R2001-0081 06-25-01 RESOLUTION NO. R2001-81
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, ACCEPTING THE RESULTS OF THE CITY'S ANNUAL
FINANCIAL AUDIT AS PREPARED BY NULL-LAIRSON, P.C.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain financial audit as prepared by NulI-Lairson, P.C., a copy
of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is
hereby authorized and approved.
Section 2. That the City Council accepts the results of the City's annual financial
audit.
PASSED, APPROVEDandADOPTEDthisthe 25 dayof ~une ,
A.D., 2001.
TOM REID
MAYOR
ATTEST:
y i~N G ~,,(~ i::~.pf~ G,, -
SEC,~,ETARY ~/ ~/
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
Comprehensive
Annual Financial Report
CITY OF PEARLAND, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended September 30, 2000
Prepared By:
Finance Department
CITY OF PEARLAND, TEXAS
COMPREItENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2000
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement for
Excellence in Financial Reporting 7
Organization Chart 8
Principal Officials 9
Executive Managers 10
FINANCIAL SECTION
Independent Auditors' Report 13
GENERAL PURPOSE FINANCIAL STATEMENTS
Combined Balance Sheet - All Fund Types, Account Groups, and
Discretely Presented Component Unit 1 16
Combined Statement o£Revenues, Expenditures, and Changes in Fund
Balances - All Govermnental Fund Types and Discretely Presented
Component Units 2 18
Combined Statement of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual - General and Debt Service
Funds 3 20
Statement of Revenues, Expenses, and Changes in Retained
Earnings - Proprietary (Enterprise) Fund Type 4 22
Statement of Cash Flows - Proprietary (Enterprise) Fund Type 5 23
Notes to Financial Statements 24
REQUIRED SUPPLEMENTARY INFORMATION
Pension Information - Texas Municipal Retirement System 52
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS AND SCI:~DULES
Governmental Fund Types
General Fund:
Comparative Balance Sheet A-1 58
Statement of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual A-2 59
Schedule of Revenues - Budget and Actual A-3 60
Schedule of Expenditures ~ Budget and Actual A-4 64
Exhibit Page
i
CITY OF PEARLAND~ TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30~ 2000
FINANCIAL SECTION (continued)
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS AND SCHEDULES (continued)
Governmental Fund Types (continued)
Special Revenue Funds:
Combining Balance Sheet B- 1 72
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances B-2 74
Debt Service Fund:
Comparative Balance Sheet C-I 78
Statement of Revenues, Expenditures, and Changes in Fund
Balance - Budget and Actual C-2 79
Capital Projects Funds:
Combining Balance Sheet D-1 82
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balance D-2 84
Account Groups
General Fixed Assets:
Schedule of General Fixed Assets by Source E-1 90
Schedule of Changes in General Fixed Assets by Function and Activity E-2 91
Schedule of General Fixed Assets by Function and Activity E-3 92
General Long-Term Debt:
Schedule of General Long-Term Debt Service
Requirements to Maturity F 96
Enterprise Fund Debt-
Schedule of Enterprise Fund Debt Service Requirements to Maturity G 100
Component Units
Combining Balance Sheet H- 1 104
Combining Statement Of Revenues, Expenditures, and
Changes in Fund Balance H-2 105
Combining Balance Sheet Pearland Economic Development
Corporation (PEDC) H-3 106
Exhibit Page
ii
CITY OF PEARLAND~ TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Year Ended September 30, 2000
Exhibit Page
FINANCIAL SECTION (continued)
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS AND SCHEDULES (continued)
Component Units (continued)
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balance Pcarland Economic Development
Corporation (PEDC) H-4 107
Combining Balance Sheet 'IIRZ #1 and TIRZ #2 H-5 108
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balance TIRZ #1 and TIRZ #2 H-6 109
Schedule of Component Unit Funds Debt Service
Requirement to Maturity H-7 110
Table Page
UNAUDITED STATISTICAL SECTION
General Governmental Expenditures by Function- Last Ten Fiscal Years 1 112
General Governmental Revenues by Source - Last Ten Fiscal Years 2 114
Property Tax Levies and Collections - Last Ten Fiscal Years 3 116
Assessed Value of Taxable Property - Last Ten Fiscal Years 4 118
Property Tax Rates - Direct and Overlapping Govemments
- Last Ten Fiscal Years 5 119
Principal Taxpayers 6 120
Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years 7 121
Ratio of Net General Long-Term Debt to Assessed Value and
Net Long- Term Debt Per Capita - Last Ten Fiscal Years 8 122
Ratio of Annual Debt Service Expenditures for General Long-Term Debt
to Total General Governmental Expenditures - Last Ten Fiscal Years 9 124
Computation of Direct and Overlapping Debt 10 125
Demographic Statistics 11 126
Miscellaneous Statistical Data 12 127
iii
INTRODUCTORY SECTION
To the Honorable Mayor, Members
of City Council, and Citizens of
the City of Pearland
Pearland, Texas:
The comprehensive annual financial report of the City of Pearland, Texas (the "City") for the fiscal year
ended September 30, 2000, 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 Section. 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 multi-year basis.
The financial reporting entity (the "City") includes all the funds and account groups of the primary
government (i.e., the City of Pearland as legally defined), as well as all of its Component Units.
Component Units are legally separate entities for which the primary govemment is financially
accountable. The City provides the full range of municipal services contemplated by statute or charter.
This includes police and fire protection, health and social services, public improvements, planning and
zoning, and general administrative services. The City also provides water, sewer, and sanitation services.
Additionally, the City has an Economic Development Corporation, designed to attract and retain jobs and
more fully develop the local ad valorem tax base.
Discretely presented and blended component units are reported in a separate column in the combined
financial statements to emphasize that they are legally separate from the primary government and to
differentiate their financial position, results of operations, and cash flows from those of the primary
government. The Economic Development Corporation is reported as a discretely presented component
unit.
ECONOMIC CONDITION AND OUTLOOK -
The City of Pearland lies fifteen miles southeast of downtown Houston and ten miles from the Texas
Medical Center in the northeast corner of Brazoria County, with small areas within Harris and Fort Bend
Counties. Pcarland is accessible by way of four major highways and is six miles from Houston Hobby
Airport.
Sales tax receipts have shown favorable increases for the last several years· Permits for more than 700
single-family residences were issued in 2000. The Pearland Economic Development Corporation (PEDC)
awarded incentive packages to either attract new businesses or allow existing businesses to expand.
MAJOR INITIATIVES
The Pcarland City Council sets its goals each year in a strategic planning workshop. Some of the
highlighted goals include:
* Enhance the transportation network to improve the efficiency of traffic movements.
· Update land use and development standards and practices to reflect the goals of the Comprehensive Plan.
· Create recreational opportunities to meet the needs of the citizens.
· Maintain and enhance Pearland's high standards of public safety.
· Reduce the frequency and severity of flooding through a comprehensive storm water management policy.
· Ensure adequate water supply and wastewater treatment capacity for growth.
· Ensure the City is financially sound and fiscally responsible.
FUTURE OUTLOOK
Brazoria County's current population is just under 228,000. It is estimated that this will increase to over
330,000 in the next ten to fifteen years. According to the Brazoria County Partnership, job growth will he
focused in. four primary areas: 1) aerospace/high technology, 2) transportation and distribution, 3)
petrochemical and downstream petrochemical companies, and 4) tourism.
In late 1998, the City of Pearland created a Tax Increment Reinvestment Zone (TIRZ/12). This involved
the annexation of over 3,000 acres west of the State Highway 288 (SH 288) corridor. The city limit now
extends to portions of Fort Bend County. The proposed development, Shadow Creek Ranch, has the
potential to develop the acreage over a fifteen to twenty year time frame. It is estimated that 7,000 new
single-family homes, 1,800 assisted living units, and 3,900 multi-family units could be developed. More
than two billion dollars worth of value would be added over the next twenty years.
Shadow Creek Ranch will not only improve roads in the area, but will also bring in sewer and drainage,
water, and major landscaping to the area. The added population poises SH 288 for major retail and
commercial development that could eventually include major office buildings, a hospital, and hotels.
DEPARTMENT FOCUS
Finance: The Finance Department continues to improve in multiple major areas. Additional staff has
allowed for enhanced interest earnings and improved financial projections. The department continues to
submit winning GFOA awards for budget presentation and financial audit reporting. Purchasing
procedures have allowed the city to streamline and centralize its purchasing function.
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.
Accounting Controls. We believe that the City's accounting controls provide reasonable assurance that
errors or irregularities that could be material to the financial statements are prevented or would be
detected within a timely period by employees in the normal course of performing their assigned function.
Budgeting Controls. In addition, the City maintains budgetary controls. The objective of these budgetary
controls is to ensure compliance with legal provisions embodied in the annual appropriated budget
approved by the City's governing body. Activities of the General, Debt Service, and Enterprise Funds are
included in the annual appropriated budget. The level of budgetary control (the level at which
expenditures cannot legally exceed the appropriated amount) is the total approved budget for each
department.
As demonstrated by the statements and schedules 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, special revenue, and debt service funds,
and the amount and percentage of increases and decreases in relation to prior year revenue, is summarized
in the following schedule:
2000 Percent of
2000 Percent of 1999 lncrease Increase
Revenue Source Amount Total Amount (Decrease) (Decrease)
Propertytaxesandpenalfies $ 9,272,373 42.5 % $ 8,192,927 $1,079,446 13.2
Sales and hotel/motel taxes 3,745,460 17.2 3,484,454 261,006 7.5
Franchise and gross receipts taxes 2,022,789 9.3 1,943,545 79,244 4.1
Licenses and permits 1,469,799 6.7 955,819 513,980 53.8
Fines and forfeitures 731,959 3.4 675,691 56,268 8.3
Intergovernmental 318,631 1.5 492,305 (173,674) (35.3)
Charges for services 3,061,545 14.0 2,960,214 101,331 3.4
Interest 488,484 2.2 338,727 149,757 44.2
Other 687,003 3.2 463,808 223,195 48.1
$21,798,043 100.0 % $19,507,490 $2,290,553
The increase in revenue from Property Taxes was two-fold. First, new construction in the preceding year
was brought onto the tax roll for the first time and second, there was an overall increase in the appraised
value of property in the area. Sales Taxes are a product of retail sales in the area and indicate that overall
retail activity was up for the year. The increase in revenue from Licenses and Permits was due primarily
to the continued growth of the city and related building permits. Intergovernmental revenues were
because of fluctuation of grants between years. The increase in Interest Income was the result of having a
higher average cash position, higher interest rates and having additional staff to manage the process. The
Other category, by default, is a catchall for alt other revenue sources that might occur during the year and
its increase is a reflection of the overall improved financial condition of the region.
Allocations of property tax levy by purpose for 1999-2000 fiscal year and the preceding two fiscal years
are as follows (amount per $100/assessed value):
Purpose 1999-00 1998-99 1997-98
General Fund $ 0.440 $ 0.440 $ 0.440
General Obligation Debt 0.255 0.255 0.255
Total Tax Rate . $ 0.695 $ 0.695 $ 0.695
4
The expenditures for the general, special revenue, and debt service funds and the amount, and percentage of
increases and decreases in relation to the prior year expenditures, are summarized in the following schedule.
2000 Increase Percent of
2000 Percent of 1999 (Decrease) Increase
Function Amount Total Amount Over 1999-00 (Decrease)
General Govemment $ 3,971,691 19.5 % $ 3,690,296 $ 281,395 7.6 %
Public Safety 5,952,191 29.2 5,698,238 253,953 4.5
Public Works 5,635,397 27.6 5,137,708 497,689 9.7
Community Services 1,781,610 8.7 1,598,521 183,089 11.5
Debt Service 3,064,038 15~0 3,582,811 (518,773) (14.5)
$ 20,404,927 100.0 % $ 19,707,574 $ 697,353
Enterprise Operations. The government's enterprise operations are comprised of the Water and Sewer
System.
Water and Sewer System. Operating revenues totaled $7,146,031 compared to $5,850,554 last year, a
22.1% increase. The increase is due to growth, annexations, and increased water and sewer rotes.
Comparative data for the past two fiscal years are presented in the following schedule.
1999-00 1998-99
Operating Revenues $ 7,146,031 $ 5,850,554
Operating expenses (before depreciation) 3,899,289 3,464,094
Operating income (before depreciation) $ 3,246,742 $ 2,386,460
Number of customers (water) 11,000 1 0,452
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 Pearlund at September 30, 2000, were as follows:
Total outstanding tax supported debt (general obligation bonds and certificates of obligation) at September
30, 2000, totaled $30,351,250. Debt service fund balance in the amount of $681,149 was available at
September 30, 2000 to service the debt and the bonded debt per capita was $761.
The City's assigned "insured" bond ratings on its most recent issue were as follows:
Standard &
Moody's Poors
Revenue Bonds Aaa AAA
Tax Bonds Aaa AAA
Cash Management. Cash, temporarily idle during the year, was invested in certificates of deposit ranging
from 60 to 365 days to maturity. Certificate of deposit and cash amounts which exceed FDIC coverage are "
collateralized by securities owned by the City's depository. All investments held by the City during the year
and at September 30, 2000, are classified in the category of lowest credit risk as defined by the
Governmental Accounting Standards Board.
Risk Management. During 1999-2000, the City continued an aggressive risk management program for
worker's compensation. Various risk control techniques, including employee accident prevention training,
have been emphasized during the year in order to minimize accident-related losses.
OTItER 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 Null - Lairson, P.C. was selected by the City Council. This requirement has been
complied with, and the auditors' opinion has been included in this report.
Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Pearland for its '
Comprehensive Annual Financial Report for the fiscal year ended September 30, 1999. This was the twenty-
third consecutive year that the City has received this prestigious award.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable
and efficiently organized comprehensive annual financial report, whose contents conform to program
standards. Such reports must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current report continues
to conform to Certificate of Achievement Program requirements and we are submitting it to GFOA to
determine its eligibility for another certificate.
In addition, the government also received the GFOA's Award for Distinguished Budget Presentation, the
thirteenth consecutive year for its annual appropriated budget dated September 13, 1999. In order to qualify
for the Distinguished Budget Presentation Award, the government's budget document was judged to be
proficient in several categories including policy documentation, financial planning, and organization.
Acknowledgments. We would like to express our appreciation to all members of the Finance and
Administration Department who assisted and contributed to its preparation. We would also like to thank the
Mayor, members of the City Council, and City Manager for their interest and support in planning and ~-
conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted, "
ector of Finance
January 11, 2001
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
Scptcmbar 30, 1999
,~ Certificate of Achievement {or Excellence in }:inancial
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 flpanci~l
reports (CAFRs) achieve the highest
standards in government accounting
and financial reportlng~ .
President
City of Pearland, Texas
Organization Chart
September 30, 2000
CITY COUNCIL
[ FINANCE ~ [ ENGINEERING ~ ADMINISTRATIVESERVICE
ACCOUNTING ] [ PROSECTS
UTILITY BILLING ] [ PUBLIC WORKS I 'I
[RECREATION]
[ COMMUNITIY ] [ PLANNINGANDI
CITY OF PEARLAND, TEXAS
Page 1 of 2
List of Principal Officials
As of September 30,2000
Elected Officials
Tom Reid Mayor
Klans Seeger (Position 5) Mayor Pro Tem
Helen Beckman (Position I) Council Member
Woody Owens (Position 2) Council Member
Larry Wilkins (Position 3) Council Member
Larry Marcott (Position 4) Council Member
Appointed Officials
Alan Mueller Interim City Manager
Young Lorfing City Secretary
Darrin Coker City Attorney
CITY OF PEARLAND, TEXAS
Page 2 of 2
List of Principal Officials
As of September 30,2000
Executive Managers
Mike Chance Executive Director of PEDC
Jimmy Causey Director of Finance
Chris Doyle Police Chief
Larry Steed Fire Marshal/Emergency
Management Director
Tobin Maples Manager of Administrative Serv.
Ed Hersh Director of Parks & Recreation
Glenn Chancy Municipal Court Judge
Roy Simmons Municipal Court Judge
Edward Sillas Municipal Court Judge
Floyd Myers Municipal Court Judge
10
FINANCIAL SECTION
11
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12
One
Sugar Creek Blvd.,
Suite
920
Houston, TX 77046 Sugar Land, TX 77478
(713) 621-1515 (Y-RI]FlED ['n. II~CACCOL~ANTS (281) 242-8600
Fax: (7I 3) 621-1570 PROFF. SSIONAL CORPORATION Fax: (281) 242-7333
Independent Auditors' Report
To the Honorable Mayor and Members
of the City Council
City of Pearland, Texas
We have audited the accompanying general purpose financial statements of the City of Pearland, Texas, as
of and for the year ended September 30, 2000, as listed in the table of contents. These general purpose
financial statements are the responsibility of the City's management. Our responsibility is to express an
opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the general purpose-
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall general purpose financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of the City of Pearland, Texas, as of September 30, 2000, and the results of
its operations and the cash flows of its proprietary fund type for the year then ended in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken
as a whole. The combining and individual fund and account group financial statements and schedules listed
in the table of contents are presented for purposes of additional analysis and are not a required part of the
City's general purpose financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all
material respects in relation to the general purpose financial statements taken as a whole.
The Required Pension System supplementary Information listed in the table of contents is not a required part
of the general-purpose financial statements but is supplementary information required by the Government
Accounting Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the additional
information. However, we did not audit the information and express no opinion on it.
