 111 189 120 102 126
Water Production
Water produced ‐ wells
(in millions of gallons) 2,470 1,933 2,190 2,417 3,024
Surface Water Purchased
(in millions of gallons) 2,133 2,276 2,517 2,584 2,545
Billing & Collections
Annual meter reads 414,499 428,265 445,154 461,502 467,910
Number of bills 388,338 400,662 417,312 471,549 445,446
Wastewater Treatment
Wastewater treated
(in millions of gallons) 2,493 3,067 3,367 3,455 3,308
Sources: Various city departments.
Information not presented was not available at time of publication.
(3) In FY2020 and FY2021, COVID‐19 impacted Municipal Court operations.
(4) Prior to FY2020, fire hydrant maintenance and inspections was contracted out.
193 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS Page 6 of 6
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued) 2019 2020 2021 2022 2023
COMMUNITY SERVICES
Animal Control
Animal Services Calls for Service 4,582 4,596 5,237 4,420 2,612
Animal Shelter Live Release % 55% 80% 94% 93% 94%
Inspection Services
Total building inspections 36,481 30,781 29,525 27,919 22,848
Total permits issued 7,270 5,545 11,066 10,794 8,365
Number of plans reviewed 2,419 2,196 1,926 2,052 1,619
Municipal Court
Number of trials (3)664 390 233 506 175
Number of charges (3)19,020 9,577 11,351 13,159 11,222
Warrants cleared (3)6,095 3,757 3,873 4,866 3,879
WATER & SEWER
Distribution and Collection
Fire hydrant maintenance and inspections (4)87 2,358 903 1,412 75
Backed up sewer repairs 196 233 178 60 277
Water mains repaired 125 114 121 252 180
Water Production
Water produced ‐ wells
(in millions of gallons) 2,333 3,816 2,211 2,939 2,809
Surface Water Purchased
(in millions of gallons) 2,754 2,975 2,506 2,533 3,002
Billing & Collections
Annual meter reads 469,499 469,908 486,717 464,691 491,661
Number of bills 449,933 452,465 460,147 482,741 473,196
Wastewater Treatment
Wastewater treated
(in millions of gallons) 3,775 3,577 3,737 3,380 3,785
Sources: Various city departments.
Information not presented was not available at time of publication.
(3) In FY2020 and FY2021, COVID‐19 impacted Municipal Court operations.
(4) Prior to FY2020, fire hydrant maintenance and inspections was contracted out.
194 City of Pearland, Texas 2023 ACFR
195 City of Pearland, Texas 2023 ACFR
CITY OF PEARLAND, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
PUBLIC SAFETY
Police
Police stations 1111111111
Police vehicles 161 143 186 194 209 211 210 201 202 203
Police K9s ‐245555445
FARO Laser Scanning System(1) ‐‐11111111
Pole Camera System(1)‐‐‐‐‐‐1133
RKT GPS System for crash recon ‐‐‐‐‐‐‐‐1 ‐
DJI Zenmuse P1 Camera (Drone)‐‐‐‐‐‐‐‐1 ‐
Mavic 2 Enterprise Drones ‐‐‐‐‐‐‐‐5 ‐
SWAT Negotiations Control System ‐‐‐‐‐‐‐‐1 ‐
Ballistic Shield ‐‐‐‐‐‐‐‐1 ‐
Animal Services
Animal Services building (shelter) 1111111111
Animal Services vehicles (2) 0 10 10 10 11 11 11 11 11 11
Fire
Fire stations 6667656666
Fire vehicles 26 26 42 56 60 61 56 55 41 45
Ambulances (1)97991010991011
PUBLIC WORKS
Streets (miles) (2)844 842 936 928 940 978 978 971 971 980
Vehicle inventory (3)375 372 451 385 338 434 502 443 626 653
Traffic signals 81 73 87 91 96 97 100 104 109 115
PARKS AND RECREATION
Developed acreage (4)138 168 334 388 392 443 458 458 458 547
Pools 3333322222
Outdoor basketball courts 6666688888
Soccer fields 12 12 18 12 14 12 12 11 13 13
Activity buildings 3333344444
Baseball/softball fields 4 4 6 14 16 16 16 16 17 17
WATER AND SEWER
Water Production
Water wells 10 10 10 10 10 10 10 10 10 10
Pumping stations 3333333322
Ground storage tanks 15151515151515161616
Elevated towers 6666666666
Wastewater
Treatment plants 5555565555
Lift stations 76 73 74 72 78 69 69 68 68 68
Distribution and Collection
Water mains (miles) 488 509 537 546 551 553 553 538 545 571
Sanitary sewers (miles) 415 433 440 448 456 459 459 453 455 470
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) Purchased in FY16. System used to scan accident/crime scenes for full 3D image of scene.
(2) Purchased in FY20. Includes a pole camera and an under the door camera.
(3) Beginning in FY15, Animal Services moved to Police Department.
(4) Beginning in FY14, EMS was rolled into the Fire Department.