R-2015-040 2015-03-09 RESOLUTION NO. R2015-40
A Resolution of the City Council of the City of Pearland, Texas,
accepting the City's comprehensive annual financial report for fiscal
year 2014 as prepared by the accounting firm of Whitley Penn, LLP.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain comprehensive annual financial report as prepared by
Grant Thornton, a copy of which is attached hereto as Exhibit"A" and made a part hereof
for all purposes, is hereby authorized and approved.
Section 2. That the City Council accepts the City's comprehensive annual
financial report.
PASSED, APPROVED and ADOPTED this the 9"' day of March, A.D., 2015.
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TOM REID
MAYOR
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DA RIN M. COKER
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended
September 30, 2014
Officials Issuing Report
Clay Pearson Jon Branson Trent Epperson Claire Bogard Rick Overgaard
City Manager Deputy City Assistant City Director of Finance Assistant Director
Manager Manager of Finance
CITY OF PEARLAND,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Page
Introductory Section
Letter of Transmittal
Principal Officials xi
Organizational Chart xii
GFOA Certificate of Achievement xiii
Financial Section
Report of Independent Auditors 1
Management's Discussion and Analysis 7
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 21
Statement of Activities 22
Fund Financial Statements:
Balance Sheet-Governmental Funds 24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 27
Statement of Revenues,Expenditures,and Changes in Fund Balances-
Governmental Funds 28
Reconciliation of the Statement of Revenues,Expenditures,and Changes in Fund
Balance of Governmental Funds to the Statement of Activities 30
Statement of Net Position-Proprietary Funds 31
Statement of Revenues,Expenses and Changes in Fund Net Position- Proprietary
Funds 32
Statement of Cash Flows-Proprietary Funds 33
Notes to the Financial Statements 35
Required Supplementary Information:
General Fund-Schedule of Revenues,Expenditures,and Changes in Fund Balances-
Budget and Actual 70
Notes To Required Supplementary Budget Information 71
Required Pension System and Other Post Retirement Benefit Supplementary
Information 72
CITY OF PEARLAND,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS(Continued)
Financial Section(Continued) Page
Other Supplementary Information:
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet-Non-Major Governmental Funds 78
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances-
Non-Major Governmental Funds 82
Schedules of Revenues,Expenditures,and Changes in Fund Balance-Budget
and Actual:
Debt Service Fund 86
Hotel/Motel Tax Fund 87
Court Security Fund 88
City-Wide Donations Fund 89
Court Technology Fund 90
Street Assessments 91
Park Donations Fund 92
Police Seizure Fund 93
Parks and Recreation Development Fund 94
Sidewalk Fund 95
Grant Fund 96
Traffic Impact Improvements 97
Juvenile Management Fund 98
Capital Projects Fund 99
Educational TV Fund 100
U of H Fund 101
Long-Term Debt Amortization Schedules:
Combining Schedule of Governmental Activity Long-Term Debt 104
Combining Schedule of Enterprise Fund Long-Term Debt 112
CITY OF PEARLAND,TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS(Continued)
Statistical Section(Unaudited) Page
Net Position by Component 118
Changes in Net Position 120
Fund Balances of Governmental Funds 124
Changes in Fund Balances of Governmental Funds 126
Spending and Growth Analysis 128
Assessed Value and Estimated Actual Value of Taxable Property 130
Per Capita,Household,Square Mile for Benchmark Cities of Taxable Property 133
Direct and Overlapping Property Tax Rates 134
Property Tax Levies and Collections 136
Principal Property Taxpayers 137
Taxable Sales by Category 138
Outstanding Debt by Type 140
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita 142
Direct and Overlapping Governmental Activities Debt 143
Pledged Revenue Coverage 144
Demographic and Economic Statistics 145
Principal Employers 147
Full-time Equivalent City Government Employees by Function/Program 148
Operating Indicators by Function/Program 150
Capital Asset Statistics by Function/Program 154
Introductory Section
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RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE
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3519 Liberty Drive
Pearland,Texas 77581
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February 23, 2015
Honorable Mayor,Members
of City Council,and.Citizens of the
City of Pearland,Texas
Honorable Mayor,Members
of City Council,and Citizens of the
City of Pearland,Texas
The Comprehensive Annual Financial Report (CAFR) of the City of Pearland, Texas (the "City") for
the fiscal year ending September 30, 2014, is hereby submitted as mandated by both local and state
statutes. These ordinances and statutes require that the City issue an annual report on its financial
position and activity and that an independent firm of certified public accountants audit this report.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Whitley Penn, LLP, Certified Public Accountants, have issued an unqualified (or"clean") opinion on
the City of Pearland's financial statements for the year ending September 30, 2014.The independent
auditor's report is located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements.MD&A complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
The City of Pearland, incorporated in 1959, is located across the northern end of Brazoria County
and shares a common border with Houston,Texas to the north.The City also extends into Fort Bend
and Harris Counties. The City of Pearland, encompassing approximately 48 square miles, is the
fastest growing city in Brazoria County, increasing from approximately 18,000 residents in 1990 to
108,800 residents estimated as of September 2014.
The City of Pearland is a home-rule City operating under a Council-Manager form of government.
Policy-making and legislative authority are vested in a governing council (Council) consisting of the
mayor and five other members.The Mayor and all Council members are elected at large. The Mayor
is allowed to vote only in case of a tie vote. The Mayor and each Council member hold office for a
period of three years and until his/her successor is elected and qualified. Council members are
limited to two full consecutive terms of office and there is no limitation on the office of Mayor. The
City Manager is appointed by Council and is responsible for implementation of Council policy,
execution of the laws,and all day-to-day operations of the City.
RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE
A full range of municipal services is provided by the City of Pearland including public safety(police,
fire, and emergency medical services); solid waste; water and wastewater utilities; public
improvements; repair and maintenance of infrastructure; recreational and community activities;
convention and visitors bureau; and general administrative services. In addition, the City provides
planning for future land use, traffic control, building codes, and health inspections, and plans for
new infrastructure and rehabilitation of infrastructure to meet the needs of the citizens today, as
well as tomorrow.The City is authorized to issue debt, subject to certain limitations, for the purpose
of financing its capital projects and the City is empowered to levy a property tax on real property
within its boundaries.
Activities of the general, debt service,water and sewer, solid waste, capital project funds, and special
revenue funds such as hotel/motel tax are included in the City's annual appropriated budget. Capital
project funds are budgeted for project length. The legal level of control for each budget is at the fund
level, which is to say that total expenditures for each fund should not exceed total budgeted
expenditures for that fund. The City Manager is authorized to transfer budgeted amounts within
and among departments. The City Council must approve any budget amendment that increases
appropriations by fund. The City amends the budget at the end of each fiscal year to reflect current
year projections for revenues and expenditures/expenses.
As an independent political subdivision of the State of Texas, the City is considered a primary
government. Pursuant to standards established by the Governmental Accounting Standards Board
(GASB), the City also reports for all funds for which the City, as the primary government, is
financially accountable. As such, this report includes financial activities of three component units as
follows: The Pearland Economic Development Corporation was created by the City in 1995 under
the Texas Development Corporation Act of 1979 to promote, assist, and enhance economic and
related development activities on behalf of the City. The Tax Increment Reinvestment Zone (TIRZ
#2)was created in 1998 for the purposes of development and redevelopment in the Zone Area, better
known as Shadow Creek Ranch. The City participates in the Zone by contributing a portion of tax
increments produced in the Zone to the Tax Increment Fund. The Development Authority of
Pearland was created in 2004 to provide financing for the development of TRIZ #2. All these
component units are considered blended component units and have been included as major funds in
the Governmental Funds.
ECONOMIC CONDITIONS
Local Economy
Located minutes away from downtown Houston, Texas, the nation's second largest seaport, the
world-renowned Texas Medical Center, and NASA-Johnson Space Center, Pearland is the premier
location for residential and commercial growth. With abundant land, business facilities, a sound
infrastructure, and a diverse workforce supported by educational programs, Pearland's growth has
been consistent and will continue to be sustained over time with continued residential and
commercial development.
The total of all new construction permitted during the 2014 calendar year was over $390 million, a
37% increase in value from 2013. New single-family housing permits totaled 1,068 with a
construction value of$199 million. Multi-family permits totaled 1,008 with a value of$59 million.
Pearland's economy continues to maintain strong levels. During the final quarter of 2014 there was a
52% increase in residential permits compared to the same time last year. Residential permitting
activity for the 2015 fiscal year is expected to remain near 2014 levels, budgeted at 1,000 permits.
For calendar year 2014, the City had 309 commercial permits with a value of $132.4 million,
compared to 184 permits with a value of$74 million in 2013. The commercial real estate market also
remains strong.
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Sales of homes throughout the greater Houston area remained robust in 2014, driven by a
combination of good local job numbers and historically low interest rates.The Houston Association of
Realtors reported within Pearland and ETJ. 75,319 single family home sales for 2014, up 2.8% from
the 73,232 sales in 2013. The average price of a single family home rose 8.7% from $248,591 in 2013
to $270,182 in 2014. Indications are that the Houston area will continue to have a healthy market
with a balanced supply of housing inventory and strong pricing—conditions that put Houston in an
enviable position compared to other markets around the country.
Houston is the world's energy capital. Growth in the oil and gas industry has been robust, however,
because of the recent decrease in the price of oil, exploration has been taping off. Spending for
exploration in 2015 should be 40 percent lower than 2014. It may be 2016 before we see an increase
in the price of oil and exploration. With the decrease in exploration, Houston will look to other
sectors for growth. The forecast is for growth in all sectors except oil field services, oil field
equipment manufacturing, and oil field exploration.
Pearland's unemployment rate was 4.3% in September 2014, down from 5.0% in September 2013.
