R2003-0054 04-14-03 RESOLUTION NO. R2003-54
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, ACCEPTING THE RESULTS OF THE CITY'S ANNUAL
FINANCIAL AUDIT AS PREPARED BY THE ACCOUNTING FIRM OF
PATTILLO, BROWN AND HILL.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS.
Section 1 That certain financial audit as prepared by Patillio, Brown and Hill, a
copy of which is attached hereto as Exhibit"A" and made a part hereof for all purposes, is
hereby authorized and approved
Section 2. That the City Council accepts the results of the City's annual financial
audit.
PASSED,APPROVED and ADOPTED this the 14th day of April
A.D , 2003
TOM REID
MAYOR
ATTEST
Y NG L G, TR
I Y SE ETARY
APPROVED AS TO FORM
634AA-:_ /?,649,
DARRIN M COKER
CITY ATTORNEY
Exhibit "A"
R2003-54
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City , Pear1and
Texas
C'ompr'ehLensive
Annual Flinancia_l Report.
FOR THE YEAR ENDED SEPTEMBER 30, 2002
CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2002
Prepared by:
Finance Department
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30,2002
Page
Exhibit Number
INTRODUCTORY SECTION
Letter of Transmittal 1- vi
GFOA Certificate of Achievement for
Excellence in Financial Reporting vii
Organization Chart. viii
Principal Officials ix
Executive Managers x
FINANCIAL.SECTION
Independent Auditors' Report 1 —2
General Purpose Financial Statements:
Combined Balance Sheet—All Fund Types, Account
Groups and Discretely Presented Component Units 1 3 —4
Combined Statement of Revenue, Expenditures and
Changes in Fund Balances —All Governmental Fund Types
and Discretely Presented Component Units 2 5—.6
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance—Budget and Actual—General and
Debt Service Funds 3 7—8
Combined Statement of Revenue, Expenses and Changes in
Retained Earnings—Proprietary Fund Type (Enterprise Fund) 4 9
(continued)
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30,2002
Page
Exhibit Number
FINANCIAL SECTION (Continued)
General Purpose Financial Statements: (Continued)
Combined Statement of Cash Flows—All Proprietary
Fund Type(Enterpnse Fund) 5 10
Notes to Financial Statements 11 —34
Required Supplementary Information:
Pension Information—Texas Municipal Retirement System. 35
Combining and Individual Fund and Account Group
Financial Statements and Schedules:
Governmental Fund Types
General Fund
Comparative Balance Sheets A— 1 36
Statement of Revenue, Expenditures and Changes in
Fund Balance—Budget and Actual. A—2 37
Schedule of Expenditures—Budget and Actual A—3 38—45
3
(continued)
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30,2002
Page
Exhibit Number
FINANCIAL SECTION (Continued)
Combining and Individual Fund and Account Group
Financial Statements and Schedules: (Continued)
Governmental Fund Types (Continued)
Special Revenue Funds
Combining Balance Sheet B— 1 46—47
Combining Statement of Revenue, Expenditures and
Changes in Fund Balances B—2 48 —49
Debt Service Fund
Comparative Balance Sheets C— 1 50
Statement of Revenue, Expenditures and Changes in
Fund Balance—Budget and Actual. C—2 51
Capital Projects Funds
Combining Balance Sheet D— 1 52—55
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance D—2 56—59
(continued)
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30,2002
Page
Exhibit Number
FINANCIAL SECTION (Continued)
Combining and Individual Fund and Account Group
Financial Statements and Schedules: (Continued)
Account Groups
General Fixed Assets
Schedule of General Fixed Assets by Source E— 1 60
Schedule of Changes in General Fixed Assets by
Function and Activity E—2 61
Schedule of General Fixed Assets by Function and
Activity E—3 62—63
General Long-term Debt:
Schedule of General Long-term Debt Service
Requirements to Maturity F 64—67
Enterprise Fund Debt
Schedule of Enterprise Fund Debt Service Requirements to
Maturity G 68—69
(continued)
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30,2002
Page
Exhibit Number
FINANCIAL SECTION (Continued)
__J Combining and Individual Fund and Account Group
` Financial Statements and Schedules: (Continued)
Component Units
Combining Balance Sheet H— 1 70
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance H—2 71
Combining Balance Sheet—Pearland Economic Development
Corporation(PEDC) H—3 72
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance—Pearland Economic
Development Corporation(PEDC) H—4 73
Combining Balance Sheet TIRZ#1 and TIRZ#2 H—5 74
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance TIRZ#1 and TIRZ#2 H—6 75
Schedule of Component Unit Funds Debt Service
Requirement to Maturity H—7 76
(continued)
CITY OF PEARLAND, TEXAS
TABLE OF CONTENTS
(Continued)
YEAR ENDED SEPTEMBER 30,2002
Page
Exhibit Number
UNAUDITED STATISTICAL SECTION
General Governmental Expenditures by Function—Last Ten
Fiscal Years 1 77
General Governmental Revenue by Source—Last Ten
Fiscal Years 2 78
Property Tax Levies and Collections—Last Ten Fiscal Years , 3 79
Assessed Value of Taxable Property—Last Ten Fiscal Years 4 80
Property Tax Rates—Direct and Overlapping Governments—
Last Ten Fiscal Years 5 81
Principal Taxpayers 6 82
Property Values, Construction and Bank Deposits 7 83
Ratio of Net General Long-term Debt to Assessed Value and
Net Long-term Debt Per Capita—Last Ten Fiscal Years 8 84
Ratio of Annual Debt Service Expenditures for General
Long-term Debt to Total General Governmental
Expenditures and legal Debt Limits—Last Ten Fiscal Years 9 85
Computation of Direct and Overlapping Debt 10 86
Demographic Statistics 11 87
Miscellaneous Statistical Data. 12 88—89
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11M
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To the Honorable Mayor, Members
of City Council, and Citizens of
the City of Pearland
Pearland, Texas.
I
The Comprehensive Annual Financial Report of the City of Pearland, Texas (the "City") for the fiscal
year ended September 30, 2002, is hereby submitted. Responsibility for both the accuracy of the data,
and the completeness and fairness of the presentation, including all disclosures, rests with the City To
the best of our knowledge and belief, the enclosed data are accurate in all material respects and are
reported in a manner designed to present fairly the financial position and results of operations of the
various funds and account groups of the City All disclosures necessary to enable the reader to gain an
understanding of the City's financial activities have been.included.
The Comprehensive Annual Financial Report is presented in three sections Introductory, Financial, and
Statistical Sections. The Introductory Section includes this transmittal letter, the City's organizational
chart, and a list of principal officials. The Financial Section includes the general purpose financial
statements and the combining and individual fund and account group financial statements and schedules,
as well as the auditors' report on the financial statements and schedules. The Statistical Section includes
selected financial and demographic information, generally presented on a multi-year basis.
The financial reporting entity (the "City") includes all the funds and account groups of the primary
,government (i.e., the City of Pearland as legally defined), as well as all of its component units.
Component units are legally separate entities for which the primary government is financially
accountable. The City provides the full range of municipal services contemplated by statute or charter
This includes police and fire protection, health and social services, public improvements, planning and
zoning, and general administrative services The City also provides water, sewer, and sanitation
I`� services Additionally, the City has an Economic Development Corporation, designed to attract and
retain jobs and more fully develop the local ad valorem tax base.
Discretely presented and blended component units are reported in a separate column in the combined
financial statements to emphasize that they are legally separate from the primary government and to
differentiate their financial position, results of operations, and cash flows from those of the primary
government. The Economic Development Corporation is reported as a discretely presented component
unit.
i
ECONOMIC CONDITION AND OUTLOOK
The City of Pearland hes 15 miles southeast of downtown Houston and 10 miles from the Texas Medical
Center in the northeast corner of Brazona County,with small areas within Hams and Fort Bend Counties
Pearland is accessible by way of four major highways and is six miles from Houston Hobby Airport.
Sales tax receipts have shown favorable increases for the last several years The Pearland Economic
Development Corporation (PEDC) awarded incentive packages to either attract new businesses or allow
existing businesses to expand.
MAJOR INITIATIVES
The Pearland City Council sets its goals each year in a strategic planning workshop Some of the
highlighted goals include•
• Implement the 2001 bond projects;
• Advance improvements to mitigate drainage and flooding issues including regional
detention facilities and storm water detention regulations,
• Address the growth management needs of the City;
• Fiscal responsibility;
• Update the Comprehensive Plan and related City codes;
• Address the infrastructure needs of the City;
• Address the transportation and mobility needs of the City; and
• Maintain and expand intergovernmental communication and cooperation.
FUTURE OUTLOOK
Brazona County's current population is just under 228,000 It is estimated that this will increase to over
330,000 in the next 10 to 15 years. According to the Brazona County Partnership, job growth will be
focused in four primary areas 1) aerospace/high technology, 2) transportation and distribution, 3)
petrochemical and downstream petrochemical companies, and 4)tourism.
In late 1998, the City of Pearland created a Tax Increment Reinvestment Zone (TIRZ #2) This involved
the annexation of over 3,000 acres west of the State Highway 288 (SH 288) corridor The City limit now
extends to portions of Fort Bend County The proposed development, Shadow Creek Ranch, has the
potential to develop the acreage over a 15 to 20-year time frame It is estimated that 7,000 new single-
family homes, 1,800 assisted living units, and 3,900 multi-family units could be developed. More than
two billion dollars worth of value would be added over the next 20 years
Shadow Creek Ranch will not only improve roads in the area, but will also bring in sewer and drainage,
water, and major landscaping to the area. The added population poises SH 288 for major retail and
commercial development that could eventually include major office buildings, a hospital, and hotels
11
DEPARTMENT FOCUS
Finance. The Finance Department continues to improve in multiple major areas. Additional staff has
allowed for enhanced interest earnings and improved financial projections. The Department continues
to submit winning GFOA awards for budget presentation and financial audit reporting.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that (1) the cost of controls should not exceed the benefits expected to be derived
and(2)the evaluation of costs and benefits requires estimates and judgments by management.
Accountmg Controls. We beheve that the City's accountmg controls provide reasonable assurance that
errors or irregularities that could be material to the financial statements are prevented or would be detected
within a timely period by employees m the normal course of performing their assigned function.
Budgeting Controls. In addition, the City maintains budgetary controls. The objective of these budgetary
controls is to ensure compliance with legal provisions embodied in the annual appropriated budget
approved by the City's governing body Activities of the General, Debt Service, and Enterprise Funds are
- included in the annual appropriated budget. The level of budgetary control (the level at which
expenditures cannot legally exceed the appropriated amount) is the total approved budget for each
department.
As demonstrated by the statements and schedules mcluded in the financial section of this report,the City
continues to meet its responsibility for sound financial management.
General Government Functions. The revenue from the General, Special Revenue, and Debt Service
Funds, and the amount and percentage of increases and decreases in relation to prior year revenue, is
summarized in the followmg schedule:
2002 2001 Percent of
2002 Percent 2001 Percent Increase Increase
Revenue Source Amount of Total Amount of Total (Decrease) (Decrease)
Property taxes and penalties $12,857,995 34 60% $10,833,292 42.18% $ 2,024,703 18.69%
• Sales and hotel/motel taxes 5,103,241 13.73% 4,862,571 18.93% 240,670 4.95%
Franchise and gross receipts taxes 2,453,829 6.60% 2,303,730 8.97% 150,099 6.52%
Licenses and permits 2,256,638 6.07% 1,896,728 7.38% 359,910 18.98%
Fines and forfeitures 845,322 2.27% 856,641 3.34% (11,319) ( 1.32)%
- Intergovernmental 8,383,743 22.56%. 333,677 1.30% 8,050,066 2,412.53%
Charges for services 3,651,825 9 83% 3,202,767 12.47% 449,058 14 02%
Interest 202,296 0.54% 416,572 1 62% (214,276) (51 44%
Other 1,404,342 3 78% 977,589 3 81% 426,753 43.65%
$37,159,231 100.00% $25,683,567 100.00% $11,475,664 11 68%
The most significant percentage increase in revenue was derived from intergovernmental revenues. This
was primarily due to revenues from the FEMA buyout program. This revenue was a non-recumng
revenue source received from FEMA. The other areas of healthy increases were in the property tax
revenues and licenses and permits. These increase were due to the increase in the tax base and building
activity The decrease in interest was due to the lower interest rate market in this past fiscal year
Allocations of property tax levy by purpose for 2001-2002 fiscal year and the preceding two fiscal years
are as follows (amount per $100/assessed value)
Purpose 2002 2,001 2000
General Fund 0.430 0.435 0 440
General Obligation Debt 0.256 0.260 0.255
Total Tax Rate 0 686 0 695 0.695
The expenditures for the general, special revenue, and debt service funds and the amount, and
percentage of increases and decreases in relation to the prior year expenditures, are summarized in the
following schedule:
2002 2001 Percent of
2002 Percent 2001 Percent Increase Increase
Function Amount of Total Amount of Total (Decrease) (Decrease)
General Government $16,107,540 42.20% $ 4,235,344 19% $11,872,196 280.31%
Public Safety 7,413,321 19 42% 6,692,138 29% 721,183 10.78%
Public Works 7,603,804 19.92% 5,974,667 26% 1,629,137 27.27%
Community Services 2,932,228 7 68% 2,662,367 12% 269,861 10.14%
Debt Service 4,112,490 10.78% 3,275,682 14% 836,808 25.55%
$38,169,383 100.00% $22,840,198 100% $15,329,185 67 11%
The most significant increase was in general government. Of this amount, approximately $11 million
was due to the FEMA buyout program expenditures.
Enterprise Operations The City's enterprise operations are comprised of the Water and Sewer System.
Water and Sewer System. Operating revenues totaled $8,223,719 compared to $7,453,484 last year, a
10.3%. The increase is due to increase in growth and annexations Comparative data for the past two
fiscal years are presented in the following schedule'
Water and Sewer System
2002 2001 2000
Operatmg Revenues $8,223,719 $7,453,484 $7,146,031
Operating Expenses(before depreciation) 5,243,633 4,946,621 3,899,289
Operating Income(before depreciation) $2,980,086 $2,506,863 $3,246,742
Number of customers 14,161 11,780 11,000
iv
Debt Administration. The ratio of net debt to assessed valuation and the amount of bonded debt per
capita are useful indicators of the City's debt position to municipal management, citizens, and investors
This data for the City of Pearland at September 30, 2002, are presented in the statistical section of this
report.
The City's assigned "insured" bond ratings on its,most recent issue were as follows_
Moody's Standard & Poors
Revenue Bonds AAA AAA
Tax Bonds AAA AAA
Cash Management. Cash, temporarily idle during the year, was mvested in certificates of deposit
ranging from 60 to 365 days to maturity Certificate of deposit and cash amounts which exceed FDIC
coverage are collateralized by securities owned by the City's depository All investments held by the
City during the year and at September 30, 2002, are classified in the category of lowest credit risk as
defined by the Governmental Accounting Standards Board.
Risk Management. During 2001-02, the City continued an aggressive risk management program for
workers' compensation. Various risk control techniques, including employee accident prevention
traming, have been emphasized during the year in order to minimize accident-related losses.
OTHER INFORMATION
Independent Audit. The City Charter requires an annual audit of the books of account, financial records,
and transactions of all administrative departments of the City by an independent certified public
accountant. The accounting firm of Pattillo, Brown and Hill, L.L.P was selected by the City Council.
This requirement has been complied with, and the auditors' opinion has been included in this report.
Awards The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reportmg to the City of Pearland for
its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2001 This was the
251 consecutive year that the City has received this prestigious award.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual financial report, whose contents conform to
program standards. Such reports must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only We believe our current report
continues to conform to Certificate of Achievement Program requirements and we are submitting it to
GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA's Award for Distinguished Budget Presentation, the 151
consecutive year for its annual appropriated budget dated September 13, 2001 In order to qualify for
the Distinguished Budget Presentation Award, the City's budget document was judged to beproficient
in several categories including pohcy documentation, financial planning, and organization.
v
Acknowledgments. We would like to express our appreciation to all members of the Finance and
Administration Departments who assisted and contributed to its preparation. We would also like to
thank the Mayor, members of the City Council, and City Manager for their interest and support in
planning and conducting the financial operations of the City in a responsible and progressive manner
Respectfully sub tted,
op, etr...,
Mary A. Ross
Director of Finance
March 13, 2003
vi
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pearland,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
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Executive Director
City of Pearland Organizational Chart
CITIZENS
CITY COUNCIL
MUNICIPAL JUDGES CITY MANAGER 4 -►I CITY ATTORNEY
ECONOMIC DEPUTY CITY EXECUTIVE CITY SECRETARY
DEVELOPMENT MANAGER DIRECTOR OF
COMMUNITY
SERVICES
FINANCE ENGINEERING
ACCOUNTING
PROJECTS I HUMAN
RESOURCES
PURCHASING f
- JJJ
PUBLIC WORKS F
UTILITY BILLING I MUNICIPAL
COURT
FLEET
INFORMATION MAINTENANCE
SYSTEMS
INSPECTION
FIRE MARSHAL
STREETS AND SERVICES
EMERGENCY MANAGEMENT DRAINAGE
BUILDING
FIRE WAS INSPECTION
PRODUCTION
AND CODE
EMERGENCY WASTEWATER ENFORCEMENT
MEDICAL TREATMENT
SERVICES
WATER AND
PARKS&RECREATION _ WASTEWATER PLANNING AND
DISTRIBUTION ZONING
AND COLLECTION
PARKS
WATER AND ANIMAL
, WASTEWATER CONTROL
COMMUNITY CONSTRUCTION
CENTER
GRANTS/PUBLIC
CUSTODIAL AFFAIRS
BUILDING MAINT
POLICE
RECREATION
CRIMINAL
- ATHLETICS INVESTIGATION
DIVISION
AQUATICS/SP
EVENTS -I CIVILIAN
RECREATION -1 COMMUNITY
CENTER SERVICE
SENIORS -I PATROL
CITY OF PEARLAND,TEXAS
LIST OF PRINCIPAL OFFICIALS
AS OF SEPTEMBER 30,2002
ELECTED OFFICIALS
Torn Reid Mayor
Richard Tetens(Position No 1) Council Member
Woody Owens(Position No 2) Council Member, Mayor Pro-Tem
Charles Viktorin(Position No 3) Council Member
Larry Marcott(Position No. 4) Council Member
Klaus Seeger(Position No 5) Council Member
APPOINTED OFFICIALS
Bill Eisen City Manager
Alan Mueller Deputy City Manager
Young Lorfing City Secretary
Darrin Coker City Attorney
(contmued)
ix
CITY OF PEARLAND,TEXAS
LIST OF PRINCIPAL OFFICIALS
(continued)
AS OF SEPTEMBER 30,2002
EXECUTIVE MANAGERS
Vacant Executive Director of P.E.D C.