Houston, Texas
January 11, 2001
13-
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GENERAL PURPOSE FINANCIAL STATEMENTS
15
Governmental Fund'13,pes Fund q[ype
Speeial Debt Capital Enterprise
General Revenue Service Projects Fund
Cash and cash equivalents $ 6,503360 $ 558,997 $ 736,014 $ 5,049,607 $ 27,800,968
Receivables:
Property taxes 292,363 186,807
Less: Allowance for estimated uncollectibles (63,008) (84,603)
Acerued interest 31,943 88 3,826 142,751
Due from other funds 63,008 50,569 560,464
Inventories 51,678
Restxicted assets. Cash and cash equivalents 425,136
Du fen-ed charges 503,652
Fixed assets (net where applicable '
of accumulated depreciation) 28,880,315
general long.term debt
Total Assets and Other Debits $ 7,323,007 $ 609,654 $ 922,821 $ 5,295,611 $ 59,399,834
Accounts payable $ 797,699 $ 5,173 $ 54,866 $ 149,970 $ 1,559,251
Accrued liabilities 253,535 90,700
Due to other funds 610,015 1,018 63,008
S~curity delxx~its 528,630
Current ponlon - revenue bonds 585,000
Cerlitlcates of obllgalion
Obligafons under capital leases
General obligation bonds
Total Liabilities 2,117,798 6,191 241,673 181,536 36,138264
Conlxibuted capital 18,054,250 ·
Investment in general fixed aeseta
Retained earnings 5,207,320
Fund Balances:
Rer~rved for encumbrances 294,544 2,260,550
Designated for debt service 681,148
Designated for subsequent years' exgenditm-es 603,463 2,853,525
Undesignated 4,910,665
Total Equity and Other Credits 5,205,209 603,463 681,148 5,114,075 23,261,570
Total Liabilities, Equity, and Other Credits $ 7323,007 $ 609,654 $ 9~2,821 $ 5,295,611 $ 59,399,834
See Notes to Financial Statements.
Exhibit
Tmls
Prinmy Discretely
Account Groups Government Presented Totals ReporUng Entity
General General Long- (Memorandum Component (Memorandum Only)
Fixed Assets Term Debt Only) Units Sept. 30, 2000 Sept. 30, 1999
$ $ $ 40,649,046 $ 3,543,017 $ 44,192,063 $ 39,179,047
479,170 479,170 389,445
1,614,714 1,614,714 t,252,610
(147,611) (147,61 I) (116,754)
242~178 242,178 t5,966
178,608 16,488 195,096 139,669
674,041 674,041
51,678 51,678 60,000
425,136 425,136 413,t49
503,652 503,652 541,290
49,334,277 78,214,592 55,403 78,269,995 64,963,456
681,148 681,148 681,148 208,324
30,885,631 30,885,631 4,752,620 35,638,251 39,188,615
$ 49,334,277 $ 31,566,779 $ 154,451,983 $ 8,367,528 $ 162,819,511 $ 146~234,817
$ $ $ 2.566,959 $ 34,727 $ 2,601,686 $ 2,348,910
344,235 344,235 378,762
674,041 674,041
528,630 528,630 416,988
1,215,529 L551,390 7.620 1,559,010 1,501,502
510,736 510,736 405,411
585,000 95,000 680,000 510,000
16,210,000 16,210,000 16,2t0,000 !7,525,000
33,140,000 33,140,000 25,725,000
381,250 381,250 381.250 888,569
13,760,000 13,760,000 4,650,000 18,410,000 19,850,000
31,566,779 70,252,241 4,787,347 75,039,588 69,550,142
18,054,250 18,054,250 16,021,808
49,334,277 49,334,277 55,403 49~389,680 44,534,133
5,207,320 5,207,320 3,337,913
2,555,094 2,555,094 816,874
681,148 681,148 208,324
3,456,988 . - 3,456,988 4,667,445
4,910.665 3,524.778 8,435,443 7,098,178
49,334,277 84,199,742 3,580,181 87,779,923 76.684,675
$ 49,334,277 $ 31,566,779 $ 154,45t,983$ ~ 8,367,528 $ 162,819,511 $ 146,234,817
17
CITY OF PEARLAND. TEXAS
COMBINED STATEMENT OF REVENUES. EXPENDITURES, AND
CHANGES IN FUND BALANCES -ALL GOVERNMENT~]t
FUND TYPES. AND DISCRETELY PRESENTED COMPONENT UNITS
Year Ended September 30.
with comparative totals for Year Ended Se_ntember 30. 1999
Governmental Fund
Special Debt
General Revenue Service
Revenue~
Property taxes and penalties $ 5,876,495 $ $ 3,395,878
Other taxes 3,697,523 47,937
Licenses and permits 1,469,799
Fines and forfeitures 731,959
Franchise fees 2,022,789
Charges for services 3,061,545
Intergovernmental revenues 15,000 303,631
Other revenues 827,950 278,757 68,780
Total Revenues 17,703,060 630,325 3,464,658
Exnenditures
Current:
General government 3,580,693 390,998
Public safety 5,944,516 7,675
Public works 5,635,397
Community services 1,762,770 18,840
Economic Development
Capital Outlay
Debt Service:
Principal retirement 1,605,000
Interest and fiscal charges 1,459,038
Total Expenditures 16,923,376 417,513 3,064,038
Revenues Over (Under) Expenditures 779,684 212,812 400,620
Other Financln~ Sources IUses~
Operating transfers in 781,000 100,000
Operating transfers (out) (922,967)
Operating transfers in from component unit (P.E.D.C.) 110,000
Operating transfers out to primary government
Proceeds from lease financing
Proceeds from sale of refunding bonds 10,894,532
Payment to refunded bond escrow agent 00,822,328)
Total Other Financing Sources (Uses) (31,967) 100,000 72,204
Revenues and Other Financing Sources
Over (Under) Expenditures and
Other Financing (Uses) 747,717 312,812 472,824
Fund Balances-Beginning 4,457,492 290,650 208,324
Fund Balances- Ending $ 5,205,209 $ 603,462 $ 681,148
See Notes to Financial Statements.
18
Exhibit 2
Totals Discretely
Types (Memorandnm Only) Presented Totals Reporting Entity
Capital Primary Component (Memorandum Only)
Projects Government Units 2000 1999
$ $ 9,272,373 $ $ 9,272,373 $ 8,192,927
3,745,460 1,841,918 5,587,378 5,191,647
1,469,799 1,469,799 955,819
731,959 731,959 675,691
2,022,789 2,022,789 1,943,545
3,061,545 3,061,545 2,960,214
318,631 318,631 489,860
908,844 2,084,331 600,465 2,684,796 1,663,726
908,844 22,706,887 2,442,383 25,149,270 22,073,429
3,971,691 3,971,691 3,690,296
5,952,I9t 5,952,191 5,698,238
5,635,397 5,635,397 5,137,708
1,781,6! 0 1,781,610 t,598,521
531,969 531,969 455,517
1,679,600 1,679,600 701,280 2,380,880 6,989,770
1,605,000 90,000 1,695,000 1,525,000
1,459,038 282,023 1,741,061 2,057,811
1,679,600 22,084,527 1,605,272 23,689,799 27,152,861
(770,756) 622,360 837,111 1,459,471 (5,079,432)
694,967 1~75,967 1,575,967 1,258,000
(922,967) (922,967) (464,384)
110,000 110,000 IlO,O00
(110,000) (110,000) (110,000)
151,676 151,676 151,676 425,000
10,894,532 10,894,532
(10,822,328) (10,822,328)
846,643 986,880 (110,000) 876,880 1,218,616
75,887 1,609,240 727,111 2,336,351 (3,860,816)
5,038,188 9,994,654 2,797,667 12,792,321 16,651,637
$ 5,114,075 $ 11,603,894 $ 3,524,778 $ 15,128,672 $ 12,790,821
19
CITY OF PEARl. AND. TI~NAS
COMBINED STATEMENT OF REVENUES. EXPENDITURES. AND
CHANGES 1N FUND BALANCES - BUDGET AND ACTUAL
GENERAL AND DEBT SERVICE FI. lrqD$
Year Ended September 30. 2000
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Property taxes and penalties $ 5,907,278 $ 5,876,495 $ (30,783)
Other taxes 3,863,000 3,697,523 (165,477)
Licenses and permits 934,700 1,469,799 535,099
Fines and forfeitures 716,500 731,959 15,459
Franchise fees 2,050,000 2,022,789 (27,211)
Chargos for services 3,164,650 3,061,545 (103,105)
Intergovernmental revenues 359,200 15,000 (344,200)
Other revenues 553,000 827,950 274,950 ' ·
Total Revenues 17,548,328 17,703,060 154,732
Current:
General government 3,806,491 3,580,693 225,798
Public safety 6,347,009 5,944,516 402,493
Public works 5,862,888 5,635,397 227,491
Community services 1,806,122 1,762,770 43,352
Debt Service:
Principal retirement
Interest and fiscal agent fees
Total Expenditures 17,822,510 16,923,376 899,134
Other Finaneine Sources
Operating transfers in 781,000 781,000
Operating transfers (ou0 (800,081) (922,967) (122,886)
Operating in from component unit (P.E.D.C.) 110,000 110,000
Proceeds from sale of refunding bonds
Payment to refunded bond escrow agent
Total Other Financing Sources(Uses) 90,919 (31,967) (122,886)
Revenues and Other Financing
Sources Over (Under)
Expenditures (183,263) 747,717 930,980
Fund Balances - Beginning 4,457,492 4,457,492
Fund Balances- Ending $ 4,274,229 $ 5,205,209 $ 930,980
See Notes to Financial S[atements.
20
Exhibit 3
Debt Service Fund
Variance
Favorable
Budget Actual (Unfavorable)
$ 3,342,006 $ 3,395,878 $ 53,872
20,000 68,780 48,780
3,362,006 3,464,658 102,652
1,455,000 1,605,000 (150,000.00)
1,920,000 1,459,038 460,962
3,375,000 3,064,038 3 i 0,962
10,894,532 10,894,532
(10,822,328) (10,822,328)
72,204 72,204
(12,994) 472,824 485,8t8
208,324 208,324
$ 195,330 $ 681,148 $ 485,818
21
CITY OF PEARLAND.TEXAS
Exhibit 4
STATEMENT OF REVENUES. EXPENSES. AND
CHANGES IN RETAINED EARNINGS-
PROPRIETARY (ENTERPR1SE~FUND TYpE
Year Ended September 30. 2000
Enterprise
Op~ratin~ Revenues
Water & sewer sales and services $ 7,105,559
Other revenue 40,472
Total Operating Revenaes 7,146,031
OperatlngExpenses
Production and wastewater 2,207,296
Distribution and collection 618,633
Accounting and collections 279,313
O th er requirements 338,568
Construction 455,479
Total Operating Expenses 3,899,289
3,246,742
Depreciation 959,756
Operating Income 2,286,986
N on-Oneratin~ Revenue
Earnings on investments 1,599,406
Interest and fiscal charges (1,326,348)
Amortized bond issuance costs (37,637)
Total Non-Operating Revenues (Expenses) 235,421
Income Before Operating Transfers 2,522,407
Operatlne Transfers In (Out~
Operating transfers in 128,000
Operating transfers (out) (781,000)
N et Income 1,869,407
Retained Earnings - Beginning 3,337,913
Retained Earnings - Ending $ 5,207,320
See Notes to Financial Statements.
22
CITY OF PEARLAND. TEXAS
Exhibit 5
STATEMENT OF CASH FLOWS -
PROPRIETARY FENTERPRISE~. FUND TYPE
Year Ended Sentember 30. 2000
Enterprise
Cash Flows from Oferatin~ Activitie~
Operating income $ 2,286,986
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation expense 959,756
Changes in Assets and Liabilities:
(Increase) in accounts receivable (207,142)
(Increase) in due from other funds (560,464)
Increase in customer deposits 111,642
Increase (decrease) in accounts payable 583,197
Increase (decrease) in accrued compensated absences (27,090)
(Decrease) in deferred charges (37,638)
(Decrease) in accrued liabilities (42,848)
Increase in due to other funds 63,008
Net Cash Provided by Operating Activities 3,129,407
Cash Flows from Noneapital Financing Activ!ties
Operating transfers in 128,000
Operating transfers (out) (781,000)
(653,000)
Cash Flows from Canital and Related Financing
Activities
Contributed capital - impact fees 2,032,440
Proceeds from Revenue Bonds 8,000,000
Purchase of fixed assets (9,410,748)
Revenue bond principal payments (420,000)
Capital lease principal payments (62,360)
Interest payments on revenue bonds (1,326,348)
Amortized issuance expense on revenue bonds 37,637
(1,149,379)
Cash Flows from lnvastine Aq:tivi[ies
Interest on investments 1,566,836
1,566,836
Net (decrease) in cash 2,893,864
Cash and Cash Equivalents - Beginning 25,332,240
Cash and Cash Equivalents - Ending $ 28,226,104
Cash 27,800.968
Restricted Cash 425.136
Cash and Cash Equivalents - Ending $ 28,226,104
See Notes to Financial Statements.
23
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Pearland, Texas, was incorporated in December 1959 and adopted the "Home Rule Charter"
February 6, 1'971, pursuant to the laws of the State of Texas. The City operates under a "Council-Manager"
form of government and provides services authorized by its charter. Presently, these services include police
and fire protection, water and sewer services, drainage, sanitation, building and code inspection, planning,
zoning, engineering, street repair and maintenance, park maintenance, recreational activities for citizens, and
general administrative services.
The financial statements of the City of Pearland have been prepared in conformity with generally accepted :
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards
Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles. The more significant of the City's accounting policies are described below:
A. Reporting Entity
The City is an independent political subdivision of the State of Texas, governed by an elected mayor and
five member council, and is considered a primary gnvemment. As required by generally accepted
accounting principles, these general purpose financial statements have been prepared based on
considerations regarding the potential for inclusion of other entities, organizations, or functions as part
of the City's financial reporting entity. The Pearland Economic Development Corporation (PEDC.) has
been included in the City's financial reporting entity as a discretely presented component unit. The City
is considered a primary government for financial reporting purposes and its activities are not considered
a part of any other governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the
City's financial reporting entity, are based on criteria prescribed by generally accepted accounting
principles. These same criteria are evaluated in considering whether the City is a part of any other
governmental or other type of reporting entity. The overriding elements associated with prescribed
criteria considered in determining that the City's financial reporting entity status is that of a primary
government are that it has a separately elected governing body; it is legally separate; and it is fiscally
independent of other state and local govemments. Additional prescribed criteria under generally
accepted accounting principles include considerations pertaining to organizations for which the primary
government is financially accountable; and considerations pertaining to other organizations for which
the nature and significance of their relationship with the primary government are such that exclusion
would cause the reporting entity's financial statements to be misleading or incomplete.
As required by generally accepted accounting principles, the financial statements of the reporting entity
include those of the City of Pearland (the primary government) and its component units, entities for
which the City is considered to be financially accountable. Blended component units, although legally
separate entities, are, in substance, part of the government's operations and so data for these units would
be combined with data of the City. The City has no blended component units. The City's discretely
presented component units are reported in a separate column in the combined financial statements.
24
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A. Reportin'g Entity
Discretely Presented Component Units:
The component units in the combined financial statements include the financial data of the City's
component units. They are reported in a separate column to emphasize they are legally separate from
the City. The City Council appoints the board members for the Pcarland Economic Development
Corporation. The City Council appoints several members to the Tax Increment Reinvestment Zones
with the remaining members being appointed in accordance with state law.
1. The Pearland Economic Development Corporation (PEDC) is responsible for economic
development within the City's jurisdiction. The PEDC is fiscally dependent upon the
government because, besides appointing the board, the City Council also must approve the
PEDC's budget and any debt issuances.
2. The two Tax Increment Reinvestment Zone's (TIRZ #1 and TIRZ #2) provide tax assisted
property development and/or redevelopment in specific geographic areas in accordance with
applicable state laws. Besides appointing board members, the City Council must also
approved the TIRZ's budgets and any debt issuances.
The following page presents condensed financial statements for each of the three discretely presented
component units. Additional financial information may be obtained from their respective administrative
offices at:
Pearland Economic Development Corporation
or
Tax Increment Reinvestment Zones
at
3519 Liberty Drive
Pearland, Texas 77581-5416
25
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS ·
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Condensed financial statements of each discretely presented component unit are as follows:
Economic Tax Increment Tax Increment
Development Relnvestment Reinvestment
Condensed Balance Sheet: Corporation Zone #1 Zone #2 Totals
Assets:
Currant assets $ 3,490,614 $ 68,536 $ 355 $ 3,559,505
Fixed assets 56,403 65,403
Amount to be provided for retirement
of long-term debt 4.752.620 4,752,620
Total Assets 8,298,637 68,536 355 8,367,528
Liabilities:
Currant liabilities $ 115.906 $ $ 21,44t $ 137,347
General long-term debt 4,650,000 4,650,000
Total Liabilities 4,765,906 21.441 4,787,347
Fund Equity:
Investment in fixed assets 55,403 55,403
Fund balance, unreserved 3.477,328 68,536 (21.086) 3,524,778
Total Equity 3,532,731 68,536 (21.086) 3,580,t81
Total Liability and Equity $ 8,298,637 $ 68.536 $ 355 $ 8,367,528
Condensed Statements of Revenues, Expenses, and Changes In Equity
Revenues $ 2,257.117 $ 67,036 $ 118,230 $ 2,442,383
Expenses:
Current 392.653 139,316 531,969
Capital outlay 701.280 701,280
Debt service 372,023 372,023
Total Expenses 1,465.956 t39,316 1,605,272
Excess (Deficiency) of Revenues
Over (Under) Expenses 791,161 67,036 (21,086) 837.111
Other Financing Uses
Operating transfers out to primary
government (110,000) (110,000)
Excess (deficiency) of Revenues
and Other Sources Over (Under)
Expenses and Other Uses 681,161 67,036 (21,086) 727,111
Fund Equity, Beginning of Year 2,796.167 t,500 2.797,667
Fund Equity, End of Year $ 3,477,328 $ 68,536 $ (21,086) $ 3,524.778
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
.September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting
The City uses funds and account groups to report on its financial position and the results of its
operations. Fund accounting is designed to demonstrate legal compliance and to aid financial
management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the
other hand, is a financial reporting device designed to provide accountability for certain assets and
liabilities that are not recorded in the funds because they do not directly affect net expendable available
financial resources. The following is a description of thc various funds and account groups:
Governmental Fund Types
General Fund
The General Fund is used to account for all financial transactions not properly includable in other
funds. The principal sources of revenues of the General Fund are property taxes, sales and use
taxes, franchise fees, permit fees, and fines and forfeitures. Expenditures are for general
government, finance, public safety, public works, park maintenance and recreation, municipal court,
planning and zoning, and engineering.