This is compared to the national unemployment rate of 5.9% and the State of Texas unemployment
rate of 5.2% as of September 2014. Pearland's unemployment is less than the national and state
rates with a growing economy. Houston added 69,800 jobs in 2014 and the Greater Houston
Partnership is forecasting 62,900 new jobs for 2015. Although this is lower than the past couple of
years, the Houston economy is still strong. The Houston area, and the State of Texas, is built on
businesses, on jobs, and on economic opportunities. Pearland is poised to take advantage of those
opportunities.
Pearland has two prime areas for commercial, mixed use, and livable developments along the
Highway 288 corridor, one north of Shadow Creek Parkway and the other South. A strategic and
target market study shows that energy, healthcare, life sciences, and manufacturing are key areas of
interest for Pearland. Combined with a mix of reinforcing land uses, urban planning, key
entertainment and cultural attractions, public spaces, and walkability and connectivity, all will
provide for livable sustainable developments.
Modern Green Development, one of the largest developers in China, chose a 48-acre site for its first
U.S. project and only its second in North America. Pearland's Planning and Zoning Commission
approved the project in July. The rendering of early stages of the project, called the Ivy District,
show land for a 150-room hotel and conference center, a community center to hold local meetings and
banquets, 160,000 square feet of retail space and 140,000 square feet of office space. There will be
1,150 residential units, 400 of which will be rentals. Another block will be designed as an
entertainment area. About 20 acres will be left as green park space, according to the announced
plans.
In late 2014, Hospital Corporation of America (HCA) completed construction on its Pearland Medical
Center, the community's first acute-care hospital. The 144,000 square-foot, 32-bed hospital contains
surgical suites, medical/surgical beds, intensive care beds and a 24-hour emergency department.
The hospital, which opened to the public in February 2015, is located on a 48-acre site that also is
home to a full-service freestanding emergency department, imaging center and three-story, 80-000
square-foot medical office building.
Other medical developments include Memorial Hermann beginning construction on its new hospital
and breaking ground on a second 100,000 square-foot medical office building on its 40-acre campus.
The 64-bed acute-care hospital is expected to open in 2015 and will feature an intensive care unit,
operating rooms, cardiac catherization labs, medical/surgical suites, women's and neonatology units.
In addition, Chamberlain College of Nursing opened a new campus in Pearland. The Pearland
campus is Chamberlain's second in Texas and 14th in the nation. Located at 12000 Shadow Creek
Parkway, Chamberlain's new Pearland campus offers an on-site Bachelor of Science in Nursing
degree program and features Chamberlain's SIMCARE CENTERTM, which provides high-tech
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simulated patient care in clinical learning environments.
Sales tax for fiscal year 2014 totaled $25.7 million, an increase of$2.1 million or 8.9% over fiscal
year 2013. Of the $25.7 million, $17.1 million went to the City's General Fund for operations and
$8.6 million went to the City's Economic Development Corporation for economic development
programs and activities. The City's General Fund is 28% funded by sales tax, an elastic revenue
stream that will fluctuate with the economy. As such, the City closely monitors sales tax and the
economy.
Pearland is a regional shopping destination and the economy has turned around since the recession
of 2010 and 2011. The City saw a resurgence of spending in 2012, which continued in 2013 and 2014.
As such, the City projected a 5.6%growth in sales tax for fiscal year 2015. The nation's largest retail
group, National Retail Federation, expects retail sales to increase at a slightly faster pace this year
than last year as continued improvements in jobs and housing should help shoppers feel more
confident about spending. Increased residential units in Pearland and the immediate trade area
support the established retail base.
Long-Term Financial Planning
The City adopts a one-year operating budget, including a five-year capital improvement program
(CIP). Even though a one-year budget is adopted, the budget implements strategies, both financial
and operational,to meet existing challenges and to plan for the future.
The City's Five-Year CIP for fiscal year 2015 through fiscal year 2019 totals $419 million and
continues to implement the $162 million bond program approved by the voters in May 2007. As of
September 30, 2014 there was $77.6 million in unissued bonds approved by the voters and based on
the 2014-2018 CIP. Projects include drainage ($22M), streets ($171M), facilities ($41M), parks
($20M), water and wastewater ($165M). Projects in the CIP have identified funding sources or
potential funding sources. Funding for these projects comes from the issuance of debt through
Certificates of Obligation, General Obligation Bonds, and Revenue Bonds, as well as impact fees,
cash, and contributions from the State, County, and other sources.Those projects that are unfunded,
currently totaling $70.6 million, most of this utilities, will be identifying projects for the City's next
bond referendum,potentially as early as 2016.
The Debt Service Fund forecast shows a need to increase the Debt Service component of the tax rate
to$0.5325 by fiscal year 2017 to implement the Five-Year CIP,excluding unfunded projects,which is
consistent with the financial modeling that the City undertook when analyzing the Debt Service tax
implications of implementing the $162 million bond referendum. The debt service component of the
tax rate for fiscal year 2015 remains the same as in fiscal year 2014 at$0.4900.
The City completes a Water/Sewer Cost of Service Rate Study annually for the forecast. The study is
built around the Five-Year CIP, operating budget, and future needs. Due to funds on hand for pay-
as-you go capital improvements, no rate increase was taken for fiscal year 2011, 2012 or 2013,
however, the model anticipates rate increases for 2015, 2017 and 2018. The City's utility system
continues to be self-supporting and financially sound.
Relevant Financial Policies/Guidelines
Financial Policies guide the development and implementation of the budget and are a framework for
fiscal decision making and that ensure financial resources are available to meet the current and
future needs of the City. The policy statements address areas of reporting and auditing, budgeting,
revenues, capital improvements, debt, and grants to name a few. Some of the most relevant policies
are:
• Recurring revenues fund recurring expenditures/expenses.
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RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE
• Non-recurring funds fund non-recurring expenditures/expenses.
• General Fund Operating Reserves should be a minimum of two months of operations.
• Water and Wastewater Operating Reserves shall strive to be maintained at 25% of
operations.
• Budget revenues on a conservative basis.
• Fund existing services at current service levels.
• Enterprise Funds must be self-supporting.
• Leverage City dollars by seeking outside funding sources.
• Maintain stable property tax rates.
Major Initiatives
The City Council, staff, and community share a vision that combines progress and innovation with
prudent controls to shape Pearland's future, as it becomes one of the largest suburbs in the Houston
area.Some of the major initiatives are as follows:
Public Safety
Among numerous other reasons, families move to Pearland for a high degree of personal safety and a
low crime rate. Pearland was recently rated as one of the safest Cities in the United States ranking
number 48 out of the top 50 Cities. Pearland was one of two cities in the Houston area in the top 50.
The City Council continues to emphasize public safety and the City delivers programs in the areas of
law enforcement, emergency management,emergency medical services, and fire protection.
For more than a decade, the City of Pearland public safety departments have been subscribers to an
800 MHZ trunked radio system provided by Harris County. This system was originally designed for
mobile radios in vehicles and at a time when the western half of Pearland was sparsely populated.
Pearland public safety departments have experienced significant radio reception difficulties creating
safety issues for the City. Harris County is not able to improve radio coverage in west Pearland,
and to switch to the digital version of the Harris County system would have been costly and would
not guarantee improved radio coverage. The City of Houston established a $130 million dollar 700
MHz trunked radio system designed for in-building coverage using portable radios. After radio
testing and research, the City of Pearland switched to the City of Houston's radio system which will
result in improvements in coverage, improving public safety for employees and citizens of Pearland,
and at a lesser cost than creating a new radio system or staying as a subscriber to the current radio
system.
The City of Pearland Police Department communications division provided dispatch services for the
City's Police, Fire, and EMS departments. Due to the rapid population growth and increased
demands for service in the City, it became apparent that the Police communications division
workload was unsustainable. As an alternative to hiring more dispatchers, the City has contracted
with Harris County Emergency Corps for the provision of Fire Department and EMS dispatch
services. In addition to the cost savings of not having to hire additional employees, the contracted
dispatch center brings added capabilities to the Fire and EMS departments. By utilizing personnel
specifically trained and certified for the Fire and EMS dispatch role, as well as employing a
Computer Aided Dispatch system specifically configured for Fire and EMS dispatching, this
arrangement has contributed to increased safety for emergency responders as well as better
deployment and utilization of resources.
Fire Station 2, located at the northeast corner of Harkey and Fite Road, is under construction. This
station will be approximately 10,400 sq. ft. and house an operation crew, two fire engines, and one
ambulance. This facility construction started in October 2014 and will be ready for starting
occupancy by July 2015. Fire Station 1, currently located at the corner of Orange Street and Old
Alvin Road, will relocate in 2018 to provide quicker response times. The new station will be located
on McHard Road near Pearland Parkway.At approximately 8,500 sq. ft., the station will house a 24
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hour operation crew,one fire engine, and one ambulance.
Fire Station 3 began construction in June 2014 on a new 10,726 square foot station which is located
on the corner of Yost and Broadway adjacent to the existing EMS station. The new station will
accommodate both Fire and EMS as the department transitions from volunteer to a career fire
department and the two emergency entities have now merged. The existing EMS station that is
currently located in a converted house on the same site as the new station will remain functional
throughout construction. The new Fire Station#3 will accommodate 10 full-time fire fighters and is
expected to be open and operational by April 2015, after which the existing EMS station will be
demolished.
Another initiative of the City, is the approved merger of the Fire and EMS departments effective
October 1, 2014. In 2010, the City engaged the firm of McGrath Consulting Group to evaluate the
City's Fire and EMS departments. One of the recommendations was to consolidate the Departments;
the purpose being to improve the efficiency and effectiveness of current and future delivery of
services at the highest possible level of quality while considering costs. The consolidation is multi-
year, multi-phase plan with cross-training occurring in fiscal year 2014 and full-implementation in
fiscal year 2015.
Economic Development
The Pearland Economic Development Corporation (PEDC) is a non-profit Type B Corporation under
the Texas Development Corporation Act and is primarily funded by a half-cent sales tax in the City
of Pearland. PEDC is committed to enhancing the community's economic vitality through the
attraction, retention and expansion of primary employers. PEDC works to ensure Pearland's
business climate and built environment strongly support these efforts by focusing on aesthetics,
infrastructure, quality of life, image, workforce and quality development and redevelopment of key
Pearland districts and corridors.