Cindy Soto Interim Director of Finance
Chris Doyle Police Chief
Larry Steed Fire Marshall/Emergency
Management Director
Tobin Maples Manager of Administrative Services
Ed Hersh Director of Parks and Recreation
Jerry Burns Director of Public Works
Joseph Wertz Director of Projects
Vacant Director of Inspection Services
John Hargrove City Engineering
Glenn Chaney Municipal Court Judge
Edward Sillas Mumcipal Court Judge
Floyd Myers Municipal Court Judge
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, 1
PATTILLO, BROWN & HILL, LLP
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members
of the City Council
City of Pearland, Texas
We have audited the accompanying general purpose financial statements of the City of Pearland,
Texas, as of and for the year ended September 30, 2002, as listed in the table of contents. These general
purpose financial statements are the responsibility of the City's management. Our responsibility is to
express an,opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the Umted
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general
purpose financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall general purpose financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Pearland, Texas, as of September 30, 2002, and
the results of its operations and the cash flows of its proprietary fund type for the year then ended in
conformity with accounting principles generally accepted in the Umted States of America.
r}
1
401 WEST HIGHWAY 6■P 0 BOX 20725■WACO,TX 76702-0725■(254)772-4901■FAX.(254)772-4920■www.pbhcpa.com
AFFILIATE OFFICES:AUSTIN,TX(512)345-1452■BROWNSVILLE,TX(956)544-7778■HILLSBORO,TX(254)582-2583
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In accordance with Government Auditing Standards, we have also issued our report dated
December 20, 2002, on our consideration of the City of Pearland, Texas' internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and
grants. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, schedules and statistical data listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the City of
Pearland, Texas. Such information, except for that portion marked "unaudited" on which we express no
opinion, has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly presented in all material respects in relation to the
general purpose financial statements taken as a whole.
The Required Pension System Supplementary Information listed in the table of contents is not a
required part of the general purpose financial statements, but is supplementary information required by
the Government Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and
presentation of the supplementary information. However, we did not audit the information and express
no opinion on it.
faM10- cP
December 20, 2002,
2
GYStIthl VASOOSt
OS ASO NA-J A.0)-OSIS
i
CITY OF PEARLAND, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES,ACCOUNT GROUPS
AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30,2002
(With Comparative Totals for September 30, 2001)
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
ASSETS AND OTHER DEBITS
Assets:
Cash and cash equivalents $ 253,932 $ 1,130,747 $ 176,152 $ 5,563,010
Investments 4,804,725 15,000 2,053,377 26,193,112
Receivables:
Property taxes 462,989 - 236,852 -
Accounts receivable 588,692 - - 187,841
Less:allowance for estimated uncollectibles ( 65,590) - - -
Grants Receivable - 4,834 - -
Sales and Other Taxes Receivable 1,415,722 - - -
Accrued interest 1,626 58 - 55,085
Due from other funds 612,373 - - -
Inventories 51,915 - - -
Restricted assets:
Cash and cash equivalents - - - -
Deferred charges - _ - -
Construction in progress - _ - -
Fixed assets(net where applicable of accumulated depreciation) - - - -
accumulated depreciation)
Other Debits:
Amount available for debt service - - -
Amount to be provided for retirement of general long-term debt - - -
Total Assets and Other Debits $ 8,126,384 $ 1,150,639 $ 2,466,381 $ 31,999,048
LIABILITIES,EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable $ 1,692,549 $ 187,526 $ - $ 3,408,190
Accrued liabilities 2,266 - - -
Due to other funds - 71,334 - 81,173
Security deposits - - _ _
Accrued compensated absences 690,584 - - -
Deferred revenue 716,039 14,706 236,852 15,966
Deferred issuance cost _ - _ -
Current portion of long-term debt -
- - -
Certificates of obligation - - - -
Revenue bonds-less current portion - - - -
Obligations under capital leases - _ - -
General obligation bonds - - - -
Total Liabilities 3,101,438 273,566 236,852 3,505,329
Equity and Other Credits:
Contributed capital - - - -
Investment in general fixed assets - _ - -
Retained earnings - - -
Fund balances:
Reserved for encumbrances 234,010 - - -
Reserved for inventories and prepaid items 51,915 - - -
Unreserved:
Designated for debt service - - 2,229,529 -
Designated for subsequent years'expenditures - 877,073 - 28,493,719
Undesignated 4,739,021 - - -
Total Equity and Other Credits 5,024,946 877,073 2,229,529 28,493,719
Total Liabilities,Equity and Other Credits $ 8,126,384 $, 1 150,639 $ 2,466,381 $ 31,999,048
The accompanying notes are an integral part of these financial statements.
3
- E7HIBIT 1
Proprietary Total Totals
Fund Type Account Groups Primary Discretely (Memorandum Only)
General General Government Presented
Fixed Long-term (Memorandum Component September 30,
Enterprise Assets Debt Only) Unit 2002 2001
$ - $ - $ - $ 7,123,841 $ 1,142,958 $ 8,266,799 $ 5,801,136
28,416,480 - - 61,482,694 3,761,047 65,243,741 35,432,242
- - - 699,841 - 699,841 550,553
1,094,087 - - 1,870,620 142 1,870,762 2,419,893
( 115,883) - - ( 181,473) - ( 181,473) ( 181,473)
- - - 4,834 - 4,834 -
- - - 1,415,722 470,552 1,886,274 1,937,737
31,791 - - 88,560 6,288 94,848 41,649
- - - 612,373 - 612,373 2,154,884
- - - 51,915 - 51,915 51,915
340,000 - - 340,000 - 340,000 444,949
654,760 - - 654,760 - 654,760 657,777
14,425,830 - - 14,425,830 - 14,425,830 11,423,287
34,139,822 65,4,79,400 - 99,619,222 55,403 99,674,625 79,018,306
- - 2,229,529 2,229,529 - 2,229,529 1,544,987
- - 64,487,273 642487,273 4,556,023 69,043,296 32,976,911
- $ 78,986,887 $ 652479,400 $_ 66,716,802 $ 254,925,541 $ 9,992,413 $ 264,917,954 $ 174,274,753
r
$ 2,731,007 $ - $ - $ 8,019,272 $ 74,305 $ 8,093,577 $ 1,606,225
192,682 - - 194,948 7,726 202,674 166,320
_ 459,866 - - 612,373 - 612,373 2,154,884
750,519 - - 750,519 - 750,519 623,913
310,541 - 1,796,802 2,797,927 6,023 2,803,950 2,289,414
- - - 983,563 - 983,563 808,237
- - - - - - 52,002
675,000 - - 675,000 - 675,000 645,000
16,835,000 - 51,585,000 68,420,000 4,550,000 72,970,000 15,680,000
24,985,000 - - 24,985,000 - 24,985,000 32,495,000
- - - - - - 74,724
- - 13,335,000 13,335,000 - 13,335,000 17,260,000
46,939,615 - 66,716,802 120 773,602 4,638,054 125,411,656 73,855,719
22,233,110 - - 22,233,110 - 22,233,110 22,233,110
- 65,479,400 - 65,479,400 55,403 65,534,803 54,694,569
9,814,162 - - 9,814,162 - 9,814,162 10,867,988
- - - 234,010 - 234,010 1,433,514
- - - 51,915 - 51,915 -
- - - 2,229,529 - 2,229,529 1,544,987
- - - 29,370,792 - 29,370,792 3,552,583
- - - 4,739,021 5,298,956 10,037,977 6,092,283
32,047,272 65,479,400 - 134,151,939 5,354,359 139,506,298 100,419,034
$ 78,986,887 $ 65,479,400 $ 66,716,802 $ 254,925,541 $ 9,992,413 $ 264,917,954 $ 174,274,753
4
CITY OF PEARLAND, TEXAS
COMBINED STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
AND DISCRETELY PRESENTED COMPONENT UNITS
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Totals for Year Ended September 30, 2001)
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
REVENUE
Property taxes and penalties $ 8,054,173 $ - $ 4,803,822 $ -
Other taxes 5,044,972 58,269 - -
Licenses and permits 2,256,638 - - -
Fines and forfeitures 845,322 - - -
Franchise fees 2,453,829 - - -
Charges for services 3,651,825 - - -
Intergovernmental - 8,383,743 - 617,545
Interest 155,628 1,649 45,019 446,525
Other 733,303 671,039 - 179,336
Total Revenue 23,195,690 9,114,700 4,848,841 1,243,406
EXPENDITURES
Current:
General government 5,052,056 11,055,484 - 117,437
Public safety 7,411,992 1,329 - 890,055
Public works 7,603,804 - - -
Community services 2,271,052 661,176 - -
Economic development - - - -
Capital outlay - - - 12,239,136
Debt service:
Principal retirement - - 1,920,000 -
Interest and fiscal charges - - 2,192,490 -
Bond issuance costs - - - 181,812
Total Expenditures 22,338,904 11,717,989 4,112,490 13,428,440
EXCESS OF REVENUE OVER
(UNDER)EXPENDITURES 856,786 ( 2,603,289) 736,351 ( 12,185,034)
OTHER FINANCING SOURCES(USES)
Operating transfers in 911,552 2,619,677 - 850,439
Proceeds from bond issuance - - 1,900,000 36,650,000
Payments to bond escrow - - ( 1,900,000) -
Operating transfers out ( 3,224,732) - ( 51,809) ( 475,440)
Total Other Financing Sources(Uses) ( 2,313,180) 2,619,677 ( 51,809) 37,024,999
EXCESS OF REVENUE AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES ( 1,456,394) 16,388 684,542 24,839,965
FUND BALANCE,BEGINNING OF YEAR 6,563,942 860,685 1,544,987 3,653,754
PRIOR PERIOD ADJUSTMENT ( 82,602) - - -
FUND BALANCE,END OF YEAR $ 5,024,946 $ 877,073 $ 2,229,529 $ 28,493,719
The accompanying notes are an integral part of these financial statements.
5
EXHIBIT 2
Totals
Totals
> (Memorandum Discretely (Memorandum Only)
J Only) Presented
'7 Primary Component September 30,
Government Units 2002 2001
- $ 12,857,995 $ 2,926 $ 12,860,921 $ 10,833,292
5,103,241 2,512,463 7,615,704 7,259,846
2,256,638 - 2,256,638 1,896,728
r._J 845,322 - 845,322 856,641
2,453,829 - 2,453,829 2,303,730
3,651,825 - 3,651,825 3,202,767
9,001,288 - 9,001,288 363,677
648,821 - 648,821 691,715
1,583,678 206,383 1,790,061 1,676,909
38,402,637 2,721,772 41,124,409 29,085,305
16,224,977 - 16,224,977 4,235,344
8,303,376 - 8,303,376 6,692,138
7,603,804 - 7,603,804 5,974,667
2,932,228 - 2,932,228 2,662,369
- 571,379 571,379 1,079,177
12,239,136 1,269,651 13,508,787 4,920,448
1,920,000 368,779 2,288,779 2,050,616
2,192,490 - 2,192,490 1,595,682
181,812 - 181,812 -
51,597,823 2,209,809 53,807,632 29,210,441
( 13,195,186) 511,963 ( 12,683,223) ( 125,136)
4,381,668 411,639 4,793,307 700,007
38,550,000 - 38,550,000 -
( 1,900,000) - ( 1,900,000) -
( 3,751,981) ( 110,000) ( 3,861,981) ( 128,000)
37,279,687 301,639 37,581,326 572,007
24,084,501 813,602 24,898,103 446,871
12,623,368 4,526,038 17,149,406 15,128,676
( 82,602) ( 40,684) ( 123,286) 1,573,868
$ 36,625,267 $- 5,298,956 $.. 41,924,223 $ 17,149,415
6
CITY OF PEARLAND,TEXAS
COMBINED STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL AND DEBT SERVICE FUNDS
YEAR ENDED SEPTEMBER 30,2002
General
Variance
Favorable
Budget Actual (Unfavorable)
REVENUE
Property taxes and penalties $ 8,206,442 $ 8,054,173 $( 152,269)
Other taxes 4,712,800 5,044,972 332,172
Licenses and permits 1,637,000 2,256,638 619,638
Fines and forfeitures 885,700 845,322 ( 40,378)
Franchise fees 2,135,011 2,453,829 318,818
Charges for services 3,586,383 3,651,825 65,442
Interest 483,000 155,628 ( 327,372)
Other 395,625 733,303 337,678
Total Revenue 22,041,961 23,195,690 1,153,729
EXPENDITURES
Current:
General government 6,916,970 5,052,056 1,864,914
Public safety 7,126,729 7,411,992 ( 285,263)
Public works 6,595,637 7,603,804 ( 1,008,167)
Community services 2,138,983 2,271,052 ( 132,069)
Debt service:
Principal retirement - - -
Interest and fiscal agent fees - - -
Total Expenditures 22,778,319 22,338,904 439,415
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENDITURES ( 736,358) 856,786 1,593,144
OTHER FINANCING SOURCES(USES)
Operating transfers in 810,000 911,552 101,552
Proceeds from debt issuance - - -
Payments to bond escrow - - -
Operating transfers out ( 518,000) ( 3,224,732) ( 2,706,732)
Total Other Financing Sources(Uses) 292,000 ( 2,313,180) ( 2,605,180)
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
AND OTHER FINANCING USES ( 444,358) ( 1,456,394) ( 1,012,036)
FUND BALANCES,BEGINNING OF YEAR 6,563,942 6,563,942 -
PRIOR YEAR ADJUSTMENT - ( 82,602) ( 82,602)
FUND BALANCES,END OF YEAR $ 6,119,584 $ 5,024,946 $jl 1,094,638)
The accompanying notes are an integral part of these financial statements.
7
( EXHIBIT 3
Debt Service
Variance
Favorable
Budget Actual (Unfavorable)
$ 4,752,927 $ 4,803,822 $ 50,895
58,000 45,019 ( 12,981)
4,810,927 4,848,841 37,914
2,080,000 1,920,000 160,000
3,326,065 2,192,490 1,133,575
5,406,065 4,112,490 1,293,575
( 595,138) 736,351 1,331,489
1,900,000 1,900,000
( 1,900,000) ( 1,900,000)
( 51,809) ( 51,809)
( 51,809) ( 51,809)
( 595,138) 684,542 1,279,680
1,544,987 1,544,987 -
$ 949,849 $ 2,229,529 $ 1,279,680
8
EXHIBIT 4
CITY OF PEARLAND, TEXAS
COMBINED STATEMENT OF REVENUE,EXPENSES
AND CHANGES IN RETAINED EARNINGS-
PROPRIETARY FUND TYPE(ENTERPRISE FUND)
YEAR ENDED SEPTEMBER 30,2002
Enterprise
OPERATING REVENUE
Water and sewer sales and services $ 7,974,288
Other 249,431
Total Operating Revenue 8,223,719
OPERATING EXPENSES
Production and wastewater 2,752,987
Distribution and collection 950,263
Accounting and collections 386,932
Other requirements 525,621
Construction and engineering 627,830
Total Operating Expenses 5,243,633
OPERATING INCOME BEFORE DEPRECIATION 2,980,086
DEPRECIATION AND AMORTIZATION 1,405,238
OPERATING INCOME 1,574,848
NONOPERATING REVENUE(EXPENSES)
Earnings on investments 813,424
Impact fees 3,906,666
Interest and fiscal charges ( 1,891,400)
Total Nonoperating Revenue(Expenses) 2,828,690
TRANSFERS FROM(TO)OTHER FUNDS
Transfers in 128,000
Transfers(out) ( 1,059,326)
Total Operating Transfers ( 931,326)
NET INCOME 3,472,212
RETAINED EARNINGS,BEGINNING OF YEAR 6,341,950
RETAINED EARNINGS,END OF YEAR $ 9,814,162
The accompanying notes are an integral part of these financial statements.
9
f '
EDIT 5
CITY OF PEARLAND, TEXAS
COMBINED STATEMENT OF CASH FLOWS-
PROPRIETARY FUND TYPE(ENTERPRISE FUND)
YEAR ENDED SEPTEMBER 30,2002
Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income $ 1,574,848
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization 1,405,238
Changes in Assets and Liabilities:
Decrease (increase)in accounts receivable 219,403
Decrease (increase)in accrued interest receivable 9,858
Decrease(increase)in due from other funds 31,549
f_ Decrease(increase)in deferred charges ( 48,985)
Increase(decrease)in customer deposits 126,606
Increase(decrease)in accounts payable 2,410;016
Increase(decrease)in accrued compensated absences 79,349
Increase(decrease)in due to other funds 396,858
Increase(decrease)in current portion of long-term debt 30,000
Increase(decrease)in accrued liabilities 60,390
Net Cash Provided by Operating Activities 6,295,130
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 128,000
Transfers to other funds ( 1,059,326)
Net Cash Used in Noncapital Financing Activities ( 931,326)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Contributed capital-impact fees 3,906,666
Purchase of fixed assets ( 14,223,865)
Revenue bond principal payments ( 675,000)
Proceeds from revenue bonds 10,000,000
Interest and fiscal charges ( 1,891,400)
Net Cash Used in Capital and Related Financing Activities ( 2,883,599)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 813,424
Purchase of investments ( 10,957,640)
Proceeds from sale of investments 5,108,467
Net Cash Used in Investment Activities ( 5,035,749)
NET DECREASE IN CASH ( 2,555,544)
CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 2,895,544
CASH AND CASH EQUIVALENTS,END OF YEAR $ 340,000
Cash $ -
Restricted cash 340,000
Cash and Cash Equivalents,End of Year $ 340,000
The accompanying notes are an integral part of these financial statements.
10
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2002
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Pearland, Texas, was incorporated in December 1959, and adopted the "Home Rule
Charter" February 6, 1971, pursuant to.the laws of the State of Texas. The City operates wider a
"Council-Manager"form of government and provides services authorized by its charter Presently,
these services include police and fire protection, water and sewer services, drainage, sanitation,
buildmg and code mspection, planning, zoning, engmeermg, street repair and maintenance, park
maintenance,recreational activities for citizens, and general administrative services.
The financial statements of the City of Pearland have been prepared in conformity with generally
accepted accounting principles (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB), is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. The more significant of the City's
accountmg policies are described below.
