HomeMy WebLinkAboutR2025-068 20250512Docusign Envelope ID: C9FA8FF2-2CDA-4BC2-9309-FE82F8D5E057
RESOLUTION NO. R2025-68
A Resolution of the City Council of the City of Pearland, Texas, accepting the
City's annual comprehensive financial report for fiscal year 2024 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 2024, 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 2024.
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 12th day of May, A.D., 2025.
ATTEST:
DocuSigned by: :
FRAN
9CC2253CES A1 FFf4-15...
GUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
-DocuSigned by:
E13CA99S&Ba-F4B6...
DARRIN M. COKER
CITY ATTORNEY
DocuSigned by:
J. KEVIN OLE
MAYOR
City of PearLancl, Texas
tio
Annual Comprehensive
Financial Report
PLANNING
PREPARING
Fiscal year
ended in
September 30, 2024
CITY OF PEARLAND, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended
September 30, 2024
Prepared by:
Finance Department
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
Page
Introductory Section
Letter of Transmittal
Principal Officials xx
Organizational Chart xxi
GFOA Certificate of Achievement xxii
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 81
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual
- Pearland Economic Development Corporation 82
Notes to Required Supplementary Budget Information 83
Schedule of Changes in Net Pension Liability and Related Ratios - Texas Municipal Retirement
System 84
Schedule of Contributions — Texas Municipal Retirement System 85
Schedule of Changes in the Total OPEB Liability and Related Ratios —Texas Municipal
Retirement System Supplemental Death Benefits Fund 87
Schedule of Changes the Total OPEB Liability and Related Ratios — City of Pearland
Retirement Health Care Plan 88
Other Supplementary Information:
Non -major Governmental Funds:
Combining Balance Sheet — Non -major Governmental Funds 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Non -major Governmental Funds 104
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 112
Special Revenue Funds:
Hotel/Motel Occupancy Tax Fund 113
Municipal Court Security Fund 114
City Wide Donation Fund 115
Court Technology Fund 116
Street Assessment Fund 117
Park Donations Fund 118
Tree Trust Fund 119
Parks Financial Assistance Donations Fund 120
Police State Seizure Fund 121
Police Federal Seizure Fund 122
Community Safety Fund 123
Parks & Recreation Development Fund 124
Sidewalk Fund 125
Drainage Maintenance Fund 126
Grant Fund 127
CDBG Grant Fund 128
CDBG Disaster Recovery Fund 129
Disaster Recovery Fund 130
Hazard Mitigation Fund 131
Coronavirus Relief Fund 132
ARPA Fund 133
Opioid Settlement Fund 134
Traffic Impact Improvement Fund 135
Truancy Prevention and Diversion Fund 136
Municipal Jury Fund 137
Municipal Channel (PEG) Fund 138
U of H Fund 139
Regional Detention Fund 140
Infrastructure Reinvestment Fund 141
Combining Statement of Net Position — Internal Service Funds 144
Combining Statement of Revenues, Expenses and Changes in Net Position —
Internal Service Funds 146
Combining Statement of Cash Flows — Internal Service funds 148
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS (continued)
Statistical Section (Unaudited) 153
Financial Trends:
Net Position by Component 154
Changes in Net Position 156
Fund Balances of Governmental Funds 160
Changes in Fund Balances of Governmental Funds 162
Revenue Capacity:
Spending and Growth Analysis — Governmental Funds 164
Assessed Value and Estimated Actual Value of Taxable Property 166
Direct and Overlapping Property Tax Rates 168
Property Tax Levies and Collections 171
Principal Property Taxpayers 173
Taxable Sales by Category 174
Debt Capacity:
Outstanding Debt by Type 176
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt
Per Capita 179
Direct and Overlapping Governmental Activities Debt 180
Pledged Revenue Coverage 182
Demographic and Economic Information:
Demographic and Economic Statistics 183
Principal Employers 184
Operating Information:
Full-time Equivalent City Government Employees by Function/Program 185
Operating Indicators by Function/Program 186
Capital Asset Statistics by Function/Program 193
INTRODUCTORY SECTION (UNAUDITED)
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Tel: 281.652.1600
pearlandtx.gov
April 21, 2025
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, 2024, 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, 2024. 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 hold office for a period
of three consecutive years. Council members are limited to two full consecutive terms in office,
and there is no term limitation on the office held by the Mayor. The City Manager is appointed by
Council and is responsible for recommending a budget, implementation of City Council priorities,
keeping the City Council and community informed during the year, making recommendations, and
day-to-day management of all City operations.
City of Pearland, Texas 2024 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 City delivery of services. Moreover,
the community is fast-growing. Additional population due to Pearland's multi -faceted
attractiveness increased from 18,000 residents in 1990 to an estimated 132,900 residents
according to Pearland's Community Development Planning Division based on residential building
permits. That's an increase of 638% over thirty-five 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 for 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, for
the purpose of financing its capital projects and the City is empowered to levy a property tax on
real property within its boundaries.
Activities of the general, debt service, water and sewer, solid waste, capital project funds, and
special revenue funds such as hotel/motel tax are included in the City's annual appropriated
budget. Capital project funds are budgeted for project length. The legal level of control for each
budget is at the fund level, which is to say that total expenditures for each fund should not exceed
total budgeted expenditures for that fund. The City Manager is authorized to transfer budgeted
amounts within and among departments. The City Council must approve any budget amendment
that increases appropriations by fund. The City amends the budget 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 the purposes of development and redevelopment in the Zone
Area, better known as Shadow Creek Ranch. The City participates in the Zone by contributing a
portion of tax increments produced in the Zone to the Tax Increment Fund. Both component units
are considered blended component units and have been included as major funds in the
Governmental Funds.
ii City of Pearland, Texas 2024 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 2024, including the major
development projects in Lower Kirby and the State Highway 35 corridor, the recruitment of
Mission Building Systems and the expansion of Brask Inc. -NEELA.
The total of new, non-residential construction permitted during the fiscal year was approximately
$762 million, an increase of 222.8% in value from fiscal year 2023's $342 million. New single-
family housing permits totaled 180, down 11.76% from the previous fiscal year. One multi -family
permit was issued in fiscal year 2024 for Delta Pearland, formally known as Elation, a 358-unit
project including 4 Live Workspaces. State law prevents the city from requesting single-family
residential valuation during the permitting process but building permit revenues increased by
$447,800 or approximately 17.5% as compared to fiscal year 2023 revenue collections.
Pearland's unemployment rate was 3.8% in September 2024, down from 4% in September 2023.
Through the most recently available data, the rate is continuing its downward path to 3.5% as of
December 2024 (https://ycharts.com/indicators/pearland tx unemployment rate). Those rates
compare to the rates for the same time periods in Brazoria County of 4.4%, 4.4%, and 4.1%
respectively (https://ycharts.com/indicators/brazoria county tx unemployment rate). The City
continues year over year to meet fund policy minimums and manage operating expenses.
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 FY 2024, the City's federal grant funded expenditures exceeded $750,000 and a Federal
Single Audit is required. State -funded programs did not result in expenditures over the statutory
threshold (also, $750,000), so no State Single Audit is required.
iii City of Pearland, Texas 2024 ACFR
Federal Grants and Assistance*
The programs that make up the City's estimated federal expenditures applicable to Single Audit
requirements in FY 24 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
$773,256
U.S. Department of Justice
Public Safety
$185,770
U.S. Department of Transportation
Transportation
$2,277,627
U.S. Department of the Treasury
COVID-19 Relief
$98,215
U.S. Environmental Protection Agency
Water Quality
$4,406,699
U.S. Department of Homeland Security
Fire Protection
$566,402
Executive Office of the President
Drug Task Force
$17,105
Total Estimated Federal Expenditures
$8,325,044
*State pass -through entities may be involved in the disbursement of funds to the City.
**Unaudited Schedule of Expenditures of Federal Awards (SEFA) — 2/26/2025.
Over the past two fiscal years, the amount of grant funds expended have significantly decreased,
in FY22 the City noted $75,737,082 of expenditures, in FY23 the City noted $20,901,077 of
expenditures and in FY24 the City noted $8,325,044 in expenditures. These decreases have been
due to several factors including the completion of several state funded transportation projects, the
completion of the Surface Water Treatment Plant, and the final expenditures of the ARPA grant
funding received in the wake of the COVID-19 pandemic. The amount expended in FY24 is
reflective of those factors.
State Grant Funding
For FY 2024, State -issued grant funding assistance came from the Texas Commission on Law
Enforcement (TCOLE) for officer training and the Office of the Governor's Criminal Justice
Division for Bullet Resistant Shields. The expenditure for FY 24 totals $264,740, 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 FY 24.
iv City of Pearland, Texas 2024 ACFR
Regional and State of Texas Economy
Houston is the world's energy capital, capital of an oil and gas industry that is in constant flux. At
this writing, a plunge in new home construction, the ongoing war in Ukraine, inflation, 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 $74.00 per barrel in 2025.
According to the Greater Houston Partnership's The Economy at a Glance (July 2024), the
region's economy has continued to grow, though at a more moderated pace. Over the past year,
81,700 jobs have been added, bringing total employment to a record 3,452,600 as of May 2024.
However, job growth has slowed compared to the strong post -pandemic recovery.
Unemployment briefly rose to 4.6 percent in early 2024 due to seasonal patterns but has since
settled at 3.8 percent, remaining below historical averages. The labor force continues to expand,
with 86,000 new workers joining over the past year. Construction activity has increased
significantly, and exports continue to rise. Inflation has eased, and home prices have stabilized,
benefiting growing communities throughout the region.
While some industries, such as construction and professional services, continue to expand,
others, including durable goods manufacturing and energy, remain weaker. Economic indicators
suggest continued growth, though at a slower pace than in previous years. Despite these
challenges, the region's strong labor market, increasing trade, and ongoing infrastructure
investment are expected to support continued resilience and economic stability in the coming
months.
Long -Term Financial Planning
The City adopts a one-year operating budget, including a five-year capital improvement program
(CIP). Even though a one-year budget is adopted, the budget implements strategies, both
financial and operational, to meet existing challenges and to plan ahead.
The City's adopted (September 9, 2024) Five -Year CIP for fiscal years 2025 through 2029 totals
$629.2 million. The large and varying CIP for public investments of drainage, parks, facilities,
streets, water, and wastewater positions City infrastructure for serving the population and
businesses that are here and yet to come.
The 2025-2029 CIP document completes the balance of the $162 million bond program approved
by the voters in May 2007. It also includes an $80.0 million bond referendum approved in May
2019 and $181.3 million bond referendum approved in May 2023.
Funding from projects is supported by non -debt sources ($63.9 million), leveraged outside funds
($80.4 million), tax -supported debt ($425.5 million), and water/sewer-supported enterprise fund
debt repaid by user fees ($226.6 million). The ratio of outstanding property tax -supported Debt to
taxable assessed valuation decreased slightly from the previous year but remains below 5% at
about 2.28%.
For non -enterprise general obligations, the Debt Service Fund can meet current and future
obligations based on the City's Multi -Year Forecast and Five -Year CIP where needed. Issuance
of debt is factored into funding sources, based on the Five -Year CIP. The City's property tax rate
for the FY 2025 budget is $0.635000 of which $0.28062 cents is for actual debt service and
$0.01938 cents is for rebates to in -city MUD districts but considered as debt service component.
The Debt Service component, inclusive of in -City MUD district rebates, for the FY 2025 budget
was $0.3000.
v City of Pearland, Texas 2024 ACFR
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 13.1% increase in fiscal year 2023 and a 14% increase in fiscal year 2024. 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 7% increase in the FY25 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 expansion of plants, distribution and collection lines, and a
variety of modernizations to meet 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
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 it becomes one of the largest suburbs in the
Houston area. Some of the major initiatives 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
will maintain a connected historical data framework and strive for proactive, intentional, and
consistent communication, ensuring clarity on decisions and initiatives for all audiences, both
internal and external.
vi City of Pearland, Texas 2024 ACFR
Safe Community
Making Pearland a welcoming place by ensuring a safe environment and providing efficient Public
Safety services for residents, businesses and visitors.
Personal safety is a key means of both attracting new residents and retaining existing ones in
Pearland; if citizens don't feel safe, they will not come nor will they stay. The Pearland Police
Department continues to focus on the strategic priority of Safe Community.
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. The City has two professional crime analysts,
experts in data analysis and communication who work closely with Criminal Investigations and
Patrol operations.
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
2024, the department continued their focus on innovative tactics by creating the Real Time Crime
Center. This facility utilizes existing assets such as the Drone as a First Responder technology
and Flock ALPR cameras to provide crucial information in real time to aid in a fast, effective
response and increased abilities in apprehending suspects.
vii City of Pearland, Texas 2024 ACFR
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. In 2021,
the department launched its own Police and graduated the first class of cadets in early 2022. The
fifth class of the Pearland Police Academy will graduate in March 2025. Additionally, the Training
Division provided over 52,000 training hours last year, including internal personnel and attendees
from over 180 outside agencies.
In Fiscal Year 2023, the Police Department achieved Texas Chief of Police Association
Accreditation, an accomplishment only 10% of police agencies in Texas have obtained. The
process to receive accreditation status spanned over several years, solidifying the Police
Department's compliance with 170 Texas Law Enforcement Best Practices. The TCPA
Accreditation is the gold standard for Texas law enforcement and highlights the department's
dedication to providing the highest level of professionalism to citizens through effective delivery
of services, risk reduction and protection of individual's rights.
viii City of Pearland, Texas 2024 ACFR
The Animal Services achieved a 95%
live release rate for Fiscal Year 2024.
This was achieved through the
continued focus on adoption and
rescue programs. Additionally, this
unit was awarded a Part -Time
Veterinarian in Fiscal Year 2024 to
bring essential medical services for the
animals in-house. This staffing addition
paired with utilizing the surgical suite in
the Shari D. Coleman Animal Shelter
will allow for all cats and dogs to be
sterilized before adoption.
Safe Community also includes our Fire Department. October 5, 2023, was a harrowing day in our
history as Pearland Fire Department experienced a downed firefighter during a MAYDAY event
while fighting a one-story residence fire. The increased focus on fire/rescue/EMS training proved
to be the difference as PFD members saved one of their own in only 42 seconds. The quick
actions of those on scene was a direct reflection of the over 40,000 hours of intense training PFD
hosted during the year including participants from over 20 states. This renewed focus of back to
the basics training initiatives set the tone for this successful outcome. PFD is setting the standard
regionally and nationally as a trendsetting and progressive training destination focusing on
advanced skills, tactics, and leadership learning to continue advancing the all -hazard emergency
services we provide to our community.
ix
City of Pearland, Texas 2024 ACFR
In FY24, the department was approved for one ladder truck, and one ambulance to continue the
program of replacing an aging fleet and continually move towards a comprehensive apparatus
replacement program.
Our Emergency Management
Program continues to grow, finalizing the
city's Hazard Mitigation Plan and
implementing many lessons and
strategies learned from Hurricane
Harvey and Winter Storm Uri. 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 improve over
the last four years. The achievement is due primarily to the addition of Fire Stations and staffing
of operations with 138 full-time firefighters who also provide Emergency Medical Services as
certified EMT and Paramedic professionals. 138 is an increase of three full-time (FTE) positions
added to Operations in FY24.
The City maintains the highest rating from the Insurance Services Office, Inc. (ISO), a Public
Protection Class (PPC) 1 for the incorporated city limits of Pearland. ISO ratings are for a series
of factors, recognizing the integrated nature of fire safety prevention and response, when
required. The ISO upgrade reflects their assessment of significant number of improvements
made, and currently in progress, in Communications, Fire Department and Public Works since
2015. The improved rating will promote lower insurance premiums for homeowners and
businesses and contribute to economic development by promoting Pearland as a safe community
for business and residential development.
In 2024 the Pearland Fire Department became the 33rd fire Department in the state to receive
the Texas Fire Chief's Best Practices Designation. This is an intense evaluation process that
requires the department to administer a 360 degree look at all facets of the department's
operations including training, response, and policies and procedures. After the review, a Fire
Chief cadre from around the state came on site for multiple days to evaluate the department and
test the validity of our programs. Pearland is only one of 16 municipalities who have completed
the rare trifecta of achieving Best
Practices designations by both their police department and fire department from their respective
State Chief Associations, as well as being an ISO-1 rated community. The level of public safety
in our city is second to none.
x City of Pearland, Texas 2024 ACFR
In addition, future Firehouse #7 located on Bailey Rd. was approved by voters in the 2023 bond
election referendum. In addition to constructing Firehouse 7, the city will be ordering a new ladder
truck to be housed at Firehouse #7 in Fiscal Year 2025 due to current apparatus build times of
38-46 months. Firehouse #7 will also require an additional 24 firefighter positions (FTE) to
adequately staff the facility, fire truck and ambulance. This will increase total Fire Operations
staffing to 162.
Connected Community
Fostering a sense of belonging and encouraging opportunities to connect through multifaceted
events, services, amenities, and gathering spaces.
The City's Convention and Visitors Bureau (CVB) unveiled a new name, Visit Pearland, clarifying
the brand and mission of the organization moving forward. In fiscal year 2024, Pearland
experienced continued growth in visitors and visitor spending with revenue and lodging metrics
performing above pre -pandemic levels.
Highlights include Pearland's recognition as one of the first 10 cities in Texas to receive the
prestigious Tourism Friendly Texas Certified Community certification from the Office of the
Governor. Visit Pearland led the implementation of the City's first Cultural Arts Master Plan with
unanimous adoption by City Council in July 2024. Visit Pearland supported tourism -forward
initiatives with 35 events in a variety of market segments in FY24 generating 3,695 room nights.
A focus on sports tourism and partnerships with nationally recognized sports organizations led to
1,700 room nights with an estimated $5M economic impact. Over 17K visitors attended 15 leisure -
based events in Pearland ranging from cultural festivals, music and film festivals and well as
holiday events and markets. Visit Pearland works assertively to promote Pearland to various
market segments. Pearland's visitor economy generated $1,915,179 in hotel occupancy tax
revenue in 2024. The city is positioned as an attractive destination and generates interest by
regional, event planners, sports organizations and leisure visitors.
The Parks and Recreation department is an
essential part of the Pearland community. The
department protects, maintains, and operates
26 parks and facilities, exceeding 546 acres of
City owned parkland and over 16 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.
xi City of Pearland, Texas 2024 ACFR
This year, the Department made remarkable progress in enhancing our parks, programs, and
services, all thanks to a dynamic team and the continued support of the community. A few notable
achievements include the development of the Strategic Athletic Operational Plan to enhance cost
recovery, the launch of Pearland's first pickleball league (which tripled in size), and the successful
completion of parks Capital Improvement
projects, like the natatorium
recapitalization, adding new shade
canopies and improved irrigation across
our parks.
The Delores Fenwick Nature Center
(DFNC) saw a 19% increase in visitation,
including visitors from over 70 Texas
cities and 11 countries. The DFNC was
featured on Good Morning America's
Main Street USA segment. In
conservation, we released 86 Texas
Horned Lizards into the wild and
partnered with Rice University to study
local bat populations.
Dedicated to being recognized leaders in the parks & recreation profession, four staff members
achieved the Certified Parks & Recreation Executive certification. We also hosted 17 athletic
tournaments and increased department -wide volunteer engagement by 25%, while growing event
sponsorship by 64%.
Looking ahead, we are excited about our continued efforts to improve the quality of life for
Pearland residents to include work with the Forever Parks Foundation to launch a $4 million
Capital Campaign for an inclusive playground at Independence Park.
xii City of Pearland, Texas 2024 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 performance of the private investment goals.
Throughout 2024, PEDC continued to coordinate implementation efforts for the Pearland
Prosperity community strategic plan, which was updated and adopted by Pearland City Council,
the PEDC Board of Directors, and the Pearland Chamber of Commerce Board in early 2024. At
the center of the Pearland Prosperity framework is one overarching Community Goal that broadly
identifies the desired outcomes of Pearland's holistic economic development effort: Pearland will
be the community of choice for People and Business in our region. This goal can be pursued
through a number of Strategic Recommendations grouped into eleven high-level Key Initiatives:
Places to Gather, Old Town Revitalization, Infill and Redevelopment, Mobility and Infrastructure,
Parks and Recreation, Cultural Arts, Site Development, Diverse Talent, Workforce Development,
Pearland innovation Hub and Business Development.
The following highlights a few of PEDC's FY
2024 business development projects.
Breaking ground in 2024, Levey Logistics Park
marks a major milestone in the district's
development. Since 2022, PEDC, the City of
Pearland, and the Lower Kirby Pearland
Management District have collaborated with
Levey Group through a public -private
partnership to advance infrastructure and
mobility improvements in the area. With an
estimated $69 million in capital investment, this
38-acre business park, located generally at the
southeast corner of Beltway 8 and Almeda
School Road, will introduce two Class A tilt -wall
multi -use office and warehouse buildings totaling 661,000 square feet. As the largest industrial
development by square footage in Lower Kirby, this project enhances the district's capacity to
support manufacturing and distribution operations.
xiii City of Pearland, Texas 2024 ACFR
Growth continued in the State Highway 35 Corridor with the development of Edge Industrial
Park, a 36-acre business park led by Stewart Development. Strategically located at the southwest
corner of SH 35 and McHard Road, the park will feature multiple buildings totaling more than
200,000 square feet of flex office, warehouse, and manufacturing space. The PEDC has worked
with Stewart Development since 2023 to bring this project to fruition. In March 2024, PEDC, in
partnership with the City of Pearland, finalized a development agreement with
the firm, reinforcing the city's commitment to economic expansion.
Mission Building Systems bringing a significant new manufacturing presence to the area. The
company has begun construction on a 124,769-square-foot facility, including 5,530 square feet of
office space, on a 16.7-acre site along West Orange Street, east of State Highway 35. This
expansion is expected to generate approximately 100 new jobs.
xiv City of Pearland, Texas 2024 ACFR
Brask Inc. - NEELA, a key player in
Pearland's industrial landscape since its
initial recruitment by the PEDC in 2009, is
making a significant investment in its future.
The company is expanding its footprint with
a new 40,000 square -foot facility,
reinforcing its commitment to the
community while creating 25 new jobs and
retaining 48 existing positions. This $14
million capital investment
underscores Pearland's continued growth
as a hub for advanced manufacturing and
innovation. With construction well
underway, Brask celebrated a major milestone with a topping -off ceremony in October 2024,
marking a key step in the project's progress.
PEDC remains committed to fostering a thriving business community, and at the heart of this
mission is the Pearland Innovation Hub. As a unique resource in the Greater Houston area, PIH
empowers entrepreneurs, startups, and small businesses with the tools they need to succeed. In
2024, PIH launched a new online portal, expanding access to valuable resources, networking
opportunities, and technical assistance. The revised technical assistance program now offers
Pearland businesses and residents up to ten hours of free, project -based assistance from industry
professionals. Beyond technical advising, PIH offers a growing learning library with over 100
hours of business content, a grants database, and an online community board for year-round
collaboration. PIH also launched a series of networking and educational events designed to foster
connections and provide business owners with key insights.
Sustainable Infrastructure
Building quality of life on a well -planned and maintained foundation of essential water,
transportation, flooding infrastructure, appealing amenities, and long-term value.
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 9,
2024) Five -Year CIP 2025-2029
totals $629.2 million. Projects
include drainage ($123.2 million), parks ($51.2 million), facilities ($121.2 million), streets ($197.7
million), water ($59.2 million) and wastewater ($76.4 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).
xv City of Pearland, Texas 2024 ACFR
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 in design or in construction. Completed projects are Fire Station 4, Shari
Colman Animal Shelter, Piper Road Drainage, Mimosa Acres Drainage, Parks Maintenance, West
Lea Drainage, and Willowcrest subdivision. Projects in construction are Bailey Road expansion
and upcoming projects consist of Sherwood subdivision reconstruction and Hickory Slough
detention basin.
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
Mykawa Road Widening (BW 8 to
FM 518), Smith Ranch Road
Expansion (Hughes Ranch to
Broadway), 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 #7, Fire Station #11, 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 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.
xvi City of Pearland, Texas 2024 ACFR
Charged with planning, establishing, and maintaining an effective transportation system, the City
of Pearland is involved in numerous activities to face infrastructure challenges. The City is
involved in regional efforts for long-range transportation planning and funding. The Mayor a
member of H-GAC's Transportation Policy Council (TPC), with the City Manager serving as an
alternate. The Director of Engineering & Public Works serves on the Transportation Advisory
Committee (TAC), a sub -committee of the TPC and a member of the Transportation Improvement
Program (TIP) Subcommittee.
The prior TIP calls provided major funding for ongoing and upcoming projects in and around
Pearland as depicted below.
Project
Project
Sponsor
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
$32,380,531
$47,847,000
2020
CR 59
Brazoria
County
Kirby to Kingsley
$1,954,000
$7,816,000
$9,770,000
2022
Safe Routes
to School
City of
Pearland
Various
$1,208,400
$2,553,600
$3,762,000
2022
Smith Ranch
Road
City of
Pearland
Hughes Ranch
Road to FM 518
$9,724,409
$3,899,128
$13,623,537
2023
CR 58
Brazoria
County
Savannah Pkwy to
CR 48
$1,223,200
$4,892,800
$6,116,000
2023
FM 521
Fort Bend
County
FM 2234 to SH 6
$15,045,400
$60,181,600
$75,227,000
2024
Clear Creek
Trail
City of
Pearland
Hughes Road to U
of H
$3,785,872
$6,684,128
$10,470,000
2024
MyKawa
Road
City of
Pearland
FM 518 to BW 8
$17,526,623
$2,237,680
$19,764,303
2026
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 to widen FM518 to six
lanes between Cullen Boulevard and McLean Road and has funding in place to start construction
in 2027. 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 t as well as general mobility (roads and trails) throughout the
City.
xvii City of Pearland, Texas 2024 ACFR
Resilient Finances
Provide long-term community value through trusted stewardship and responsible financial
management.
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. The City also
prepares a Multi -Year Forecast as part of the budget process 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. The Capital Improvement Plan includes a five-year forecast.
While inflation continues to impact the world, the local economy has remained strong and healthy.
Local Pearland sales taxes have continued to grow, seeing an increase in sales tax revenue in
FY 2024 of 1.5% over FY 2023
Property Tax revenue has continued to grow in FY24 and is expected to remain strong in FY25.
Property taxes provide a timing buffer from the standpoint that the FY 2024 budget relies upon
values determined by the three county appraisal districts as of January 1, 2023. Likewise values
as of January 1, 2024, will provide the General Fund and Debt Service Fund revenues for FY
2025. 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, 2024, will not come into play until the City's fiscal
year 2025.
xviii City of Pearland, Texas 2024 ACFR
AWARDS AND ACKNOWLEDGEMENTS
The City of Pearland has a longstanding record of financial excellence and transparency,
consistently earning prestigious awards and certifications. Annually, the Government Finance
Officers Association (GFOA) recognizes the City's Comprehensive Annual Financial Report with
the Certificate of Achievement for Excellence. This year marks Pearland's 49th consecutive
participation, demonstrating adherence to both accepted financial principles and legal standards.
The City's commitment to clarity and efficiency in financial reporting ensures that its reports meet
the rigorous criteria set forth by the GFOA, reinforcing trust and accountability.
In addition to the GFOA's accolades, Pearland received the Government Treasurers'
Organization of Texas (GTOT) Certificate of Distinction for its Investment Policy. Valid for two
years, this award acknowledges Pearland's adherence to the Public Funds Investment Act and
prudent public investing standards. Furthermore, the City has earned the GFOA's Distinguished
Budget Presentation Award for 38 consecutive years, underscoring its ability to craft budget
documents that excel as policy guides, financial plans, operational roadmaps, and communication
tools.