PEDC works with the City to utilize various tools such as tax abatement and the authority granted
the City under Chapter 380 of the Local Government Code to encourage new jobs and investment in
the community. The following highlights a few of PEDC's Fiscal Year 2014 attraction and retention
projects.
In January, Mitsubishi Heavy Industries Compressor Corp. broke ground on its first U.S.
manufacturing facility in Pearland's Lower Kirby District. The 100,000 square-foot manufacturing
and service facility is located on a 26-acre site on Kirby Drive. The facility, which is estimated to
bring$40 million in investment to the community, will house approximately 100 employees who will
produce, service and market compressors to serve the growing demand of North American chemical
customers.
Dover Energy, a division of diversified global manufacturer Dover Corporation, opened a 150,000
square-foot manufacturing and operations facility in Fall 2014. PEDC recruited Dover Energy to the
community in 2013 when the company was looking to consolidate its multiple Texas locations into
one regional facility. The $23.8 million facility, located on a 14-acre site at the northeast corner of
Spectrum Boulevard and Hooper Road in Pearland's Lower Kirby District, is home to approximately
200 employees.
Merit Medical's opened its new Pearland R&D and manufacturing facility in October. The 92,000
square-foot office building has brought more than $14 million in investment to the community.
PEDC and the City began working with Merit Medical in 2011 on its multi-state search for a site for
this facility. It is located on a 12-acre site in Pearland's Lower Kirby District. The facility is home to
approximately 220 employees, including management personnel, engineers, and production staff,
who serve client hospitals worldwide in the development, manufacture and distribution of
proprietary disposable medical devices used in interventional and diagnostic procedures,particularly
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in cardiology,radiology and endoscopy.
Keystone Engineering Group selected a site in Pearland for its new office and manufacturing facility
in December. The $6 million, 45,000 square-foot facility will be located on a 23-acre site on McHard
Road near SH 35. PEDC began working with the company last year on the project, which will
consolidate several regional sites into one location. The new facility will house approximately 70
employees,including office and administrative staff, machinists and inspectors.
PEDC continued to work with the Highway 288 Management District (PMMD#2), created in 2013,
on corridor beautification. The corridor currently is non-landscaped and does not reflect City
standards. The goal is to create a vibrant visually appealing corridor that will attract investment in
the City. District board members have been appointed and the District has levied a 10-cent tax rate,
which is anticipated to generate approximately $400,000 annually. The Board has also approved a
master plan for the District and cleanup efforts have begun in the corridor.
PEDC, along with local partners in government, education, healthcare and business, continue to
work on implementation of the Pearland 20/20 community strategic plan. The long-term strategic
community and economic development plan that was created in 2012 incorporates nine strategies to
ensure a shared vision for the community's future growth and an action plan to achieve it. The nine
strategies are 1.Marketing, 2.Mobility, 3. Corridors, 4. Recreation and Culture, 5. Beautification, 6.
Lower Kirby Mixed Use District, 7. Multi-Use Event Center, 8. Workforce Pipeline, and 9. Image
Campaign.
One of the City's prime areas for development, the Lower Kirby Mixed Use District at Hwy 288 and
Beltway 8, has infrastructure needs that make it more difficult to develop. The PEDC is working
with two area Municipal Management Districts and the City on the development of regional
detention, reconstruction of Hooper Road and the installation of underground electricity that will
serve developable sites on Kirby Drive.
The Pearland Economic Development Corporation continues to promote Pearland and is working
with a myriad of companies on future relocations and site visits as well as working with existing
businesses on future expansions.
The City's Convention and Visitor's Bureau (CVB), funded by hotel occupancy taxes, also focuses on
economic development through tourism and putting heads in beds. In late 2012, the City Council
authorized the creation of a city department for the Convention and Visitor's Bureau, service that
had been previously contracted out. In fiscal year 2013, an Executive Director and staff was hired.
The location of Pearland, as previously mentioned, makes Pearland a perfect hub and spoke for
visitors and "A Perfect Pick...to play, stay, meet, and getaway", the tag line for the CVB. The time
has come for Pearland to complement and support its development with cultural and lifestyle
amenities to include a multi-use events center. This need has been noted in multiple Pearland
planning processes as an enhancement to make the city more competitive for employers and
residents.Annual hotel occupancy taxes total slightly over$1.4 million dollars and the funds ending
balance is$3 million as of September 30, 2014.
Land Use Plan/Annexation
Land use planning seeks to order and regulate the use of land in an efficient and ethical way, thus
preventing land use conflicts. Land use planning is the systematic assessment of land, alternatives
for land use, and social and economic conditions in order to select and adopt the best land use
options. Its purpose is to select and put into practice those land uses that will best meet the needs of
the people while safeguarding resources and ensuring sustainability.
PEDC and the City of Pearland, in partnership with Gateway Planning, finalized a market-based
master plan and implementation strategy for the area formerly known as the Spectrum District, and
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RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE
currently known as the Lower Kirby Mixed Use District, that leverages the area's unique location
(on Beltway 8 and 288) and creates a de facto"master development" context. The area is planned to
be a regional employment center with destination mixed use urban living, and concentrated
retail/entertainment areas.
The key issues addressed by the plan include drainage, transportation access, linkages, and transit;
revision of the existing zoning and development standards; incorporating new development with
existing uses;involving the existing municipal management districts; and incorporating public parks
and open spaces.
The master plan and associated regulatory recommendation of a form-based code envisions a
market-based approach and identifies different"character zones"of development, each implementing
a unique neighborhood within the Lower Kirby Mixed Use District.This form-based code is combined
with the overall infrastructure strategy that identifies the major regional drainage and roadway
improvements needed to bring the plan together. This master plan and implementation strategy for
Lower Kirby ensure that the vision for the mixed use regional destination is feasible, but flexible to
address changing market conditions. In order to implement this vibrant vision for the Lower Kirby
Mixed Use District, PEDC is working with the City of Pearland and the two area Municipal
Management District Boards to create a coordinated action plan that identifies the responsibilities
and roles of each of the entities.
In January 2013, City Council voted to incorporate the Grand Avenue Master Plan into the City's
Comprehensive Plan. The plan is designed to facilitate future development of Grand Avenue as a
focal point for the Old Town Site while also responding to existing growth patterns in the city. A
primary initiative for this plan is to reinvent the Old Town Site as a modern village with a
compatible mix of residential and non-residential uses. The Plan recommends adopting form based
codes that would be used to ensure buildings and streets are coordinated in a manner that is
attractive to pedestrians and encourages outdoor activities. Using form based codes allows for more
flexibility and a mix of uses as compared to traditional zoning used throughout the City.
Capital Improvement Projects and Planning
With continued residential and commercial growth, and to plan for the future, the need to build new
infrastructure and maintain existing infrastructure is a priority and will be implemented through an
aggressive capital improvement program. The City's Five-Year CIP 2015-2019 totals $419 million.
Projects include drainage ($22M), streets ($171M), facilities ($41M), parks ($20M), water and
wastewater($165M).
Major thoroughfare projects include the widening of Bailey Road between FM1128 and Veterans,
reconstruction of one mile of Old Alvin Road from Plum Street to McHard Road, McHard Road
extension from Mykawa to Cullen, expansion of Smith Ranch Road from two lanes asphalt to four
lanes concrete,curb and gutter from Hughes Ranch to North of Broadway, the widening of Max Road
between Broadway and Hughes Ranch Road, and the extension of Fite between McLean and
Veterans. Major drainage projects include expansion of the D.L. Smith detention pond by
approximately 150 acre-feet and future storm water regional detention at FM518 and Cullen.
Major park projects include a soccer complex, improvements to Independence and Centennial Parks,
Phase I development of the Shadow Creek Ranch Park, and a 7,000 square foot Nature Center.
Facility projects include an 11,500 square feet expansion and renovation to the Tom Reid Library,
reconstruction of Fire Station#3 and Fire Station#2,relocation of Fire Station#1, and City Hall and
Hill House Road facility improvements.
Water projects include the preliminary design of a 20 million gallon per day surface water plant
along with various waterline extensions. Wastewater projects include the expansion of the Far
viii
RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE
Northwest, Barry Rose and JHEC wastewater treatment plants, extension of trunk sewer on
McHard, and various lift station projects.
Transportation Improvements and Strategic Planning
Charged with planning,establishing, and maintaining an effective transportation system, the City of
Pearland is involved in numerous activities to face this challenge. The $84 million transportation
bond program(passed in 2007)will construct major projects mentioned previously.
The City is also involved in regional efforts for long-range transportation planning and funding. The
Mayor is a member of H-GAC's Transportation Policy Council(TPC), and an Assistant City Manager
is a member of the Technical Advisory Committee (TAC), a sub-committee of the TPC and the
Transportation Improvement Program(TIP)Subcommittee.
The City submitted several proposed roadway projects from its Capital Improvement Program for
possible funding in the region's Transportation Improvement Program (TIP) for 2013-2016 and five
of the City's projects were selected for funding. The projects are McHard Road Extension(Mykawa to
Cullen), Bailey Road (Veterans to FM1128), Smith Ranch Road Extension and Green Tee Terrace
and Shadow Creek Ranch Trails. These projects will receive 80% funding from state or federal
sources totaling $63,251,113 with the City providing 20% matching funds. These projects are in
addition to the four projects that received funding in 2011 totaling $20,180,901 in state or federal
funding from the TIP. These projects are slated to be completed within the City's current Five-Year
Capital Improvement Program.
With the growth in population along the Highway 288 corridor and the number of Pearland residents
that rely on Hwy 288 to commute to Houston and the Texas Medical Center, the City along with
Brazoria County have been meeting and working with the Texas Department of Transportation to
provide traffic relief on the corridor through managed toll lanes. Harris County is preparing to begin
construction by the end of 2015 on four new toll lanes on Texas 288 north of the Brazoria-Harris
County line to the Texas Medical Center. Brazoria County will follow with managed toll lanes from
the county line south to County Road 58.