Reporting Entity
The City is an independent political subdivision of the State of Texas, governed by an elected
mayor and five-member Council, and is considered a primary government. As required by
generally accepted accounting principles, these general purpose financial statements have
been prepared based on the City's financial reporting entity The Pearland Economic
Development Corporation (PEDC) has been included in the City's fmancial reporting entity
as a discretely presented component unit. The City is considered a primary government for
financial reporting purposes and its activities are not considered a part of any other
governmental or other type of reportmg entity
Considerations regarding the potential .for inclusion of other entities, organizations, or
functions in the City's financial reporting entity, are based on criteria prescribed by generally
accepted accounting principles. These same criteria are evaluated in considering whether the
City is a part of any other governmental or other type of reporting entity The ovemding
elements associated with prescribed criteria considered in determining that the City's
financial reporting entity status is that of a primary government are that it has a separately
elected governing body; it is legally separate; and is fiscally independent of other state and
local governments. Additional prescribed criteria under generally accepted accounting
principles include considerations pertaining to organizations for which the primary
government is financially accountable; and considerations pertaining to other organizations
for which the nature and sigmficance of their relationship with the primary government are
such that exclusion would cause the reporting entity's financial statements to be misleading
or incomplete.
(continued)
11
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Reporting Entity(Continued).
As required by generally accepted accountmg principles, the financial statements of the
reporting entity include those of the City of Pearland (the primary government) and its
component units, entities for which the City is considered to be financially accountable.
Blended component units, although legally separate entities, are, in substance, part of the
government's operations and so data for these units would be combined with data of the City
The City has no blended component units. The City's discretely presented component unit is
reported in a separate column in the combined financial statements.
Discretely Presented Component Unit:
The component units in the combined financial statements include the financial data of
the City's component units. They are reported in a separate column to emphasize they
are legally separate from the City The City Council appoints the Board members for the
Pearland Economic Development Corporation. The City Council appoints several
members to the Tax Increment Reinvestment Zones with the remaining members being
appointed in accordance with state law
1 The Pearland Economic Development Corporation (PEDC) is responsible
for economic development within the City's jurisdiction. The PEDC is
fiscally dependent upon the government because, besides appointing the
Board, the City Council also must approve the PEDC's budget and any
debt issuances.
2. The two Tax Increment Reinvestment Zone's (TIRZ #1 and TIRZ #2)
provide tax assisted property development and/or redevelopment in
specific geographic areas in accordance with applicable state laws.
Besides appointing Board members, the City Council must also approve
the TIRZ's budgets and any debt issuances.
The following page presents condensed financial statements for each of the three
discretely presented component units. Additional financial information may be obtained
from their respective administrative offices at the following address.
Pearland Economic Development Corporation
or
Tax Increment Reinvestment Zones
3519 Liberty Drive
Pearland, Texas 77581-5416
(continued)
12
r
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Reporting Entity(Continued) --
Condensed financial statements of each discretely presented component unit are as follows.
Condensed Balance Sheet
Economic Tax Increment Tax Increment
Development Reinvestment Reinvestment 1
Corporation Zone#1 Zone#2 Totals --
ASSETS
Cash and investments $ 4,716,064 $ 11,057 $ 176,884 $ 4,904,005
Accounts receivable 476,982 - - 476,982
Fixed assets 55,403 - - 55,403
Amount to be provided for
retirement of long-term debt 4,556,023 - - 4,556,023
Total Assets $ 9,804,472 $ 11,057 $ 176,884 $ 9,992,413
LIABILITIES
Current liabilities $ 51,802 $ - $ 36,252 $ 88,054
General long-term debt 4,550,000 - - 4,550,000
Total Liabilities 4,601,802 - 36,252 4,638,054
FUND EQUITY
Investment in fixed assets 55,403 - - 55,403
Fund balance,unreserved 5,147,267 11,057 .140,632 5,298,956
Total Fund Equity 5,202,670 11,057 140,632 5,354,359
Total Liabilities and Fund Equity $ 9,804,472 $ 11,057 $ 176,884 $ 9,992,413
Condensed Statement of Revenue,Expenditures and Changes in Equity
REVENUE $ 2,586,560 $ 198 $ 135,014 $ 2,721,772
EXPENDITURES
Current 428,818 7,814 134,747 571,379
Capital outlay 1,269,651 - - 1,269,651
Debt service 368,779 - - 368,779
Total Expenditures 2,067,248 7,814 134,747 2,209,809
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENDITURES 519,312 ( 7,616) 267 511,963
OTHER FINANCING USES
Operating transfers in - - 411,639 411,639
Operating transfers out ( 110,000) - - ( 110,000)
Total Other Financing Uses ( 110,000) - 411,639 301,639
EXCESS OF REVENUE AND OTHER
SOURCES OVER EXPENDITURES
AND OTHER USES 409,312 ( 7,616) 411,906 813,602
FUND EQUITY,BEGINNING 4,778,639 18,673 ( 271,274) 4,526,038
PRIOR PERIOD ADJUSTMENT ( 40,684) - - ( 40,684)
FUND EQUITY,ENDING $ 5,147,267 $ 11,057 $ 140,632 $ 5,298,956
(continued)
13
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Accounting
The City uses funds and account groups to report on its financial position and the results of
its operations. Fund accounting is designed to demonstrate legal compliance and to aid
financial management by segregating transactions related to certain government functions or
activities
A fund is a separate accounting entity with a self-balancing set of accounts An account
group, on the other hand, is a financial reporting device designed to provide accountability
for certain assets and liabilities that are not recorded in the funds because they do not directly
affect net expendable available financial resources. The following is a description of the
various funds and account groups:
GOVERNMENTAL FUND TYPES
General Fund — The General Fund is used to account for all financial
transactions not properly includable in other funds. The principal source of
revenue of the General Fund are property taxes, sales and use taxes, franchise
fees, permit fees, and fines and forfeitures. Expenditures are for general
government, finance, public safety, public works, park maintenance and
recreation, municipal court, planning and zoning, and engineering.
Special Revenue Funds—The Special Revenue Funds are used to account for all
financial transactions for the Regional Detention, Hotel/Motel Tax, Police,
Federal Police, Community Service Funds, and special grant revenue where the
- funds are for specific uses.
Debt Service Fund—The Debt Service Fund is used to account for the payment
of interest and principal on all general obligation debts of the City The primary
source of revenue for debt service is local property taxes.
Capital Projects Funds—The Capital Projects Funds are used to account for the
proceeds from the sale of general obligation bonds and certificates of obligation
and expenditures of these proceeds for the acquisition of fixed assets as
designated in each bond issue.
PROPRIETARY FUND TYPE
Enterprise Fund— The Enterprise Fund is used to account for those operations
that are financed and operated in a manner similar to private business or where the
Council has decided that the determination of revenue earned, costs incurred,
and/or net income is necessary for management accountability The Enterpnse
fund is used to account for the City's water and sewer service operations.
(continued)
14
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
Fund Accounting(Continued)
ACCOUNT GROUPS
General Fixed Assets Account Group — General fixed assets are not capitalized
in the funds used to acquire or construct them. Instead, capital acquisition and
construction are reflected as expenditures in governmental funds, and the related
assets are reported in the General Fixed Assets Account Group All purchased
fixed assets are valued at cost. Donated fixed assets are valued at their estimated
fair market value on the date received.
The costs of normal maintenance and repairs that do not add to the value of the
asset, or materially extend asset lives, are not capitalized. Improvements to fixed
assets are capitalized. Assets in the General Fixed Assets Account Group are not
depreciated. Interest is not capitalized on general fixed assets acquired through
the issuance of tax-exempt debt. Public domain (infrastructure) general fixed
assets, consisting of roads, bridges, curbs and gutters, streets, and drainage
systems, are capitalized.
General Lone-term Debt Account Group—This account group is used to account
for the City's long-term liabilities, which include general obligation bonds,
certificates of obligation and obligations under capital leases due at varying dates
through 2022, and the long-term liability for employees' accrued compensated
absences.
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds and discretely presented component units are
accounted for using a current financial resources measurement focus. As such, only current
assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (revenue and other financing sources)
and decreases(expenditures)in net current assets.
The proprietary fund type is accounted for on a flow of economic resources measurement
focus. With this measurement focus,all assets and all liabilities associated with the operation
of this fund are included on the balance sheet. Fund equity (net total assets) is segregated
into contributed capital, if applicable, and retained earnings components. Proprietary fund
type operating statements present increases (revenue) and decreases (expenses) in net total
assets.
(continued)
15
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contmued)
Basis of Accounting(Continued)
The modified accrual basis of accounting is used by the government fund types. Under the
modified accrual basis of accounting, revenue is recognized when susceptible to accrual
(when it becomes both measurable and available.) "Measurable" means the amount of the
transaction can be determined and "available" means collectible within the current period or
soon enough thereafter to be used to pay habihties of the current period. The City considers
the majority of its major revenue as available when collected. Expenditures are recorded
when the related fund liability is incurred. Principal and interest on general long-term debt
are recorded as liabilities when due.
Those revenue susceptible to accrual under the modified accrual basis are property taxes and
other taxes (primarily sales taxes), franchise fees, intergovernmental revenue, and interest
revenue. Licenses and permits and fines and forfeitures revenue are not susceptible to
accrual because generally they are not measurable until received in cash.
The City recognized deferred revenue on its balance sheet. Deferred revenue arises when
potential revenue does not meet both the "measurable" and "available" criteria for
recognition in the current period.
The accounts of the proprietary fund type are mamtained, and the financial statements have
been prepared on the accrual basis of accounting. Under this basis, revenue is recognized
when it is earned and expenses are recognized when they are incurred. The proprietary fund
type follows generally accepted accounting principles prescribed by the Governmental
Accounting Standards Board (the GASB) and all Financial Accounting Standards Board's
standards issued prior to November 30, 1989 Subsequent to this date, the City accounts for
its proprietary fund type as prescribed by the GASB
Budgets
Annual budgets are adopted for the General and Debt Service Funds. The City does not
legally adopt an annual budget for the Special Revenue and Capital Projects Funds. The City
adopts project budgets for the Capital Projects and Special Revenue Funds,which are revised
annually
These budgets are created by ordinance and include all sources and uses of funds as approved
by Council. All annual budgets are prepared on a basis consistent with generally accepted
accounting principles (GAAP)
(continued)
16
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets(Contmued)
Encumbrance accounting is utilized in all governmental fund types. Encumbrances for
materials, other goods, and purchased services are documented by purchase orders or
contracts. Encumbrances outstanding at year-end do not constitute expenditures or liabilities.
The City generally honors these commitments, and it has been the City's practice to increase
the subsequent year's appropnations to complete these transactions. At year-end, the City
reserved a portion of fund balance for outstanding encumbrances of$234,010 in the General
Fund.
Cash and Temporary Investments
Cash and temporary investments consist of amounts in an interest-bearing time deposit
account, petty cash funds, and TexPool. TexPool is an external investment pool established
by interlocal contract under state law Investments are stated at fair value based on quoted
market prices at September 30, 2002. The net increase or decrease in the fair value of
investments is recorded as investment earnings. Investments are generally held to maturity
The City pools cash resources of its various funds to facilitate the management of cash. Cash
applicable to a particular fund is readily identifiable. The balance in the pooled cash
accounts is available to meet current operating requirements. Cash in excess of current
requirements is invested in various interest-bearing securities and disclosed as part of the
City's investments. The City pools excess cash of the various individual funds to purchase
investments. These pooled investments are reported in the combined balance sheet as
investments in each fund based on each fund's share of the pooled investments. Interest
income is allocated to each respective individual fund monthly based on its respective share
of pooled in vestments.
Receivables
All trade receivables are shown net of an allowance for uncollectibles.
Property taxes are recorded as revenue when levied for the current year and due, payable and
collected in the current year Uncollected amounts at year-end are reported as deferred
revenue. Property taxes collected within 60 days subsequent to September 30, 2002, were
not considered material.
Interfund Receivables and Payables
During the course of operations, transactions occurred between individual funds for specified
purposes. These receivables and payables are classified as "due from other funds" or"due to
other funds" on the combined balance sheet.
(continued)
17
_ I
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use of 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 the financial statements and the reported amounts of revenue, expenditures and expenses
during the reporting period. Actual results could differ from those estimates.
Inventory,which consists of gasoline and auto parts for use in the City's vehicles, is stated at
cost (first-in, first-out method) Expenditures are recognized as the fuel and auto parts are
used.
Restricted Assets
Certain proceeds of Enterprise Fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the combined balance sheet because
their use is limited by applicable bond covenants.
Compensated Absences
Compensated absences, which include unpaid vacation, sick and other employee benefit
amounts, are accumulated during employment. Amounts accumulated are paid to employees
upon separation from City service. Under the modified accrual basis of accounting, such are
recorded in the General Long-term Debt Account Group net of amounts expected to be
liquidated with expendable available financial resources at the end of the fiscal year, which
are recorded as expenditures of the General Fund. Compensated absences are accrued when
incurred in the proprietary funds and recorded as a fund liability
Fund Equity
Contributed capital is recorded in proprietary funds that have received capital grants or
contributions from developers, customers, or other funds. Reserves represent those portions
of fund equity not available for expenditure or legally segregated for a specific future use.
Designations of fund balance represent tentative management plans that are subject to
change.
Cash and Cash Equivalents
For the purpose of the statement of cash flows, the proprietary fund type and component unit
consider all investments with original maturities of three months or less from the date of
acquisition to be cash equivalents.
(continued)
18
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Total Columns on Combined Statements
Total columns on the general purpose financial statements are captioned as "memorandum
only" because they do not represent consolidated financial information and are presented
only to facilitate financial position, results of operations or cash flows in accordance with
generally accepted accounting principles. Interfund eliminations have not been made in the
aggregation of this data.
Comparative Data/Reclassifications
Comparative total data for the prior year have been presented in selected sections of the
accompanying financial statements in order to provide an understanding of the changes in the
government's financial position and operations. Also, certain amounts presented in the prior
year data have been reclassified in order to be consistent with the current year's presentation.
2. BUDGETARY COMPLIANCE
The City Manager, on or before the 10th day of July of each year, shall submit to Council a
proposed budget. The Council shall review the proposed budget and revise as deemed
appropriate prior to circulation for public hearing.
After the public hearing, the Council may adopt the budget with or without amendment. In
amending the budget, Council may add or increase programs or amounts and may delete or
decrease any amount, except expenditures required by law or for debt or for estimated cash
deficits, provided no amendments to the budget shall increase the authorized expenditures to an
amount greater than the total of estimated mcome plus funds available from prior years.
The Council shall adopt the budget by the 15th of September of each year Adoption of the
budget shall constitute appropriation of the amounts specified therein as expenditures and shall
constitute a levy of the property tax therein proposed.
Every appropriation lapses at the close of the fiscal year to the extent it has not been expended.
Any encumbered appropriation lapses at year-end, but is generally reappropriated as part of the
' subsequent year's budget. Expenditures may not legally exceed appropriations at the fund level.
At any time during the fiscal year, the City Manager may request Council to transfer by
ordinance any unencumbered appropriation balance between funds.
No significant supplemental appropriations were necessary during the year
19
3. DEPOSITS (CASH) AND INVESTMENTS'
The City's cash and investments are classified as cash and cash equivalents, investments, and
restricted cash and investments. The cash and cash equivalents include cash on hand, deposits
with financial institutions and other investments which have maturities at purchase date of less
than three months. The restricted cash includes cash on deposit with financial institutions.
The Council has adopted a written investment policy regarding the investment of its funds as
defined by the Public Funds Investment Act (Chapter 2256 Texas Government Code). The
investments of the City are in compliance with the Council's investment policies. It is the City's
policy to restrict its investments to direct obligations of the U S Government, commercial
paper, fully collateralized certificates of deposit and other interest-bearing time and demand
deposits, and other instruments and investments in pubhc funds investment pools such as the
Texas Local Government Investment Pool(TexPool) State law provides that collateral pledged
as security for bank deposits must have a market value of not less than the uninsured amount of
the deposits and must consist of 1) obligations of the. United States of its agencies and
instrumentalities; 2) direct obligations of the State of Texas or its agencies; 3) other obligations,
the principal and interest on which are unconditionally guaranteed or insured by the State of
Texas; and/or 4) obligations of states, agencies, counties, cities, and other political subdivisions
of any state having been rated as to investment quality by a nationally recognized investment
rating firm and having received a rating of not less than A or its equivalent.
At year-end, the City's carrying amount of deposits was $27,904,793 and the bank balance was
$28,952,694 Of the bank balance, $300;000 was covered by federal depository insurance or by
collateral held by the City's agent in the City's name. Of the remaining balance, $28,652,694
was collateralized with securities held by the pledging financial institution's trust department or
} agent in the City's name.
Investments are categorized into these three categories of credit risk:
1 Insured or registered, or securities held by the City or its agent in the government's
name.
2. Uninsured and unregistered, with securities held by the counterparty's trust
department or agent in the City's name.
3 Uninsured and unregistered, with securities held by the counterparty; or by its trust
department or agent,but not in the City's name.
Category Fair
1 2 3 Uncategorized Value
U.S.Government securities $ 10,370,865 $ - $ - $ - $ 10,370,865
TexPool - - - 35,571,048 35,571 048
$ 10,370,865 $ $ $ 35,571,048 $ 45,941,913
(continued)
20
3. DEPOSITS (CASH) AND INVESTMENTS (Continued)
The deposits m TexPool are not evidenced by securities that exist m physical or book entry form
and, accordingly, are not categorized by risk. However,the nature of these funds requires that they
be used to purchase investments authorized by the Public Funds Act. The pnmary objective of
these investment pools is to provide a safe environment for the placement of public funds in short-
term, fully collateralized investments.
The State Comptroller of Public Accounts exercises oversight responsibility over TexPool, the
Texas Local Government Investment Pool. Oversight includes the ability to significantly influence
operations, designation of management and accountability for fiscal matters. Additionally, the
State Comptroller has established an advisory board composed of both participants in TexPool and
other persons who do not have a business relationship with TexPool. The Advisory Board
members review the investment policy and management fee structure. Finally, TexPool is rated
AAAm by Standard & Poors, as well as the office of the Comptroller of Public Accounts for
review
TexPool operates m a manner consistent with the SEC's Rule 2a7 of the Investment Company Act
of 1940 Its amortized cost rather than market value to report net assets to compute share prices.
Accordingly,the fair value of the position m TexPool is the same as the value of TexPool shares.
Fair value of investments are based on quoted market prices in accordance with GASB Statement
No. 31,Accounting and Financial Reporting for Certain Investments and for External Investment
Pools. The amount of increase or decrease in the fair value of investments during the year ended
September 30, 2002,was not significant.