Continuing its commitment to transparency, Pearland will submit its sixth Popular Annual
Financial Report (PAFR) to the GFOA for the fiscal year 2024. Moreover, in 2024, the City earned
the Texas Comptroller Transparency Star in Traditional Finances, Debt Obligations, Public
Pensions, and Contracts & Procurement. These stars recognize Pearland's exemplary efforts in
disclosing financial and operational data, fostering public trust. The City acknowledges the
dedicated service of its Finance Department's accounting staff and expresses gratitude to the
Mayor and City Council for their steadfast support in ensuring responsible financial management.
Respectfully submitted,
Trent Epperson
City Manager
Victor Brownlees
Assistant City Manager
Chad Randall
Assistant City Manager
Ron Fraser
Deputy City Manager
Melissa Saxton
Director of Finance
xix City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
PRINCIPAL OFFICIALS
September 30, 2024
Elected Officials
Kevin Cole
Tony Carbone
Joseph Koza
Mona Chavarria
Clint Byrom
Layni Cade
Chad Thumann
Rushi Patel
Audit Committee Members
Kevin Cole
Tony Carbone
Mona Chavarria
City Management
Trent Epperson
Ron Fraser
Victor Brownlees
Chad Randall
Melissa Saxton
Joel Hardy
Matt Buchanan
J. Jack Taylor
Frances Aguilar
Lorenzo Wingate
Chad Randall
Johnny Spires
Carry Capers
Vance Wyly
Tracy Rohrbacher
Joshua Lee
Darrin Coker
Daniel McGhinnis
David Sohns
Letitia Farnie
Position
Mayor
Mayor Pro -Tenn — Position 2
Councilmember— Position 1
Councilmember— Position 3
Councilmember — Position 4
Councilmember— Position 5
Councilmember— Position 6
Councilmember— Position 7
Position
Term Expires
May
2026
2027
2025
2026
2027
2025
2025
2026
Mayor
Councilmember— Position 2
Councilmember— Position 3
Position
City Manager
Deputy City Manager
Assistant City Manager
Assistant City Manager
Director of Finance
Head of External Affairs
President PEDC
Fire Chief
City Secretary
Director of Public Works
Interim Director of Human Resources
Police Chief
Director of Parks & Recreation
Director of Community Development
Executive Director, CVB
Director of Communications
City Attorney
Chief Information Officer
Director of Utilities
Municipal Court Judge
xx City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
ORGANIZATIONAL CHART AS OF SEPTEMBER 30, 2024
Staff Organization
Pearland Citizens
Mayor & C'ty Council
Legal
Municipal Court Judge
City Manager
Communications
Information Technology
Engineering and Public Works
Pearland Water
Deputy City Manager
City Secretary
Municipal Court
Human Resources
Fire
Police
Office of Emergency Management
Assistant City Manager
Community Development
Finance
Visit Pearland
Office of Management and Budget
Parks and Recreation
xxi City of Pearland, Texas 2024 ACFR
G
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pearland
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2023
cieuQ P- 7t =a
Executive Director/CEO
xxii City of Pearland, Texas 2024 ACFR
FINANCIAL SECTION
1 City of Pearland, Texas 2024 ACFR
2 City of Pearland, Texas 2024 ACFR
In
whitleypenn
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
Houston Office
3737 Buffalo Speedway
Suite 1600
Houston, Texas 77098
713.621.1515 Main
whitleypenn.com
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, 2024, 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, 2024, 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.
� WE ARE AN INDEPENDENT MEMBER OF
HLB
THE GLOBAL ADVISORY
AND ACCOUNTING NETWORK
3 City of Pearland, Texas 2024 ACFR
To the Honorable Mayor and Members of City Council
City of Pearland, Texas
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 certain 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.
4 City of Pearland, Texas 2024 ACFR
To the Honorable Mayor and Members of City Council
City of Pearland, Texas
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 certain 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 April 21, 2025 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.
UJh;.1-1O7 QA,..., L LP
Houston, Texas
April 21, 2025
5 City of Pearland, Texas 2024 ACFR
6 City of Pearland, Texas 2024 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, 2024. 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 - xix of this report), and the statistical section (Pages 151 - 193 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, 2024, by $980.8 million (net position). Of this amount, $799.5
million is invested in capital assets, net of related capital debt and $120.1 million is restricted for capital
improvements, debt service, community development programs, public safety, economic development, tourism,
and grants. The remaining $61.2 million net position is unrestricted.
• The City's total net position increased by $34.8 million due to increases in utility billing charges, property taxes, sales
taxes, and investment earnings.
• As of September 30, 2024, the City's governmental funds reported combined ending fund balances of $230.2 million,
an increase of $79.8 million in comparison to the prior year. Approximately $193.3 million of the $230.2 million is
considered restricted fund balance and primarily consists of $68.6 million for economic development and $107.5
million for capital projects.
• As of September 30, 2024, the fund balance of the General Fund was $35.0 million, all of which was unassigned,
except for $67,320 which was nonspendable for prepaid items. Unassigned fund balance represents 33% 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).
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.
7 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
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.
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 enterprise funds 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 funds are 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 Fund, which is considered to be a major fund, and the Solid Waste Enterprise Fund, the only nonmajor
enterprise fund. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary
fund financial statements. Individual fund data for the internal service funds are provided in the form of combining
statements in the combining and individual fund statements and schedules section of this report. The basic proprietary fund
financial statements can be found on pages 28 through 33 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the
data provided in the government -wide and fund financial statements. The notes to the financial statements can be found
beginning on page 35 of this report.
8 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required
supplementary information. The City presents budgetary comparison schedules for the General Fund and the Pearland
Economic Development Corporation; and the City's progress in funding its obligations to provide pension and OPEB benefits
to its employees. Required supplementary information can be found immediately after the notes to the financial statements
beginning on page 81.
The combining and individual fund statements and schedules referred to earlier in connection with non -major governmental
funds and internal service funds are presented immediately following the required supplementary information on budgetary
comparisons, and pensions and OPEB. Combining and individual fund statements and schedules can be found beginning on
page 96 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 $980.8 million at the close of the most recent fiscal
year. By far the largest portion of the City's net position (82%) 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.
Assets and
Deferred Outflows
Assets:
Current
Capital assets
Total assets
Deferred outflows
Total Assets and
Deferred Outflows
Liabilities and
Deferred Inflows
Liabilities:
Current
Long-term
Total liabilities
Deferred inflows
Total Liabilities and
Deferred Inflows
Net Position
Net investment in
capital assets
Restricted
Unrestricted
Total Net Position
Comparative Statement of Net Position
September 30, 2024 and 2023
Net Position
Governmental Activities
Business -type Activities
2024 2023 2024 2023
$ 289,303,118
929,860,070
1,219,163,188
19,293,114
1,238,456,302
$ 195,812,584
927,270,327
1,123,082,911
26,323,538
Totals
2024
$ 241,443,280 $ 133,625,571 $ 530,746,398
645,993,336 608,850,188 1,575,853,406
887,436,616
2,830,485
1,149,406,449 890,267,101
742,475,759
3,639,491
2,106,599,804
22,123,599
746,115,250 2,128,723,403
2023
$ 329,438,155
1,536,120,515
1,865,558,670
29,963,029
1,895,521,699
25,674,098 17,851,486 40,900,802 28,089,006 66,574,900 45,940,492
530,316,736 497,797,185 545,586,105 433,683,878 1,075,902,841 931,481,063
555,990,834 515,648,671 586,486,907 461,772,884 1,142,477,741 977,421,555
5,055,399 4,463,363 435,043 320,929 5,490,442 4,784,292
561,046,233 520,112,034 586,921,950 462,093,813 1,147,968,183 982,205,847
556,467,386 520,908,660 243,043,048 221,204,781 799,510,434 742,113,441
89,753,944 79,137,368 30,316,807 34,269,076 120,070,751 113,406,444
31,188,739 29,248,387 29,985,296 28,547,580 61,174,035 57,795,967
$ 677,410,069 $ 629,294,415 $ 303,345,151 $ 284,021,437 $ 980,755,220 $ 913,315,852
9 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Comparative Statement of Activities
Year Ended September 30, 2024 and 2023
Changes in Net Position
Governmental Activities
Business -type Activities Totals
2024 2023 2024 2023 2024 2023
Revenues
Program Revenues:
Charges for services $ 33,014,891 $ 27,387,227 $ 83,670,189 $ 76,172,785 $ 116,685,080 $ 103,560,012
Operating grants and
contributions 1,360,765 15,685,275 - - 1,360,765 15,685,275
General Revenues:
Property taxes 124,388,106 105,406,761 124,388,106 105,406,761
Sales and use taxes 48,234,929 47,417,820 3,876 3,553 48,238,805 47,421,373
Franchise taxes 7,216,855 7,383,276 7,216,855 7,383,276
Investment earnings 12,867,621 8,576,993 7,328,169 6,788,422 20,195,790 15,365,415
Gain on sale
of capital assets 26,362 60,493 26,362 60,493
Miscellaneous 2,371,228 16,393,373 123,566 347,698 2,494,794 16,741,071
Total Revenues 229,480,757 228,311,218 91,125,800 83,312,458 320,606,557 311,623,676
Expenses
General government 27,354,920 15,525,231 27,354,920 15,525,231
Public safety 73,557,177 69,571,000 73,557,177 69,571,000
Public works 56,711,098 51,590,615 56,711,098 51,590,615
Community services 5,233,856 5,576,750 5,233,856 5,576,750
Park and Recreation 11,800,047 10,145,289 - - 11,800,047 10,145,289
Economic Development 19,773,477 41,692,122 - - 19,773,477 41,692,122
Intergovernmental 4,097,319 8,170,718 - - 4,097,319 8,170,718
Interest on debt 13,128,593 13,762,987 13,128,593 13,762,987
Water and sewer - 65,977,019 56,013,469 65,977,019 56,013,469
Solid waste - 8,187,340 7,555,660 8,187,340 7,555,660
Total Expenses 211,656,487 216,034,712 74,164,359 63,569,129 285,820,846 279,603,841
Change in Net Position
Before Transfers 17,824,270 12,276,506 16,961,441 19,743,329 34,785,711 32,019,835
Transfers 4,759,566 7,142,355 (4,759,566) (7,142,355) -
Change in Net Position 22,583,836 19,418,861 12,201,875 12,600,974 34,785,711 32,019,835
Net Position, Beginning,
as Restated 654,826,233 609,875,554 291,143,276 271,420,463 945,969,509 881,296,017
Net Position - Ending $ 677,410,069 $ 629,294,415 $ 303,345,151 $ 284,021,437 $ 980,755,220 $ 913,315,852
The City's overall net position increased by $34.8 million from the prior fiscal year. The reasons for this change are discussed
in the following sections for governmental activities and business -type activities.
Governmental Activities. Governmental activities net position increased by $22.6 million, from a restated net position of
$654.8 million to an ending net position of $677.4 million. Key elements of this change are as follows.
• Property taxes increased by $19.0 million when compared to the previous year due to an increase in appraised values
and an increase to the overall property tax rate.
• Sales taxes increased by $0.8 million when compared to the previous year.
• Investment earnings increased by $4.3 million.
• Total expenses decreased by $4.4 million from the previous fiscal year.
10 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Business -type Activities. Business -type activities net position increased by $12.2 million, from a restated net position of
$291.1 million to an ending net position of $303.3 million. Key elements of this change are as follows
• Charges for services increased by $7.5 million due to a 14% increase in rates in addition to approximately 0.5%
increase in connections.
• Investment earnings increased by $0.5 million.
• Total expenses increased by $10.6 million from the previous fiscal year.
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 $230.2 million. Of this amount, $28.7 million is unassigned
and available for day-to-day operations of the City; $111,370 is nonspendable; $193.3 million is restricted; $6.4 million is
committed by City Council; and $1.7 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 $35.0 million, while total fund balance increased by $3.7 million to an ending balance of $35.0 million. This
change was due primarily to an increase in property tax revenues due to increasing appraised values and the M&O tax rate.
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 33% of total general fund expenditures.
The fund balance of the City's debt service fund decreased by $1.9 million during the current fiscal year to an ending fund
balance of $5.7 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 increased by $72.0 million during the current fiscal year to an ending fund
balance of $113.9 million. This change was due to the issuance of $42.5 million in general obligation bonds and $43.6 million
in certificates of obligation, less reductions for the continued spending on bond projects.
The fund balance of the Pearland Economic Development Corporation increased by $4.9 million during the current fiscal year
to an ending fund balance of $39.6 million. This change was due to sales tax revenues exceeding the amounts expended or
transferred for economic development.
The fund balance of the Tax Increment Reinvestment Zone #2 decreased by $0.5 million during the current fiscal year to an
ending fund balance of $8.9 million. This change was due to economic development expenditures, plus amounts required to
be transferred to the Development Authority of Pearland, exceeding property tax revenues in the Tax Increment
Reinvestment Zone #2.
The fund balance of the Development Authority of Pearland increased by $5.4 million during the current fiscal year to an
ending fund balance of $18.6 million. This change was due to the transfers from other funds exceeding the required debt
service payments.
11 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
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 $11.7 million during the current fiscal year to an ending net
position of $296.5 million. This change was due to a 14% increase in rates in addition to approximately 0.5% increase in
connections, 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 $3.9 million in appropriations between
the adopted and amended budget which is only a 3.7% amendment to total adopted expenditures.
Final budget compared to actual results. Actual revenues of $113.4 million were more than final budgeted amounts by $2.1
million due to more than anticipated revenues generated from various charges for services. Actual expenditures of $106.7
million were less than final budgeted amounts by $2.4 million primarily due to less than anticipated public works
expenditures.
Capital Assets and Debt Administration
Capital Assets. At the end of fiscal year 2024, the City's governmental activities and business -type activities had invested
$929.9 million and $646.0 million, respectively, in a variety of capital assets and infrastructure, as reflected in the following
schedule. This represents a net increase of a decrease of $18.7 million over the end of last fiscal year for the governmental
activities and an increase of $30.0 million over the end of last fiscal year for business -type activities.
Land
Construction in progress
Infrastructure
Buildings and improvements
Machinery and equipment
Furniture and fixtures
Contractual water rights
Lease assets
SBITA assets
Total Capital Assets
Capital Assets
Governmental Activities
2024 2023
$ 51,483,358
80,792,550
598,074,902
156,237,673
14,001,020
24,711,276
$ 51,483,358
90,271,072
604,352,456
160,028,279
9,525,422
25,804,153
144,863 108,551
4,414,428 6,975,452
929,860,070 $ 948,548,743
Business -type Activities Totals
2024 2023
10,343,706
319,721,713
283,303,639
20,006,276
516,947
15,961
12,085,094
645,993,336
10,343,706
270,713,695
300,382,418
20,703,541
342,567
25,938
13,460,162
615,972,027
2024 2023
61,827,064
400,514,263
881,378,541
176,243,949
14,517,967
24,727,237
12,085,094
144,863
4,414,428
1,575,853,406
$
61,827,064
360,984,767
904,734,874
180,731,820
9,867,989
25,830,091
13,460,162
108,551
6,975,452
1,564,520,770
Construction in progress at year-end represents numerous ongoing projects, the largest of which relate to streets, drainage,
and water/sewer projects. City's capital assets can be found in Note 4 to the financial statements.
Long -Term Debt. At the end of the current fiscal year, the City had total outstanding debt of $492.7 million in the
governmental activities and $540.6 million in the business -type activities.
General obligation bonds
Certificates of obligation
Revenue bonds
Unamortized premium
Leases
Financed purchases
SBITAs
Compensated absences
Total Outstanding Debt
Outstanding Debt
Governmental Activities
2024 2023
$ 271,525,000
120,000,000
57,620,000
27,558,856
148,819
1,218,141
4,494,536
10,162,217
$ 492,727,569
Business -type Activities
2024 2023
250,510,000 $
89,950,000
68,345,000
29,643,687
108,923
6,369,647
9,801,250
1,245,000
176,565,000
344,190,000
17,668,426
$ 2,380,000
45,710,000
363,085,000
16,073,123
900,841 831,182
454,728,507 $
540,569,267
428,079,305
Totals
2024 2023
$ 272,770,000 $ 252,890,000
296, 565,000 135, 660,000
401,810,000 431,430,000
45,227,282 45,716,810
148,819 108,923
1,218,141 -
4,494,536 6,369,647
11,063,058 10,632,432
$ 1,033,296,836 $ 882,807,812
12 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
The City's outstanding debt for governmental activities increased by $38.0 million due to scheduled principal payments, offset
by issuance of $86.1 million in bonds. The City's debt for business -type activities increased by $112.5 million from the previous
year due to scheduled principal payments, offset by issuance of $134.0 million in bonds. 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 Al from Moody's. The DAP bonds are rated A- by Standard and
Poor's. Additional information on the City's long-term debt can be found in Note 5 to the financial statements.
Economic Factors and Next Year's Budget and Rates
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 2025, Pearland projects strong sales tax revenue of $30.8 million, a 1.7% increase from fiscal year 2024. The City
received positive bond ratings from Moody's and Fitch for its 2024 issuances, reflecting a stable financial outlook. The City's
Permanent Improvement Bonds Series 2024 for $36.9 million, and the City's Certificates of Obligation Series 2024A and 2024C
for $25.4 million and $81.3 million, respectively, were assigned a rating of 'AA+' by Fitch and 'AA' by S&P.
The City plans for conservative sales tax growth of 1.7% and continued strong property values, expected to rise by upwards
of 9.9%. 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.
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 the 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.
13 City of Pearland, Texas 2024 ACFR
14 City of Pearland, Texas 2024 ACFR
BASIC FINANCIAL STATEMENTS
15 City of Pearland, Texas 2024 ACFR
16 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF NET POSITION
September 30, 2024
Primary Government
Governmental Business -type
Activities Activities
Total
Assets
Cash and equivalents $ 150,554,946 $ 21,059,506 $ 171,614,452
Investments 3,006,555 - 3,006,555
Receivables, net of allowance
for uncollectibles 30,686,066 13,020,160 43,706,226
Internal balances (6,949,985) 6,949,985
Inventories 655,284 655,284
Prepaid items 119,784 1,817 121,601
Restricted cash and cash equivalents 111,230,468 200,411,812 311,642,280
Capital Assets:
Nondepreciable 132,275,908 330,065,419 462,341,327
Depreciable, net 797,584,162 315,927,917 1,113,512,079
Total Capital Assets 929,860,070 645,993,336 1,575,853,406
Total Assets 1,219,163,188 887,436,616 2,106,599,804
Deferred Outflows of Resources
Deferred charge on refunding 2,858,487 637,038 3,495,525
Pension related 15,526,342 2,072,223 17,598,565
OPEB related 908,285 121,224 1,029,509
Total Deferred Outflows of Resources 19,293,114 2,830,485 22,123,599
Liabilities
Accounts payable 9,609,244 3,983,520 13,592,764
Accrued liabilities 10,844,797 31,773,236 42,618,033
Accrued interest 1,607,563 963,224 2,570,787
Unearned revenues 2,964,414 2,964,414
Customer deposits 648,080 4,180,822 4,828,902
Long-term liabilities:
Due within one year: Bonds, leases,
financed purchases, compensated absences 45,458,892 23,354,354 68,813,246
Due in more than one year:
Bonds, leases, financed purchases,
compensated absences 447,268,677 517,214,913 964,483,590
Net pension liability 31,548,574 4,210,630 35,759,204
Total OPEB liability 6,040,593 806,208 6,846,801
Total Liabilities 555,990,834 586,486,907 1,142,477,741
Deferred Inflows of Resources
Lease related 1,795,797 1,795,797
Pension related 838,187 111,869 950,056
OPEB related 2,421,415 323,174 2,744,589
Total Deferred Inflows of Resources 5,055,399 435,043 5,490,442
Net Position
Net investment in capital assets 556,467,386 243,043,048 799,510,434
Restricted for:
Capital improvements - 10,569,524 10,569,524
Debt service 8,191,084 19,747,283 27,938,367
Tourism 8,386,893 8,386,893
Community development programs 4,017,632 4,017,632
Grants 104,772 104,772
Public safety 479,764 479,764
Economic development 68,573,799 68,573,799
Unrestricted 31,188,739 29,985,296 61,174,035
Total Net Position $ 677,410,069 $ 303,345,151 $ 980,755,220
See notes to the financial statements. 17 City of Pearland, Texas 2024 ACFR
18 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF ACTIVITIES
Year Ended September 30, 2024
Functions/Programs
Primary Government
Governmental Activities:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Intergovernmental
Interest on long-term debt
Total Governmental Activities
Business -Type activities:
Water and sewer
Solid waste
Total Business -Type Activities
Total Primary Government
Expenses
$ 27,354,920
73,557,177
56,711,098
5,233,856
11,800,047
19,773,477
4,097,319
13,128,593
211,656,487
Program Revenue
Charges for
Services
$ 15,534,075
9,546,405
343,920
4,125,919
1,784,572
1,680,000
33,014,891
65,977,019 75,429,175
8,187,340 8,241,014
74,164,359 83,670,189
$ 285,820,846 $ 116,685,080 $ 1,360,765
Operating
Grants and
Contributions
$ 697,123
648,642
15,000
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Activities
$ (11,123,722)
(64,010,772)
(55,718,536)
(1,107,937)
(10,015,475)
(18,078,477)
(4,097,319)
(13,128,593)
1,360,765 (177,280,831)
General Revenues:
Taxes:
Property taxes
Sales and use taxes
Franchise taxes
Unrestricted investment earnings
Gain on sale of assets
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in net position
Net Position - Beginning, as Restated
Net Position - Ending
(177, 280,831)
Business -type
Activities
$
Total
$ (11,123,722)
(64,010,772)
(55,718,536)
(1,107,937)
(10,015,475)
(18,078,477)
(4,097,319)
(13,128, 593)
(177,280,831)
9,452,156 9,452,156
53,674 53,674
9,505,830 9,505,830
9,505,830 (167,775,001)
124,388,106 124,388,106
48,234,929 3,876 48,238,805
7,216,855 7,216,855
12,867,621 7,328,169 20,195,790
26,362 26,362
2,371,228 123,566 2,494,794
4,759,566 (4,759,566)
199,864,667 2,696,045 202,560,712
22,583,836 12,201,875 34,785,711
654,826,233 291,143,276 945,969,509
$
677,410,069 $ 303,345,151 $ 980,755,220
See notes to the financial statements. 19 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2024
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
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
General Fund
Debt Service Capital Projects
Fund Fund
Pearland
Economic
Development
Corporation
$ 31,988,445 $ 5,601,444 $ 10,472,066 $ 35,326,928
1,002,185 - - 2,004,370
9,903,538
2,783,276
67,320
4,225,137
5,226,500
111,109, 319
9,197,738
14,150
$ 45,744,764 $ 9,826,581 $ 126,807,885 $ 46,543,186
$ 2,489,085 $
4,565,151
642,719
285,525
7,982,480
941,883
1,795,797
2,737,680
67,320
34,957,284
35,024,604
27,934 $ 2,545,522 $ 313,964
- 5,165,698 108,020
- 2,771
27,934
4,111,449
4,111,449
5,687,198
5,687,198
7,713,991
5,226,500
5,226,500
107,532,780
6,383,283
(48,669)
421,984
6,558,719
6,558,719
14,150
39,548,333
113,867,394 39,562,483
$ 45,744,764 $ 9,826,581 $ 126,807,885 $ 46,543,186
Page 1 of 2
See notes to the financial statements. 20 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2024
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
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
8,920,989 $ 18,636,920 $ 17,027,476 $ 127,974,268
6,513
$ 8,920,989 $ 18,643,433
$ - $
12,286
12,286
2,064,801
29,900
$
19,122,177
$
3,587,527
95,345
2,783,276
2,678,889
9,145, 037
1,486,878
1,486,878
3,006,555
30,624,227
2,783,276
111,370
111,109, 319
$ 275,609,015
$ 8,964,032
9,946,500
645,490
2,783,276
2,964,414
25,303,712
18,325,429
1,795,797
20,121,226
- - 29,900 111,370
8,908,703 18, 643,433 12,989,061 193, 309,508
- - - 6,383,283
1,715,655 1,715,655
- - (6,244,354) 28,664,261
8,908,703 18,643,433 8,490,262 230,184,077
$
8,920,989 $ 18,643,433 $ 19,122,177 $ 275,609,015
Page 2 of 2
See notes to the financial statements. 21 City of Pearland, Texas 2024 ACFR
22 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
September 30, 2024
Total Fund Balance, Governmental Funds $ 230,184,077
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 1,634,170,212
Accumulated depreciation/amortization (717,405,726)
916,764,486
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 15,418,599
Deferred outflows - OPEB related 901,982
Deferred inflows - pension related (832,370)
Deferred inflows - OPEB related (2,404,612)
13,083,599
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 1,977,211
UHCL financing receivable 3,076,121
Street assessments 1,486,878
PEDC receivable 7,558,719
Intergovernmental receivables 4,226,500
18,325,429
Long-term liabilities that are not due and payable in the current period, and therefore, are not
reported in the funds.
Bonds payable (449,145,000)
Financed purchases payable (1,218,141)
Leases payable (85,251)
Compensated absences (9,754,838)
Net pension liability (31,329,646)
Total OPEB liability (5,998,675)
Accrued interest payable on long-term debt (1,359,179)
(498,890,730)
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 2,858,487
Premium on bonds (27,558,856)
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.
(24,700,369)
22,643,577
Net Position of Governmental Activities in the Statement of Net Position $ 677,410,069
See notes to the financial statements. 23 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
Year Ended September 30, 2024
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
Premium on capital bonds issued
Issuance of debt - financing arrangement
Sale of general capital assets
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning, as Restated
Fund Balances - Ending
General Fund
$ 40,946,317
31,014,354
7,037,329
3,486,738
2,095,237
24,998,098
2,621,790
Debt Service Capital Projects
Fund Fund
$ 39,578,274
966,443
1,208,705 692,978
$ 113,408,568 $ 41,237,695
9,816,585
69,696,027
11,665,483
4,782,140
8,330,421
270,158
77,711
2,014,364
106,652,889
34,985,000
15,203,893
783,864
3,516,458
$
4,857,035
648,642
$
5,505,677
983,528
28,956,210
54,489,215 29,939,738
Page 1 of 2
Pearland
Economic
Development
Corporation
15,301,040
2,081,390
15,000
18,591
$
17,416,021
4,271,209
250,000
17,700
2,101,351
6,640,260
6,755,679 (13,251,520) (24,434,061) 10,775,761
4,369,155
(8,935,988)
1,485,812
26,362
11,315,319
5,294,146
86,050,000
5,067,318
(5,856,580)
(3,054,659) 11,315,319 96,411,464 (5,856,580)
3,701,020
(1,936,201) 71,977,403
4,919,181
31,323,584 7,623,399 41,889,991 34,643,302
$ 35,024,604 $ 5,687,198 $ 113,867,394 $ 39,562,483
See notes to the financial statements. 24 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
Year Ended September 30, 2024
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
Tax Increment
Reinvestment
Zone #2
Development
Authority of
Pearland
$ 43,360,103 $
581,168
93,729
$ 43,941,271 $
15,454,745
15,454,745
Excess (Deficiency) of Revenues
Over Expenditures 28,486,526
Other Financing Sources (Uses)
Transfers in
Transfers out
Capital bonds issued
Premium on capital bonds issued
Issuance of debt - financing arrangement
Sale of general capital assets
Total Other Financing Sources (Uses)
(28,977,573)
Other
Governmental
Funds
$
1,919,535
179,526
471,787
120,037
162,994
684,054
697,123
383,929
93,729 $ 4,618,985
Page 2 of 2
Total
Governmental
Funds
$ 123,884,694
48, 234,929
7,216,855
3,958,525
2,215,274
25,161,092
11,885,609
1,360,765
2,304,203
$ 226,221,946
3,697,783 13,514,368
176,117 69,872,144
3,640,436 15,305,919
192,267 4,974,407
1,171,524 9,501,945
6,950 - 19,732,904
10,475,000 21,185 46,001,343
1,968,040 150 17,267,494
600 - 1,767,992
1,800,053 34,871,978
480,029 3,996,487
12,450,590 11,179,544 236,806,981
(12,356,861) (6,560,559) (10,585,035)
28,977,573
(11,227,800)
(28,977,573) 17,749,773
Net Change in Fund Balances (491,047)
Fund Balances - Beginning, as Restated
Fund Balances - Ending
3,664,556 53,620,749
(893,401) (55,891,342)
- 86,050,000
- 5,067,318
- 1,485,812
- 26,362
2,771,155
5,392,912 (3,789,404)
90,358,899
79,773,864
9,399,750 13,250,521 12,279,666 150,410,213
$ 8,908,703 $ 18,643,433 $ 8,490,262 $ 230,184,077
See notes to the financial statements. 25 City of Pearland, Texas 2024 ACFR
26 City of Pearland, Texas 2024 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, 2024
Net Change in Fund Balances - Total Governmental Funds: $ 79,773,864
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
Depreciation/amortization expense
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
Issuance of debt - financing arrangement
Issuance of debt - premium on bonds
Principal paid - bonds
Principal paid - leases
Principal paid - financing agreement
Defeasance - bonds
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the
funds.