The Gulf Coast Center operates a transportation program known as Connect Transit. Connect
Transit provides "curb cab" service to Pearland. Services are shared ride services with pick-up and
delivery from curb to curb by reservation. The City funds approximately $20,000 for this service
annually to its citizens meeting the eligibility requirements; seniors,person with disabilities, or low-
income.This is a way to provide those needing transportation to grocery stores, doctor visits,etc.
Fiscal Responsibility and Sustainability
Fiscal sustainability can be defined as"the extent to which patterns of Government spending do not
undermine the capability of the Government to continue to spend to achieve its public purposes."
City Council takes a proactive stance in ensuring the fiscal health and sustainability of the City.
Council adopted a set of Financial Management Policy Statements and receives quarterly Finance
"Snapshot" presentations, which includes economic indicators. The City also prepares a Five-Year
Forecast for the City's major funds to see how the spending decisions made today affect the future as
well as to identify any issues/concerns that are forthcoming and to put strategies in place today to
address those issues/concerns for the future.
Since fiscal year 2013 we have seen a turnaround in the economy and growth. The improving
Houston area economy and the City's increasing population played major roles in the development of
the fiscal year 2015 budget. The strong local economy will most likely result in continued growth in
revenues in the current fiscal year, 2015, most noticeably in sales tax and building permits. Sales tax
revenue for fiscal year 2014 is up 7.0% over the prior year. The fiscal year 2015 Adopted Budget
includes an increase of 2.3% over fiscal year 2014. Building Permit revenue is also projected to
ix
RESPONSIVE RESULTS-ORIENTED TRUST-BUILDERS ACCOUNTABLE
maintain the strong levels that have developed during fiscal year 2014. The Adopted Budget for
fiscal year 2015 anticipates 1,000 single family permits. Another significant factor that impacts the
Adopted Budget is a 3% increase in population. This increase in population results in a need for
increased services to meet needs of new residents. This projected increase in population is the result
of both newly constructed homes and multifamily dwellings. The Adopted Budget includes a .007
cent increase in the property tax rate from $0.7051 to $0.7121 per $100 valuation. Of the total
adopted tax rate of 71.21 cents per hundred dollars valuation, the operating tax rate increased to
22.21 cents per hundred dollars and the debt service tax rate remains unchanged at 49 cents.
While about half-way into the 2015 fiscal year, the City is already beginning to prepare for the 2016
budget process and up-coming forecast with the same goal of being fiscally responsible to our
citizens.
AWARDS AND ACKNOWLEDGEMENTS
The Texas State Comptroller awarded the City of Pearland a Platinum Leadership Circle Award,
which spotlights entities that go above and beyond providing financial transparency online through
clear, consistent pictures of spending and sharing information in a user-friendly format that lets
viewers easily drill down for more information.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for the Excellence in Financial Reporting to the City of Pearland, Texas,
for its Comprehensive Annual Financial Report for the year ended September 30, 2013. This was
the 37th 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. This report must satisfy both generally accepted
principles and applicable legal requirements.A Certificate of Achievement is valid for a period of one
year only. We believe that our current comprehensive annual financial report continues to meet the
Certificate of Achievement Program's requirements, and we are submitting it to GFOA to determine
its eligibility for another certificate.
The City has also received the GFOA's Distinguished Budget Presentation Award for its annual
budget document. In order to qualify for the Distinguished Budget Presentation Award, the
government's budget document had to be judged proficient as a policy document, a financial plan, an
operations guide, and a communications device.
The preparation of this report was accomplished with the dedicated service of the Accounting staff of
the Finance Department. We express our sincere appreciation to these individuals who have
continually demonstrated the core beliefs of the City and who assisted and contributed to the
preparation of this report. We also thank the Mayor and members of the City Council for their
support in planning and conducting the financial operations of the City in a responsible manner.
Respectfully submitted,
aft,
Clay J. Pearson, City Manager Claire Bogard,Director of Finance
x
CITY OF PEARLAND,TEXAS
PRINCIPAL OFFICIALS
Term
Expires
Elected Officials Position May
Torn Reid Mayor 2017
Tony Carbone Council Member at Large-Position One 2016
Scott Sherman Council Member at Large-Position Two 2015
Gary Moore Council Member at Large-Position Three 2017
Keith Ordeneaux Council Member at Large-Position Four,Mayor Pro Tern 2015
Greg Hill Council Member at Large-Position Five 2016
Appointed Officials Position
Clay Pearson City Manager
Damn Coker City Attorney
Letitia Farnie Municipal Court Judge
City Management Position
Jon Branson Deputy City Manager
Trent Epperson Assistant City Manager
Claire Bogard Director of Finance
Matt Buchanan Executive Manager of Development Services and
PEDC President
Young Lorfing City Secretary
Eric Wilson Director of Public Works
Bonita Hall Director of Human Resources
Chris Doyle Police Chief
Michelle Smith Director of Parks and Recreation
Vance Riley Fire Chief
Andrew Fearn Head Librarian
Lata Krishnarao Director of Community Development
Kim Sinistore Executive Director,CVB
Sparkle Anderson Communications Manager
xi
CITY OF PEARLAND,TEXAS
ORGANIZATION CHART
1 Office of the City.
Manager
Deputy City
Manager
Management i
Parks& d Finance& Analyst
Recreation Purchasing
•
City Secretary ,...HR/Organizational
Development
1
Communications 7 CVR
Municipal Court —
i I I I I
Assistant Executive Chief Information
City Manager of I Fire Police Officer
'`anger Development
Services&PEOC '^------._.__.. ___.._—____.
President i%
I_.-City Engineer Public Works I I I Fire Marshal I Animal Control IT/GIS
•
•
• —.'.'-"—I Community —. L
PEDC Development �� _
—I t Projects Operations �y Water&Sewer Code&Health Strategic
1 _ Enforcement Initiatives
Planning
I Li
Traffic
•
--i, Engineering ,I Facilities
Operations
Building
Inspections
Right of Way
Xii
G4
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pearland
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2013
fieisp-4e04.
Executive Director/CEO
xiii
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Financial Section
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�. Houston Office
■ 3411 Richmond Avenue
whitleypenn Suite 500
Houston,Texas 77046
713.621.1515 Main
whitleypenn.com
REPORT OF INDEPENDENT AUDITORS
To the Honorable Mayor and Members of
the City Council
City of Pearland,Texas
We have audited the accompanying financial statements of the governmental activities,the business-type
activities,each major fund,and the aggregate remaining fund information of City of Pearland,Texas(the
"City")as of and for the year ended September 30,2014,and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of fmancial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the fmancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In making those risk assessments,the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management,as well as evaluating the overall presentation of the financial statements.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
each major fund, and the aggregate remaining fund information of the City, as of September 30, 2014,
and the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
An lnrienerxiera
1 Member of
Dallas Fort Worth Houston NI N I A
INTF.RAATIO`IAI.
To the Honorable Mayor and Members of
the City Council
Emphasis of Matter
As discussed in Note 16 to the financial statements, the City adopted the provisions of Governmental
Accounting Standards Board Statement No. 65,Items Previously Reported as Assets and Liabilities as of
September 30, 2014. Our opinion is not modified with respect to this matter. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 7 through 17, budgetary comparison information on pages 70 through
71, and pension system supplementary information and other post-employment benefit supplementary
information on page 72 be presented to supplement the basic fmancial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic fmancial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the fmancial statements that collectively
comprise the City's basic fmancial statements. The introductory section, combining and individual fund
statements and schedules, other supplementary information, budgetary comparison schedules and
statistical section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual fund statements and budgetary comparison schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic fmancial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund statements and schedules, other
supplementary information,and budgetary comparison schedules are fairly stated,in all material respects,
in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
2
To the Honorable Mayor and Members of
the City Council
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 23,
2015, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters.The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing,and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering City's internal control over financial
reporting and compliance.
Wh;+i r Z LL-F)
Houston,Texas
February 23,2015
3
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4
Management's Discussion and Analysis
5
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6
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Pearland (the "City"), we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30,2014.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the primary government of the City exceeded its
liabilities as of September 30, 2014, by $668.2 million (net position). Of this amount, $605.2
million is invested in capital assets, net of related capital debt and $60.3 million restricted for
capital projects, debt service, community development projects, public safety, and economic
development.
• The City's total primary government net position increased by $26.8 million primarily due to
capital contributions from developers.
• At the close of the current fiscal year, the City's governmental funds reported combined ending
fund balances of$71.4 million, an increase of$6.6 million in comparison with the prior year.
Increases are seen in the Pearland Economic Development Corporation of$3.8 million and $2.0
million in the non-major governmental funds. Approximately $51.8 million of the $71.4 million
is considered restricted; $23.8 million for economic development, and $17.5 million is mainly
attributable to unspent bond proceeds for capital projects.
• As of September 30, 2014, the unassigned fund balance for the General Fund was $17.9 million
or 30%of total General Fund expenditures. The total fund balance for the General Fund is $19.5
million or 33%of General Fund expenditures.
• The City's General Obligation and Certificates of Obligation debt for governmental activities
totaled$293.2 million,a net decrease of $1.5 million over the previous year. Revenue bonds for
the City's component units totaled $80.1 million, an increase of$5.0 million from last year. The
City's debt for business activities totaled $114.8 million, a net decrease of approximately $4.9
million from the previous year principal outstanding.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements are comprised of three components: (1) government-
wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide Financial Statements - The government-wide fmancial statements are designed to
provide readers with a broad overview of the City's fmances, in a manner similar to a private-sector
business.
The Statement of Net Position presents information on all of the City's assets, deferred outflows of
resources, and liabilities, with the difference between the three reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the fmancial position of
the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during the
fiscal year. All changes in net position are reported when the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected
taxes and earned but unused compensated absences).