Special Revenue Funds
The Special l~.evenue Funds are used to account for all financial transactions for the Regional
Detention, Municipal Court, Hotel/Motel Tax, Park Donations, Park and Recreation Development,
Tree Donation, Tree Trust, Police, Federal Police, Community Service Fund, and special grant
revenues where the funds are for specific uses.
Debt Service Fund
The Debt Service Fund is used to account for the payment of interest and principal on all general
obligation debts of the City. The primary source of revenue for debt service is local property taxes.
Capital Projects Funds
The Capital Projects Funds are used to account for thc proceeds from the sale of general obligation
bonds and certificates of obligation and expenditures of these proceeds for the acquisition of fixed
assets as designated in each bond issue.
27
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Fund Accounting (continued)
Proprietary Fund Types
Enterprise Fund
The Enterprise Fund is used to account for those operations that are financed and operated in a
manner similar to private business or where the Council has decided that the determination of
revenues earned, costs incurred, and/or net income is necessary for management accountability. The
Enterprise Fund is used to account for the City's water and sewer service operations.
Account Groups
General Fixed Assets Account Group
General fixed assets are not capitalized in the funds used to acquire or construct them. Instead,
capital acquisition and construction are reflected as expenditures in governmental funds, and thc
related assets are reported in the general fixed asset account group. All purchased fixed assets are
valued at cost. Donated fixed assets are valued at their estimated fair market value on the date
received.
The costs of normal maintenance and repairs that do not add to the value of the asset, or materially
extend asset lives, are not capitalized. Improvements to fixed assets are capitalized. Assets in the
general fixed asset group are not depreciated. Interest is not capitalized on general fixed assets
acquired through the issuance of tax exempt debt. Public domain (infrastructure) general fixed
assets, consisting of roads, bridges, curbs and gutters, streets, and drainage systems, are capitalized.
General Long-Term Debt Account Group
This account group is used to account for the City's long-term liabilities, which include general
obligation bonds, certificates of obligation and obligations under capital leases due at varying dates
through 2020, and the long-term liability for employees' accrued compensated absences.
28
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS
_September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Basis of Accounting
The accounting and financial reporting ~catment applied to a fund is determined by its measurement
focus. All governmental funds arc accounted for using a current financial resources measurement focus.
As such, only current assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (revenues and other financing resources) and
decreases (expenditures) in net current assets.
The proprietary fund type is accounted for on a flow of economic resources measurement focus. With
this measurement focus, all assets and all liabilities associated with the operation of the funds are
included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital, if
applicable, and retained earnings components. Proprietary fund-type operating statements present
increases (revenues) and decreases (expenses) in net total assets.
Thc modified accrual basis of accounting is used by the governmental fund types. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual (when they become
both measurable and available). "Measurable" means the amount of the transaction can be determined
and "available" means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. The City considers the majority of its major revenues as available when
collected. Expenditures are recorded when the related fund liability is incurred. Principal and interest
on general long-term debt are recorded as liabilities when due.
Those revenues susceptible to accrual under the modified accrual basis are property taxes and other
taxes (primarily sales taxes), franchise fees, intergovernmental revenue, and interest revenue. Licenses
and permits and fines and forfeitures revenues arc not susceptible to accrual because generally they are
not measurable until received in cash.
The City recognized deferred revenue on its balance sheet. Deferred revenue arises when potential
revenue does not meet both the "measttrable" and "available" criteria for recognition in the current
period.
The accounts of the proprietary fund type are maintained, and the financial statements have been
prepared, on the accrual basis of accounting. Under this basis, revenues are recognized when they are
earned and expenses are recognized when they are incurred. The proprietary fund type follows
generally accepted accounting principles prescribed by the Governmental Accounting Standards Board
(the GASB) and all Financial Accounting Standards Board's standards issued prior to November 30,
1989. Subsequent to this date, the City accounts for its proprietary fund type as prescribed by the
GASB.
29
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Budgets
Annual budgets are adopted for the General and Debt Service Funds. The City does not legally adopt an
annual budget for the Special Revenue and C~.pital Project Funds. The City adopts project budgets for
the Capital Projects and Special Revenue Funds~ which are revised annually.
These budgets are created by ordinance and include all sources and uses of funds as approved by
Council. All annual budgets are prepared on a basis consistent with generally accepted accounting
principles (GAAP).
Encumbrance accounting is utilized in all governmental fund types. Encumbrances for materials, other
goods, and purchased services are documented by purchase orders or contracts. Encumbrances
outstanding at year-end do not constitute expenditures or liabilities. The City generally honors these
commitments, and it has been the City's practice to increase the subsequent year's appropriations to
complete these transactions. At year-end, the City reserved a portion of fund balance for outstanding
encumbrances of $294,544 in the General Fund and $2,260,550 in the Capital Projects Fund.
E. Cash and Temporary Investments
Cash and temporary investments consist of amounts in an interest bearing time deposit account, perry
cash funds, Texpool and Lone Star Investment Pool. Texpool and Lone Star Investment Pool are
external investment pools established by interlocal contract under state law. Investments are stated at
fair value based on quoted market prices at September 30, 2000. The net increase or decrease in the fair
value of investments is recorded as investment earnings. Investments are generally held to maturity.
The City pools cash resources of its various funds to facilitate the management of cash. Cash applicable
to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet
current operating requirements. Cash in excess of current requirements is invested in various interest-
bearing securities and disclosed as part of the City's investments. The City pools excess cash of the
various individual funds to purchase investments. These pooled investments are reported in the
combined balance sheet as investments in each fund based on each fund's share of the pooled
investments. Interest income is allocated to each respective individual fund monthly based on its
respective share of pooled investments.
F. Receivables
All trade receivables are shown net of an allowance for uncollectibles.
Property taxes are recorded as revenue when levied for the current year and due, payable, and collected
in the current year. Uncollected amounts at year end are reported as deferred revenue. Property taxes
collected within sixty days subsequent to September 30, 2000, were not considered, material.
30
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENT,q
September 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
G. Interfund Receivables and Payables
During thc course of operations, transactions occur between individual funds for specified purposes.
These receivables and payables are classified as "due from other funds" or "due to other funds" on the
combined balance sheet.
H. Use of Estimates
Thc preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect thc reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results
could differ from those estimates.
I. Inventory
Inventory, which consists of gasoline and auto parts for use in thc City's vehicles, is stated at cost (first-
in, first-out method). Expenditures arc recognized as the fuel and auto parts are used.
J. 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 applieablc bond covenants.
K. Compensated Absences
Compensated absences, which include unpaid vacation, sick, and other employee benefit amounts, are
accumulated during employment. Amounts accumulated arc paid to employees upon separation from
City service. Under thc modified accrual basis of accounting, such amounts are recorded in the General
Long-Term Debt Account Group net of amounts expected to be liquidated with expendable available
financial resources at thc end of the fiscal year, which are recorded as expenditures of the General Fund.
Compensated absences are accrued when incurred in the proprietary funds and recurdcd as a fund
liability.
L. Fund Equity
Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions
from developers, customers, or other funds. Reserves represent those portions of fund equity not
available for expenditure or legally segregated for a specific future use. Designations of fund balance
represent tentative management plans that are subject to change.
31
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30~ 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
M. Cash and Cash Equivalents
For the purpose of the Statement of Cash Flows, thc Proprietary Fund Type considers all investments
with original maturities of three months or less from the date of acquisition to be cash equivalents.
N. Total Columns on Combined Statements
Total columns on the combined statements are captioned (Memorandum Only) to indicate that they are
presented only to facilitate financial analysis. Data in these columns do not present financial position or
results of operations for the City as a whole in conformity with generally accepted accounting
principles.
NOTE 2 - BUDGETARY COMPLIANCE
The City Manager, on or before the tenth day of July of each year, shall submit to Council a proposed
budget. The Council shall review the proposed budget and revise as deemed appropriate prior to
circulation for public hearing.
After the public hearing, the Council may adopt the budget with or without amendment. In amending
the budget, Council may add or increase programs or amounts and may delete or decrease any amount,
except expenditures required by law or for debt or for estimated cash deficits, provided no amendments
to the budget shall increase the authorized expenditures to an amount greater than the total of estimated
income in addition to funds available from prior years. City management may legally amend the adopted
budget in any manner as long as the amendments do not exceed total appropriations by fund. However,
City management has adopted the practice of submitting for City Council's formal approval all budget
amendments that increase total department appropriations by fund.
The Council shall adopt the budget by the 15th of September of each year. Adoption of the budget shall
constitute appropriation of the amounts specified therein as expenditures and shall constitute a levy of
the property tax therein proposed.
Every appropriation lapses at the close of the fiscal year to the extent it has not been expended. Any
encumbered appropriation lapses at year-end but is generally reappropriated as part of the subsequent
year's budget. Expenditures may not legally exceed appropriations at the fund level. At any time during
the fiscal year, the City Manager may request Council to transfer by ordinance any unencumbered
appropriation balance between funds.
No significant supplemental appropriations were necessary during the year.
32 ~,._.
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30~ 2000
NOTE 3 - DEPOSITS (CASH) AND INVESTMENTS
The City'.s cash and investments are classified as cash and cash equivalents, investments, and restricted
cash and investments. The cash and cash equivalents include cash on hand, deposits with financial
institutions, short term investments in external public funds investment pool accounts Texpool and Lone
Star and other investments which have maturities at purchase date of less than three months. The
restricted cash includes cash on deposit with financial institutions. For better management of cash, the
City pools the cash, based on the City's needs, into either deposits in the bank, in short term investments
with Texpool, and Lone Star, or in longer-term investments in commercial paper or US Government
securities. However, each fund's balance of cash and investments is maintained in the books of the City.
The Council has adopted a written investment policy regarding the investment of its funds as defined by
the Public Funds Investment Act (Chapter 2256 Texas Government Code). The investments of the City
are in compliance with the Council's investment policies. It is the City*s policy to restrict its investments
to direct obligations of the U.S. Government, commercial paper, fully eollateralized certificates of
deposit and other interest-bearing time and demand deposits, and other instruments and investments in
public funds investment pools such as the Texas Local Government Investment Pool (Texpool), and
Lone Star, special purpose trust companies authorized by the Texas Legislature in 1986. State law
provides that collateral pledged as security for bank deposits must have a market value of not less than
the uninsured amount of the deposits and must consist of (1) obligations of the United States of its
agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other
obligations, the principal and interest on which are unconditionally guaranteed or insured by the State of
Texas; and/or (4) obligations of states, aguneies, counties, cities, and other political subdivisions of any
state having been rated as to investment quality by a nationally recognized investment rating firm and
having received a rating of not less than A or its equivalent.
Cash and Cash equivalents
At year-end, the City had cash on hand, bank deposits, dePosits with Texpool and Lone Star as follows:
Cash
Cash Bank Equivalent
On Hand Deposits Investments Total
General $ 775 $ 303,125 $ 6,199,560 $ 6,503,460
Special Revenue 543,997 15,000 558,997
Debt Service 86,473 649,541 736,014
Capital Projects 1,156,295 3,893,312 5,049,607
Enterprise 800 7,048,736 21,176,568 28,226,104
Component Unit 885,971 2,657,046 3,543,017
$ 1,575 $ 10,024,597 $ 34,591,027 $ 44,617,199
33
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 3 - DEPOSITS (CASH) AND INVESTMENTS (continued)
Credit Risk Categorization for Deposits
It is the City's policy for deposits to be 100% secured by collateral valued at market or par, whichever is
lower, less the amount of the Federal Deposit Insurance Corporation insurance. The City's pooled and
non-pooled deposits are categorized to give an indication of the level of risk assumed by the City at
September 30, 2000. The categories are described as follows:
Category 1- Deposits which are insured or collateralized with securities held by the City or by
its agent in the City's name.
Category 2- Deposits which are eollateralized with securities held by the pledging financial
institution's trust department or agent in the City's name.
Category 3- Deposits which are not eollateralized or collateralized with securities held by the
pledging financial institution or by its trust department or agent but not in the City's
name.
The City's deposits in banks of $10,024,597 at year-end were entirely covered by federal depository
insurance or by acceptable collateral held by the City's agent in the City's name.
The deposits in Texpool and Lone Star of $34,591,027 are not evidenced by securities that exist in
physical or book entry form and, accordingly, are not categorized by risk. However, the nature of these
funds requires that they be used to purchase investments authorized by the Public Funds Act. The
primary objective of these investment pools is to provide a safe environment for the placement of public
funds in short-term, fully eollateralized investments.
Texpool and Lone Star operate in a manner consistent with the SEC's Rule 2a7 of the Investment
Company Act of 1940. The pools use amortized cost, rather than market value, to report net assets to
compute share prices. Accordingly, the fair value of the positions in Texpool and Lone Star is the same
as the values of Texpool and Lone Star shares.
Fair value of investments are based on quoted market prices in accordance with GASB Statement No.
31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools.
The amount of increase or decrease in the fair value of investments during the year ended September 30,
2000 was not significant.
Texpool
The State Comptroller of Public Accounts exercises oversight responsibility over Texpool, the Texas
Local Government Investment Pool. Oversight includes the ability to significantly influence operations,
designation of management and accountability for fiscal matters. Additionally, the State Comptroller
has established an advisory board composed of both participants in Texpool and other persons who do
not have a business relationship with Texpool. The Advisory Board members review the investment
policy and management fee structure. Finally, Texpool is rated AAAm by Standard & Poors, as well as
the office of the Comptroller of Public Accounts for review.
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 3 - DEPOSITS (CASH) AND INVESTMENTS (continued)
Lone Star
The Lone Star investment pool was created pursuant to the Interlocal Cooperation Act, Texas
Government Code, Chapter 791, and the Public Funds Investment Act, Texas Government Code,
Chapter 2256. The primary objective of this pool is to maintain the safety of principal, while providing
participating government entities with the highest possible rate of return for invested funds. Participants
own pro rata interests in the underlying assets of the fund in which they participate. A participant's sole
source of payment from its investment in the pools is the market value of such assets.
Pursuant to investment agreements approved by each participant with the pool, the business and affairs
of the pools are required to be managed by the pool's Board of Trustees (the Board.) The Board is
consists of members, representing entities that have adopted the investment agreements. The duties of
the board includes, but are not limited to, adopting investment policies, appointing investment officers,
overseeing the selection of investment managers, custodian banks, investment consultants, and other
service providers, monitoring compliance with the pool's investment policy, monitoring performance,
and revising the investment policies to reflect changing conditions affecting the pool or the needs of the
participants.
Pursuant to Section 2256.016(g) of the Investment Act, these pools have established advisory boards
composed of participants and other knowledgeable individuals. The purpose of the advisory boards shall
be to gather and exchange information from participants and non-participants relating to the pools'
operations.
NOTE 4 - PROPERTY TAXES
Property taxes for each year are required to be levied by September 15 and are due upon receipt of the
City's tax bill and become delinquent on February 1 of the fo]lowing year. On January 1 of each year, a
tax lien is attached to the property to secure the payment of all taxes, penalties, and interest. The lien
exists in the favor of the State and each taxing unit. Appraised values are established by the Central
Appraisal District (CAD) of Brazoria County, Texas, through procedures established by the Texas
Legislature. The Pearland Independent School District bills and collects the City's property taxes.
The procedure for collection of delinquent taxes is to send out delinquent notices and a letter and then
refer the delinquent accounts to the Tax Attorney for legal action. The Home Rule Charter requires the
foreclosure proceedings no later than two years after taxes first become delinquent.
A penalty of 7% is added to delinquent taxes on February 1 and increases 2% each month through
September. An additional penalty of 15% is added in July for attorney costs. There are no discounts
allowed in taxes.
The City is permitted, by Article 33, Section 5, of the State of Texas Constitution and the City Charter,
to levy property taxes up to $2.50 per $t00 of assessed valuation for general governmental services.
Within the $2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be
levied for debt service. The property tax rates to finance general governmental services and debt service
for the 1999-2000 tax year were $.44000 and $.25500, respectively, per $100 of assessed valuation. The
1999 assessed value and total tax levy as adjusted through September 30, 2000, were $1,320,032,285
and $9,174,224, respectively.
35
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 4 - PROPERTY TAXES (continued)
The following is an analysis of the September 30, 2000, delinquent tax balances in the General and Debt
Service Funds, by year of levy.
General Debt Service
Year of Levy Fund Fund Total
1999 $ 130,758 $ 76,082 $ 206,840
1998 58,325 33,802 92,127
1997 30,440 17,641 48,081
1996 15,690 9,093 24,783
1995 12,480 7,233 19,713
1994 13,807 8,207 22,014
1993 9,271 6,982 16,263
1992 2,548 2,519 5,067
1991 2,966 2,821 5,787
1990 3,674 4,102 7,776
1989 and prior 12,404 18,325 30,729
$ 292,363 $ 186,807 $ 479,170
The City has enacted an ordinance providing for the exemption of $25,000 of the assessed value of
residential homesteads of persons 65 years of age or older from property taxes. This is provided by
Section 1-b(a) of Article 8 of the Constitution of Texas. An exemption of $10,000 is allowed disabled
persons on homesteads and up to $3,000 is allowed disabled veterans on any one piece of property.
Additionally, the market value of agricultural land is reduced to agricultural value for purposes of the
City's tax levy calculation.