4. PROPERTY TAXES
Property taxes for each year are required to be levied by September 15 and are due upon receipt
of the City's tax bill and become delinquent on February 1 of the following year On January 1
of each year, a tax lien is attached to the property to secure the payment of all taxes, penalties,
and interest. The lien exists in the favor of the State and each taxing unit. Appraised values are
established by the Central Appraisal District (CAD) of Brazoria County, Texas, through
procedures established by the Texas Legislature. The Pearland Independent School District bills
and collects the City's property taxes.
A penalty of 7% is added to dehnquent taxes on February 1 and increases 2% each month through
September An additional penalty of 15% is added in July for attorney costs. There are no
discounts allowed in taxes.
The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City
Charter,to levy property taxes up to $2.50 per$100 of assessed valuation for general governmental
services. With the $2.50 maximum levy, there is no legal limit upon the amount of property taxes,
which can be levied for debt service. The property tax rates to finance general governmental
services and debt service for the 2001-2002 tax year were $.4300 and $.2560, respectively, per
$100 of assessed valuation. The 2001 assessed value and total tax levy as adjusted through
September 30, 2002,were$1,877,520,613 and$1,524,504,879,respectively
(continued)
21
4. PROPERTY TAXES (Continued)
The following is an analysis of the September 30, 2002, delinquent tax balances in the General
and Debt Service Funds, by year of levy
Year Debt
of Levy General Service Total
2001 $ 227,518 $ 135,452 $ 362,970
2000 83,365 37,526 120,891
1999 45,707 25,554 71,261
1998 22,792 12,743 35,535
1997 14,509 8,111 22,620
1996 8,725 4,878 13,603
1995 8,020 4,484 12,504
1994 11,078 6,614 17,692
1993 8,584 5,110 13,694
1992 2,644 1,574 4,218
1991 1,807 1,076 2,883
1990 and prior 13,771 8,199 21,970
$ 448,520 $ 251,321 $ 699,841
The City has enacted an ordmance providing for the exemption of$25,000 of the assessed value of
residential homesteads of persons 65 years of age or older from property taxes. This is provided by
Section 1-b(a) of Article 8 of the Constitution of Texas. Additionally, the market value of
agricultural land is reduced to agricultural value for purposes of the City's tax levy calculation.
5. INTERFUND RECEIVABLES AND PAYABLES
Due From Due To
General Fund
Street Assessments $ 81,173 $ -
Grant Fund 71,334 -
Enterprise Fund 459,866 -
612,373 -
Special Revenue Fund
Grant Fund - 71,334
Capital Projects Fund
Street Assessments - 81,173
Enterprise Fund
General Fund - 459,866
Total $ 612,373 $ 612,373
22
6. CHANGES IN FIXED ASSETS
The following is a summary of changes in general fixed assets for the year ended September 30,
2002.
Balance Balance
September 30, September 30,
2001 Additions Deletions 2002
Land $ 1,607,086 $ 277,319 $ - $ 1,884,405
Buildings 9,888,234 24,359 - 9,912,593
Construction in progress 5,961,546 8,712,381 678,568 13,995,359
Improvements other than buildings 25,623,297 1,071,348 - 26,694,645
Machinery and equipment 11,559,002 1,433,396 - 12,992,398
Totals $ 54,639,165 $ 11,518,803 $ 678,568 $ 65,479,400
The following is a summary in the Enterprise Fund fixed assets for the year ended September 30,
2002.
Balance Balance
September 30, September 30,
2001 Additions Deletions 2002
Land $ 189,070 $ - $ - $ 189,070
Equipment 2,586,951 717,997 - 3,304,948
Buildings and improvements 32,836,061 10,471,528 - 43,307,589
Construction in progress 11,423,322 12,628,206 9,625,698 14,425,830
47,035,404 23,817,731 9,625,698 61,227,437
Less allowance for depreciation ( 11,288,343) ( 1,373,442) - ( 12,661,785)
Totals $ 35,747,061 $ 22,444,289 $ 9,625,698 $ 48,565,652
Depreciation on Enterprise Fund fixed assets is recorded usmg the straight-hne method over the
following estimated useful lives of the assets:
Estimated
Description Useful Lives
Equipment 5 to 10 years
Buildings and infrastructure 3 to 50 years
23
7. LONG-TERM DEBT
General Lone-term Debt
The following is a summary of general long-term debt transactions for the year ended September
30, 2002.
Balance Balance
September 30, September 30,
2001 Additions Deletions 2002
Certificates of obligation $ 15,680,000 $ 36,650,000 $ 745,000 $ 51,585,000
General obligation bonds 12,610,000 1,900,000 1,175,000 13,335,000
Capital leases 74,724 - 74,724 -
Compensated absences 1,488,646 308,156 - 1,796,802
Totals $ 29,853,370 $ 38,858,156 $ 1,994,724 $ 66,716,802
Certificates of Obligation and General Obligation Bonds:
Certificates of obligation and general obligation bonds at September 30, 2002, are comprised
of the following individual issues:
Net Principal
Effective Payment Interest
Interest Interest Date/ Payment Debt
Issue Rates Rate Maturity Dates Outstanding
$5,000,000 Public Works 5 00%to March 1/
Series 1995 7 00% 03/01/14 September 1 $ 4,085,000
$25,000,000 Certificate of 5.9%to March 1/
Obligation, Series 2002 7.9% 03/01/27 September 1 25,000,000
$6,250,000 Tax and Revenue 5.25%to March 1/
Series 1997 7.25% 03/01/16 September 1 5,850,000
$5,500,000 Tax and Revenue 5.20%to March 1/
Series 1997-A 7.20% 03/01/18 September 1 5,200,000
$11,650,000 Certificate of 4.9%to March 1/
Obligation, Series 2001 5 1% 03/01/21 September 1 11,450,000
$10,830,000 Refunding Bonds 7 10%to March 1/
Series 2000 7.35% 4.6480% 03/01/09 September 1 10,690,000
$2,000,000 Street Improvement 6.00%to March 1/
Bonds, Series 1992 8.00% 4 7613% 03/01/09 September 1 130,000
$1,900,000 TIRZ Refunding March 1/
Bond, Series 2001 3.9% 4 7613% 03/01/10 September 1 1,760,000
$6,510,000 Refunding Bonds 2.65%to March 1/
Series 1993 4 63% 4.3623% 03/01/03 September 1 755,000
Total General Obligation Bonds $ 64,920,000
1
(continued)
24
7. LONG-TERM DEBT (Continued)
General Long-term Debt(Continued)
The annual requirements to amortize all certificates of obligation and general obligation
bonds outstanding as of September 30, 2002, are as follows.
Year Ending
September 30, Total Interest Principal
2003 $ 5,869,145 $ 3,829,145 $ 2,040,000
2004 5,882,410 3,192,410 2,690,000
2005 6,073,162 3,038,162 3,035,000
2006 6,056,922 2,866,922 3,190,000
2007-2027 78,850,684 24,885,684 53,965,000
$ 102,732,323 $ 37,812,323 $ 64,920,000
There is $2,229,529 available in the Debt Service Fund to service the above obligations and
the City's obligations under capital leases.
Compensated Absences
Employees earn vacation leave at the rate of 15 days per year from one to 15 years, 20 days
per year for service of 16 to 19 years, and 25 days per year for service of 20 years or more.
Employees are required to take their earned vacation. Employees who are unable to use their
vacation, for various reasons, may, with the City Manager's approval, carry over 50 percent
of the unused portion of the vacation, or received compensation for a maximum of 40 hours.
City employees receive 11 paid hohdays per year Employees may be paid or may elect to
receive compensatory time off for the holiday Overtime is earned at one and one-half times
the regular rate of pay Employees may be paid or receive compensatory time. The
maximum accrual for overtime is 160 hours, except for employees involved in public safety,
who can accrue up to 320 hours.
The liability for compensated absences at September 30, 2002, is comprised of the following
components:
Beginning Ending
Balance Additions Retirement Balance
Vacation $ 169,631 $ 44,258 $ - $ 213,889
Sick 1,093,044 228,229 - 1,321,273
Compensatory time 225,971 35,669 - 261,640
Totals $ 1,488,646 $ 308,156 $ - $ 1,796,802
(continued)
25
� a
7. LONG-TERM DEBT (Continued)
Enterprise Fund Debt
The following is a summary of Enterprise Fund long-term debt transactions of the City for
the year ended September 30, 2002.
Balance Balance
October 1, September 30,
2001 Additions Retirement 2002
Certificates of obligation $ 17,000,000 $ - $ 75,000 $ 16,925,000
Revenue bonds 16,140,000 10,000,000 570,000 25,570,000
Totals $ 33,140,000 $ 10,000,000 $ 645,000 $ 42,495,000
Revenue Bonds and Certificates of Obligation
Principal
Payment Interest
Date/ Payment Debt
Issue Rates Maturity Dates Outstanding
$8,870,000 Water and Sewer 2.9%to March 1/
Revenue Bonds, Series 1996B 5.20% 09/01/16 September 1 $ 7,880,000
$8,000,000 Water and Sewer March 1/
Revenue Bonds, Series 1999 4.90% 09/01/20 September 1 7,690,000
$10,000,000 Water and Sewer March 1/
Revenue Bonds, Series 2001 5.5% 09/01/23 September 1 10,000,000
Total Water and Sewer
Revenue Bonds 25,570,000
$17,100,000 Certificates of 2.6%to March 1/
Obligation, Series 1998 3 8% 03/01/18 September 1 16,925,000
Total Water and Sewer
Certificates of Obligation 16,925,000
r
Total $ 42,495,000
(continued)
26
CITY OF PEARLAND, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30,2002
PENSION DATA-TEXAS MUNICIPAL RETIREMENT SYSTEM
The City's annual covered payroll and annual pension cost are actuarially valued on a calendar year basis. Because
the City makes all of the annually required contributions, no net pension obligation exists. The information
presented below was determined as part of the actuarial valuation, as of December 31, for each period presented.
- Schedule of Funding Progress
Actuarial Actuarial Actuarial Annual Percentage
Valuation Value Plan Accrued Percentage Unfunded Covered of Covered
Date Assets Liability Funded AAL Payroll Payroll
12/31/97 $ 8,759,905 $ 11,129,222 78.7% $ 2,369,317 $ 6,820,450 34 7%
12/31/98 9,615,238 12,280,029 78.3% 2,664,791 6,787,171 39.3%
12/31/99 10,976,420 14,117,504 77.8% 3,141,084 7,189,179 43 7%
12/31/00 11,842,529 14,951,928 79.2% 3,109,399 8,005,001 38.8%
12/31/01 14,000,841 17,152,477 81 6% 3,151,636 9,161,949 34 4%
35
,
THIS PAGE LEFT BLANK INTENTIONALLY
^ I
14r
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP FINANCIAL
STATEMENTS AND SCHEDULES
0181-4 VI31 DIV°
GO
GENERAL FUND
The General Fund is used to account for all financial transactions not properly includable in other
funds.
A-1
CITY OF PEARLAND, TEXAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2002 AND 2001
2002 2001
ASSETS
Current Assets:
Cash and cash equivalents $ 253,932 $ 507,455
Investments 4,804,725 6,506,542
Receivables:
Property taxes 462,989 364,222
Sales and other taxes receivable 1,415,722 1,937,737
Accounts receivable 588,692 230,065
Less: allowance for estimated uncollectibles ( 65,590) ( 65,590)
Accrued interest 1,626 -
Due from other funds 612,373 251,721
Inventories 51,915 51,915
Total Assets $ 8,126,384 $ 9,784,067
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 1,692,549 $ 565,968
Accrued liabilities 2,266 24,032
Due to other funds - 1,486,763
Accrued compensated absences 690,584 551,048
Deferred revenue 716,039 592,314
Total Liabilities 3,101,438 3,220,125
Fund Balance:
Reserved for encumbrances 234,010 471,659
Reserved for inventories 51,915 -
Unreserved:
Undesignated 4,739,021 6,092,283
Total Fund Balance 5,024,946 6,563,942
Total Liabilities and Fund Balance $ 8,126,384 $ 9,784,067
36
A-2
CITY OF PEARLAND, TEXAS
GENERAL.FUND
STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUN BALANCE-BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30, 2001)
2002 2001
Variance
Favorable
Budget Actual (Unfavorable) Actual
REVENUE
Property taxes and penalties $ 8,206,442 $ 8,054,173 $( 152,269) $ 6,784,591
Other taxes 4,712,800 5,044,972 332,172 4,810,098
Licenses and permits 1,637,000 2,256,638 619,638 1,896,728
Fines and forfeitures 885,700 845,322 ( 40,378) 856,641
Franchise fees 2,135,011 2,453,829 318,818 2,303,730
Charges for services 3,586,383 3,651,825 65,442 3,202,767
Interest revenue 483,000 155,628 ( 327,372) 391,998
Other 395,625 733,303 337,678 456,714
Total Revenue 22,041,961 23,195,690 1,153,729 20,703,267
EXPENDITURES
Current:
General government 6,369,476 5,052,056 1,317,420 4,217,744
Public safety 7,126,729 7,411,992 ( 285,263) 6,692,138
Public works 6,595,637 7,603,804 ( 1,008,167) 5,974,667
Community services _ 2,138,983 2,271,052 ( 132,069) 2,043,620
Total Expenditures 22,230,825 22,338,904 ( 108,079) 18,928,169
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENDITURES ( 188,864) 856,786 1,045,650 1,775,098
OTHER FINANCING SOURCES(USES)
Transfers in 810,000 911,552 101,552 ( 1,617,285)
Transfers out ( 518,000) ( 3,224,732) ( 2,706,732) -
Total Other Financing Sources(Uses) 292,000 ( 2,313,180) ( 2,605,180) ( 1,617,285)
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER USES 103,136 ( 1,456,394) ( 1,559,530) 157,813
FUND BALANCE,BEGINNING OF YEAR 6,563,942 6,563,942 - 5,205,209
PRIOR PERIOD ADJUSTMENT - ( 82,602) ( 82,602) 1,200,920
FUND BALANCE,END OF YEAR $ 6,667,078 $ 5,024,946 $( 1,642,132) $ 6,563,942
37
A-3
CITYOF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
2002 2001
Variance
Favorable
Budget Actual (Unfavorable Actual
GENERAL GOVERNMENT
City Council:
Personnel $ 22,024 $ 20,464 $ 1,560 $ 20,486
Commodities 2,000 1,711 289 2,447
Contractual services 45,625 37,788 7,837 61,060
Administrative 5,000 - 5,000 75
Total City Council 74,649 59,963 14,686 84,068
City Manager
Personnel 476,484 483,544 ( 7,060) 510,995
Commodities 3,400 3,368 32 10,125
Contractual services 2,080 778 1,302 2,455
Administrative 41,050 46,346 ( 5,296) 46,085
Capital outlay 2,500 5,790 ( 3,290) 14,335
Total City Manager 525,514 539,826 ( 14,312) 583,995
City Secretary-
Personnel 56,535 118,663 ( 62,128) 101,498
Commodities 4,552 4,546 6 5,009
Contractual services 1,750 701 1,049 1,256
Administrative 42,822 49,080 ( 6,258) 25,212
Capital outlay - - - 2,438
Total City Secretary 105,659 172,990 ( 67,331) 135,413
Finance:
Personnel 434,200 508,218 ( 74,018) 485,172
Conunodities 12,500 10,992 1,508 12,197
Contractual services 28,900 2,780 26,120 6,006
Administrative 37,745 .34,253 3,492 41,403
Capital outlay 6,500 6,953 ( 453) 4,744
Total Finance 519,845 563,196 ( 43,351) 549,522
(continued)
38
A-3
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
- (Continued)
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
2002 2001
t Variance
Favorable
Budget Actual (Unfavorable Actual
GENERAL GOVERNMENT(Continued)
Tax:
Contractual services $ 96,700 $ 111,275 $( 14,575) $ 113,475
Total Tax 96,700 111,275 ( 14,575) 113,475
Human Resources:
Personnel 341,414 324,765 16,649 295,314
Commodities 34,600 30,270 4,330 11,567
Contractual services 2,700 2,631 69 1,376
Li Administrative 56,860 75,664 ( 18,804) 108,260
Capital outlay 1,800 1,384 416 3,145
Total Human Resources 437,374 434,714 2,660 419,662
Legal:
Personnel 207,538 236,181 ( 28,643) 195,374
Commodities 7,500 6,968 532 2,823
Contractual services 1,500 717 783 1,804
`- Administrative 69,700 63,664 6,036 73,970
Sundry charges 5,000 4,462 538 5,000
Capital outlay - 1,560 ( 1,560)
Total Legal 291,238 313,552 ( 22,314) 278,971
Municipal Court:
Personnel 214,678 229,455 ( 14,777) 203,999
Commodities 3,530 3,934 ( 404) 2,821
Contractual services 850 184 666 1,059
Administrative 14,710 13,333 1,377 15,232
Other services 2,882 2,579 303 -
c. Total Municipal Court 236,650 249,485 ( 12,835) 223,111
(continued)
39
A-3
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
(Continued)
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
2002 2001
Variance
Favorable
Budget Actual (Unfavorable Actual
GENERAL GOVERNMENT(Continued)
Custodial Services:
Personnel $ 149,150 $ 169,101 $( 19,951) $ 152,073
Commodities 32,362 23,235 .9,127 25,690
Contractual services 153,990 404,413 ( 250,423) 1,516
Administrative 222,960 135,603 87,357 179
Total Custodial Services 558,462 732,352 ( 173,890) 179,458
City Hall:
Commodities 17,800 13,417 4,383 15,705
Contractual services 101,500 103,791 ( 2,291) 164,536
Other services 238,000 288,432 ( 50,432) 295,778