7
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from functions that are
intended to recover all or a significant portion of their costs through user fees and charges(business-type
activities). The governmental activities of the City include general government, public safety, public
works, community services and parks and recreation. The business-type activities of the City include
water,sewer,and solid waste.
The government-wide financial statements can be found on pages 21 through 23 of this report. The
government-wide financial statements include not only the City, itself (known as the primary
government), but also a legally separate Economic Development Corporation, Tax Increment
Reinvestment Zone (TIRZ) and the Development Authority of Pearland for which the City is financially
accountable. Financial information for these blended component units is reported together with the
financial information presented for the primary government,itself.
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All funds of the City can be divided into two categories - governmental funds and
proprietary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statement focus on current sources
and uses of spendable resources,as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government's near-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues,
expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
Beginning on page 24 of this report, information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues,Expenditures,and Changes in Fund
Balances for the General, Debt Service, Pearland Economic Development Corporation, Tax Increment
Reinvestment Zone#2,and Development Authority of Pearland,which are considered to be major funds.
Data from the non-major governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement
has been provided for the General Fund to demonstrate compliance with the budget.
8
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Proprietary Funds-The City maintains one type of proprietary fund. Enterprise Funds are used to report
the same functions presented as business-type activities in the government-wide financial statements. The
City uses an Enterprise Fund to account for its Water and Sewer Fund and Solid Waste Fund.
Proprietary funds provide the same type of information as the government-wide financial statements,only
in more detail. The basic proprietary fund financial statements, which begin on page 31 of this report,
provide separate information for the Water and Sewer and Solid Waste Enterprise Funds since it is
considered to be a major fund of the City.
The basic proprietary fund financial statements can be found on pages 31 through 34 of this report.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements can be found beginning on page 35 of this report.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents other required supplementary information as well as combining and individual fund
statements and schedules that further support the information in the financial statements. This
information is presented immediately following the notes to the fmancial statements beginning on page 70
of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City,assets and deferred outflows of resources exceeded liabilities by$668.2
million at the close of the most recent fiscal year.
By far the largest portion of the City's net position (91%) reflects its investment in capital assets (e.g.,
land,buildings,machinery,and equipment), less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City's investment in its capital assets is reported net of
related debt,it should be noted that the resources needed to repay this debt must be provided from other
sources,since the capital assets themselves cannot be used to liquidate these liabilities.
9
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
COMPARATIVE SCHEDULE OF NET POSITION
September 30,2014 and 2013
Amounts in(000's)
Governmental Activities Business-type Activities _ Totals
2014 2013* 2014 2013* 2014 2013*
Assets
Current and other assets $ 99,425 $ 92,877 $ 39,996 $ 41,056 $ 139,421 $ 133,933
Capital assets 759,236 749,038 288,672 281,213 1,047,908 1,030,251
Total Assets 858,661 841,915 328,668 322,269 1,187,329 1,164,184
Deferred Outflows of
Resources
Deferred charge on refunding 11,517 11,053 509 560 12,026 11,613
Total Deferred Outflows
of Resources 11,517 11,053 509 560 12,026 11,613
Liabilities
Other liabilities 11,846 17,170 7,735 9,147 19,581 26,317
Long-term liabilities outstanding 395,230 386,657 116,392 121,521 51 1,622 508,178
Total Liabilities 407,076 403,827 124,127 130,668 531,203 534,495
Net position
Net investment in capital assets 430,286 420,009 174,955 165,915 605,241 585,924
Restricted 45,826 34,666 14,483 9,542 60,309 44,208
Unrestricted (13,010) (5,534) 15,612 16,704 2,602 11,170
Total Net Position $ 463,102 $ 449,141 S 205,050 $ 192,161 $ 668,152 $ 641,302
*As restated
Due to the implementation of GASB 61,The Financial Reporting Entity: Omnibus An Amendment of GASB
Statements No. 14 and No. 34(GASB 61),Pearland Economic Development Corporation,Pearland TIRZ#2
and the Development Authority of Pearland have been presented as blended component units and therefore are
included in the Governmental Activities column.
As a result of this implementation,unrestricted net position for governmental activities is negative$13.0 million
for fiscal year 2014. Governmental Accounting Standards require that the Development Authority of Pearland
outstanding debt be deducted from the unrestricted component of the government's net position as the
Development Authority has acquired no capital assets,therefore the debt is considered non-capital related.
If one were to adjust for this, Governmental Activities Unrestricted Net Position would have been a
positive $19.9 million compared to $20.6 million in fiscal year 2013, a reduction of$698 thousand in
unrestricted net position.
The increase in Total Net Position from the prior year is $26.9 million,which is primarily attributed to
capital contributions from developers.
10
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
COMPARATIVE SCHEDULE OF CHANGES IN NET POSITION
For the Years Ended September 30,2014 and 2013
Amounts in(000's)
Governmental Activities Business-type Activities Totals
2014 2013* 2014 2013* 2014 2013*
Revenues
Program revenues:
Charges for services $ 19,847 $ 22,719 $ 35,937 $ 37,183 $ 55,784 $ 59,902
Operating grants and
contributions 9,297 2,325 9,297 2,325
Capital grants and
contributions 29,269 53,101 17,677 16,273 46,946 69,374
Property taxes 57,378 54,433 57,378 54,433
Sales and use taxes 27,295 24,942 27,295 24,942
Franchise taxes 6,484 5,999 6,484 5,999
Investment earnings 254 155 139 95 393 250
Other 2,399 1,701 275 682 2,674 2,383
Total Revenues 152,223 165,375 54,028 54,233 206,251 219,608
Expenses
General Government 12,241 13,358 12,241 13,358
Public Safety 32,130 28,944 32,130 28,944
Public Works 38,579 31,690 38,579 31,690
Community Services 4,687 3,807 4,687 3,807
Parks and Recreation 6,896 9,524 6,896 9,524
Economic Development 26,498 17,411 26,498 17,411
Interest on long-term debt 16,225 10,534 16,225 10,534
Water and Sewer 32,444 31,289 32,444 31,289
Solid Waste 6,664 8,324 6,664 8,324
Total Expenses 137,256 115,268 39,108 39,613 176,364 154,881
Increase(decrease)in net
position before special
item and transfers 14,968 50,107 14,920 14,620 29,888 64,727
Special item-loss on disposal
of asset (3,039) (3,039)
Transfers 2,031 1,607 (2,031) (1,607)
Increase in net position 13,960 51,714 12,889 13,013 26,849 64,727
Net position-beginning,as
restated 449,141 397,427 192,161 179,148 641,302 576,575
Net position-ending S 463.1 0 1 S 449.141 S 205.050 $ 192,161 S 66s,151 S 641.302
*As restated
At the end of the current fiscal year,the City is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and business-
type activities.
11
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Governmental activities - Governmental activities increased the City's net position by $14.0 million,
thereby accounting for 52%percent of the total increase in the net position of the City. Key elements of
this increase are as follows:
• Property taxes,sales and use taxes,and franchise taxes totaled$57.4 million, $27.3 million,and
$6.5 million respectively.These revenues increased by$5.8 million from prior year primarily as
a result of an increase in taxable assessed values and increased consumer spending.
• Capital contributions totaled $29.3 million as a result of infrastructure contributed by
developers.
• The revenues were offset by expenses for general government,public safety,public works, and
economic development of $12.2 million, $32.1 million, $38.6 million, and $26.5 million
respectively. In total,these expenses were relatively consistent with the prior year.
Expenses and Program Revenues-Governmental Activities
$45,000
$40,000 -
$35,000
7„ $30,000 ■expenses
c $25 000 ■Program Revenues
r
$20,000
$15,000
$10,000
$5,000 --
$-
O` Sad ' • o
S aka co O
co> G°
5p
Revenues by Source - Governmental Activities
Charges for services
13%
Grants and
contributions
Other 25%
2%
Sales and use taxes
Property taxes • 18%
38%
Franchise taxes
4%
12
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Business-type activities-Business-type activities increased the City's net position by$12.9 million,thereby
accounting for 48% percent of the total increase in the net position of the City. Key elements of this
increase are as follows:
• Charges for services of$35.9 million decreased approximately $1.2 million over the prior year
primarily due to a decrease in water and sewer consumption due to rainfall.
• Capital grants and contributions of million increased $1.4 million from the prior year mainly
due to increased contributions from developers for impact fees.
• The revenues listed above were offset by expenses of $32.4 million and $6.7 million,
respectively, for Water and Sewer and Solid Waste. Expenses decreased from prior year by
$505.0 thousand as the billing of commercial garbage was transitioned directly between City
provider and commercial accounts.
Expenses and Program Revenues-Business-type Activities
$50,000 -$45,000
$40,000
$35,000
II Expenses _
$30,000 ■Program Revenues _
§ $25,000
a $20,000 --
$15,000
$10,000
$5,000
Water and Sewer Solid Waste
Revenues by Source - Business-type Activities
(hher
10,
Charges for
services
66%
Grants and
contnbutions
33%
13
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal
requirements.
Governmental Funds - The focus of the City's governmental funds is to provide information of near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of
the City's net resources available for spending at the end of the fiscal year.
The City's governmental funds reflect a combined fund balance of$71.4 million.A portion of the combined
fund balance, or $17.9 million, is unassigned and available for day-to-day operations of the City; $17.5
million is restricted for capital projects;$23.8 million for economic development and the remaining balance
is restricted for debt service and other programs.
There was an increase in the combined fund balance of$6.6 million from the prior year. The increase in
fund balance includes a decrease of$106.9 thousand in the Debt Service Fund balance,offset by a combined
increase of approximately $831.4 thousand in the General Fund, $3.8 million in the Pearland Economic
Development Corporation,and$2.0 million in the non-major governmental funds. The General Fund's fund
balance totaled$19.5 million at year end.
The Pearland Economic Development Corporation, TIRZ #2, and Development Authority, the City's
component units blended with the primary government, had expenditures totaling $32.5 million, leaving an
ending fund balance of$19.2 million,$4.3 million,and$1.9 million,respectively,all considered restricted.