The 1999 assessed values, reduced by exempt property, exemptions, and reduction in market value of
agricultural land, were as follows:
Assessed valuation:
Real property $ 1,346,642,050
Personal property 174,353,848
Total assessed valuation 1,520,995,898
Exempt property 73,929,590
Other Exemptions:
Over 65 homestead 37,858,579
Disabled veterans 1,337,790
Freeport 7,036,630
House Bill 366 6,910
Abatement 3,431,990
Pollution 48,970
Prorated Exempt Property 127,974
Homestead Cap Adjustment 30,285,070
Agricultural use and historical exemptions 46,900,110
Subtotal other exemptions 127,034,023
Net assessed valuations $ 1,320,032,285
36
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 5 - CHANGES IN FIXED ASSETS
The following is a summary of changes in general fixed assets for the year ended September 30, 2000:
Balance Balance
Oct. 1, 1999 Additions Deletions Sept. 30, 2000
Land $ 1,497,777 $ 15,500 $ $ 1,513,277
Buildings 7,381,658 2,506,576 9,888,234
Construction in progress 2,339,349 2,339,349
Improvements other than
buildings 26,196,265 (778,937) 25,417,328
Machinery and equipment 9,426,575 749,514 10,176,089
Totals $ 44,502,275 $ 5,610,939 $ (778,937) $ 49,334,277
The following is a summary of changes in the Enterprise Fund fixed assets for the year ended September 30,
2000:
Balance Balance
Oct. I, 1999 Additions Deletions Sept. 30, 2000
Land $ 189,071 $ $ $ 189,071
Equipment 2,224,368 100,170 2,324,538
Buildings and
improvements 19,706,357 8,723,599 28,429,956
Construction in Progress 7,557,945 8,473,652 7,886,676) 8,144,921
29,677,741 17,297,421 7,886,676) 39,088,486
Less allowance for
depreciation (9,248,415) (959,756) (I 0,208,171 )
Totals $ 20,429,326 $ 16,337,665 $ 7,886,676) $ 28,880,315
Depreciation on Enterprise Fund fixed assets is recorded using the straight-line method over the following
estimated useful lives of the assets:
Description Estimated Useful Lives
Equipment 5 to 10 years
Buildings and infi:astmetare 3 to 50 years
37
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30~ 2000
NOTE 6 - LONG-TERM DEBT
A. General Long-Term Debt
The following is a summary of general long-term debt transactions for the year ended September 30, 2000:
Certificates General Capital
of Obligation Obligation Bonds Leases Totals
Balance,
October l, 1999 $ 17,525,000 $ 15,105,000 $ 826,209 $ 33,456,209
Additions 10,830,000 10,830,000
Retirements (505,000) (1,100,000) (444,959) (2,049,959)
Refunded (810,000) (11,075,000) (11,885,000)
Balance,
September 30, 2000 $ 16,210,000 $ 13,760,000 $ 381,250 $ 30,351,250
Certificates of Obligation and General Obligation Bonds
Certificates of obligation and general obligation bonds at September 30, 2000, are comprised of the
following individual issues~
Principal
Payment Interest
Interest Date/ Payment Debt
Issue Rates Maturity Dates Outstanding
$2,125,000 Tax
and Revenue 6.30% to March 1/ March 1/
Series I991 7.80% 2002 Septemberl $ 335,000
$5,000,000 Public
Works 5.00% to March 1/ March 1/
Series 1995 7.00% 2014 Septemberl 4,425,000
$6,250,000 Tax
and Revenue 5.25% 1o March 1/ March 1/
Series 1997 7.25% 2016 Septemberl 6,050,000
$5,500,000 Tax
and Revenue 5.20% to March 1/ March 1/
Series 1997 A 7.20% 2018 Septemberl 5,400,000
Subtotal Certificates of Obligation 16,210,000
38
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 6 - LONG-TERM DEBT (continued)
A. General Long-Term Debt
Certificates of Obligation and General Obligation Bonds
Principal
Payment Interest
Interest Date/ Payment Debt
Issue Rates Maturity Dates Outstanding
$10,830,000
Refunding Bonds 6.00% to March 1/ March 1/
Series 2000 8.00% 2009 Septemberl 10,830,000
$6,510,000
Refunding Bonds 2.65% to March I/ March 1/
Series 1993 4.63% 2003 Septcmberl 2,555,000
$2,000,000 Street
Improvement Bonds 6.00% to March 1/ March 1/
Series 1992 8.00% 2003 Septemberl 375,000
Subtotal General Obligation Bonds 13,760,000
Total $ 29,970,000
The annual requirements to amortize alt certificates of obligation a~d general obligation bonds outstanding
as o£September 30, 2000 are as follows:
Year Ending
Sept. 30, 2000 Principal Interest Total
2001 1,680,000 1,584,480 3,264,480
2002 1,580,000 1,450,946 3,030,946
2003 1,645,000 1,363,517 3,008,517
2004 1,730,000 1,273,738 3,003,738
2005 2,030,000 1 ,I 76.766 3,206,766
2006-2016 21,305,000 6,273,808 27,578,808
29,970,000 13,123,255 43,093,255
There is $681,148 available in the Debt Service Fund to service the above obligations and the City's
obligations under capital leases.
39
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 6 - LONG-TERM DEBT ~(continued)
Debt Refunding
In August of 2000, the City issued $10.83 million in Permanent Improvement Refunding Bonds with an
average interest rate of 4.8 percent to advance refund $I 1.885 million of outstanding 1990 and 1992 Series
bonds and 1991 Certificates of Obligation (C.C.'s). The net proceeds of $10.672 million (after payment of
$222,485 in underwriting fees, insurance and other issuance costs) were used to purchase U.S. government
securities and to make an initial escrow fund deposit. These securities and cash were deposited into an
irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded
portions of the 1990 and 1992 Series bonds and 1991 C.O.'s. As a result, the refunded portions of the 1990
and 1992 Series bonds and 1991 C.O.'s are considered to be defeased and the liability for those bonds and
C.O.'s has been removed from the general long-term debt account group.
The City advance refunded potions of the 1990 and 1992 Series bonds and 1991 C.O.'s to reduce its total
debt service payments over the next eight years by more than $1.015 million and to obtain an economic gain
(difference between the present values of the debt service payments on the old and new debt) of $934,170.
Obligations Under Capital Leases
Capital leases bear interest rates ranging from 4.38% to 5.85% and have maturity dates ranging from 2001 to
2002. Annual requirements to satisfy these obligations follow:
Year Ending
Sept. 30, 2000 Principal Interest Total
2001 306,526 14,200 320,726
2002 74,724 1,636 76,360
381,250 15,836 397,086
40 :
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 6 - LONG-TERM DEBT (continued)
Compensated Absences
Employees earn vacation leave at the rate of lifteen days per year from one to fifteen years, twenty days per
year for service of sixteen to nineteen years, and twenty-five days per year for service of twenty years or
more. Employees are required to take their earned vacation. Employees who are unable to use their
vacation, for various reasons, may, with the City Manager's approval, carry over fifty percent of the unused
portion of the vacation, or, receive compensation for a maximum of forty hours.
City employees receive eleven paid holidays per year. Employees may be paid or may elect to receive
compensatory time offfor thc holiday. Overtime is earned at one and one-half times the regular rate of pay.
Employees may be paid or receive compensatory time. The maximum accrual for overtime is 160 hours,
except for employees involved in public safety, who can accrue up to 320 hours.
The liability for compensated absences at September 30, 2000, is comprised of the following components:
Vacation $ 139,827
Sick 911,501
Compensatory Time 164,201
$ 1,215,529
B. Enterprise Fund Debt
The following is a summary of Enterprise Fund long-term debt transactions of the City for the year ended
September 30, 2000:
Certificates Water & Wastewater Capital
of Obligation Revenue Bonds Leases Totals
Balance,
October I, 1999 $ 17,100,000 $ 9,045,000 $ 62.360 $ 26,207.360
Additions 8,000,000 8,000,000
Retirements (50,000) (370,000) (62,360) (482,360)
Balance,
September 30, 2000 $ 17,050,000 $ 16,675,000 $ $ 33,725,000
41
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS ,'
September 30~ 2000
NOTE 6 - LONG-TERM DEBT (continued)
B. Enterprise Fund Debt
Revenue Bonds and Certificates of Obligation
A summary of the terms of revenue and certificates of obligation bonds recorded in the Enterprise Fund as
of September 30, 2000, is a follows:
Principal
Payment Interest
Interest Date/ Payment Debt
Issue Rates Maturity Dates Outstanding
$1,115,000
Water & Sewer
Revenue Bonds 4.5% to Sept. 1/ March 1/ i':
Series 1996 A 5.20% 2002 September 1 $ 400,000
$8,870,000
Water & Sewer
Revenue Bonds 2.9% to Sept. 1/ March 1/
Series 1996 B 4.85% 2016 September I 8,275,000
$8,000,000
Water & Sewer
Revenue Bonds Sept. 1/ March 1/
Series 1999 4.90% 2020 September I 8,000,000
Subtotal Water & Sewer Revenue Bonds 16,675,000
$17,100,000
Certificates of Obligation 2.60% to March 1/ March 1/
Series 1998 A 3.80% 2,018 September I 17,050,000
Subtotal Certificates of Obligation 17,050,000
Total $ 33,725,000
CITY OF P.EARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 6 - LONG-TERM DEBT (continued)
B. Enterprise Fund Debt
Revenue Bonds and Certificates of Obligation
The annual requirements to amortize all revenue bonds and certificates of obligation outstanding as of
September 30, 2000, are as follows:
Year Ending
September 30, Principal Interest Total
2001 $ 585,000 $ 1,380 444 $ 1,965,444
2002 645,000 1,354 323 1,999,323
2003 675,000 1,325 770 2,000,770
2004 715,000 1,298 573 2,013,573
2005 1,490,000 1,258 336 2,748,336 ·
2006-2020 29,615,000 10,241 328 39,856,328
$ 33,725,000 $ 16,858,774 $ 50,583,774
C: Component Unit Debt
The following is a summary of Component Unit long-term debt transactions for the year ended September
30, 2000.
Sales Tax
Revenue Bonds
Balance, October 1, 1999 $ 4,835,000
Retirements (90,000)
Balance, September 30, 2000 $ 4,745,000
43
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 6 - LONG-TERM DEBT.(continued)
C. Component Unit Debt
Sales Tax Revenue Bonds
The terms of Sales Tax Revenue Bonds recorded in the Economic Development Corporation Fund, as of
September 30, 2000, are as follows:
Principal
Payment Interest
Interest Date/ Payment Debt
Issue Rates Matxuity Dates Outstanding
Sales Tax
Revenue
Bonds 5.2% to Sept. 1/ March 1/
Series 1997 7.2% 2016 September 1 $ 4,745,000
The annual requirements to amortize all Sales Tax Revenue Bonds outstanding as of September 30, 2000,
are as follows:
Year Ending
September 30, Principal Interest Total
2001 $ 95,000 $ 274 410 $ 369,410
2002 100,000 267 570 367,570
2003 185,000 260 370 445,370
2004 200,000 247 050 447,050
2005 210,000 232 650 442,650
2006-2016 3,955,000 1,431 630 5,386,630
$ 4,745,000 $ 2,713 680 $ 7,458,680
44 L,
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 6 - LONG-TERM DEBT (continued)
D. AnnUal Debt Service Requirements
The annual requirements to amortize all long-term debt outstanding at September 30, 2000, including
interest payments and excluding compensated absences, are as follows:
General Enterprise Total Component
Year Ending Long-Term Fund Primary Unit Fund
September 30, Debt Debt Government Debt Total
2001 $ 3,585,206 $ 1,965,444 $ 5,550,650 $ 369,410 $ 5,920,060
2002 3,107,306 1,999,323 5,106,629 367,570 5,474,199
2003 3,008,517 2,000,770 5,009,287 445,370 5,454,657
2004 3,003,738 2,013,573 5,017,311 447,050 5,464,361
2005 3,206,766 2,748,336 5,955,102 442,650 6,397,752
2006-2020 27,578,808 37,278,703 64,857,511 5,386,630 70,244,141
43,490,341 50,583,774 91,496,490 7,458,680 98,955,170
Less interest (13,139,091) 16,858,774) (29,997,865) (2,713,680) 02,711,545)
$ 30,351,250 $ 33,725,000 $ 61,498,625 $ 4,745,000 $ 66,243,625
45
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30~ 2000
NOTE 7 - OPERATING TRANSFERS BETWEEN FUNDS
For the year ended September 30, 2000, operating transfers between funds consisted of the following:
Fund Transfers in (out) Transfers in Transfers out
General Fund Enterprise fund $ 781,000
Subtotal 781,000
General Fund Component Unit (P.E.D.C.) 110,000
Special Revenue General 100,000
Capital Projects
Capital Projects General 572,081
Street Assessment General 122,886
Subtotal 694,967
Enterprise Fund General 128,000
General Fund (Capital Projects) (572,081)
General Fund (Enterprise fund) (128,000)
General Fund (Street Assessment) (122,886)
General Fund (Special Revenue) (100,000)
Subtotal (922,967)
Enterprise Fund (General Fund) (781,000)
Component Unit (P.E.D.C. (General Fund) (110,000)
Totals $ 1,813,967 $ (1,813,967)
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 8 - FUND'EQUITY
The City's Capital Project Fund equity at September 30, 2000, has been designated for sUbsequent years'
expenditures. Tentative plans for the expenditure of these resources are as follows:
Transportation Improvements $ 1,410,859
Drainage improvements 1,442,666
$ 2,853,525
Deficit Fund Balance
The TIRZ #2 Fund had a deficit fund balance of the following amount as of September 30, 2000:
Fund Balance
Fund (Deficit)
TIRZ #2 $ (21,086)
NOTE 9 - CONTRIBUTED CAPITAL
A summary of changes in contributed capital is as follows:
Enterprise Fund
Beginning Balance $ 16,021,808
Impact Fees 2,032,442
Ending Balance $ 18,054,250
NOTE 10 - PENSION PLAN
Plan Description
The City provides pension benefits for all of its full-time employees through a nontraditional, joint
contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS),
one of 731 administered by TMRS, an agent multiple-employer public employee retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City~
financed monetary credits, with interest. At thc 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 thc employee, with interest, prior to establishment of the plan. Monetary credits for service
since thc plan began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In
addition, the City can grant, as oi~en as annually, 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 thc current employee contribution rate and City matching percent
47
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE I0- PENSION PLAN (continued)
Plan Description (continued)
had always been in existence; and if the employee's salary had always been the average of his salary in the
last three years that are one year before the effective date. At retirement, the benefit is calculated as if the
sum of the employee's accumulated contributions, with interest, and the employer-financed monetary
credits, with interest, were used to purchase an annuity. Members can retire at age 60 and above with 10 or
more years of service or with 20 years of service regardless of age. A member is vested after 10 years. 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. :
Contributions
The contribution rate for the employees is 7% and the City matching ratio is currently 2 to 1, both as
adopted by the governing body of the City. Under the state law governing TMRS, the actuary annually
determines the City contribution rate. This rate consists of the normal cost contribution rate and the prior
service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The
normal cost contribution rate finances the currently accruing monetary credits due to the City matching
percent, which are the obligation of the City as of an employee's retirement date, not at the time the
employee's contributions are made. The normal cost contribution rate is the aetuarially determined percent
of payroll necessary to satisfy the obligation of the City to each employee at the time his/her retirement
becomes effective. The prior service contribution rate amortizes the unfunded (overfunded) actuarial
liability (asset) over the remainder of the plan's 25-year amortization period. The unit credit actuarial cost
method is used for determining the City contribution rate. Both the employees and the City make
contributions monthly. Since the City needs to know its contribution rate in advance for budgetary process,
there is a nne-year delay between the actuarial valuation that is the basis for the rate and the calendar year
when the rate goes into effect. (i.e. December 31, 1999, valuation is effective for rates beginning January
2001).
Because the actuary determines contribution rates on an annual basis and the City pays the calculated rate
each month, the City will always have a net pension obligation (NPO) of zero at the beginning and end of
the period, and the annually required contributions (ARC) will always equal contributions made. Trend
information regarding ARC and NPO is shown below.
City Fiscal Year
2000 1999 1998
Net Pension Obligation (NPO) at the
Beginning of the Period $ $ $
Annual Pension Costs: ~'-
Annual Required Contribution (ARC) 736,702 629,516 543,300
Contributions Made 736,702 629,516 543,300 .
Increase in NPO
NPO at the End of the Period $ $ $
% Annual Pension Cost Contributed 100% 100% 100%
48
CITY OF PEARLAND, TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
NOTE 10- PENSION PLAN (continued)
Contributions (continued)
A schedule of funding progress for TMRS for the three most recent actuarial valuations may be found in the
required supplementary information section of the City's Comprehensive Annual Financial RePort.
Information as to the latest actuarial valuation follows:
Valuation Date 12/31/99
Actuarial Cost Method Unit Credit
Amortization Method Level Percent of Payroll
Remaining Amortization Period 25 Years - Open Period
Asset Valuation Method Amortized Cost
Actuarial Assumptions
Investment Rate of Return 8%
Projected Salary Increases None
Includes Inflation At None
Cost-of-living Adjustments None
The City is one of 731 municipalities having its benefit plan administered by TMRS. Each of the 731
municipalities has an annual, individual actuarial valuation performed. All assumptions for the December
31, 1998, valuations are contained in the 1998 TMRS Comprehensive Annual Financial Report, a copy of
which may be obtained by writing to P.O. Box 149153, Austin, Texas 78714-9153.
NOTE 11 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City's risk management program
mainly encompasses obtaining property and liability insurance through Texas Municipal League (TML-
IRP), an Intergovernmental Risk-Pool and through commercial insurance carders. The City purchases
commercial general insurance through the Texas Municipal League, an unincorporated association of
political subdivisions of the State of Texas. This policy encompasses general liability, incidental, medical
malpractice, automobile liability, law enforcement liability, errors and omissions liability, property,
automobile vehicle liability, and damages with limits of liability for each occurrence. The City has not had
any significant reduction in insurance coverage, and the amounts of insurance settlements have not exceeded
insurance coverage for any of the last three years. The participation of the City in the TML-IRP is limited to
payment of premiums. At year-end, the City did not have any significant claims pending.