Capital outlay 120,000 55,270 64,730 161,659
Total City Hall 477,300 460,910 16,390 637,678
Public Affairs/Grants:
Personnel 182,789 161,760 21,029 181,118
Commodities 93,980 91,783 2,197 58,574
Administrative 58,710 39,619 19,091 31,471 _
Capital outlay 3,000 2,203 797 -
Total Public Affairs/Grants 338,479 295,365 43,114 271,163
Other
Personnel 408,880 318,409 90,471 36,000
Commodities 30,030. 28,950 1,080 23,739
Contractual services 76,715 86,230 ( 9,515) 51,676
Miscellaneous services 599,650 545,438 54,212 540,587
Sundry charges 2,139,825 139,401 2,000,424 89,225
Total Other 3,255,100 1,118,428 2,136,672 741,227
Total General Government 6,916,970 5,052,056 1,864,914 4,217,743
(continued)
40
A-3
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
(Continued)
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
it-
t
2002 2001
Variance
Favorable
Budget Actual (Unfavorable Actual
i
PUBLIC SAFETY
Police:
Personnel $ 5,004,740 $ 5,168,536 $( 163,796) $ 4,422,774
Commodities 99,514 100,781 ( 1,267) 83,416
Contractual services 275,475 353,395 ( 77,920) 328,493
Administrative 233,761 213,029 20,732 165,366
Capital outlay 46,816 71,495 ( 24,679) 414,074
Total Police 5,660,306 5,907,236 ( 246,930) 5,414,123
Fire:
Commodities 34,990 43,325 ( , 8,335) 45,745
Contractual services 35,000 82,129 ( 47,129) 26,035
1 Administrative 57,975 61,121 ( 3,146) 41,260
Capital outlay 6,000 2,808 3,192 -
Total Fire 133,965 189,383 ( 55,418) 113,040
I` Fire Marshal:
Personnel 153,233 158,238 ( 5,005) 121,864
i Commodities 11,200 6,916 4,284 6,594
Contractual services 6,350 6,761 ( 411) 5,927
Administrative 39,400 25,859 13,541 17,880
Capital outlay 1,700 1,560 140 24,490
Total Fire Marshal 211,883 199,334 12,549 176,755
_ Animal Shelter
( Personnel 203,684 193,350 10,334 161,012
Commodities 25,697 21,635 4,062 19,566
Contractual services 8,700 7,556 1,144 13,678
Administrative 35,950 22,322 13,628 16,798
Capital outlay 2,450 2,616 ( 166) 17,160
Total Animal Shelter 276,481 247,479 29,002 228,214
(continued)
41
A-3
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
(Continued)
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
2002 2001
Variance
Favorable
Budget Actual (Unfavorable Actual
PUBLIC SAFETY(Continued)
Emergency Medical Services: -
Personnel $ 574,654 $ 669,745 $( 95,091) $ 468,778
Commodities 92,000 86,106 5,894 70,621
Contractual services 78,020 44,927 33,093 63,798
Other services 99,420 67,782 31,638 60,151
Capital outlay - - - 96,659
Total Emergency Medical Services 844,094 868,560 ( 24,466) 760,007
Total Public Safety 7,126,729 7,411,992 ( 285,263) 6,692,139
PUBLIC WORKS
Administration:
Personnel 124,472 147,868 ( 23,396) 125;047
Commodities 10,200 11,391 ( 1,191) 9,896
Contractual services 4,550 5,267 ( 717) 2,544
Other services 5,270 4,658 612 6,157
Total Administration 144,492 169,184 ( 24,692) 143,644
Engineering:
Personnel 617,408 698,414 ( 81,006) 545,720
Commodities 9,740 17,879 ( 8,139) 8,372
Contractual services 10,650 15,288 ( 4,638) 9,454
Other services 120,050 23,425 96,625 39,255
Capital outlay 6,800 86,995 ( -80,195) 28,685
Total Engineering 764,648 842,001 ( 77,353) 631,486
(continued)
42
I
1
1 A-3
1 CITY OF PEARLAND,TEXAS
_I GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
' (Continued)
YEAR ENDED SEPTEMBER 30,2002
' (With Comparative Actual Amounts for the Year Ended September 30,2001)
1 2002 2001
Variance
' Favorable
Budget Actual (Unfavorable Actual
' PUBLIC WORKS(Continued)
Community Development:
1 Personnel $ 506,505 $ 535,154 $( 28,649) $ 363,338
' Commodities 20,300 29,132 ( 8,832) 18,032
- Contractual services 18,400 12,126 6,274 16,879
0 Administrative 58,556 56,821 1,735 51,759
1 Capital outlay 59,166 52,873 6,293 6,414
` Total Community Development 662,927 686,106 ( 23,179) 456,422
' Community Services:
' Commodities 12,000 12,017 ( 17) 13,067
Total Community Services 12,000 12,017 ( 17) 13,067
0
' Fleet Maintenance:
Personnel 210,140 239,838 ( 29,698) 215,489
Commodities 3,480 4,664 ( 1,184) 2,161
-' Contractual services 6,500 3,710 2,790 5,757
Other services 2,500 425 2,075 1,804
1 Capital outlay 7,660 8,000 ( 340) 1,290
' Total Fleet Maintenance 230,280 256,637 ( 26,357) 226,501
0 Service Center
' Commodities 7,885 17,406 ( 9,521) 63,398
I Contractual services 52,950 70,584 ( 17,634) 38,076
Other services 61,250 19,942 41,308 34,144
1 Total Service Center 122,085 107,932 14,153 135,618
1
1
1
0
' 1
--.1 (continued)
1
1 43
1
1
1
1
A-3
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
(Continued)
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
2002 2001
Variance
Favorable
Budget Actual (Unfavorable Actual f
PUBLIC WORKS(Continued)
Street and Drainage:
Personnel $ 533,408 $ 630,078, $( 96,670) $ 472,259
Commodities 246,581 283,253 ( 36,672) 201,038
Contractual services 651,326 652,474 ( 1,148) 430,972
Other services 429,400 456,931 ( 27,531) 608,249
Capital outlay 154,290 210,240 ( 55,950) 168,245
Total Street and Drainage 2,015,005 2,232,976 ( 217,971) 1,880,763
Sanitation:
Contractual services 29,200 14,071 15,129 17,509
Special services 2,555,000 3,216,874 ( 661,874) 2,418,981
Franchise fees 60,000 66,006 ( 6,006) 50,676
Total Sanitation 2,644,200 _ 3,296,951 ( 652,751) 2,487,166
Total Public Works 6,595,637 7,603,804 ( 1,008,167) 5,974,667
COMMUNITY SERVICES
Library.
Commodities 3,358 2,702 656 1,601
Contractual services 600 20,166 ( 19,566) 66,681
Administrative 77,800 59,884 17,916 71,652
Capital outlay - - - 2,735
Total Library 81,758 82,752 ( 994) 142,669
Parks and Recreation-Administration
Personnel 730,178 824,430 ( 94,252) 617,894
Commodities 35,817 36,282 ( 465) 33,069
Contractual services 86,504 105,682 ( 19,178) 174,502
Other services 121,276 127,654 ( 6,378) 115,548
Capital outlay 85,800 80,663 5,137 145,542
Total Parks and Recreation-
Administration 1,059,575 1,174,711 ( 115,136) 1,086,555
(continued)
44
I
,--nl
A-3
I CITY OF PEARLAND,TEXAS
1 GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL
' (Continued)
YEAR ENDED SEPTEMBER 30,2002
' (With Comparative Actual Amounts for the Year Ended September 30,2001)
-' 2002 2001
Variance
Favorable
' Budget Actual (Unfavorable Actual
' COMMUNITY SERVICES(Continued)
Parks and Recreation-Recreation:
Personnel $ 261,613 $ 268,921 $( 7,308) $ 234,729
' Commodities 119,445 114,029 5,416 91,520
Contractual services 5,361 2,562 2,799 3,012
' Other services 61,137 71,424 ( 10,287) 61,586
' Capital outlay 26,213 30,996 ( 4,783) 6,348
Total Parks and Recreation-
/ Recreation 473,769 487,932 ( 14,163) 397,195
' Parks and Recreation-Athletics
Personnel 110,970 58,548 52,422 54,957
' Commodities 103,665 '118,622 ( 14,957) 97,540
Contractual services 13,270 17,781 ( 4,511) 15,682
Other services 6,824 2,435 4,389 26,941
' Capital outlay 60,000 56,543 3,457 -
' Total Parks and Recreation-Athletics 294,729 253,929 40,800 195,120
` Parks and Recreation-Aquatics and
' Special Events:
Personnel 88,737 111,568 ( 22,831) 98,515
Commodities 78,500 112,614 ( 34,114) 76,421
' Contractual services 25,180 17,225 7,955 39,879
Other services 24,035 14,929 9,106 5,755
l Capital outlay 12,700 15,392 ( 2,692) 1,511
Total Parks and Recreation-Aquatics
and Special Events 229,152 271,728 ( 42,576) 222,081
0
Total Community Services 2,138,983 2,271,052 ( 132,069) 2,043,620
Total Expenditures $ 22,778,319 $ 22,338,904 $ 439,415 $ 18,928,169
r
45
I
I
,
i
THIS PAGE LEFT BLANK INTENTIONALLY
►
► SPECIAL REVENUE FUNDS
►
► The Special Revenue Funds are used to account specific revenues that are legally restricted for
-I particular purposes. A description of the individual Special
for Revenue Funds follows:
►
Municipal Court—A fund created to account for municipal court fees collected.
Soccer Donation —A fund created to account for soccer field donations.
I
Regional Detention Fund — A fund created to account for the regional detention
development.
Hotel/Motel—A fund created to account for hotel/motel occupancy tax revenue.
I
Park Donation—A fund created to account for the development of parks.
Park and Recreation Development— A fund created to account for the development of
parks.
' Tree Donations—A fund created to account for tree donations.
4 Tree Trust—A fund created to account for tree trust donations.
4
Sidewalk Fund—A.fund created to account for resources designated for sidewalks.
Police Fund— To account for fmancial resources to be used for the Police Department
drug program.
Federal Police Fund— To account for expenditures related to special federal programs
for the Police Department.
Community Services—To account for expenditures related to community services.
Grant Fund—To account for all grant revenues and expenditures.
FEMA Buyout—A fund created to account for the flood related FEMA projects.
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2002
(With Comparative Totals for September 30,2001)
Park and
Municipal Soccer Regional Hotel/ Park Recreation Tree
Court Donation Detention Motel Tax Donation Department Donation
ASSETS
Cash and cash equivalents $ 48,587 $ 1,837 $ 30,218 $ 279,951 $ 2,997 $ 191,284 $ 1,343
Investments
Accounts receivable - - - - - - -
Due from FEMA - - - - - - -
Due from others funds - - - - - - -
Accrued interest receivable - - - - - - -
Total Assets $ 48,587 $ 1,837 $ 30,218 $ 279,951 $ 2,997 $ 191,284 $ 1,343
LIABILITIES AND FUN BALANCE
Liabilities:
Accounts payable $ - $ - $ - $ - $ - $ 88,900 $ -
Due to other funds - - - - - - -
Deferred revenue grants - - - - - - -
Total Liabilities - - - - - 88,900 -
Fund Balance:
Reserved for encumbrances - - - - - - -
Unreserved.
Designated for subsequent
years'expenditures 48,587 1,837 30,218 279,951 2,997 102,384 1,343
Total Fund Balances 48,587 1,837 30,218 279,951 2,997 102,384 1,343
Total Liabilities
and Fund Balance $ 48,587 $ 1,837 $ 30,218 $ 279,951 $ 2,997 $ 191,284 $ 1,343
46
I
0
0
B-1
0
J
0
0
Totals'
Tree Federal Community FEMA
0 Trust Sidewalk Police Police Services Grants Buyout 2002 2001
0
0
, ' $ 67,738 $ 164,005 $ 39,033 $ 13,321 $ 90,677 $ - $ 199,756 $ 1,130,747 $ 785,023
15,000 15,000 15,000
- - - - - - - - 45,941
I - - - - - 4,834 - 4,834 162,917
' - - - - - - - - 58,664
- - 58 - - 58
$ 67,738 $ 164,005 $ 54,091 $ 13,321 $ 90,677 $ 4,834 $ 199,756 $ 1,150,639 $ 1',067,545
4-
4
1 $ 1,140 $ - $ 275 $ - $ 3,015 $ 27 $ 94,169 $ 187,526 $ 1,066
- - - - - 71,334 - 71,334 192,163
' - - - - - 14,706 - 14,706 13,631
1,140 - 275 - 3,015 86,067 94,169 273,566 206,860
II
I - - - - - - - - -
I
I_ 66,598 164,005 53,816 13,321 87,662 ( 81,233) 105,587 877,073 860,685
66,598 164,005 53,816 13,321 87,662 ( 81,233) 105,587 877,073 860,685
I
$ 67,738 $ 164,005 $ 54,091 $ 13,321 $ 90,677 $ 4,834 $ 199,756 $ 1,150,639 $ 1,067,545
4
4
I
I
I_
I
I 47
I
I
CITY OF PEARLAND, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCES
SEPTEMBER 30,2002
(With Comparative Totals for September 30,2001)
Park and
Municipal Soccer Regional Hotel/ Park Recreation Tree
Court Donation Detention Motel Tax Donation Department Donation
REVENUE
Hotel/motel tax $ - $ - $ - $ 58,269 $ - $ - $ -
Grants - - - - - - -
Municipal court 42,205 - - - - - -
Regional detention - - 20,843 - - - -
Park/tree - - - - 1,248 348,110 -
Community services - - - - - - -
Sidewalk - - - - - - -
Investment earnings 13 2 25 289 14 399 1
Other revenues - - - - - - -
Police drug revenue - - - - - - -
Total Revenue 42,218 2 20,868 58,558 1,262 348,509 1
EXPENDITURES
General government 67,875 - - - - - -
Park equipment - - - - - 595,770 -
Community services - - 5,601 - - - -
Police drug - - - - - - -
1
Total Expenditures 67,875 - 5,601 - - 595,770 -
REVENUE OVER(UNDER)
EXPENDITURES (25,657) 2 15,267 58,558 1,262 (247,261) 1
OTHER FINANCING ,
SOURCES(USES)
Transfers in(out) - - - - - - -
Total Other Financing
Sources(Uses) - - - - - - -
REVENUE AND OTHER
FINANCING SOURCES OVER
(UNDER)EXPENDITURES (25,657) 2 15,267 58,558 1,262 (247,261) 1
FUND BALANCE,BEGINNING
OF YEAR 74,244 1,835 14,951 221,393 1,735 349,645 1,342
FUND BALANCE,END OF YEAR S.48,587 $ 1,837 $ 30,218 $ 279,951 $ 2,997 $ 102,384 $ 1,343
48
1
B-2
0
I
0
0
Totals
Tree Federal Community FEMA
Trust Sidewalk Police Police Services Grants Buyout 2002 2001
$ - $ - $ - $ - $ - $ - $ - $ 58,269 $ 52,473
- - - - - 63,856 8,319,887 8,383,743 333,677
- - - - - - - 42,205 48,114
- - - - - - - 20,843 1,073
77,250 - - - - - - 426,608 254,312
- - - - 62,452 - - 62,452 13,322
- 100,128 - - - - - 100,128 58,971
27 108 648 13 ' 76 34 - 1,649 15,260
- - - - - - 2,000 2,000 63,576
- - 11,482 5,321 - - - 16,803 -
77,277 100,236 12,130 5,334 62,528 63,890 8,321,887 9,114,700 840,778
- - - - - 151,632 10,835,977 11,055,484 17,600
- - - - 39,244 - - 635,014 42,402
--- 20,561 - - - - - - 26,162 576,347
- - 1,329 - - - - 1,329 -
` 20,561 - 1,329 - 39,244 151,632 10,835,977 11,717,989 636,349
56,716 100,236 10,801 5,334 23,284 ( 87,742) ( 2,514,090) ( 2,603,289) 204,429
- - - - - - 2,619,677 2,619,677 52,794
- - - - - - 2,619,677 2,619,677 52,794
' _ 56,716 100,236 10,801 5,334 23,284 ( 87,742) 105,587 16,388 257,223
9,882 63,769 43,015 7,987 64,378 6,509 - 860,685 603,462
$ 66,598 $ 164,005 $ 53,816 $ 13,321 $ 87,662 $( 81,233) $ 105,587 $ _ 877,073 $ 860,685
49
L
GE���BL
T1�1s Y A
DEBT SERVICE FUND
The Debt Service Fund is used to account for property taxes levied for payment of principal and interest
on all general obligation and other debts of the City
c-i
CITY OF PEARLAND, TEXAS
DEBT.SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30,2002 AND 2001
2002 2001
ASSETS
Cash and cash equivalents $ 176,152 $ 1,494,841
Investments 2,053,377 84,578
Receivables:
Property taxes 236,852 186,326
Total Assets $ 2,466,381 $ 1,765,745
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ - $ 34,432
Deferred revenue 236,852 186,326
Total Liabilities 236,852 220,758
Fund Balance:
Unreserved.
Designated for debt service 2,229,529 1,544,987
Total Fund Balance 2,229,529 1,544,987
Total Liabilities and Fund Balance $ 2,466,381 $ 1,765,745
50
C-2
CITY OF PEARLAND, TEXAS
DEBT SERVICE FUND
STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUN BALANCE-BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Actual Amounts for the Year Ended September 30,2001)
2002 2001
Variance
Favorable
Budget Actual (Unfavorable) Actual
REVENUE
Property taxes and penalties $ 4,752,927 $ 4,803,822 $ 50,895 $ 4,048,701
Interest revenue 58,000 45,019 ( 12,981) 90,820
Total Revenue 4,810,927 4,848,841 37,914 4,139,521
EXPENDITURES
Debt service:
f Principal retirement 2,080,000 1,920,000 160,000 1,680,000
Interest and fiscal charges 3,271,465 2,034,658 1,236,807 1,554,951
Other miscellaneous 54,600 157,832 ( 103,232) 40,731
Total Expenditures 5,406,065 4,112,490 1,293,575 3,275,682
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENDITURES ( 595,138) 736,351 1,331,489 863,839
OTHER FINANCING SOURCES(USES)
Proceeds from bond issuance - 1,900,000 1,900,000 -
Payments to bond escrow - ( 1,900,000) ( 1,900,000) -
Transfers(out) - ( 51,809) ( 51,809) -
Total Other Financing Sources(Uses) - ( 51,809) ( 51,809) -
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
_ OVER(UNDER)EXPENDITURES
AND OTHER USES ( 595,138) 684,542 1,279,680 863,839
FUND BALANCE,BEGINNING OF YEAR 1,544,987 1,544,987 - _ 681,148
FUND BALANCE,END OF YEAR $ 949,849 $ 2,229,529 $ 1,279,680 $ 1,544,987
51
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are used to account for all resources used for the acquisition and/or
construction of all buildings, equipment, rights-of-way, street and drainage improvements, and regional
wastewater facilities. The funds used are described below
Street Assessment— City Road 58— A compulsory levy made against certain properties
to defray all or part of the cost of a specific capital improvement or service deemed to
benefit primarily those properties.