Proprietary Funds - The City's business-type activities contain two activities (water and sewer, and solid
waste). The City's proprietary funds provide the same type of information found in the government-wide
financial statements.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there was a $1.6 million increase in appropriations between the original and final
amended budget. The increase in appropriations is attributable to carryover funding from prior-year
encumbrances and projects and to reflect projections during the 2013-2014 budget process.
Budget estimates for revenues and other sources combined increased by approximately$1.5 million for the
year; also to reflect carryovers and revised projections. Actual revenues of $57.7 million were $613.5
thousand over the final budget mainly in sales and use tax and licenses and permits. Actual expenditures of
$59.7 million were under budget by $3.9 million, resulting in the year-end fund balance of$19.5 million
over budget by$3.9 million.
At year-end,equipment purchases and several projects were still in progress and part of the$3.9 million will
be carried over and reappropriated in the 2014-2015 budget year.
14
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - At the end of fiscal year 2014, the City's governmental activities and business-type
activities had invested $759.2 million and $288.7 million, respectively, in a variety of capital assets and
infrastructure,as reflected in the following schedule.This represents a net increase of$10.2 million,or 1.4
percent over the end of last fiscal year for the governmental activities and a net increase of$7.5 million or 2.7
percent over the end of last fiscal year for business-type activities.
Governmental Activities Business-Type Activities Totals
2014 2013 2014 2013 2014 2013
Land $ 31,264 $ 31,264 $ 3,796 $ 3,796 $ 35,061 $ 35,060
Construction in progress 19,975 23,306 9,509 8,918 29,483 32,224
Infrastructure 617,866 607,940 221,763 212,666 839,628 820,606
Buildings and improvements 79,233 77,899 26,438 27,168 105,672 105,067
Machinery and equipment 8,110 6,165 1,289 1,401 9,399 7,566
Furniture and fixtures 2,789 2,464 30 37 2,819 2,501
Contractual water rights 25,847 27,227 25,847 27,227
Total Capital Assets S 759 236 $ 749,038 $ 288,672 S 281,213 S 1,047,908 $1,030,251
Construction in progress at year-end represents numerous ongoing projects, the largest of which relate to
street,parks,and water/sewer projects. Additional information on the City's capital assets can be found in
Note 4 to the financial statements.
Long-Term Debt - At the end of the current fiscal year, the City had total bonds, certificates of
obligation, notes, capital leases, and post-employment liabilities outstanding of$511.6 million. Of this
amount,$249.6 million is composed of general obligation bonds, $56.5 million is composed of certificates
of obligation and$182.1 million represents revenue bonds secured solely by specified revenue sources.
Governmental Activities Business-Type Activities Totals
2014 2013 2014 2013 2014 2013
General obligation bonds $ 236,730 $ 230,040 $ 12,865 $ 14,020 $ 249,595 $ 244,060
Certificates of obligation 56,505 64,690 56,505 64,690
Revenue bonds 80,125 75,125 101,925 105,690 182,050 180,815
Unamortized amount for
issuance premium/(discount) 10,123 6,159 592 730 10,715 6,889
Capital leases payable 4,344 3,681 169 261 4,513 3,942
Compensated absences 5,682 5,007 525 463 6,207 5,470
Post employment benefit liability 1,721 1,955 315 357 2,036 2,312
$ 395,230 $ 386.657 $ 116,391 S 121.521 $ 511.622 S 508.178
The City's general obligation bonds and certificates of obligation debt for governmental activities
decreased to$293.2 million. The decrease is due to principal payments offset by new monies issued.The
City's debt for business activities decreased to $114.8 million, a net decrease of$4.9 million from the
previous year,which was a result of principal payments.
15
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
Current ratings on debt issues are as follows:
Moodys
Standard Investor
and Poors Fitch Services
General obligation bonds AA AA Aa2
Revenue bonds AA- AA- Aa3
Both the Pearland Economic Development Corporation (PEDC) and the Development Authority of
Pearland (DAP), component units of the City, have issued debt. The PEDC bonds are rated Al from
Moody's.The DAP bonds are rated A-by Standard and Poors. Additional information on the City's long-
term debt can be found in Note 5 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
The City continues to grow in FY 2015, but with some challenges and vulnerabilities. The first
vulnerability is the City is significantly leveraged,which was necessary to give us the opportunity to grow
successfully. As of September 30, 2014 the City had $293.2 million in General Obligation and
Certificates of Obligation outstanding being paid back primarily by property taxes. Our fmancial
obligations will continue to be met, and the City will continue to grow, but knowing that the heavy
investments both past and future may limit our resources for ongoing operations and innovations. Second
is the challenge to maintain strong property values on limited land resources. The property values derived
from the City's growth have not been of extremely high value relative to the land that has been developed
compared to some other large suburban communities. Despite these valuation concerns, the overall tax
base reflects a strong 8.5% increase for FY 2015, compared to 7.1% in FY 2014, and 1.0%, 0.6%, and
2.6% in fiscal years 2011, 2012, and 2013, respectively. The third vulnerability is bringing the City's
organizational structure up to the task of supporting an expansive 48.39 square mile, 110,000 resident,
and $7 billion valuation community. In FY 2015 we will institute a modem configuration to take
advantage of the talents of our staff and continue to deliver excellent results,with the biggest move bring
Public Works and Projects/Engineering together.
With the improving Houston area economy and the continued growth in population served by the City we
are budgeting a 5%increase in General Fund revenues over FY 2014. For General Fund operations,sales
tax has been our single most important revenue at 28% of operating revenue with $18.1 million for the
City General Fund and$8.9 million for the Economic Development Corporation. Sales tax is projected to
increase 6.0% over FY 2014. The FY 2015 budget includes an increase of$0.007 to the Operating and
Maintenance property tax rate, which should provide an additional $412,720 in revenue, for a total tax
rate of$.7121 in FY 2015. Although residential building permits still remain strong at almost 1,000 a
year, there is a lag time before the benefits of the new construction are realized in the community, in
revenue generation, as well in the provision of services. The budget includes an increase in fees for
development,planning,and health services to reflect the actual cost of services. Because of these changes
in fee charged, additional revenue of$335,930 is projected for FY 2015. However, as predicted for FY
2015, the General Fund has a structural imbalance, with recurring operating expenditures greater than
recurring operating revenues. The total net revenues for FY 2015, or drawdown of fund balance is
($3,827,478) and comprised of$1.5 million in recurring expenditures and $2.3 million in non-recurring
expenditures.
Overall General Fund expenditures, including transfers out, are up 1.8% in FY 2015. Operating
expenditures without the transfers out are up 3.8%from FY 2014 projections.Wage and benefits are 67%
of General Fund expenditures, with health care costs becoming a significant cost factor. Public Safety is
16
CITY OF PEARLAND,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
more than half(54%) of General Fund expenditures (Police and Fire/EMS), which have grown 4.7%,
16.8%, and 14.5% in fiscal years 2015, 2014 and 2013,respectively. The Parks and Recreation category
is budgeted at $6.77 million in expenditures, lower than last year's budget of$8.64 million, which is
primarily a function of our reorganization transferring functions to Public Works. Capital Improvements
total $55.1 million for FY 2015. A few of the projects planned for the year are McHard Road extension,
Bailey Road widening, Shadow Creek Ranch Sports Complex, building of Fire Station 2, and expansion
of Reflection Bay Wastewater.
As Pearland continues to grow, staff continues the planning for the expansion of the various components
of the public water-sewer utility; striving to keep pace with both the system's expansion as well as the
rehabilitation of the aging portions of the infrastructure. In order to operate the system, provide for debt
service, cash reserves and to meet bond coverage requirements, the fiscal year 2015 budget included a
4.63% revenue increase, generating $1.358 million in additional revenues. This increase was effective
with October 2014 consumption.The last rate increase was six years ago,in October 2008.
REQUESTS FOR INFORMATION
The financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of City's finances. If you have questions about this report or need any additional financial
information,contact Claire Bogard,Director of Finance,at 3519 Liberty Drive,Pearland,Texas 77581,or call
(281) 652-1600. The report and general information can be found on the City's website at
www.cityofpearland.com.
17
18
Basic Financial Statements
19
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20
CITY OF PEARLAND,TEXAS
STATEMENT OF NET POSITION
September 30,2014
Primary Government
Governmental Business-type
Activities Activities Total
Assets
Cash and equivalents $ 43,398,683 $ 1,952,004 $ 45,350,687
Investments 27,169,072 10,976,950 38,146,022
Receivables,net of allowance
for uncollectibles 22,257,880 3,355,570 25,613,450
Due from other governmental agencies 4,606,223 4,606,223
Inventories 137,364 137,364
Prepaid items 273,960 12,946 286,906
Restricted cash and investments 1,581,708 23,698,185 25,279,893
Capital assets:
Capital assets not subject
to depreciation 51,238,883 13,305,246 64,544,129
Capital assets,net of
accumulated depreciation 707,997,510 275,366,686 983,364,196
Total Capital Assets 759,236,393 288,671,932 1,047,908,325
Total Assets 858,661,283 328,667,587 1,187,328,870
Deferred Outflows of Resources
Deferred charge on refunding 1 1,516,723 509,414 12,026,137
Total Deferred Outflows of Resources 11,516,723 509,414 12,026,137
Liabilities
Accounts payable and accrued liabilities 6,958,302 4,178,461 11,136,763
Accrued interest 1,241,106 395,419 1,636,525
Unearned revenues 3,562,276 3,562,276
Customer deposits 84,808 3,161,497 3,246,305
Long-term liabilities:
Due within one year 17,269,808 5,279,661 22,549,469
Due in more than one year 377,960,070 111,111,719 489,071,789
Total Liabilities 407,076,370 124,126,757 531,203,127
Net Position
Net investment in capital assets 430,286,194 174,954,845 605,241,039
Restricted for:
Capital improvements 7,433,862 12,256,333 19,690,195
Debt service 5,857,298 2,227,279 8,084,577
Community development programs 5,984,329 5,984,329
Public safety 389,883 389,883
Economic development 26,160,315 26,160,315
Unrestricted (13,010,245) 15,611,787 2,601,542
Total Net Position S 463.101,636 S 205,050,244 $ 668,151,880
See Notes to Financial Statements.