49
CITY OF PEARLAND~ TEXAS
NOTES TO FINANCIAL STATEMENTS
September 30~ 2000
NOTE 11 - RISK MANAGEMENT (continued)
Workers' Compensation
The City is a member of the Texas Municipal League (TML) Workers' Compensation Intergovernmental
Risk Pool, an unincorporated association of political subdivisions of the State of Texas. The fund contracts
with a third party administrator for administration, invcstigntion, and adjustment services in the handling of
claims. Premiums are based on the estimated City payroll by risk factor and rates. The premiums are
adjusted by the City's experience modifier. All loss contingencies, including claims incurred but not
reported, if any, are recorded and accounted for by the TML Pool. The City's liability is limited to the
payment of premiums as assessed by TML.
NOTE 12 - FEDERAL TAX COMPLIANCE (ARBITRAGE) FOR LONG-TERM DEBT
In accordance with provisions o£ Section 148 of the Internal Revenue Code of 1986, as amended, (the
"Code") the City's long-term debt obligations must meet certain minimum criteria to be considered and
continue to be considered "tax exempt". This "tax exempt" status means that interest income eamed by
purchasers of the City's long-term debt instruments is not subject to federal income taxes. Related Treasury
Regulations promulgated under section 148 of the Code generally provide that the determination of whether
these obligations are tax exempt is made as of the date such obligations are issued based on a reasonable
expectations regarding the use of the proceeds of the bonds issued. Long-term debt that does not meet and
continue to meet the minimum criteria of Section 148 of the Code and the related Treasury Regulations
described above are considered "arbitrage bonds" and are not considered "tax exempt" as described above.
Rebate
Obligations will become arbitrage bonds (as described above) if certain arbitrage profits are not paid to the
federal government as rebate under section 148(f) of the Code. The City's obligations to calculate and make
rebate payments (if any) will continue as long as there' are gross proceeds allocable to outstanding debt
issues. The City has performed calculations required under section 148(0 of the Code and has no present
liability nor has the City ever been required to make rebate payments for issued debt in past years.
Unexpended Debt Issuance Proceeds (Yield Restriction Requirements)
Section 148 of the Code also provides that in order for debt not to be considered arbitrage bonds (as
described above), proceeds of such debt must be invested at a yield that is not materially higher than the
yield on the debt issued starting on the third anniversary of the issue date of such debt. Accordingly, any
unexpended proceeds of debt issued by the City that remain unexpended more than three years after such
debt was issued should be yield restricted. The yield restriction may be accomplished by making yield
reduction payments pursuant to Treas. Reg. Section 1.148-5(e). The City is currently pursuing compliance
with these yield restriction requirements and does not anticipate associated significant noncompliance
issues. The City is continuing to proceed with reasonable diligence to expend any remaining unexpended
debt issuance proceeds on qualifying projects.
50
REQUIRED SUPPLEMENTARY INFORMATION
51
CITY OF PEARLAND~ TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
(Unaudited)
September 30~ 2000
PENSION DATA - TEXAS MUNICIPAL RETIREMENT SYSTEM
The City's annual covered payroll and annual pension cost are actuarially valued on a calendar year basis.
Because the City makes all of the annually required contributions, no net pension obligation exists. The
information presented below was determined as part of the actuarial valuation, as of December 31, for each
period presented.
Schedule of Funding Progress
UAAL
Actuarial Actuarial As A
Actuarial Value of Accrued Unfunded Annual Percentage
Valuation Plan Liability Percentage AAL Covered of Covered
Date Assets (AAL) Funded (UAAL) Payroll Payroll
12/31/96 $ 7,543,433 $ 8,901,254 84.7% $ 1,357,821 $ 5,656,996 24.0%
12/31/97 8,759,905 11,129,222 78.7% 2,369,317 6,820,450 34.7%
12/31/98 9,615,238 12,280,029 78.3% 2,664,791 6,787,171 39.3%
12/31/99 10,976,420 14,117,504 77.8% 3,141,084 7,189,179 43.7%
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS AND SCHEDUI,F,~
(this page intentionally left blank)
GOVERNMENTAL FUND TYPF,~
55
(this page intentionally left blank)
GENERAL FUND
The General Fund is used to account for all financial transactions not
properly includable in other funds.
57
CITY OF PEARLAND. TEXAS
Exhibit A-1
GENERAL FUND
COMPARATIVE BALANCE SHEET ~-
September 30, 2000 and 1999
2000 1999
Assets
Assets
Cash and cash equivalents $ 6,503,460 $ 5,624,286
Receivables:
Property taxes 292,363 233,139
Accounts 443,563 256,450
Less: Allowance for estimated uneollectibles (63,008)
Accrued interest 31,943 14,782
Due from other funds 63,008
Inventories 51,678 60,000
Total Assets $ 7,323,007 $ 6,188,657
Li~bl~i~ies and Fund Balance
Liabilities
Accounts payable $ 797,699 $ 1,061,203
Accrued liabilities 253,535 239,816
Due to other funds 610,015
Accrued Compensated Absences 164,186 I97,007
Deferred revenue 292,363 233,139
Total Liabilities 2,117,798 1,731,165
Fund Balance
Reserved for encumbrances 294,544 155,481
Unreserved:
Undesignated 4,910,665 4,302,011
Total Fund Balance 5,205,209 4,457,492
Total Liabilities and Fund Balance $ 7,323,007 $ 6,188,657
CITY OF PEARLAND. TEXA,~
Exhibit A-2
STATEMENT OF REVENUES. EXPENDITURES. AND
CHANGES 1N FUND BALANCE - BUDGET AND ACTUAl,
Year Ended Sentember 30~ 2000
with comnarative actual amounts for the ,rear Ended Sentember 30, 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Property taxes and penalties $ 5,907,278 $ 5,876,495 $ (30,783) $ 5,260,551
Other taxes 3,863,000 3,697,523 (165,477) 3,426,576
Licenses and permits 934,700 1,469,799 535,099 955,819
Fines and forfeitures 716,500 731,959 15,459 675,691
Fnmchise fees 2,050,000 2,022,789 (27,211) 1,943,545
Charges for services 3,164,650 3,061,545 (103,105) 2,960,214
Intergovernmental revenues 359,200 15,000 (344,200) 489,860
Other revenues 553,000 827,950 274,950 655,582
Total Revenues 17,548,328 17,703,060 154,732 16,367,838
Exnenditures
Current:
General government 3,806,491 3,580,693 225,798 3,685,523
Public safety 6,347,009 5,944,516 402,493 5,695,956
Public works 5,862,888 5,635,397 227,491 5,137,708
Community services 1,806,122 1,762,770 43,352 1,580,624
Total Expenditures 17,822,510 16,923,376 899,134 16,099,811
Revenues Over (Under)
Expenditures (274, t 82) 779,684 1,053,866 268,027
Other Finanein~ Sources (Usesl
Operating transfers in 781,000 781,000 1,000,000
Operating Transfera (out) (800,081) (922,967) (122,886) (389,384)
Operating transfer in from component unit 110,000 110,000 110,000
Total Other Financing Sources (Uses) 90,919 (31,967) (122,886) 720,616
Revenues and Other
Financing Sources Over
(Under) Expenditures (183,263) 747,717 930,980 988,643
Fund Balance - Beginning 4,457,492 4,457,492 3,468,849
Fund Balance-Ending $ 4,274,229 $ 5,205,209 $ 930,980 $ 4,457,492
59
Exhibit A-3
SCHEDULE OF REVENUES. BIN)GET AND ACTUAl,
Page I of 4
with comparative actual ammmts for the Year Ended September 30. 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Pronertv Taxes and penalties
Property taxes - current $ 5,764,278 $ 5,626,664 $ (137,614) $ 5,059,928
Property taxes - delinquent 70,000 t 19,461 49,461 96,094
Penalties and interest 50,000 58,231 8,231 79,217
Attorney fees 20,000 22,371 2,371 23,586
Mis¢, Tax Revenue 3,000 49,768 46,768 1,726
5,907,278 5,876,495 (30,783) 5,260,551
Other Taxes
City retail sales tax 3,851,000 3,684,676 (166,324) 3,415,183
State beverage tax 12,000 12,847 847 l 1,393
3,863,000 3,697,523 (165,477) 3,426,576
Licenses and Permit~
Building permits 525,000 686,073 161,073 472,674
Electrical Permits 60,000 73,701 13,701 75,221
Plumbing & gas permits 65,000 94,819 29,819 83,857
Platting Fees 45,000 50,396 5,396 52,051
Mechanical Permits 50,000 74,316 24,316 59,592
Beer Permits 3,000 4,310 1,310 4,167
Moving Permits 10,000 8,100 ( 1,900) 10,900
Garage Sale Permits 20,000 18,937 ( 1,063) 17,538
Electrical licenses 20,000 14,635 (5,365) 14,741
Animal licenses 6,000 9,324 3,324 6,409
Peddlers & Solicitors 500 1,900 1,400 525
Health Certificate Fees 18,997 18,997 355
Wrecker Permits 5,000 4,900 (100) 3,900
Culvert Permits 3,000 2,338 (662) 3,662
Building Plan Check Fee 15,000 347,538 332,538 100,977
Occupancy Permits 2,500 2,225 (275) 3,192
Plan & Zone Board of Adj. 62,500 21,079 (41,421) 11,050
Demolition permits 200 250 50 95
Kermel licenses 50 50 100
Bldg. Site Work Permit 21,862 21,862 712
Alarm permits 2,500 2,788 288 2,723
Reinspec. Feeflnspection 4,500 800 0,700) 2,447
Sign permits 4,000 4,253 253 3,821
Health 31,000 6,208 (24,792) 25,110
934,700 1,469,799 535,099 955,819
¸60
CITY OF PEARLAND. TEXAS
Exhibit A-3
SCHEDULE OF REVENU~q - BUDGET AND ACTUAIi
Page 2 of 4
Year Ended September 30. 2000
with comuarative actual amounts for the Year Ended September 30,
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Fines and Forfeitures
Child Safety - Harris Co. $ 1,500 $ 1,849 $ 349 $ 1,782
Mun. Court Bldg. Security 15,000 (26,832) (41,832) 14,723
Fines 700,000 756,942 56,942 659,186
716,500 731,959 15,459 675,691
Franchise
Gas 85,000 71,604 (13,396) 78,512
Electric utility 1,175,000 1,163,224 (11,776) 1,133,646
Telephone Company 300,000 315,192 15,192 263,146
Cable television 125,000 124,814 (186) 114,882
Sanitation 365,000 347,955 (17,045) 353,359
2,050,000 2,022,789 (27,211) 1,943,545
Charees for Services
False Alarm Fee 1,000 25 (975)
Clean Pearland Bldg. Rent 2,400 1,600 (800) 2,200
Land Rental 4,000
Basketball Programs 8,000 8,365 365 9,585
Trash Revenue 2,300,000 2,156,943 (143,057) 2,127,315
Sanitation Billing Fee 135,000 122,763 (12,237) 126,561
MUD/EMS/Fire Collections 55,000 53,470 (1,530) 51,800
Animal Shelter 18,000 18,279 279 18,427
Disposal of Animals 2,000 3,940 1,940 3,800
Police Programs 97 97 399
Fingerprint Fees 750 535 (215) 690
Tennis Programs 2,000 6,992 4,992 5,936
Rets'cation Programs 80,000 94,252 14,252 103,375
Learn to Swim Programs 27,500 26,065 ( 1,435! 19,801
Community Building Rental 37,500 21,213 (16,287) 29,978
Senior Citizens Programs 3,000 4,040 1,040 2,707
Swimming Pool Fees 25,000 18,234 (6,766) 15,365
Pool Rental 3,500 2,259 (1,241) 3,080
Pavilion Rental 3,500 190 (3,310) 1,270
Ambulance Service Fee 375,000 377,377 2,377 302,180
Rental Gazebo & Pavilion 5,000 4,590 (410) 2,795
Soccer Program 27,500 48,004 20,504 38,795
61
Exhibit A-3
SCHEDULE OF REVENUES - BIJDGET AND ACTI,I6],
Page 3 of 4
Year Ended Sentemb~r 90, 2000
with comnarative actual amounts for the Year ~nd~l September 30. 11990
2000
Variance
Favorable 1999
Budget Actual . (Unfavorable) Actual
Char~as for Services. cont.
Softball Program $ 50,000 $ 76,449 $ 26,449 $ 82,861
Barbecue Shelter Rental 3,000 1,760 (1,240) 1,370
Fourth of July 1,007
Winter Feat 12,433 12,433 2,390
Dog Trot 1,670 1,670 2, 527
3,164,650 3,061,545 (103,105) 2,960,214
Intergovernmental Revennes
Grant - PD Radar Trailer $ $ $ $ 13,010
Grant - Police Department 300,000 (300,000) 368,998
Grant - Gal. Co. Task Force 43,500 (43,500) 50,776
Grant - Forestry Program 15,000 15,000 6,643
Emergency Mgn~. As.st Grant 15,700 (15,700)
Grant - Park 25,496
Grant - E.M.S. 17,817
Solid Waste Enforcer 7,120
359,200 15,000 (344,200) 489,860
Other Revenues
City Brochure 3,500 4,331 831 4,680
Report Copies - Police Dept 3,000 4,896 1,896 4,945
Bids & Specs 1,500 (1,500) 1,670
Cash Short/Over (181) (181) 11
Donations- Concert/Band 8,750 8,750 4,920
Donations Planning 500 500
Donations - Animal Shelter 289
Donation - Park (5,179) (5,179) 2,322
Donation - Hyde Park 5,000
Reimbursements - Ivfisc. 4,484
Reimb~ts - Phone & Fax 3,023 3,023
Reimbursement - Worker Comp 14,315 14,3 t 5 2,519
Reimbursement - P.I.S.D. 154,000 173,721 19,721 162,479
L.E.O.S.E. Training Fire 650
Plat Copies 4,500 1,548 (2,952) 5,372
L.E.O.S.E. Training P.D. 4,829
CITY OF PEARLAND. TEXAS
Exhibit A-3
SCHEDULE OF REVENUES - BUDGET AND ACTUAl,
Page 4 of 4
Y* r n m
with eomnarative actual amounts for the Year Ended Seotember 30. 1999
2000
Variance
Favorable ~999
Budget Actual (Unfavorable Actual
Other Revenues. cont.
Reproduction/Xerox Copies $ t,500 $ 3,285 $ 1,785 $ 1,851
Eeon Develop Sponsorship 580
Reimbursement ~ Insurance 983 983 35,865
Texpool lnterest 248,195 248,195 166,900
Payroll Interest 1,001 1,001 394
N.O.W. Account Interest 23,934 23,934 5,033
Interest Income 290,000 126,175 ( 163,825) 94,104
Credit Card Interest 2,830 2,830 364
Miscellaneous 16,000 73,028 57,028 28,556
Auction 3,955 3,955 -
Street Light Charges 30,000 86,408 56,408 48,975
N.S.F. Fees 1,000 1,375 375 1,100
Sand/Topsoil 40,000 43,416 3,416 61,136
Discount Taken 55 55 55
Pool/Park Vending Machine 1,500 1,331 (169) 1,061
Comm. Center Vending Machine 1,500 2,010 510 1,273
City Hall Vending Machine 202 202 109
Concession Stand 5,000 4,043 (957) 4,056
553,000 827,950 274,950 655,582
Total Revenues $ 17,548,328 $ t7,703,060 $ 154,732 $ 16,367,838
63
CITY OF PEARLAND. TEXA.~
Exhibit A-4
SCHED1JI.E OF EXPENDITURES - BUDGET AND ACTUAl,
Page I of 6
with comparative aciual amounts for the Year Ended Sentember 30. 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
General Government
City Council
Personnel $ 20,023 $ 22,249 $ (2,226) $ 18,593
Commodities 2,000 1,114 886 823
Contractual services 45,600 27,313 18,287 30,578
Other services 5,000 5,000
Capital outlay 123
72,623 50,676 21,947 50,117
City Manager
Personnel 463,368 454,104 9,264 271,611
Commodities 4,500 7,248 (2,748) 2,455
Contractual services 6,180 3,700 2,480 22,622
Other services 35,840 27,866 7,974 160
Capital outlay 5,528 (5,528) 17,308
509,888 498,446 I 1,442 314,156
City Secretary
Personnel 83,122 85,388 (2,266) 75,170
Commodities 4,000 3,623 377 3,222
Contractual services 1,750 1,300 450 31,818
Other services 42,156 26,090 16,066 9,193
Capital outlay 2,242
131,028 116,401 14,627 121,645
Finance
Personnel 429,085 424,197 4,888 391,883
Commodities I 1,250 11,862 (612) 12,006
Contractual services 2,700 5,305 (2,605) 33,498
Other services 37,975 28,342 9,633
Capital outlay 21,186
481,010 469,706 11,304 458,573
Tax
Contractual services 135,000 133,231 1,769 122,788
135,000 133,231 1,769 122,788
Human Resources
Personnel 279,910 270,293 9,617 263,542
Commodities 14,688 7,722 6,966 9,076
Contractual services 2,200 1,901 299 42,661
Other services 42,840 41,896 944
Capital outlay 1,612 11,612) 6,729
339,638 323,424 16,214 322,008
64
CITY OF P ....