Street Assessment—Fite Street— A compulsory levy made against certain properties to
defray all or part of the cost of a specific capital improvement or service deemed to
benefit primarily those properties.
Street Assessment—McHard Road—A compulsory levy made against certain properties
to defray all or part of the cost of a specific capital improvement or service deemed to
benefit primarily those properties.
Street Assessment—Southfork — A compulsory levy made against certain properties to
defray all or part of the cost of a specific capital improvement or service deemed to
benefit primarily those properties.
Street Assessment—Hooks Road—A compulsory levy made against certain properties to
defray all or part of the cost of a specific capital improvement or service deemed to
benefit primarily those properties.
Street Assessment — A compulsory levy made against certain properties to defray all or
part of the cost of a specific capital improvement or service deemed to benefit primarily
those properties.
Capital Project Fund— A fund created to account for financial resources to be used for
the acquisition or construction of major capital facilities (other than those financed by
proprietary funds and trust funds).
Road and Bridge—To account for resources to be used for the City's roads and bridges.
Library—To account for financial resources to be used for the City's library
Capital Improvement 1997 — To account for financial resources to be used for the
facilities projects,transportation projects, dramage project, and watershed projects.
Street Assessment—Broadway — A compulsory levy made against certain properties to
defray all or part of the cost of a specific capital improvement or service deemed to
benefit primarily those properties.
Street Assessment Hufhes/Cullen — A compulsory levy made against certain
properties to defray all or part of the cost of a specific capital improvement or service
deemed to benefit primarily those properties.
Certificate of Obligation 1997A — To account for capital expenditures related to the
issuance of certificates of obligation in August 1997
Certificate of Obligation — 2001 — To account for capital expenditures related to the
issuance of certificates of obligation issued in 2001
Certificate of Obligation —Drainage 2002 —To account for capital expenditures related
to various drainage projects authorized by the issuance of certificates of obligation issued
in 2001
Certificate of Obligation —Mobility 2002—To account for capital expenditures related to
various road projects authorized by the issuance of certificates of obligation issued in
2001
Certificate of Obligation 2001 — Vehicles — To account for capital expenditures of
vehicles related to the issuance of certificates of obligation issued in 2001
CITY OF PEARLAND, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,2002
(With Comparative Totals for September 30,2001)
City Road 58 Fite Street McHard Road Southfork
Street Street Street Street
Assessments Assessments Assessments Assessments
ASSETS
Cash and cash equivalents $ 42,911 $ 25,081 $ 192,022 $ -
Investments - - - 135,919
Accounts receivable - - 171,875 -
Due from FEMA - - -
Accrued interest receivable - - - 1,710
Total Assets $ 42,911 $ 25,081 $ 363,897 $ 137,629
LIABILITIES AND FUN BALANCE
Liabilities:
Accounts payable $ - $ - $ - $ -
Due to other funds - - - -
Deferred revenue - - - -
Total Liabilities - - - -
Fund Balance:
Reserved for encumbrances - - - -
Fund balance 42,911 25,081 363,897 137,629
Total Fund Balances 42,911 25,081 363,897 137,629
Total Liabilities and Fund Balance $ 42,911 $ 25,081 $ 363,897 $ 137,629
52
D-1
Hooks Rd. Roads Capital
Street Street Capital and Improvements
Assessments Assessments Projects Bridges Library 1997
$ 203,969 $ - $ 1,536,855 $ 51,877 $ 10,845 $ -
50,000 - - - -
- - 15,966 - - - -
-
601 - - - -
$ 203,969 $ 66,567 $ 1,536,855 $ 51,877 $ 10,845 $ -
J
$ - $ 19,200 S 176,503 $ 2,480 $ - $ -
- 81,173 - - - -
- 15,966 - - - -
- 116,339 176,503 2,480 - -
203,969 ( 49,772) 1,360,352 49,397 10,845 -
203,969 ( 49,772) 1,360,352 49,397 10,845 -
$ 203,969 $ 66,567 $ 1,536,855 $ 51,877 $ 10,845 $ -
(continued)
53
CITY OF PEARLAND, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET '
(Continued) ,
SEPTEMBER 30,2002
(With Comparative Totals for September 30, 2001)
Street Street Certificate Certificate
Assessment Assessment of Obligation of Obligation
Broadway Hughes/Cullen 1997-A 2001
ASSETS ,
Cash and cash equivalents $ 54,016 $ 12,803 $ 139,373 $ 621,224
Investments - - - 5,390,481
Accounts receivable - - - -
Due from FEMA - - - -
Accrued interest receivable - - - 25,853
Total Assets $ 54,016 $ 12,803 $ 139,373 $ 6,037,558
LIABILITIES AND FUN BALANCE
Liabilities:
Accounts payable $ - $ - $ 10,508 $ 1,805,888
Due to other funds - - - -
Deferred revenue - - - -
Total Liabilities - - 10,508 1,805,888
Fund Balance:
Reserved for encumbrances - - - -
Fund balance 54,016 12,803 128,865 4,231,670
Total Fund Balances 54,016 12,803 128,865 4,231,670
Total Liabilities and Fund Balance $ 54,016 $ 12,803 $ 139,373 $ 6,037,558
54
D-1
Certificate Certificate Certificate
of Obligation of Obligation of Obligation Totals
Drainage Mobility 2001
2002 2002 Vehicles 2002 2001
$ 1,346,969 $ 1,101,846 $ 223,219 $ 5,563,010 $ 1,602,764
6,399,978 14,216,734 - 26,193,112 1,154,340
- - - 187,841 -
- - - - 187,841
26,921 - - 55,085 1,541,676
L- $ 7,773,868 $ 15,318,580 $ 223,219 $ 31,999,048 $ 4,486,621
b
$ 157,080 $ 1,151,813 $ 84,718 $ 3,408,190 $ 675,225
— - - - 81,173 141,676
- - - 15,966 ` 15,966
157,080 1,151,813 84,718 3,505,329 832,867
- - - - 961,855
7,616,788 14,166,767 138,501 28,493,719 2,691,899
7,616,788 14,166,767 138,501 28,493,719 3,653,754
$ 7,773,868 $ 15,318,580 $ 223,219 $ 31,999,048 $ 4,486,621
I
55
CITY OF PEARLAND, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Totals for September 30,2001)
City Road 58 Fite Street McHard Road Southfork
Street Street Street Street ,
Assessments Assessments Assessments Assessments _
REVENUE
Investment earnings $ 35 $ 29 $ 223 $ 7,063
T.X.D 0 T reimbursement - - - -
Other 22,882 - - -
Total Revenue 22,917 29 223 7,063
EXPENDITURES
General government - - - -
Public safety - - - -
Capital Outlay
Streets and transportation - - - -
Drainage - - - -
Other projects - - - -
Debt Service:
Bond issue costs - - - -
Total Expenditures - - - -
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENDITURES 22,917 29 223 7,063
OTHER FINANCING SOURCES(USES)
Transfers in - - - -
Transfers out - - - -
Transfers in from overpass - - - -
Proceeds from bond issue - - - -
Library grant - - - -
Total Other Financing Sources(Uses) - - - -
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
AND USES 22,917 29 223 7,063
FUND BALANCE,BEGINNING OF YEAR 19,994 25,052 363,674 130,566
FUND BALANCE,END OF YEAR $ 42,911 $ 25,081 $ 363,897 $ 137,629
56
D-2
Hooks Rd. Roads Capital
Street Street Capital and Improvements
Assessments Assessments Projects Bridges Library 1997
g-"` $ 237 $ 3,354 $ 944 $ 76 $ - $ 52
-
10,748 - - - -
237 14,102 944 76 - 52
- - 117,437 - - -
- - 890,055 - - -
- 92,408 531,307 25,844 - 2,980
- - 74,069 - - -
- 92,408 1,612,868 25,844 - 2,980
237 ( 78,306) ( 1,611,924) ( 25,768) - ( 2,928)
- 390,000 - •- 73,766
- - 390,000 - - 73,766
237 ( 78,306) ( 1,221,924) ( 25,768) - 70,838
203,732 28,534 2,582,276 75,165 10,845 ( 70,838)
$ 203,969 $( 49,772) $ 1,360,352 $ 49,397 $ 10,845 $ -
(continued)
57
CITY OF PEARLAND, TEXAS
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCES
(Continued)
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Totals for September 30,2001)
Street Street Certificate Certificate
Assessment Assessment of Obligation of Obligation
Broadway Hughes/Cullen 1997-A 2001
REVENUE
Investment earnings $ 16 $ 3 $ 16,984 $ 214,875
T.X.D 0 T reimbursement - - 463,204 154,341
Other 54,000 12,800 - 60,000
Total Revenue 54,016 12,803 480,188 429,216
EXPENDITURES
General government - - - -
Public safety - - - -
Capital Outlay
Streets and transportation - - 1,022,750 5,640,640
Drainage - - - - -
Other projects - - - -
Debt Service:
Bond issue costs - - - 81,466
Total Expenditures - - 1,022,750 5,722,106
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENDITURES 54,016 12,803 ( 542,562) ( 5,292,890)
OTHER FINANCING SOURCES(USES)
Transfers in - - 386,673 -
Transfers out - - - ( 475,440)
Transfers in from overpass - - - -
Proceeds from bond issue - - - 10,000,000
Library grant - - - -
Total Other Financing Sources(Uses) - 386,673 9,524,560
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
AND USES 54,016 12,803 ( 155,889) 4,231,670
FUND BALANCE,BEGINNING OF YEAR - - 284,754 -
FUND BALANCE,END OF YEAR $ 54,016 $ 12,803 $ 128,865 $ 4,231,670
58
D-2
, Certificate Certificate Certificate
of Obligation of Obligation of Obligation Totals
Drainage Mobility 2001
2002 2002 Vehicles 2002 2001
$ 57,360 $ 135,690 $ 9,584 $ 446,525 $ 193,637
- - 617,545 223,846
- 18,906 179,336 149,663
57,360 135,690 28,490 1,243,406 567,146
- - - 117,437 92,884
- - - 890,055 85,514
2,900,448 - 10,216,377 1,565,412
408,701 - - 408,701 1,524,592
— - 1,539,989 1,614,058 1,248,324
_ti
31,871 68,475 - 181,812 -
' 440,572 2,968,923 1,539,989 13,428,440 4,516,726
( 383,212) ( 2,833,233) ( 1,511,499) ( 12,185,034) ( 3,949,580)
- - - 850,439 2,246,491
- - - ( 475,440) -
- - - 212,768
8,000,000 17,000,000 1,650,000 36,650,000 -
- - - 30,000
8,000,000 17,000,000 1,650,000 37,024,999 2,489,259
7,616,788 14,166,767 138,501 24,839,965 ( 1,460,321)
- - - 3,653,754 5,114,075
$ 7,616,788 $_ 14,166,767 $ 138,501 $ 28,493,719 $ 3,653,754
59
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lilts
0
GENERAL FIXED ASSETS
This is a self-balancing group of accounts used to account for the fixed assets of the City
E-1
CITY OF PEARLAND, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30,2002 AND 2001
2002 2001
GENERAL FIXED ASSETS
Land $ 1,884,405 $ 1,607,086
Buildings 9,912,593 9,888,234
Construction in progress 13,995,359 5,961,546
Improvements 26,694,645 25,623,297
Machinery and equipment 12,992,398 11,559,002
Total General Fixed Assets $ 65,479,400 $ 54,639,165
INVESTMENTS IN GENERAL FIXED ASSETS
FINANCED BY CAPITAL PROJECTS FUNDS
General obligation bonds and time warrants
and certificates of obligation $ 49,730,144 $ 38,889,909
Lease purchase agreement 425,519 425,519
Federal grants 395,576 395,576
General Fund revenue 11,609,460 11,609,460
Special Revenue Fund reserves 2,114,776 2,114,776
Special assessments 510,286 510,286
Intergovernmental transfers _ 693,639 693,639
Total Investment in General Fixed Assets $ 65,479,400 $ 54,639,165
60
'-1
1
E-2
CITY OF PEARLAND, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30,2002
Balance Balance
October 1, September 30,
2001 Additions 2002
L.
GENERAL GOVERNMENT
City Council $ 4,410 $ - $ 4,410
Human resources 30,551 1,384 31,935
City manager 76,196 5,350 81,546
City secretary 40,646 - 40,646
Finance 59,226 6,953 66,179
Legal 33,283 1,560 34,843
Municipal court 113,219 1,819 115,038
Custodial services 49,718 - 49,718
City hall 4,334,693 211,405 4,546,098
Miscellaneous 13,169 - 13,169
Total General Government 4,755,111 228,471 4,983,582
PUBLIC SAFETY
Police 5,706,720 75,973 5,782,693
Fire 1,010,953 887,101 1,898,054
Animal shelter 438,160 4,175 442,335
Code enforcement 293,365 52,083 345,448
Civil service 4,433 - 4,433
_ Fire marshal 242,273 - 242,273
Emergency medical services 1,198,784 - 1,198,784
Total Public Safety 8,894,688 1,019,332 9,914,020
PUBLIC WORKS
-- Public works 1,589,169 - 1,589,169
Service center 1,132,113 - 1,132,113
Fleet maintenance 78,459 7,559 86,018
Engineering 239,916 12,485 252,401
I
Street 22,385,570 879,386 23,264,956
Sanitation 453,653 - 453,653
Total Public Works 25,878,880 899,430 26,778,310
COMMUNITY SERVICES
[--- Library 4,461,753 - 4,461,753
_ Parks,recreation,beautification 4,687,187 659,189 5,346,376
Total Community Services 9,148,940 659,189 9,808,129
CONSTRUCTION IN PROGRESS 5,961,546 8,033,813 13,995,359
Total $ 54,639,165 $ 10,840,235 $ 65,479,400
r-
1
61
CITY OF PEARLAND, TEXAS -
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
SEPTEMBER 30,2002
Total Land Buildings
GENERAL GOVERNMENT
City Council $ 4,410 $ - $ -
Human resources 31,935 - -
City manager 81,546 - -
City secretary 40,646 - -
Finance 66,179 - -
Legal 34,843 - -
Municipal court 115,038 - -
Custodial services 49,718 - -
City hall 4,546,098 50,014 2,322,929
Miscellaneous 13,169 - -
Total General Government 4,983,582 50,014 2,322,929
PUBLIC SAFETY
Police 5,782,693 - 1,938,940
Fire 1,898,054 - 48,031
Animal shelter 442,335 4,320 287,435
Code enforcement 345,448 - -
Civil service 4,433 - -
Fire marshal 242,273 - 6,212
Emergency medical services 1,198,784 - 212,625
Total Public Safety 9,914,020 4,320 2,493,243
PUBLIC WORKS
Public works 1,589,169 503,867 -
Service center 1,132,113 15,500 571,432
Fleet maintenance 86,018 - -
Engineering 252,401 - -
Street 23,264,956 200,566 -
Sanitation 453,653 57,236 7,010
Total Public Works 26,778,310 777,169 578,442
COMMUNITY SERVICES
Library 4,461,753 5,000 3,464,092
Parks,recreation,beautification 5,346,376 1,047,902 1,053,887
Total Community Services 9,808,129 1,052,902 4,517,979
CONSTRUCTION IN PROGRESS 13,995,359 - -
Total $ 65,479,400 $ 1,884,405 $ 9,912,593
62
E-3
Machinery Construction in
Improvements and Equipment Progress
$ - $ 4,410 $ -
- 31,935 -
- 81,546 -
- 40,646 -
- 66,179 -
- 34,843 -
6,182 108,856 -
- 49,718 -
200,881 1,972,274 -
- 13,169 -
207,063 2,403,576 -
1,639 3,842,114 -
50,000 1,800,023 -
- 150,580 -
109,570 235,878 -
- 4,433 -
4,739 231,322 -
-- 8,977 977,182 -
174,925 7,241,532 -
1,048,011 37,291 -
394,001 151,180 -
- 86,018 -
- 252,401 -
21,593,428 1,470,962 -
387,652 1,755 -
23,423,092 1,999,607 -
886,471 106,190 -
2,003,094 1,241,493 -
2,889,565 1,347,683 -
- - 13,995,359
$ 26,694,645 $ 12,992,398 $ 13,995,359
63
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}, r
GENERAL LONG-TERM DEBT
This account group is a self-balancing group of accounts used to account for the City's long-term
liabilities which include general obligation bonds, certificates of obligation, capital leases, and
compensated absences
I
F
CITY OF PEARLAND, TEXAS i
SCHEDULE OF GENERAL LONG-TERM DEBT SERVICE
REQUIREMENTS TO MATURITY
SEPTEMBER 30,2002
Certificates of Obligation Series 1997-$6,250,000 Certificates of Obligation Series 1997A-$5,500,000
Due During Fiscal Principal Interest Due Principal Interest Due.
