The URL can be used to link to this page

Ord. 0566 04-10-89ORDINANCE NO. 566 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CONTRACT, A FACSIMILE OF SAME BEING ANNEXED HERETO, INCORPORATED HEREIN FOR ALL PURPOSES DESIGNATED EXHIBIT "A" BY AND BETWEEN EARL LAIRSON AND COMPANY, CERTIFIED PUBLIC ACCOUNTANTS, AND THE CITY OF PEARLAND, TEXAS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND: SECTION 1. That the facsimile of contract, annexed hereto, incorporated between Earl the City of herein for all purposes, designated Exhibit "A", by and Lairson and Company, Certified Public Accountants, Pearland, and Texas, for the purpose of examining the financial statement of the various funds of the Texas, for the and approved. SECTION reasonable and year ending September 30, 1989, is City of Pearland, hereby authorized 2. The City Council finds that such contract is necessary and that there are sufficient city funds for the availability of payment. SECTION 3. The Mayor and the City Secretary of the City of Pearland, Texas, are hereby authorized and directed to execute for and on behalf of the City the annexed contract documents, and counterparts thereof. PASSED and APPROVED /L-tBt2G✓ , A. D. , 1989. ATTEST: 7(24_2- City Seretary on first reading this �f h I Mayor 027 day of 1 PASSED and APPROVED on second and final reading this Ae day of L^;�t�%� �C , A. D., 1989. ATTEST: City S$cretary APPROVED AS TO FORM: City Attorney Mayor 2 EXHIBIT "A" EIRL L: /RSOJ' a CO. P O. BOX 500017 1-I0USTON.TEXA5 77250- 0017 March 20, 1989 A PROFESSIONAL COREORATION CERTIFIED PUBLIC ACCOCNTkNTS 7o-66rv6500 The Honorable Mayor and Members of City Council City of Pearland Pearland, Texas 1716 MARCUM, SUITE 300 HOUSTON, TEXAS 77092 We propose to audit the financial statements of the various funds and account groups of the City of Pearland, Texas for the year ending September 30, 1989. Our audit will be made in accordance with generally accepted auditing standards and, accordingly, will include such tests of the accounting records and such other auditing procedures as we consider necessary in the circumstances. In addition to our regular audit report, we will also set forth in a separate let- ter any recommendations and suggestions for the improvement of internal control and accounting procedures which we feel appropriate based on our review of policies and procedures in connection with our work. Our fee for this service will not exceed $14,750 plus cash expenses. Our fee is based on our regular per diem rates and is based on your personnel preparing certain year-end closing schedules. We will keep you informed on the progress of our work and will inform you immediately if any situation arises that would require a re-evaluation of our work or time schedule. We do not anticipate any such problems. In addition to our regular audit, we will assist in the preparation and print- ing of a Comprehensive Annual Financial Report conforming to standards recom- mended by the Government Finance Officers Association. Our fee for this ser- vice will be based on our regular per diem rates. We expect to be able to complete our work and deliver our report and letter of recommendations within ten weeks from the date that your personnel make the accounting records available to us. We appreciate the opportunity to serve you. We assure you that these services will receive our most careful and prompt attention. Please call us if we may answer any questions on this or related matters. Very truly you l� Earl C. La son President ECL/ct Accepted: Signature e// ate PROPERTY CITY OF COMPREHENSIVE��RL/ADS � ISO ftiCT -REMOVE F R,O 41 OFFICr ANNUAL FINANCIAL REPORT r Cfluj00q o O o cOl©rill©nv' 1��x©, r r -...Ark-.: ::fit N •6 r „tAt •-• =. r ,76 .,3/4r.iii,k-it, lr- ,,,j014.,.„ ..,,7, ' " „:_: .4. ,,..,, II , .,.......:.... ll , I% 1 i ,„,--_- — IIIIIMMINIREN ji-:311111k41 ,` �•.,. w r .4', • 10 I �� { ^;4 / ' , \i4iV .-0 w - " � `YS•' 'A�g11/ •• .. . _n+ r. 4 p Yw + � 4 I 4 I . � ` .x„ # .� a i i V 3 . ft Yi ,.. :ek.:1,;„*.:'.11H11111,Ht ., ' r '1.111 ,.... , ' I .---,04..1.74.; ',-.4.4.4,17...klimeir•=1 i .r.......- •;' "n'' 1"11a`. "hl tdL, wl.\\ru ael�ow r„� �. ;i?L a.1 --.ir_ .M��'l�'4�79?W'A!Wib`ryr - �++`- .. _.,..T--=- --.- , ...p �,. ,,,mow, r_.�. 4 • at .. i'wY ;to okA 4.•,.h1w'!Y.A'a PEARLAND CITY HALL DANSBY AND MILLER ALA. ARCHITECTS FOR THE YEAR ENDED SEPTEMBER 30, 1989 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF PEARLAND, TEXAS For the fiscal year ended September 30, 1989 Prepared by Finance Department Janet S. Eastburn City Treasurer CONTENTS Page INTRODUCTORY SECTION Certificate of Achievement for Excellence in Financial Reporting 8 Statement of Continued Compliance with Certificate of Achievement for Excellence in Financial Reporting Requirements 9 Letter of Transmittal 11 Organization Chart 19 Principal Officials 20 FINANCIAL SECTION Independent Auditors' Report 22 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups 26 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 30 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Debt Service Fund Types 32 Combined Statements of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types (Enterprise Funds) 34 Combined Statement of Cash Flows - All Proprietary Fund Types 36 Notes to Financial Statements 38 a a a -3- CONTENTS - 2 P age FINANCIAL SECTION (continued) Individual Fund and Account Group Statements and Schedules General Fund Comparative Balance Sheets 61 Statement of Revenues - Budget and Actual 62 Statement of Expenditures - Budget and Actual - — By Function 63 Schedule of Expenditures - Budget and Actual - .. By Object 64 Schedule of Delinquent Taxes Receivable 70 Debt Service Fund Comparative Balance Sheets 73 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances 74 Capital Projects Fund Comparative Balance Sheets 77 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances 78 -4- CONTENTS - 3 Page FINANCIAL SECTION (continued) Enterprise Funds Combining Balance Sheet 80 Combining Statement of Revenue and Expenses 82 Combining Statement of Cash Flows 84 Water and Sewer Fund Statement of Revenues and Expenses - Budget S and Actual 85 Schedule of Long-Term Debt (Revenue Bonds) 87 Sanitation Fund Statement of Revenues and Expenses - Budget and Actual 88 General Fixed Assets Account Group Comparative Schedules of General Fixed Assets - By Sources 91 Schedule of General Fixed Assets - By Function and Activity 92 _ Schedule of Changes in General Fixed Assets - By Department 93 General Long-Term Debt Account Group Statement of Changes in General Long-Term Debt 96 Combined Schedule of General Long-Term Debt 98 General Long-Term Debt - By Maturity Date 102 Combined Schedule of Investments - All Funds 106 a a -5- CONTENTS - 4 Page STATISTICAL SECTION General Governmental Expenditures - By Function 112 General Governmental Revenues - By Source 114 Tax Revenues - By Source 117 Property Tax Levies and Collections 118 Assessed and Estimated Actual Value of Taxable Property 120 Property Tax Rates and Tax Levies - Direct and Overlapping Governments 122 Tax Rate Distribution 126 Principal Taxpayers 127 Ratio of Net Long-Term Debt to Assessed Value and Net Long-Term Debt Per Capita 128 Computation of Net Direct and Estimated Overlapping Debt 131 Ratio of Annual Debt Service Expenditures for General Long-Term Debt to Total General Expenditures 132 Revenue Bond Coverage 135 Schedule of Insurance In Force 136 Property Value, Construction and Bank Deposits 142 Miscellaneous Statistical Data 143 Demographic Statistics 145 City Officials and Department Heads 146 -6- 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, 1988 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. ,,,,,c,E(opt /''4, 4 .r a^`iiEiiE 4‘:tr UNITED STATES = H President * CANADA o Jy/� Zd CORPORATION a V" (/6�(� •'�� SEAL��o.� �� CN,C\66 '�r�/G�' Executive Director -8- �0�p E ARC z Cfluj o� o o©rr can o II � *I EX A5 P. O. Box 2068 • Pearlond, Texas 77588-2068 . 485-2411 STATEMENT OF CONTINUED COMPLIANCE WITH CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING REQUIREMENTS CITY OF PEARLAND, TEXAS November 20, 1989 The Government Finance Officers Association of the United States and Canada i (GFOA) awarded a Certificate of Achievement for Excellence in Financial Report- ing to the City of Pearland for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1988. 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 for the year ended September 30, 1989 continues to conform to Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. \ -0(Aa E'Amj+k-A,\__ JANET S. EASTBURN CITY TREASURER -9- C!) Cu ©11 O 4o0cc�rrlipn�1 P. O. Box 2068 •Peorlond, Texas 77588-2068 . 485-2411 To the Citizens of the City of Pearland Pearland, Texas The comprehensive annual financial report of the City of Pearland, Texas for the fiscal year September 30, 1989, 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. 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 auditor's report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. This report includes all funds and account groups of the City. 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. In addition to general govenment activities, the City provides water, sewer and sanitation services. The Pearland Volunteer Fire Department, the Pearland Area Emergency Medical Service, the Pearland Independent School District, Brazoria County, the Harris County Hospital District, the Clear Creek Independent School District Harris County, the Harris County Flood Control , and the Port of Houston Authority have not met the established criteria for inclusion in the reporting entity, and accordingly are excluded from this report. r -11- ECONOMIC CONDITION AND OUTLOOK The City of Pearland lies fifteen miles southeast of downtown Houston in the northeast corner of Brazoria County. Pearland is accessible by way of four major highways and is six miles from the World' s 27th busiest airport (Hobby Airport) . Because of its location Pearland has seen continued growth in resi- dential, commercial and light industrial development over the last decade. While its location has spurred economic growth and development it also has been a factor in the economic decline the City has experienced over the last two to three years. The major factors that contributed to the economic de- cline began to turn around during the past year. Oil prices have stabilized and Pearland and the surrounding cities are making an effort to diversify the local economy. The improved economic condition can best be illustrated by looking at the sales tax revenue. Over the year the City experienced a 5.1 percent increase in sales tax revenue. Other indicating factors are the construction of a new high school, expansion of many of the elementary schools and an increase in the fund equities in the general and enterprise funds. The general economy has a large effect on the financial operations of the City. With the stabilization of the economy the City will be able to strengthen its financial position and meet the challenges today and in the future. MAJOR INITIATIVES For the Year. Pearland is a City which strives to provide its citizens with services that will maintain or enchance their quality of life. During the year the City was involved in a number of projects and made a number of �- capital purchases that will maintain or improve the services provided. These projects and capital purchases included the widening of Farm to Market Road 518, resurfacing of various streets, purchase of four police ... cars, purchase of ten breathing apparatus for the Fire Department, a new ambulance, the swimming pool house was reroofed, and various equipment was purchased in the Enterprise Fund. Capital expenditures during the year enabled the City to continue its high level of service to the citizens. During the year Clean Pearland won the Governor' s Community Achievement Award. The award is given to cities who are active in the Keep Texas Beautiful program which promotes a comprehensive program for the awareness of the need for litter-free communities. Along with the award comes a $50,000 landscape grant from the Texas Department of Highways and Public Transportation. -12- NIP For the Future. The coming year promises to bring a stable economy which will in turn allow the City to enhance the operations of various departments .11 thru capital expenditures. The various departments making capital expenditures in the coming year are: — 1) Municipal Court, 2) Police Department, 3) Fire Department, 4) Animal Shelter, 5) E.M.S. , 6) Inspection, 7) Community Service, 8) Parks and Recreation, 9) Water and sewer, 10) Sanitation and 11) Communication ., Department. Communication is a vital part of any organization and the City is no different. This year the Municipal Court and the Police Department are improving communication thru the purchase of a new computer system and a new data base software program. The new system and software will double the computer capacity and speed up the retrieval of information. The Police �* Department is also going to install mobile data terminals in all of the police cars and add computer aided dispatch to the system. With a mobile data terminal in each police car the police officer will have at his/her disposal local , state and national motor vehicle and criminal information. The computer aided dispatch will dispatch calls and information to officers via the mobile data terminals. The new system will be completely operational within the new year. Another area of concern today is the environment. The City is addressing this issue through the purchase of equipment for its recycling center and ✓ the purchase of biodegradable bags which are distributed to the citizens for their use. Department Focus. This year the City wishes to give its recognition to the IMP Sanitation Department. This year is the first year of operation of the Sanitation Department as an Enterprise Fund. In years past, the Sanitation Department was part of the General Fund. During this first year of operation the Sanitation Department has been self-supporting and established its retained earnings. 