Exhibit A-4
SCHEDULE OF EXPENDITI;~ES. BUDGET AND ACTUAl,
Page 2 of 6
Year Ended Sentember 30. 2000
with comoarafive actual amounts for the Year Ended Sentember 30. 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
General Government
Legal
Personnel $ 171,566 $ 172,015 $ (449) $ 139,361
Commodities 7,025 4,345 2,680 1,796
Contractual services 1,000 247 753 159,083
Other services 69,570 87,777 (18,207) 80
Capital outlay 3,298
249,161 264,384 (15,223) 303,618
Municipal Court
Personnel 204,092 194,713 9,379 155,474
Commodities 3,545 6,591 (3,046) 2,851
Contractual services 5,850 1,471 4,379 14,910
Other services 16,210 12,917 3,293 660
Capital outlay 2,000 2,537 (537) 7366
231,697 218,229 13,468 181,361
Custodial Services
Personnel 144,920 121,901 23,019 113,288
Commodities 27,248 25,702 1,546 24,31 l
Contractual services 2,880 1,887 993 1,75
Other services 1,560 729 831
Capital outlay 5,975
176,608 150,219 26,389 145,325
City Hall
Personnel 12,485
Commodities 19,631 17383 2,148 48,950
Contractual services 114,194 108,160 6,034 233,869
Other services 230,641 228,589 2,052 5,633
Capital outlay 9,565
364,466 354,232 10,234 310,502
Public Affairs/Granta
Personnel 186,828 130,342 56,486 220,004
Commodities 75,521 48,310 27,211 61,660
Contractual services 36,448
Other services 48,095 33,004 15,091
Capital outlay 5,317 (5,317) 16,431
310,444 216,973 93,471 334,543
65
Exhibit A-4
GENERAl. FUND
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUal ~
Page 3 of 6
Year Ended Sentember 30. 2000
with comnarative actual amounts for the Year Ended Seotember 30. 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
General Government (coat3
Other
Personnel $ $ $ $ 12,500
Contractual services 697,950 720,254 (22,304) 636,303
Other services 106,978 64,518 42,460 372,084
804,928 784,772 20,156 1,020,887
Total General Government 3,806,491 3,580,693 225,798 3,685,523
Public Safety
Police
Personnel 4,270,094 3,814,646 455,448 3,660,767
Commodities 86,518 74,655 11,863 80,263
Contractual services 257,384 331,805 (74,421 ) 564,930
Other services 254,725 214,088 40,637 8,092
Capital outlay 171,815 173,930 (2,115) 191,103
5,040,536 4,609,124 431,412 4,505,155
Fire
Personnel
Commodities 38,907 37,442 1,465 24,990
Contractual services 41,847 44,664 (2,817) 54,065
Other services 42,775 39,618 3,157 1,075
Capital outlay 56,257 55,980 277 55,464
179,786 177,704 2,082 135,594
Fire Marshall
Personnel 105,368 94,274 11,094 95,390
Commodities 9,700 9,670 30 9,959
Contractual services 5,500 10,591 (5,091) 17,476
Other services 33,850 27,143 6,707
Capital outlay 12,332
154,418 141,678 12,740 135,157
Animal Shelter
Personnel 149,136 148,713 423 137,523
Commodities 6,911 7,224 (313) 6,463
Contxactual services 17,780 23,313 (5,533) 24,751
Other services 17,630 15,305 2,325 448
Capital outlay 1,350 2,254 (904) 22,053
192,807 196,809 (4,002) 191,238
66 ~_
CITY OF PFARLAND. TEX^S
Exhibit A-4
SCHEDULE OF EXPENDITURES. BUDGET AND ACTUAIi
Page 4 of 6
with commlrafive actual amounts for the Vear Ended Sentember 30. 199~
2OOO
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Public Safety fcnnt3
Emergency Medical Services
Personnel $ 388,777 $ 463,834 $ (75,057) $ 533,408
Commodities 89,372 85,214 4,158 68,645
Contractual services 82,387 78,305 4,082 110,182
Other services 105,007 74,402 30,605 1,310
Capital outlay 113,919 117,446 (3,527) 15,267
779,462 819,201 (39,739) 728,812
Total Public Safety 6,347,009 5,944,516 402,493 5,695,956
Public Works
Administration
Personnel 114,532 116,488 (1,956) 109,061
Commodities 7,850 7,712 138 6,751
Contractual services 4,550 5,328 (778) 11,479
Other services 5,250 4,402 848
Capital outlay 3,917
132,182 133,930 (1,748) 131,208
Engineering
Pemonnel 510,045 494,577 15,468 426,657
Commodities 6,081 5,961 120 4,743
Contractual services 9,620 12,754 (3,134) 19,298
Other services 281,995 182,423 99,572
Capital outlay 28,500 t6,720 11,780 22,946
836,241 712,435 123,806 473,644
Code Enforcement
Personnel 324,303 318,106 6,197 407,189
Commodities 33,020 17,427 15,593 7,343
Contractual services 11,525 14,767 (3,242) 42,145
Other services 39,341 54,221 (14,880) 160
Capital outlay 13,981
408,189 404,521 3,668 470,818
Community Services
Commodities 10,000 10,000 5,400
10,000 10,000 5,400
67
Exhibit A-4
GENERAL FUND
SCHEDULE OF EXPEND1TORES- BUDGET AND ACTUAl,
Page 5 of 6
Year Ended Sentember 30. ~000
xvith comnarafive actual amounts for the Year Ended Sentember 30. 1999
200O
Variance
Favorable 1999
Budget Actual Unfavorable) Actual
Public Works (cont.)
Fleet Maintenance
Personnel $ 209,670 $ 203,465 $ 6,205 $ 201,365
Commodities 5,330 4,783 547 4,684
Contractual services 6,320 7,035 (715) 6,542
Other services 3,660 1,128 2,532
Capital outlay 2,136
224,980 216,411 8,569 214,727
Service Center
Commodities 17,119 21,949 (4,830) 18,692
Contractual services 48,340 41,691 6.649 71,864
Other services 55,250 58,869 (3,619)
Capital outlay 4,711
120,709 122,509 (1,800) 95,267
Street and Drainage
Personnel 472,344 428,719 43,625 370,715
Commodities 253.455 251,066 2,389 203,012
Contractual services 590,500 584,269 6.231 621,046
Other services 355,962 378,453 (22,491) 80
Capital outlay 92,000 90,360 1,640 65,720
1,764,261 1,732.867 31,394 1,260,573
Sanitation
Contractual ~ervices 2,366,326 2,302,724 63,602 2,486,071
2,366,326 2,302,724 63,602 2,486,071
To~al Public Works 5,862,888 5,635,397 227,491 5,137,708
CITY OF PEARLAND. TEXAS
Exhibit A-4
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
Page 6 of 6
Year Ended September 30. 2000
with comnarafive actual amounts for the Year Ended September 30. 1999
2000
Variance
Favorable 1999
B~dget Actual (Unfavorable) Actual
Community Services
Library
Personnel $ $ $ $
Commodities 2,100 2,328 (228) 1,921
Contractual services 2,600 2,922 (322) 18,436
Other services 35,500 54,601 (19,101)
Capital outlay 6,360 5,264 1,096 1,407
46,560 65,115 (18,555) 21,764
Parks & Recreation - Administration
Personnel 633,097 540,939 92,158 469,239
Commodities 33,685 25,991 7,694 26,528
Contractual services 143,842 189,864 (46,022) 237,533
Other services I 11,429 104,221 7,208 785
Capital outlay 51,039 53,608 (2,569) 90,112
973,092 9t4,623 58,469 824,197
Parks & Recreation - Recreation
Personnel 240,284 226,533 13,751 223,980
Commodities 155,538 153,188 2,350 140,650
Contractual services 5,459 6,428 (969) 55,405
Other services 59,425 57,233 2,192 720
Capital outlay 7,850 (7,850) 6,125
460,706 451,232 9,474 426,880
Parks & Recreation - Athletics & Aquatics
Personnel 133,472 109,696 23,776 118,903
Commodities 123,806 t42,871 09,065) 117,981
Contractual services 32,740 20,173 12,567 54,132
Other services 29,666 53,545 (23,879) 1,395
Capital outlay 6,080 5,515 565 15,372
325,764 331,800 (6,036) 307,783
Total Community Services 1,806,122 1,762,770 43,352 1,580,624
Total Expenditures $ 17,822,510 $ t6,923,376 $ 899,134 $ 16.099,811
69
(this page intentionally left blank)
70 ~
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for specific revenues that are legally restricted for particular
purposes. A description of the individual special revenue funds follows:
Regional Detention Fund
A fund created to account for the regional detention development.
Municipal Court
A fund created to account for municipal court fees collected.
Hotel/Motel
A fund created to account for the hotel/motel occupancy tax revenue.
Park Donations
A fund created to account for park donations.
Park & Recreation Development
A fund created to account for the development of parks.
Tree Donations
A fund created to account for tree donations.
Tree Trust
A fund created to account for tree trust donations.
Police Fund~
To account for financial resources to be used for the Police department drug
program.
Federal Police Fund
To account for expenditures related to special federal programs for the
police department.
Community Services
To account for expenditures related to community services.
Grant Fund
To account for all grant revenues and expenditures.
CITY OF PEARLAND. TEXAS
COMBINING BAI.ANCE SHEET
September 30. 2000
with comparative totals for September 30. 1999
Hotel Park &
Regional Municipal Motel Park Recreation
Detention Court Tax Donation Development
Assets
Assets
Cash and cash equivalents $ 133,513 $ $ 164,873 $ $ 122,348
Due from others 45,390 5,179
Accrued interest receivable
TotalAssets $ 133,513 $ 45,390 $ 164,873 $ 5,179 $ 122,348
Liabilities and Fund Balances
Liabiliti¢~
Accounts payable $ $ $ $ $
Due to others 1,018
Total Liabilities 1,018
Fun~ Balances
Fund Balances
Unreserved:
Designated for subsequent
years' expenditures 133,513 45,390' 164,873 4,161 122,348
Total Liabilities and Fund Balances $ 133,513 $ 45,390 $ 164,873 $ 5,179 $ 122,348
Exhibit B-I
Tree Tree Federal Community Totals
Donation Trust Police Police Services Grants 2000 1999
$ 1,312 $ 25,225 $ 36,973 $ 7,809 $ 23,715 $ 43,229 $ 558,997 $ 292,852
50,569
88 88 96
$ 1,312 $ 25,225 $ 37,061 $ 7,809 $ 23,715 $ 43,229 $ 609,654 $ 292;948
5,173 $ 5,173 $ 2,298
1,018
5,173 6,191 2,298
1,312 25,225 37,061 7,809 23,715 38,056 603,463 290,650
$ 1,312 $ 25,225 $ 37,061 $ 7,809 $ 23,715 $ 43,229 $ 609,654 $ 292,948
73
CITY OF PEARLAND.
SPECIAL REVENUE
COMBINING STATEMENT OF REVENUES, EXPENDITURES. AND
CHANGES IN FUND BAI,ANCE~
with comparative totals for the Year Ended Sentember 30.
Hotel Park &
Regional Municipal Motel Park Recreation
Detention Court Tax Donation Development
Revenues
Other Taxes
Hotel/Motel Tax $ $ $ 47,937 $ $
Total Other Taxes 47,937
Intergovernmental Revenue:
Grants
Total Intergovernmental Revenue
Other Revenue:
Municipal Court 45,390
Regional Detention 32,736
Park/Tree 7,821 121,450
Police Drag Revenue
Community Services Revenue
Investment earnings 4,118 5,194 14 898
Total Other Revenue 36,854 45,390 5,194 7,835 122,348
Total Revenues 36,854 45,390 53,131 7,835 122,348
General Government
Park Equipment 3,675
Community Services
Police Drag Expense
Total Expenditures 3,675
Revenues Over
Expenditures 36,854 45,390 53,131 4,160 122,348
Other Einancin~ Sources (Uses~
Transfer In/(Out)
Fund Balances - Baginning 96,659 I 11,742
Fund Balances- Ending $ 133,513 $ 45,390 $ 164,873 $ 4,160 $ 122,348
74
Exhibit B-2
Tree Tree Federal Community Totals
Donation Trust Police Police Services Grant 2000 1999
$ $ $ $ $ $ $ 47,937 $ 57,878
# 47,937 57,878
303,631 303,631 2,445
303,631 303,631 2,445
45,390
32,736 83,026
1,300 25,000 155,571
8,838 8,838 1,307
18,653 18,653 22,538
12 225 1,432 345 784 , 4,547 17,569 3,183
1,312 25,225 10,270 345 19,437 4,547 278,757 110,054
1,312 25,225 10,270 345 19,437 308,178 630,325 170,377
390,998 390,998 4,773
3,675
15,165 15,165 17,897
5,669 2,006 7,675 2,282
5,669 2,006 15,165 390,998 417,513 24,952
1,312 25,225 4,601 (1,66I) 4,272 (82,820) 212,812 145,425
100,000 100,000
32,460 9,470 19,443 20,876 290,650 145,225
$ 1,312 $ 25,225 $ 37,061 $ 7,809 $ 23,715 $ 38,056 $ 603,462 $ 290,650
75
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DEBT SERVICE FUND
The Debt Service Fund is used to account for property taxes levied for payment
of principal and interest on all general obligation and other debts of thc City.
77
CITY OF PEARIJAND. TEXAS
Exhibit C-1
COMPARATIVE BALANCE SHEET
Sentember 30. 2000 and 1999
2000 1999
Assets
Assets
Cash and cash equivalents $ 736,014 $ 208,324
Receivables:
Property taxes 186,807 156,306
Total Assets $ 922,821 $ 364,630
Liabilities and Fund Balance
Liabilities
Accounts payable $ 54,866 $
Deferred revenue 186,807 156,306
Total Liabilities 241,673 156,306
Fund Balance
Unreserved:
Designated for debt service 681,148 208,324
Total Liabilities and Fund Balance $ 922,821 $ 364,630
CITY OF PEARLAND. TEXAS
Exhibit C-2
STATEMENT OF REVENUES. EXPENDITURES. AND
CHANGES IN FUND BAIakNCE - BUDGET AND ACtUAl ~
Year Ended Sontemher 30. 2000~
with comnarafive actual balances for the Year Ended Sentemher 30. 1999
2000
Variance
Favorable 1999
Budget Actual (Unfavorable) Actual
Property Taxes and Penalties:
Property taxes - current $ 3,342,006 $ 3,395,878 $ 53,872 $ 2,932,376
3,342,006 3,395,878 53,872 2,932,376
Other revenues -
investment earn/ngs 20,000 68,780 48,780 36,899
Total Revenues 3,362,006 3,464,658 102,652 2,969,275
Exoenditures
Debt Service:
Principal retirement 1,455,000 1,605,000 (150,000) 1,440,000
Interest and fiscal charges 1,920,000 1,459,038 460,962 1,760,270
Total Expenditures 3,375,000 3,064,038 310,962 3,209,693
Revenues Over (Under)
Expenditures (12,994) 400,620 413,614 (240,418)
Other Financing Sources(uses)
Proceeds from sale
of refunding bonds 10,894,532 10,894,532
Payment to refunded
bond escrow agent (10,822,328) (10,822,328)
Transfers In/(Out) 175,000
Total Other Financing Sources (uses) 72,204 72,204 175,000
Revenues and Other Financing
Sources Over (under)
Expenditures (12,994) 472,824 485,818 (65,418)
Fund Balance- Beginning 208,324 208,324 273,742
Fund Balance - Ending $ 195,330 $ 681,148 $ 485,818 $ 208,324
79
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CAPITAL PROJECTS FUNDS
The Capital Projects Funds are used to account for all resources used for the acquisition and/or construction
of all buildings, equipment, rights of way, street and drainage improvements, and regional wastewater
facilities. The fu~.ds used are described below.
Street Assessment
A compulsory levy made against certain properties to defray all or part of the
cost of a specific capital improvement or service deemed to benefit primarily
those properties.
Street Assessment- Mel~ard Rd.
A compulsory levy m~le against certain properties to defray all or part of the
cost of a specific capital improvement or service deemed to benefit primarily
those properties.
Street Assessment-Southfork
A compulsory levy made against certain properties to defray all or part of the
cost of a specific capital improvement or service deemed to benefit primarily
those properties.
Street Assessment-Hooks Rd
A compulsory levy made against certain properties to defray all or part of the
cost of a specific capital improvement or service deemed to benefit primarily
those properties
Capital Proiect Fund
A fund created to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those
financed by proprietary funds and trust funds).
Road & Bridges
To account for financial resources to be used for roads & bridges.
Library
To account for financial resources to be used for the City's library.
Capital Improvement 1997
To account for financial resources to be used for the facilities projects,
transportation projects, drainage projects, and watershed projects.
Certificate of Obligation- 1997
To account for capital expenditures related to the issuance of certificates of
obligation in August 1997.
81
CITY OF PEARLAND. TEXAS
CAPITAL PROJECTS FUNDS , -
COMBINING BALANCE SHEET
Sentember 30. 2000
with comnarative totals for Sentember ~0, ~999
McHard Rd Southfork Hooks Rd
Street Street Street Street
Assessments Assessments Assessments Assessments
Assets
Assets
Cash and cash equivalents $ 55,767 $ 187,533 $ 122,886 $ 54,827
Assessments Receivable 15,966 171,874 54,338
Accrued interest receivable 1.469 2,357
Total Assets $ 73,202 $ 359,407 $ 125,243 $ 109.165
Liabilities and Fund Balances
Liabilities
Accounts payable $ $ $ $
Deferred Revenue 31,566
Total Liabilities 31,566
Fund Balance
Reserved for encumbrances
Fund Balance 41,636 359,407 125,243 109,165
Total Fund Balance 41,636 359,407 125,243 109.165
Total Liabilities and
Fund Balance $ 73,202 $ 359,407 $ t25,243 $ 109,165
Exhibit D-.1
Capital Certiticate Of
Capital Roads and Improvement Obligation Totals
Projects Bridges Library 1997 1997 2000 1999
$ 711,017 $ 60,714 $ 10,845 $ 570,536 $ 3,275,482 $ 5,049,607 $ 5,339,579
242,178 15,966
3,826 1,336
$ 711,017 $ 60,714 $ 10,845 $ 570,536 $ 3,275,482 $ 5,295,611 $ 5,356,881
$ 1,267 $ 600 $ $ 148,103 $ $ 149,970 $ 302,727
31,566 15,966
1,267 600 148,103 181,536 318,693
31,547 19,585 1,790~54 419,164 2,260,550 661,393
678,203 40,529 10,845 (1,367,821) 2,856,318 2,853,525 4,376,795
709,750 60,114 10,845 422,433 3,275,482 5,114,075 5,038,188
$ 711,017 $ 60,714 $ 10,845 $ 570,536 $ 3,275,482 $ 5,295,611 $ 5,356,881
83
CITY OF PEARl,AND. TEXAS
CAPITAl, PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES.