Year Ending Due March 1, Due March 1,
September 30, March 1 September 1 _ Total March 1 September 1 Total
2003 $ 100,000 $ 322,635 $ 422,635 $ 100,000 $ 281,646 $ 381,646
2004 100,000 315,385 415,385 100,000 274,446 374,446
2005 100,000 308,135 408,135 100,000 267,246 367,246 -
2006 100,000 300,885 400,885 100,000 260,046 360,046
2007 110,000 293,273 403,273 100,000 252,846 352,846
2008 120,000 285,385 405,385 100,000 246,346 346,346
2009 120,000 278,335 398,335 100,000 240,846 340,846
2010 400,000 264,685 664,685 395,000 227,976 622,976
2011 460,000 242,110 702,110 415,000 206,916 621,916
2012 520,000 216,255 736,255 440,000 184,686 624,686
2013 580,000 186,960 766,960 465,000 161,040 626,040
2014 650,000 153,895 803,895 495,000 135,716 630,716
2015 1,210,000 103,373 1,313,373 525,000 108,489 633,489
2016 1,280,000 35,200 1,315,200 555,000 79,395 634,395
2017 - - - 590,000 48,480 638,480
2018 - - - 620,000 16,275 636,275
Totals $ 5,850,000 $ 3,306,511 $ 9,156,511 $ 5,200,000 $ 2,992,395 $ 8,192,395
Certificates of Obligation Series 1995-$5,000,000 Certificates of Obligation Series 2001 -$11,650,000
Due During Fiscal Principal Interest Due Principal Interest Due
Year Ending Due March 1, Due March 1,
September 30, March 1 September 1 Total March 1 September 1 Total
2003 $ 185,000 $ 221,445 $ 406,445 $ 200,000 $ 557,623 $ 757,623
2004 200,000 207,970 407,970 220,000 545,022 765,022
2005 210,000 195,510 405,510 230,000 531,523 761,523
2006 225,000 184,312 409,312 245,000 517,273 762,273
2007 240,000 172,335 412,335 260,000 502,123 762,123
2008 255,000 159,337 414,337 275,000 486,071 761,071
2009 270,000 145,290 415,290 115,000 474,373 589,373
2010 500,000 124,250 624,250 560,000 456,922 1,016,922
2011 500,000 96,500 596,500 575,000 431,422 1,006,422
2012 500,000 68,250 568,250 600,000 407,171 1,007,171
2013 500,000 39,500 539,500 630,000 380,641 1,010,641
2014 500,000 12,500 512,500 655,000 352,123 1,007,123
2015 - - - 700,000 321,198 1,021,198
2016 - - - 730,000 287,673 1,017,673
2017 - - - 790,000 251,375 1,041,375
2018 - - - 835,000 211,958 1,046,958
2019 - - - 880,000 169,500 1,049,500
2020 - - - 930,000 124,250 1,054,250
2021 - - - 980,000 76,500 1,056,500
2022 - - - 1,040,000 26,000 1,066,000
Totals $ 4,085,000 $ 1,627,199 $ 5,712,199 $ 11,450,000 $ 7,110,741 $ 18,560,741
(continued)
64
F
CITY OF PEARLAND, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBT SERVICE
REQUIREMENTS TO MATURITY
(Continued)
SEPTEMBER 30,2002
Refunding Bonds Series 1993 -$6,510,000 Refunding Bonds Series 2000-$10,830,000
Due During Fiscal Principal Interest Due Principal Interest Due
Year Ending Due March 1, Due March 1,
September 30, March 1 September 1 Total March 1 September 1 Total
2003 $ 755,000 $ 17,459 $ 772,459 $ 375,000 $ 516,432 $ 891,432
2004 - - - 1,330,000 475,937 1,805,937
2005 - - - 1,620,000 405,875 2,025,875
. 2006 - - - 1,700,000 320,650 2,020,650
2007 - - - 1,800,000 230,700 2,030,700
1 2008 - - - 1,885,000 142,260 2,027,260
2009 - - - 1,980,000 48,510 2,028,510
2010 - - - - - -
2011 - - - - - -
2012 - - - - - -
2013 - - - - - -
2014 - - - - - -
2015 - - - - - -
2016 - - - - - -
I 2017 - - - - - -
2018 - - - - -
Totals $ 755,000 $ 17,459 $ 772,459 $ 10,690,000 $ 2,140,364 $ 12,830,364
Obligations Under Bank One Capital Leases Street Improvement Bond Series 1992-$2,000,000
Due During Fiscal
Year Ending Principal Principal
' September 30, Due Interest Due Total Due Interest Due Total
2003 $ 195,000 $ 64,838 $ 259,838 $ 130,000 $ 68,400 $ 198,400
2004 205,000 57,038 262,038 - - -
2005 215,000 48,848 263,848 - - -
1 2006 225,000 40,268 265,268 - - -
2007 235,000 31,298 266,298 - - -
2008 250,000 21,840 271,840 - - -
I 2009 260,000 11,895 271,895 - - -
2010 175,000 3,412 178,412 - - -
2011 - - - - - -
2012 - - - - - -
2013 - - - - - -
' 2014 - - - - - -
2015 - - - - - -
2016 - - - - - -
' 2017 - - - - - -
2018 - - - - - -
Totals $ 1,760,000 $ 279,437 $ 2,039,437 $ 130,000 $ 68,400 $ 198,400
(continued)
65
0
F
CITY OF PEARLAND, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBT SERVICE
REQUIREMENTS TO MATURITY
(Continued)
SEPTEMBER 30,2002
Certificates of Obligation Series 1995-$5,000,000
Due During Fiscal Principal Interest Due
Year Ending Due March 1,
September 30, March 1 September 1 Total
2003 $ - $ 1,778,667 $ 1,778,667
2004 535,000 1,316,612 1,851,612
2005 560,000 1,281,025 1,841,025
2006 595,000 1,243,488 1,838,488
2007 625,000 1,208,525 1,833,525
2008 660,000 1,169,800 1,829,800
2009 695,000 1,125,850 1,820,850
2010 730,000 1,079,450 1,809,450
2011 770,000 1,030,800 1,800,800
2012 810,000 979,350 1,789,350
2013 855,000 929,625 1,784,625
2014 900,000 885,750 1,785,750
2015 950,000 839,500 1,789,500
2016 1,000,000 790,750 1,790,750
2017 1,055,000 739,375 1,794,375
2018 1,115,000 685,125 1,800,125
2019 1,175,000 627,875 1,802,875
2020 1,235,000 567,625 1,802,625
2021 1,305,000 504,125 1,809,125
2022 1,375,000 437,125 1,812,125
2023 1,445,000 366,625 1,811,625
2024 1,525,000 292,375 1,817,375
2025 1,605,000 214,125 1,819,125
2026 1,695,000 131,625 1,826,625
2027 1,785,000 44,625 1,829,625
Totals $ 25,000,000 $ 20,269,817 $ 45,269,817
(continued)
66
F
CITY OF PEARLAND, TEXAS
SCHEDULE OF GENERAL LONG-TERM DEBT SERVICE
REQUIREMENTS TO MATURITY
(Continued)
SEPTEMBER 30,2002
Annual Requirements for All Series
Due During Fiscal Total Total Total
Year Ending Principal Interest Principal and
September 30, Due Due Interest Due
2003 $ 2,040,000 $ 3,829,145 $ 5,869,145
2004 2,690,000 3,192,410 5,882,410
2005 3,035,000 3,038,162 6,073,162
2006 3,190,000 2,866,922 6,056,922
2007 3,370,000 2,691,100 6,061,100
2008 3,545,000 2,511,039 6,056,039
2009 3,540,000 2,325,099 5,865,099
2010 2,760,000 2,156,695 4,916,695
2011 2,720,000 2,007,748 4,727,748
2012 2,870,000 1,855,712 4,725,712
2013 3,030,000 1,697,766 4,727,766
2014 3,200,000 1,539,984 4,739,984
2015 3,385,000 1,372,560 4,757,560
2016 3,565,000 1,193,018 4,758,018
2017 2,435,000 1,039,230 3,474,230
2018 2,570,000 913,358 3,483,358
2019 2,055,000 797,375 2,852,375
2020 2,165,000 691,875 2,856,875
2021 2,285,000 580,625 2,865,625
2022 2,415,000 463,125 2,878,125
2023 1,445,000 366,625 1,811,625
2024 1,525,000 292,375 1,817,375
2025 1,605,000 214,125 1,819,125
2026 1,695,000 131,625 1,826,625
2027 1,785,000 44,625 1,829,625
Totals $ 64,920,000 $ 37,812,323 $ 102,732,323
0 67
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1
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1
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E Ft��
Orft°1aS
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G
CITY OF PEARLAND, TEXAS
SCHEDULE OF ENTERPRISE FUND DEBT SERVICE
REQUIREMENTS TO MATURITY
SEPTEMBER 30,2002
Water and Sewer System Revenue Bonds Water and Sewer System Revenue Bonds
Series 2001 -$10,000,000 Series 1996B-$8,870,000
Due During Fiscal Principal Interest Due Principal Interest Due
Year Ending Due March 1, Due March 1,
September 30, March 1 September 1 Total March 1 September 1 Total
2003 $ - $ 511,255 $ 511,255 $ 420,000 $ 357,460 $ 777,460
2004 155,000 511,255 666,255 440,000 341,080 781,080
2005 170,000 501,568 671,568 455,000 323,480 778,480
2006 175,000 490,943 665,943 475,000 304,826 779,826
2007 190,000 480,005 670,005 495,000 284,876 779,876
2008 200,000 468,130 668,130 515,000 263,590 778,590
2009 210,000 455,630 665,630 540,000 240,390 780,390
2010 230,000 442,505 672,505 560,000 216,632 776,632
2011 240,000 428,130 668,130 590,000 190,870 780,870
2012 255,000 413,130 668,130 615,000 163,140 778,140
2013 270,000 397,830 667,830 645,000 133,946 778,946
2014 290,000 386,017 676,017 675,000 102,968 777,968
2015 300,000 372,968 672,968 710,000 70,568 780,568
2016 320,000 359,092 679,092 745,000 36,132 781,132
2017 340,000 343,892 683,892 - - -
2018 365,000 327,572 692,572 - - -
2019 390,000 309,688 699,688 - - -
2020 420,000 290,188 710,188 - - -
2021 1,730,000 269,188 1,999,188 - - -
2022 1,825,000 182,688 2,007,688 - - -
2023 1,925,000 91,437 2,016,437 - - -
Totals $ 10,000,000 $ 8,033,111 $ 18,033,111 $ 7,880,000 $ 3,029,958 $ 10,909,958
Water and Sewer System Revenue Bonds Water and Sewer System Revenue Bonds
Series 1999-$8,000,000 Series 1998-$17,300,000
Due During Fiscal Principal Interest Due Principal Interest Due
Year Ending Due March 1, Due March 1,
September 30, March 1 September 1 Total March 1 September 1 Total
2003 $ 165,000 $ 290,315 $ 455,315 $ 90,000 $ 591,500 $ 681,500
2004 175,000 284,078 459,078 100,000 588,768 688,768
2005 180,000 277,480 457,480 855,000 574,706 1,429,706
2006 190,000 270,685 460,685 880,000 548,675 1,428,675
2007 195,000 263,495 458,495 915,000 521,073 1,436,073
2008 205,000 256,105 461,105 945,000 492,006 1,437,006
2009 215,000 248,378 463,378 980,000 461,197 1,441,197
2010 220,000 240,270 460,270 1,015,000 428,271 1,443,271
2011 230,000 231,965 461,965 1,050,000 393,157 1,443,157
2012 240,000 223,283 463,283 1,090,000 355,697 1,445,697
2013 250,000 214,223 464,223 1,125,000 316,100 1,441,100
2014 260,000 204,785 464,785 1,170,000 274,497 1,444,497
2015 275,000 194,970 469,970 1,210,000 230,760 1,440,760
2016 285,000 184,598 469,598 1,250,000 184,937 1,434,937
2017 1,080,000 173,830 1,253,830 2,090,000 121,790 2,211,790 --
2018 1,125,000 133,060 1,258,060 2,160,000 41,040 2,201,040
2019 1,175,000 90,583 1,265,583 - - -
2020 1,225,000 46,235 1,271,235 - - - -
Totals $ 7,690,000 $ 3,828,338 $ 11,518,338 $ 16,925,000 $ 6,124,174 $ 23,049,174
68 `
G
CITY OF PEARLAND, TEXAS
SCHEDULE OF ENTERPRISE FUND DEBT SERVICE
REQUIREMENTS TO MATURITY
(Continued)
SEPTEMBER 30,2002
Annual Requirements for All Series
Due During Fiscal Total Total Total
Year Ending Principal Interest Principal and
September 30, Due Due Interest Due
2003 $ 675,000 $ 1,750,530 $ 2,425,530
2004 870,000 1,725,181 2,595,181
2005 1,660,000 1,677,234 3,337,234
2006 1,720,000 1,615,129 3,335,129
-
2007 1,795,000 1,549,449 3,344,449
2008 1,865,000 1,479,831 3,344,831
2009 1,945,000 1,405,595 3,350,595
2010 2,025,000 1,327,678 3,352,678
2011 2,110,000 1,244,122 3,354,122
2012 2,200,000 1,155,250 3,355,250
2013 2,290,000 1,062,099 3,352,099
2014 2,395,000 968,267 3,363,267
2015 2,495,000 869,266 3,364,266
2016 2,600,000 764,759 3,364,759
2017 3,510,000 639,512 4,149,512
2018 3,650,000 501,672 4,151,672
r 2019 1,565,000 400,271 1,965,271
2020 1,645,000 336,423 1,981,423
2021 1,730,000 269,188 1,999,188
2022 1,825,000 182,688 2,007,688
2023 1,925,000 91,437 2,016,437
Totals $ 42,495,000 $ 21,015,581 $ 63,510,581
0
0
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H-1
CITY OF PEARLAND, TEXAS
COMPONENT UNITS
COMBINING BALANCE SHEET
SEPTEMBER 30,2002 AND 2001
Totals
PEDC TIRZ 2002 2001
ASSETS
Cash and cash equivalents $ 955,017 $ 187,941. $ 1,142,958 $ 370,723
Investments 3,761,047 - 3,761,047 3,694,212
Accounts receivable 142 - 142 479,643
Sales and other taxes receivable 470,552 - 470,552 - I
Interest receivable 6,288 - 6,288 -
Due from other funds - - - 271,274
Amount to be provided for retirement of debt 4,556,023 - 4,556,023 4,668,528
Fixed assets 55,403 - 55,403 55,403
Total Assets $ 9,804,472 $ 187,941 $ 9,992,413 $ 9,539,783
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 38,053 $ 36,252 $ 74,305 $ 8,544
Accrued liabilities 7,726 - 7,726 9,996
Accrued compensated absences 6,023 - 6,023 18,528
Due to other funds - - - 271,274
General obligation bonds 4,550,000 - 4,550,000 4,650,000
Total Liabilities 4,601,802 36,252 4,638,054 4,958,342
Equity
Investment in general fixed assets 55,403 - 55,403 55,403
Undesignated 5,147,267 151,689 5,298,956 4,526,038
Total Equity 5,202,670 151,689 5,354,359 4,581,441
Total Liabilities and Equity $ 9,804,472 $ 187,941 $ 9,992,413 $ 9,539,783
70
I
I
H-2
CITY OF PEARLAND, TEXAS
COMPONENT UNITS
I COMBINING STATEMENT OF REVENUE,EXPENDITURES
I AND CHANGES IN FUND BALANCE
' YEAR ENDED SEPTEMBER 30,2002
(With Comparative Totals for the Year Ended September 30,2001)
Totals
PEDC TIRZ 2002 2001
REVENUE
Sales tax $ 2,512,463 $ - $ 2,512,463 $ 2,397,275
Taxes - 2,926 2,926 -
Other 74,097 132,286 206,383 407,317
Total Revenue 2,586,560 135,212 2,721,772 2,804,592
1
OPERATING EXPENSES
Economic Development:
Personnel 185,082 - 185,082 228,050
Commodities 3,057 - 3,057 6,883
' Contractual services 5,186 - 5,186 9,469
Other services 235,493 142,561 378,054 834,775
Capital outlay 1,269,651 - 1,269,651 403,722
Debt service 368,779 - 368,779 370,616
Total Operating Expenses 2,067,248 142,561 2,209,809 1,853,515
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENSES 519,312 ( 7,349) 511,963 951,077
OPERATING TRANSFERS IN(OUT)
Operating transfers in - 411,639 411,639 -
Operating transfers out ( 110,000) - ( 110,000) ( 322,768)
Total Operating Transfers ( 110,000) 411,639 301,639 ( 322,768)
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
AND USES 409,312 404,290 813,602 628,309
FUND BALANCE,BEGINNING OF YEAR 4,778,639 ( 252,601) 4,526,038 3,524,782
PRIOR PERIOD ADJUSTMENT ( 40,684) - ( 40,684) 372,948
1
RETAINED EARNINGS(DEFICIT)
END OF YEAR $ 5,147,267 $ 151,689 $ 5,298,956 $ 4,526,039
J 71
H-3
CITY OF PEARLAND, TEXAS
PEARLAND ECONOMIC DEVELOPMENT CORPORATION(PEDC)
COMBINING BALANCE SHEET '
SEPTEMBER 30,2002 AND 2001
i
EDC Fixed Long-term Totals
Fund Assets Debt 2002 2001
ASSETS
Cash and cash equivalents $ 955,017 $ - $ - $ 955,017 $ 352,050
Investments 3,761,047 3,761,047 3,694,212
Accounts receivable 142 - - 142 -
Sales and other taxes receivable 470,552 - - 470,552 -
Interest receivable 6,288 - - 6,288 -
Due from other funds - - - - 271,274
Amount to be provided - -
for retirement of debt - - 4,556,023 4,556,023 4,668,528
Fixed assets - 55,403 - 55,403 55,403
Total Assets $ 5,193,046 $ 55,403 $ 4,556,023 $ 9,804,472 $ 9,041,467
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 38,053 $ - $ - $ 38,053 $ 8,544
Accrued liabilities 7,726 - - 7,726 9,996
Accrued compensated absences - - 6,023 6,023 18,528
General obligation bonds - - 4,550,000 4,550,000 4,650,000
Total Liabilities 45,779 - 4,556,023 4,601,802 4,687,068
Equity
Investment in general fixed assets - 55,403 - 55,403 55,403
Undesignated 5,147,267 - - 5,147,267 4,778,639
Total Equity 5,147,267 55,403 - 5,202,670 4,834,042
Total Liabilities and Equity $ 5,193,046 $ 55,403 $ 4,556,023 $ 9,804,472 $ 9,521,110
72
H-4
CITY OF PEARLAND, TEXAS
PEARLAND ECONOMIC DEVELOPMENT CORPORATION(PEDC)
COMBINING STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30,2002
(With Comparative Totals for the Year Ended September 30,2001)
EDC Totals
Fund 2002 2001
REVENUE
Sales tax $ 2,512,463 $ 2,512,463 $ 2,397,275
Other 74,097 74,097 165,816
Total Revenue 2,586,560 2,586,560 2,563,091
OPERATING EXPENSES
Economic Development:
Personnel 185,082 185,082 228,050
Commodities 3,057 3,057 6,883
Contractual services 5,186 5,186 9,469
Other services 235,493 235,493 293,223
Capital outlay 1,269,651 1,269,651 403,722
Debt service 368,779 368,779 370,616
Total Operating Expenses 2,067,248 2,067,248 1,311,963
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENSES 519,312 519,312 1,251,128
OPERATING TRANSFERS IN(OUT)
Operating transfers to other fund ( 110,000) ( 110,000) ( _ ,322,768)
Total Operating Transfers in(Out) ( 110,000) ( 110,000) ( 322,768)
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
AND USES 409,312 409,312 928,360
FUND BALANCE,BEGINNING OF YEAR 4,778,639 4,778,639 3,477,332
PRIOR PERIOD ADJUSTMENT ( 40,684) ( 40,684) 372,948
FUND BALANCE(DEFICIT)
END OF YEAR $ 5,147,267 $ 5,147,267 $ 4,778,640
v 4
73
H-5
CITY OF PEARLAND, TEXAS
TIRZ#1 AND TIRZ#2
COMBINING BALANCE SHEET
SEPTEMBER 30,2002 AND 2001
Edgewater Shadow Creek Totals
TIRZ#1 TIRZ#2 2002 2001
ASSETS
Cash and cash equivalents $ 11,057 $ 176,884 $ 187,941 $ 18,673
Total Assets $ 11,057 $ 176,884 $ 187,941 $ 18,673
LIABILITIES AND EQUITY
Liabilities:
Due to other funds $ - $ - $ - $ 271,274
Accounts payable - 36,252 36,252 -
Total Liabilities - 36,252 36,252 271,274
Equity
Undesignated 11,057 140,632 151,689 ( 252,601)
Total Equity 11,057 140,632 151,689 ( 252,601)
Total Liabilities and Equity $ 11,057 $ 176,884 $ 187,941 $ 18,673
74
H-6
CITY OF PEARLAND, TEXAS
TIRZ#1 AND TIRZ#2
COMBINING STATEMENT OF REVENUE,EXPENDITURES
AND CHANGES IN FUND BALANCE
YEAR ENDED SEPTEMBER 30,2002
Edgewater Shadow Creek Totals
TIRZ#1 TIRZ#2 2002 2001
REVENUE -
Taxes $ 172 $ 2,754 2,926 $
Other 26 132,260 $ 132,286 241,501
Total Revenue 198 135,014 135,212 241,501
OPERATING EXPENSES
TIRZ.