Property taxes receivable
UHCL financing receivable
Economic development agreement receivables
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
Amortization of bond premiums/discounts and deferred amounts of refunding
Current period gain/loss on defeasance of bonds
Compensated absences
Changes in pension liabilities and related deferred outflows and inflows of resources
Changes in OPEB liabilities and related deferred outflows and inflows of resources
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.
Change in Net Position of Governmental Activities
34,304,567
(52,509,748)
(18,205,181)
(86,050,000)
(1,485,812)
(5,067,318)
35,340,000
23,672
267,671
10,370,000
(46,601,787)
503,412
(692,978)
1,680,000
1,490,434
39,245
4,005,232
2,149,121
(472,274)
(1,027,092)
(342,908)
4,351,324
1,775,182
$ 22,583,836
27 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2024
Business -type Activities
Governmental
Activities
Water and Solid Waste Total Enterprise Internal Service
Sewer Fund Fund Funds Funds
Assets
Current assets:
Cash and cash equivalents $ 20,488,884 $ 570,622 $ 21,059,506 $ 22,580,678
Receivables, net 12,290,863 729,297 13,020,160 61,839
Prepaids 1,817 1,817 8,414
Inventories - - 655,284
Restricted cash and cash equivalents 200,411,812 - 200,411,812 121,149
Total current assets 233,193,376 1,299,919 234,493,295 23,427,364
Noncurrent assets:
Capital assets:
Land and improvements 10,343,706 - 10,343,706 -
Construction in progress 319,721,713 319,721,713
Contractual rights to water supply 34,511,428 34,511,428
Infrastructure 490,729,538 490,729,538
Buildings 32,157,965 32,157,965
Machinery and equipment 5,742,034 5,742,034 15,192,852
Right -to -use lease equipment - - - 91,137
Right -to -use software - - - 9,001,741
Less accumulated
depreciation/amortization (247,213,048) - (247,213,048) (11,190,146)
Total noncurrent assets 645,993,336 645,993,336 13,095,584
Total Assets 879,186,712 1,299,919 880,486,631 36,522,948
Deferred Outflows of Resources
Deferred charge on refunding 637,038 - 637,038
Pension related 2,072,223 - 2,072,223 107,743
OPEB related 121,224 121,224 6,303
Total Deferred Outflows of Resources $ 2,830,485 $ - $ 2,830,485 $ 114,046
Page 1 of 2
28 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2024
Page 2 of 2
Business -type Activities
Governmental
Activities
Water and Solid Waste Total Enterprise Internal Service
Sewer Fund Fund Funds Funds
Liabilities
Current liabilities:
Accounts payable $ 3,283,350 $ 700,170 $ 3,983,520 $ 645,212
Accrued liabilities 31,022,123 751,113 31,773,236 898,297
Accrued interest 963,224 - 963,224 248,384
Customer deposits 4,180,822 - 4,180,822 2,590
Current portion of noncurrent liabilities:
Compensated absences 249,354 - 249,354
Leases payable - - - 31,208
SBITA payable - - 1,906,546
Bonds payable 23,105,000 - 23,105,000
Total current liabilities: 62,803,873 1,451,283 64,255,156 3,732,237
Noncurrent liabilities:
Compensated absences 651,487 651,487 407,379
Leases payable - - 32,360
SBITA payable - - 2,587,990
Bonds payable 516,563,426 - 516,563,426
Net pension liability 4,210,630 - 4,210,630 218,928
Total OPEB liability 806,208 806,208 41,918
Total noncurrent liabilities: 522,231,751 522,231,751 3,288,575
Total Liabilities 585,035,624 1,451,283 586,486,907 7,020,812
Deferred Inflows of Resources
Pension related
OPEB related
Total Deferred Inflows of Resources
111,869
323,174
435,043
111,869 5,817
323,174 16,803
435,043 22,620
Net Position
Net investment in capital assets 243,043,048 243,043,048 8,537,480
Restricted:
Debt service 19,747,283 - 19,747,283
Capital improvements 10,569,524 - 10,569,524
Unrestricted 23,186,675 (151,364) 23,035,311 21,056,082
Total Net Position $ 296,546,530 $ (151,364) 296,395,166 $ 29,593,562
Adjustment to reflect the consolidation of
Internal service fund activities related to enterprise funds
Net Position of Business -Type Activities
6,949,985
$ 303,345,151
29 City of Pearland, Texas 2024 ACFR
30 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Year Ended September 30, 2024
Business -type Activities
Water and Sewer
Fund
Solid Waste Fund
Governmental
Activities
Total Enterprise Internal Service
Funds Funds
Operating Revenues
Charges for services:
Metered water sales $ 69,522,735 $ $ 69,522,735 $
Impact fees 4,358,885 4,358,885
Solid waste fees 8,241,014 8,241,014
Other utility fees and charges 1,547,555 1,547,555
Risk management 10,635,781
Equipment management 20,445,293
Sales and use taxes 3,876 3,876
Miscellaneous 123,566 123,566 760,003
Total Operating Revenues 75,552,741 8,244,890 83,797,631 31,841,077
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)
12,057,375
9,950,624
227,719
1,624,154
12,475,493
79,089
19,378,279
8,187,340
55,792,733 8,187,340
19,760,008 57,550
12,057,375
9,950,624
227,719
1,624,154
20,662,833
79,089
19,378,279
3,840,067
96,479
1,067,486
4,698,475
15,702,808
6,322,538
5,577,351
63,980,073 37,305,204
19,817,558 (5,464,127)
Nonoperating Revenues (Expenses)
Investment earnings 7,320,272 7,897 7,328,169 982,012
Interest expense (10,670,443) (10,670,443) (286,705)
Total Nonoperating Revenues (Expenses) (3,350,171) 7,897 (3,342,274) 695,307
Income (Loss) Before Capital
Contributions and Transfers
Transfers in
Transfers out
Change in Net Position
Net Position - Beginning, as Restated
Net Position (Deficit) - Ending
16,409,837
(4,759,566)
65,447 16,475,284 (4,768,820)
(4,759,566)
7,144,553
(114,394)
11,650,271 65,447 11,715,718 2,261,339
284,896,259 (216,811) 284,679,448 27,332,223
$ 296,546,530 $ (151,364) $ 296,395,166 $ 29,593,562
Reconciliation to Government -wide Statement of Activities
Change in net position of enterprise funds $ 11,715,718
Adjustment for the net effect of the current year activity
between the internal service funds and enterprise funds 486,157
Change in Net Position of Business -Type Activities $ 12,201,875
See notes to the financial statements. 31 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2024
Cash Flows from Operating Activities
Receipts from customers and users
Receipts from interfund charges for services
Other receipts
Payments to employees for salaries and benefits
Payments to suppliers and service providers
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities
Transfers from other funds
Transfers to other funds
Net Cash Provided (Used) by Noncapital
Financing Activities
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets
Proceeds from certificates of obligation
Payment of bond issuance costs
Principal paid on bonds
Principal payments on leases
Principal payments on SBITAs
Interest paid on capital related debt
Net cash Provided (Used) by Capital and
Related Financing Activities
Cash Flows from Investing Activities
Interest on investments
Net Cash Provided (Used) by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Beginning Cash and Cash Equivalents
Business -type Activities
Governmental
Activities
Water and Sewer Solid Waste Total Enterprise Internal Service
Fund Fund Funds Funds
$
75,080,735
123,566
(11,731,096)
(13,246,646)
$
8,117,291
3,876
(7,558,442)
50,226,559 562,725
(4,759,566)
(4,759,566)
(49,399,588)
137,944,369
(1,330,999)
(23,205,000)
$
83,198,026 $
127,442
(11,731,096)
(20,805,088)
31,081,074
959,638
(3,974,852)
(27,724,291)
50,789,284 341,569
7,144,553
(4,759,566) (114,394)
(4,759,566) 7,030,159
(49,399,588)
137,944,369
(1,330,999)
(23,205,000)
(11,393,528) - (11,393,528)
52,615,254
(4,175,774)
(152,218)
(2,577,410)
(188,919)
52,615,254 (7,094,321)
7,320,272 7,897 7,328,169 982,012
7,320,272 7,897 7,328,169 982,012
105,402,519 570,622 105,973,141 1,259,419
115,498,177 - 115,498,177 21,442,408
Ending Cash and Cash Equivalents $ 220,900,696 $ 570,622 $ 221,471,318 $ 22,701,827
Reconciliation to the Statement of Net Position -
Proprietary Funds
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
$ 20,488,884 $ 570,622 $ 21,059,506 $ 22,580,678
200,411,812 - 200,411,812 121,149
$ 220,900,696 $ 570,622 $ 221,471,318 $ 22,701,827
Page 1 of 2
See notes to the financial statements. 32 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30, 2024
Business -type Activities
Governmental
Activities
Water and Sewer Solid Waste Total Enterprise Internal Service
Fund Fund Funds Funds
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss) $ 19,760,008 $ 57,550 $ 19,817,558 $ (5,464,127)
Adjustment to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation and amortization expense 19,378,279 19,378,279 5,577,351
(Increase) decrease in assets
Accounts receivable, net (348,440) (123,723) (472,163) 199,635
Prepaids (1,817) (1,817) (8,414)
Inventories - - (25,824)
Increase (decrease) in liabilities:
Accounts payable (3,258,515) (77,661) (3,336,176) 145,995
Accrued liabilities 15,156,662 751,113 15,907,775 51,886
Customer deposits 53,980 53,980 (148)
Due to other funds (839,877) (44,554) (884,431)
Compensated absences 69,659 69,659 (111,307)
Net pension liability and related amounts 187,847 187,847 (15,531)
Total OPEB liability and related amounts 68,773 68,773 (7,947)
Net Cash Provided (Used) by Operating Activities $ 50,226,559 $ 562,725 $ 50,789,284 $ 341,569
Non -cash Capital and Related Financing Activities
Issuance of debt - leases
Issuance of debt - SBITAs
$ (215,786)
(702,299)
Page 2 of 2
See notes to the financial statements. 33 City of Pearland, Texas 2024 ACFR
34 City of Pearland, Texas 2024 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.
35 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
36 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
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 risk management, employee benefits, health claims, motor pool, facilities, information technology, and certain
capital -related leases. The Internal Service Funds are 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.
37 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
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.
38 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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
mutual funds. 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.
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.
39 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
40 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
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.
41 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
10. Fund Balance
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 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.
42 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
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.
43 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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 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.
44 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
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.
45 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
J. New Accounting Standards
GASB issued Statement No. 99, Omnibus 2022, 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 had various effective dates and specific provisions
were implemented prior to fiscal year 2024. The remaining requirements related to financial guarantees and the classification
and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June
15, 2023, and all reporting periods thereafter. The remaining requirements of this statement were implemented in fiscal year
2024 and did not have a material impact on the financial statements.
GASB issued Statement No. 100, Accounting Changes and Error Corrections — an Amendment of GASB Statement No. 62, in
June 2022. The primary objective of this Statement is to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable
information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting
changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The
requirements of this statement were implemented in fiscal year 2024 and reflected in these financial statements.
GASB issued Implementation Guide 2021-1, Implementation Guidance Update — 2021, in May 2021. The primary objective
of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements. The
requirements of this Implementation Guide had various effective dates and specific provisions were implemented prior to
fiscal year 2024. The remaining requirement, an amendment to Question 7.9.8 in Implementation Guide 2015-1 effective for
reporting periods beginning after June 15, 2023, requires governments to capitalize assets whose individual acquisition costs
are less than the threshold for an individual asset if those assets in the aggregate are significant. The requirements of this
statement were implemented in fiscal year 2024 and did not have a material impact on the financial statements.
GASB issued Implementation Guide 2023-1, Implementation Guidance Update — 2023, in June 2023. The primary objective
of this Implementation Guide is to provide guidance that clarifies, explains, or elaborates on GASB Statements. This
Implementation Guide amends Implementation Guide No. 2019-3, Leases, Question 4.16, and Implementation Guide No.
2021-1, Implementation Guidance Update-2021, Question 4.13. The requirements of this Implementation Guide are
effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The requirements of this
Implementation Guide were implemented in fiscal year 2024 and did not have a material impact on the financial statements.
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, 2024, the City's investment
portfolio contains mutual funds, government investment pools, and obligations of U.S. government agencies. Each of the
City's investments are in compliance with the PFIA.
46 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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. 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.
The following schedule shows the City's recorded cash and cash equivalents and investments at year-end:
Cash and Cash Equivalents:
Demand depots (book value)
Mutual Fund
Investment Pools:
Texas CLASS
TexSTAR
LOGIC
Total Investment Pools
Total Cash and Cash Equivalents
Amount
$ 307,885,903
21,763,322
Percent of
Portfolio WAM
63.3% 1
4.5% 1
107,451,534 22.1%
10,306,394 2.1%
35,849,579 7.4%
153,607,507 31.6%
483,256,732 99.4%
36
26
46
Investments:
US Treasury Bills/Notes 3,006,555 0.6% 364
Total Investments 3,006,555 0.6%
Total Cash and Investments
$ 486,263,287
100.0% 15
At September 30, 2024, the City's demand deposits were covered federal depository insurance and pledged collateral held
by the City's agent in the City's name.
47 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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
Unrealized gain (loss)
$ 19,621,052
574,738
$ 20,195,790
The City's investments' fair value measurements are as follows at September 30, 2024.
Fair Value
Fair Value Measurements Using
Quoted Prices in
Active Markets Significant Other Significant
for Identical Observable Unobservable
Assets Inputs Inputs
(Level 1) (Level 2) (Level 3)
US Treasury Bills/Notes $ 3,006,555 $ 3,006,555 $ - $
$ 3,006,555 $ 3,006,555 $ - $
The US Treasury Bills/Notes are valued based on price data obtained from observed transactions and market price quotations
from broker dealers and/or pricing vendors.
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
48 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
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 15 days as of September 30, 2024. 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, 2024, 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
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, Texas CLASS, and LOGIC are 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 $ 20,710,507
Customer deposits 4,180,822
Capital improvements (impact fees) 12,596,847
Unspent bond proceeds 162,923,636
Total $ 200,411,812
49 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 3 — Receivables
Receivables at September 30, 2024, consisted of the following for the governmental funds:
Pearland
Economic Development Non -Major
Debt Capital Development Authority of Governmental
General Fund Service Fund Projects Fund Corporation Pearland Funds
Total
Receivables
Property taxes, including
penalties and interest $ 1,011,480 $ 1,062,966 $ $ $ $ - $ 2,074,446
Street assessments - - - - 1,284,935 1,284,935
Franchise taxes 1,220,985 - 10,151 1,231,136
Financing lease (UHCL) 3,189,810 3,189,810
Sales and other taxes 5,251,757 2,625,879 7,877,636
Economic development
agreements - 1,000,000 6,558,719 7,558,719
Leases 1,807,634 - 1,807,634
Intergovernmental 4,226,500 - 4,226,500
Other 636,827 - 13,140 6,513 769,715 1,426,195
Gross Receivables 9,928,683 4,252,776 5,226,500 9,197,738 6,513 2,064,801 30,677,011
Allowance for
uncollectibles (25,145) (27,639) - (52,784)
Net Receivable $ 9,903,538 $ 4,225,137 $ 5,226,500 $ 9,197,738 $ 6,513 $ 2,064,801 $ 30,624,227
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) $ 218,638
Economic development agreements 66,887
ARPA grant 2,678,889
Total Unearned Revenue $ 2,964,414
Unavailable Revenue:
Delinquent property taxes receivable
UHCL receivable
Street assessments
Economic development agreements
Intergovernmental
Total Unavailable Revenue
Amount
$
1,977,211
3,076,121
1,486,878
7,558,719
4,226,500
$ 18,325,429
50 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Receivables at September 30, 2024, consisted of the following for the proprietary funds:
Governmental
Business -type Activities - Enterprise Funds Activities
Water and Solid Waste Internal
Sewer Fund Fund Total Service Fund
Receivables
Customer accounts:
Billed $ 6,962,493 $ 998,466 7,960,959 $ 61,839
Unbilled 6,664,650 - 6,664,650 -
Other 380,322 81,577 461,899
Allowance for
uncollectibles (1,716,602) (350,746) (2,067,348)
$ 12,290,863 $ 729,297 $ 13,020,160 $ 61,839
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.
UHCL Lease Receivable
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, 2024, the future minimum debt service payments
to be received under the agreement are as follows:
Year Principal
2025 $ 569,758
2026 574,049
2027 574,366
2028 569,547
2029 570,743
2030 48,352
$ 2,906,815
51 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 4 — Capital Assets
A summary of changes in the City's capital assets for the year ended September 30, 2024, is as follows:
Governmental Activities
Beginning Transfers to
Balance, as Depreciable
restated Increases Disposals Assets Ending Balance
Governmental Activities
Capital Assets, not being Depreciated:
Land $ 51,483,358 $ - $ $ - $ 51,483,358
Construction in progress 90,271,072 29,863,248 (39,341,770) 80,792,550
Total Capital Assets, not being
Depreciated 141,754,430 29,863,248 (39,341,770) 132,275,908
Capital Assets, being Depreciated:
Infrastructure 1,181,013,536 - 33,333,767 1,214,347,303
Buildings and improvements 218,441,624 251,208 6,008,003 224,700,835
Machinery and equipment 33,823,057 7,907,874 - 41,730,931
Furniture and fixtures 35,619,824 582,660 - 36,202,484
Right -to -use lease equipment 13,232 91,137 (13,232) - 91,137
Right -to -use lease buildings 105,603 - - 105,603
Right -to -use SBITA assets 11,016,172 702,299 (2,716,730) - 9,001,741
Total Other Capital Assets, being
Depreciated 1,480,033,048 9,535,178 (2,729,962) 39,341,770 1,526,180,034
Less Accumulated Depreciation for:
Infrastructure (576,661,080) (39,611,321) - (616,272,401)
Buildings and improvements (58,413,345) (10,049,817) - - (68,463,162)
Machinery and equipment (24,297,635) (3,432,276) - (27,729,911)
Furniture and fixtures (9,815,671) (1,675,537) - (11,491,208)
Right -to -use lease equipment (9,812) (33,799) 13,232 - (30,379)
Right -to -use lease buildings (472) (21,026) - (21,498)
Right -to -use SBITA assets (4,040,720) (3,263,323) 2,716,730 - (4,587,313)
Total Accumulated Depreciation (673,238,735) (58,087,099) 2,729,962 - (728,595,872)
Total Capital Assets being
depreciated, net 806,794,313 (48,551,921) 39,341,770 797,584,162
Governmental Activities Capital Assets, Net $ 948,548,743 $ (18,688,673) $ - $ - $ 929,860,070
52 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Business -type Activities
Beginning Transfers to
Balance, as Depreciable
restated Increases Disposals Assets Ending Balance
Business -type Activities
Capital Assets, not being Depreciated:
Land $ 10,343,706 $ - $ - $ - $ 10,343,706
Construction in progress 270,713,695 49,008,018 - 319,721,713
Total Capital Assets, not being Depreciated: 281,057,401 49,008,018 - 330,065,419
Capital Assets, being Depreciated
Water and sewer system 490,729,538 - - 490,729,538
Buildings and improvements 32,119,091 38,874 32,157,965
Machinery and equipment 5,207,811 352,696 5,560,507
Furniture and fixtures 181,527 - - 181,527
Contractual water rights 34,511,428 - - - 34,511,428
Total Capital Assets, being Depreciated 562,749,395 391,570 563,140,965
Less Accumulated Depreciation:
Water and sewer system (190,347,120) (17,078,779) - (207,425,899)
Buildings and improvements (11,415,550) (736,139) - (12,151,689)
Machinery and equipment (4,865,244) (178,316) - (5,043,560)
Furniture and fixtures (155,589) (9,977) - (165,566)
Contractual water rights (21,051,266) (1,375,068) (22,426,334)
Total Accumulated Depreciation (227,834,769) (19,378,279) - (247,213,048)
Total Capital Assets being
Depreciated, net 334,914,626 (18,986,709) - 315,927,917
Totals $ 615,972,027 $ 30,021,309 $ $ $ 645,993,336
Depreciation/amortization was charged to programs as follows:
Depreciation/
Governmental Activities Amortization Expense
General government $ 14,296,164
Public safety 2,123,714
Public works 39,253,485
Community services 274,709
Parks and recreation 2,139,027
Total Governmental Activities 58,087,099
Business -type activities:
Water and sewer 19,378,279
Total Depreciation Expense, Primary Government $ 77,465,378
53 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
The City had active construction projects as of September 30, 2024. 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
Drainage
Facilities
Parks and Recreation
Streets
Total Governmental Activities
Facilities
Water and Sewer Improvements
Total Business -Type Activities
Total Primary Government
Note 5 — Long-term Debt
Contract
45,172,982
128,896,696
45, 637,105
237,394,940
457,101,723
2,148, 500
502,149,886
504,298,386
$ 961,400,109
Total
In Progress
25,787,193
9,090,337
6,180, 751
39,734,269
80,792,550
372,041
319,349,672
319,721,713
$ 400,514,263
Remaining
Commitment
19,385,789
119,806,359
39,456,354
197,660,671
376,309,173
1,776,459
182,800,214
184,576,673
$ 560,885,846
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.
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.
54 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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,
2024.
Beginning Ending Amounts Due
Governmental Activities Balance Increases Decreases Balance in One Year
Bonds Payable:
General obligation bonds $ 246,090,000 $ 42,480,000 $ (20,645,000) $ 267,925,000 $ 22,235,000
General obligation bonds -
Private Placement 4,420,000 (820,000) 3,600,000 850,000
Certificates of obligation 89,950,000 43,570,000 (13,520,000) 120,000,000 3,765,000
Sales tax revenue bonds 750,000 (250,000) 500,000 250,000
Tax increment revenue bonds 55,410,000 (8,625,000) 46,785,000 8,860,000
Tax increment revenue bonds -
Private placement 12,185,000 (1,850,000) 10,335,000 1,920,000
Unamortized premium/discount 29,643,687 5,067,318 (7,152,149) 27,558,856
Total Bonds Payable 438,448,687 91,117,318 (52,862,149) 476,703,856 37,880,000
Other Long -Term Liabilities:
Leases 108,923 215,786 (175,890) 148,819 51,501
Financed purchases 1,485,812 (267,671) 1,218,141 291,363
SBITAs 6,369,647 702,299 (2,577,410) 4,494,536 1,906,546
Compensated absences 9,801,250 360,967 10,162,217 5,329,482
Total Governmental Activities
Long -Term Liabilities $ 454,728,507 $ 93,882,182 $ (55,883,120) $ 492,727,569 $ 45,458,892
During the current fiscal year, the City issued the following bonds in the governmental activities:
• Permanent Improvement Bonds, Series 2023, in the amount of $8,235,000 with a premium of $119,464. The
proceeds will be used for construction and improvements to the City's drainage system, streets, and parks.
• Permanent Improvement Bonds, Series 2024, in the amount of $34,245,000 with a premium of $3,023,695. The
proceeds will be used for construction, repairs, and improvements to the City's roads, streets, bridges, sidewalks,
and drainage system.
• Certificates of Obligation, Series 2023A, in the amount of $10,075,000 with a premium of $221,291. The proceeds
will be used for (i) renovations and improvements to the natatorium; (ii) construction of a new Law Enforcement
Training Center at the former site of Fire Station #4; (iii) renovations and improvements to the Public Safety Building;
(iv) construction and improvements to Dixie Farm Road transition near Mary's Creek and Cowart's Creek Bridge; (v)
construction and improvements to Hickory Slough Recreational Detention Pond and pump station; (vi) construction
and improvements to Clear Creek Trail (Barry Rose Water Reclamation Facility to University of Houston Clear Lake);
(vii) construction of an Emergency Distribution Warehouse (viii) construction of Fire Station No. 6 on County Road
100; and (ix) improvements to the existing City recreation center.
• Certificates of Obligation, Series 2023B, in the amount of $9,390,000 with a premium of $110,896. The proceeds will
be used for (i) construction and improvements to Shadow Creek Trail Phase II and (ii) construction and improvements
to Shadow Creek Parkway landscaping, street lighting and sidewalks.
• Certificates of Obligation, Series 2024A, in the amount of $24,105,000 with a premium of $1,591,972. The proceeds
will be used for (i) construction, repairs and improvements to the Hillhouse Road Annex Project including repairs to
the existing traffic division building and construction and improvements to a vehicle fleet building and a parks
maintenance building; (ii) construction and improvements to a public safety training complex; (iii) drainage
improvements to the West Lea subdivision; (iv) certain street and road repairs and related drainage improvements
within the City; and (v) construction and improvements to Shadow Creek Parkway and other streets and roads within
Shadow Creek Ranch.
In addition, the City defeased $3,080,000 of Series 2019E Certificates of Obligation and $7,290,000 of Series 2020E
Certificates of Obligation. These transactions resulted in a current gain of $2,149,121.
55 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
The following is a summary of changes in the City's total business -type activities long-term liabilities for the year ended
September 30, 2024.
Beginning Ending Amounts Due
Business -type Activities Balance Increases Decreases Balance Within One Year
Bonds Payable:
General obligation bonds $ 2,380,000 $ - $ (1,135,000) $ 1,245,000 $ 1,245,000
Certificates of obligation 45,710,000 134,030,000 (3,175,000) 176,565,000 2,695,000
Water and sewer revenue bonds 363,085,000 - (18,895,000) 344,190,000 19,165,000
Unamortized premium/discount 16,073,123 3,914,369 (2,319,066) 17,668,426 -
Total Bonds Payable 427,248,123 137,944,369 (25,524,066) 539,668,426 23,105,000
Other Long -Term Liabilities:
Compensated absences
Total Business -type Activities
Long -Term Liabilities
831,182 69,659
900,841 249,354
$ 428,079,305 $ 138,014,028 $ (25,524,066) $ 540,569,267 $ 23,354,354
During the current fiscal year, the City issued the following bonds in the business -type activities:
• Certificates of Obligation, Series 2023C, in the amount of $54,835,000 with a premium of $987,517. The proceeds
will be used for (i) construction and improvements to Sanitary Sewer Rehabilitation - Old Town District & Barry Rose
Service Area; (ii) construction and improvements to Barry Rose Water Reclamation Facility; and (iii) construction,
repairs, improvements, additions and extensions to the water and sewer system.
• Certificates of Obligation, Series 2024C, in the amount of $79,195,000 with a premium of $2,926,852. The proceeds
will be used for (i) construction and improvements to the Green Tee Transit Pipe Water Line; (ii) construction,
improvements and expansion to the Barry Rose Water Reclamation Facility in the City; and (iii) construction,
rehabilitation, repairs, improvements, additions and extensions to the City's water and sewer system.
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.