AND CHANGES IN FUND BALAN~?~
Year Ended September 30. 2000
with comparative totals for the Year Ended September 30. 1999
McHard Rd Southfork Hooks Rd
Street Street Street Street
Assessments Assessments Assessments Assessments
Revenues
Investment earnings $ 5,289 $ 1,474 $ 2,357 $ 488
Other 357,933 108,677
Total Revenues 5,289 359,407 2,357 109,165
[:xnenditures - Capital Outlay
General Government
Public Safety
Public Works
Utility Billing
Streets and transportation
Drainage 79,200
Other projects
Parks and recreation
Total Expenditures 79,200
Revenues (Under) Expenditures (73,911) 359,407 2,357 109,165
Other Financing Sources (Uses)
Transfer In from General Fund 122,886
Transfer (Out) to Other Funds
Proceeds from lease financing
Total Other Financing Sources (Uses) 122,886
Revenues and Other Financing
Resources Over (Under)
Expenditures (73,911) 359,407 125,243 109,165
Fund Balances- Beginning 115,547
Fund Balances- Ending $ 41,636 $ 359,407 $ 125,243 $ 109,165
Exhibit D-2
Capital Certificate Of
Capital Roads and Improvement Obligation Totals
Projects Bridges . Library 1997 1997 2000 1999
$ 13,093 $ 2,376 $ $ 34,092 $ 210,365 $ 269,534 $ 346,145
145,481 27,219 639,310 347,895
13,093 2,376 179,573 237,584 908,844 694,040
40,720 40,720 538,436
100,832
18,705
9,615 641,003 650,618 1,817,380
56,263 135,463 112,300
478,501 374,298 852,799 t,799,298
124,217
40,720 9,615 534,764 1 ~15,301 1,679,600 4,511,168
(27,627) (7,239) (355,19l) (777,717) (770,756) (3,817,128)
572,081 694,967 83,000
(75,000)
151,676 151,676 425,000
723,757 846,643 433,000
696,130 (7,239) (355,191) (777,717) 75,887 (3,384,128)
13,620 67,353 10,845 777,624 4,053,199 5,038,188 8,422,316
$ 709,750 $ 60,114 $ 10,845 $ 422,433 $ 3,275,482 $ 5,114,075 $ 5,038,188
85
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ACCOUNT GROUPS
87
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88
GENERAL FIXED ASSETS
This is a self-balancing group of accounts used to account for the fixed assets of the City.
89
CITY OF PEARl. AND. TEXAg
Exhibit E-I
SCHEDULE OF GENERAl, FIXED ASSETS BY SOURCE
September 30. 2000 and 199~
2000 1999
General Fixed Assets
Land $ 1,513,277 $ 1,497,777
Buildings 9,888,234 7,381,658
Construction in progress 2,339,349
Improvements 25,417,328 26,196,265
Machinery and equipment 10,176,089 9,426,575
Total General Fixed Assets $ 49,334,277 $ 44,502,275
Investments in General Fixed Assets
Financed By Capital Pro_iects Funds
General Obligation bonds and
Time warrants and certificates of obligation $ 35,061,742 $ 30,979,495
Lease Purchase agreement 425,519 395,743
Federal grants 395,576 395,576
General Fund Revenues 10,I 32,739 9,412,760
Special Revenue Fund Reserves 2,114,776 2,114,776
Special Assessments 510,286 510,286
Intergovernmental transfers 693,639 693,639
Total Investment in General Fixed Assets $ 49,334,277 $ 44,502,275
90
CITY OF PEARl,AND. TEXAS
Exhibit E-2
SCHEDULE OF CHANGES 1N GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
Year Ended September 30. 2000
Balance Balance
Oct. 1, 1999 Additions Sept. 30, 2000
Genernl Government
City Council $ 4,410 $ $ 4,410
Human Resource 25,794 1,612 27,406
City Manager 56,333 5,528 61,861
City Secretary 38,207 38,207
Finance 54,483 54,483
Legal 33,283 33,283
M unicipal Court 111,410 1,809 113,219
Custodial Services 49,7! 8 49,718
City Hall 3,672,322 230,424 3,902,746
MIS 13,169 13,169
Total General Government 4,059,129 239,373 4,298,502
Public Safety
Police 5,124,723 172,403 5,297,126
Fire 947,171 55,980 1,003,151
Anita al Shelter 419,282 1,718 421,000
Code Enforcement 287,334 287,334
Civil Service 4,433 4,433
Fire Marshall 217,783 217,783
Emergency Medical Services 984,681 117,444 1,102,125
Total Public Safety 7,985,407 347,545 8,332,952
Public Works
Public Works 1,442,973 1,442,973
Service Center l,l 16,613 15,500 1,132,113
Fleet Maintenance 77,168 77,168
Engineering 206,753 206,753
Street 21,605,883 611,442 22,217,325
Sanitation 453,653 453,653
Total Public Works 24,903,043 626,942 25,529,985
Community Services
Library 3,293,848 1,165,170 4,459,018
Parks, Recreation, Beautification 4,260,848 113,623 4,374,471
Total Community Services 7,554,696 1,278,793 8,833,489
Construction in Progress 2,339,349 2,339,349
Total $ 44,502,275 $ 4,832,002 $ 49,334,277
91
CITY OF PEARLAND. TEXAS
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
Sentember 30. 2000 ·
Total Land Buildings
General Government
City Council $ 4,410 $ $
Human Resource 27,406
City Manager 61,861
City Secretary 38,207
Finance 54,483
Legal 33,283
Municipal Court 113,219
Custodial Services 49,718
City Hall 3,902,746 50,014 2,298,570
MIS 13,169
Total General Government 4,298,502 50,014 2,298,570
Public Safety
Police 5,297,126 1,938,940
Fire 1,003,151 48,031
Animal Shelter 421,000 4,320 287,435
Code Enforcement 287,334
Civil Service 4,433
Fire Marshall 217,783 6,212
Emergency Medical Services 1,102,125 212,625
Total Public Safety 8,332,952 4,320 2,493,243
Public Works
Public Works 1,442,973 410,058
Service Center 1,132,113 15,500 571,432
Fleet Maintenance 77,168
Engineering 206,753
Street 22,217,325 198,066
Sanitation 453,653 57,236 7,010
Total Public Works 25,529,985 680,860 578,442
Communltw Service,,/
Library 4,459,018 5,000 3,464,092
Parks, Recreation, Beautification 4,374,471 773,083 1,053,887
Total Community Services 8,833,489 778,083 4,517,979
$ 46,994,928 $ 1,513,277 $ 9,888,234
Construction in Progress $ 2,339,349
Total General Fixed Assets $ 49,334,277
92
Exhibit E-3
Machinery
Improvements and Equipment
'$ $ 4,410
27,406
61,861
38,207
54,483
33,283
6,182 107,037
49,718
200,881 1,353,281
13,169
207,063 1,742,855
1,639 3,356,547
50,000 905,120
129,245
109,570 177,764
4,433
4,739 206,832
8,977 880,523
174,925 5,660,464
995,624 37,291
394,001 151,180
77,168
206,753
20,843,03i 1,176,228
387,652 1,755
22,620,308 1,650,375
886,471 103,455
1,528,561 1,018,940
2,4t5,032 1,122,395
$ 25,417,328 $ 10,176,089
93
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GENERAL LONG-TERM DEBT
This account group is a self-balancing group of accounts used to account for the City's long-term liabilities
which include general obligation bonds, certificates of obligation, capital leases, and compensated absences.
95
CITY OF PEARl AND. TE, X A ~
SCHEDUI,E OF GENERAl, I ,ONC~TERM
DEBT SERVICE REOI~IREMENTS TO MATURing{
Seotemher 30.
Street lmprovemen! Bonds,
Due During Annual Reqdiremeat~ for All Serte~ Serle~ 1992 - $2.000,000
Fiscal Year Total Total Total Principal Inter~t Due
Ending Principal and Principal Interest Due March 1,
SepL 30, lateral Due Due Due March I September I Total
20O~ $ 3,585,206 $ 1,986,526 $ 1,598,680 $ 120,000 $ 20,475 $ 140,475
2002 3,107,306 1,654,724 1,452,582 125,00O 11,738 136,738
2003 3,008,517 1,645,00O 1,363,517 130,00O 3,900 133,900
2004 3,0O3,738 1,730,000 1,273,738
2005 3,206,766 2,030,00O 1,176,766
2006 3, t 90,893 2,125,00O 1,065,893
2007 3,199,154 2,250,000 949,154
2008 3,193,329 2,360,000 833,329
2009 3,182,981 2,470,00O 712,981
2010 1,911,911 1,295,000 616,91
2011 1,920,526 1,375,0O0 545,526
2012 1,929,191 1,460,0(30 469,191
2013 1,932,500 1,545,000 387,500
2014 1,947,111 1,645,000 302,1 ! I
2015 1,946,862 1,735,000 211,862
2016 1,949,595 1,835,000 114,595
2017 638,480 590f0o 48,480
2018 636,275 620,000 16,275
Totals $ 43,49341 $ 30,351,250 $ 13,139,09I $ 375,000 $ 36,113 $ 411,113
Obligations Under IBM Obligations Under Bank O~e
Due During Capital Leases Capital Leases
Fiscal Year Principal Interest Due Principal Interest Due
Ending Due March 1, Due Due
Sept. 30, March I September I Total Annually Annually Total
2001 $ 49,037 $ 2,498 $ 51,535 $ 57,701 $ 1,500 $ 59,201
2002
2003
2004
2005
2006
20O7
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Totals $ 49,037 $ 2,498 $ 51,535 $ 57,701 ' $ 1,500 $ 59,201
96 ~
Exhibit F (1 of 2)
Refunding Bonds, Refunding Bonds,
Due During Series 1993 - $6,510,000 Series 2000 - $10,830,000
Fiscal Year Principal Interest Due . Principal Interest Due
Ending ' Due March 1~ Due March 1,
Sept. 30, March I S~ptemberl Total March I September 1 Total
2001 $ 1,030,000 $ 92,229 $ 1,122,229 $ $ 576,320 $ 576,320
2002 770,000 52,244 822,244 140,000 528,663 668,663
2003 755,000 17~59 772,459 375,000 516,432 891,432
2004 1,330,000 475,937 1,805.937
2005 1,620,000 405,875 2,025,875
2006 . 1,700,000 320,650 2,020,650
2007 1,800,000 230,700 2,030,700
2008 1,885,000 142,260 2,027,260
2009 1,980,000 48,510 2,028,510
2010
2011
2012
2013
2014
2015
2016
2017
2018
Totals $ 2,555,000 $ i61,932 $ 2,716,932 $ 10,830,000 $ 3,245,347 $ 14,075,347
Obligations Under Bank One Obligations Under Bank One
Due During Capital Leases Capital Leases
Fiscal Year Principal Interest Due Principal Interest Due
Ending Due Due Due March 1,
Sept. 30, Annually Annually Total March I September 1 Total
2001 $ 144,679 $ 8,043 $ 152,722 $ 55,109 $ 2,159 $ 57,268
2002 74,724 1,636 76,360
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
Totals $ 219,403 $ 9,679 $ 229,082 $ 55,109 ' $ 2,159 $ 57,268
Exhibit F (2 of 2)
SCI~EDI}I ,E OF GENERAL l X)NC,-TEI~
DEBT SERVICE REOUIREMENTS TO MATURIT~
2016
2018
2001 $ 100,000 $ 337,135 $ 437,135 $ 100,(~00 $ 296,046 $ 396,046
2008 120,000 285,385 405,385 100,000 246,346 346,346
98 C~
ENTERPRISE FUND DEBT
2008 205,000 332.465 537,465
Exhibit G
Water & Sewer System Revenue Bonds Certificatc$ of Obligations
101
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102 ,
COMPONENT UNITS
103
CITY OF PEARLAND, TEXAS
Exhibit H-1
COMBINING BALANCE SHEET
SePtember 30. 2000 am] ]999
Totals
PEDC TIRZ 2000 1999
Assets and Other Debits
Cash and cash equivalents $ 3,474,126 $ 68,891 3,543,017 2,794,915
Interest receivable 16,488 16,488 13,274
Amount to be provided for
~ .
retirement of debt 4,752,620 4,752,620 4,842,619
Fixed assets 55,403 55,403 31,858
Total Assets $ 8,298,637 $ 68,891 $ 8,367,528 $ 7,682,666
Liabilities and Eq0itv
Liabilities
Accounts payable $ 13,286 $ 21,441 $ 34,727 $ 6,624
Accrued liabilities 5,398
Accrued compensated absences 7,620 7,620 7,619
Current portion - revenue bonds 95,000 95,000 90,000
General obligation bonds 4,650,000 4,650,000 4,745,000
Total Liabilities 4,765,906 21,441 4,787,347 4,854,641
Investment in General Fixed Assets 55,403 55,403 31,858
Undesignated 3,477,328 47,450 3,524,778 2,796,167
Total Equity and Other Credits 3,532,731 47,450 3,580,181 2,828,025
Total Liabilities, Equity,
and Other Credits $ 8,298,637 $ 68,891 $ 8,367,528 $ 7,682,666
104
CITY OF PEARLAND. TEXAS
Exhibit H-2
COMPONENT UNH~
COMBINING STATEMENT OF REVENUES. EXPENDITURE& AND
CHANGES 1N FUND BALANf~,
Year Ended Sentember 30. 2000
with comnarative totals for the Year Ended September 30. 1999
Totals
PEDC TIRZ 2000 1999
Sales Tax Revenue $ 1,841,918 $ $ 1,841,918 $ 1,707,193
Other Revenue 415,199 185,266 600,465 164,706
Total Revenues 2,257,117 185,266 2,442,383 1,871,899
Exnenditures
Cur~nt:
Personnel $ I78,839 $ $ 178,839 $ 211,338
Commodities 4,671 4,671 1,415
Contractual services 205,981 205,981 242,604
Other services 3,162 I39,316 142,478 160
Capital Outlay 701,280 701,280 2,478,602
Debt Sen'vice:
Principal 90,000 90,000 85,000
Interest and fiscal charges 282,023 282,023 288,118
Total Expenditures 1,465,956 139,316 1,605,272 3,307~237
Revenues Over (Under) Expenditures 791,161 45,950 837,1 t 1 (1,435,338)
Other Finnncin~ Sources (Uses'~
Operating transfer (out) to
primary government (General Fund) (110,000) (110,000) (110,000)
Revenues and Other Financing Sources
Over (Under Expenditures and
Other Financing (Uses) 681,161 45,950 727,111 (1,545,338)
Fund Balances - Beginning 2,796,167 1.500 2,797,667 4,341,505
Fund Balances- Ending $ 3,477,328 $ 47,450 $ 3,524,778 $ 2,796,167
105
CITY OF PEARLAND, TEXAS
Exhibit H-3
PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC] "-
COMBINING BALANCE SHEET
Seotemher 30. 2000 and 1999
EDC PEDC Totals
PEDC Fixed Long Term
Fund Overpass Assets Debt 2000 1999
Assets
Cash and cash equivalents $ 3,263,362 $ 210,764 $ $ 3,474,126 2,794,915
Interest ruceivable 16,488 16,488 13,274
Amount to be provided for
retirement of debt 4,752,620 4,752,620 4,842,619
Fixed assets 55,403 55,403 31,858
TotalAssets $ 3,279,850 $ 210,764 $ 55,403 $ 4,752,620 $ 8,298,637 $ 7,682,666
Liabilities and Equity_
Accounts payable $ 13,286 $ $ $ $ 13,286 $ 6,624
Accrued liabilities 5,398
Accrued compensated absences 7,620 7,620 7,619
Current portion ~ revenue bonds 95,000 95,000 90,000
General obligation bonds 4,650,000 4,650,000 4,745,000
Total Liabilities 13,286 4,752,620 4,765,906 4,854,641
Eauitv and Other Credits
Investment in General
Fixed Assets 55,403 55,403 31,858
Undesignated 3,266,564 210,764 3,477,328 2,796,167
3,266,564 210,764 55,403 3,532,731 2,828,025
Total Liabilities, Equity and
Other Credits $ 3,279,850 $ 210,764 $ 55,403 $ 4,752,620 $ 8,298,637 $ 7,682,666
106 ~
CITY OF PEARLAND. TEXAS
Exhibit H-4
PEARLAND ECONOMIC DEVELOPMENT CORPORATION (PEDC)
COMBINING STATEMENT OF REVENUES. EXPENDITURES.