2l
CITY OF PEARLAND,TEXAS
STATEMENT OF ACTIVITIES
For the Year Ended September 30,2014
Program ReNenue
Charges for Operating Grants Capital Grants
Functions/Programs Expenses Services and Contributions and Contributions
Primary Government
Governmental Activities:
General Government $ 12,240,571 $ 6,636,909 $ 440,613 $
Public Safety 32,129,934 2,792,687 433,973
Public Works 38,578,835 321,715 7,612,275 29,268,764
Community Services 4,686,8% 7,375,068 336,541
Parks and Recreation 6,896,350 2,290,588 473,952
Economic Development 26,497,574 430A72
Interest on long-term debt 16,224,826
Total Governmental Activities 137,254,986 19,847,439 9,297,354 29,268,764
Business-type activities:
Water and Sewer 32,444,427 28,928,774 17,677,185
Solid Waste 6,663,564 7,008,474
Total Business-Type Activities 39,107,991 35,937,248 17,677,185
Total Primary Government S. 176,362 977 $ 55,784,687 S 9.297.354 $ 46.945.949
General Revenues:
Taxes:
Property taxes
Sales and use taxes
Franchise taxes
Unrestricted investment earnings
Miscellaneous
Special item-loss on disposal of asset
Transfers
Total General Revenues and Transfers
Change in net position
Net position-beginning,as restated
Net position-ending
See Notes to Financial Statements.
22
Net(Expense)Revenue and Changes in Net Position
Primary Governmc nt
Governmental Business-type
Activities Activities Total
$ (5,163,049) $ $ (5,163,049)
(28,903,274) (28,903,274)
(1,376,081) (1,376,081)
3,024,713 3,024,713
(4,131,810) (4,131,810)
(26,067,102) (26,067,102)
(16,224,826) (16,224,826)
(78,841,429) (78,841,429)
14,161,532 14,161,532
344,910 344,910
14,506,442 14,506,442
(78,841,429) 14,506,442 (64,334,987)
57,378,285 57,378,285
27,294,598 27,294,598
6,483,961 6,483,961
254,228 138,712 392,940
2,398,589 274,466 2,673,055
(3,038,547) (3,038,547)
2,030,588 (2,030,588)
92,801,702 (1,617,410) 91,184,292
13,960,273 12,889,032 26,849,305
449,141,363 192,161,212 641,302,575
$ 46 x.101.616 $ 2(15(110,244 S 668.151.880
I
23
CITY OF PEARLAND,TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30,2014
Pearland Tax
Economic Increment
General Debt Development Reinvestment
Fund Service Corporation Zone#2
Assets
Cash and cash equivalents S 10,403,021 $ 1,638,827 S 5,527,157 $ 4,346,425
Investments 8,730,187 2,993,905 11,465,298
Receivables,net of allowance
for uncollectlbles 5,668,522 9,008,351 4,187,704
Due from other governments 516,600
Due from other funds 275,323
Inventories 137,364
Prepaid items 64,675 166,894 38.171
Restricted cash 665,254
Total Assets S 25,795,692 S 13,807 977 S 21.883,584 S 4.346.425
Liabilities
Accounts payable $ 2,659,825 $ 247,442 83,411 5
Accrued expenditures 1,394,615 103,332 16,352
Deposits 46,475 38,333
Due to other funds
Unearned revenue 1,773,256 1,789,020
Total Liabilities 5,874,171 2,139,794 138,096
Deferred Inflows of Resources
Unavailable revenue 467,020 7,132,246 2,590,001
Total Deferred Inflows
of Resources 467,020 7,132,246 2,590,001
Fund Balances
Non-spendable
Inventories 137,364
Prepaid items 64,675 166,894 38,171
Restricted
Debt service 4,369,043 665,254
Capital improvements
Community development programs
Public safety
Economic development 18,452,062 4,346,425
Assigned 1,393,883
Unassigned
General fund 17,858,579
Total Fund Balances 19,454,501 4,535,937 19,155,487 4,346,425
Total Liabilities,Deferred
Inflows of Resources,
and Fund Balances $25,795,692 $ 13,807,977 $ 21,883,584 $ 4,346,425
See Notes to Financial Statements.
24
Development Non-nlajo, l'otal
Authority of Cove tome ntal Go c e runic ntal
Pearland Funds Funds
$ 1,016,477 $ 17,595,463 $ 40,527,370
5,712,643 28,902,033
3,253,480 22118,057
4,089,623 4,606,223
275,323
137,364
4 220 273,960
916,454 1,581,708
$ 1,932,931 S 30,655.429 S 98,422(138
$ 735 S 2,011,974 $ 5,003,387
136,761 1,651,060
84,808
275,323 275,323
3,562,276
735 2,424 058 10,576,854
6,238,130 16,427,397
6,238,130 16,427,397
137,364
4,220 273,960
916,454 5,950,751
17,518,567 17,518,567
4,080,571 4,080,571
389,883 389,883
1,015,742 23,814,229
1,393,883
17,858,579
1,932,1% 21,993,241 71,417,787
S 1.932,9-;I S 30.655,429 $ 98,422,038
25
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26
CITY OF PEARLAND,TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF NET POSITION
September 30,2014
Total fund balance,governmental funds $ 71,417,787
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets used in governmental activities are not financial resources and,therefore,
are not reported in the funds. 759,236,393
Deferred outflows represent a consumption of net position that applies to future periods
and therefore will not be recognized as an outflow of resources until then.The amount is
deferred and amortized over the shorter of the life of the refunded or refunding debt. 11,516,723
Other long-term assets(property taxes receivable and adjudicated court fines receivable)
are not available to pay current period expenditures and,therefore,are reported as
unavailable revenue in the funds. 16,427,397
Long-term liabilities,including bonds payable,are not due and payable in the current
period,therefore,are not reported in the funds.
Bonds and capital leases payable (387,826,573)
Compensated absences (5,682,057)
Accrued interest governmental activity debt (1,241,106)
Estimated post employment benefit liability (1,721,250)
Internal service funds are used by management to charge the cost of property insurance
and employee benefits to individual funds.The assets and liabilities of the internal service
funds are included in the governmental activities in the statement of net position. 974,322
Net Position of Governmental Activities in the Statement of Net Position S 463,101.636
See Notes to Financial Statements.
27
CITY OF PEARLAND,TEXAS
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended September 30,2014
Pe arland
Economic Tax Increment
General Debt Development Reinvestment
Fund Service Corporation Zone#2
Revenues
Property taxes $ 12,095,419 $27,131,534 $ $ 18,150,930
Sales and use taxes 17,326,556 8,563,736
Franchise fees 6,214,046
Licenses and permits 4,148,763
Fines and forfeitures 2,970,397
Charges for services 12,663,599 414,000
Investment earnings 88,232 37,272 76,217 13,366
Intergovernmental 663,540 79,060
Other 2,172,857 111,856 20,108
Total Revenues 57,679,869 27,944,202 9,153,121 18,164,296
Expenditures
Current:
General government 7,234,797
Public safety 29,039,403
Public works 7,946,912
Community services 3,747,462
Parks and recreation 7,357,692
Economic development 3,334,329 6,653,380
Debt Service:
Principal 89,950 11,575,162 920,000
Interest and other charges 24,536 13,102,430 1,109,810
Capital outlay 4,233,164
Intergovernmental 4,307,496
Total Expenditures 59,673,916 28,985,088 5,364,139 6,653,380
Excess(deficiency)of revenues
over expenditures (1,994,047) (1,040,886) 3,788,982 11,510,916
Other Financing Sources(Uses)
Issuance of debt
Refunding bonds issued 29,720,000
Payments to refunded bond
escrow agent (33,182,437)
Bond premium 3,778,000
Capital leases 1,852,939
Transfers in 3,756,917 618,439
Transfers out (2,784,425) (11,494,978)
Total Other Financing Sources(Uses) 2,825,431 934,002 (11,494,978)
Net change in fund balances 831,384 (106,884) 3,788,982 15,938
Fund balances-beginning 18,623,117 4,642,821 15,366,505 4,330,487
Fund balances-ending $ 19,454,501 S 4.535.937 S 19,155.487 S 4,346,425
See Notes to Financial Statements.
28
Development Non-major Total
Authority of Governmental Governmental
Pcarland Funds Funds
$ $ 57,377,883
1,404,306 27,294,598
269,915 6,483,961
4,148,763
150,125 3,120,522
13,077,599
2,394 36,083 253,564
1,798,276 2,540,876
1,852,425 4,157,246
2,394 5,511,130 118,455,012
9,218 783,336 8,027,351
131,711 29,171,114
174,508 8,121,420
212,144 3,959,606
458,104 7,815,796
15,260,000 25,247,709
3,230,000 15,815,112
2,024,178 111,564 16,372,518
11,302,540 15,535,704
4,307,496
20,523,396 13,173,907 134,373,826
(20,521,002) (7,662,777) (15,918,814)
9,150,000 10,690,000 19,840,000
29,720,000
(33,182,437)
1,005,606 4,783,606
1,852,939
11,494,978 636,591 16,506,925
(2,687,112) (16,966,515)
20,644,978 9,645,085 22,554,518
123,976 1,982,308 6,635,704
1,808,220 20,010,933 64,782,083
$ 1,932,196 $ 21,993,241 $ 71,417.787
29
CITY OF PEARLAND,TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended September 30,2014
Net change in fund balances -total governmental funds: $ 6,635.704
Amounts reported for Governmental Activities in the Statement of Activities are different
because:
Governmental funds report outlays for capital assets as expenditures.However,in the
Statement of Activities,the cost of these assets is allocated over their estimated useful lives as
depreciation expense.