56 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
The debt service requirements for the City's bonds are as follows:
Governmental Activities
Fiscal General Obligation
Year Principal
2025 $ 22,235,000 $ 11,462,607
2026 22,235,000 10,421,438
2027 23,115,000 9,316,063
2028 24,290,000 8,198,223
2029 26,155,000 7,067,138
2030 - 2034 84,605,000 22,029,462
2035 - 2039 32,325,000 10,875,979
2040 - 2044 14,915,000 5,799,915
2045 - 2049 8,050,000 3,546,500
2050 - 2054 10,000,000 1,268,750
$ 267,925,000 $ 89,986,075
GO - Private Placement
Private Placement Certificates of Obligation
Sales Tax Revenue Bonds
Interest Principal
Interest Principal Interest
850,000 $114,300.00 $ 3,765,000 $5,316,413.00
885,000 83,070 3,420,000 5,201,569
915,000 50,670 3,465,000 5,059,994
950,000 17,100 3,500,000 4,917,819
3,730,000 4,772,350
58,850,000 12,936,291
18,555,000 7,629,664
9,955,000 4,529,752
6,630,000 2,894,250
8,130,000 1,020,500
3,600,000 $ 265,140 $ 120,000,000
Governmental Activities
54,278,602
Tax Increment Revenue Bonds Total
Fiscal Tax Increment Revenue Bonds Private Placement Governmental Activities
Year Principal Interest Principal Interest Principal Interest
2025 $ 8,860,000 $ 1,278,087 $ 1,920,000 $ 386,529 $ 37,880,000 $ 18,569,736
2026 9,100,000 1,037,024 1,990,000 314,721 37,880,000 17,063,722
2027 9,350,000 788,940 2,065,000 240,295 38,910,000 15,455,962
2028 9,605,000 533,537 2,140,000 163,064 40,485,000 13,829,743
2029 9,870,000 270,676 2,220,000 83,028 41,975,000 12,193,192
2030 - 2034 143,455,000 34,965,753
2035 - 2039 50,880,000 18,505,643
2040 - 2044 - 24,870,000 10,329,667
2045 - 2049 - - - 14,680,000 6,440,750
2050-2054 18,130,000 2,289,250
$ 46,785,000 $
3,908,264 $ 10,335,000 $ 1,187,637 $ 449,145,000
Business -type Activities
149,643,418
Principal Interest
$ 250,000 $ 11,800
250,000 5,900
$ 500,000 $ 17,700
Fiscal General Obligation
Year Principal Interest
2025 $ 1,245,000 $ 31,125
2026 -
2027
2028
2029
2030-2034
2035 - 2039
2040-2044
2045 - 2049
2050-2054 -
$ 1,245,000 $ 31,125
Total Primary Government
Principal Interest
2025 $
2026
2027
2028
2029
2030-2034
2035 - 2039
2040-2044
2045 - 2049
2050-2054
60,985,000
61,260,000
62,970,000
64,035,000
66,260,000
259,950,000
147,870,000
105,550,000
82,245,000
60,020,000
$ 33,505,936
31,527,186
29,240,270
26,896,329
24,524,044
85,724,397
53,861,276
33,279,976
19,777,229
6,794,369
971,145,000
345,131,012
Certificates of Obligation
Principal
$ 2,695,000
3,720,000
4,080,000
4,300,000
4,690,000
28,385,000
32,995,000
33,305,000
29,140,000
33,255,000
176,565,000
Revenue Bonds
Interest Principal
8,297,642 $ 19,165,000
8,252,938 19,660,000
8,066,938 19,980,000
7,862,938 19,250,000
7,647,938 19,595,000
34,330,190 88,110,000
26,777,038 63,995,000
18,417,788 47,375,000
11,378,610 38,425,000
4,325,802 8,635,000
135,357,822 $ 344,190,000
Interest
6,607,433
6,210,526
5,717,370
5,203,648
4,682,914
16,428,454
8,578,595
4,532,521
1,957,869
179,317
60,098,647
Total
Business -type Activities
Principal Interest
$ 23,105,000
23,380,000
24,060,000
23,550,000
24,285,000
116,495,000
96,990,000
80,680,000
67,565,000
41,890,000
522,000,000
14,936,200
14,463,464
13,784,308
13,066,586
12,330,852
50,758,644
35,355,633
22,950,309
13,336,479
4,505,119
195,487,594
57 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Prior Year Refunding
In prior years, the City defeased certain general obligation and other bonds by placing the proceeds of the new bonds in an
irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, the trust account assets
and the liability for the defeased bonds are not included in the City's financial statements. At September 30, 2024, the City
had $19,270,000 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, 2024, are as follows:
Governmental Activities
Terms
Lease Liability Right -to -Use Asset
Start End Interest Original Outstanding Asset Accumulated Net
Date Date Rate Amount Balance Value Amortization Asset
Equipment:
Specialty Fleet Sales LLC 10/01/23 09/30/26 3.6310% $ 91,137 $ 63,568 $ 91,137 $ (30,379) $ 60,758
Total Equipment 91,137 63,568 91,137 (30,379) 60,758
Building:
Pearland Town Center Office Space
Rental - 11200 Broadway Street 9/30/2023 9/30/2028 0.2480% 105,603 85,251 105,603 (21,498) $ 84,105
Total Building 105,603 85,251 105,603 (21,498) 84,105
Totals $ 196,740 $ 148,819 $ 196,740 $ (51,877) $ 144,863
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, 2024, were as follows:
Fiscal
Year Principal Interest Total
2025 $ 51,501 $ 2,003 $ 53,504
2026 53,319 801 54,120
2027 21,644 109 21,753
2028 22,355 55 22,410
$ 148,819 $ 2,968 $ 151,787
58 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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, 2024, are as follows:
Governmental Activities
Terms SBITA Liability Subscription Asset
Start End Interest Original Outstanding Asset Accumulated Net
Date Date Rate Amount Balance Value Amortization Asset
All Traffic Solutions - Subscription 11/15/22 11/14/25 3.2380% $ 28,168 $ 9,386 $ 28,168 $ (17,631) $ 10,537
Aurigo Software 10/01/22 10/05/27 3.3050% 865,202 521,851 865,202 (345,122) 520,080
Cisco Duo 10/01/22 02/08/25 3.2070% 56,767 - 56,767 (48,198) 8,569
ClearGov Subscription 05/01/23 09/30/26 2.3630% 155,788 92,336 169,828 (70,416) 99,412
Fleetio Manage - Enterprise 10/03/22 10/02/25 3.2380% 117,758 39,239 119,257 (79,284) 39,973
Flock Group Auto License Plate Reader Software 11/27/23 10/31/30 3.5300% 411,971 411,971 411,971 (50,216) 361,755
Flock Group Falcon Safety Subscription 12/11/23 12/10/25 3.7420% 290,328 190,358 290,328 (116,938) 173,390
GIS Software 10/01/22 01/09/25 3.2070% 176,630 176,630 (155,279) 21,351
GrayKey License 10/16/22 10/15/24 3.2070% 38,648 - 38,648 (37,843) 805
Ion Wave - Strategic Sourcing Software 10/01/22 11/30/25 3.2380% 59,127 19,809 59,127 (37,343) 21,784
Microsoft Enterprise 10/05/22 10/31/25 3.2380% 1,636,485 817,827 1,636,485 (1,059,424) 577,061
Microsoft Software 11/01/22 10/31/25 3.2380% 1,246,707 415,428 1,246,707 (796,507) 450,200
NetCloud Mobile Essentials 02/22/23 02/21/26 2.6560% 140,691 46,886 140,691 (75,426) 65,265
New World ERP and Incode Software - 1 04/01/23 03/31/25 2.4700% 316,677 - 316,677 (237,508) 79,169
Open Counter - Software 10/01/22 10/31/25 3.2380% 116,461 38,912 136,261 (88,386) 47,875
0pticom Cloud Platform 01/11/23 01/10/33 2.8530% 1,000,570 799,507 1,000,570 (172,320) 828,250
PerfectMind Software 10/01/22 10/31/26 3.2690% 81,406 43,050 81,406 (39,872) 41,534
PLL ELA Premium 02/01/23 03/31/26 2.6560% 809,753 448,712 809,753 (426,186) 383,567
Sequel - Infoblox DDI 09/20/23 09/19/26 2.9010% 49,892 16,626 49,892 (17,139) 32,753
Traffic Suite - Subscription 11/25/22 11/24/24 3.2070% 5,907 - 5,907 (5,464) 443
VMware software 10/01/22 01/27/25 3.2070% 282,422 - 282,422 (242,943) 39,479
Watch Guard Software 10/21/22 10/20/27 3.3050% 745,078 421,006 745,078 (289,753) 455,325
WaterSmart Platform 10/01/22 06/30/26 3.2690% 312,966 161,632 333,966 (178,115) 155,851
Total Lease Liability $ 8,945,402 $ 4,494,536 $ 9,001,741 $ (4,587,313) $ 4,414,428
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.
The future principal and interest SBITA payments as of September 30, 2024, were as follows:
Fiscal
Year Principal Interest Total
2025 $ 1,906,546 $ 141,082 $ 2,047,628
2026 1,362,801 81,299 1,444,100
2027 487,628 38,347 525,975
2028 168,178 22,512 190,690
2029 173,449 17,241 190,690
2030 - 2034 395,934 21,134 417,068
$ 4,494,536 $ 321,615 $ 4,816,151
59 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 6 — Interfund Transactions
A summary of interfund transfers, the purpose of which is to cover operational expenses/expenditures, for the year ended
September 30, 2024, is as follows:
General Fund
Debt Service Fund
Capital Projects Fund
Pearland Economic Development Corporation
Tax Increment Reinvestment Zone #2
Development Authority of Pearland
Non -major Governmental Funds
Water and Sewer Fund
Internal Service Fund
Transfers In
$ 4,369,155
11,315,319
5,294,146
28,977,573
3,664,556
7,144,553
$ 60,765,302
Transfers Out
$ (8,935,988)
(5,856,580)
(28,977,573)
(11,227,800)
(893,401)
(4,759,566)
(114,394)
(60,765,302)
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, 2024, is as follows:
General Fund
Non -major Governmental Funds
Due From
Other Funds
$ 2,783,276
$ 2,783,276
Due To
Other Funds
2,783,276
$ 2,783,276
60 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 7 - 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 Ending
Balance Additions Reductions Balance
Lease Receivable
Cell tower leases:
T-Mobile $ 813,486 $ - $ (28,763) $ 784,723
Clear wireless 903,665 - - 903,665
Natatorium 235,799 - (116,553) 119,246
Total Lease Receivable $ 1,952,950 $ $ (145,316) $ 1,807,634
Beginning Ending
Balance Additions Reductions Balance
Deferred Inflow of Resources
Cell tower leases:
T-Mobile $ 787,867 $
Clear wireless 876,785
Natatorium 332,514
Total Deferred Inflow of Resources $ 1,997,166
- $ (41,455) $ 746,412
(40,686) 836,099
- (119,228) 213,286
$
$ (201,369) $ 1,795,797
Fiscal Principal Interest Total
Year Payments Payments Payments
2025 $ 208,425 $ 19,748 $ 228,173
2026 62,688 10,069 72,757
2027 65,272 9,668 74,940
2028 67,938 9,250 77,188
2029 70,689 8,815 79,504
2030 - 2034 397,857 36,901 434,758
2035 - 2039 480,922 23,082 504,004
2040 - 2044 453,843 6,880 460,723
$ 1,807,634 $ 124,413 $ 1,932,047
61 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 8 — Fund Balance/Net Position
Fund Balance Restrictions, Commitments, and Assignments
The City has classified ending fund balance based on the availability of funds for expenditure on programs and services. As of
September 30, 2024, the following balances were restricted, committed, or assigned in the governmental fund balances:
Restricted
Debt service $ 5,687,198
Capital projects 106,059,450
Tourism 8,386,893
Public safety 479,764
Community development 4,017,632
Grants 104,772
Economic development 68,573,799
Total Restricted Fund Balance $ 193,309,508
Committed
Capital projects
Total Committed Fund Balance
$ 6,383,283
$ 6,383,283
Assigned
Public works $ 1,628,502
Grants 87,153
Total Assigned Fund Balance $ 1,715,655
Net Position Restricted for Debt Service
Net position restricted for debt service as of September 30, 2024 consisted of the following:
Governmental Business -type
Activities Activities
Cash restricted for debt service $ 5,687,198 $ 20,710,507
Plus recognition of unavailable revenue:
I&S property taxes 1,035,328
UHCL receivable 3,076,121
Less: accrued interest payable (1,607,563) (963,224)
Restricted for Debt Service $ 8,191,084 $ 19,747,283
62 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Net Investment in Capital Assets
Net investment in capital assets as of September 30, 2024 consisted of the following:
Capital assets, net
Less:
Bonds payable
Unamortized premium
Leases, SBITAs, and financed purchases
Other capital -related liabilities (retainage)
Plus:
Deferred charge on refunding
Unspent bond proceeds
Fund Balance/Net Position Deficits
Governmental
Activities
$
929,860,070
(449,145,000)
(27,558,856)
(5,861,496)
(4,792,367)
2,858,487
111,106,548
$ 556,467,386
Business -type
Activities
$ 645,993,336
(522,000,000)
(17,668,426)
(26,842,536)
637,038
162,923,636
$
243,043,048
The following funds reported deficit fund balances/net position as of September 30, 2024:
Nonmajor Governmental Funds:
CDBG Grant Fund
CDBG Disaster Recovery Fund
Disaster Recovery Fund
Hazard Mitigation Fund
Coronavirus Relief Fund
ARPA Fund
Truancy Prevention and Diversion Fund
U of H Fund
Infrastructure Reinvestment Fund
Enterprise Funds:
Solid Waste Fund
Note 9 — Deferred Compensation Plan
$ 64,874
362,071
3,750,119
355,269
1,412,395
12,320
5,276
27,299
254,731
151,364
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.
63 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 10 — Employee Retirement System
Texas Municipal Retirement System
Plan Description and Provisions
The City participates as one of 934 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
Matching ratio (City to employee)
Years required for vesting
Service requirement eligibility
(expressed as age/years of service)
Updated service credit
Annuity increase (to retirees)
7.00%
2 to 1
5
60/5, 0/20
100% Repeating,
Transfers
70% of CPI Repeating
At the December 31, 2023, valuation and measurement date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
344
494
814
1,652
64 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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 2024, the City's contribution rate was 13.05% for the months in 2023 and 13.44% for the months in 2024. The City's
contributions to TMRS for the year ended September 30, 2024, were $9,413,709 and were equal to the required
contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2023, 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, 2023, actuarial valuation was determined using the following actuarial
assumptions:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Entry Age Normal
Level Percentage of Payroll, Closed
22 years (longest amortization ladder)
10 Year smoothed market; 12% soft corridor
2.50%
3.60% to 11.85% including inflation
6.75%
Experience -based table of rates that vary by age. Last updated for the
2023 valuation pursuant to an experience study of the period ending
2022.
Post -retirement: 2019 Municipal Retirees of Texas Mortality Tables.
Male rates are multiplied by 103% and female rates are multiplied by
105%. The rates are projected on a fully generational basis by the
most recent Scale MP-2021 (with immediate convergence).
Pre -retirement: PUB(10) mortality tables, with the 110% of the Public
Safety table used for males and the 100% of the General Employee
table used for females. The rates are projected on a fully generational
basis by the most recent Scale MP-2021 (with immediate
convergence).
65 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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
Global public equity
Core fixed income
Non -core fixed income
Other public and private markets
Real estate
Hedge funds
Private equity
Total
Discount Rate
Long -Term Expected Real Rate of
Target Allocation Return (Arithmetic)
35.0%
6.0%
20.0%
12.0%
12.0%
5.0%
10.0%
100.0%
6.70%
4.70%
8.00%
8.00%
7.60%
6.40%
11.60%
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.
Changes in the Net Pension Liability
Plan Fiduciary NPL
TPL (a) Net Position (b) (a) - (b)
Balance at January 1, 2023 $ 231,524,832 $ 189,466,838 $ 42,057,994
Changes for the year:
Service cost 11,255,589 - 11,255,589
Interest 15,791,168 - 15,791,168
Difference between expected and
actual experience 3,114,314 - 3,114,314
Changes in assumptions (1,196,823) - (1,196,823)
Contributions - employer - 8,730,203 (8,730,203)
Contributions - employee - 4,682,869 (4,682,869)
Net investment income - 21,990,446 (21,990,446)
Benefit payments, including refunds,
of employee contributions (6,418,808) (6,418,808) -
Administrative expense - (139,505) 139,505
Other - (975) 975
Net changes 22,545,440 28,844,230 (6,298,790)
Balance at December 31, 2023 $ 254,070,272 $ 218,311,068 $ 35,759,204
66 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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.
Current Single Rate
1% Decrease Assumption 1% Increase
(5.75%) (6.75%) (7.75%)
Net Pension Liability (Asset) $ 78,298,383 $ 35,759,204 $ 1,466,384
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, 2024, the City recognized pension expense of $10,700,808.
At September 30, 2024, the City reported deferred outflows and inflows of resources related to pensions from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between actuarial assumptions
and actual experience $ 5,836,520 $
Changes in actuarial assumptions 72,172 (950,056)
Differences between projected and actual
pension plan investment earnings 4,785,996 -
Contributions subsequent to the
measurement date 6,903,877 -
Total $ 17,598,565 $ (950,056)
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 2024. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Fiscal Year
2025 $ 3,083,426
2026 3,148,277
2027 4,955,644
2028 (1,442,715)
Total $ 9,744,632
67 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 11— 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 Retiree Health
Fund Care Plan
Total OBEB Liability $ 1,660,922 $ 5,185,879
Deferred Outflows of Resources 388,846 640,663
Deferred Inflows of Resources 726,077 2,018,512
OPEB expense 88,263 567,825
TMRS Supplemental Death Benefits Fund
Benefit Plan Description
Total
$
6,846,801
1,029,509
2,744,589
656,088
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, 2023 was as follows:
Inactive employees currently receiving benefits 256
Inactive employees entitled to but not yet receiving benefits 142
Active Employees 814
1,212
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 0.19% of covered payroll and 0.05%
for the retiree -only portion). 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.
68 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Discount Rate
The TMRS SDBF program is treated as unfunded OPEB plan because the SDBF trust covers both active employees and retirees
and the assets are not segregated for these groups. Under GASB Statement No. 75, the discount rate for an unfunded OPEB
plan should be based on 20-year tax-exempt AA or higher Municipal Bonds. Therefore, a discount rate of 3.77% based on the
20-Year Municipal GO AA Index rate published by bondbuyer.com is used as of the measurement date of December 31, 2023.
Actuarial Assumptions
The City's total OPEB liability was measured at December 31, 2023, and was determined by an actuarial valuation as of that
date using the following actuarial assumptions.
Valuation Date: December 31, 2023
Methods and Assumptions:
Inflation 2.50%
Salary Increases 3.60% to 11.85%, including inflation
Discount rate* 3.77%
Retirees' share of benefit related costs $0
Administrative expenses All administrative expenses are paid through the
Pension Trust and accounted for under reporting
reauirements under GASB Statement No. 68.
Mortality rates - services retirees 2019 Municipal Retirees of Texas Mortality Tables.
Male rates are multiplied by 103% and female rates are
multiplied by 105%. The rates are projected on a fully
generational basis by the most recent Scale MP-2021
(with immediate convergence).
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% 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 the most recent Scale MP-
2021 (with immediate convergence) 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, 2023.
Other Information
The actuarial assumptions used in the December 31, 2023, valuation were based on the results of an actuarial experience
study for the period ending December 31, 2022.
69 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Changes in the Total OPEB Liability
Balance at January 1, 2023
Changes for the year:
Service cost
Interest on total OPEB liability
Differences between expected and
actual experience
Change of assumptions
Benefit payments
Balance at December 31, 2023
Sensitivity Analysis
Total OPEB
Liability
$ 1,484,791
66,878
60,811
(4,088)
85,969
(33,439)
$ 1,660,922
The following presents the total OPEB liability of the employer, calculated using the discount rate of 3.77%, 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.
1% Decrease in
Discount
Rate (2.77%)
Total OPEB Liability $ 2,023,591
Current
Discount
Rate (3.77%)
$ 1,660,922
1% Increase in
Discount
Rate (4.77%)
$ 1,381,197
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Activity
For the year ended September 30, 2024, the City recognized OPEB expense of $88,263. As of September 30, 2024, the City
reported deferred outflows of resources related to OPEB from the following sources:
Difference between expected and actual experience
Changes of assumptions
Contributions subsequent to measurement date
Deferred
Outflows of
Resources
$
45,452
317,710
25,684
Deferred
Inflows of
Resources
$ (98,947)
(627,130)
Total $ 388,846 $
(726,077)
70 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
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 2024. 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
2025 $ (51,973)
2026 (59,846)
2027 (74,156)
2028 (107,733)
2029 (75,038)
Thereafter 5,831
Total $ (362,915)
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, 2023, the actuarial valuation date, the following employees were covered
by the benefit terms:
Inactive employees currently receiving benefits 12
Inactive employees entitled to but not yet receiving benefits -
Active Employees 777
Total 789
71 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Actuarial Assumptions and Methods
The City's total OPEB liability was measured as of September 30, 2024, and was determined by an actuarial valuation as of
October 1, 2023. The total OPEB liability was determined using the following actuarial assumptions, applied to all periods
included in the measurement, unless otherwise specified:
Valuation Date
Methods and Assumptions:
Measurement Date
Actuarial Cost Method
Amortization period (in years)
Amortization method
Discount Rate*
Salary Increases*
Healthcare cost trends rates*
October 1, 2023
September 30, 2024
Entry Age Normal as a level percentage of salary
The expected remaining service of all employees eligible for or currently receiving OPEB
through the OPEB plan.
Straight line amortization
4.06% per annum
3.00% per annum
6.51% 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 4.06% is based upon the yield of 20-year tax-exempt general obligation municipal bonds with an average
rating of AA/Aa or higher. The other financial assumptions for long-term inflation, payroll growth, and salary scale were taken
from the TMRS actuary study. The per capita claims costs and how these costs are expected to escalate in the future were
set by HUB International who develops the funding rates.
Plan Assets
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
Changes in the Total OPEB Liability
The retiree medical plan sponsored by the City is offered to all former employees who satisfy the retirement eligibility
provisions of the plan, however only those employees who retire after September 30, 2018 may be eligible for a City subsidy.
The following table shows the changes in total OPEB liability:
Total OPEB
Liability
Balance at October 1, 2023 $ 5,130,466
Changes for the year:
Service cost 346,970
Interest on total OPEB liability 264,649
Change in benefit terms 112,509
Differences between expected and
actual experience 65,369
Change of assumptions (517,028)
Benefit payments (217,056)
Balance at September 30, 2024 $ 5,185,879
Assumption Changes. The discount rate decreased from 4.87% to 4.06%.
72 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the plan's total OPEB liability, calculated using the discount rate, 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:
Current Discount Rate
1% Decrease in Discount Assumption 1% Increase in Discount
Rate (3.06%) (4.06%) Rate (5.06%)
Total OPEB Liability $ 5,916,431 $ 5,185,879 $ 4,799,939
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:
Current
Healthcare Cost
1% Decrease Trend Rates Assumption 1% Increase
(5.51%) (6.51%) (7.51%)
Total OPEB Liability $
4,426,103 $ 5,185,879 $ 6,173,564
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2024, the City recognized OPEB expense of $567,825. At September 30, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Differences between expected and actual experience
Changes assumptions
Deferred Deferred
Outflows of Inflows of
Resources Resources
$
74,880 $ (33,104)
565,783 (1,985,408)
$ 640,663 $ (2,018,512)
Amounts currently reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB
expense as follows.
Fiscal Year
2025 $ (214,141)
2026 (228,592)
2027 (228,592)
2028 (228,592)
2029 (358,143)
Thereafter (119,789)
Total $ (1,377,849)
73 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 12 — Commitments and Contingencies
Litigation and Other Contingencies
The City was involved in various lawsuits and arbitration proceedings at September 30, 2024. 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:
Brask
Crain Group
Endress+Hauser
Graham Ventures
JASH USA/Rodney Hunt
KS Management Services LLC
Millar Inc.
Syzygy Plasmonics
Amounts Paid
Original Amount
$ 419,500
300,000
525,000
198,000
500,000
2,663,000
975,500
565,000 227,500
$ 6,146,000 $ 3,081,760
Prior Years Current Year Amendments Balance
$ $ $ $ 419,500
300,000
493,500 31,500 -
99,000 99,000
500,000
2,261,760
20,746 (380,494)
683,000
207,000
292,500
130,500
942,246 $ (380,494) $ 1,741,500
Regular amendments are made to these agreements over time. Only agreements for which payments were received during
the fiscal year or a balance existed as of September 30, 2024 are listed above.
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 (LKMD) and Pearland Municipal Management District (PMMD
#1) 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).
74 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
The following LFA's have been approved by and between the City and the LKMD and the PMMD #1. The City had receivable
balances at September 30, 2024 of $3,374,014 from the PMMD #1 and $4,184,705 from the LKMD.
Pearland Economic
Capital Development
Projects Fund 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
LK Labrador Rd & Beltway 8 Waterline - 1,600,000
LK Furge Rd ROW Acquisition - 80,000
Total Lower Kirby Pearland Management District - 4,184,705
Total LFA Receivables $ 1,000,000 $ 6,558,719
City funding for these LFAs 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 $761,325 in sales tax incentives over the life of the agreement and $62,238
for fiscal year 2024.
75 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 13 — 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 2024, 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:
Beginning Liability
Claims incurred
Claims payments
Ending Liability
Year Ended September 30,
2022
2023 2024
588,613 $ 527,892 $ 362,526
8,337,574 7,864,240 70,760,840
(8,398,295) (8,029,606) (70,737,281)
527,892 $ 362,526 $ 386,085
76 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
Note 14 — Restatements of Beginning Balances
Error Corrections
During fiscal year 2023, the City overpaid amounts due to certain municipal utility districts (MUDs) for rebates that are based
upon specific tax rate thresholds as set forth in a contractual agreement. Approximately $4.3 million in rebates were paid in
excess of the required amounts for fiscal year 2023. The amounts overpaid were based on known facts prior to September
30, 2023, and therefore were not true expenditures of the City during fiscal year 2023. These amounts were refunded to the
City during fiscal year 2024 and the impact was an increase to the begging balance of fund balance in the Debt Service Fund
of $4.3 million.
During fiscal year 2024, the City identified completed construction projects that had previously been removed from
construction in progress, but were not reported as additions to depreciable capital assets properly in the year of completion.
The City identified $21.3 million in the governmental activities and $7.1 million in the business -type activities (Water and
Sewer Fund). The total impact was an increase to the beginning balance of net position of $28.4 million for the governmental
and business -type activities.