Year Ended Sentember 30. 2000
with comnarative totals for the Year Ended Seotember 30. ! 999
PEDC Totals
Fund Overpass 2000 1999
Revenues
Sales Tax Revenue $ 1,841,918 $ $ 1,841,918 $ 1,707,193
Other Revenue 156,206 258,993 415,199 164,706
Total Revenues 1,998,124 258,993 2,257,117 1,871,899
Exnenditures
Economic Development
Cun'ent:
Personnel 178,839 178,839 211,338
Commodities 4,671 4,671 1,415
Contractual services 205,981 205,981 242,604
Other services 3,162 3,162 160
Capital Outlay 87,901 613,379 701,280 2,478,602
Debt Service:
Principal 90,000 90,000 85,000
Interest and fiscal charges 282,023 282,023 288,118
Total Expenditures 852,577 613,379 1,465,956 3,307,237
Revenues Over (under) Expenditures 1,145,547 (354,386) 791,161 (1,435,338)
Other Finaneine Sources (Uses'~
Operating transfer (ou0 to
primary government (General Fund) (110,000) (110,000) (l 10,000)
Revenues and Other Financing Sources
Over (Under) Expenditures and
Other Financing (Uses) 1,035,547 (354,386) 681,161 (t,545,338)
Fund Balances - Beginning 2,231,017 565,150 2,796,167 4,341,505
Fund Balances- Ending $ 3,266,564 $ 210,764 $ 3,477,328 $ 2,796,167
107
CITY OF PEARLAND, TEX~,$
Exhibit H-5
TIRZ #1 AND TIRZ #7,
COMBINING BAI,ANCE SHEI~T
September 30. 2000 and 1999
TI'RZ gl TIRZ #2 Total
Assets and Other Debits
Assets
Cash and cash equivalents $ 68,536 $ 355 $ 68,891
Total Assets .. $ 68,536 $ 355 $ 68,891
Accounts payable $ $ 21,441 $ 21,441
Total Liabilities 21,441 21,441
Undesignated 68,536 (21,086). 47,450
Total Liabilities and Equity $ 68,536 $ 355 $ 68,891
CITY OF PEARLAND. TEXAS
Exhibit H-6
TIRZ #1 AND TIRZ #2
COMBINING STATEMENT OF REVENUES. EXPENDITURES. AND
CHANGES IN FUND BALANCE
Year Ended Sentember 30, 2000
TIRZ #1 TIRZ #2 Totals
Revenues
Other Revenue $ 67,036 $ 118,230 $ 185,266
Total Revenues 67,036 118,230 185,266
Exuenditures
Current:
Other services 139,316 139,316
Total Expenditures 139,316 139,316
Revenues Over Expenditures 67,036 (21,086) 45,950
Fund Balances - Beginning 1,500 1,500
Fund Balances (Deficit) - Ending $ 68,536 $ (21,086) $ 47,450
109
CITY OF PEARLAND. TEXAS
Exhibit H-7
SCHEDULE OF COMPONENT UNIT FUNDS
DEBT SERVICE REOUIREMENTS TO MATURITY
Sales Tax Revenue Bonds
Due During Series 1997 - $5,000,000
Fiscal Year Principal Interest Due
Ending Due March 1,
Sept. 30, Sept. 1 September 1 Total
2001 $ 95,000 $ 274 410 $ 369,410
2002 100,000 267 570 367,570
2003 185,000 260 370 445,370
2004 200,000 247 050 447,050
2005 210,000 232 650 442,650
2006 220,000 217 530 437,530
2007 235 000 201 690 436 ~690
2008 300 000 187 590 487.590
2009 320 000 o I71,990 491 990
2010 340 000 155,030 495 030
2011 360 000 136,670 496 670
2012 385 000 117,050 502 050
2013 410 000 95,875 505 875
2014 435,000 73,325 508 325
2015 460,000 49,400 509 400
2016 490,000 25,480 515,480
Totals $ 4,745,000 $ 2,713,680 $ 7,458,680
1!0
UNAUDITED STATISTICAL SECTION
111
CITY OF PEARLAND, TEXAS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
Last Ten Fiscal Years
Fiscal Year
Ended General Public Public Community
Sept. 30, Government Safety Works Services
1991 $ 1,286,010 $ 2,262,597 $ 1,146,406 $ 378,645
1992 1,591,133 2,467,920 2,293,754 464,376
1993 1,709,983 2,890,899 3,514,225 501,733
1994 1,831,204 3,100,156 3,312,929 777,059
1995 1,998,228 3,445,100 3,798,607 881,211
1996 2,316,013 3,865,449 4,112,939 1,185,426
1997 2,357,621 4,238,647 4,334,123 1,137,045
1998 2,834,021 5,026,554 4,925,693 1,543,440
1999 3,685,523 5,695,956 5,137,708 1,580,624
2000 3,580,693 5,944,516 5,635,397 1,762,770
(I) - Includes general governmental expenditures of the General Fund and Debt
Service Fund.
112
Table I
Debt
Service Total
$ 2,360,017 $ 7,433,675
2,361,609 9,178,792
2,547,354 11,164,194
2,254,696 11,276,044
2,044,453 12,167,599
2,430,097 13,909,924
2,451,033 14,518,469
3,273,010 17,602,718
3,209,693 19,309,504
3,064,038 19,987,414
113
CITY OF PEAR. LAND, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
Last Ten Fiscal Years
Fiscal Year Property
Ended Taxes and Other Licenses Fines and
Sept. 30, Penalties Taxes (2) and Permits Forfeitures
1991 $ 6,782,700 $ 1,548,190 $ 277,260 $ 257,781
1992 7,722,736 1,704,160 296,725 315,085
1993 8,094,140 1,733,901 418,577 404,857
1994 8,261,631 1,905,741 432,626 415,511
1995 8,568,140 2,166,219 339,309 415,378
1996 9,292,922 2,298,546 514,081 459,884
1997 10,472,362 2,589,918 524,197 529,152
1998 7,108,800 2,973,058 615,808 576,856
1999 8, I92,927 3,426,576 955,819 675,691
2000 9,272,373 3,697,523 1,469,799 731,959
(1) - Includes general governmental revenues of the General Fund and Debt
Service Fund.
(2) - Primarily City Sales taxes.
114
Table 2
Charges Inter-
For Franchise governmental Other
Services Fees Revenues Revenues Total
$ $ 753,493 $ $ 191,434 $ 9,810,858
I, 115,488 1,077,130 37 t ,742 12,603,066
1,089,194 1,050,451 311,959 13,103,079
1,182,274 1,109,374 107,987 463,971 13,879,115
1,425,741 1,026,007 78,882 809,141 14,828,817
1,553,765 1,016,069 246,414 523,188 15,904,869
1,648,617 1,498,788 197,764 722,189 18,182,987
2,508,087 1,703,715 345,674 678,232 16,510,230
2,960,214 1,943,545 489,860 692,481 19,337,113
3,061,545 2,022,789 15,000 896,730 21,167,718
115
CITY OF PEARLAND, TEXAS ' '
PROPERTY TAX LEVIES AND COLLECTIONS (1)
Last Ten Fiscal Years
Fiscal Year Percent of Delinquent
Ended Total Current Tax Current Taxes Tax
Sept. 30, Tax Levy (2) Collections Collected Collections
1991 $ 4,604,996 $ 4,524,053 98.24 $ 87,551
1992 4,943,097 4,832,158 97.76 60,002
1993 5,218,769 5,141,839 98.53 96,234
1994 5,224,050 5,020,687 96.11 1,152
1995 5,316,625 5,229,939 98.37 63,318
1996 5,869,525 5,790,544 98.65 62,365
1997 6,343,113 6,235,954 98.31 70,983
1998 7,062,826 6,957,153 98.50 74,969
1999 8,147,473 7,992,304 98.10 96,094
2000 9,174,224 9,022,542 98.35 119,461
(l) - A property tax system was initiated in the 1970-71 fiscal year. Taxes are
levied in August (or as soon thereafter as practicable) and become
delinquent on February 1 of each year. The City, in accordance with Section
33.07 of the Texas Property Tax Law Annotated 1982, imposes an additional
penalty of 15% beginning July I to defray cost of collection.
(2) - The total tax levy has been adjusted to reflect additions to and deletions
from the tax roll for prior years.
116
~..
Table 3
Percent of Percent of
Total T~x Outstanding Delinquent
Total Tax Collections to Delinquent Taxes to
Collections Total Tax Levy Taxes Total Tax Levy
$ 4,611,604 100.14 $ 283,909 6.2
4,892,160 98.97 278,501 5.6
5,238,073 100.37 303,983 5.8
5,021,839 96.13 286,677 5.5
5,293,257 99.56 383,032 7.2
5,852,909 99.72 280,499 4.8
6,306,937 99.43 258,104 4.1
7,032,122 99.57 293,915 4.2
8,088,398 99.27 389,445 4.8
9,142,003 99.65 479,170 5.2
117
CITY OF PEARLAND, TEXAS ·
Table 4
ASSESSED VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal Year
Ended Personal
Sept. 30, Real Property Property Total
1991 $ 494,085,484 $ 81,539,040 $ 575,624,524
1992 532,082,340 94,804,820 626,887,160
1993 555,963,400 98,841,350 654,804,750
1994 593,577,620 136,752,320 730,329,940
1995 646,643,658 116,800,212 763,443,870
1996 722,600,850 121,756,997 844,357,847
1997 774,645,420 100,838,570 875,483,990
1998 857,952,469 154,096,941 1,012,049,410
1999 998,492,267 173,806,010 1,172,298,277
2000 1,145,678,437 174,353,848 1,320,032,285
Note- Assessment date is January Ist of the tax year. Assessed value is 100%
of the estimated actual value.
Source- Tax department records of the County.
118
CITY OF PEAR.AND, TEXAS
Table 5
PROPERTY TAX RATES-
DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
Pearland Harris Harris
Independent Port of County County
Fiscal City of School Br~zoria Harris Houston Flood Hospital
Year Pearland District County County Authority Control District
1991 0.8000 1.4752 0.3161 0.3148 0.0133 0.0619 0.1662
1992 0.8000 1.6000 0.3161 0.3218 0.0153 0.0559 0.1962
1993 0.7970 1.5320 0.3575 0.3290 0.0149 0.0559 0.1962
1994 0.7153 1.7047 0.3575 0.3385 0.0122 0.0557 0.1897
1995 0.6974 1.7050 0.3575 0.3628 0.0132 0.0625 0.1835
1996 0.6950 1.7050 0.3575 0.4068 0.0160 0.0760 0.1238
1997 0.6950 1.7685 0.4989 0.4I 87 0.0156 0.0797 0.1238
1998 0.6950 1.7767 0.4989 0.4166 0.0213 0.0800 0.1238
1999 0.6950 1.8624 0.4989 0.3703 0.0204 0.0308 0.1465
2000 0.6950 1.6500 0.5336 0.3590 0.0183 0.0617 0.2027
Note: Property Tax rates based on per $100 of assessed valuation.
119
CITY OF PEARLAND, TEXAS
Table 6
PRINCIPAl, TAXPAYERS :"-
Se~teraber 30. 2000 ~-
1999 Assessed Percentage of
Value of Assessed
Taxpayer Type of Business Property * Valuation
1 . Weatherford International Oil Field Service, Rental &
Fishing Operation $ 18,679,380 1.42
2 . Houston Light & Power Utility Company 12,036,460 0.91
3 . Pearland Enclave Apts. Apartment 10,235,020 0.78
4 . Southwestern Bell Utility Company 9,374,920 0.71
Telephone Company
5 . Weatherford US LP Oil Field 6,574,300 0.50
6 . Texas Windmill Apts. Apartment 6,108,210 0.46
7 . Continental 34 Fund Ltd. Apartment 6,093,140 0.46
8 . Phillips Petroleum Co. Oil Field 6,036,120 0.46
9 . Aggreko Inc. Mobile Temperature 5,976,480 0.45
10 . Whispering Winds Apts. Apartment 5,854,140 0.44
Total ten principal taxpayers 86,968,170 6.59
Others 1,233,064,115 93.41
Total $ 1,320,032,285 100.00
Tax department records of the County.
CITY OF PEARLAND. TEXAS
Table 7
PROPERTY VALUE. CONSTRUCTION. AND BANK DEPOSITS
Sentember 30. 2000
Fiscal Bank Property
Year Construction Deposits-A Value - C
1991 $ 36,532,453 $ 181,448,579 $ 575,624,524
1992 40,648,928 175,680,243 626,887,160
1993 47,503,523 190,640,375 654,804,750
1994 50,962,332 194,173,827 730,329,940
1995 44,521,636 * 763,443,870
1996 47,357,024 * 844,357,847
1997 126,940,074 * 875,483,990
1998 95,711,203 * 1,012,049,4 i0
1999 106,475,930 * 1,172,298,277
2000 248,015,927 * 1,320,032,285
Note A- Bank deposits are as reported by Texas Bankers Associations at the preceding December 31.
Note B - Inspection department records to the City.
Note C - Tax department records of the City.
· Information not available
121
CITY OF PEARLAND, TEXAS
RATIO OF NET GENERAL LONG-TERM DEBT
TO ASSESSED VALUE AND NET LONG-TERM DEBT PER CAPITA
Last Ten Fiscal Years
Fiscal Year Net Assessed Gross
Ended Estimated · Value Long-Term
Sept. 30, Population (1) (in Thousands) Debt (2)
1991 18,750 $ 1,151,496 $ 22,398,598
1992 23,016 1,268,906 23,398,361
1993 23,016 1,329,410 24,385,000
1994 27,942 1,411,711 21,765,000
1995 27,942 1,494,202 25,810,000
1996 30,000 1,563,037 24,810,000
1997 36,000 1,624,015 35,350,000
1998 37,000 1,012,049 34,820,139
1999 37,535 1,172,298 33,456,209
2000 39,000 1,320,032 30,351,250
(1) - Bureau of Statistics plus Houston Lighting and Power connections times 3.19 less vacancy rate of 6.3%
(2) - Includes alt general obligation bonds, certificates of obligation, and
obligations under capital leases at fiscal year end.
122
Tnble 8
RatioofNet Net
Debt Service Net Long-Term Long.Term
Monies Long-Term Debt to Debt
Available Debt Assessed Value Per Capita
$ 1,586,672 $ 20,811,926 1.81 % $ 1,110
1,792,917 21,605,444 1.70 939
1,953,703 22,431,297 1.69 975
2,036,915 19,728,085 1.40 706
2,173,995 23,636,005 1.58 846
2,435,712 22,374,288 1.43 746
2,141,816 33,208,184 2.04 922
273,742 34,546,397 3.41 934
208,324 33,247,885 2.8,~ 886
681,148 29,670,102 2.25 761
123
CITY OF PEARLAND, TEXAS
Table 9
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL LONG-TERM DEBT TO :'-
TOTAL GENERAL GOVERNMENTAL EXPENDITURES
Last Ten Fiscal Years
Ratio of
Fiscal lntere~ Total Debt Service
Year Ended and Fiscal Total Debt General to Total
Sept. 30 Principal Agent Fees Service Expenditures ( 1 ) Expenditures
1991 $ 1,157,338 $ 1,202,679 $ 2,360,017 $ 7,433,675 31.75 %
1992 1,000,237 1,361,372 2,361,609 9,178,792 25.73
1993 1,243,361 1,303,993 2,547,354 11,163,194 22.82
1994 1,100,000 1,154,694 2,254,694 11,267,042 20.01
1995 955,000 1,089,453 2,044,453 12,167,599 16,80
1996 1,010,000 1,420,097 2,430,097 13,909,924 17.47
1997 1,200,000 1,251,033 2,451,033 14,518,469 16.88
1998 1,280,000 1,993,010 3,273,010 17,586,532 18.61
1999 1,440,000 1,769,693 3,209,693 19,309,504 16.62
2000 1,605,000 1,468,461 3,073,461 19,987,414 15.38
(1) - Includes general governmental expenditures of the General Fund and Debt Service
Fund.
124
CITY OF PEARLAND, TEXAS
Table 10
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
September 30, 2000
Overlapping
Gross
Taxing Jurisdiction Debt Percentage Amount
Brazoria County $ 28,518,942 5.41% $ 1,542,875
Harris County 785,659,545 0.05 392,830
Pearland Independent School District 97,836,973 61.77 60,433,898
Port of Houston Authority 296,600,000 0.05 148,300
Harris County Flood Control 150,409,153 0.05 75,205
Total Overlapping Debt 62,593,107
City of Pearland (1) 29,670,102 100.00 29,670,102
Total Direct and Overlapping Debt $ 92,263,209
Population 39,000
Per Capita Debt-Direct and Overlapping $ 2,365
(1) Excludes Certificates of Obligation Bonds reported in the enterprise fund and the amount
available for repayment in the debt service fund.
125
CITY OF PEARLAND, TEXAS
Table 11
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
' Fiscal
Year Ended Estimated School Unemployment
Sept. 30, Population (I) Enrollment (2) Percentage (3)
1991 18,750 6,950 2.6
1992 23,016 7,500 2.5 %
1993 23,016 7,555 3.2 %
1994 27,942 8,138 3.8
1995 27,942 8,600 3.7 %
1996 30,000 8,900 3.6 %
1997 36,000 9,300 3.9
1998 37,000 9,200 4.5 %
1999 37,535 9,500 4.6 %
2000 39,000 9,700 3.6 %
SOUTCCS;
(l) - Estimated Population-
The Pearland Economic Development Corporation
(2) - School enrollment figures were obtained from Pearland Independent School
District and includes kindergarten through college students.
(3) - Unemployment statistics for the City were obtained from the Texas
Workforce Commission and calculated as a percentage of unemployed to
employable.
126 C
CITY OF PEARLAND, TEXAS
Table 12
MISCELLANEOUS STATISTICAL DATA
Page I of 2
September 30, 2000
Date of incorporation December 1959
Form of government
Area Council/Manager
36 square miles
Fire Protection:
Number of stations 3
Number of certified personnel, not including reserve flreflghters 45
Number of fire vehicles 13
Police Protection:
Number of stations 1
Number of commissioned officers, not including P.S.O.
or reserve officers 93
Number of patrol vehicles (home fleet program) 74
Recreation:
Number of parks 8
Acres 110.66
Number of pools
Number of tennis courts 9
Softball fields 4
Pavilions 1 large & 4 small
Community Center 1
Activity Building 1
Education:
Pearland Independent School District
Number of teachers 663
N umber o f students 10,224
Elementary Schools 7
Middle Schools 2
Junior Highs 2
High School I
127
CITY OF PEARLAND, TEXAS
Table 12 "
MISCELLANEOUS STATISTICAL DATA
Page 2 of 2
September 30, 2000
City Employees:
Pull-time employees 258
Part-time employees 84
342
Election:
Number of votes cast
Last general election 1,908
Last city election 6/3/00
Water:
Number of wells 8
Average daily consumption 5,500,000 gallons
Maximum daily consumption 10,000,000 gallons
Water mains 180 miles
Number of connections 10,780
Number of plants 3
Lift stations 65
Average daily capacity 7,750,000 gallons
Maximum daily consumption 28,000,000 gallons
Sanitary sewer mains 170 miles
Number of connections 10,200
Emergenoy Medical Services:
Number of volunteers 25
Number of paid paramedics 34
Number of stations 1
Number of vehicles 8
Library:
Number of buildings 1
Number of cardholders 24,000
· Number of books in library 84,000
128 ~_