Other services 7,814 134,747 142,561 541,552
Total Operating Expenses 7,814 134,747 142,561 541,552
EXCESS(DEFICIENCY)OF REVENUE
OVER(UNDER)EXPENSES (. 7,616) 267 ( 7,349) ( 300,051)
OPERATING TRANSFERS IN(OUT)
Operating transfers in - 411,639 411,639 -
' Total Operating Transfers in - 411,639 411,639 -
EXCESS(DEFICIENCY)OF REVENUE
AND OTHER FINANCING SOURCES
AND USES ( 7,616) 411,906 404,290 -
FUND BALANCE,BEGINNING OF YEAR 18,673 ( 271,274) ( 252,601) 47,450
RETAINED EARNINGS(DEFICIT)
END OF YEAR $ 11,057 $ 140,632. $ 151,689 $( 252,600
)
75
H-7
CITY OF PEARLAND, TEXAS
SCHEDULE OF COMPONENT UNIT FUNDS DEBT SERVICE
REQUIREMENTS TO MATURITY
SEPTEMBER 30,2002
Sales Tax Revenue Bonds
Series 1997 -$5,000,000
Due During Fiscal Principal Interest Due
Year Ending Due March 1,
September 30, September 1 September 1 Total
2003 $ 185,000 $ 260,370 $ 445,370
2004 200,000 247,050 447,050
2005 210,000 232,650 442,650
2006 220,000 217,530 437,530
2007 235,000 201,690 436,690
2008 300,000 187,590 487,590
2009 320,000 171,990 491,990
2010 340,000 155,030 495,030
2011 360,000 136,670 496,670
2012 385,000 117,050 502,050
2013 410,000 95,875 505,875
2014 435,000 73,325 508,325
2015 460,000 49,400 509,400
2016 490,000 25,480 515,480
Totals $ 4,550,000 $ 2,171,700 $ 6,721,700
76
IGAL
��sz
TABLE 1
CITY OF PEARLAND, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION(1)
LAST TEN FISCAL YEARS
Fiscal General Public Public Community Debt
Year Government Safety Works Services Service Total
1993 $ 1,709,983 $ 2,890,899 $ 3,514,225 $ 501,733 $ 2,547,354 $ 11,164,194
1994 1,831,204 3,100,156 3,312,929 777,059 2,254,696 11,276,044
1995 1,998,228 3,445,100 3,798,607 881,211 2,044,453 12,167,599
1996 2,316,013 3,865,449 4,112,939 1,185,426 2,430,097 13,909,924
1997 2,357,621 4,238,647 4,334,123 1,137,045 2,451,033 14,518,469
1998 2,834,021 5,026,554 4,925,693 1,543,440 3,273,010 17,602,718
1999 3,685,523 5,695,956 5,137,708 1,580,624 3,209,693 19,309,504
2000 3,580,693 5,944,516 5,635,397 1,762,770 3,064,038 19,987,414
2001 4,217,744 6,692,138 5,974,667 2,043,620 3,275,682 22,203,851
2002 5,052,056 7,411,992 7,603,804 2,271,052 4,112,491 26,451,395
(1) Includes general governmental expenditures of the General Fund and Debt Service Fund.
77
TABLE 2
CITY OF PEARLAND, TEXAS
GENERAL GOVERNMENTAL REVENUE BY SOURCE(1)
LAST TEN FISCAL YEARS
- (1) (2)
Property Inter-
Fiscal Taxes and Other Licenses Fines and Charges Franchise governmental Other
Year Penalties Taxes and Permits Forfeitures for Services Fees Revenue Revenue Total
1993 $ 8,094,140 $ 1,733,901 $ 418,577 $ 404,857 $ 1,089,194 $ 1,050,451 $ - $ 311,959 $ 13,103,079
1994 8,261,631 1,905,741 432,626 415,511 1,182,274 1,109,374 107,987 463,971 13,879,115
1995 8,568,140 2,166,219 339,309 415,378 1,425,741 1,026,007 78,882 809,141 14,828,817
1996 9,292,922 2,298,546 514,081 459,884 1,553,765 1,016,069 246,414 523,188 15,904,869
1997 10,472,362 2,589,918 524,197 529,152 1,648,617 1,498,788 197,764 722,189 18,182,987
1998 7,108,800 2,973,058 615,808 576,856 2,508,087 1,703,715 345,674 678,232 16,510,230
1999 8,192,927 3,426,576 955,819 675,691 2,960,214 1,943,545 489,860 692,481 19,337,113
2000 9,272,373 3,697,523 1,469,799 731,959 3,061,545 2,022,789 15,000 896,730 21,167,718
2001 10,833,292 4,810,098 1,896,728 856,641 3,202,767 2,303,730 - 939,532 24,842,788
2002 12,857,995 5,044,972 2,256,638 845,322 3,651,825 2,453,829 - 933,950 28,044,531
(1) Includes general governmental revenue of the General Fund and Debt Service Fund
(2) Primarily City sales taxes
78
TABLE 3
CITY OF PEARLAND, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS(1)
LAST TEN FISCAL YEARS
Percentage
of Total Tax Percent of
Current Percentage Delinquent Total Collections Outstanding Delinquent
Fiscal Total Tax of Levy Tax Tax to Total Delinquent to Total
Year Tax Levy(2) Collections Collected Collections Collected Tax Levy Taxes Tax Levy
1993 $ 5,218,769 $ 5,141,839 98.53% $ 96,234 $ 5,238,073 100.37% $ 303,983 5.82%
1994 5,224,050 5,020,687 96.11% 11,520 5,032,207 96.33% 286,677 5.49%
1995 5,316,625 5,229,939 98.37% 63,318 5,293,257 99.56% 383,032 7.20%
1996 5,869,525 5,790,544 98.65% 62,365 5,852,909 99 72% 280,499 4 78%
1997 6,343,113 6,235,954 98.31% 70,983 6,306,937 99 43% 258,104 4.07%
1998 7,062,826 6,957,153 98.50% 74,969 7,032,122 99.57% 293,915 4 16%
1999 8,147,473 7,992,304 98.10% 96,094 8,088,398 99.27% 389,445 4 78%
2000 9,174,224 9,022,542 98.35% 119,461 9,142,003 99 65% 479,170 5.22%
2001 10,864,049 10,609,654 97.66% 179,483 10,789,137 99.31% 285,091 2.62%
2002 12,890,902 12,477,283 96.79% 199,030 12,676,313 98.34% 699,841 5 43%
(1) A property tax system was initiated in the 1970-71 fiscal year Taxes are levied in August (or as soon
thereafter as practicable) and become delinquent on February 1 of each year The City, in accordance with
Section 33 07 of the Texas Property Tax Law Annotated 1982, imposes an additional penalty of 15%
beginning July 1 to defray cost of collection.
(2) The total tax levy has been adjusted to reflect additions to and deletions from the tax roll for prior years.
79
TABLE 4
CITY OF PEARLAND, TEXAS
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal
Year Real Property Personal Property Total
1993 $ 555,963,400 $ 98,841,350 $ 654,804,750
1994 593,577,620 136,752,320 730,329,940
1995 646,643,658 116,800,212 763,443,870
1996 722,600,850 121,756,997 844,357,847
1997 774,645,420 100,838,570 875,483,990
1998 857,952,469 154,096,941 1,012,049,410
1999 998,492,267 181,888,920 1,180,381,187
2000 1,145,678,437 174,353,848 1,320,032,285
2001 1,381,514,173 181,888,920 1,563,403,093
2002 1,760,551,863 114,457,797 1,875,009,660
Note: Assessment date is January 1st of the tax year Assessed value is 100% of the estimated
actual value.
Source: Tax Department records of the City
80
TABLE 5
CITY OF PEARLAND, TEXAS
PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS
(PER$100 OF ASSESSED VALUE) ,
LAST TEN YEARS
Pearland Harris Harris
Independent Port of County County
Fiscal City of School Brazoria Harris Houston Flood Hospital
Year Pearland District County County Authority Control District
1993 0 797 1.532 0.358 0.329 0 015 0 056 0.196
1994 0.715 1 705 0.358 0.339 0.012 0.056 0.190
1995 0.697 1 705 0.358 0.363 0.013 0.063 0.184
1996 0 695 1 705 0.358 0.407 0.016 0.076 0.124
1997 0.695 1 769 0.358 0 419 0.016 0.080 0 124
1998 0 695 1 777 0.358 0 417 0.021 0.080 0.124
1999 0 695 1.862 0.358 0.370 0.020 0.031 0 147
2000 0 695 1 650 0 400 0.350 0.018 0.062 0.203
2001 0.686 1.820 0 400 0.384 0 018 0 048 0.190
2002 0 686 1.837 0 420 0.360 0 020 0.050 0.190
Note: Property tax rates based on per $100 of assessed valuation
81
TABLE 6
CITY OF PEARLAND, TEXAS
PRINCIPAL TAXPAYERS
FISCAL YEAR 2002
2001 Assessed Percentage
Type of Value of of Assessed
Taxpayer Business Property* Valuation
Weatherford U.S.A.,Inc. Oil field service,rental $ 35,033,690 1.87%
and fishing operation
Reliant Energy Utility company 16,221,790 0.87%
Lowe's Home Centers,Inc. Store 13,599,840 0.73%
Southwestern Bell Telephone Utility company 11,405,920 0.61%
Aggeko,Inc. Mobil temperature 10,581,530 0.56%
Landar Mary's Creek Apartment 10,097,750 0.54%
Green Hollow Apartment 9,119,750 0.49%
Krogers Store 8,808,890 0.47%
Westlake Residential Apartment 7,649,780 0.41%
Texas Windmill Apartment 6,438,841 0.34%
Total Principal Taxpayers 128,957,781 6.88%
Others 1,746,051,879 93.12%
Total $ 1,875,009,660 100.00%
* Source: Tax Department records of the Brazoria County
82
TABLE 7
CITY OF PEARLAND, TEXAS
PROPERTY VALUES,CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Fiscal Bank Property
Year Construction-B Deposits-A Values-C
1993 $ 47,503,523 $ 190,640,375 $ 654,840,750
1994 50,962,332 194,173,827 730,329,940
1995 44,521,636 * 763,443,870
1996 47,357,024 * 844,357,847
1997 126,940,074 * 912,663,450
1998 95,711,203 * 1,020,836,821
1999 106,475,930 * 1,310,608,180
2000 248,015,927 * 1,320,032,285
2001 236,902,344 * 1,563,403,093
2002 240,772,360 * 1,875,009,660
Note A - Bank deposits are as reported by Texas Bankers Association at the preceding December
31
Note B - Inspection Department records to the City
Note C - Tax Department records of the City
* Information not available
83
TABLE 8
CITY OF PEARLAND, TEXAS
RATIO OF NET GENERAL LONG-TERM DEBT
TO ASSESSED VALUE AND NET LONG-TERM DEBT PER CAPITA
LAST TEN FISCAL YEARS
Ratio of
Debt Net Long- Net
Net Gross Service Net term Debt Long-term
Fiscal Estimated Assessed Value Long-term Monies Long-term to Assessed Debt Per
Year Population* (in thousands) Debt Available Debt Value Capita
1993 23,016 $ 1,329,410 $ 24,385,000 $ 1,953,703 $ 22,431,297 1 69% $ 975
1994 27,942 1,411,711 21,765,000 2,036,915 19,728,085 1 40% 706
1995 27,942 1,494,202 25,810,000 2,173,995 23,636,005 1.58% 846
1996 30,000 1,563,037 24,810,000 2,435,712 22,374,288 1 43% 746
1997 36,000 1,624,015 35,350,000 2,141,816 33,208,184 2.04% 922
1998 37,000 1,012,049 34,820,139 273,742 34,546,397 3 41% 934
1999 37,535 1,180,381 33,456,209 208,324 33,247,885 2.82% 886
2000 39,000 1,320,032 30,351,250 681,148 29,670,102 2.25% 761
2001 40,700 1,563,403 28,364,724 1,544,987 26,819,737 1.72% 659
2002 43,103 1,875,000 64,920,000 2,229,529 62,690,471 3.34% 1,454
-.w
(1) Includes all general obligation bonds, certificates of obligation, and obligations under capital
leases at fiscal year-end.
* Source:
1989 Reliant Energy Connections (City records) times 3 19 less vacancy rate of 6 3%
1990 Bureau of Statistics
1991-98 Bureau of Statistics plus Houston Lighting and Power connections times 3 19 less
vacancy rate of 6.3%
84
TABLE 9
CITY OF PEARLAND, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL LONG-TERM
DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES AND LEGAL DEBT LIMITS
LAST TEN FISCAL YEARS
Ratio of Debt
Interest Total Service
Fiscal and Fiscal Total Debt General to Total
Year Principal Agency Fees* Service Expenditures(1) Expenditures
1993 $ 1,243,361 $ 1,303,993 $ 2,547,354 $ 11,163,194 22.82%
1994 1,100,000 1,154,694 2,254,694 11,267,042 20.01%
1995 955,000 1,089,453 2,044,453 12,167,599 16.80%
1996 1,010,000 1,420,097 2,430,097 13,909,924 17 47%
1997 1,200,000 1,251,033 2,451,033 14,518,469 16.88%
1998 1,280,000 1,993,010 3,273,010 17,586,532 18.61%
1999 1,440,000 1,769,693 3,209,693 19,309,504 16.62%
2000 1,605,000 1,468,461 3,073,461 19,987,414 15.38%
2001 1,680,000 1,558,652 3,238,652 22,203,851 14.59%
2002 1,920,000 2,192,490 4,112,490 26,421,394 15.57%
(1) Includes general governmental expenditures of the General Fund and Debt Service Fund.
The City is permitted, by Article XI, Section 5 of the State of Texas Constitution and the City
Charter to levy property taxes up to $2.50 per $100 of assessed valuation for general governmental
services. Withm the $2.50 maximum levy, there is no legal limit upon the amount of property taxes,
which can be levied for debt service. The property tax rates to finance general governmental
services and debt service for the 2000-2001 tax year were $ 43500 and $.26000, respectively, per
$100 of assessed valuation.
85
TABLE 10
CITY OF PEARLAND, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30,2002
Gross Overlapping
Taxing Jurisdiction Debt Percentage Amount
Brazoria County $ 27,199,761 6.97% $ 1,895,823
Harris County 1,640,580,069 60.60% 994,191,522
Pearland Independent School District 180,925,000 77 62% 140,433,985
Port of Houston Authority 324,705,000 0.02% 64,941
Harris County Flood Control 108,994,629 0.02% 21,799
Total Overlapping Debt 152,405,560
City of Pearland 79,905,000 100 00% 79,905,000
Total Direct and Overlapping Debt $ 232,310,560
Population 43,103
Per Capita Debt-Direct and Overlapping $ 3,538
86
TABLE 11
CITY OF PEARLAND, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal Estimated School Unemployment
Year Population(1) Enrollment(2) Percentage(3)
1993 23,016 7,555 8.30%
1994 27,942 8,138 7 60%
1995 27,942 8,600 7 10%
1996 30,000 8,900 7 40%
1997 35,000 9,000 7.20%
1998 37,000 9;200 4.50%
1999 37,535 9,500 4 60%
2000 39,000 9,700 3 60%
2001 40,500 10,224 4.20%
2002 43,103 11,700 4 60%
Sources.
(1) Estimated Population- The Pearland Economic Development Corporation
(2) School enrollment figures were obtained from Pearland Independent School District and
mcludes kmdergarten through college students.
(3) Unemployment statistics for the City were obtained from the Texas Workforce
Commission and calculated as a percentage of unemployed to employable.
87
TABLE 12
CITY OF PEARLAND, TEXAS
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30,2002
Date of Incorporation December 1959
Form of Government CouncilManager
Area 72.5 Total Area square miles
Fire Protection.
Number of stations 4
Number of certified personnel,not include 59
Number of fire vehicles 19
Police Protection:
Number of stations 1
Number of commissioned officers,not incl 106
Number of patrol vehicles 48(home fleet program)
Recreation:
Number of parks 9
Acres 113
Number of pools 1
Number of tennis courts 8
Softball fields 4
Pavilions 1 large and 4 small
Community Center 1
Activity Building 1
Education:
Pearland Independent School District
Number of teachers 747
Number of students 12,103
Elementary schools 8
Middle school 2
Junior high 3
High school 1
r City Employees: 318
Full-time employees 83
Part-time employees 401
(continued)
88
TABLE 12
CITY OF PEARLAND, TEXAS
MISCELLANEOUS STATISTICAL DATA
(Continued)
SEPTEMBER 30,2002
I I
Election.
Number of votes cast
Last general election 3,221
Last City election May 4,2002
Water
Number of wells 10
Average daily consumption 5,000,000 gallons
Maximum daily consumption 11,200,000 gallons
Water mains 201 miles
Number of connections 13,600
Sewer
Number of plants 4 _
Lift stations 70
Average daily capacity 9,600,000 gallons
Maximum daily consumption 38,000,000 gallons
Sanitary sewer mains 180 miles
Number of connections 13,860
Emergency Medical Services:
Number of volunteers 12
Number of paid paramedics 40
Number of stations 2
Number of vehicles 4
Library.
Number of buildings 1
Number of cardholders 32,604
Number of books in library 97,757
89