Error Correction Restatements:
City overpaid MUDs in fiscal year
2023 for rebates that were not
owed a rebate
Capital asset corrections
Total Error Correction Restatements
Beginning Balance, as Previously Reported
Beginning Balance, as Restated
Governmental Enterprise
Funds Funds Government -Wide
Debt Service Water and Governmental Business -Type
Fund Sewer Fund Activities Activities
$ 4,253,402 $
Total
- $ 4,253,402 $ - $ 4,253,402
7,121,839 21,278,416
7,121,839 28,400,255
4,253,402 7,121,839 25,531,818 7,121,839 32,653,657
3,369,997 277,774,420 629,294,415 284,021,437 913,315,852
$ 7,623,399 $ 284,896,259 $ 654,826,233 $ 291,143,276 $ 945,969,509
77 City of Pearland, Texas 2024 ACFR
78 City of Pearland, Texas 2024 ACFR
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
79 City of Pearland, Texas 2024 ACFR
80 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Property taxes $ 40,052,339 $ 41,843,330 $ 40,946,317 $ (897,013) $ 31,193,438
Sales and use taxes 32,017,500 30,702,654 31,014,354 311,700 30,592,388
Franchise fees 6,866,455 7,060,378 7,037,329 (23,049) 7,178,462
Licenses and permits 3,997,971 3,605,359 3,486,738 (118,621) 3,419,601
Fines and forfeitures 1,984,305 1,976,340 2,095,237 118,897 1,764,925
Charges for services 23,894,405 23,498,070 24,998,098 1,500,028 20,090,621
Investment earnings 1,432,007 2,200,000 2,621,790 421,790 1,449,623
Intergovernmental (83) - 83 -
0ther 646,306 454,602 1,208,705 754,103 828,550
Total Revenues 110,891,288 111,340,650 113,408,568 2,067,918 96,517,608
Expenditures
Current:
General government 10,095,318 10,210,909 9,816,585 394,324 9,226,863
Public safety 67,162,139 70,352,981 69,696,027 656,954 63,895,113
Public works 12,626,682 13,124,286 11,665,483 1,458,803 10,093,441
Community services 5,465,098 5,337,329 4,782,140 555,189 4,709,377
Parks and recreation 8,685,543 8,577,556 8,330,421 247,135 7,743,360
Debt Service:
Principal 270,158 (270,158) 148,633
Interest and other charges 77,711 (77,711) 3,027
Capital outlay 1,062,400 1,409,917 2,014,364 (604,447) 1,020,858
Total Expenditures 105,097,180 109,012,978 106,652,889 2,360,089 96,840,672
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Issuance of debt - financing arrangement
Sale of general capital assets
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
5,794,108 2,327,672 6,755,679
4,369,155 4,369,155 4,369,155
(8,935,988) (8,935,988) (8,935,988)
1,485,812
3,000 9,202 26,362
(4,563,833) (4,557,631) (3,054,659)
1,230,275 (2,229,959) 3,701,020
31,323,584 31,323,584 31,323,584
4,428,007 (323,064)
(2,036,975)
1,485,812 -
17,160 2,428
1,502,972 (2,034,547)
5,930,979 (2,357,611)
33,681,195
Fund Balances - Ending $ 32,553,859 $ 29,093,625 $ 35,024,604 $ 5,930,979 $ 31,323,584
81 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Sales and use taxes $ 15,858,273 $ 15,229,066 $ 15,301,040 $ 71,974 $
Investment earnings 1,262,839 1,700,000 2,081,390 381,390
Intergovernmental 12,000 12,000 15,000 3,000
Other 10,000 10,000 18,591 8,591
Total Revenues 17,143,112 16,951,066 17,416,021 464,955
Expenditures
Current:
Economic development
Debt Service:
Principal
Interest and other charges
Capital outlay
Total Expenditures
4,497,256
250,000
17,700
1,659,150
6,424,106
5,056,883 4,271,209
250,000
17,700
2,820,150
250,000
17,700
2,101,351
8,144,733 6,640,260
15,078,283
1,506,308
12,000
547,825
17,144,416
785,674 4,576,659
718,799
250,000
23,600
651,619
1,504,473 5,501,878
Excess (Deficiency) of Revenues
Over Expenditures 10,719,006 8,806,333 10,775,761 1,969,428 11,642,538
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
1,500,000
(7,581,259) (12,018,226) (5,856,580) 6,161,646 (16,746,286)
(6,081,259) (12,018,226) (5,856,580) 6,161,646 (16,746,286)
4,637,747 (3,211,893) 4,919,181 8,131,074 (5,103,748)
34,643,302 34,643,302 34,643,302 39,747,050
Fund Balances - Ending $ 39,281,049 $ 31,431,409 $ 39,562,483 $ 8,131,074 $ 34,643,302
82 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY BUDGET INFORMATION
For the Year Ended September 30, 2024
Budgetary Compliance
The City has complied with all material budget requirements for the year ended September 30, 2024.
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.
83 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
Texas Municipal Retirement System
Last Ten Measurement Years
Total Pension Liability
Service cost
Interest
Difference between expected
and actual experience
Change in assumptions
Benefit payments, including refunds of
employee contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position:
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a
Percentage of Total Pension Liability
Measurement Year
2014
2015 2016
2017
2018
2019
2020
2021
2022
2023
$
$
$
5,118,873 $ 6,035,636 $ 6,756,543 $ 7,548,267 $ 7,869,363 $ 8,361,735 $ 9,324,466
7,010,813 7,679,417 8,166,924 9,064,733 9,914,570 10,784,493 11,845,518
241,450 846,833 1,159,738
(304,820)
(2,729,973) (3,808,062) (2,875,256)
9,641,163 10,449,004 13,207,949
98,960,025 108,601,188 119,050,823
108,601,188 $ 119,050,192 $ 132,258,772
4,339,785
2,355,095
4,766,828
(2,729,973)
(49,756)
(4,091)
$
4,786,602
2,498,961
135,758
(3,808,062)
(82,673)
(4,082)
$
33,887
41,404
249,817
952,323
847,255
(3,481,143) (4,953,354) (5,414,199) (4,807,485)
12,871,983 14,934,169 17,209,754
145,424,516 158,296,499 173,230,668
$ 145,424,516 $ 158,296,499 $ 173,230,668 $ 190,440,422
5,253,253 $
2,749,756
6,458,752
(2,875,256)
(72,899)
(3,927)
13,165,744
132,258,772
5,991,467
3,081,580
14,836,941
(3,481,143)
(76,869)
(3,896)
$
6,225,163
3,216,353
(3,818,135)
(4,953,354)
(73,737)
(3,853)
$
6,543,589
3,439,022
19,805,631
(5,414,199)
(111,780)
(3,359)
$
7,258,507
3,866,781
11,569,310
(4,807,485)
(74,766)
(2,917)
$ 9,811,113 $ 10,527,935 $ 11,255,589
12,984,066 14,287,566 15,791,168
2,320,691
3,479,388
3,114,314
(1,196,823)
(5,978,894) (6,347,455) (6,418,808)
19,136,976 21,947,434 22,545,440
190,440,422 209,577,398 231,524,832
$ 209,577,398 $ 231,524,832 $ 254,070,272
$ 7,623,084 $ 8,056,797 $ 8,730,203
4,073,416 4,358,391 4,682,869
22,200,809 (14,471,304) 21,990,446
(5,978,894) (6,347,455) (6,418,808)
(102,560) (124,973) (139,505)
702 149,131 (975)
8,677,888 3,526,504
83,306,773 91,984,661
11,509,679
95,511,165
20,348,080
107,020,843
592,437 24,258,904
127,368,923 127,961,360
17,809,430
152,220,264
27,816,557 (8,379,413) 28,844,230
170, 029, 694 197,846,251 189, 466, 838
91,984,661 95,511,165
107,020,844
127,368,923
127,961,360 152,220,264
170,029,694 197,846,251 189,466,838 218,311,068
$
16,616,527 $ 23,539,027
$ 25,237,928
84.70% 80.23% 80.92%
$
18,055,593 $ 30,335,139
87.58%
80.84%
$ 21,010,404
87.87%
$
20,410,728 $ 11,731,147 $ 42,057,994 $ 35,759,204
89.28%
Covered -Employee Payroll $ 33,615,923 $ 35,545,557 $ 39,282,225 $ 44,013,221 $ 45,939,075 $ 49,128,879 $ 55,239,728
Net Pension Liability as a Percentage
of Covered -Employee Payroll
49.43% 66.22% 64.25%
Notes to the Required Supplementary Information
41.02%
66.03%
42.77%
36.95%
(a) Amounts presented are for each measurement year, which end the preceding December 31 of the City's fiscal year-end.
94.40%
81.83%
85.93%
$ 58,191,657 $ 62,258,636 $ 66,878,131
20.16%
67.55%
53.47%
84 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CONTRIBUTIONS
Texas Municipal Retirement System
Last Ten Fiscal Years
Fiscal Year
2020 2021 2022 2023 2024
Actuarially determined contribution $ 6,818,604 $ 7,545,831 $ 7,989,951 $ 8,669,461 $ 9,413,709
Contribution in relation of the actuarially
determined contribution 6,818,604 7,545,831 7,989,951 8,669,461 9,413,709
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 51,414,583 $ 57,237,508 $ 61,538,157 $ 65,580,842 $ 70,600,572
Contributions as a percentage of covered
payroll 13.26% 13.18% 12.98% 13.22% 13.33%
Fiscal Year
2015 2016 2017 2018 2019
Actuarially determined contribution $ 4,600,419 $ 5,295,359 $ 5,924,405 $ 6,072,762 $ 6,461,150
Contribution in relation of the actuarially
determined contribution 4,600,419 5,295,359 5,924,405 6,072,762 6,461,150
Contribution deficiency (excess) $ - $ - $ - $ - $
Covered payroll $ 34,650,598 $ 39,566,838 $ 43,703,166 $ 44,772,623 $ 48,297,918
Contributions as a percentage of covered
payroll 13.28% 13.38% 13.56% 13.56% 13.38%
85 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NOTES TO REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
For the Year Ended September 30, 2024
Methods and Assumptions Used to Determine Contribution Rates:
Valuation Date:
Notes
Actuarial determined contribution rates are calculated as of
December 31 and become effective in January 13 months later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Other Information:
Notes:
Entry Age Normal
Level Percentage of Payroll, Closed
22 years (longest amortization ladder)
10 Year smoothed market; 12% soft corridor
2.50%
3.60% to 11.85% including inflation
6.75%
Experience -based table of rates that vary by age. Last updated for
the 2023 valuation pursuant to an experience study of the period
ending 2022.
Post -retirement: 2019 Municipal Retirees of Texas Mortality Tables.
Male rates are multiplied by 103% and female rates are multiplied
by 105%. The rates are projected on a fully generational basis by
the most recent Scale MP-2021 (with immediate convergence).
Pre -retirement: PUB(10) mortality tables, with the 110% of the
Public Safety table used for males and the 100% of the General
Employee table used for females. The rates are projected on a fully
generational basis by the most recent Scale MP-2021 (with
immediate convergence).
There were no benefit changes during the year.
86 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
Texas Municipal Retirement System Supplemental Death Benefits Fund
Last Seven Measurement Years
Total OPEB Liability
Service cost
Interest
Difference between expected
and actual experience
Changes of assumptions
Benefit payments, including refunds
of employee contributions
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered Payroll
Total OPEB Liability as a Percentage
of Covered Payroll
Measurement Year
2017 2018
$
66,020 $ 82,690
39,025 41,463
143,594
111,349 (99,775)
(4,401) (4,594)
211,993 163,378
1,001,605 1,213,598
$
1,213,598 $ 1,376,976
$ 44,013,221 $ 45,939,075
2.76%
Notes to the Required Supplementary Information
3.00%
2019
$
2020 2021
73,693 $
52,362
110,479 $ 139,660
44,073 40,441
(224,466) (27,031) (35,262)
276,531 291,685 73,519
(4,913) (5,524) (23,277)
173,207
1,376,976
$
1,550,183
413,682 195,081
1,550,183 1,963,865
$
1,963,865
$
2,158, 946
$ 49,128,879 $ 55,239,728 $ 58,191,657
3.16%
3.56% 3.71%
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.
2022
$ 149,421
40,870
30,912
(870,455)
(24,903)
(674,155)
2,158, 946
$
1,484, 791
$ 62,258,636
2.38%
2023
$ 66,878
60,811
(4,088)
85,969
(33,439)
176,131
1,484,791
$ 1,660,922
$ 66,878,131
2.48%
87 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
City Of Pearland Retirement Health Care Plan
Last Seven Fiscal Years
Total OPEB Liability
Service cost
Interest
Changes of benefit terms
Difference between expected
and actual experience
Changes of assumptions
Benefit payments, including refunds
of employee contributions
Net change in total OPEB liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered -Employee Payroll
Fiscal Year
2018
2019
$ 456,161 $
240,852
(2,314,150)
361,831
43,043
(127,339)
(1,339,602)
5,266,971
$ 3,927,369
$ 44,772,623
Total OPEB Liability as a Percentage
of Covered -Employee Payroll 8.77%
Notes to the Required Supplementary Information
Ten years of data should be presented in this schedule, but data was unavailable prior to fiscal year 2018.
There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
2020
295,552 $
157,119
101,145
2021
2022
2023 2024
364,519 $ 515,331 $ 531,977 $ 304,981 $ 346,970
241,690 264,649
- - 112,509
167,755 140,612 169,734
(74,479)
1,240,492
(66,167) (38,350)
487,649
3,927,369
$
4,415,018
1,659,937
4,415,018
$
28,290
(203,273) (2,206,085)
(39,277) (127,324)
413,393 (1,603,408)
6,074,955 6,488,348
6,074,955 $
6,488,348 $ 4,884,940
$ 48,297,918 $ 51,067,300 $ 54,267,466
$ 62,799,942
9.14% 11.90%
11.96%
7.78%
(55,038)
(246,107)
245,526
4,884,940
$
5,130,466
65,369
(517,028)
(217,056)
55,413
5,130,466
$
5,185,879
$ 63,986,647 $ 65,906,246
8.02%
7.87%
88 City of Pearland, Texas 2024 ACFR
OTHER SUPPLEMENTARY INFORMATION
89 City of Pearland, Texas 2024 ACFR
90 City of Pearland, Texas 2024 ACFR
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
91 City of Pearland, Texas 2024 ACFR
92 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
Hotel/Motel Occupancy Tax Fund
A fund created to account for hotel/motel occupancy tax revenue.
Municipal Court Security Fund
A fund created to account for the receipt and expenditure of revenues from court fines for court security.
City Wide Donation Fund
A fund created to account for miscellaneous donations for all City departments except parks.
Court Technology Fund
This fund is used to account for the receipt and expenditure of revenues from court fines for court technology.
Street Assessment Fund
A fund created to account for the revenue and expenditure of street assessments as approved by City Council for a
designated street(s).
Park Donations Fund
A fund used to account for park donations for park special events and development of parks. This fund also includes
funds from tree trust donations.
Tree Trust Fund
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 Fund
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 Fund
A fund created to account for state seizure funds which are used solely for law enforcement purposes.
Police Federal Seizure Fund
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.
Parks & Recreation Development Fund
A fund created to account for the receipt and expenditure of payment in lieu of parkland for the development of parks.
Sidewalk Fund
A fund created to account for resources designated for sidewalks.
93 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
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.
94 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
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 Fund
To account for all revenues and expenditures associated with the Opioid Settlement funds.
Traffic Impact Improvement Fund
A fund created to account for resources and expenditures from traffic impact analysis.
Truancy Prevention and Diversion Fund
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.
95 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
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
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Hotel/Motel
Occupancy Tax
Fund
Municipal Court City Wide
Security Fund Donation Fund
Court
Technology
Fund
$ 7,899,471 $ 75,506 $ 248,473 $ 17,281
523,043
18,541
605
$ 8,441,055 $ 75,506 $ 249,078 $ 17,281
$ 16,589 $
19,032
35,621
18,541
8,386,893
8,405,434
- $ 140 $
1,168
1,168
74,338
74,338
140
248,938
248,938
325
325
16,956
16,956
$ 8,441,055 $ 75,506 $ 249,078 $ 17,281
Page 1 of 8
96 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
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
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Street
Assessment
Fund
$
Park Donations
Fund
Parks Financial
Assistance
Tree Trust Fund Donations Fund
55 $ 76,174 $ 1,458,428 $ 2,994
1,486,878
11,359
$ 1,486,933 $ 76,174 $ 1,469,787 $ 2,994
$
- $ 25,069 $ 15,746 $
1,486,878
1,486,878
55
55
25,069
51,105
51,105
15,746
11,359
1,442,682
1,454,041
2,994
2,994
$ 1,486,933 $ 76,174 $ 1,469,787 $ 2,994
Page 2 of 8
97 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
Parks &
Recreation
Police State Police Federal Community Development
Seizure Fund Seizure Fund Safety Fund Fund
Assets
Cash and cash equivalents $ 128,100 $ 190,147 $ 44,096 $ 1,337,666
Receivables (net of allowance
for uncollectibles) 2,372 28,219
Prepaids - -
Total Assets $ 130,472 $ 218,366 $ 44,096 $ 1,337,666
Liabilities
Accounts payable $ 5,089 $ 2,851 $ - $
Accrued liabilities - - -
Due to other funds - - Unearned revenue - - -
Total Liabilities 5,089 2,851
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
Restricted 125,383 215,515 44,096 1,337,666
Assigned
Unassigned
Total Fund Balances 125,383 215,515 44,096 1,337,666
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 130,472 $ 218,366 $ 44,096 $ 1,337,666
Page 3 of 8
98 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
Drainage
Maintenance
Sidewalk Fund Fund
Grant Fund
CDBG Grant
Fund
Assets
Cash and cash equivalents $ 69,066 $ 1,372,794 $ 85,813 $
Receivables (net of allowance
for uncollectibles) - - 11,282
Prepaids
Total Assets $ 69,066 $ 1,372,794 $ 97,095 $
Liabilities
Accounts payable $ - $ 1,185 $ 648 $ 2,246
Accrued liabilities - 35,739 9,294 1,079
Due to other funds - - - 61,549
Unearned revenue - - - -
Total Liabilities - 36,924 9,942 64,874
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable - - -
Restricted - - -
Assigned 69,066 1,335,870 87,153
Unassigned - - - (64,874)
Total Fund Balances 69,066 1,335,870 87,153 (64,874)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 69,066 $ 1,372,794 $ 97,095 $
Page 4 of 8
99 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
CDBG Disaster Disaster Hazard Coronavirus
Recovery Fund Recovery Fund Mitigation Fund Relief Fund
Assets
Cash and cash equivalents $
Receivables (net of allowance
for uncollectibles)
Prepa ids
- $ 86,548 $
Total Assets $
2,251
- $ 88,799 $
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
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
- $ 3,502,434 $
362,071
362,071
336,484
3,838,918
(362,071) (3,750,119)
(362,071) (3,750,119)
355,269
355,269
$
$
$
1,412,395
1,412,395
(355,269) (1,412,395)
(355,269) (1,412,395)
$ - $ 88,799 $
Page 5of8
100 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
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
Traffic Impact Truancy
Opioid Improvement Prevention and
ARPA Fund Settlement Fund Fund Diversion Fund
$ 2,678,889 $ 104,772 $ 355,777 $
$
2,678,889 $ 104,772 $ 355,777 $
$ 12,320 $
2,678,889
$
-
$ 100
- 1,734
- 3,442
2,691,209 - - 5,276
Fund Balances
Nonspendable - - - -
Restricted - 104,772 355,777 -
Assigned - - - -
Unassigned (12,320) - - (5,276)
Total Fund Balances (12,320) 104,772 355,777 (5,276)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 2,678,889 $ 104,772 $ 355,777 $
Page 6 of 8
101 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
Municipal
Municipal Jury Channel (PEG)
Fund Fund
U of H Fund
Regional
Detention Fund
Assets
Cash and cash equivalents $ 3,596 $ 568,264 $ - $ 223,566
Receivables (net of allowance
for uncollectibles) - 10,151 - -
Prepaids - - - -
Total Assets $ 3,596 $ 578,415 $ - $ 223,566
Liabilities
Accounts payable $ 120 $ - $ - $
Accrued liabilities - - 27,299
Due to other funds - -
Unearned revenue - -
Total Liabilities 120 - 27,299
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
Fund Balances
Nonspendable - - -
Restricted 3,476 578,415
Assigned - - - 223,566
Unassigned - - (27,299) -
Total Fund Balances 3,476 578,415 (27,299) 223,566
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 3,596 $ 578,415 $ - $ 223,566
Page 7 of 8
102 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS
September 30, 2024
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
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Infrastructure
Reinvestment
Fund
$
Total
Nonmajor
Governmental
Funds
- $ 17,027,476
2,064,801
29,900
$ - $ 19,122,177
$ 2,665 $
252,066
254,731
3,587,527
95,345
2,783,276
2,678,889
9,145,037
1,486,878
1,486,878
- 29,900
- 12,989,061
- 1,715,655
(254,731) (6,244,354)
(254,731)
$
8,490,262
- $ 19,122,177
Page 8 of 8
103 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
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
Interest and other charges
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
Hotel/Motel
Occupancy Tax Municipal Court
Fund Security Fund
$
1,919,535 $
401,344
1,947
2,322,826
1,003,489
21,185
150
1,024,824
1,298,002
41,763
3,021
44,784
28,980
28,980
15,804
City Wide
Donation Fund
10,405
41,195
51,600
27,943
27,943
23,657
Court
Technology
Fund
$
34,245
598
34,843
24,024
24,024
10,819
(636,221) - - -
(636,221) - - -
661,781 15,804 23,657 10,819
7,743,653 58,534 225,281 6,137
$ 8,405,434 $ 74,338 $ 248,938 $ 16,956
Page 1 of 8
104 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
Street Parks Financial
Assessment Park Donations Assistance
Fund Fund Tree Trust Fund Donations Fund
Revenues
Sales and use taxes $ - $ - $ - $
Franchise fees - - -
Licenses and permits - - -
Fines and forfeitures - -
Charges for services - 155,994 -
Investment earnings 3 4,486 62,871 131
Intergovernmental - - -
Other 124,328 - 5,000
Total Revenues 3 128,814 218,865 5,131
Expenditures
Current:
General government - - -
Public safety - - -
Public works
Community services - 64,167
Parks and recreation 163,035 - 5,000
Debt Service:
Principal - - -
Interest and other charges - - -
Capital outlay - 95,961 -
Intergovernmental - - -
Total Expenditures 163,035 160,128 5,000
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
3 (34,221) 58,737 131
3 (34,221) 58,737 131
52 85,326 1,395,304 2,863
$
55 $ 51,105 $ 1,454,041 $ 2,994
Page 2 of 8
105 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
Parks &
Recreation
Police State Police Federal Community Development
Seizure Fund Seizure Fund Safety Fund Fund
Revenues
Sales and use taxes $ - $ - $ - $
Franchise fees
Licenses and permits - - 471,787
Fines and forfeitures - - -
Charges for services - - -
Investment earnings 8,207 6,084 6,241 39,454
Intergovernmental -
Other 63,126 98,908
Total Revenues 71,333 104,992 6,241 511,241
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Interest and other charges
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
22,689
105,560
128,249
83,347 -
- 18,700
83,347 18,700
(56,916) 21,645 (12,459) 511,241
Other Financing Sources (Uses)
Transfers in - - 234,098
Transfers out - (168,515) -
Total Other Financing Sources (Uses) - (168,515) 234,098
Net change in Fund Balances (56,916) 21,645 (180,974) 745,339
Fund Balances - Beginning 182,299 193,870 225,070 592,327
Fund Balances (Deficit) - Ending $ 125,383 $ 215,515 $ 44,096 $ 1,337,666
Page 3 of 8
106 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
Drainage
Maintenance
Sidewalk Fund Fund
Grant Fund
CDBG Grant
Fund
Revenues
Sales and use taxes $ - $ - $ - $
Franchise fees - - -
Licenses and permits - - -
Fines and forfeitures - - -
Charges for services - - -
Investment earnings 3,001 45,256 - -
Intergovernmental 358,780 338,343
Other - - -
Total Revenues 3,001 45,256 358,780 338,343
Expenditures
Current:
General government - 1,500
Public safety - 125,485
Public works 1,296,070
Community services - 15,227
Parks and recreation - - -
Debt Service:
Principal - - -
Interest and other charges - - -
Capital outlay - 300,513 -
Intergovernmental - - 450,781
Total Expenditures 1,296,070 427,498 466,008
Excess (Deficiency) of Revenues
Over Expenditures
3,001 (1,250,814) (68,718) (127,665)
Other Financing Sources (Uses)
Transfers in 2,130,458
Transfers out - (88,665) -
Total Other Financing Sources (Uses) 2,130,458 (88,665) -
Net change in Fund Balances 3,001 879,644 (157,383) (127,665)
Fund Balances - Beginning 66,065 456,226 244,536 62,791
Fund Balances (Deficit) - Ending $ 69,066 $ 1,335,870 $ 87,153 $ (64,874)
Page 4of8
107 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
CDBG Disaster Disaster Hazard Coronavirus
Recovery Fund Recovery Fund Mitigation Fund Relief Fund
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
Interest and other charges
Capital outlay
Intergovernmental
Total Expenditures
53,653
648
54,301
Excess (Deficiency) of Revenues
Over Expenditures (54,301)
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances - Beginning
(54,301)
2,246
2,246
3,683,963
3,683,963
(3,681,717)
(3,681,717)
(307,770) (68,402)
Fund Balances (Deficit) - Ending $
47,179
47,179
308,854
9,900
318,754
(271,575)
(271,575)
$
(83,694) (1,412,395)
(362,071) $ (3,750,119) $ (355,269) $ (1,412,395)
Page 5of8
108 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
Traffic Impact Truancy
Opioid Improvement Prevention and
ARPA Fund Settlement Fund Fund Diversion Fund
Revenues
Sales and use taxes $ - $ - $ - $
Franchise fees
Licenses and permits
Fines and forfeitures - - 42,825
Charges for services
Investment earnings - - 15,457
Intergovernmental
Other
Total Revenues - 15,457 42,825
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Debt Service:
Principal
Interest and other charges
Capital outlay
Intergovernmental
Total Expenditures
12,320
- 43,773
12,320 - - 43,773
Excess (Deficiency) of Revenues
Over Expenditures (12,320) - 15,457 (948)
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
(12,320) - 15,457 (948)
104,772 340,320 (4,328)
$ (12,320) $ 104,772 $ 355,777 $ (5,276)
Page 6 of 8
109 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
Municipal
Municipal Jury Channel (PEG)
Fund Fund
U of H Fund
Regional
Detention Fund
Revenues
Sales and use taxes $ - $ - $ - $
Franchise fees 179,526 - -
Licenses and permits - - -
Fines and forfeitures 1,204 - - -
Charges for services - - 7,000
Investment earnings 150 25,413 9,568
Intergovernmental
Other - - -
Total Revenues 1,354 204,939 - 16,568
Expenditures
Current:
General government
Public safety
Public works
Community services 420 15,676
Parks and recreation
Debt Service:
Principal -
Interest and other charges -
Capital outlay 150,425
Intergovernmental -
Total Expenditures 420 166,101
Excess (Deficiency) of Revenues
Over Expenditures 934 38,838 - 16,568
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in Fund Balances 934 38,838 - 16,568
Fund Balances - Beginning 2,542 539,577 (27,299) 206,998
Fund Balances (Deficit) - Ending $ 3,476 $ 578,415 $ (27,299) $ 223,566
Page 7 of 8
110 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NON -MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2024
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
Interest and other charges
Capital outlay
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
Infrastructure
Reinvestment
Fund
$
42,364
42,364
2,344,366
701,740
3,046,106
(3,003,742)
1,300,000
1,300,000
(1,703,742)
1,449,011
$ (254,731)
Total
Nonmajor
Governmental
Funds
$ 1,919,535
179,526
471,787
120,037
162,994
684,054
697,123
383,929
4,618,985
3,697,783
176,117
3,640,436
192,267
1,171, 524
21,185
150
1,800,053
480,029
11,179, 544
(6,560,559)
3,664,556
(893,401)
2,771,155
(3,789,404)
12,279,666
$ 8,490,262
Page 8 of 8
111 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Property taxes $ 41,319,476 $ 40,301,531 $ 39,578,274 $ (723,257) $ 36,875,417
Investment earnings 350,000 1,298,217 966,443 (331,774) 371,342
Other 11,399,761 11,920,947 692,978 (11,227,969) 10,802,953
Total Revenues 53,069,237 53,520,695 41,237,695 (12,283,000) 48,049,712
Expenditures
Debt Service:
Principal 24,580,000 34,985,000 34,985,000 - 18,035,000
Interest and other charges 15,368,035 15,463,143 15,203,893 259,250 15,535,258
Bond issuance costs 7,301,545 817,589 783,864 33,725 10,093,025
Intergovernmental 8,879,000 3,553,080 3,516,458 36,622 8,048,963
Total Expenditures 56,128,580 54,818,812 54,489,215 329,597 51,712,246
Excess (Deficiency) of Revenues
Over Expenditures (3,059,343) (1,298,117) (13,251,520) (11,953,403) (3,662,534)
Other Financing Sources (Uses)
Transfers in 4,501,938 87,519 11,315,319 11,227,800 3,552,442
Capital bonds issued - - - - 4,420,000
Payment to refunded bond escrow agent - (4,376,057)
Total Other Financing Sources (Uses) 4,501,938 87,519 11,315,319 11,227,800 3,596,385
Net change in Fund Balances 1,442,595 (1,210,598) (1,936,201) (725,603) (66,149)
Fund Balances - Beginning,
as Restated
Fund Balances - Ending
7,623,399 7,623,399 7,623,399
3,436,146
$ 9,065,994 $ 6,412,801 $ 5,687,198 $ (725,603) $ 3,369,997
112 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
HOTEL/MOTEL OCCUPANCY TAX FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Sales and use taxes
Investment earnings
Other
Total Revenues
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
1,552,000
150,000
15,000
1,717,000
$
1,748,212 $ 1,919,535
387,835 401,344
2,965 1,947
2,139,012 2,322,826
$
171,323 $ 1,747,149
13,509 304,679
(1,018) 22,348
183,814 2,074,176
Expenditures
Current:
Parks and recreation 1,084,333 1,149,730 1,003,489 146,241 933,539
Debt Service:
Principal 21,185 (21,185) 20,454
Interest and other charges - - 150 (150) -
Capital outlay - 105,603
Total Expenditures 1,084,333 1,149,730 1,024,824 124,906 1,059,596
Excess (Deficiency) of Revenues