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. We believe that the City' s accounting controls provide reasonable assurance sw that errors or irregularities that could be material to the financial statements are prevented or would be detected within a timely period by employees in the normal course of performing their assigned functions. -13- 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 Enter- prise Funds are included in the annual appropriated budget. The level '! of budgetary control (that is, 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 included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Government Functions. The revenue from the general fund and debt — service fund and the amount and percentage of increases and decreases in relation to prior year revenue is summarized in the following schedule. Percent Increase of Percent (Decrease) Increase — Revenue Sources Amount of Total Over 1987-88 (Decrease) Property taxes and penalties $4,723,068 63.3% $632,163 15.5% Sales taxes 1,212,455 16.3 62,164 5.4 Franchise and gross receipts taxes 642,180 8.6 18,548 3.0 Licenses and permits 139,418 1.9 (3,780) (2.6) Fines and forfeitures 265,062 3.6 30,375 12.9 — Inter-governmental -0- .0 (12,500) - Interest 300,197 4.0 147,631 96.8 Other 175,776 2.3 (24,978) (12.4) — TOTAL $7,458,156 100.0% $849,623 11.4% The most significant increase in actual continued revenue sources was derived from taxes. Tax revenues are a combination of three distinct resources: property tax, sales tax and franchise tax. The largest tax revenue increase came from — property taxes. The increase in property tax revenue of $632,163 was the result of two factors which were (1) an increase in the tax rate and (2) an increase in the percentage of the tax levy collected. Additional increases were realized from the sales tax and franchise tax revenue which were up 5.1 percent and 2.9 percent respectively, over last year. A large increase in revenue was interest which increased $147,631 or 96.8 percent over last year. The increase was due to higher interest rates during the year and an increase in cash balances available for investment. _ -14- Allocations of property tax levy by purpose for 1988-89 fiscal year and the preceding two fiscal years are as follows (amount per $100/assessed value) : Purpose 1988-89 1987-88 1986-87 General Fund $.310 $.275 $.246 General Obligation Debt .515 .460 .454 TOTAL TAX RATE $.825 $.735 $.700 *' The expenditures for the general fund and debt service fund and the amount and percentage of increases and decreases in relation to the prior year expenditures are summarized in the following schedule. Percent Increase of Percent (Decrease) Increase 'm Function Amount of Total Over 1987-88 (Decrease) General government $1 ,004,376 14.7% $ (50,714) (4.8)% — Public safety 1,713,376 25.0 (61,829) (3.5) Public works 969,683 14.2 (302,060) (23.8) Community services 350,476 5.1 (43,818) (11. 11) m, Debt service 2 ,809,598 41 .0 304,328 12.15 TOTAL $6,847,509 100.0% $(154,093) 12_.2)% The general government expenditures for fiscal year 1988-89 were lower than for fiscal year 1987-88. The most significant decrease was in the public works •p which was the result of cut backs in personnel and an over all cut back in spending during the fiscal year 1988-89. Higher interest rates on bonds out- standing and an increase in the amount of principal retired resulted in an increase in debt service expenditures in 1988-89. General Fund Balance. The fund balance of the general fund increased by 291 .4 percent in 1989. The $790,705 increase provides the government with a fund balance that is the equivalent of 105 working days of expenditures. This increase should significantly reduce the likelihood of the government IIMI entering the short-term debt market to pay for current operating expenditures. Enterprise Operations. The government' s enterprise operations are comprised of two separate and distinct activities: (1) the Water and Sewer System and (2) the Sanitation Services. mat -15- (1) Water and Sewer System. During the year ended September 30, 1989, the City' s Water and Sewer System reported an increase of $230,766 in operating revenues or 9.99% from the prior year. This increase, offset with an increase in operating expenses (before depreciation) of $226,714 resulted in a increase in operating income (before depreciation) of $4,052 from the prior year. The increase in operating revenue is the result of a .. 9 percent increase in water and sewer rates and increased sale of water due to a dry summer. Operating expenses increased during fiscal year 1988-89 because of a general increase in the cost of supplies and an increase in maintenance costs. Comparative data for the past two fiscal years are presented in the following schedule. 1988-89 1987-88 Operating revenue $2,540,052 $2,309,286 Operating expenses (before depreciation) 1 ,851 ,354 1 ,624,640 Operating income (before depreciation) $ 688,698 $ 684,646 =c-=z Number of customers (water) 5,576 5,689 Average monthly water and sewer bill $44 $34 (2) Sanitation Service. During the fiscal year 1988-1989 the City established a separate fund for it' s sanitation services. In the past sanitation services have been accounted for in the General Fund. The City is very pleased with the first year operation. Operating revenues were substantially greater than expenses which will provide the fund a sound base for the future. Operating data, for the first year as an enterprise operation, is presented in the follow- ing schedule. _. 1988-89 Operating revenue $987,704 Operating expenses (before depreciation) 676,130 Operating income (before depreciation) $311,574 NMI Number of Customers 5,490 Debt Administration. The ratio of net debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City' s debt position to municipal management, citizens, and investors. These data for the City of - Pearland at September 30, 1989 were as follows: MOM -16- Ratio of Debt to Assessed Value Debt (100 Percent of Per Description Amount Present Market) Capita Net direct debt $18,648,045 3.32 $ 848 Overlapping debt 16,842,835 2.99 765 Total direct and overlapping debt $35,490,880 6.31 $1 ,613 Total outstanding tax supported debt (general obligation bonds, certificates of obligation and notes payable) at September 30, 1989 totaled $19,412,557. Debt service funds in the amount of $764,512 were available at September 30, 1989. The City's assigned bond ratings on its most recent issue as follows: Moody's Standard & Poors Revenue Bonds Baa-1 A — Tax Bonds Baa-1 A Cash Management. Cash temporarily idle during the year was invested in certificates of deposit ranging from 60 to 365 days to maturity. Yields on certificates of deposit ranged from 7.57% to 9.14% during the year. Certificate of deposit and cash amounts which exceed FDIC coverage are collateralized by securities owned by the City's depository. All collateral on deposits was held by the financial institution' s trust department in the City' s name. All investments held by the City during the year and at September 30, 1989, are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board. 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 Earl Lairson & Co. , P.C. , CPAs was selected by the City Council. This re- quirement has been complied with, and the auditor's opinion has been included in this report. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pearland, Texas for its comprehensive annual financial report for the fiscal year ended September 30, 1988. 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. -17- NEW 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 of Pearland also received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated budget dated September 30, 1989. In order to qualify for the Distinguished Budget Presentation Award, the City's budget document was judged to be proficient in several categories including policy documentation, financial planning and organization. Acknowledgments. The preparation of this report on a timely basis was accomplished with the efficient and dedicated services of the entire staff of the Finance Department. I express my appreciation to all members of the _ Department who assisted and contributed to its preparation. I also 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 submitted, .,. Janet S. Eastburn City Treasurer ONO AMP City of Pearland November 20, 1989 IMM Mwo -18- CITY OF PEARLAND - ORGANIZATION CHART SEPTEMBER 30, 1989 CITIZENS CITY COUNCIL CITY . - CITY MANAGER Ma WM - V N MUNICIPAL ATTORNEY JUDGE POLICE CHIEF ' J CITY SECRETARY COMMUNICATIONS (111:1111/A1717111C1111.1.1.11.0UNTIN SANITATION ASST. CHIEF FINANCE .-TREETS &DRAINAG PATROL DIVISION TAX-, CITY GARAGE .VESTIGATIt► PERSONNEL W&S DIST. & COLL. TECH.SERVICES - MUNICIPAL COURT &S PROD. & TREAT AMIN. SERVICES BUILDING INSPEC. PARKS Z., REC. �_ r ANIMAL CONTROL -19- PRINCIPAL OFFICIALS CITY OF PEARLAND, TEXAS September 30, 1989 — MAYOR Thomas J. Reid Mayor Pro Tem Councilman -. Position No. 5 William E. Wolff Councilman Councilman Position No. 1 Position No. 3 D. A. Miller, Jr. James E. Bost Councilman Councilman Position No. 2 Position No. 4 Richard F. Tetens David L. Smith, Jr. City Manager _ Ronald J. Wicker City Secretary City Treasurer Tax Collector Kay Krouse Janet S. Eastburn Barbara Lenamon -20- PP MN w i OP IMI MI PP IMI FINANCIAL SECTION s. P s so P M P M PO MP PP P P IMP —21— INN Honorable Mayor and Members of City Council City of Pearland, Texas Page Two Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the individual fund and account group financial statements. The accompanying financial information listed as schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Pearland, Texas. The information in these schedules has been subjected to the auditing procedures applied in the audit of the general purpose, individual fund and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. ialLe AnA41/14?.. Houston, Texas November 20, 1989 -23- a a STATEMENTS EAL YpGSE FZNGZAit GEC a a a a a a a a a -25- a COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS - 1 of 2 CITY OF PEARLAND, TEXAS September 30, 1989 GOVERNMENTAL FUND TYPES DEBT CAPITAL GENERAL SERVICE PROJECTS ASSETS AND OTHER DEBITS ASSETS Cash - (including certi- ficates of deposit 1989 - $4,758, 154; 1988 - $4,032,307) $1 ,455,301 $762,331 $1 ,556,640 Receivables - less allowances for uncollectibles Taxes 245,832 Accounts 336 Accrued interest 20,453 2,181 33,425 Assessments 45,705 Due from Other Funds Prepaid Expenditures 12,008 Restricted Assets Cash and certificates of deposit 1989 - $420,563; 1988 - $559, 180 67,479 General Fixed Assets - at cost Property, Plant and Equipment Cost Less allowance for depreciation OTHER DEBITS Amount available in debt .. service fund Amount to be provided for retirement of general long-term debt TOTAL ASSETS AND OTHER DEBITS $1 ,801,409 $764,512 $1 ,635,770 -26- r r r r PROPRIETARY TOTALS FUND TYPES ACCOUNT GROUPS (MEMORANDUM ONLY) GENERAL FIXED GENERAL LONG- ENTERPRISE ASSETS TERM DEBT 1989 1988 Pr 17 $ 1, 173,812 $ 4,948,084 $ 4,208,480 m. 245,832 253,055 540,153 540,489 479,485 26,224 82,283 68,502 45,705 56,139 �. 28,795 28,795 39,308 12,008 24,813 r 517,524 585,003 714,872 $17,124,606 17,124,606 17,333,544 r 16,550,793 16,550,793 15,304,610 3 ,343,112 3,343,112 2,844,530 13,207,681 13,207,681 12,460,080 $ 764,512 764,512 622,168 r 18,648,045 18,648,045 20,061 ,851 $15,494,189 $17, 124,606 $19,412,557 $56,233,043 $56,322,297 See notes to financial statements. -27- COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS - 2 of 2 GOVERNMENTAL FUND TYPES DEBT CAPITAL GENERAL SERVICE PROJECTS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable $ 12,576 Notes payable Accrued salaries 90,247 Accrued compensated absences 294,428 Due to other funds 28,795 Payable from restricted assets 67,479 Deferred revenues 245,832 $ 45,705 Certificates of obligation Revenue bonds General obligation bonds TOTAL LIABILITIES 739,357 45,705 EQUITY AND OTHER CREDITS Contributed capital Investment in general fixed assets Retained earnings Reserved For revenue bond retirement For capital expenditures Unreserved Fund balances Reserved For prepaid expenditures 12,008 For debt service $764,512 Unreserved .. Designated For capital expenditures 100,000 1,590,065 ._ Undesignated 950,044 TOTAL EQUITY AND OTHER CREDITS 1,062,052 764,512 1,590,065 TOTAL LIABILITIES, EQUITY AND OTHER CREDITS $1,801,409 $764,512 $1,635,770 -28- .11 .11 PROPRIETARY TOTALS FUND TYPES ACCOUNTS GROUPS (MEMORANDUM ONLY) GENERAL FIXED GENERAL LONG- ENTERPRISE ASSETS TERM DEBT 1989 1988 $ 45,823 $ 58,399 $ 33,421 $ 26,557 26,557 93,019 90,247 45,993 115,666 410,094 448,477 28,795 39,308 271,962 339,441 287,706 291,537 309,194 601,000 601,000 746,000 1,875,000 1,875,000 1,975,000 18,785,000 18,785,000 19,845,000 2,308,451 19,412,557 22,506,070 23,823, 118 12,278,206 12,278,206 11, 150,022 $17, 124,606 17,124,606 17,333,544 527,167 345,562 345,562 10,000 10,000 551 ,970 551 ,970 208,898 907,532 907,532 736,065 12,008 24,813 764,512 622,168 1,690,065 2,386,033 950,044 246,534 13,185,738 17,124,606 33,726,973 32,499,179 $15,494,189 $17, 124,606 $19,412,557 $56,233,043 $56,322,297 See notes to financial statements. -29- S COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES CITY OF PEARLAND, TEXAS Year ended September 30, 1989 GOVERNMENTAL FUND TYPES DEBT CAPITAL GENERAL SERVICE PROJECTS .. REVENUES Taxes - (including penalties and interest) $3,764,635 $2,813,068 Licenses and permits 139,418 Intergovernmental Interest on investments 161,323 138,874 $ 154, 145 Charges for services - Note 1 Fines and forfeitures 265,062 Street assessments 9,002 Capital recovery fee 27,090 Other 175,776 TOTAL REVENUES 4,506,214 2,951,942 190,237 EXPENDITURES Current General government 1,004,376 Public safety 1,590,502 Public works 969,683 Community services 345,586 Capital outlay 127,764 986,205 Debt service Principal retirement 1,271,462 Interest and fiscal charges 1,538,136 TOTAL EXPENDITURES 4,037 ,911 2,809,598 986,205 REVENUES OVER ... (UNDER) EXPENDITURES 468,303 142,344 (795,968) OTHER FINANCING SOURCES (USES) Operating transfers in 322,402 Proceeds from bonds issued Proceeds from certificates of obligations 322,402 REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES 790,705 142,344 (795,968) Fund balances at beginning of year 271,347 622,168 2,386,033 FUND BALANCES AT END OF YEAR $1 ,062,052 $ 764,512 $1,590,065 =_=_= === =__= -30- a TOTALS (MEMORANDUM ONLY) 1989 1988 $6,577,703 $ 5,864,828 139,418 143, 198 12,500 454,342 365,397 858,071 265,062 234,687 9,002 12,209 27,090 192,611 175,776 200,754 7,648,393 7,884,255 1,004,376 1,055,090 1,590,502 1,644,774 969,683 1,850,214 a 345,586 357,068 1,113,969 3,353,529 1,271 ,462 1, 101,333 1 ,538,136 1,403,937 7 ,833,714 10,765,945 (185,321) (2,881 ,690) 322,402 250,000 - 2,000,000 1 - 250,000 322,402 2,500,000 137,081 (381 ,690) 3,279,548 3,661 ,238 $3,416,629 $ 3,279,548 um See notes to financial statements. -31- COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND DEBT SERVICE FUND TYPES CITY OF PEARLAND, TEXAS Year ended September 30, 1989 GENERAL FUND .• VARIANCE - FAVORABLE BUDGET ACTUAL (UNFAVORABLE) REVENUE S Taxes - (including penalties and interest) $3,443,410 $3,764,635 $321,225 Licenses and permits 132,350 139,418 7,068 Intergovernmental 5,000 - 5,000 Interest on investments 47,100 161,323 114,223 Fines and forfeitures 253,200 265,062 11 ,862 Other 180,026 175,776 (4,250) TOTAL REVENUES 4,061 ,086 4,506,214 445, 128 EXPENDITURES Current General government 1, 143,019 1,004,376 138,643 Public safety 1,837,591 1,713,376 124,215 Public works 1,055,790 969,683 86,107 Community services 347,088 350,476 (3,388) Debt service Principal retirement Interest and fiscal charges TOTAL EXPENDITURES 4,383,488 4,037,911 345,577 REVENUES UNDER EXPENDITURES (322,402) 468,303 790,705 OTHER FINANCING SOURCES (USES) Operating transfers in 322,402 322,402 REVENUES AND OTHER SOURCES OVER EXPENDITURES $ -0- 790,705 $790,705 __ ___ _ Fund balances at October 1, 1988 271,347 FUND BALANCES AT SEPTEMBER 30, 1989 $1 ,062,052 __________ a -32- a a a DEBT SERVICE FUND VARIANCE - FAVORABLE a BUDGET ACTUAL (UNFAVORABLE) $2,813,068 $2,813,068 $ - 138,874 138,874 .. 