Over Expenditures 632,667 989,282 1,298,002 308,720 1,014,580
Other Financing Sources (Uses)
Transfers out (636,221) (636,221) (636,221) - (31,515)
Issuance of debt - financing arrangement - 105,603
Total Other Financing Sources (Uses) (636,221) (636,221) (636,221) 74,088
Net change in Fund Balances (3,554) 353,061 661,781 308,720 1,088,668
Fund Balances - Beginning
7,743,653 7,743,653 7,743,653
Fund Balances - Ending $ 7,740,099 $ 8,096,714 $ 8,405,434
$
6,654,985
308,720 $ 7,743,653
113 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
MUNICIPAL COURT SECURITY FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Fines and forfeitures $ 42,000 $ 38,500 $ 41,763 $ 3,263 $ 36,686
Investment earnings 825 2,934 3,021 87 1,741
Total Revenues 42,825 41,434 44,784 3,350 38,427
Expenditures
Current:
Community services
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
50,127 31,531 28,980 2,551 40,606
50,127 31,531 28,980 2,551 40,606
(7,302) 9,903 15,804 5,901 (2,179)
58,534 58,534 58,534 60,713
$ 51,232 $ 68,437 $ 74,338 $ 5,901 $ 58,534
114 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
CITY WIDE DONATION FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Investment earnings $ 3,870 $ 10,845 $ 10,405 $ (440) $ 7,235
Other 65,800 30,600 41,195 10,595 170,432
Total Revenues 69,670 41,445 51,600 10,155 177,667
Expenditures
Current:
Public safety
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
92,000 49,537 27,943 21,594
92,000 49,537 27,943 21,594
(22,330) (8,092) 23,657 31,749
183,367
183,367
(5,700)
225,281 225,281 225,281 230,981
$ 202,951 $ 217,189 $ 248,938 $ 31,749 $ 225,281
115 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
COURT TECHNOLOGY FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Fines and forfeitures $ 45,000 $ 34,000 $ 34,245 $ 245 $ 30,200
Investment earnings 50 447 598 151 93
Total Revenues 45,050 34,447 34,843 396 30,293
Expenditures
Current:
Community services
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
33,648 26,804 24,024 2,780 23,551
33,648 26,804 24,024 2,780 23,551
11,402 7,643 10,819 3,176 6,742
6,137 6,137 6,137 (605)
$ 17,539 $ 13,780 $ 16,956 $ 3,176 $ 6,137
116 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
STREET ASSESSMENT FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Investment earnings
Total Revenues
Expenditures
Total Expenditures
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
3 $ 3 $ - $ 1
3
3 - 1
Net Change in Fund Balances 3 3 1
Fund Balances - Beginning
Fund Balances - Ending
52 52 52 51
$ 52 $ 55 $ 55 $ $ 52
117 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
PARK DONATIONS FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original
Budget
Revenues
Investment earnings $ 828
Other 120,100
Total Revenues 120,928
Expenditures
Current:
Parks and recreation
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Final
Budget
Actual
$ 4,849 $
204,010
208,859
Variance with
Final Budget
2023
4,486 $ (363) $ 2,251
124,328
128,814
(79,682) 126,536
(80,045)
109,200 255,879 163,035 92,844
109,200 255,879 163,035 92,844
11,728 (47,020) (34,221) 12,799
85,326 85,326 85,326
Fund Balances - Ending $
97,054 $ 38,306 $ 51,105 $
128,787
68,382
68,382
60,405
24,921
12,799 $ 85,326
118 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
TREE TRUST FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Charges for services $ 2,000 $ 51,250 $ 155,994 $ 104,744 $ 425,900
Investment earnings 22,500 63,962 62,871 (1,091) 44,393
Total Revenues 24,500 115,212 218,865 103,653 470,293
Expenditures
Current:
Community services 72,500 77,500 64,167 13,333 22,752
Capital outlay 365,000 363,522 95,961 267,561 286,478
Total Expenditures 437,500 441,022 160,128 280,894 309,230
Net Change in Fund Balances (413,000) (325,810) 58,737 384,547 161,063
Fund Balances - Beginning
1,395,304 1,395,304 1,395,304
1,234,241
Fund Balances - Ending $ 982,304 $ 1,069,494 $ 1,454,041 $ 384,547 $ 1,395,304
119 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
PARKS FINANCIAL ASSISTANCE DONATIONS FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Investment earnings $ 50 $ 110 $ 131 $ 21 $ 19
Other 8,056 5,000 5,000 11,000
Total Revenues 8,106 5,110 5,131 21 11,019
Expenditures
Current:
Parks and recreation
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
5,000 5,000
5,000 5,000
8,106 110 131 21 11,019
2,863 2,863 2,863 (8,156)
$ 10,969 $ 2,973 $ 2,994 $ 21 $ 2,863
120 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
POLICE STATE SEIZURE FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Investment earnings $ 3,133 $ 9,938 $ 8,207 $ (1,731) $ 5,331
Other 50,000 63,126 13,126 59,492
Total Revenues 3,133 59,938 71,333 11,395 64,823
Expenditures
Current:
Public safety 55,200 49,751 22,689 27,062 90,701
Capital outlay 104,835 105,560 (725) -
Total Expenditures 55,200 154,586 128,249 26,337 90,701
Net Change in Fund Balances (52,067) (94,648) (56,916) 37,732 (25,878)
Fund Balances - Beginning
Fund Balances - Ending
182,299 182,299 182,299 208,177
$ 130,232 $ 87,651 $ 125,383 $ 37,732 $ 182,299
121 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
POLICE FEDERAL SEIZURE FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Investment earnings $ 3,750 $ 6,360 $ 6,084 $ (276) $ 6,531
Other 8,000 98,908 90,908 150,993
Total Revenues 3,750 14,360 104,992 90,632 157,524
Expenditures
Current:
Public safety 15,000 - - 33,357
Capital outlay 83,348 83,347 1 49,195
Total Expenditures 15,000 83,348 83,347 1 82,552
Net Change in Fund Balances (11,250) (68,988) 21,645 90,633 74,972
Fund Balances - Beginning
193,870 193,870 193,870 118,898
Fund Balances - Ending $ 182,620 $ 124,882 $ 215,515 $ 90,633 $ 193,870
122 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original
Budget
Final
Budget Actual
Revenues
Investment earnings $ 2,625 $
Total Revenues 2,625
Expenditures
Intergovernmental
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures 2,625
Other Financing Sources (Uses)
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
8,539 $
Variance with
Final Budget
2023
6,241 $ (2,298) $ 6,535
8,539 6,241
50,000
50,000
18,700
18,700
(2,298)
31,300
31,300
6,535
13,381
13,381
(41,461) (12,459) 29,002 (6,846)
(168,515) (168,515)
(168,515) (168,515)
2,625 (209,976) (180,974) 29,002 (6,846)
225,070 225,070 225,070 - 231,916
$ 227,695 $
15,094 $ 44,096 $ 29,002 $ 225,070
123 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
PARKS & RECREATION DEVELOPMENT FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Licenses and permits
Investment earnings
Total Revenues
Original Final Variance with
Budget Budget Actual Final Budget 2023
$ 200,000 $ 210,000 $ 471,787 $ 261,787 $ 202,269
10,500 33,728 39,454 5,726 19,278
210,500 243,728 511,241 267,513 221,547
Expenditures
Capital outlay 616,154 - 616,154
Total Expenditures 616,154 - 616,154
Excess (Deficiency) of Revenues
Over Expenditures
210,500 (372,426) 511,241 883,667 221,547
Other Financing Sources (Uses)
Transfers in 94,900 234,098 234,098
Transfers out -
Total Other Financing Sources (Uses) 94,900 234,098 234,098
Net Change in Fund Balances
Fund Balances - Beginning
(334,721)
(334,721)
305,400 (138,328) 745,339 883,667 (113,174)
592,327 592,327 592,327 705,501
Fund Balances - Ending $ 897,727 $ 453,999 $ 1,337,666 $ 883,667 $ 592,327
124 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Charges for services $ 5,000 $ - $ $ - $ -
Investment earnings 975 3,114 3,001 (113) 1,908
Total Revenues 5,975 3,114 3,001 (113) 1,908
Expenditures
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
5,975 3,114 3,001 (113) 1,908
66,065 66,065 66,065 64,157
$ 72,040 $ 69,179 $ 69,066 $ (113) $ 66,065
125 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Investment earnings $ 5,115 $ 40,985 $ 45,256 $ 4,271 $ 10,767
Total Revenues 5,115 40,985 45,256 4,271 10,767
Expenditures
Current:
Public works
Total Expenditures
1,939,613
1,939,613
1,731,553 1,296,070
1,731,553 1,296,070
435,483 1,559,999
435,483 1,559,999
Excess (Deficiency) of Revenues
Over Expenditures (1,934,498) (1,690,568) (1,250,814) 439,754 (1,549,232)
Other Financing Sources (Uses)
Transfers in 2,097,958 2,130,458 2,130,458 2,005,458
Total Other Financing Sources (Uses) 2,097,958 2,130,458 2,130,458 2,005,458
Net Change in Fund Balances
163,460 439,890 879,644 439,754 456,226
Fund Balances - Beginning 456,226 456,226 456,226
Fund Balances - Ending $ 619,686 $ 896,116 $ 1,335,870 $ 439,754 $ 456,226
126 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Intergovernmental $ 180,030 $ 525,909 $ 358,780 $ (167,129) $ 666,054
Other 231,540
Total Revenues 180,030 525,909 358,780 (167,129) 897,594
Expenditures
Current:
General government 28,752 26,752 1,500 25,252 9,829
Public safety 248,736 260,333 125,485 134,848 323,758
Parks and recreation - - 3,244
Capital outlay 241,583 300,513 (58,930) 871,081
Total Expenditures 277,488 528,668 427,498 101,170 1,207,912
Excess (Deficiency) of Revenues
Over Expenditures
(97,458) (2,759) (68,718) (65,959) (310,318)
Other Financing Sources (Uses)
Transfers in - 84,721
Transfers out (94,900) (88,665) (88,665)
Total Other Financing Sources (Uses) (94,900) (88,665) (88,665) 84,721
Net Change in Fund Balances (192,358) (91,424) (157,383) (65,959) (225,597)
Fund Balances - Beginning
Fund Balances - Ending
244,536 244,536 244,536 470,133
$ 52,178 $ 153,112 $ 87,153 $ (65,959) $ 244,536
127 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Intergovernmental
Total Revenues
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
466,162 $ 3,978,023 $ 338,343 $ (3,639,680) $ 277,601
466,162 3,978,023
338,343 (3,639,680) 277,601
Expenditures
Current:
General government 40,794 69,848 - 69,848 72,042
Community services 72,620 15,227 15,227 - 60,828
Capital outlay 267,195 3,197,822 - 3,197,822 -
Intergovernmental 86,731 695,126 450,781 244,345 91,326
Total Expenditures 467,340 3,978,023 466,008 3,512,015 224,196
Net Change in Fund Balances (1,178) (127,665) (127,665) 53,405
Fund Balances - Beginning 62,791 62,791 62,791 9,386
Fund Balances (Deficit) - Ending $ 61,613 $ 62,791 $ (64,874) $ (127,665) $ 62,791
128 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Intergovernmental
Total Revenues
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
- $ 16,527,000 $ - $ (16,527,000) $
16,527,000 - (16,527,000)
Expenditures
Current:
General government 69,563 - 69,563 28,490
Capital outlay 14,875,748 53,653 14,822,095 -
Intergovernmental 1,581,689 648 1,581,041 167
Total Expenditures 16,527,000 54,301 16,472,699 28,657
Net Change in Fund Balances
Fund Balances - Beginning
(54,301) (54,301) (28,657)
(307,770) (307,770) (307,770)
(279,113)
Fund Balances (Deficit) - Ending $ (307,770) $ (307,770) $ (362,071) $ (54,301) $ (307,770)
129 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Intergovernmental $ $ $ $ $ 46,945
Other 2,246 2,246 238,884
Total Revenues - 2,246 2,246 285,829
Expenditures
Current:
General government
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
3,683,963 (3,683,963)
3,683,963 (3,683,963)
(3,681,717) (3,681,717) 285,829
(68,402) (68,402) (68,402) (354,231)
$
(68,402) $ (68,402) $ (3,750,119) $ (3,681,717) $ (68,402)
130 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Intergovernmental
Other
Total Revenues
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
$ 7,306,377 $ - $ (7,306,377) $
7,306,377
47,179
47,179 -
47,179 (7,259,198)
Expenditures
Current:
General government 30,138 - 30,138 8,888
Capital outlay 4,805,481 308,854 4,496,627 -
Intergovernmental 2,470,758 9,900 2,460,858 16,881
Total Expenditures 7,306,377 318,754 6,987,623 25,769
Net Change in Fund Balances
Fund Balances - Beginning (83,694)
Fund Balances (Deficit) - Ending
$
(271,575) (271,575)
(83,694) (83,694)
(25,769)
(57,925)
(83,694) $ (83,694) $ (355,269) $ (271,575) $ (83,694)
131 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Total Revenues
Expenditures
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Total Other Financing Sources (Uses)
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
$ - $
1,827,767
1,827,767
Net Change in Fund Balances 1,827,767
Fund Balances - Beginning
(1,412,395) (1,412,395) (1,412,395)
Fund Balances (Deficit) - Ending $ (1,412,395) $ (1,412,395) $ (1,412,395) $
(3,240,162)
$ (1,412,395)
132 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Intergovernmental
Total Revenues
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
$ 2,654,637 $ - $ (2,654,637) $ 4,619,182
2,654,637 - (2,654,637) 4,619,182
Expenditures
Current:
General government 2,624,913 12,320 2,612,593 12,450
Capital outlay 29,724 - 29,724 1,104,264
Total Expenditures 2,654,637 12,320 2,642,317 1,116,714
Excess (Deficiency) of Revenues
Over Expenditures (12,320) (12,320) 3,502,468
Other Financing Sources (Uses)
Transfers out - - (3,502,468)
Total Other Financing Sources (Uses) - - (3,502,468)
Net Change in Fund Balances (12,320) (12,320)
Fund Balances - Beginning - - -
Fund Balances (Deficit) - Ending $ $ - $ (12,320) $ (12,320) $
133 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
OPIOID SETTLEMENT FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Intergovernmental
Total Revenues
Expenditures
Total Expenditures
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
$ - $ 104,772
104,772
Net Change in Fund Balances 104,772
Fund Balances - Beginning 104,772 104,772 104,772
Fund Balances - Ending
$ 104,772 $ 104,772 $ 104,772 $ $ 104,772
134 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
TRAFFIC IMPACT IMPROVEMENT FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Investment earnings $ 5,209 $ 15,813 $ 15,457 $ (356) $ 9,831
Total Revenues 5,209 15,813 15,457 (356) 9,831
Expenditures
Current:
Public works
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
214,920 -
214,920 -
(209,711) 15,813 15,457 (356) 9,831
340,320 340,320 340,320 330,489
$ 130,609 $ 356,133 $ 355,777 $ (356) $ 340,320
135 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
TRUANCY PREVENTION AND DIVERSION FUND
For the Year Ended September 30, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Fines and forfeitures $ 52,500 $ 39,500 $ 42,825 $ 3,325 $ 37,705
Investment earnings 2
Total Revenues 52,500 39,500 42,825 3,325 37,707
Expenditures
Current:
Community services
Total Expenditures
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
43,910 44,294 43,773 521 41,390
43,910 44,294 43,773 521 41,390
8,590 (4,794) (948) 3,846 (3,683)
(4,328) (4,328) (4,328) (645)
$ 4,262 $ (9,122) $ (5,276) $ 3,846 $ (4,328)
136 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Fines and forfeitures $ 1,000 $ 1,000 $ 1,204 $ 204 $ 715
Investment earnings 35 148 150 2 65
Total Revenues 1,035 1,148 1,354 206 780
Expenditures
Current:
Community services 1,000 1,000 420 580
Total Expenditures 1,000 1,000 420 580
Net Change in Fund Balances 35 148 934 786 780
Fund Balances - Beginning
Fund Balances - Ending
2,542 2,542 2,542 1,762
$ 2,577 $ 2,690 $ 3,476 $ 786 $ 2,542
137 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Franchise fees $ 235,000 $ 200,000 $ 179,526 $ (20,474) $ 204,814
Investment earnings 11,325 24,455 25,413 958 18,754
Total Revenues 246,325 224,455 204,939 (19,516) 223,568
Expenditures
Current:
Community services 101,500 101,500 15,676 85,824 39,126
Capital outlay 150,425 150,425 -
Total Expenditures 101,500 251,925 166,101 85,824 39,126
Net Change in Fund Balances 144,825 (27,470) 38,838 66,308 184,442
Fund Balances - Beginning
Fund Balances - Ending
539,577 539,577 539,577 355,135
$ 684,402 $ 512,107 $ 578,415 $ 66,308 $ 539,577
138 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Revenues
Total Revenues
Expenditures
Total Expenditures
Net Change in Fund Balances
Original Final Variance with
Budget Budget Actual Final Budget 2023
$
$ - $
Fund Balances - Beginning $ (27,299) $ (27,299) $ (27,299) $ $ (27,299)
Fund Balances (Deficit) - Ending $ (27,299) $ (27,299) $ (27,299) $ $ (27,299)
139 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget 2023
Revenues
Charges for services $ - $ - $ 7,000 $ 7,000 $ 4,000
Investment earnings 3,150 9,715 9,568 (147) 5,967
Total Revenues 3,150 9,715 16,568 6,853 9,967
Expenditures
Total Expenditures
Net change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
3,150 9,715 16,568 6,853 9,967
206,998 206,998 206,998 197,031
$ 210,148 $ 216,713 $ 223,566 $ 6,853 $ 206,998
140 City of Pearland, Texas 2024 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, 2024
With Comparative Actual for the Year Ended September 30, 2023
Original
Budget
Final
Budget
Revenues
Investment earnings $ 26,921 $
Total Revenues 26,921
Expenditures
Current:
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
Actual
60,410 $
60,410
1,107,477 1,107,477
652,740 652,740
1,760,217 1,760,217
(1,733,296) (1,699,807)
1,300,000 1,300,000
1,300,000 1,300,000
(433,296) (399,807)
Variance with
Final Budget
2023
42,364 $ (18,046) $ 41,366
42,364
2,344,366
701,740
3,046,106
(18,046)
(1,236,889)
(49,000)
41,366
1,308,298
564,131
(1,285,889) 1,872,429
(3,003,742) (1,303,935)
1,300,000
1,300,000
(1,703,742) (1,303,935)
(1,831,063)
1,593,714
1,593,714
(237,349)
1,449,011 1,449,011 1,449,011 1,686,360
$ 1,015,715 $ 1,049,204 $ (254,731) $ (1,303,935) $ 1,449,011
141 City of Pearland, Texas 2024 ACFR
142 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
INTERNAL SERVICE FUNDS
September 30, 2024
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.
Facilities Fund — To account for the funding for building -related repair and maintenance, equipment maintenance, capital
replacement, or asset recapitalization, and janitorial services.
Information Technology Fund — To account for technology services in order to better anticipate the current and future
technology needs of the City.
Capital Fund — To account for certain capital -related lease or financing arrangements.
143 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS
September 30, 2024
Risk
Management Employee Health Claims Motor Pool
Fund Benefits Fund Fund Fund
Assets
Current assets:
Cash and cash equivalents $ 2,015,300 $ 1,752 $ 3,631,853 $ 9,582,878
Receivables, net 30,810 3,244 13,921 1,128
Prepaids -
Inventories - 655,284
Restricted cash and cash equivalents 5,000 116,149
Total current assets 2,051,110 4,996 3,761,923 10,239,290
Noncurrent assets:
Capital assets:
Machinery and equipment - 15,192,852
Right -to -use lease equipment - - - 91,137
Right -to -use software -
Less accumulated
depreciation/amortization - - (6,602,833)
Total noncurrent assets - - - 8,681,156
Total Assets 2,051,110 4,996 3,761,923 18,920,446
Deferred Outflows of Resources
Pension related 10,685 - 97,058
OPEB related 625 - 5,678
Total Deferred Outflows of Resources 11,310 - 102,736
Liabilities
Current liabilities:
Accounts payable - - - 455,455
Accrued liabilities (1,117) (36,165) 398,353 81,806
Accrued interest -
Customer deposits 2,590
Current portion of noncurrent liabilities:
Leases payable - 31,208
SBITA payable -
Total current liabilities: (1,117) (36,165) 400,943 568,469
Noncurrent liabilities:
Compensated absences - 36,046
Leases payable - 32,360
SBITA payable - - - Net pension liability 21,712 - 197,216
Total OPEB liability 4,157 - 37,761
Total noncurrent liabilities: 25,869 - - 303,383
Total Liabilities 24,752 (36,165) 400,943 871,852
Deferred Inflows of Resources
Pension related 577 - - 5,240
OPEB related 1,666 - 15,137
Total Deferred Inflows of Resources 2,243 - 20,377
Net Position
Net investment in capital assets - 8,617,588
Unrestricted 2,035,425 41,161 3,360,980 9,513,365
Total Net Position $ 2,035,425 $ 41,161 $ 3,360,980 $ 18,130,953
Page 1 of 2
144 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS
September 30, 2024
Information
Technology Total Internal
Facilities Fund Fund Capital Fund Service Funds
Assets
Current assets:
Cash and cash equivalents $ 1,179,810 $ 778,207 $ 5,390,878 $ 22,580,678
Receivables, net 12,736 - 61,839
Prepaids 1,500 6,914 8,414
Inventories - 655,284
Restricted cash and cash equivalents 121,149
Total current assets 1,194,046 785,121 5,390,878 23,427,364
Noncurrent assets:
Capital assets:
Machinery and equipment 15,192,852
Right -to -use lease equipment - - - 91,137
Right -to -use software 9,001,741 9,001,741
Less accumulated
depreciation/amortization (4,587,313) - (11,190,146)
Total noncurrent assets - 4,414,428 - 13,095,584
Total Assets 1,194,046 5,199,549 5,390,878 36,522,948
Deferred Outflows of Resources
Pension related
OPEB related
Total Deferred Outflows of Resources
107,743
6,303
114,046
Liabilities
Current liabilities:
Accounts payable 58,751 131,006 - 645,212
Accrued liabilities 84,115 371,305 898,297
Accrued interest - 248,384 248,384
Customer deposits 2,590
Current portion of noncurrent liabilities:
Leases payable 31,208
SBITA payable 1,906,546 1,906,546
Total current liabilities: 142,866 2,657,241 - 3,732,237
Noncurrent liabilities:
Compensated absences 87,627 283,706 407,379
Leases payable - 32,360
SBITA payable - 2,587,990 - 2,587,990
Net pension liability 218,928
Total OPEB liability 41,918
Total noncurrent liabilities: 87,627 2,871,696 - 3,288,575
Total Liabilities 230,493 5,528,937 - 7,020,812
Deferred Inflows of Resources
Pension related - - - 5,817
OPEB related 16,803
Total Deferred Inflows of Resources - 22,620
Net Position
Net investment in capital assets - (80,108) - 8,537,480
Unrestricted 963,553 (249,280) 5,390,878 21,056,082
Total Net Position $ 963,553 $ (329,388) $ 5,390,878 $ 29,593,562
Page 2 of 2
145 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION - INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2024
Risk
Management Employee Health Claims Motor Pool
Fund Benefits Fund Fund Fund
Page 1 of 2
Operating Revenues
Charges for services:
Risk management $ 552,826 $ - $ 10,082,955 $
Equipment management - - 5,612,710
Miscellaneous 146,100 - 603,903 -
Total Operating Revenues 698,926 10,686,858 5,612,710
Operating Expenses
Personnel services 55,663 - 533,798
Supplies and materials 102 - 20,090
Buildings and grounds - -
Repairs and Maintenance 193 - 1,560,882
Contractual Services 3,556,892 - 10,745,502 43,544
Miscellaneous - 19,145 5,586,267
Depreciation and amortization - - 2,314,028
Total Operating Expenses 3,612,850 - 10,764,647 10,058,609
Operating Income (Loss) (2,913,924) (77,789) (4,445,899)
Nonoperating Revenues (Expenses)
Investment earnings
Interest expense
Total Nonoperating Revenues (Expenses)
64,865 2,455 141,443 701,502
- (2,681)
64,865 2,455 141,443 698,821
Income (Loss) Before Capital
Contributions and Transfers (2,849,059) 2,455 63,654 (3,747,078)
Transfers in 3,663,479 - -
Transfers out - (36,144)
Change in Net Position
814,420 2,455 63,654 (3,783,222)
Net Position - Beginning 1,221,005 38,706 3,297,326 21,914,175
Net Position (Deficit) - Ending
$ 2,035,425 $ 41,161 $ 3,360,980 $ 18,130,953
146 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION - INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2024
Information
Technology
Facilities Fund Fund
Capital Fund
Page 2 of 2
Total Internal
Service Funds
Operating Revenues
Charges for services:
Risk management $ - $ - $ - $ 10,635,781
Equipment management - 9,441,705 5,390,878 20,445,293
Miscellaneous - 10,000 - 760,003
Total Operating Revenues - 9,451,705 5,390,878 31,841,077
Operating Expenses
Personnel services 825,765 2,424,841 - 3,840,067
Supplies and materials 40,052 36,235 - 96,479
Buildings and grounds 1,067,486 - - 1,067,486
Repairs and Maintenance 400,001 2,737,399 - 4,698,475
Contractual Services 761,754 595,116 - 15,702,808
Miscellaneous 72,554 644,572 - 6,322,538
Depreciation and amortization - 3,263,323 - 5,577,351
Total Operating Expenses 3,167,612 9,701,486 - 37,305,204
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Investment earnings
Interest expense
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Capital
Contributions and Transfers
Transfers in
Transfers out
Change in Net Position
Net Position - Beginning
Net Position (Deficit) - Ending
(3,167,612) (249,781)
51,594
5,390,878 (5,464,127)
20,153 - 982,012
(284,024) - (286,705)
51,594 (263,871) - 695,307
(3,116,018) (513,652) 5,390,878 (4,768,820)
3,312,559 168,515 - 7,144,553
- (78,250) - (114,394)
196,541 (423,387) 5,390,878 2,261,339
767,012 93,999 - 27,332,223
$
963,553 $ (329,388) $ 5,390,878 $ 29,593,562
147 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2024
Risk Management Employee Health Claims Information Total Internal
Fund Benefits Fund Fund Motor Pool Fund Facilities Fund Technology Fund Capital Fund Service Funds
Cash Flows from Operating Activities
Receipts from interfund charges for services $ 552,826 $ - $ 10,082,955 $ 5,612,710 $ - $ 9,441,705 $
Other receipts 161,179 (3,244) 803,647 (1,128) (12,736) 11,920
Payments to employees for salaries and benefits (57,276) (556,912) (844,809) (2,515,855)
Payments to suppliers and service providers (3,568,837) (158,569) (10,737,281) (6,893,472) (2,427,604) (3,938,528)
Net Cash Provided (Used) by Operating Activities (2,912,108) (161,813) 149,321 (1,838,802) (3,285,149) 2,999,242
Cash Flows from Noncapital Financing Activities
Transfers from other funds
Transfers to other funds
5,390,878 $ 31,081,074
959,638
(3,974,852)
(27,724,291)
5,390,878 341,569
3,663,479
(36,144)
3,312,559
168,515 7,144,553
(78,250) (114,394)
Net Cash Provided (Used) by Noncapital Financing Activities 3,663,479 (36,144) 3,312,559 90,265 7,030,159
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets (4,175,774) (4,175,774)
Principal payments on leases (152,218) (152,218)
Principal payments on SBITAs (2,577,410) (2,577,410)
Interest paid on capital related debt - (2,681) (186,238) (188,919)
Net cash Provided (Used) by Capital and
Related Financing Activities (4,330,673) (2,763,648) (7,094,321)
Cash Flows from Investing Activities
Interest on investments 64,865 2,455 141,443 701,502 51,594 20,153 982,012
Net Cash Provided (Used) by Investing Activities 64,865 2,455 141,443 701,502 51,594 20,153 982,012
Net lncrease (Decrease) in Cash and Cash Equivalents 816,236 (159,358) 290,764 (5,504,117) 79,004 346,012 5,390,878 1,259,419
Beginning Cash and Cash Equivalents 1,204,064 161,110 3,457,238 15,086,995 1,100,806 432,195 21,442,408
Ending Cash and Cash Equivalents $ 2,020,300 $ 1,752 $ 3,748,002 $ 9,582,878 $ 1,179,810 $ 778,207 $ 5,390,878 $ 22,701,827
Reconciliation to the Statement of Net Position -
Proprietary Funds
Unrestricted cash and cash equivalents $ 2,015,300 $ 1,752 $ 3,631,853 $ 9,582,878 $ 1,179,810 $ 778,207 $ 5,390,878 $ 22,580,678
Restricted cash and cash equivalents 5,000 116,149 121,149
Ending Cash and Cash Equivalents $ 2,020,300 $ 1,752 $ 3,748,002 $ 9,582,878 $ 1,179,810 $ 778,207 $ 5,390,878 $ 22,701,827
Page 1 of 2
148 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS
For the Year Ended September 30, 2024
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss)
Adjustment to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation and amortization expense
(Increase) decrease in assets
Accounts receivable, net
Prepaids
Inventories
Increase (decrease) in liabilities:
Accounts payable
Accrued liabilities
Customer deposits
Compensated absences
Net pension liability and related amounts
Total OPEB liability and related amounts
Net Cash Provided (Used) by Operating Activities
Page 2 of 2
Risk Management Employee Health Claims Information Total Internal
Fund Benefits Fund Fund Motor Pool Fund Facilities Fund Technology Fund Capital Fund Service Funds
$ (2,913,924) $
$ (77,789) $ (4,445,899) $ (3,167,612) $ (249,781) $ 5,390,878 $ (5,464,127)
2,314,028 - 3,263,323 - 5,577,351
15,079 (3,244) 199,744 (1,128) (12,736) 1,920 - 199,635
(1,500) (6,914) - (8,414)
(25,824) - (25,824)
(227) (14,529) 349,216 (56,647) (131,818) 145,995
(11,423) (144,040) 27,514 (6,081) (27,610) 213,526 51,886
(148) (148)
(1,249) (19,044) (91,014) - (111,307)
(1,048) - - (14,483) - (15,531)
(565) (7,382) (7,947)
(2,912,108) $ (161,813) $ 149,321 $ (1,838,802) $ (3,285,149) $ 2,999,242 $ 5,390,878 $ 341,569
Issuance of debt - leases $ $ $ $ (215,786) $ $ - $
Issuance of debt - SBITAs (702,299)
(215,786)
(702,299)
149 City of Pearland, Texas 2024 ACFR
150 City of Pearland, Texas 2024 ACFR
STATISTICAL SECTION
151 City of Pearland, Texas 2024 ACFR
152 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
STATISTICAL SECTION (UNAUDITED)
September 30, 2024
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 154
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 164
These schedules contain information to help the reader assess the City's most significant local revenue
sources, sales and property tax.