2,813,068 2,951,942 138,874 1,272,590 1,271 ,462 1, 128 1 ,540,478 1 ,538,136 2,342 2,813,068 2,809,598 3 ,470 -0- 142,344 142,344 a $ -0- 142,344 $142,344 a 622,168 a $ 764,512 a a a See notes to financial statements. -33- a a COMBINED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES (ENTERPRISE FUNDS) - 1 of 2 CITY OF PEARLAND, TEXAS Years ended September 30, 1989 and 1988 1989 1988 Operating revenues Water sales and services $1 ,444,960 $1 ,229,523 Sewer charges and services 1,095,092 1,079,763 Sanitation charges and services 987,704 - 3,527,756 2,309,286 Operating expenses Water and sewer treatment Personal services 282,868 282,080 Supplies and other 97 ,234 84,316 Contractual services 491 ,378 433,249 871 ,480 799,645 Water and sewer public works Personal services 115,538 136,090 Contractual services 1 ,800 1 ,200 117,338 137,290 Distribution and collection Personal services 212,045 175,517 •• Supplies and other 56,661 58,058 Contractual services 66,807 51,572 335,513 285,147 Water and sewer accounting Personal services 183,432 137,454 Supplies and other 5,326 4,854 Contractual services 22,578 14,157 211,336 156,465 Water and sewer construction Personal services 88,162 52,674 .. Supplies and other 7,996 8,608 Contractual services 27,387 8,272 123,545 69,554 Sanitation Personal services 260,582 - Supplies and other 171,687 - Contractual services 191 ,497 - 623,766 -0- -34- COMBINED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - "' ALL PROPRIETARY FUND TYPES (ENTERPRISE FUNDS) - 2 of 2 CITY OF PEARLAND, TEXAS 1989 1988 Other expenses 243,968 176,539 2,526,946 1 ,624,640 OPERATING INCOME BEFORE DEPRECIATION 1,000,810 684,646 Depreciation 498,582 437,118 OPERATING INCOME 502,228 247,528 Non-operating revenues (expenses) Miscellaneous revenue 9,961 9,687 Interest revenue 103,942 72,662 Interest expense (122,262) (128,009) (8,359) (45,660) INCOME BEFORE OPERATING TRANSFER 493,869 201,868 Operating transfer out (322,402) (250,000) NET INCOME (LOSS) 171,467 (48, 132) Retained earings at beginning of year 736,065 784,197 RETAINED EARNINGS AT END OF YEAR $ 907,532 $ 736,065 i i a See notes to financial statements. -35- COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES - 1 of 2 .. CITY OF PEARLAND, TEXAS Year ended September 30, 1989 1989 Cash flows from operating activities Cash received from customers and users $3,476,050 Cash paid to suppliers and employees (2,495,063) Interest received 88,390 Interest paid (112,519) Operating transfer out (322,403) Net cash provided (used) by operating activities 634,455 .� Cash flows from investing activities Purchase of fixed assets (117,999) Cash flows from financing activities Principal payments - bonds (100,000) Noncash transactions affecting financial position Contributions of fixed assets from government 1,128,184 Acquisition of fixed assets through �. government capital contributions (1 ,128,184) Net effect of noncash transactions -0- Net increase (decrease) in cash 416,456 Cash, October 1 1 ,274,880 CASH BALANCE AT �- SEPTEMBER 30, 1989 $1 ,691 ,336 -36- COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES - 2 of 2 CITY OF PEARLAND, TEXAS Year ended September 30, 1989 1989 Net income $171,467 Adjustments to reconcile net income to net cash provided (used) by operating activities Depreciation expense 498,582 (Increase) decrease in interest receivable (15,552) (Increase) decrease in accounts receivable (61,668) Net increase in customer deposits 14,934 Increase (decrease) in accounts payable 31,390 Increase in compensated absences payable 20, 148 Increase (decrease) in due to other funds (39,846) Increase (decrease) in accrued interest payable from restricted accounts 15,000 Total adjustments 462,988 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $634,455 See notes to financial statements. -37- NOTES TO FINANCIAL STATEMENTS a CITY OF PEARLAND, TEXAS September 30, 1989 ORGANIZATION The City of Pearland, Texas was incorporated in December, 1959 and adopted a "Home Rule Charter" on February 6, 1971 , which provides for a "Council- Manager" form of city government. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. REPORTING ENTITY In defining the reporting entity the City has considered the following .- criteria: (1) oversight responsibility which includes (a) financial interdependency, (b) selection of governing authority, (c) designation of management, (d) ability to significantly influence operations, and (e) accountability for financial matters, (2) scope of public service and (3) special financing relationships. The reporting entity is composed of the operational units (General, Debt Service, Capital Projects, and Enterprise Funds) of the City. The governmental units listed below were considered but excluded, because they did not materially meet the criteria listed above. �. Pearland Independent School District Harris County Hospital District Brazoria County Clear Creek Independent School District Harris County Port of Houston Authority Harris County Flood Control Of the component units considered for inclusion in the reporting enti- ty only two had a positive response to the first criteria presented above. The Pearland Volunteer Fire Department and the Pearland Area Emergency Service are dependent on the City for financial support which falls under oversight responsibility in the criteria listed above. The City includes as a part of the reporting unit the financial support it provides the department but does not report its operations because the City does not select its governing authority or management and does not significantly influence operations. Also, the entities are not accountable to the City for financial matters and the entities scope of public service is greater than the City of Pearland. Therefore in the professional opinion of the City's management, these two entities are not included in the reporting entity. -38- NOTES TO FINANCIAL STATEMENTS - 2 CITY OF PEARLAND, TEXAS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. FUND ACCOUNTING The City of Pearland 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 manage- ment 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 re- porting 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. Funds are classified into two categories: governmental and proprietary. Each category, in turn, is divided into separate "fund types" . The following is a description of the fund types and the account groups used by the City in the accompanying financial statements: GOVERNMENTAL FUND TYPES General Fund The General Fund is used to account for all financial transactions which are not accounted for in another fund. The principal sources of revenue of the General Fund are property taxes, sales and use taxes, franchises, and fines and forfeitures. Expenditures are for general government, public safety, public works and other community services. Debt Service Fund The Debt Service Fund is used to account for resources for and the pay- ment of interest and principal on all general obligation debts of the City. The primary source of revenue for debt service is general pro- perty taxes. Capital Projects Fund The Capital Projects Fund is used to account for the receipt and ex- penditure of resources for acquisition and construction of major capi- tal facilities. The principal resources of the Capital Projects Fund are capital grants, certificates of obligation and proceeds from the sale of bonds. -39- a NOTES TO FINANCIAL STATEMENTS - 3 CITY OF PEARLAND, TEXAS a 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. FUND ACCOUNTING (continued) ,. PROPRIETARY FUND TYPES Enterprise Fund (Water and Sewer) — The Water and Sewer Fund is used to account for operations of the Water and Sewer Department. The fund is intended to be self-supporting through user charges. Enterprise Fund (Sanitation) as The Sanitation Fund is used to account for operations which are inten- ded to be self-supporting through user charges. The fund provides sanitation services to the citizens of Pearland. (During the fiscal year 1988-1989 the City reclassified the Sanitation activities as an Enterprise Fund. In the past Sanitation activities were part of the General Fund.) .� ACCOUNT GROUPS a General Fixed Assets This account group is established to account for the fixed assets owned by the City exclusive of those relating to Proprietary Fund operations. Expenditure transactions to acquire general fixed assets occur in the General Fund and Capital Projects Fund. a General Long-Term Debt This account group is used to account for the City's liability for general obligation bonds, certificates of obligation, notes payable, and time warrants due at varying dates through the year 2003. C. BASIS OF ACCOUNTING — The City employs the modified accrual basis of accounting in all funds except the Enterprise Funds. The modified accrual basis recognizes — revenues that are susceptible to accrual when measurable and available, and recognizes expenditures as incurred except for unmatured principal and interest on general long-term debt. The Enterprise Fund uses the accrual basis of accounting recognizing revenues when earned and expenses when incurred. a -40- .1111 NOTES TO FINANCIAL STATEMENTS - 4 CITY OF PEARLAND, TEXAS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. BASIS OF ACCOUNTING (continued) The accounting procedures and policies relating to specific items are described as follows: 1. Unbilled revenues for water, sewer and sanitation services are accrued when earned. 2. General property taxes are recorded when they become available. Property taxes receivable have been recorded as deferred revenues at September 30, 1989. Property taxes collected within sixty days subsequent to September 30, 1989 have not been recorded as revenue as the amount was not considered material . The general property tax rate is required to be levied by September 15 each year. Taxes become due on October 1 and uncol- lected taxes are delinquent on February 1 following the tax year. The City' s tax lien exists from January 1 (the assessment date) each year until the taxes are paid. The procedure for collection of delinquent taxes is to send two delinquent notices and a letter and then refer the delinquent accounts to the Tax Attorney for legal action. The Home Rule Charter requires fore- closure proceedings no later than two years after taxes first become delinquent . There is an 8 percent penalty plus 6 percent interest on delinquent MEI taxes. There are no discounts allowed on taxes. 3. Sales and use taxes and franchise revenue are recorded when re- ceived since normally they are not measurable until received. 4. Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt ser- •• vice fund for payment early in the following year. 5. Capital recovery fees earned are charges for capital improvements required by new growth and construction. The fees are recognized in the accounting period in which they become both measurable and available to finance expenditures of the fiscal period. -41- NOTES TO FINANCIAL STATEMENTS - 5 CITY OF PEARLAND, TEXAS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. BUDGETS Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general and debt service funds. All annual appropriations lapse at fiscal year end. Formal budgetary integration is not employed for the Capital Projects Fund because effective budgetary .. control is alternatively achieved through general obligation bond indenture provisions and Council authorization for individual capital projects. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditure of re- sources are recorded to reserve that portion of the applicable appro- priation - is utilized in the governmental funds. Encumbrances out- standing at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. E. CASH AND INVESTMENTS Cash includes amounts in demand deposits as well as certificates of deposit. Statutes authorize the City to invest in direct obligations of the U.S. Government and fully collateralized certificates of deposit and other time deposits. Investments are stated at cost. F. PREPAID EXPENDITURES Payments made to vendors for services that will benefit periods beyond September 30, 1989, are recorded as prepaid items. G. 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. -42- N. NOTES TO FINANCIAL STATEMENTS - 6 CITY OF PEARLAND, TEXAS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued) ' H. FIXED ASSETS Fixed assets are recorded at historical cost or at market value at the date donated. Costs incurred for the purchase or construction of gen- eral fixed assets are recorded as expenditures in the General and Capital Projects Funds. All such costs are capitalized in ,. the General Fixed Assets Account Group. Public domain infrastructure, such as bridges, roads, drainage systems, sidewalks, lighting systems, etc. , is capitalized. Amounts expended for property, plant and equip- ment in the Enterprise Funds are capitalized in the fixed asset accounts within that fund. Assets in the general fixed assets account group are not depreciated. Allowance for depreciation has been provided for plant and equipment of the Enterprise Funds using the straight-line method over the following estimated useful lives of the assets: Estimated Asset Useful Life m. Vehicles 3 years Office equipment 5 to 10 years Machinery and equipment 5 to 10 years +� Water and sewer system 3 to 50 years I. COMPENSATED ABSENCES mei Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expen- diture and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the general long-term debt account group. No expenditure is reported for these amounts. Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. In accordance with the provisions of Statement of Financial Accounting Standards No. 43, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. um -43- NOTES TO FINANCIAL STATEMENTS - 7 CITY OF PEARLAND, TEXAS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) J. LONG-TERM OBLIGATIONS Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the following year. For other long-term obliga- tions, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. K. 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 appropriable for expenditure or legally segregated for a specific future use. Desig- nated fund balances represent tentative plans for future use of financial resources . L. INTERFUND TRANSACTIONS Transactions that constitute reimbursements to a fund for expenditures/ expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. M. "MEMORANDUM ONLY" CAPTIONS The "Memorandum Only" captions on the columns of the combined state- ments mean totals are presented for overview informational purposes only, and they do not fairly present financial position or results of operations for the City as a whole in conformity with generally accepted accounting principles. -44- NOTES TO FINANCIAL STATEMENTS - 8 CITY OF PEARLAND, TEXAS 2. LEGAL COMPLIANCE - BUDGETS a The City follows procedures in establishing the budgetary data reflected _ in the financial statements as follows: A. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1 which must be adopted before the preceding September 15. The operating budget includes proposed expenditures and the means of financing them. B. Public hearings are conducted to obtain taxpayer comments. C. The budget is legally enacted by passage of an ordinance. D. The City Manager is authorized to transfer budgeted amounts between object classes within departments within any fund. However any •. changes in the total approved budget for each department (I.E. , the legal level of budgetary control) must be approved by the City Council . E. Budgeted amounts as shown in this report are as originally adopted or as amended during the year by the City Council and City Manager. F. Appropriations lapse at year-end. G. Several supplemental budgetary appropriations were necessary during the year ended September 30, 1989. a a a a -45- a NOTES TO FINANCIAL STATEMENTS - 9 CITY OF PEARLAND, TEXAS a 3. DEPOSITS AND INVESTMENTS At September 30, 1989, the amount of the City' s deposits was $5,368,647 a and the bank balance was $5,711,026. Of the bank balance, $100,000 was covered by federal depository insurance. The remainder was covered by collateral held in the City' s name in the trust department of banks (other _ than the City' s depository bank). The securities pledged as collateral were obligations of the U.S. Treasury, federal agencies and local governments. The City had no other investments. 4. RECEIVABLES Debt Capital General Service Projects Enterprise Total a Receivables Taxes $245,832 $245,832 Accounts 336 $45,705 $545,153 591 ,194 Interest 20,453 $2,181 33,425 26,224 82,283 Intergovernmental 28,795 28,795 Gross receivables 266,621 2,181 79,130 600,172 948, 104 a Less allowance for uncollectibles - - - 5,000 5,000 Net receivables $266,621 $2,181 $79,130 $595,172 $943,104 The taxes receivable account represents delinquent taxes. No allowance for uncollectible has been recorded for taxes receivable since a tax lien is attached to property when the taxes levied are not paid. a a -46- mm NOTES TO FINANCIAL STATEMENTS - 10 CITY OF PEARLAND, TEXAS mou 5. RESTRICTED ASSETS As of September 30, 1989, the City held restricted assets for the following purposes: Description Amount General Fund Accrued compensated absences $ 40,000 Municipal court escrow 17,760 Police drug enforcement program 9,719 a' TOTAL GENERAL FUND $ 67,479 Enterprise Fund Meter deposits $136,962 Revenue bond interest, sinking and reserve fund 345,562 Accrued compensated absences 35,000 TOTAL ENTERPRISE FUND $517,524 6. CHANGES IN FIXED ASSETS m. The changes in general fixed assets during the year ended September 30, 1989 are summarized as follows: Balance at Balance at Oct. 1 , 1988 Additions Retirements Sept. 30, 1989 Land $ 1 ,102,848 $ 57,236 $ 1 ,045,612 Buildings 6,283,114 7, 190 6,275,924 Improvements 3,713,800 $3,520,679 142,070 7,092,409 Equipment 2,841 ,607 178,637 722,863 2,297,381 Construction in progress 3,392,175 986,205 3,965,100 413,280 TOTAL $17,333,544 $4,685,521 $4,894,459 $17,124,606 At September 30, 1989, there were two projects that were in progress. The projects were (1) Pearland Facilities Plan which is study on the impact of new growth on the water and sewer system and (2) a drainage study on various drainage problems in the City. -47- nn NOTES TO FINANCIAL STATEMENTS - 11 CITY OF PEARLAND, TEXAS 6. CHANGES IN FIXED ASSETS (continued) The changes in Enterprise Fund fixed assets during the year ended September 30, .. 1989 are summarized as follows: Balance at Balance at Oct. 1 , 1988 Additions Sept. 30, 1989 Land $ 189,071 $ 57,236 $ 246,307 Equipment 284, 109 635,422 919,531 Buildings, improvements and equipment 14,831 ,430 553,525 15,384,955 15,304,610 1,246,183 16,550,793 Less allowance for depreciation 2,844,530 498,582 3,343,112 TOTAL $12,460,080 $ 747,601 $13,207,681 Sources for additions to Enterprise Fund fixed assets included contributions from the following (recorded as additions to contributed capital) : Municipality $ 1,128, 184 Contributed capital at October 1, 1988 11,150,022 CONTRIBUTED CAPITAL AT SEPTEMBER 30, 1989 $12,278,206 7. ACCRUED COMPENSATED ABSENCES As of September 30, 1989 accrued vacation pay and sick pay were as follows: General Enterprise Description Fund Fund Total Vacation pay $ 48,559 $ 17,362 $ 65,921 Sick pay 285,869 133,304 419,173 Less amounts payable from restricted assets (40,000) (35,000) (75,000) BALANCE $294,428 $115,666 $410,094 -48- NOTES TO FINANCIAL STATEMENTS - 12 CITY OF PEARLAND, TEXAS 8. DEFERRED REVENUES Deferred revenue has been recorded as of September 30, 1989 as follows: Fund Description Amount General Delinquent taxes $245,832 a Capital Projects Street assessments 45,705 TOTAL $291,537 v 9. LONG-TERM DEBT The following is a summary of long-term debt transactions of the City for the year ended September 30, 1989: General Long-Term Debt Revenue Bonds Total a Long-term debt at Oct. 1, 1988 $20,684,019 $2,075,000 $22,759,019 Debt retired (1 ,271 ,462) (100,000) (1 ,371 ,462) a TOTAL $19,412,557 $1 ,975,000 $21,387,557 Long-term debt at September 30, 1989 was comprised of the following issues: Principal Balance Description Sept. 30, 1989 General Obligation Bonds 1964 Waterworks and Sanitary Sewer System Improvement Bonds due in annual installments of $35,000 to $55,000 through June 1, 1994, with interest rates ranging from 3.80 to 3.90 percent. $ 265,000 1966 General Obligation Bonds due in annual installments of $15,000 to $100,000 through June 1, 1995, with interest rates ranging from 4.30 to 4.40 percent. 275,000 a 1968 General Obligation Bonds due in annual installments of $25,000 to $50,000 through February 1, 1995, with interest rates ranging from 5.00 to 5.25 percent . 270,000 -49- ma NOTES TO FINANCIAL STATEMENTS - 13 CITY OF PEARLAND, TEXAS 9. LONG-TERM DEBT (continued) Principal -� Balance Description Sept. 30, 1989 1975 General Obligation Bonds due in annual installments of $30,000 to $65,000 through February 1, 1993, with interest rates ranging from 5.90 to 6.50 percent. 245,000 1978 Permanent Improvement Bonds due in annual installments of $30,000 to $250,000 through March 1, 1997, with interest rates ranging from 4.90 to 5.50 percent. 1,400,000 $12,060,000 Refunding Bonds, Series 1985 due in annual installments of $205,000 to $1,280,000, with interest rates ranging from 5.50 to 8.80 percent. 10,055,000 1986 Public Improvement Bonds due in annual installments of $50,000 to $500,000 through March 1, 2003, with interest rates ranging from 6.50 to 8.50 percent. 4,325,000 1988 Public Improvement Bonds due in annual ... installments of $50,000 to $ 250,000, with interest rates ranging from 6.80 to 8.80 percent. 1 ,950,000 18,785,000 .. Certificates of Obligation 1976A Road Materials Purchase Certificates of Obligation due in annual installments of $5,000 to $40,000, with an interest rate of 6.25 percent. 1,000 1981 Water Works System Certificates of Obligation due in annual installments of $100,000, with interest rates ranging from 9.25 to 9.75 percent. 400,000 1988 Landfill Certificates of obligation due in annual installments of $50,000 with an interest rate of 6.4 percent. 200,000 601,000 Notes Payable Note payable to Pearland State Bank for purchase of rescue truck due in monthly installments of $3,392, with interest at 7.00 percent. 26,557 TOTAL GENERAL LONG-TERM DEBT 19,412,557 -50- NOTES TO FINANCIAL STATEMENTS - 14 CITY OF PEARLEND, TEXAS 9. LONG-TERM DEBT (continued) Principal Balance Description Sept. 30, 1989 Revenue Bonds 1978 Water and Sewer Bonds due in annual installments of $90,000 to $200,000, with interest rates ranging from 5.40 to 6.40 percent. 1 ,975,000 TOTAL LONG-TERM DEBT $21 ,387,557 The annual requirements to amortize general obligation bonds and certificates of obligation outstanding at September 30, 1989, including interest payments of $10, 196,360, are as follows: Year Ending General Long- Revenue Sept. 30 Term Debt Bonds Total 1990 $ 2,675,007 $ 216,910 $ 2,891 ,917 1991 2,681,947 221,510 2,903,457 1992 2,675,287 225,570 2,900,857 1993 2,658,960 224,090 2,883,050 1994 2,610,137 222,090 2,832,227 1995-1999 10,956,613 1,134,800 12,091 ,413 2000-2003 4,417,216 663,780 5,080,996 $28,675, 167 $2,908,750 $31,583,917 The amount of $764,512 is available in the Debt Service Fund to service the general obligation bonds. The amount of $345,561 in the Enterprise Fund is restricted to service revenue bonds. Debt service requirements of revenue bonds is provided from net revenue to the Enterprise Fund. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. 10. PRIOR-YEAR DEFEASANCE OF DEBT In prior years, the City defeased certain general obligation and other bonds �• by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City' s financial statements. At September 30, 1989, $9,425,000 of bonds outstanding are considered defeased. -51- 41111 NOTES TO FINANCIAL STATEMENTS - 15 CITY OF PEARLAND, TEXAS 11. EMPLOYEE RETIREMENT SYSTEM The City of Pearland provides pension benefits for all of its full-time employees through a nontraditional, joint contributary, defined contribution plan in the state-wide Texas Municipal Retirement System (TMRS) , one of over 500 administered by TMRS, an agent multiple-employer public employee retirement system. Statewide Texas Municipal Retirement System Plan Description and Provisions All of the City' s full-time employees participate in the Texas Municipal — Retirement System, a nontraditional, joint contributary, defined contribution plan. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City-financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In addition, the City can grant another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee' s accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in MIR existence and if the employee's salary had always been the average of his salary in the last three years. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions .. and the employer-financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 10 or more years of service or with 25 or more years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 10 years, but he must leave his accumulated contributions in the plan. If a member withdraws his own money, he is not entitled to the employer-financed monetary credits, even if he was vested. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. -52- NOTES TO FINANCIAL STATEMENTS - 16 "' CITY OF PEARLAND, TEXAS 11. EMPLOYEE RETIREMENT SYSTEM (continued) Description of Funding Policy The contribution rate for the employees is 5%, and the City matching percent is currently 200%, both as adopted by the governing body of the City. Under the state law governing TMRS, the City contribution rate is annually determined by the actuary. Part of the City contribution rate (the normal cost) is to fund the currently accruing monetary credits, with the other part (the prior service contribution rate) calculated as the level percent of payroll needed to amortize the unfunded actuarial liability over the remainder of the plan's 25-year _ amortization period. When the City periodically adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1989. The unit credit actuarial cost method is used for determining the City contribution rate. Contributions are made monthly by both the employees and the City. Since the City needs to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. The City' s total payroll in fiscal year 1989 was $2,858,664, and the City' s contributions were based on a payroll of $2,657,300. Both the City and the covered employees made the required contributions, amounting to $144,239 (5.09% of covered payroll for the months in calendar year 1988 and 5.56% for the months in calendar year 1989) for the City and $132,865 (5%) for the employees. The City adopted changes in the plan since the previous actuarial valuation, which had the effect of decreasing the City's contribution rate for 1989 by 0.01% of payroll. Funding Status and Progress Even though the substance of the City' s plan is not to provide a defined benefit in some form, some additional voluntary disclosure is appropriate due to the nontraditional nature of the defined contribution plan which had an initial unfunded pension benefit obligation due to the monetary credits granted by the City for services rendered before the plan began and which can have additions to the unfunded pension benefit obligation through the periodic adoption of increases in benefit credits and benefits. Statement No. 5 of the Governmental Accounting Standards Board (GASB 5) defines pension benefit obligation as a standardized disclosure measure of the actuarial present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of public employee pension plans, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee pension plans. -53- NOTES TO FINANCIAL STATEMENTS - 17 CITY OF PEARLAND, TEXAS 11. EMPLOYEE RETIREMENT SYSTEM (continued) Funding Status and Progress (continued) The pension benefit obligation shown below is similar in nature to the standardized disclosure measure required by GASB 5 for defined benefit plans except that there is no need to project salary increases since the benefit credits earned for service to date are not dependent upon future salaries. The calculations were made as part of the annual actuarial valuation as of December 31, 1988. Because of the money- purchase nature of the plan, the interest rate assumption, currently 8.5% per year, does not have as much impact on the results as it does for a defined benefit plan. Market value of assets is not determined for each City' s plan, but the market value of assets for TMRS as a whole was 103.6% of book value as of December 31, 1988. Pension Benefit Obligation Annuitants currently receiving benefits $ 370,675 Terminated employees 296,409 Current employees Accumulated employee contributions including allocated invested earnings 1,002 ,820 Employer-financed vested 1 ,050,499 Employer-financed nonvested 551 ,886 Total $3,272,289 Net Assets Available for Benefits, at Book Value $2,440,324 Unfunded Pension Benefit Obligation $ 831,965 The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined City contribution rate are the same as those used to compute the pension benefit obligation. The numbers above reflect changes in actuarial assumptions since the previous actuarial valuation, which had the effect of decreasing the pension benefit obligation by $143,519. Because of the one-year lag between the actuarial valuation date and the calendar year when the newly calculated rate goes into effect, the new actuarial assumptions will first affect the 1990 contribution rate for the City. The numbers above also reflect the adoption of changes in the plan since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by $27,773. -54- NOTES TO FINANCIAL STATEMENTS - 18 CITY OF PEARLAND, TEXAS 11. EMPLOYEE RETIREMENT SYSTEM (continued) Trend Information Trend information for the three years ended December 31, 1986, 1987 and 1988, respectively, is as follows: available assets were sufficient to fund 66.84 percent, 69.08 percent and 74.58 percent of the pension benefit obligation. The unfunded pension benefit obligation represented 31.43 percent, 33.09 percent and 29.02 percent of the annual payroll for employees covered by TMRS for 1986, 1987 and 1988, respectively. Presenting the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. In addition, for the three years ended December 31, 1986, 1987 and 1988 the City's contributions to the system were 4.40 percent, 4.94 percent and 5.56 percent, respectively, of annual covered payroll . Ten-year historical trend information presenting the TMRS progress in accumulating sufficient assets to pay benefits when due is presented in the TMRS December 31, 1988 Comprehensive Annual Financial Report. 