Debt Capacity 176
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 183
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 186
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.
153 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
2015 2016 2017 2018 2019
Governmental Activities
Net investment in capital assets $ 423,706 $ 439,923 $ 449,141 $ 454,670 $ 488,077
Restricted 53,883 60,640 60,310 67,263 56,491
Unrestricted 3,800 3,185 (5,045) (2,500) (734)
Total Governmental Activities
Net Position $ 481,389 $ 503,748 $ 504,406 $ 519,433 $ 543,834
Business -Type Activities
Net investment in capital assets $ 186,819 $ 187,937 $ 205,827 $ 210,674 $ 214,672
Restricted 13,539 15,852 13,972 14,525 15,270
Unrestricted 12,815 13,351 6,972 20,663 29,806
Total Business -Type Activities
Net Position $ 213,173 $ 217,140 $ 226,771 $ 245,862 $ 259,748
Primary Government
Investment in capital assets $ 610,525 $ 627,860 $ 654,968 $ 665,344 $ 702,749
Restricted 67,422 76,492 74,282 81,788 71,761
Unrestricted 16,615 16,536 1,927 18,163 29,072
Total Primary Government
Net Position $ 694,562 $ 720,888 $ 731,177 $ 765,295 $ 803,582
Page 1 of 2
154 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
2020 2021 2022 2023 2024
Governmental Activities
Net investment in capital assets $ 490,304 $ 493,671 $ 511,377 $ 520,909 $ 556,467
Restricted 44,928 45,162 48,792 79,137 89,754
Unrestricted 33,179 52,796 59,628 29,248 31,189
Total Governmental Activities
Net Position $ 568,411 $ 591,629 $ 619,797 $ 629,294 $ 677,410
Business -Type Activities
Net investment in capital assets $ 213,081 $ 161,157 $ 216,661 $ 221,205 $ 243,043
Restricted 16,776 30,064 32,025 34,269 30,317
Unrestricted 39,015 81,185 20,264 28,548 29,985
Total Business -Type Activities
Net Position $ 268,872 $ 272,406 $ 268,950 $ 284,022 $ 303,345
Primary Government
Investment in capital assets $ 703,386 $ 654,828 $ 728,037 $ 742,113 $ 799,510
Restricted 61,704 75,226 80,817 113,406 120,071
Unrestricted 72,195 133,981 79,892 57,796 61,174
Total Primary Government
Net Position $ 837,285 $ 864,035 $ 888,746 $ 913,315 $ 980,755
Page 2 of 2
155 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
Primary Government
Expenses
Governmental activities:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Intergovernmental
Interest on long-term debt
Total government activities expenses
Business -type activities:
Water and Sewer
Solid Waste
Total Business -type activities
Total Expenses
Program Revenue
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Operating grants and contributions:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Capital grants and contributions:
Public works
Total governmental activities
Business -type activities:
Charges for services:
Water and sewer
Solid waste
Operating grants and contributions:
Water and sewer
Capital grants and contributions:
Water and sewer
Total Business -type activities
Total Program Revenue
Page 1 of 4
2015
$
2016
17,189 $
33,179
45,894
3,641
3,731
26,159
18,016
38,933
46,449
3,711
4,820
31,330
2017
$20,121.00
44,343
49,221
5,107
8,823
31,293
2018
2019
$ 20,360 $ 21,249
43,275 47,948
53,271 46,631
4,509 4,616
7,194 7,683
29,521 33,470
15,569 15,946 14,422 14,441 14,017
145,362 159,205 173,330 172,571 175,614
34,266 37,941 41,475 41,683 39,413
6,417 6,833 7,059 7,441 7,752
40,683 44,774 48,534 49,124 47,165
$ 186,045 $ 203,979 $ 221,864 $ 221,695 $ 222,779
$ 7,624 $ 8,547 $9,518.00 $ 10,414 $ 10,826
4,110 4,276 3,949 3,777 4,413
338 320 1,395 253 1,379
7,771 8,520 8,026 6,566 6,888
2,412 2,218 2,001 2,766 2,328
1,209 13 3,886 3,503 1,951
747 2,595 - -
294 - 11
4,589 11,123 12,459 5,884 8,765
216 575 232 239
1,586 - -
36,440 24,636 10,107 19,241 16,678
67,336 62,248 51,916 52,647 53,467
30,201 43,677 51,544 55,593 55,696
6,637
2,512
6,945
30
6,549
7,842
8,621
1,497
13,177 4,094 2,027 4,613 4,113
52,527 54,746 60,120 68,048 69,927
$ 119,863 $ 116,994 $ 112,036 $ 120,695 $ 123,394
156 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
Primary Government
Expenses
Governmental activities:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Intergovernmental
Interest on long-term debt
Total government activities expenses
Business -type activities:
Water and Sewer
Solid Waste
Total Business -type activities
Total Expenses
Program Revenue
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Operating grants and contributions:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Capital grants and contributions:
Public works
Total governmental activities
Business -type activities:
Charges for services:
Water and sewer
Solid waste
Operating grants and contributions:
Water and sewer
Capital grants and contributions:
Water and sewer
Total Business -type activities
Total Program Revenue
2020
$
2021
25,504 $
51,031
44,862
4,383
8,197
28,683
14,042
176,702
2022
27,596 $ 34,580
53,503 52,440
48,115 33,363
4,465 4,834
6,799 8,041
30,653 39,101
13,604 13,238
184,735 185,597
2023
$ 15,525
69,571
51,591
5,577
10,145
41,692
8,171
13,763
2024
$ 27,355
73,557
56,711
5,234
11,800
19,773
4,097
13,129
216,035 211,656
45,055 44,654 48,592 56,013 65,977
7,930 8,094 7,158 7,556 8,187
52,985 52,748 55,750 63,569 74,164
$ 229,687 $ 237,483 $ 241,347 $ 279,604 $ 285,820
$
12,424
4,772
113
6,100
992
460
6,609
14,164
7,148
52,782
$
15,425
5,048
157
6,090
1,090
445
$
17,816 $ 11,808 $ 15,534
5,746 7,743 9,546
186 289 344
5,732 4,067 4,126
1,614 2,106 1,785
1,375 1,680
1,693 5,740 11,564 697
17,584
729
1,876
14,008 4,110 649
368 -
12 15
50,137 51,210
43,074 34,376
54,710 52,649 55,352 68,700 75,429
7,755
225
8,064
1,456 1,007
64,146 61,720 62,242 76,173 83,670
$ 116,928 $ 111,857 $ 113,452 $ 119,247 $ 118,046
6,855
35
7,473
8,241
Page 2 of 4
157 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total Primary Government Net Expense
General Revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property taxes
Sales and use taxes
Franchise taxes
Investment earnings
Miscellaneous
Gain on sale of assets
Transfers
Total Governmental Activities
Business -Type Activities:
Sales and use taxes
Investment earnings
Miscellaneous
Transfers
Total Business -Type Activities
Total Primary Government
Change in Net Position:
Governmental activities
Business -type activities
Total Primary Government
2015
2016
2017
2018
2019
$ (78,026) $ (96,957) $ (121,414) $ (119,924) $ (122,147)
11,844 9,972 11,586 18,924 22,762
$ (66,182) $ (86,985) $ (109,828) $ (101,000) $ (99,385)
$ 62,974
29,970
6,971
491
4,149
2,828
107,383
$
67,644 $ 76,686
31,293 31,976
7,228 7,263
729 622
5,957 3,108
6,464 2,417
119,315 122,072
325 294 396
219 166 66
(2,828) (6,464) (2,417)
(2,284) (6,004) (1,955)
$ 83,803
35,437
7,358
1,651
4,691
3,103
$ 89,930
34,872
7,480
3,293
562
11,364
136,043 147,501
1,361 2,947
7 2,361
(3,103) (11,364)
(1,735) (6,056)
$ 105,099 $ 113,311 $ 120,117 $ 134,308 $ 141,445
$ 29,357 $ 22,358 $ 658 $ 16,117 $ 25,354
9,560 3,968 9,631 17,189 16,706
$ 38,917 $ 26,326 $ 10,289 $ 33,306 $ 42,060
Page 3 of 4
158 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in (000's)
(Accrual Basis of Accounting)
2020 2021 2022 2023 2024
Page 4 of 4
Net (Expense)/Revenue
Governmental activities $ (123,920) $ (134,598) $ (134,387) $ (172,961) $ (177,281)
Business -type activities 11,161 8,972 6,492 12,604 9,506
Total Primary Government Net Expense $ (112,759) $ (125,626) $ (127,895) $ (160,357) $ (167,775)
General Revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property taxes $ 97,106 $ 100,075 $ 101,524 $ 105,407 $ 124,388
Sales and use taxes 34,928 40,248 44,699 47,418 48,235
Franchise taxes 7,270 6,940 6,870 7,383 7,217
Investment earnings 1,626 209 472 8,577 12,868
Miscellaneous 4,865 4,793 5,206 16,393 2,371
Gain on sale of assets - - - 60 26
Transfers 5,460 5,548 6,079 7,142 4,760
Total Governmental Activities 151,255 157,813 164,850 192,380 199,865
Business -Type Activities:
Sales and use taxes - - - 4 4
Investment earnings 1,277 94 1,161 6,788 7,328
Miscellaneous 13 16 45 348 124
Transfers (5,460) (5,548) (6,079) (7,142) (4,760)
Total Business -Type Activities (4,170) (5,438) (4,873) (2) 2,696
Total Primary Government $ 147,085 $ 152,375 $ 159,977 $ 192,378 $ 202,561
Change in Net Position:
Governmental activities $ 27,335 $ 23,215 $ 30,463 $ 19,419 $ 22,584
Business -type activities 6,991 3,534 1,619 12,602 12,202
Total Primary Government $ 34,326 $ 26,749 $ 32,082 $ 32,021 $ 34,786
159 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
2015 2016 2017 2018 2019
General fund
Non -spendable $ 293 $ 151 $ 101 $ 136 $ 15
Assigned 1,406 3,994 3,000 1,538 1,521
Unassigned 19,655 16,774 11,262 12,314 15,666
Total General Fund $ 21,354 $ 20,919 $ 14,363 $ 13,988 $ 17,202
All Other Governmental Funds
Non spendable $ 173 $ $ 4 $ - $
Restricted 57,768 94,411 107,916 101,810 100,773
Committed - - -
Assigned - - -
Unassigned - (28) (52) (28)
Total All Other Governmental Funds $ 57,941 $ 94,411 $ 107,892 $ 101,758 $ 100,745
Page 1 of 2
160 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
2020 2021 2022 2023 2024
General fund
Non -spendable $ 28 $ 3 $ - $ 7 $ 67
Assigned 648 216 - - -
Unassigned 28,400 32,305 34,658 31,316 34,957
Total General Fund $ 29,076 $ 32,524 $ 34,658 $ 31,323 $ 35,025
All Other Governmental Funds
Non spendable $ $ - $ - $ 11 $ 44
Restricted 131,286 135,755 152,809 107,122 193,310
Committed - - - 9,279 6,383
Assigned - - - 974 1,716
Unassigned (27) (4,796) (3,389) (2,553) (6,293)
Total All Other Governmental Funds $ 131,259 $ 130,959 $ 149,420 $ 114,833 $ 195,159
Page 2 of 2
161 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
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
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 of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Bonds issued
Payment to Escrow Agent
Issuance of debt - financing arrangement
Other
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Debt Service as a Percentage of
Noncapital Expenditures
2015
$
2016
62,922 $
29,970
6,971
4,544
3,108
14,661
433
3,197
7,076
132,882
2017
67,569 $
31,293
7,228
5,677
2,931
15,313
728
15,959
5,065
2018 2019
76,562 $
31,976
7,263
5,435
2,654
16,015
619
16,010
5,736
83,484 $ 90,252
35,437 34,872
7,358 7,480
4,146 4,198
2,468 2,712
16,769 17,726
1,600 3,186
8,579 10,329
7,200 3,947
151,763 162,270 167,041 174,702
10,470 11,609 11,223 11,300 11,173
32,229 36,818 40,858 41,273 42,716
10,298 13,292 17,365 16,968 12,596
3,408 4,294 4,837 4,313 4,219
5,823 6,458 6,419 5,959 6,065
25,625 31,051 29,001 29,195 38,288
23,790 19,736 24,341 23,547 38,007
16,595 15,841 15,221 15,814 15,646
24,471 31,982 43,860 43,474 39,541
4,792 4,847 6,937 7,168 7,325
157,501 175,928 200,062 199,011 215,576
(24,619) (24,165) (37,792) (31,970) (40,874)
17,043 26,062 28,466
(15,233) (20,844) (26,860)
81,258 142,701 115,718
(54,303) (89,638) (72,608)
574 1,918 -
3,157 - -
32,496 60,199 44,716
24,456
(22,266)
24,223
34,200
(22,866)
44,292
(12,551)
26,413 43,075
$ 7,877 $ 36,034 $ 6,924 $ (5,557) $ 2,201
29.9% 24.8% 25.3% 24.9% 30.3%
Page 1 of 2
162 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
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
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 of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Bonds issued
Payment to Escrow Agent
Issuance of debt - financing arrangement
Other
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Debt Service as a Percentage of
Noncapital Expenditures
2020
$
2021
97,106 $
34,928
7,270
4,424
1,723
18,714
1,583
19,480
2,553
187,781
100,528
40,248
6,940
4,258
1,868
19,858
208
19,880
3,207
2022
$
101,524
44,699
6,870
4,613
2,112
23,301
1,006
19,982
5,201
2023 2024
$
105,169 $ 123,885
47,418 48,235
7,383 7,217
3,622 3,959
1,870 2,215
20,521 25,161
7,804 11,886
9,836 1,361
15,691 2,304
196,995 209,308 219,314 226,222
12,513 19,460
47,218 52,191
11,693 12,483
4,452 4,249
5,483 6,102
25,843 29,175
27,796 29,577
15,939 17,357
38,359 77,114
7,769 7,116
197,065 254,824
15,957
59,493
13,957
4,764
6,704
27,346
30,180
17,283
57,619
7,289
9,359
64,526
12,962
4,938
8,749
41,166
28,404
17,660
10,285
57,848
8,171
13,514
69,872
15,306
4,974
9,502
19,733
46,001
17,267
1,768
34,872
3,996
240,592 264,068 236,807
(9,284) (57,829) (31,284) (44,754) (10,585)
31,561
(26,101)
44,798
33,261
(27,713)
46,562
7,174
35,586
(29,507)
44,674
1,155
47,258 53,621
(46,017) (55,891)
18,155 91,117
(4,376)
106 1,486
2 26
50,258 59,284 51,908 15,128 90,359
$ 40,974 $ 1,455 $ 20,624 $ (29,626) $ 79,774
27.6%
26.4% 25.9%
22.3% 31.2%
Page 2 of 2
163 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SPENDING AND GROWTH ANAYLSIS - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
Amounts in (000's)
Expenditures
General government
Public Safety
Public Works
Community Services
Parks & recreation
Economic Development
Debt service:
Principal
Interest and other charges
Bond issuance costs
Capital outlay
Intergovernmental
Total
Distribution of Spending
General government
Public Safety
Public Works
Community Services
Parks & recreation
Economic Development
Debt service:
Principal
Interest and other charges
Bond issuance costs
Capital outlay
Intergovernmental
Total
Adjusted for CPI
POPULATION
PER CAPITA
2015
$ 10,470
32,229
10,298
3,408
5,823
25,625
23,790
16,595
24,471
4,792
2016
$
2017
11,609 $
36,818
13,292
4,294
6,458
31,051
19,736
15,841
31,982
4,847
11,223
40,858
17,365
4,837
6,419
29,001
2018
2019
$ 11,363 $
41,281
16,998
4,313
5,960
29,195
24,341 23,547
15,221 15,814
43,860 44,321
6,937 7,168
11,173
42,716
12,596
4,219
6,065
38,288
38,007
15,646
39,541
7,325
2020
$ 12,513
47,218
11,693
4,452
5,483
25,843
27,796
15,939
38,359
7,769
$ 157,501 $ 175,928 $ 200,062 $ 199,960 $ 215,576 $ 197,065
4.4%
47.3%
4.3%
1.4%
2.5%
10.8%
10.0%
7.0%
0.0%
10.3%
2.0%
4.9%
41.4%
5.6%
1.8%
2.7%
13.1%
8.3%
6.7%
0.0%
13.5%
2.0%
4.7%
33.0%
7.3%
2.0%
2.7%
12.2%
10.3%
6.4%
0.0%
18.5%
2.9%
4.8%
33.1%
7.2%
1.8%
2.5%
12.3%
9.9%
6.7%
0.0%
18.7%
3.0%
4.7%
27.0%
5.3%
1.8%
2.6%
16.2%
16.0%
6.6%
0.0%
16.7%
3.1%
5.3%
36.8%
4.9%
1.9%
2.3%
10.9%
11.7%
6.7%
0.0%
16.2%
3.3%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
112,300 117,100 121,500 125,198 127,500 131,448
$ 1,403 $ 1,502 $ 1,647 $ 1,590 $ 1,691 $ 1,499
Page 1 of 2
164 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
SPENDING AND GROWTH ANAYLSIS - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in (000's)
(Modified Accrual Basis of Accounting)
Amounts in (000's)
Expenditures
General government
Public Safety
Public Works
Community Services
Parks & recreation
Economic Development
Debt service:
Principal
Interest and other charges
Bond issuance costs
Capital outlay
Intergovernmental
Total
Distribution of Spending
General government
Public Safety
Public Works
Community Services
Parks & recreation
Economic Development
Debt service:
Principal
Interest and other charges
Bond issuance costs
Capital outlay
Intergovernmental
Total
Adjusted for CPI
POPULATION
PER CAPITA
Ten Average
Year Compounded
2021 2022 2023 2024 % CHG Growth Rate
$ 19,460
52,191
12,483
4,249
6,102
29,175
29,577
17,357
77,114
7,116
$
15,957 $ 9,359 $ 13,514 29.1% 2.59%
59,493 64,526 69,872 116.8% 8.05%
13,957 12,962 15,306 48.6% 4.04%
4,764 4,938 4,974 46.0% 3.85%
6,704 8,749 9,502 63.2% 5.02%
27,346 41,166 19,733 -23.0% -2.58%
30,180
17,283
57,619
7,289
28,404
17,660
10,285
57,848
8,171
46,001
17,267
1,768
34,872
3,996
$ 254,824 $ 240,592 $ 264,068 $ 236,807
8.2%
14.4%
5.3%
1.8%
2.6%
12.3%
12.5%
7.3%
0.0%
32.6%
3.0%
6.7%
23.7%
5.9%
2.0%
2.8%
11.5%
12.7%
7.3%
0.0%
24.3%
3.1%
4.0%
15.6%
5.5%
2.1%
3.7%
17.4%
12.0%
7.5%
4.3%
24.4%
3.5%
5.7%
29.6%
6.5%
2.1%
4.0%
8.3%
19.4%
7.3%
0.7%
14.7%
1.7%
100.0% 100.0% 100.0% 100.0%
125,828 129,600 124,478 125,983
$ 2,025 $ 1,856 $ 2,121 $ 1,880
93.4% 6.82%
4.1% 0.40%
0.0% 0.00%
42.5% 3.61%
-16.6% -1.80%
50.4% 4.16%
Growth Rate
1.16%
2.97%
Page 2 of 2
165 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal Tax
Year Year Residential
2015 2014
2016 2015
2017 2016
2018 2017
2019 2018
2020 2019
2021 2020
2022 2021
2023 2022
2024 2023
$
6, 000, 588, 340
6,687,172,478
7,800,700,555
8,160, 296, 748
8,388,984,355
8,795,872,742
10,759,083,987
11,111, 640, 283
12,134,105,105
13,967,352,279
Commercial
$
2,035,398,664
2,200,841,575
2,552,439,217
3,201,012,344
3,467,102, 770
3,632,391,578
1,941,047,529
1,901,930,199
5,006,577,583
6,048,655,510
Personal
Property
$
670,832,220
677,182,023
776,125,452
801,094,174
880,377,068
1,018,446,748
865,343,567
797,254,587
847,748,246
987,793,152
Less Tax Exempt
Property
$ (673,524,095)
(677,182,023)
(835,697,201)
(916,937,992)
(882,979,174)
(903,424,894)
(974,936,904)
(1,020,672,002)
(2,996,311,916)
(4,110,179,073)
Page 1 of 2
166 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Tax
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Less Other
Exemptions and
Abatements
$ (452,738,140)
(423,238,764)
(571,315,443)
(681, 810,199)
(904,072,816)
(1, 004, 810,809)
(813,268,531)
(908,022,173)
(1,481, 214,007)
(1,684,131,352)
Total Taxable
Assessed Value
$ 7,580,556,989
8,464,775,289
9,722,252,580
10,563,655,075
10,949,412,203
11,538,475,365
11,777,269,648
11,882,130,894
13,510,905,011
15,209,490,516
Total Direct Tax
Rate
$ 0.712100
0.705300
0.681200
0.685059
0.709158
0.741000
0.720000
0.701000
0.624000
0.655400
Estimated Actual
Taxable Value
$ 7,580,556,989
8,464,775,289
9,722,252,580
10,563,655,075
10,949,412,203
11,538,475,365
11,777,269,648
11,882,130,894
13,510,905,011
15,209,490,516
Assessed Value
as a Percent of
Actual Taxable
Value
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Page 2 of 2
167 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per $100 of assessed value)
City of Pearland Overlapping Rates (a)
Page 1 of 3
Pearland Pasadena Alvin
Independent Independent Independent Alvin
Fiscal M & 0 I & S Total School School School Comm Brazoria
Year Rate Rate Direct District District District College County
2015 $ 0.2221 $ 0.4900 $ 0.7121 $ 1.4160 $ 1.3500 $ 1.4170 $ 0.2040 $ 0.4985
2016 0.2225 0.4828 0.7053 1.4160 1.3500 1.4170 0.2040 0.4860
2017 0.2412 0.4400 0.6812 1.4160 1.3500 1.4500 0.1920 0.4574
2018 0.2551 0.4300 0.6851 1.4156 1.4800 1.4500 0.1808 0.4402
2019 0.2792 0.4300 0.7092 1.4156 1.4160 1.4500 0.1878 0.3679
2020 0.3070 0.4340 0.7410 1.3960 1.3780 1.3980 0.1860 0.3650
2021 0.3050 0.4150 0.7200 1.3190 1.3830 1.3980 0.1830 0.3920
2022 0.3090 0.3920 0.7010 1.3150 1.3160 1.3980 0.1830 0.3865
2023 0.2850 0.3390 0.6240 1.3080 1.3350 1.3780 0.1640 0.3911
2024 0.3325 0.3229 0.6554 1.1373 1.1382 1.1923 0.1513 0.2707
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.
168 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
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. 1 No. 17
2015 $ 0.4950 $ 0.4170 $ 0.0150 $ 0.0270 $ 0.1700 $ 0.0060 $ 0.8500 $ 0.5200
2016 0.4860 0.4190 0.0130 0.0270 0.1700 0.0050 0.8480 0.4600
2017 0.4740 0.4166 0.0133 0.0283 0.1718 0.0052 0.8480 0.4100
2018 0.4580 0.4180 0.0126 0.0283 0.1711 0.0052 0.8480 0.3800
2019 0.4450 0.4186 0.0116 0.0288 0.1711 0.0052 0.8480 0.3800
2020 0.4450 0.4070 0.0110 0.0280 0.1660 0.0050 0.8480 0.3600
2021 0.4359 0.3910 0.0100 0.0310 0.1670 0.0050 0.8480 0.3400
2022 0.4568 0.3770 0.0090 0.0340 0.1620 0.0050 0.8480 0.3300
2023 0.4568 0.3440 0.0080 0.0310 0.1480 0.0050 0.8480 0.3000
2024 0.4120 0.3501 0.0057 0.0311 0.1434 0.0048 0.4300 0.2400
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.