12. LITIGATION As of September 30, 1989, the City was either a defendant or co-defendant in several lawsuits. It is the opinion of City Management and legal counsel that any ultimate liability to the City from these lawsuits will not be material. -55- I I I I I I I I INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES I r 1 I r 1 I 1 f 1 -57- a s a a a GENERAL FUND The General Fund accounts for the resources used to finance the basic operations of the City. It is the basic fund of the City and covers all activities for which a separate fund has not been established . a a a a -59- a GENERAL FUND a COMPARATIVE BALANCE SHEETS CITY OF PEARLAND, TEXAS September 30, 1989 and 1988 a 1989 1988 ASSETS Cash - including certificates of deposit $1,455,301 $ 641,357 Receivables - less allowances for uncollectibles Taxes 245,832 253,055 Accounts 336 1,000 Accrued interest 20,453 5,700 Due from other funds - 39,308 Prepaid expenditures 12,008 24,813 Restricted assets - cash 67,479 50,678 TOTAL ASSETS $1,801,409 $1 ,015,911 =avx cm LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 12,576 $ 18,622 Accrued salaries 90,247 45,993 Accrued compensated absences 294,428 376,216 Due to other funds 28,795 - Payable from restricted assets Accrued compensated absences 40,000 30,000 Police drug enforcement program 9,719 6, 123 Municipal court escrow 17,760 14,555 Deferred revenue 245,832 253,055 TOTAL LIABILITIES 739,357 744,564 FUND BALANCES Reserved For prepaid expenditures 12,008 24,813 Unreserved Designated for future years expenditures 100,000 - Undesignated 950,044 246,534 TOTAL FUND BALANCES 1 ,062,052 271,347 TOTAL LIABILITIES AND FUND BALANCES $1 ,801,409 $1,015,911 a -61- GENERAL FUND STATEMENT OF REVENUES - BUDGET AND ACTUAL *� CITY OF PEARLAND, TEXAS Year ended September 30, 1989 a 1989 VARIANCE - FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues _ Taxes $3,408,410 $3,693,215 $284,805 $3,302,040 Penalties and interest 35,000 71,420 36,420 60,303 Licenses and permits 132,350 139,418 7,068 143, 198 _ Intergovernmental 5,000 - (5,000) 12,500 Interest on investments 47, 100 161,323 114,223 63, 184 Sanitation income - - - 858,071 Fines and forfeitures 253,200 265,062 11,862 234,687 Other 180,026 175,776 (4,250) 200,754 TOTAL REVENUES $4,061,086 $4,506,214 $445, 128 $4,874,737 == ___ a a -62- um GENERAL FUND STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL - BY FUNCTION " CITY OF PEARLAND, TEXAS Year ended September 30, 1989 1989 VARIANCE - ' FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL .. General government City council $ 40,551 $ 32, 117 $ 8,434 $ 31,469 City manager 80,440 69,798 10,642 98,476 _ City secretary 60,519 59,908 611 60,495 Finance 51,763 57,915 (6, 152) 67,986 Tax 123,507 139,080 (15,573) 123,536 Legal 65,000 44,212 20,788 60,246 " Municipal court 119,238 110,387 8,851 80,347 City hall 116,327 112,761 3,566 145,011 Other 485,674 378,198 107,476 387,524 TOTAL GENERAL GOVERNMENT 1, 143,019 1,004,376 138,643 1,055,090 Public safety Police 1,381,775 1,296,526 85,249 1,317,699 '.• Fire 115,451 108,912 6,539 133,134 Animal shelter 47,951 35,341 12,610 48,886 Communication 39,556 37,260 2,296 21,434 " Emergency medical services 232,783 217,739 15,044 236,295 Civil service 20,075 17,598 2,477 17,757 TOTAL PUBLIC SAFETY 1,837,591 1,713,376 124,215 1,775,205 mi Public works Administration 39,422 41,950 (2,528) 58,473 Custodial services 54,656 54,792 (136) 57, 193 Engineering 53,542 32,412 21, 130 120, 143 Inspection 131, 153 135,532 (4,379) 157,554 Community services 23, 118 25,390 (2,272) 18,615 mg City garage 50, 152 39,038 11, 114 66, 707 Service center 54, 100 54, 736 (636) 46,381 Street and drainage 649,647 585,833 63,814 746,677 Sanitation - - - 560,141 TOTAL PUBLIC WORKS 1,055,790 969,683 86, 107 1,831,884 Community services Library 12,250 11,697 553 11,075 Parks, recreation and cemetery 334,838 338,779 (3,941) 383,219 TOTAL COMMUNITY SERVICES 347,088 350,476 (3,388) 394,294 TOTAL EXPENDITURES $4,383,488 $4,037,911 $345,577 $5,056,473 -63- GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 1 of 6 CITY OF PEARLAND, TEXAS Year ended September 30, 1989 1989 - VARIANCE - FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL City Council Personal services $ 21,051 $ 18,600 $ 2,451 $ 18,225 Supplies 2,000 815 1,185 1, 182 Contractual services 8,000 3,000 5,000 1, 188 Memberships and subscriptions 3,500 2,530 970 2,436 Travel and training 6,000 7,172 (1,172) 8,438 - 40,551 32, 117 8,434 31,469 City Manager Personal services 72,940 62,542 10,398 86, 146 Supplies 1,250 662 588 956 Contractual services 600 352 248 661 Memberships and subscriptions 650 1,204 (554) 1,277 Travel and training 5,000 5,038 (38) 9,436 80,440 69,798 10,642 98,476 City Secretary Personal services 51,219 53,260 (2,041) 51,631 Supplies 1,000 562 438 990 Contractual services 7,200 5,345 1,855 7,467 Memberships and subscriptions 300 209 91 173 Travel and training 800 532 268 234 60,519 59,908 611 60,495 Finance Personal services 38,913 45,076 (6, 163) 60,808 Supplies 2,000 1,685 315 1, 157 Contractual services 8,750 9,208 (458) 4,415 Memberships and subscriptions 300 212 88 210 Travel and training 1,800 1 ,734 66 1,396 51,763 57,915 (6, 152) 67,986 -64- GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 2 of 6 1989 VARIANCE - FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL "' Tax Personal services 49,062 50,030 (968) 48,541 Supplies 200 141 59 111 Contractual services 72,875 87,534 (14,659) 73,548 Memberships and subscriptions 470 475 (5) 336 Travel and training 900 900 - 1,000 123,507 139,080 (15,573) 123,536 Legal Personal services - - - 29,798 Supplies 700 - 700 66 Contractual services 57,000 40,875 16, 125 24,632 Memberships and subscriptions 2,900 3,337 (437) 2,926 m, Travel and training 4,400 - 4,400 2,824 65,000 44,212 20,788 60,246 Municipal Court Personal services 96,713 94,480 2,233 68,636 Supplies 2,750 1,602 1, 148 1,438 Contractual services 18,467 13,456 5,011 9, 729 Memberships and subscriptions 175 211 (36) 103 Travel and training 800 638 162 441 Capital outlay 333 - 333 - 119,238 110,387 8,851 80,347 City Hall Personal services 15,027 17,234 (2,207) 59,205 Supplies 10,850 10,277 573 8,878 Contractual services 89,950 83,923 6,027 76,490 Travel and training 500 1 ,327 (827) 438 116,327 112,761 3,566 145,011 Other Requirements 485,674 378,198 107,476 387,524 TOTAL GENERAL GOVERNMENT 1, 143,019 1,004,376 138,643 1,055,090 v. -65- GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 3 of 6 1989 VARIANCE - FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Police Service _ Personal services 1, 116,377 1,075,063 41,314 1,089,080 Supplies 52,600 45,609 6,991 46,323 Contractual services 104,880 112,220 (7,340) 130,069 Memberships and subscriptions 2,000 2,330 (330) 1,986 ._ Travel and training 27,000 7,386 19,614 3,573 Capital outlay 78,918 53,918 25,000 46,668 1,381,775 1,296,526 85,249 1,317,699 .- Fire Service Personal services 11,401 7,050 4,351 33,750 Supplies 14,050 12,726 1,324 13,452 Contractual services 46,200 67,273 (21,073) 57,630 Memberships and subscriptions 1,250 1,044 206 1,277 Travel and training 29,000 8,718 20,282 7,718 Capital outlay 13,550 12,101 1,449 19,307 115,451 108,912 6,539 133, 134 Animal Shelter Personal services 27, 126 22,996 4, 130 31,786 Supplies 6,825 4,000 2,825 5,480 Contractual services 11,900 8,063 3,837 11,258 Memberships and subscriptions 100 20 80 20 Travel and training 2,000 262 1,738 342 47,951 35,341 12,610 48,886 Communication Personal services 28,356 29,004 (648) 2,400 .. Supplies 200 365 (165) 3 Contractual services 10,900 7,084 3,816 19,031 Memberships and subscriptions 100 6 94 - Travel and training - 801 (801) - .. 39,556 37,260 2,296 21,434 Emergency Medical Services Personal services 23,083 23, 124 (41) 22,121 Supplies 24,200 21,248 2,952 22,531 Contractual services 111,500 116,512 (5,012) 127, 187 Travel and training 14,000 - 14,000 - Capital outlay 60,000 56,855 3,145 64,456 232,783 217,739 15,044 236,295 -66- GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 4 of 6 1989 VARIANCE - FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL r+ Civil Service Personal services 12,000 6,021 5,979 9,802 Supplies 1,500 105 1,395 1,654 Contractual services 4,325 9,702 (5,377) 3,871 Memberships and subscriptions 550 181 369 545 Travel and training 1,700 1,589 111 1,885 20,075 17,598 2,477 17,757 TOTAL PUBLIC SAFETY 1,837,591 1,713,376 124,215 1,775,205 Public Works Administration Personal services 35,147 38,722 (3,575) 55,458 Supplies 350 168 182 133 Contractual services 675 394 281 333 Memberships and subscriptions 650 836 (186) 740 Travel and training 2,600 1,830 770 1 ,809 39,422 41,950 (2,528) 58,473 Custodial Services Personal services 45,761 47,705 (1,944) 49,938 Supplies 7,895 7,087 808 6,611 Contractual services 1 ,000 - 1,000 644 54,656 54,792 (136) 57,193 Engineering Personal services 28,332 27,984 348 104,290 Supplies 2,400 630 1,770 1,751 Contractual services 20,860 2,975 17,885 12,198 Memberships and subscriptions 250 294 (44) 100 Travel and training 1 ,700 529 1 ,171 1,804 53,542 32,412 21,130 120, 143 Inspection Personal services 123,503 128,392 (4,889) 149,238 Supplies 3,200 3,087 113 3,794 Contractual services 1,450 2,626 (1,176) 1,945 Memberships and subscriptions 1,200 858 342 1,826 Travel and training 1 ,800 569 1 ,231 751 131,153 135,532 (4,379) 157,554 -67- GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 5 of 6 S 1989 VARIANCE - FAVORABLE 1988 - BUDGET ACTUAL (UNFAVORABLE) ACTUAL Community Services Personal services 16,868 19,089 (2,221) 12,877 Supplies 3,550 2,000 1,550 5, 738 Contractual service 1,700 3,298 (1,598) - Membership and subscriptions 250 253 (3) - Travel and training 750 750 - - -• 23, 118 25,390 (2,272) 18,615 City Garage Personal services 37,602 28,804 8,798 56,020 Supplies 7,600 6,972 628 5,940 Contractual services 1,200 3,240 (2,040) 4,495 Memberships and subscriptions 250 4 246 30 .. Travel and training 3,500 18 3,482 222 50, 152 39,038 11, 114 66,707 Service Center Supplies 14,900 18,319 (3,419) 12,746 Contractual services 36,200 36,417 (217) 33,635 Travel and training 3,000 - 3,000 - 54, 100 54,736 (636) 46,381 Street and Drainage '°' Personal services 215,997 234,005 (18,008) 221,428 Supplies 104,200 107,951 (3,751) 105,721 Contractual services 317,250 243,833 73,417 419,440 Memberships and subscriptions 50 - 50 - Travel and training 12,150 44 12,106 88 649,647 585,833 63,814 746,677 Sanitation Personal services - - - 247, 163 Supplies - - - 153,056 - Contractual services - - - 129,933 Capital outlay - - - 29,989 - - - 560,141 - TOTAL PUBLIC WORKS 1,055,790 969,683 86, 107 1,831,884 Library .. Supplies 950 818 132 1,372 Contractual services 11,300 10,879 421 9,703 12,250 11,697 553 11,075 -68- a a GENERAL FUND a SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - BY OBJECT - 6 of 6 a 1989 VARIANCE - a FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Parks, recreation and beautification Personal services 142,938 138,693 4,245 150,543 Supplies 56,900 56,510 390 61 ,177 Contractual services 120,250 137,920 (17,670) 133,441 Memberships and subscriptions 350 195 155 285 Travel and training 9,400 571 8,829 547 Capital outlay 5,000 4,890 110 37,226 334,838 338,779 (3,941) 383,219 Mil TOTAL COMMUNITY SERVICES 347,088 350,476 (3,388) 394,294 TOTAL EXPENDITURES $4,383,488 $4,037,911 $345,577 $5,056,473 a a a a -69- GENERAL FUND SCHEDULE OF DELINQUENT TAXES RECEIVABLE CITY OF PEARLAND, TEXAS September 30, 1989 TAX DELINQUENT YEAR TAXES 1988 $106,607 1987 55,918 1986 44,420 1985 15,976 .. 1984 7,949 1983 11,001 1982 1,402 1981 767 1980 565 1979 574 Prior 653 TOTAL $245,832 a a -70- DEBT SERVICE FUND This fund is used to account for the accumulation of resources for and the payment of principal and interest on general long-term debt of the City. i -71- a a DEBT SERVICE FUND a COMPARATIVE BALANCE SHEETS "" CITY OF PEARLAND, TEXAS September 30, 1989 and 1988 a 1989 1988 a ASSETS Cash - including certificate of deposit $762,331 $614,607 Accrued interest receivable 2,181 7,561 a TOTAL ASSETS $764,512 $622,168 a FUND BALANCES FUND BALANCES Reserved for debt service $764,512 $622, 168 a a a a a a -73- DEBT SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CITY OF PEARLAND, TEXAS Years ended September 30, 1989 and 1988 1989 1988 _ REVENUES Taxes $2,813,068 $2,502,485 Interest 138,874 89 ,382 TOTAL REVENUES 2,951 ,942 2,591 ,867 EXPENDITURES Debt service Principal 1,271 ,462 1,101,333 Interest and fiscal charges 1 ,538,136 1 ,403,937 TOTAL EXPENDITURES 2,809,598 2,505,270 REVENUES OVER EXPENDITURES 142,344 86,597 Fund balances at beginning of year 622,168 535,571 FUND BALANCES AT END OF YEAR $ 764,512 $ 622,168 -74- NMI 4,1111 CAPITAL PROJECTS FUND This fund is used to account for financial resources to be used for the acquisition and construction of major capital facilities that are principally financed by grants, certificates of obligation, and the sale of bonds. a a a a -75- r CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS CITY OF PEARLAND, TEXAS September 30, 1989 and 1988 1989 1988 ASSETS Cash - including certificates of deposit $1,556,640 $2,341,830 Assessments receivable 45,705 56, 139 Accrued interest receivable 33,425 44,569 TOTAL ASSETS $1,635, 770 $2,442,538 ,. LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 366 Deferred assessments $ 45,705 56,139 45,705 56,505 i FUND BALANCES Unreserved designated for capital expenditures 1,590,065 2,386,033 TOTAL LIABILITIES AND FUND BALANCES $1,635, 770 $2,442,538 S i -77- CAPITAL PROJECTS FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CITY OF PEARLAND, TEXAS Years ended September 30, 1989 and 1988 1989 1988 — REVENUES Interest $ 154,145 $ 212,831 Capital recovery fee 27,090 192,611 Street assessments 9,002 12,209 TOTAL REVENUES 190,237 417,651 EXPENDITURES Capital outlay 986,205 3,144,921 Public works - 45,000 TOTAL EXPENDITURES 986,205 3,189,921 REVENUES UNDER EXPENDITURES (795,968) (2,772,270) OTHER FINANCING SOURCES Proceeds of bonds issue - 2,000,000 Proceeds of certificates of obligation - 250,000 TOTAL OTHER FINANCING SOURCES - 2,250,000 REVENUES AND OTHER SOURCES UNDER EXPENDITURES (795,968) (522,270) Fund balances at beginning of year 2,386,033 2,908,303 FUND BALANCES AT END OF YEAR $ 1,590,065 $ 2,386,033 a -78- MO OM MOD OM On OM MO OM MD ENTERPRISE FUNDS The Enterprise Fund is established to account for operations which are intended to be self-supporting through user charges. The City of Pearland operates the (1) Water m' and Sewer fund and (2) Sanitation fund on this basis. OM NMI OM IMP Me NO -79- ENTERPRISE FUNDS COMBINING BALANCE SHEET CITY OF PEARLAND, TEXAS September 30, 1989 (with comparative totals for 1988) WATER AND TOTALS SEWER SANITATION 1989 1988 ASSETS CURRENT ASSETS Cash - including certificates of deposit $ 1,058,246 $ 115,566 $ 1,173,812 $ 610,686 — Accounts receivable - less allowance for uncollectibles 499,537 40,616 540,153 478,485 Accrued interest 25,050 1,174 26,224 10,672 Due from other funds 28,795 28,795 - 1,582,833 186,151 1,768,984 1 ,099,843 RESTRICTED ASSETS - cash and certificates of deposit 512,524 5,000 517,524 664, 194 PROPERTY, PLANT, AND EQUIPMENT - at cost Land 189,071 57,236 246,307 189,071 Buildings, improvements, and equipment 15,312,022 992,464 16,304,486 15,115,539 15,501 ,093 1,049,700 16,550,793 15,304,610 Less allowance for depreciation 3,310,344 _ 32,768 3,343,112 2,844,530 12,190,749 1 ,016,932 13,207,681 12,460,080 TOTAL ASSETS $14,286,106 $1 ,208,083 $15,494, 189 $14,224,117 - -80- a a a a a WATER AND TOTALS SEWER SANITATION 1989 1988 a LIABILITIES AND FUND EQUITY LIABILITIES Current liabilities (payable from current assets) Accounts payable and accrued a expenses $ 31,063 $ 14,760 $ 45,823 $ 14,433 Accrued compensated absences 93,090 22,576 115,666 72,261 Due to other funds - - - 39,308 124,153 37,336 161,489 126,002 Current liabilities (payable from restricted assets) Accrued compensated absences 30,000 5,000 35,000 15,000 Current portion of revenue bonds 100,000 100,000 100,000 Deposits 136,962 136,962 122,028 266,962 5,000 271 ,962 237,028 Long-term liabilities (net of a current portion) Revenue bonds 1,875,000 1,875,000 1 ,975,000 TOTAL LIABILITIES 2,266,115 42,336 2,308,451 2,338,030 FUND EQUITY Contributed capital Municipality 10,836,507 979,441 11 ,815,948 10,687,764 Federal government 416,616 416,616 416,616 Customers and developers 45,642 45,642 45,642 11,298,765 979,441 12,278,206 11,150,022 Retained earnings Reserved for revenue bond retirement 345,562 345,562 527,167 For capital expenditures 10,000 10,000 Unreserved 375,664 176,306 551,970 208,898 721,226 186,306 907,532 736,065 TOTAL FUND EQUITY 12,019,991 1 ,165,747 13,185,738 11,886,087 TOTAL LIABILITIES AND FUND EQUITY $14,286,106 $1 ,208,083 $15,494,189 $14,224,117 -81- a ENTERPRISE FUNDS a COMBINING STATEMENT OF REVENUE AND EXPENSES - 1 of 2 CITY OF PEARLAND, TEXAS - Year ended September 30, 1989 WATER AND SEWER SANITATION TOTAL Operating revenues Water sales and services $1 ,444,960 $1 ,444,960 Sewer charges and services 1,095,092 1,095,092 Sanitation charges and services $987,704 987,704 2,540,052 987,704 3,527,756 - Operating expenses Water and sewer treatment Personal services 282,868 282,868 Supplies and other 97,234 97,234 Contractual services 491 ,378 491,378 871,480 871,480 Water and sewer public works Personal services 115,538 115,538 .� Contractual services 1 ,800 1 ,800 117,338 117,338 Distribution and collection Personal services 212,045 212,045 Supplies and other 56,661 56,661 Contractual services 66,807 66,807 - 335,513 335,513 Water and sewer accounting - Personal services 183,432 183,432 Supplies and other 5,326 5,326 Contractual services 22,578 22,578 211,336 211,336 Water and sewer construction Personal services 88,162 88,162 - Supplies and other 7,996 7,996 Contractual services 27,387 27,387 123,545 123,545 - Sanitation Personal services 260,582 260,582 - Supplies and other 171,687 171,687 Contractual services 191 ,497 191 ,497 623,766 623,766 -82- ENTERPRISE FUNDS S COMBINING STATEMENT OF REVENUE AND EXPENSES - 2 of 2 .. CITY OF PEARLAND, TEXAS S WATER AND SEWER SANITATION TOTAL Other expenses 192,142 51 ,826 243,968 TOTAL OPERATING EXPENSES 1 ,851 ,354 675,592 2,526,946 OPERATING INCOME BEFORE DEPRECIATION 688,698 312, 112 1,000,810 Depreciation 465,814 32,768 498,582 OPERATING INCOME 222,884 279,344 502,228 Non-operating revenues (expenses) Miscellaneous revenue 9,961 9,961 Interest revenue 101,642 2,300 103,942 Interest expense (122,262) (122,262) TOTAL NON-OPERATING REVENUES (EXPENSES) (10,659) 2,300 (8,359) NET INCOME BEFORE OPERATING TRANSFERS 212,225 281,644 493,869 Operating transfer out 227,064 95,338 322,402 . NET INCOME (LOSS) $ (14,839) $186,306 $ 171,467 -83- ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS CITY OF PEARLAND, TEXAS Year ended September 30, 1989 WATER AND SEWER SANITATION TOTAL Cash flows from operating activities Cash received from customers and users $2,528,962 $947,088 $3,476,050 Cash paid to suppliers and employees (1,833,012) (662,051) (2,495,063) Interest received 87,264 1,126 88,390 Interest paid (112,519) - (112,519) Operating transfer out (227,065) (95,338) (322,403) Net cash provided by operating activities 443,630 190,825 634,455 Cash flows from investing activities Purchase of fixed assets (47,740) (70,259) (117,999) Cash flows from financing activities Principal payments - bonds (100,000) (100,000) Noncash transactions affecting financial position Contributions of fixed assets from government 148,742 979,442 1,128,184 Acquisition of fixed assets through government capital contributions (148,742) (979,442) (1 ,128,184) Net effect of noncash transactions -0- -0- -0- Net increase in cash 295,890 120,566 416,456 Cash balance at October 1, 1988 1,274,880 -0- 1 ,274,880 CASH BALANCE AT SEPTEMBER 30, 1989 $1 ,570,770 $120,566 $1,691 ,336 -84- ENTERPRISE FUND (WATER AND SEWER) STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - 1 of 2 CITY OF PEARLAND, TEXAS Year ended September 30, 1989 1989 VARIANCE - FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Operating revenues us Water sales $1,157,000 $1 ,326,583 $ 169,583 $1 ,171,825 Water taps and connections 15,000 41,909 26,909 16,540 Sewer service charge 980,000 1,086,874 106,874 1,038,076 Sewer taps and connections 7,000 8,218 1,218 5,187 Service charges 65,000 76,468 11 ,468 77,658 TOTAL OPERATING REVENUES 2,224,000 2,540,052 316,052 2,309,286 Operating expenses Water and sewer treatment Personal services 289,490 282,868 6,622 282,080 vin Supplies and other 85,150 97,234 (12,084) 84,316 Contractual services 481,450 491 ,378 (9,928) 433,249 _ 856,090 871,480 (15,390) 799,645 Water and sewer public works Personal services 94,945 115,538 (20,593) 136,090 Contractual services 1 ,800 1 ,800 - 1 ,200 96,745 117,338 (20,593) 137,290 Distribution and collection Personal services 196,056 212,045 (15,989) 175,517 Supplies and other 55,200 56,661 (1,461) 58,058 Contractual services 87 ,150 66,807 20,343 51 ,572 338,406 335,513 2,893 285,147 Water and sewer accounting .. Personal services 206,522 183,432 23,090 137,454 Supplies and other 6,950 5,326 1,624 4,854 Contractual services 23,800 22,578 1 ,222 14,157 _ 237,272 211,336 25,936 156,465 Water and sewer construction Personal services 108, 181 88,162 20,019 52,674 Supplies and other 11,150 7,996 3,154 8,608 Contractual services 53,450 27,387 26,063 8,272 172,781 123,545 49,236 69,554 we -85- ENTERPRISE FUND (WATER AND SEWER) STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL - 2 of 2 1989 VARIANCE - .� FAVORABLE 1988 BUDGET ACTUAL (UNFAVORABLE) ACTUAL Other expenses 218,920 192,142 26,778 176,539 TOTAL OPERATING EXPENSES BEFORE DEPRECIATION 1 ,920,214 1 ,851 ,354 68,860 1 ,624,640 OPERATING INCOME BEFORE DEPRECIATION 303,786 688,698 384,912 684,646 .. Depreciation 465,000 465,814 (814) 437,118 OPERATING INCOME (LOSS) (161,214) 222,884 384,098 247,528 Non-operating revenues (expenses) Miscellaneous revenue 12,428 9,961 (2,467) 9,687 Interest revenue 16,000 101,642 85,642 72,662 Interest expense - (122,262) (122,262) (128,009) TOTAL NON-OPERATING REVENUES (EXPENSES) 28,428 (10,659) (39,087) (45,660) NET INCOME (LOSS) BEFORE OPERATING TRANSFERS (132,786) 212,225 345,011 201,868 Operating transfer out 227,064 227,064 - 250,000 NET LOSS $ (359,850) $ (14,839) $ 345,011 $ (48,132) -86- ENTERPRISE FUND (WATER AND SEWER) SCHEDULE OF LONG-TERM DEBT (REVENUE BONDS) CITY OF PEARLAND, TEXAS September 30, 1989 INTEREST DATE OF OUTSTANDING AT .� DESCRIPTION RATE MATURITY SEPT. 30, 1989 Waterworks and Sanitary sewer Series 1978 5.40% 9-1-90 $ 100,000 5.40 9-1-91 110,000 5.40 9-1-92 120,000 5.60 9-1-93 125,000 5.70 9-1-94 130,000 5.80 9-1-95 140,000 5.90 9-1-96 150,000 6.00 9-1-97 160,000 6. 10 9-1-98 170,000 _ 6.20 9-1-02 770,000 TOTAL 1,975,000 Less current portion 100,000 LONG-TERM PORTION $1,875,000 -87- ENTERPRISE FUND (SANITATION) STATEMENT OF REVENUES AND EXPENSES - BUDGET AND ACTUAL CITY OF PEARLAND, TEXAS Year ended September 30, 1989 1989 VARIANCE - FAVORABLE BUDGET ACTUAL (UNFAVORABLE) Operating revenues Solid waste collection $ 892,877 $981,764 $ 88,887 Trash bags 450 5,940 5,490 TOTAL OPERATING REVENUES 893,327 987,704 94,377 - Operating expenses Personal services 266,016 260,582 5,434 Supplies and other 183,162 171 ,687 11,475 Contractual services 285,585 191,497 94,088 734,763 623,766 110,997 Other expenses 65,000 51 ,826 13,174 TOTAL OPERATING EXPENSES - BEFORE DEPRECIATION 799,763 675,592 124,171 OPERATING INCOME BEFORE DEPRECIATION 93,564 312,112 218,548 Depreciation 32,000 32,768 (768) OPERATING INCOME (LOSS) 61,564 279,344 217,780 Non-operating revenues (expenses) - Interest revenue - 2,300 2,300 NET INCOME (LOSS) BEFORE OPERATING TRANSFERS 61,564 281,644 220,080 Operating transfer out 95,338 95,338 - NET INCOME (LOSS) $ (33,774) $186,306 $220,080 -88- GENERAL FIXED ASSETS ACCOUNT GROUP This account group is established to account for the fixed assets owned by the City exclusive of those re- lating to Proprietary Fund operations. Expenditure transactions to acquire general fixed assets occur in the General Fund and Capital Projects Fund. -89- GENERAL FIXED ASSETS COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCES CITY OF PEARLAND, TEXAS September 30, 1989 and 1988 General Fixed Assets 1989 1988 Land $ 1,045,612 $ 1,102,848 Buildings 6,275,924 6,283,114 Improvements 7,092,409 3,713,800 Equipment 2,297,381 2,841 ,607 Construction in progress 413,280 3,392,175 TOTAL $17,124,606 $17,333,544 == Investment in General Fixed Assets financed by Capital Projects Funds General obligation bonds $11,053,209 $10,514,202 Time warrants and certificates of obligation 1,058,436 1,058,436 Federal grants 377,956 377,956 General Fund Revenues 2,010,543 2,758,488 Special Revenue Fund Revenues 2,114,176 2,114,176 Special Assessments 510,286 510,286 TOTAL $17,124,606 $17,333,544 -91- GENERAL FIXED ASSETS SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY CITY OF PEARLAND, TEXAS September 30, 1989 FUNCTION AND ACTIVITY LAND BUILDINGS IMPROVEMENTS EQUIPMENT TOTAL General Government City Council $ 2,700 $ 2,700 City Manager 18,042 18,042 City Secretary 12,017 12,017 Finance 19,009 19,009 Tax 8,572 8,572 Legal 21,601 21,601 .- Municipal Court 19,623 19,623 City Hall $ 60,014 $2,261 ,827 86,122 2,407,963 60,014 2,261,827 187,686 2,509,527 Public Safety Police 1,933,779 652,780 2,586,559 Fire 48,031 453,554 501,585 Animal Shelter 4,320 7,511 14,390 26,221 Inspection 43,797 43,797 Civil service 1,684 1,684 Communications 72,812 72,812 Emergency Medical Services 117,739 238,391 356,130 4,320 2,107,060 1 ,477,408 3,588,788 Public Works Public Works Director 10,243 10,243 Service Center 232,837 46,344 279,181 Engineering 45,001 45,001 Street 203,195 $6,305,179 262,187 6,770,561 203,195 232,837 6,305,179 363,775 7,104,986 Community Services Library 5,000 957,516 51 ,696 1,014,212 Parks, recreation and beautification 773,083 716,684 787,230 216,816 2,493,813 778,083 1 ,674,200 787,230 268,512 3,508,025 i $1 ,045,612 $6,275,924 $7,092,409 $2,297,381 Construction in progress 413,280 TOTAL $17,124,606 -92- GENERAL FIXED ASSETS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY DEPARTMENT CITY OF PEARLAND, TEXAS Year ended September 30, 1989 RETIREMENTS BALANCE AT AND BALANCE AT OCT. 1 , 1988 ADDITIONS RECLASSIFICATIONS SEPT. 30, 1989 General Government City Council $ 2,700 $ 2,700 . City Manager 18,042 18,042 City Secretary 12,017 12,017 Finance 19,009 19,009 Tax 8,572 8,572 _ Legal 21,601 21,601 Municipal Court 11,367 $ 8,256 19,623 City Hall 2,380,635 27,328 2,407,963 . 2,473,943 35,584 2,509,527 Public Safety Police 2,575,563 53,918 $ 42,923 2,586,558 Fire 486,746 14,840 501,586 Animal Shelter 26,221 26,221 Inspection 43,797 43,797 Civil service 1,684 1,684 Communications 72,812 72,812 Emergency Medical Services _ 299,274 56,856 356,130 3,506,097 125,614 42,923 3,588,788 Public Works Public Works Director 10,243 10,243 Service Center 276,081 3,100 279, 181 Engineering 45,001 45,001 Street 3,249,882 3,520,679 6,770,561 Sanitation 886,436 886,436 - 4,467,643 3,523,779 886,436 7, 104,986 Community Services Library 1,009,306 4,906 1,014,212 Parks, recreation and beautification 2,484,380 9,433 2,493,813 3,493,686 14,339 3,508,025 Construction in Progress 3,392,175 986,205 3 ,965,100 413,280 ... TOTAL $17,333,544 $4,685,521 $4,894,459 $17,124,606 -93- i .11 .11 1 GENERAL LONG-TERM DEBT ACCOUNT GROUP The purpose of this account group is to account for general obligation indebtedness to be retired primarily from future assessment of ad valorem taxes. a a a a a -95- GENERAL LONG-TERM DEBT STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT CITY OF PEARLAND, TEXAS a Year ended September 30, 1989 BALANCE AT OCT. 1, 1988 Amount available in Debt Service Fund $ 622,168 Amount to be provided for retirement of general long-term debt 20,061,851 TOTAL AVAILABLE AND TO BE PROVIDED $20,684,019 Classification of debt Certificates of obligation $ 746,000 .. Notes payable 93,019 General obligation bonds 19,845,000 TOTAL GENERAL LONG-TERM DEBT $20,684,019 -96- a i DEBT SERVICE BALANCE AT OBLIGATIONS FUND SEPT. 30, RETIRED OPERATIONS 1989 $142,344 $ 764,512 $1 ,271 ,462 (142,344) 18,648,045 $1 ,271,462 $ -0- $19,412,557 $ 145,000 $ 601,000 66,462 26,557 1 ,060,000 18,785,000 $1 ,271,462 $19,412,557 i i -97- GENERAL LONG-TERM DEBT COMBINED SCHEDULE OF GENERAL LONG-TERM DEBT - 1 of 4 s CITY OF PEARLAND, TEXAS September 30, 1989 DATE OF OUTSTANDING AT INTEREST DATE AMOUNT FINAL SEPT. 30, DESCRIPTION RATE OF ISSUE OF ISSUE MATURITY 1989 Waterworks and Sani- tary Sewer Systems Improvement Bonds, Series 1964 3.80 12-1-64 $ 230,000 6-1-91 $ 100,000 3.90 12-1-64 165,000 6-1-94 165,000 265,000 General Obligation Bonds, Series 1966 4.35 6-1-66 95,000 6-1-91 65,000 4.40 6-1-66 210,000 6-1-95 210,000 275,000 General Obligation Bonds, Series 1968 5. 10 8-1-68 80,000 2-1-91 80,000 5.25 8-1-68 190,000 2-1-95 190,000 270,000 General Obligation Bonds, Series 1975 6. 10 6-1-75 55,000 2-1-90 55,000 6.25 6-1-75 60,000 2-1-91 60,000 6.40 6-1-75 65,000 2-1-92 65,000 6.50 6-1-75 65,000 2-1-93 65,000 245,000 -98- a a GENERAL LONG-TERM DEBT COMBINED SCHEDULE OF GENERAL LONG-TERM DEBT - 2 of 4 CITY OF PEARLAND, TEXAS September 30, 1989 DATE OF OUTSTANDING AT INTEREST DATE AMOUNT FINAL SEPT. 30, DESCRIPTION RATE OF ISSUE OF ISSUE MATURITY 1989 Permanent Improvement Bonds, Series 1978 5.00% 9-1-79 $ 250,000 3-1-90 $ 125,000 5. 10 9-1-79 125,000 3-1-91 125,000 5.20 9-1-79 125,000 3-1-92 125,000 5.25 9-1-79 125,000 3-1-93 125,000 5.30 9-1-79 200,000 3-1-94 200,000 5.40 9-1-79 200,000 3-1-95 200,000 5.50 9-1-79 500,000 3-1-97 500,000 1,400,000 Refunding Bonds, Series 1985 7.00 8-15-85 705,000 3-1-90 705,000 7.25 8-15-85 770,000 3-1-91 770,000 7.50 8-15-85 830,000 3-1-92 830,000 7.75 8-15-85 915,000 3-1-93 915,000 8.00 8-15-85 1,095,000 3-1-94 1,095,000 8. 10 8-15-85 1,190,000 3-1-95 1,190,000 8.25 8-15-85 1,285,000 3-1-96 1,285,000 8.40 8-15-85 1,280,000 3-1-97 1,280,000 8.50 8-15-85 510,000 3-1-98 510,000 8.60 8-15-85 500,000 3-1-99 500,000 8. 70 8-15-85 490,000 3-1-2000 490,000 8.80 8-15-85 485,000 3-1-2001 485,000 10,055,000 i S -99- GENERAL LONG-TERM DEBT COMBINED SCHEDULE OF GENERAL LONG-TERM DEBT - 3 of 4 CITY OF PEARLAND, TEXAS September 30, 1989 DATE OF OUTSTANDING AT INTEREST DATE AMOUNT FINAL SEPT. 30, DESCRIPTION RATE OF ISSUE OF ISSUE MATURITY 1989 - Public Improvement Bonds, 1986 8.50% 4-1-86 $ 75,000 3-1-90 $ 75,000 - 8.50 4-1-86 100,000 3-1-91 100,000 8.50 4-1-86 125,000 3-1-92 125,000 8.50 4-1-86 125,000 3-1-93 125,000 8.50 4-1-86 150,000 3-1-94 150,000 .- 8.50 4-1-86 175,000 3-1-95 175,000 8.50 4-1-86 300,000 3-1-96 300,000 6.50 4-1-86 425,000 3-1-97 425,000 6.60 4-1-86 450,000 3-1-98 450,000 6.60 4-1-86 450,000 3-1-99 450,000 6.70 4-1-86 475,000 3-1-2000 475,000 6.75 4-1-86 475,000 3-1-2001 475,000 6.80 4-1-86 500,000 3-1-2002 500,000 6.50 4-1-86 500,000 3-1-2003 500,000 4,325,000 Public Improvement Bonds, 1988 8.80 5-1-88 50,000 3-1-90 50,000 8.80 5-1-88 50,000 3-1-91 50,000 8.80 5-1-88 50,000 3-1-92 50,000 8.80 5-1-88 50,000 3-1-93 50,000 8.80 5-1-88 50,000 3-1-94 50,000 8.80 5-1-88 50,000 3-1-95 50,000 8.80 5-1-88 50,000 3-1-96 50,000 .. 8.00 5-1-88 100,000 3-1-97 100,000 6.80 5-1-88 250,000 3-1-98 250,000 6.90 5-1-88 250,000 3-1-99 250,000 7.00 5-1-88 250,000 3-1-2000 250,000 7. 10 5-1-88 250,000 3-1-2001 250,000 7.25 5-1-88 250,000 3-1-2002 250,000 7.25 5-1-88 250,000 3-1-2003 250,000 1 ,950,000 - TOTAL GENERAL OBLIGATION BONDS PAYABLE 18,785,000 -100- GENERAL LONG-TERM DEBT COMBINED SCHEDULE OF GENERAL LONG-TERM DEBT - 4 of 4 CITY OF PEARLAND, TEXAS September 30, 1989 DATE OF OUTSTANDING AT INTEREST DATE AMOUNT FINAL SEPT. 30, DESCRIPTION RATE OF ISSUE OF ISSUE MATURITY 1989 Road Materials Purchase - Certificates of Obligation, Series 1976A 6.25% 2-26-79 $ 1,000 8-1-90 $ 1,000 Water Works System Certificates of Obligation, Series 1981 9.25 7-23-81 100,000 3-1-90 100,000 9.40 7-23-81 100,000 3-1-91 100,000 9.75 7-23-81 100,000 3-1-92 100,000 9.75 7-23-81 100,000 3-1-93 100,000 400,000 Landfill Certificates of Obligation, Series 1988 6.40 4-1-88 50,000 3-1-90 50,000 6.40 4-1-88 50,000 3-1-91 50,000 6.40 4-1-88 50,000 3-1-92 50,000 6.40 4-1-88 50,000 3-1-93 50,000 200,000 TOTAL CERTIFICATES OF OBLIGATION 601,000 Note payable, Prime Rescue truck less 2% 26,557 TOTAL GENERAL LONG-TERM DEBT $19,412,557 -101- GENERAL LONG-TERM DEBT GENERAL LONG-TERM DEBT - BY MATURITY DATE - 1 of 2 CITY OF PEARLAND, TEXAS September 30, 1989 FISCAL GENERAL OBLIGATION GENERAL OBLIGATION GENERAL OBLIGATION YEAR TOTAL BOND SERIES 1966 BOND SERIES 1968 BOND SERIES 1975 - ENDING PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST 1990 $ 1,307,557 $ 1,394,959 $ 30,000 $ 12,068 $ 40,000 $ 13,035 $ 55,000 $ 13,812 1991 1,380,000 1,301,947 35,000 10,762 40,000 10,995 60,000 10,260 1992 1,475,000 1,200,287 35,000 9,240 40,000 8,925 65,000 6,305 1993 1,570,000 1,088,960 35,000 7,700 50,000 6,563 65,000 2,112 1994 1,640,000 970, 137 40,000 6,160 50,000 3,938 1995 1,765,000 842,700 100,000 4,400 50,000 1,312 1996 1,885,000 698,923 1997 2,055,000 545,645 1998 1,210,000 422, 173 1999 1,200,000 332,172 2000 1,215,000 241,220 2001 1,210,000 148,996 2002 750,000 76,687 2003 750,000 25,313 $19,412,557 $ 9,290,119 $275,000 $ 50,330 $270,000 $ 44,768 $245,000 $ 32,489 -102- I 111 I! WATERWORKS & SANITARY SEWER SYSTEM IMP. BONDS PERMANENT IMPROVEMENT r SERIES 1964 INTEREST BOND SERIES 1978 PRINCIPAL PRINCIPAL INTEREST $ 50,000 $10,234 $ 125,000 $ 71 ,463 50,000 8,334 125,000 65,150 55,000 6,434 125,000 58,713 55,000 4,290 125,000 52,181 55,000 2,144 200,000 43,600 200,000 32,900 250,000 20,625 250,000 6,875 S $265,000 $31,436 $1 ,400,000 $351,507 V S -103- GENERAL LONG-TERM DEBT GENERAL LONG-TERM DEBT - BY MATURITY DATE - 2 of 2 CITY OF PEARLAND, TEXAS September 30, 1989 FISCAL REFUNDING BONDS PUBLIC IMPROVEMENT BOND PUBLIC IMPROVEMENT BOND YEAR SERIES 1985 SERIES 1986 SERIES 1988 F ENDING PRINCIPAL INTEREST PRINCIPAL INTEREST PRINCIPAL INTEREST 1990 $ 705,000 $ 782,845 $ 75,000 $ 303,475 $ 50,000 $ 142,350 1991 770,000 730,258 100,000 296,038 50,000 137,950 1992 830,000 671 ,220 125,000 286,475 50,000 133,550 1993 915,000 604,639 125,000 275,850 50,000 129,150 1994 1,095,000 525,383 150,000 264, 162 50,000 124,750 1995 1,190,000 433,388 175,000 250,350 50,000 120,350 1996 1,285,000 332, 186 300,000 230, 162 50,000 115,950 1997 1,280,000 225,420 425,000 203,600 100,000 109,750 1998 510,000 149,985 450,000 174,938 250,000 97,250 1999 500,000 106,810 450,000 145,237 250,000 80,125 2000 490,000 63,995 475,000 114,475 250,000 62,750 2001 485,000 21 ,340 475,000 82,531 250,000 45,125 2002 500,000 49,500 250,000 27,187 2003 500,000 16,250 250,000 9,063 .R $10,055,000 $4,647,469 $4,325,000 $2,693,043 $1,950,000 $1 ,335,300 -104- CERTIFICATES OF NOTE PAYABLE OBLIGATION RESCUE TRUCK PRINCIPAL INTEREST PRINCIPAL INTEREST $ 151,000 $ 44,725 $26,557 $ 952 150,000 32,200 150,000 19,425 150,000 6,475 $ 601,000 $102,825 $26,557 $ 952 I, II IF 11 II IF lir -105- COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS - 1 of 2 CITY OF PEARLAND, TEXAS September 30, 1989 CERTIFICATE INTEREST DESCRIPTION NUMBER RATE General Fund Certificates of Deposit - Pearland State Bank, Pearland, Texas 3458 8.10% 4969 9.14 4970 9.14 5180 8.84 5270 8.57 5350 8.57 5360 8.57 5660 7.81 5675 8.14 .- 5744 8.27 5846 8.27 5957 7.91 5958 7.80 5959 7.91 6018 8.25 6019 8.25 - Enterprise Fund -- Certificates of Deposit - Pearland State Bank, Pearland, Texas 3833 8.66 4968 9.14 4995 8.91 5357 8.52 5463 8.12 5479 7.91 5534 8.05 5657 7.75 5675 8.14 _. 5680 8.09 5717 8.16 5718 8.16 5719 8. 16 5746 8.27 5820 8.27 5822 8.27 5845 8.13 5897 8.21 a -106- MATURITY DATE AMOUNT 10/04/89 $ 4,526 10/13/89 15,000 10/23/89 50,000 11/20/89 100,000 12/04/89 45,000 05/10/90 30,000 12/19/89 100,000 12/01/89 300,000 02/01/90 10,000 02/15/90 500,000 02/26/90 100,000 03/15/90 15,338 11/17/89 17,522 03/15/90 27,065 03/27/90 200,000 a 03/27/90 2,000 TOTAL GENERAL FUND 1,516,451 11/25/89 15,000 10/13/89 125,000 10/16/89 100,000 12/18/89 100,000 11/24/89 200,000 10/09/89 50,000 01/12/90 75,000 01/31/90 5,000 02/01/90 15,000 01/25/90 50,000 02/15/90 150,000 02/15/90 118,610 a 02/15/90 137,000 02/15/90 75,000 02/23/90 40,000 a 02/26/90 35,000 12/28/89 75,000 02/22/90 100,000 TOTAL ENTERPRISE FUND 1,465,610 a -107-- COMBINED SCHEDULE OF INVESTMENTS - ALL FUNDS - 2 of 2 CITY OF PEARLAND, TEXAS September 30, 1989 CERTIFICATE INTEREST DESCRIPTION NUMBER RATE Debt Service Fund Certificiates of Deposit - Pearland State Bank, Pearland, Texas 5821 8.06% 5830 8.27 5831 8.06 6016 8.26 6017 8.09 Capital Projects Fund Certificates of Deposit - Pearland State Bank, Pearland, Texas 5091 8.92 5092 8.92 5104 9.02 -- 5179 8.84 5269 8.57 5271 8.57 _ 5286 8.18 5555 8.24 5661 7.73 5795 8.08 5796 8.16 5797 8.08 5798 7.96 5849 7.99 5892 8.23 5893 7.98 �. 5979 7.95 -108- - MATURITY DATE AMOUNT i 12/26/89 $ 25,000 02/24/90 200,000 12/26/89 40,000 03/27/90 300,000 01/26/90 170,000 TOTAL DEBT SERVICE FUND 735,000 11/02/89 40,000 11/02/89 40,000 10/26/89 500,000 11/20/89 110,000 12/04/89 160,000 a 12/04/89 6,703 12/06/89 95,000 11/24/89 20,000 01/29/90 50,000 10/26/89 10,000 11/24/89 5,000 10/26/89 3,000 10/05/89 2,000 10/30/89 15,000 03/05/90 175,000 03/12/90 90,000 01/25/90 50,000 TOTAL CAPITAL PROJECTS FUND 1,371,703 TOTAL ALL FUNDS $5,088,764 UNRESTRICTED $4,758,154 RESTRICTED $ 330,610 -109- IMI SO MN INN OM 1.111 MI WEI STATISTICAL SECTION The City does not have a legal debt margin am as the law does not mandate any debt limit on the City. MN MP MI IMO INI NM WM -111- GENERAL GOVERNMENTAL EXPENDITURES - BY FUNCTION CITY OF PEARLAND, TEXAS Last ten fiscal years FISCAL GENERAL PUBLIC PUBLIC COMMUNITY YEAR GOVERNMENT SAFETY WORKS SERVICES 1979-80 $ 756,226 $ 838,958 $ 800,573 $126,328 1980-81 916,368 995,589 1,110,788 183,855 1981-82 1,076,708 1,310,149 1,382,662 236,632 1982-83 1,186,131 1,501 ,816 1,157,708 269,520 1983-84 1,306,283 1,291,788 1,244,566 351,420 1984-85 1,559,567 1,620,315 1,339,340 813,511 1985-86 1,546,669 1,636,541 1,481,274 508,331 1986-87 1,163,619 1 ,765,881 1,819,807 419,405 1987-88 1,055,090 1 ,775,205 1,831,884 394,294 1988-89 1,004,376 1,713,376 969,683 350,476 -112- DEBT REVENUE SERVICE SHARING TOTAL $ 449, 114 $ 29,065 $3,000,264 515,541 153,205 3,875,346 593,712 112,996 4,712,859 1,392,950 114,776 5,622,901 1,367,765 161,018 5,722,840 1,051,734 156,702 6,541, 169 1,873, 171 121,019 7,167,005 2,449,116 80,331 7,698, 159 2,505,270 14,281 7,576,024 2,809,598 - 6,847,509 This schedule includes expenditures of the General, Debt Service and Special Revenue Funds (where applicable). r r r II r Ir Ir r r -113- GENERAL GOVERNMENTAL REVENUES - BY SOURCE CITY OF PEARLAND, TEXAS Last ten fiscal years LICENSES FISCAL AND INTER- CHARGES YEAR TAXES * PERMITS GOVERNMENTAL FOR SERVICES 1979-80 $2,636,546 $ 67 ,875 $111,457 $368, 199 1980-81 3,261,841 64,775 106,683 397,446 1981-82 3,653,942 57,410 129,750 477,928 1982-83 4,065,251 137,319 152,232 510,278 1983-84 4,457,930 146,350 162,935 640,693 1984-85 4,857,178 98,730 378,260 731,123 1985-86 5,202,227 112,553 138,237 860,379 1986-87 5,494,385 138,998 17,898 838,298 1987-88 5,864,828 143, 198 12,500 858,071 1988-89 6,577,703 139,418 - - -114- FINES AND FORFEITURES OTHER TOTAL $166,789 $241,284 $3,592,150 161,277 262,985 4,255,007 166,304 411,653 4,896,987 204,796 639,928 5,709,804 213,241 495,813 6,116,962 228,806 512,425 6,806,522 225,674 327,398 6,866,468 231,117 343,850 7,064,546 234,687 353,320 7,466,604 265,062 475,973 7,458, 156 This schedule includes revenues of the General, Debt Service and Special Revenue Funds. * Includes penalties and interest. -115. TAX REVENUES - BY SOURCE CITY OF PEARLAND, TEXAS Last ten fiscal years FISCAL GENERAL GENERAL YEAR PROPERTY - A SALES FRANCHISE TOTAL 1979-80 $1,518,422 $ 863,670 $235,628 $2,617,720 1980-81 1,876,369 1,075,582 291,449 3,243,400 1981-82 2,097,120 1,133,869 411, 122 3,642,111 1982-83 2,716,737 820,623 478,944 4,016,304 1983-84 2,815,660 1,107,194 502,029 4,424,883 1984-85 3,120,117 1,133,396 564,905 4,818,418 1985-86 3,508,315 991,896 629,038 5,129,249 1986-87 3,900,865 943,940 581,617 5,426,422 1987-88 4,030,602 1,150,291 623,632 5,804,525 - 1988-89 4,651,648 1,212,455 642,180 6,506,283 Note A - Excludes penalty and interest. -117- PROPERTY TAX LEVIES AND COLLECTIONS CITY OF PEARLAND, TEXAS Last ten fiscal years PERCENT FISCAL TAX TAX TOTAL CURRENT TAX OF LEVY YEAR YEAR RATE TAX LEVY COLLECTIONS COLLECTED 1979-80 1979 $ .950 $1 ,536,722 $1 ,482,445 96.5% 1980-81 1980 1 .065 1,879,362 1,805,202 96. 1 1981-82 1981 .620 2,042,409 2,002,177 98.0 1982-83 1982 .680 2,729,115 2,675,793 98.0 1983-84 1983 .680 2,842,011 2,770,243 97.5 1984-85 1984 .730 3,145,445 3,073,142 97.7 1985-86 1985 .600 3,544,618 3,435,574 96.9 1986-87 1986 .700 3,902,598 3,785, 163 97.0 1987-88 1987 .735 4,103,794 3,979,253 97.0 1988-89 1988 .825 4,640,320 4,549,576 98.0 TAX RATE - The City of Pearland is a Home Rule Charter city with a maximum tax rate for all purposes of $2.50 per $100 as- sessed valuation. This maximum tax rate is imposed both by the constitution of the State of Texas and the City Char- ter. Within this $2.50 maximum, there is no legal limit upon the amount of taxes which can be levied for debt service. Note - The percent of assessed to actual value changed from 60% to 100% for the 1981 tax roll . Source - Tax department records of the City. -118- TOTAL OUTSTANDING COLLECTION DELINQUENT AS A PER- TAXES AS A DELINQUENT TOTAL CENT OF OUTSTANDING PERCENT OF TAX TAX CURRENT DELINQUENT CURRENT COLLECTIONS COLLECTIONS LEVY TAXES LEVY $39,282 $1,521,727 99.0% $ 92,249 6.00% 47,201 1,852,403 98.6 110,065 5.86 74,108 2,076,285 101.7 76,189 3.73 40,944 2,716,737 99.5 89,685 3.28 39,730 2,809,973 98.9 129,716 4.56 42,027 3,115,169 99.0 166,389 5.29 - 65,986 3,501,560 98.8 192,446 5.43 80,980 3,866,143 99. 1 235,090 6.02 86,051 4,065,304 99. 1 253,055 6. 16 - 102,072 4,651 ,648 100.2 245,832 5.30 -119- ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY CITY OF PEARLAND, TEXAS Last ten fiscal years REAL PROPERTY PERSONAL PROPERTY ESTIMATED ESTIMATED FISCAL TAX ASSESSED ACTUAL ASSESSED ACTUAL YEAR YEAR VALUE VALUE VALUE VALUE 1979-80 1979 $136,553,896 $227,589,827 $ 25,206,354 $ 42,010,590 1980-81 1980 148,799,753 247,999,589 34,015,796 56,692,993 1981-82 1981 260,252,180 260,252,180 79,750,769 79,750,769 1982-83 1982 294,041,370 294,041,370 106,562,690 106,562,690 1983-84 1983 309,192,300 309,192,300 107,332,030 107,332,030 1984-85 1984 334,529,340 334,529,340 97,007,310 97,007,310 1985-86 1985 505,251,465 505,251,465 85,518,227 85,518,227 1986-87 1986 481,680,507 481,680,507 75,833,470 75,833,470 1987-88 1987 490,803,955 490,803,955 66,690,530 66,690,530 1988-89 1988 488, 160,852 488,160,852 74,300,650 74,300,650 Note - Assessment date is January 1st of the tax year. The percent of assessed to actual value increased from 60% to 100% for the 1981 tax roll. Source - Tax department records of the City. -120- TOTAL ESTIMATED RATIO OF ASSESSED ASSESSED ACTUAL VALUE TO ESTIMATED VALUE VALUE ACTUAL VALUE $161,760,250 $269,600,417 60% 182,815,549 304,692,582 60 340,002,949 340,002,949 100 400,604,060 400,604,060 100 416,524,330 416,524,330 100 431 ,536,650 431,536,650 100 590,769,692 590,769,692 100 557,513,977 557,513,977 100 557,494,485 557,494,485 100 562,461 ,502 562,461 ,502 100 -121- PROPERTY TAX RATES AND TAX LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS - 1 of 2 CITY OF PEARLAND, TEXAS Last ten fiscal years - PEARLAND CLEAR CREEK INDEPENDENT INDEPENDENT - FISCAL CITY OF SCHOOL SCHOOL BRAZORIA HARRIS YEAR PEARLAND DISTRICT DISTRICT COUNTY COUNTY TAX RATE 1979-80 $ .950 $1 .04 $ .82 $ .980 $1 .100 1980-81 1.065 1.10 .82 .970 1.130 • 1981-82 .620 1. 10 .88 .385 .376 1982-83 .680 1. 10 .83 .380 .360 1983-84 .680 1.25 .82 .427 .377 • 1984-85 .730 1.00 .82 .300 .280 1985-86 .600 1. 10 .92 .395 .268 1986-87 .700 1. 18 .92 .395 .268 1987-88 .735 1.22 .95 .395 .293 - 1988-89 .825 1.37 .95 .395 .295 TAX LEVIES 1979-80 $1,536,722 $4,590,563 $16,431,313 $10,619,204 $152,450,987 1980-81 1,879,362 5,782,220 19,977,989 11,056,176 175,846,769 1981-82 2,042,409 5,741,265 22,647,479 15,002,232 218,001,248 - 1982-83 2,729,115 6,305,009 25,331,425 22,168,956 238,964,304 1983-84 2,842,011 6,925,984 27,542,883 22,516,039 270,971,084 1984-85 3, 145,445 7,930,348 31,418,975 23,685,899 324,910,285 - 1985-86 3,544,618 8,459,522 36,257,833 39,433,799 295,079,310 1986-87 3,902,598 8,412,625 45,544,887 40,219,332 312,668, 116 1987-88 4,103,794 10,057,694 45,806,334 22,867,551 317,168,382 1988-89 4,640,320 11,581,755 46,712,937 22,878,032 316,350,185 Note - The basis for property tax rates is per $100 of the assessed valuation. Source - Tax department records of the various governments. - -122- S HARRIS HARRIS PORT OF COUNTY COUNTY HOUSTON FLOOD HOSPITAL AUTHORITY CONTROL DISTRICT $.050 $.210 $.525 .060 .240 .550 .020 .062 .185 .020 .077 .190 .013 .079 .202 .009 .055 .134 .008 .064 .135 .008 .064 .135 .007 .037 .137 .011 .038 .146 $ 5,533,380 $26,062,000 $ 66,972,437 6,744,401 28,571,249 72,708,259 8,991,021 37,050,333 85,262,344 11,642,531 36,062,079 107,474,637 12,606,319 50,017,423 123,812,426 9,005,427 56,430,869 144,832,854 10,899,213 63,456,864 155,479,182 8,786,390 70, 125,656 148,971,673 9,333,377 74,667,013 157,500,730 11,714,922 51 ,539,087 156,997,245 S S -123- PROPERTY TAX RATES AND TAX LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS - 2 of 2 PEARLAND CLEAR CREEK INDEPENDENT INDEPENDENT CITY OF SCHOOL SCHOOL BRAZORIA HARRIS PEARLAND DISTRICT DISTRICT COUNTY COUNTY Tax Rate Limits 1) Amount $2.50 $1 .50 $1.50 $1 .25 Unlimited 2) Source Statutory Statutory Statutory Statutory Statutory Due date Current Taxes October 1 October 1 October 1 October 1 October 1 Date taxes become delinquent February 1 February 1 February 1 February 1 February 1 Penalities for delin- The statutory penalties for delinquency in the state of Texas are quency 6% on February 1 plus 1% for each month thereafter up to maximum penalty of 12%. Note - The basis for the property tax rate is per $100 of the assessed valuation. Source - Tax department records of the various governments. ... S S -124- HARRIS HARRIS PORT OF COUNTY COUNTY STATE OF HOUSTON FLOOD HOSPITAL TEXAS AUTHORITY CONTROL DISTRICT $. 