Page 2 of 3
169 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
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
2015 $ 0.4700 $ 0.5100 $ 0.5800 $ 0.6900 $ 0.8200 $ 0.8500 $ 1.0200
2016 0.3900 0.4500 0.5400 0.6900 0.8200 0.8200 1.0200
2017 0.3500 0.4000 0.4800 0.6900 0.8200 0.8000 1.0200
2018 0.3100 0.3800 0.4700 0.6900 0.8200 0.8000 1.0000
2019 0.3100 0.3600 0.4600 0.6900 0.8200 0.7800 1.0000
2020 0.2900 0.3500 0.4600 0.6900 0.8200 0.7500 1.0000
2021 0.2700 0.3100 0.4600 0.5300 0.8200 0.7300 1.0000
2022 0.2500 0.2900 0.4400 0.1000 0.8200 0.6900 1.0000
2023 0.2250 0.2700 0.4400 0.0900 0.7600 0.6200 1.0000
2024 0.2000 0.2200 0.4000 0.0850 0.5800 0.5500 0.9600
Source: Brazoria County, Harris County, and Fort Bend County Appraisal Districts.
lai 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.
Page 3 of 3
170 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Taxes Levied
for the
Fiscal Year
$ 53,463,919
58,829,331
64,977,413
70,633,922
75,680,458
83,055,340
86,120, 247
87,070,808
87,756,604
105,875,951
Collected within the
Fiscal Year of the Levy
Amount
$ 53,175,174
58,545,664
64,579,894
70,216,601
75,276,247
82, 617,167
85,751,572
86,638,471
87,297,753
105,073,320
Source: Brazoria County Tax Office
Percentage
of Levy
Note: Taxes levied based on adjusted tax roll.
Collections
in Subsequent
Years
99.46% $ 240,430
99.52% 235,012
99.39% 335,328
99.41% 347,663
99.47% 323,248
99.47% 341,578
99.57% 255,573
99.50% 319,308
99.48% 304,877
99.24%
Total Collections to Date
Amount
$ 53,415,604
58,780,676
64,915,222
70,564,264
75,599,495
82,958,745
86,007,145
86,957,779
87,602,630
105,073,320
Percentage
of Levy
99.9%
99.9%
99.9%
99.9%
99.9%
99.9%
99.9%
99.9%
99.8%
99.2%
171 City of Pearland, Texas 2024 ACFR
172 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Taxpayer
Pearland Town Center, LP
Shadow Creek Retail Associates, LLC
MAR Shadow Creek, LP
HCA Healthcare Corp
WRPV XIV SC PEARLAND LLC
CenterPoint Energy, Inc.
MHI Compressor Manufacturing, LLC
KV Shadow Creek Apartments, LLC
Azure Townes LP
Pearland Dunhill 1, LLC
Weatherford U.S., Inc.
Amerit SPF Shadow Creek, LP
Shadow Creek Parkway
Discovery Shadow Creek
Forum US, Inc.
Shadow Kirby LTD Partnership
Pearland Lifestyle Center LP
Pearland Multi Family District
Total
Source: Brazoria County Appraisal District
2024
Taxable
Assessed
Value
$
124,441,110
103,185,086
84,996,000
64,090,090
61,150,000
59,060,314
52,441,580
51,880,400
51,264,000
50, 538,117
$ 703,046,697
Percentage
of Total City
Taxable
Assessed
Rank Value
2015
Taxable
Assessed
Value
Rank
1 0.82% $ 69,086,460 2
2 0.68%
3 0.56%
4 0.42%
5 0.40%
6 0.39% 32,581,900 4
7 0.34%
8 0.34%
9 0.34%
10 0.33%
72,301,820
48,187, 760
27,100,030
26,780,230
26,062,030
25,000,000
24,753,841
24,205,950
4.62% $ 376,060,021
1
3
5
6
7
8
9
10
Percentage
of Total City
Taxable
Assessed
Value
0.91%
0.43%
0.95%
0.64%
0.36%
0.35%
0.34%
0.33%
0.33%
0.32%
4.96%
173 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
TAXABLE SALES BY CATEGORY
Last Ten Calendar Years
(in thousands of dollars)
Retail Trade
Accommodations & Food Services
Real Estate/Rental/Leasing
Manufacturing
Wholesale Trade
Other Services (Except Public Admin)
Information
Construction
Arts, Entertainment & Recreation
Mining, Quarrying, Oil and Gas
Admin/Support/Waste Mgmt/
Remediation
Professional/Scientific/Technical
Health Care/Social Assistance
Finance, Insurance
Agriculture, Forestry, Fishing
Transportation/Warehousing
Educational Services
Utilities
Total
Page 1 of 2
Calendar Year
2015
$
2016
961,565 $
272,540
48,024
41,175
41,491
40,373
33,614
32,168
15,555
7,285
12,808
11,307
5,007
2,226
1,609
285
393
999,033
298,860
32,786
40,192
48,114
40,181
33,449
24,655
16,020
8,141
12,725
12,177
2,307
2,182
2,112
372
406
2017
$ 1,042,624
316,070
44,540
39,860
49,702
41,711
35,824
21,363
16,344
11,682
14,489
6,689
3,751
2,108
3,471
560
439
2018
$
1,056,690
341,462
44,467
39,133
56,347
43,812
39,187
27,310
17,127
11,125
16,918
8,371
3,355
1,906
2,496
678
512
2019
$
1,030,791
375,329
32,215
58,202
42,928
34,340
33,948
3,794
30,721
43,987
763
5,103
$ 1,527,425 $ 1,573,712 $ 1,651,227 $ 1,710,896 $ 1,692,121
City direct sales tax rate a 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.
1.00%
174 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
TAXABLE SALES BY CATEGORY
Last Ten Calendar Years
(in thousands of dollars)
Retail Trade
Accommodations & Food Services
Real Estate/Rental/Leasing
Manufacturing
Wholesale Trade
Other Services (Except Public Admin)
Information
Construction
Arts, Entertainment & Recreation
Mining, Quarrying, Oil and Gas
Admin/Support/Waste Mgmt/
Remediation
Professional/Scientific/Technical
Health Care/Social Assistance
Finance, Insurance
Agriculture, Forestry, Fishing
Transportation/Warehousing
Educational Services
Utilities
Total
City direct sales tax rate a
Page 2 of 2
Calendar Year
2020 2021
$ 1,056,636
343,407
39,671
20,889
47,894
41,106
22,832
31,595
15,182
2,287
17,681
8,852
4,386
1,853
2,049
538
390
5
$ 1,657,253
1.00%
$
1,252,310
435,702
30,393
21,765
61,786
50,165
26,644
36,189
19,263
2,528
18,258
11,512
3,175
3,094
3,654
234
1,017
284
$ 1,977,973
1.00%
2022
$ 1,295,200
473,006
71,531
28,015
63,330
61,008
29,577
41,704
21,370
5,519
18,933
10,593
4,072
2,036
2,737
326
1,085
511
$ 2,130,553
1.00%
2023
$
1,290,850
503,718
85,434
25,555
25,493
71,273
28,941
40,043
23,515
8,098
18,525
12,896
4,472
1,663
2,462
344
1,295
607
$ 2,145,184
1.00%
2024
$
1,272,772
510,049
112,450
25,507
21,042
68,752
27,054
38,395
23,899
2,932
16,572
12,808
6,489
1,705
2,503
470
1,277
999
$ 2,145,675
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.
1.00%
175 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Governmental Activities
Page 1 of 3
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
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
2024 267,925 3,600 120,000 47,285 10,335 27,559 1,218 149 4,495
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
176 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
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
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 -
2024 344,190 176,565 1,245 17,668 -
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Page 2 of 3
177 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
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
2015 $ 531,014 13.1% $ 4,729
2016 613,913 13.2% 5,243
2017 660,759 15.3% 5,438
2018 675,714 13.2% 5,397
2019 689,413 13.0% 5,407
2020 804,767 13.4% 6,122
2021 882,184 14.7% 6,807
2022 920,273 16.0% 7,101
2023 874,198 14.9% 7,023
2024 1,024,258 16.3% 8,130
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Page 3 of 3
178 City of Pearland, Texas 2024 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 Tax
Year Year
2015 2014
2016 2015
2017 2016
2018 2017
2019 2018
2020 2019
2021 2020
2022 2021
2023 2022
2024 2023
General Bonded
Debt a
312,028
312,935
320,645
319,925
321,140
335,085
347,060
367,275
340,460
391,525
Less Debt Net
Service Bonded
Funds Debt
$ (4,536) $ 307,492
(5,034) 307,901
(8,276) 312,369
(5,911) 314,014
(6,797) 314,343
(5,427) 329,658
(5,427) 341,633
(3,436) 363,839
(3,370) 337,090
(5,687) 385,838
Ratio of Net
Bonded Debt to
Assessed Value
4.1%
3.6%
3.2%
3.0%
2.9%
2.9%
2.9%
3.1%
2.5%
2.5%
Percentage of
Personal Per
Income" Capita b
7.6% $ 2,738
6.6% 2,629
7.3% 2,571
6.1% 2,508
5.9% 2,465
5.5% 2,508
5.7% 2,636
6.3% 2,807
5.8% 2,708
6.1% 3,063
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.
179 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2024 and 2023
Taxing Jurisdiction
Alvin Community College District
Alvin Independent School District
Brazoria County
Brazoria County MUD No. 6
Brazoria County MUD No. 17
Brazoria County MUD No. 18
Brazoria County MUD No. 19
Brazoria County MUD No. 21
Brazoria County MUD No. 22
Brazoria County MUD No. 23
Brazoria County MUD No. 28
Brazoria County MUD No. 34
Brazoria County MUD No. 35
Brazoria-Fort Bend Counties MUD No. 1
Clear Creek Independent School District
Fort Bend County
Fort Bend County Drainage District
Friendswood Independent School District
Harris County (a)
Harris County Dept. of Education
Harris County Flood Control District
Harris County Hospital District
Harris-Brazoria Counties MUD No. 509
Houston Community College District
Houston Independent School District
Lower Kirby Pearland Management District
Pasadena Independent School District
Pearland Independent School District
Port of Houston Authority
San Jacinto Community College District
Total Estimated Overlapping
The City
Total Direct and Estimated Overlapping Debt
Population
Per Capita Debt - Direct and Overlapping Debt
Debt as of
September 30,
2024
19,520,000
918,045,000
202,278,313
4,740,000
13,065,000
13,210,000
15,305,000
20,885,000
58,860,000
11,005,000
51,425,000
27,495,000
6,530,000
32,785,000
1,065,675,000
1,139,374,190
22,655,000
187,375,000
2,424,019,039
28,960,000
968,445,000
65,285,000
54,105,000
422,215,000
1,773,440,000
32,060,000
896,800,000
383,840,000
426,134,397
520,862,492
Overlapping
Percent Amount
22.89%
25.81%
21.02%
0.31%
100.00%
100.00%
100.00%
2.15%
0.02%
100.00%
100.00%
100.00%
100.00%
100.00%
0.97%
0.67%
0.67%
0.03%
0.28%
0.28%
0.28%
0.28%
100.00%
0.24%
0.17%
100.00%
2.75%
79.32%
0.28%
1.18%
$ 482,565,352 100.00%
$ 4,468,128
236,947,415
42, 518, 901
14,694
13,065,000
13, 210, 000
15,305,000
449,028
11,772
11,005,000
51,425,000
27,495,000
6,530,000
32,785,000
10,337,048
7,633,807
151,789
56,213
6,787,253
81,088
2,711,646
182,798
54,105,000
1,013,316
3,014,848
32,060,000
24,662,000
304,461,888
1,193,176
6,146,177
909,827,985
482,565,352
$ 1,392,393,337
125,983
$ 11,052
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.
Page 1 of 2
180 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30, 2024 and 2023
Taxing Jurisdiction
Alvin Community College District
Alvin Independent School District
Brazoria County
Brazoria County MUD No. 6
Brazoria County MUD No. 17
Brazoria County MUD No. 18
Brazoria County MUD No. 19
Brazoria County MUD No. 21
Brazoria County MUD No. 22
Brazoria County MUD No. 23
Brazoria County MUD No. 28
Brazoria County MUD No. 34
Brazoria County MUD No. 35
Brazoria-Fort Bend Counties MUD No. 1
Clear Creek Independent School District
Fort Bend County
Fort Bend County Drainage District
Friendswood Independent School District
Harris County (a)
Harris County Dept. of Education
Harris County Flood Control District
Harris County Hospital District
Harris-Brazoria Counties MUD No. 509
Houston Community College District
Houston Independent School District
Lower Kirby Pearland Management District
Pasadena Independent School District
Pearland Independent School District
Port of Houston Authority
San Jacinto Community College District
Total Estimated Overlapping
The City
Total Direct and Estimated Overlapping Debt
Population
Per Capita Debt - Direct and Overlapping Debt
Debt as of
September 30,
2023
$ 21,940,000
936,195,000
207,948,313
6,435,000
14,655,000
14,870,000
17,320,000
22,750,000
60,660,000
11,940,000
53,905,000
29,470,000
6,960,000
37,125,000
993,980,000
954,413,703
23,615,000
189,905,000
1,977,981,319
13,865,000
1,009,015,000
70,970,000
56,005,000
446,665,000
2,077,325,000
33,860,000
760,255,000
358,840,000
445,749,397
537,657,427
Overlapping
Percent Amount
23.60% $ 5,177,840
27.76% 259,887,732
19.70% 40,965,818
0.29% 18,662
100.00% 14,655,000
100.00% 14,870,000
100.00% 17,320,000
1.69% 384,475
1.90% 1,152,540
100.00% 11,940,000
100.00% 53,905,000
100.00% 29,470,000
100.00% 6,960,000
100.00% 37,125,000
0.95% 9,442,810
0.64% 6,108,248
0.64% 151,136
0.04% 75,962
0.27% 5,340,550
0.27% 37,436
0.27% 2,724,341
0.27% 191,619
100.00% 56,005,000
0.24% 1,071,996
0.27% 5,608,778
100.00% 33,860,000
2.62% 19,918,681
78.37% 281,222,908
0.27% 1,203,523
1.14% 6,129,295
922,924,350
$ 444,927,257 100.00% 444,927,257
$ 1,367,851,607
124,478
$ 10,989
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.
Page 2 of 2
181 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
PLEDGE REVENUE COVERAGE
Last Ten Fiscal Years
Amounts in (000's)
Water & Sewer Revenue Bonds
Net
Less: Revenue Debt Service Due in One Year
Fiscal Gross Operating Available for
Year Revenues Expenses Debt Service Principal Interest Total Coverage
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 27,828 9,195 4,297 13,492 2.06
2018 56,960 24,247 32,713 10,630 5,129 15,759 2.08
2019 61,001 22,340 38,661 11,770 6,586 18,356 2.11
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
2024 82,873 36,414 46,459 19,165 6,607 25,772 1.80
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.
182 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Personal Per Capita Education School Unemployment
Fiscal Population Income Personal Median Age Level in Years Enrollment Rate
Year (A) (in $000's) Income (B) of Schooling (B) (C)
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%
2024 125,983 6,279,623 49,845 36.5 14.2 20,862 4.2%
(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
183 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Employer
2024 2015
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
Pearland ISD 2,700 1 3.91% 2,472 1 4.39%
Kelsey Seybold 1,079 2 1.56% 868 2 1.54%
Lonza 1,000 3 1.45%
City of Pearland 803 4 1.16% 645 3 1.15%
Alvin ISD 753 5 1.09% 352 4 0.63%
Memorial Hermann 540 6 0.78%
HCA (Pearland Medical Center) 450 7 0.65% 220 8 0.39%
Dover Energy 304 8 0.44% 205 9 0.36%
Kemlon 240 9 0.35% 345 5 0.61%
Third Coast 225 10 0.33%
Merit medical - 303 6 0.54%
Davis Lynch (Forum Energy) - 300 7 0.53%
TurboCare - 175 10 0.31%
Total 8,094 11.72% 5,885 11.18%
Sources:
Pearland Economic Development Corp.
Note: Does not include retail employers, such as Wal-Mart, Super Target, Lowe's, Home Depot, HEB.
184 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT
EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Governmental Activities:
General Government 52 62 52 54 55 66 64 98 94 102
Public Safety 339 370 370 379 390 408 424 433 442 440
Public Works 67 54 65 73 85 80 76 60 64 62
Community Services 40 42 50 46 46 48 47 49 49 44
Parks and Recreation 88 89 84 89 90 94 97 98 114 101
Business Type Activities:
Water & Sewer 105 106 109 114 108 117 134 148 147 147
Component Unit:
Economic Development 5 5 5 6 6 6 6 7 7 7
Total 696 728 735 761 780 819 848 893 917 902
Source: City Budget
185 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
2015 2016 2017 2018 2019
Page 1 of 6
GENERAL GOVERNMENT
Finance:
Number of purchase orders 2,377 2,159 589 1,811 1,673
Number of invoices paid 22,212 26,675 24,548 21,547 17,641
Average number of employees paid per month 1,523 1,536 1,704 1,641 1,665
Human Resources:
Number of hires 131 194 170 163 183
Number of applications received 9,132 10,420 13,010 15,452 17,382
Legal:
Number of resolutions and ordinances prepared 271 279 276 290 340
Information Technology:
Average monthly service requests 854 871 894 325 400
Number of PC's supported 649 680 706 715 732
PUBLIC SAFETY
Police:
Part 1 Crimes 2,411 2,202 2,193 1,962 2,175
Traffic Crashes 1,761 1,728 1,813 2,150 2,150
Arrests 5,781 5,044 4,865 4,844 4,604
Citizen Calls for Service 31,474 31,744 31,945 31,579 32,548
Traffic Stops 33,472 35,764 37,025 33,101 33,559
Priority 1 Average Response Time 4:16 4:11 3:40 4:03 3:53
Fire:
Total number of arson incidents 1 7 4 2 2
Fires investigated 20 27 19 15 23
Total annual inspections 1,640 1,244 2,607 3,123 1,263
Total code violation cases 4,596 2,560 2,302 2,034 2,387
Total calls for service 17,407 9,904 9,965 10,666 10,720
Patients treated 7,180 6,117 4,610 6,273 7,181
Sources: Various city departments.
186 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
2020 2021 2022 2023 2024
Page 2 of 6
GENERAL GOVERNMENT
Finance:
Number of purchase orders 1,724 2,090 2,126 1,837 2,516
Number of invoices paid 16,482 17,387 16,424 17,635 19,288
Average number of employees paid per month 1,713 1,800 845 866 879
Human Resources:
Number of hires 161 212 242 259 194
Number of applications received 16,610 12,226 12,450 11,542 9,519
Legal:
Number of resolutions and ordinances prepared 307 310 308 342 326
Information Technology:
Average monthly service requests 347 380 335 297 237
Number of PC's supported 782 810 794 765 780
PUBLIC SAFETY
Police:
Part 1 Crimes 1,934 1,876 2,325 2,282 1,925
Traffic Crashes 1,719 1,857 1,850 1,942 1,987
Arrests 2,613 3,018 3,903 3,752 384
Citizen Calls for Service 30,341 31,092 33,842 33,523 32,047
Traffic Stops 21,764 26,806 30,710 28,766 28,697
Priority 1 Average Response Time 3:59 4:00 4:29 4:13 3:53
Fire:
Total number of arson incidents 4 9 8 2 3
Fires investigated 60 47 54 83 91
Total annual inspections 1,155 569 589 623 2,739
Total code violation cases 1,577 1,866 1,321 798 946
Total calls for service 10,587 12,677 13,114 13,548 11,778
Patients treated 7,618 8,891 7,788 10,398 8,116
Sources: Various city departments.
187 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued)
2015 2016 2017 2018 2019
Page 3 of 6
PUBLIC WORKS
Fleet Maintenance:
Fleet maintenance jobs completed 3,887 1,452 1,797 1,382 1,998
Preventative maintenance performed 437 750 742 663 856
Other Public Works:
Fuel issued (gallons) 332,745 265,669 331,005 315,941 323,734
Street sweeping (miles) 648 1,160 1,112 1,815 497
Street signs maintained/replaced 1,477 1,370 1,179 1,471 1,511
Total work orders completed 25,873 31,163 25,688 24,529 20,791
PARKS AND RECREATION
All Parks and recreation:
ROW maintained - acres 550 459 327 345 404
Trees maintained 6,430 7,922 8,355 8,523 8,873
Acres of city property mowed 1,116 632 664 443 523
Total number of park work orders received 147 190 114 147 55
Parkland - acres 138 337 388 392 547
Total number of special events held 19 16 19 17 23
Total number of tournaments held - 26 - 5 12
Number of recreation classes offered (1) 306 384 265 868 908
Average monthly attendance (all locations) (2) 14,371 19,636 16,814 24,035 19,518
Sources: Various city departments.
Information not presented was not available at time of publication.
(l) In FY2020 and FY2021, recreation classes were cancelled due to COVID-19.
(2) In FY2020 and FY2021, attendance was down due to COVID-19.
188 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued)
2020 2021 2022 2023 2024
Page 4 of 6
PUBLIC WORKS
Fleet Maintenance:
Fleet maintenance jobs completed 1,632 1,704 1,699 1,219 1,964
Preventative maintenance performed 645 721 784 340 531
Other Public Works:
Fuel issued (gallons) 351,123 277,230 375,002 397,177 399,600
Street sweeping (miles) 564 453 671 663 217
Street signs maintained/replaced 4,638 662 856 459 657
Total work orders completed 17,696 17,431 16,153 5,171 3,702
PARKS AND RECREATION
All Parks and recreation:
ROW maintained - acres 381 299 353 334 334
Trees maintained 9,223 10,873 13,688 14,030 23,570
Acres of city property mowed 523 561 561 817 817
Total number of park work orders received 19 22 51 65 18
Parkland - acres 547 547 547 547 6
Total number of special events held 13 11 35 44 43
Total number of tournaments held 18 19 9 11 19
Number of recreation classes offered (1) 289 237 1,735 2,705 2,968
Average monthly attendance (all locations) (2) 9,661 9,872 33,371 21,416 55,717
Sources: Various city departments.
Information not presented was not available at time of publication.
(l) In FY2020 and FY2021, recreation classes were cancelled due to COVID-19.
(2) In FY2020 and FY2021, attendance was down due to COVID-19.
189 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued)
2015 2016 2017 2018 2019
Page 5 of 6
COMMUNITY SERVICES
Animal Control:
Animal Services Calls for Service 5,230 5,484 5,153 4,699 4,582
Animal Shelter Live Release % 53% 54% 56% 56% 55%
Inspection Services
Total building inspections 36,497 37,206 34,880 36,774 36,481
Total permits issued 18,186 14,612 13,075 8,894 7,270
Number of plans reviewed 1,584 1,349 1,278 1,971 2,419
Municipal Court:
Number of trials (3) 856 443 656 567 664
Number of charges (3) 19,223 17,611 16,334 15,463 19,020
Warrants cleared (3) 7,476 7,525 8,463 5,801 6,095
WATER & SEWER
Distribution and Collection:
Fire hydrant maintenance and inspections (4) 612 854 186 114 87
Backed up sewer repairs 305 497 545 308 196
Water mains repaired 189 120 102 126 125
Water Production:
Water produced - wells
(in millions of gallons) 1,933 2,190 2,417 3,024 2,333
Surface Water Purchased
(in millions of gallons) 2,276 2,517 2,584 2,545 2,754
Billing & Collections:
Annual meter reads 428,265 445,154 461,502 467,910 469,499
Number of bills 400,662 417,312 471,549 445,446 449,933
Wastewater Treatment:
Wastewater treated
(in millions of gallons) 3,067 3,367 3,455 3,308 3,775
Sources: Various city departments.
Information not presented was not available at time of publication.
(3) In FY2020 and FY2021, COVID-19 impacted Municipal Court operations.
(4) Prior to FY2020, fire hydrant maintenance and inspections was contracted out.
190 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program (continued)
2020 2021 2022 2023 2024
Page 6 of 6
COMMUNITY SERVICES
Animal Control:
Animal Services Calls for Service 4,596 5,237 4,420 2,612 2,419
Animal Shelter Live Release % 80% 94% 93% 94% 95%
Inspection Services:
Total building inspections 30,781 29,525 27,919 22,848 15,159
Total permits issued 5,545 11,066 10,794 8,365 7,655
Number of plans reviewed 2,196 1,926 2,052 1,619 1,546
Municipal Court:
Number of trials (3) 390 233 506 175 95
Number of charges (3) 9,577 11,351 13,159 11,222 12,842
Warrants cleared (3) 3,757 3,873 4,866 3,879 4,193
WATER & SEWER
Distribution and Collection:
Fire hydrant maintenance and inspections (4) 2,358 903 1,412 75 1,851
Backed up sewer repairs 233 178 60 277 66
Water mains repaired 114 121 252 180 125
Water Production:
Water produced - wells
(in millions of gallons) 3,816 2,211 2,939 2,809 2,859
Surface Water Purchased
(in millions of gallons) 2,975 2,506 2,533 3,002 2,338
Billing & Collections:
Annual meter reads 469,908 486,717 464,691 491,661 487,558
Number of bills 452,465 460,147 482,741 473,196 487,558
Wastewater Treatment:
Wastewater treated
(in millions of gallons) 3,577 3,737 3,380 3,785 3,257
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.
191 City of Pearland, Texas 2024 ACFR
192 City of Pearland, Texas 2024 ACFR
CITY OF PEARLAND, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
PUBLIC SAFETY
Police
Police stations 1 1 1 1 1 1 1 1 1 1
Police vehicles 143 186 194 209 211 210 201 202 203 206
Police K9s 2 4 5 5 5 5 4 4 5 3
FARO Laser Scanning System(' - 1 1 1 1 1 1 1 1 1
Pole Camera System(�) - - - - - 1 1 3 3 3
Animal Services
Animal Services building (shelter) 1 1 1 1 1 1 1 1 1 1
Animal Services vehicles (2) 10 10 10 11 11 11 11 11 11 11
Fire
Fire stations 6 6 7 6 5 6 6 6 6 6
Fire vehicles 26 42 56 60 61 56 55 41 45 15
Ambulances (1) 7 9 9 10 10 9 9 10 11 11
PUBLIC WORKS
Streets (miles) (2) 842 936 928 940 978 978 971 971 980 980
Vehicle inventory (3) 372 451 385 338 434 502 443 626 653 674
Traffic signals 73 87 91 96 97 100 104 109 115 115
PARKS AND RECREATION
Developed acreage (4) 168 334 388 392 443 458 458 458 547 547
Pools 3 3 3 3 2 2 2 2 2 2
Outdoor basketball courts 6 6 6 6 8 8 8 8 8 8
Soccer fields 12 18 12 14 12 12 11 13 13 13
Activity buildings 3 3 3 3 4 4 4 4 4 4
Baseball/softball fields 4 6 14 16 16 16 16 17 17 17
WATER AND SEWER
Water Production
Water wells 10 10 10 10 10 10 10 10 10 10
Pumping stations 3 3 3 3 3 3 3 2 2 2
Ground storage tanks 15 15 15 15 15 15 16 16 16 16
Elevated towers 6 6 6 6 6 6 6 6 6 6
Wastewater
Treatment plants 5 5 5 5 6 5 5 5 5 5
Lift stations 73 74 72 78 69 69 68 68 68 78
Distribution and Collection
Water mains (miles) 509 537 546 551 553 553 538 545 571 572
Sanitary sewers (miles) 433 440 448 456 459 459 453 455 470 471
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.
193 City of Pearland, Texas 2024 ACFR
City of Peartand, Texas
3519 Liberty Dr, Peartand, TX 77581
281.652.1600 I pearlandtx.gov