10 Unlimited $.30 $.75 Statutory Statutory Statutory Statutory a October 1 October 1 October 1 October 1 February 1 February 1 February 1 February 1 a a -125- s TAX RATE DISTRIBUTION CITY OF PEARLAND, TEXAS Last ten fiscal years DEBT TOTAL GENERAL SERVICE TAX TAX YEAR FUND FUND RATE 1979 $ .658 $.292 $ .950 1980 .773 .292 1.065 1981 .443 .177 .620 1982 .395 .285 .680 1983 .377 .303 .680 1984 .399 .331 .730 1985 .269 .331 .600 '- 1986 .246 .454 .700 1987 .275 .460 .735 1988 .310 .515 .825 Note - The maximum tax rate for the City of Pearland is $2.50 per $100 assessed valuation. Within this $2.50 maximum there is no legal limit upon the amount of taxes which may be levied for debt service. The percent of assessed to actual value increased from 60% to 100% for the 1981 tax roll. S a -126- PRINCIPAL TAXPAYERS CITY OF PEARLAND, TEXAS September 30, 1989 PERCENT OF 1988 TOTAL ASSESSED ASSESSED TAXPAYER NAMES BUSINESS VALUE VALUE 1 . W. R. Grace Company Oilfield Equipment $ 11,940,480 2. 12% 2. Hausman & Banfield Property Apartments & Developers 8,902,340 1.58 3. Southwestern Bell Utility Company 7,972,920 1.41 4. Ron Carter Chevrolet Car Dealership 5,502,230 .98 5. Wal-Mart Department Store 5,222,210 .94 6. Whispering Winds Ltd. Apartments & Townhomes 5,116,420 .91 a 7. Houston Lighting & Power Utility Company 4,839,600 .85 8. Windmill Apartments #1 & #2 Apartments 4,699,840 .83 9. Energy Coatings Pipe Coating & Storage 4,225,070 .75 10. K-Mart Corporation Department Store 3,830,420 .68 62,251,530 11.05 Others 500,209,972 88.95 TOTAL $562,461 ,502 100.00% Source - Tax department records of the City -197- RATIO OF NET LONG-TERM DEBT TO ASSESSED VALUE AND NET LONG-TERN DEBT PER CAPITA CITY OF PEARLAND, TEXAS Last ten fiscal years �- TOTAL LESS DEBT FISCAL ESTIMATED ASSESSED LONG-TERM SERVICE YEAR POPULATION VALUE DEBT-A FUNDS .. 1979-80 13,000 $161,760,250 $ 4,961 ,000 $143,144 1980-81 13,248 182,815,549 5,433,000 190,733 1981-82 15,260 340,002,949 11,266,000 305,540 1982-83 17,702 400,604,060 10,986,000 391 ,966 1983-84 18,085 416,524,330 10,591,000 474,185 , 1984-85 19,000 431,536,650 16,341,000 192,994 1985-86 19,000 590,769,692 20,306,000 444,267 1986-87 21,000 557,513,977 19,535,352 535,571 1987-88 21,000 557,494,485 20,684,019 622,168 1988-89 22,000 562,461,502 19,412,557 764,512 Note - The percentage of assessed to actual value increased from 60% to 100% for the 1981 tax roll. A - Includes certificates of obligation, notes payable and general obligation bonds. -128- RATIO OF NET NET LONG-TERM DEBT NET LONG-TERM LONG-TERM TO ASSESSED DEBT PER DEBT VALUE CAPITA �. $ 4,817,856 2.98% $ 371 5,242,267 2.87 396 10,960,460 3.22 718 10,594,034 2.64 598 10,116,815 2.42 559 16, 148,006 3.74 850 19,861,733 3.36 1 ,045 18,999,781 3.41 905 20,061 ,851 3.60 955 18,648,045 3.32 848 Ir T r r p V r r r -129- COMPUTATION OF NET DIRECT AND ESTIMATED OVERLAPPING DEBT CITY OF PEARLAND, TEXAS September 30, 1989 PERCENTAGE CITY OF NET DEBT APPLICABLE PEARLAND'S NAME OF GOVERNMENTAL UNIT OUTSTANDING TO CITY OF PEARLAND SHARE OF DEBT Brazoria County $ 3,000,000 5.41% $ 162,300 Clear Creek Independent School District 39,800,000 1.15 457,700 Harris County 962,220,655 .05 481,110 Pearland Independent School District 25, 197,781 61.77 15,564,669 Port of Houston Authority 79, 150,000 .05 39,575 Harris County Flood Control 274,961,215 .05 137,481 Total Overlapping Debt 16,842,835 City of Pearland 100.00 18,648,045 TOTAL NET DIRECT AND OVERLAPPING DEBT $35,490,880 TOTAL NET DIRECT AND OVERLAPPING DEBT PER CAPITA $ 1,613 Source - Tax department records of the various governments. -131- a RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL LONG-TERM DEBT TO TOTAL GENERAL EXPENDITURES CITY OF PEARLAND, TEXAS Last ten fiscal years INTEREST AND TOTAL FISCAL DEBT FISCAL YEAR PRINCIPAL CHARGES SERVICE 1979-80 $180,000 $ 269,114 $ 449,114 a 1980-81 260,000 255,541 515,541 1981-82 267,000 326,712 593,712 1982-83 280,000 1,112,950 1,392,950 1983-84 395,000 972,765 1,367,765 1984-85 310,000 741,734 1,051 ,734 1985-86 544,101 1,329,070 1,873,171 1986-87 992,710 1,456,406 2,449,116 1987-88 1, 101,334 1,403,936 2,505,270 1988-89 1,271,462 1,538,136 2,809,598 This schedule reflects retirement of General Bonded Debt as recorded in the ,. General Long-Term Debt Account Group. a a a -132- TOTAL RATIO OF GENERAL DEBT SERVICE TO EXPENDITURES GENERAL EXPENDITURES $3,000,264 15.0% 3,875,346 13.3 4,712,859 12.6 5,622,901 24.8 5,722,840 23 .9 6,541,169 16. 1 7,167,005 26. 1 7,698,159 31.8 7,576,024 33. 1 6,847,509 41.0 r r r r r r r r -133 s low o w S S S (This page intentionally left blank) -134- REVENUE BOND COVERAGE - WATER AND SEWER BONDS CITY OF PEARLAND, TEXAS Last ten fiscal years NET REVENUE AVAILABLE RATIO FISCAL GROSS FOR DEBT DEBT SERVICE REQUIREMENTS OF YEAR REVENUES(A) EXPENSES(B) SERVICE PRINCIPAL INTEREST TOTAL COVERAGE 1980 $1,114,139 $ 576,915 $537,224 $50,000 $162,510 $212,510 2.53 1981 1,109,716 685,340 424,376 50,000 159,800 209,800 2.02 1982 1,218,626 822,827 395,799 60,000 156, 110 216,110 1.83 1983 1,376, 175 888,058 488, 117 70,000 152,270 222,270 2.19 1984 1,491,219 1,144,233 346,986 70,000 152,749 222,749 1.55 1985 1,591,300 1 ,448,033 143,267 75,000 147,088 222,088 .65 1986 2,278,960 1,474,980 803,980 80,000 141 , 134 221,134 3.64 1987 2,246,983 1,581 ,930 665,053 80,000 144,301 224,301 2.97 1988 2,391,635 1,624,640 766,995 90,000 128,009 218,009 3.52 1989 2,651,656 1,851 ,354 800,302 100,000 122,262 222,262 3.60 Note - (A) Includes non-operating revenue available for debt service. (B) Excludes depreciation. -135- SCHEDULE OF INSURANCE IN FORCE - 1 of 3 CITY OF PEARLAND, TEXAS .. September 30, 1989 COMPANY POLICY NO. COVERAGE FIRE Transportation Insurance Co. FTE 300566213 Fire, EC, JEC VMM New City Hall Sprinkler system leakage damage Transportation Insurance Co. FTE 803107117 Fire, EC & VMM Fire Station - EMS Bldg. , �. City Barn Building & Contents American Casualty Company FTE 803101351 Fire, EC & VMM Contents Community building on Grand Blvd. , Activity building National Fire Insurance Co. FTE 9013106945 Fire, EC & VMM Corn- munity Center & Con- tents Transportation Insurance Co. FTE 003148868 Fire, EC & VMM Police Station & Contents FIDELITY Merchants Bonding Company TX 151915 Blanket Bond - All Employees Merchants Bonding Company TX 143282 Library Treasurer' s Merchants Bonding Company TX 432039 Tax Collector City Treasurer's Bond Merchants Bonding Company N/A Notary Bond - Various Employees -136- AMOUNT CO-INSURANCE BEGINS TERM PREMIUM $2,077,000 80% 06-01-89 1 yr. $6,280 2,075,000 a 625,000 80% 09-01-89 1 yr. 2,892 103,000 80% 02-28-89 1 yr. 222 a 1,200,000/ 80% 11-28-88 1 yr. 2,284 200,000 v 1,400,000/ 80% 06-06-89 1 yr. 2,890 110,000 5,000 - 01-28-88 3 yr. 2,636 10,000 - 06-29-89 1 yr. 50 20,000 - 06-13-89 1 yr. 100 2,500/per Notary - 12-22-92 3 yr. 781 -137- SCHEDULE OF INSURANCE IN FORCE - 2 of 3 COMPANY POLICY NO. COVERAGE LIABILITY T.M.L. Self Insurance Plan C00128 Fleet Auto Coverage 1. Comprehensive General Liability 2. Fleet Auto Liability - includes Fire Vehicles 3. Personal & Profes- sional Liability 4. Errors & Omissions — 5. Public Officials Liability - (paid monthly) PHYSICAL DAMAGE Transcontinental Insurance Co. IMB 402387058 Equipment Floater & EMS Tower AMBULANCE First National Insurance Co. BA 2034265E Liability and Physical of America Damage on Ambulance First National Insurance Co. LP 2034265E General & Professional of America Liability -138- a AMOUNT CO-INSURANCE BEGINS TERM PREMIUM 1,000,000 - 10-01-88 1 yr. G.F. $135,338 Combined W&S 55,279 Single 190,617 Limit 1,000 deductible 5,000 deductible 500,000 a 1,500 deduct. 347,841 - 01-06-89 1 yr. 3,647 500,000 - 12-22-88 1 yr. 10,693 a 100/300,000 - 12-22-88 1 yr. 2,766 a a a a -139- SCHEDULE OF INSURANCE IN FORCE - 3 of 3 COMPANY POLICY NO. COVERAGE First National Insurance Co. IM 2034265D Floater - E.M.S. of America Schedule Equipment First National Insurance Co. VP690589 A.D.& D. ., of America Accidental Death and Dismemberment ACCIDENT Hartford Accident and 61VP120514 Accidental Death and Indemnity Co. Dismemberment - Medical WORKERS' COMPENSATION Johnson & Higgins - TML A 0128 Statutory Workman's Compensation (paid monthly) GROUP HOSPITALIZATION American General T.M.L. Group GRH 23401, All City Employees GL 23401, GRD 23401 Prucare 76765 Various Medical, Life, Dental (paid monthly) -140- AMOUNT CO-INSURANCE BEGINS TERM PREMIUM 60,350 - 12-22-88 1 yr. $ 4,755 10,000 - 12-22-88 1 yr. 871 10,000 - 12-16-88 1 yr. 2,575 10-01-88 1 yr. 171 ,388 10-01-88 1 yr. 152,890 10-01-88 1 yr. 163,805 -141- PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS CITY OF PEARLAND, TEXAS Last ten fiscal years FISCAL BANK PROPERTY YEAR CONSTRUCTION-B DEPOSITS-A VALUE-C 1980 $12,783,943 $269,600,417 1981 15,815,678 $ 60,734,683 304,692,582 1982 15,410,993 69,019,958 340,002,949 1983 34,379,493 81,967,878 400,604,060 1984 37,421,404 100,328,552 416,524,330 1985 17,249,993 111,481 ,683 431,536,650 1986 19,155,357 116,496,589 590,769,692 1987 13,961 ,123 124,768,047 557,513,977 1988 14,052,500 131,441 ,215 557,494,485 w 1989 37,270,734* 154,685,142 562,461,502 Note A - Bank deposits are as reported by Texas Bankers Association at the preceding December 31. Data prior to 1981 not available. "r Note B - Inspection department records of the City. Note C - Tax department records of the City. *Large increase is due to the construction of a new High School with a value of $19,738,000. w -142- MISCELLANEOUS STATISTICAL DATA - 1 of 2 CITY OF PEARLAND, TEXAS September 30, 1989 w Date of Incorporation December, 1959 Date of Present Charter Adopted Home Rule Charter �' February 6, 1971 Form of Government Council - Manager Area 22 square miles Miles of streets and alleys Streets - paved 98.8 miles Streets - unpaved 10 miles Alleys 9 miles Sidewalks 35 miles Fire Protection Number of stations 3 Number of volunteers 37 Police Protection Number of stations 1 Number of employees 42 Number of patrol units 21 Recreation Number of parks 7_ Size of parks 50 acres, 46 acres, .75 acres, 4.8 acres, 6 acres, 1 acre, 1.5 acres Number of swimming pools 1 Number of tennis courts 5 ,.. Number of softball fields 1 Number of pavilions 3, 1 large and 2 small Community Center 1 - Sanitation Number of landfills 1 (no longer in operation) Number of garbage bags provided 582,400 per year Number of garbage trucks 7 Cubic yards of solid waste collected 175 per year -143- MISCELLANEOUS STATISTICAL DATA - 2 of 2 a Storm Sewers Miles of storm sewer 24.6 miles .. Education Pearland Independent School District Number of teachers 392 Number of students 6,450 City employees Monthly salary employees 19 .. Hourly rate employees 122-1/2 Total 141-1/2 Election Number of votes cast Last general election 3,736 Last city election 1,936 Water Number of wells 6 Average daily consumption 2,550,000 gallons Maximum daily consumption 3,900,000 gallons Water mains 94.6 miles Number of connections 5,558 Sewer Average daily capacity 2,230,000 gallons Maximum daily capacity 4,721,000 gallons Sanitary sewer mains 86.6 miles Number of connections 5,359 Emergency Medical Service Number of volunteers 31 •- Number of paid paramedics 8 Number of stations 1 Number of vehicles 4 Library Number of buildings 1 Number of cardholders 15,064 Number of books in library 33,000 —144— DEMOGRAPHIC STATISTICS CITY OF PEARLAND, TEXAS Last ten fiscal years FISCAL ESTIMATED PER CAPITA MEDIAN SCHOOL UNEMPLOYMENT YEAR POPULATION INCOME (1) AGE (2) ENROLLMENT (3) RATE (4) 1979-80 13,000 * * 5,129 3. 1% 1980-81 13,248 $10,079 29 5,095 4.5 1981-82 15,260 * * 5,005 4.8 �. 1982-83 17,702 * * 5, 174 6.8 1983-84 18,085 * * 5,257 5.9 1984-85 19,000 * * 5,418 8.6 _ 1985-86 19,000 * * 5,831 10.6 1986-87 21,000 * * 5,813 9.9 1987-88 21 ,000 * * 6,224 7.4 1988-89 22,000 * * 6,450 8. 1 Source: (1) Federal Revenue Sharing Office. (2) 1980 United States Census. (3) Pearland Independent School District. (4) State Unemployment Commission. (The unemployment rate is the average annual unemployment rate for Brazoria County of which the City of Pearland is a part) . * Information not available. -145- CITY OFFICIALS AND DEPARTMENT HEADS CITY OF PEARLAND, TEXAS September 30, 1989 — CITY OFFICIALS ADDRESSES ELECTIVE POSITION .— Thomas J. Reid 2716 Stratford Mayor D. A. Miller, Jr. 2707 Pinecone Lane Councilmember Position No. 1 Richard F. Tetens 2105 W. Mary's Creek Councilmember Position No. 2 James E. Bost 2102 Shadybend Councilmember Position No. 3 David L. Smith 2714 Green Tee Councilmember Position No. 4 William E. Wolff 2703 Shakespeare Councilmember Position No. 5 DEPARTMENT HEADS APPOINTIVE POSITION Ronald J. Wicker 2101 Sleepy Hollow Dr. City Manager Randall L. Garner P.O. Box 1541 Chief of Police Larry Steed 3305 Longherridge Fire Chief Glenn Chaney Box 36 Municipal Court Judge Dick Qualtrough 1816 Winding Creek City Engineer Joe Barnett 5212 Cunningham Fire Marshal Dr. David Armbruster 3301 Windsor Health Officer Janet S. Eastburn 5922 Marsha Treasurer/Director of Finance Kay Krouse 1001 Union Valley City Secretary Barry R. Lastik 11322 Sage Valley Director of Parks & Recreation .— Houston, Texas Barbara Lenamon 2224 N. Galveston Tax Assessor/Collector Robert Tobin 3510 E. Broadway, #709 Water Operations Supervisor William Thommasset 2819 Shady Lane Director of Public Works Webster, Texas Ernesto Buenrostro 201 South 6th Deputy Building Official Alvin, Texas Paulette Mire 401 McDermott Supervisor of Water and Sewer Deer Park, Texas Billing and Collection Renee Monceaux P.O. Box 723 Animal Control Officer — Carrol Frank 2212 Willow Blvd. Municipal Court Supervisor John R. Kubasik 639 East Country Grove Circle Health Officer Joe Almaraz 2214 Bunkerhill Sanitation Supervisor .. Trinida Avila 7544 Stonecrest Street & Drainage Supervisor Alvin, Texas Mike Joyce 2403 Parkview Chief Mechanic — Ronnie McWhirter 1109 Union Valley Water and Sewer Construction Supervisor Mark Hickling 5003 Rockland Civil Service Director - -146- - TERM AMOUNT OF EXPIRES SURETY BOND 1990 $ 5,000 1992 5,000 1991 5,000 1990 5,000 1991 5,000 1992 5,000 5,000 5,000 NONE NONE 5,000 5,000 NONE 10,000 5,000 5,000 10,000 5,000 5,000 5,000 5,000 5,000 5,000 NONE 5,000 5,000 s NONE NONE NONE -147-