This is the amount by which capital outlays of$15,209,398 exceeded depreciation of
$30,832,741 in the current period. (15,623,343)
Governmental funds report only the proceeds from the disposal of capital assets and not the
difference between the carrying value and the accumulated depreciation of the asset.This is
the amount by which the carrying value exceeded the accumulated depreciation. (3,038,547)
Capital assets net of related debt acquired as a result of in City development. 28,859,861
Governmental funds do not present revenues that are not available to pay current obligations.
In contrast,such revenues are reported in the Statement of Activities when earned. 4,909,389
Governmental funds report bond proceeds as current financial resources.In contrast,the
Statement of Activities treats such issuance of debt as a liability. Governmental funds report
repayment of bond principal as an expenditure,In contrast,the Statement of Activities treats
such repayments as a reduction in long-term liabilities.This is the amount by which proceeds
exceeded repayments. (2,578,538)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and,therefore,are not reported as expenditures in governmental funds:
Accrued interest 5,770
Deferred charge on refunding (463,231)
Bond premiums/discounts (3,963,389)
Compensated absences (675,326)
Capital lease activity (662,849)
Post employment benefit liability 233,904
The internal service funds are used by management to charge the costs of property insurance
and employee benefits to individual funds.The net revenue(expense)of certain activities of
internal service funds is reported with governmental activities.
with governmental activities. 320.868
Change in net position of governmental activities $ 13 960273
See Notes to Financial Statements.
30
CITY OF PEARLAND,TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNAS'
September 30,2014
Governmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal
Fund Fund Total Service Fund
Assets
Current assets:
Cash and cash equivalents $ 1,081,007 $ 870,997 $ 1,952,004 $ 1,138,353
Investments 10,729,315 247,635 10,976,950
Accounts receivable,net of allowance for doubtful accounts 2,745,768 609,802 3,355,570 139,824
Prepaid items 12,946 12,946
Restricted cash and cash equivalents 16,254,065 16,254,065
Restricted investments 7,444,120 7,444,120
Total current assets 38,267,221 1,728,434 39,995,655 1,278,177
Non-current assets:
Capital assets:
Land and improvements 3,796,382 3,796,382
Construction in progress 9,508,864 9,508,864
Contractual rights to water supply 34,511,428 34,511,428
Infrastructure 317,072,555 317,072,555
Buildings 31,256,472 31,256,472
Machinery and equipment 3,909,461 3,909,461
Less Accumulated depreciation (111,383,230) (111,383,230)
Total non-current assets 288,671,932 288,671,932
Total Assets 326,939,153 1,728,434 328,667,587 1,278,177
Deferred Outflows of Resources
Deferred charge on refunding 509,414 509,414
Total Deferred Outflows of Resources 509,414 509,414
Liabilities
Current liabilities:
Accounts payable and accrued expenses 2,861,779 1,316,682 4,178,461 303,855
Accrued interest payable 395,419 395,419
Customer deposits 3,161,497 3,161,497
Compensated absences-current portion 87,701 87,701
Bonds and permanent improvement payable-current portion 5,105,000 5,105,000
Capital lease-current portion 86,960 86,960
Total current liabilities 11,698,356 1,316,682 13,015,038 303,855
Non-curre nt liabilities:
Compensated absences 437,208 437,208
Capital lease obligation 82,180 82,180
Other post-employment benefits 315,267 315,267
Bonds and permanent improvement payable 110,277,064 110277,064
Total non-current liabilities 111,111,719 111,111,719
Total Liabilities 122,810,075 1,316,682 124,126,757 303,855
Net Position
Net investment in capital assets 174,954,845 174,954,845
Restricted for debt service 2,227,279 2,227,279
Restricted for capital projects 12,256,333 12,256,333
Unrestricted 15200,035 411.752 15,611,787 974,322
Total Net Position $ 204,638,492 5 411,752 $205,050244 S 974.322
See Notes to Financial Statements.
31
CITY OF PEARLAND,TEXAS
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended September 30,2014
Cove mmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal
Fund Fund Total Service Fund
Revenues
Charges for services $ 28,928,774 $ 7,008,474 $ 35,937,248 $ 5,625,833
Total operating revenues 28,928,774 7,008,474 35,937,248 5,625,833
Operating Expenses
Personnel services 5,515,437 5,515,437
Supplies and materials 1,855,344 1,855,344
Contractual services 7,878,094 6,627,904 14,505,998 7,687,649
Repairs and maintenance 2,016,347 2,016,347 5,766
Other expenses 442,269 35,660 477,929 102,392
Depreciation and amortization 9,629,848 9,629,848 -
Total Operating Expenses 27,337,339 6,663,564 34,000,903 7,795,807
Operating income(loss) 1,591,435 344,910 1,936,345 (2,169,974)
Non-Operating Revenues(Expenses)
Earnings on investments 137,477 1,235 138,712 664
Miscellaneous revenue(expense) 274,466 274,466
Interest expense (5,107,088) (5,107,088)
Total Non-Operating Revenues(Expenses) (4,695,145) 1,235 (4,693,910) 664
Income(loss)before contributions and transfers (3,103,710) 346,145 (2,757,565) (2,169,310)
Capital contributions 17,677,185 17,677,185
Transfers in 235,491 235,491 2,490,178
Transfers out (2,119,2851 (146,794) (2,266,079)
Change in net position 12,689,681 199,351 12,889,032 320,868
Total net position-beginning,as restated 191,948,811 212,401 192,161,212 653,454
Total net position-ending $ 204,638,492 $ $205 $ 974322
See Notes to Financial Statements.
32
CITY OF PEARLAND,TEXAS Page 1 of 2
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30,2014
Governmental
Business-type Activities-Enterprise Funds Activities-
\Aatcr and Sesser Solid Waste Internal
Fund Fund Total Service Fund
Cash Flows from Operating Activities
Receipts from customers and users $ 28,846,378 $ 7,221,014 $ 36,067,392 $ 5,549,746
Disbursed for personnel services (5,506,476) (5,506,476)
Disbursed for goods and services (13,332,732) (7,055,799) (20,388,531) (7,756,583)
Net cash provided(used)by operating activities 10,007,170 165,215 10,172,385 (2,206,837)
Cash Flows from Noncapital Financing Activities
Transfers from funds 235,491 235,491 2,490,178
Transfers to other funds (2,119,285) (146,794) (2,266,079)
Cash received from non-operating revenues 274,466 274,466
Net cash provided by(used by)noncapital
financing activities (1,609,328) (146,794) (1,756,122) 2,490,178
Cash Flows from Capital and Related Financing Activities
Proceeds from the sale of equipment 60,317 60,317
Capital grants and contributions 8,491,718 8,491,718
Principal payments on debt (4,920,000) (4,920,000)
Principal payments on leases (91,844) (91,844)
Interest paid (5,107,088) (5,107,088)
Acquisition and construction of capital assets (7,015,557) _ (7,015,557)
Net cash used by capital and related financing
activities (8,582,454) (8,582,454)
Cash Flows from Investing Activities
Purchase of investments (4,968,770) (247,635) (5,216,405)
Interest received 137,477 1,235 138,712 664
Net cash provided by(used by)investing activities (4,831,293) (246,400) (5,077,693) 664
Net increase(decrease)in cash and equivalents (5,015,905) (227,979) (5,243,884) 284,005
Cash and equivalents,beginning 22,350,977 1,098,976 23449,953 854,348
Cash and equivalents,end $ 17,335.072 $ 870.997 S 18,206,069 $ 1,138,353
Unrestricted cash and equivalents $ 1,081,007 $ 870,997 $ 1,952,004 $ 1,138,353
Restricted cash and equivalents 16,254,065 16,254,065
$ 17,335,072 $ 870.997 S 18,206,069 S 1,138,353
See Notes to Financial Statements.
33
CITY OF PEARLAND,TEXAS Page 2 of 2
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended September 30,2014
Governmental
Business-type Activities-Enterprise Funds Activities-
Water and Sewer Solid Waste Internal
Fund Fund Total Service Funds
Reconciliation of operating income to net cash
provided by operating activities
Operating income(loss) $ 1,591,435 ` 344,910 $ 1,936,345 S (2,169,974)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization 9,629,848 9,629,848
(Increase)decrease in accounts receivable (220,881) 212,540 (8,341) (76,087)
(Increase)decrease in prepaid expenses 384 384 10,086
Increase(decrease)in accounts payable (1,141,062) (392,235) (1,533,297) 29,138
Increase(decrease)in salaries payable 8,961 8,961
Increase(decrease)in customer deposits 138,485 138,485
Net cash provided by(used by)operating activities $ 10.007.170 > 165,215 S 10,172.355 S (2.206.537)
Summary of non-cash transactions
Contributed capital assets $ 9,185,467 $ $ 9,185,467 $
See Notes to Financial Statements.
34
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1 -Summary of Significant Accounting Policies
The City of Pearland, Texas (the "City") was incorporated in December 1959 and adopted a "Home Rule
Charter"February 6, 1971.The Charter,as amended,provides for a Council-Manager form of government and
provides services authorized by its charter. Presently, these services include police, fire and emergency
medical, water and sewer services, drainage, sanitation, building and code inspection, planning, zoning,
engineering, street repair and maintenance,park maintenance, recreational activities for citizens, and general
administrative services. Fire protection is provided through a combination full-time/volunteer part-
time/volunteer department.The City is governed by an elected mayor and five-member Council.In May 2014,
the citizens voted to amend the City Charter to increase the size of City Council from five councilmembers to
seven councilmembers over a period of three years.
The Mayor and all members are elected at large.The Mayor is allowed to vote only in case of a tie vote.The
Mayor and each Council member hold office for a period of three years and until his/her successor is elected
and qualified. Council members shall be limited to two full consecutive terms of office and there is no
limitation on the office of the Mayor. The City Manager is appointed by Council and is responsible for
implementation of Council policy,execution of the laws,and all day-to-day operations of the City.
A. Financial Reporting Entity
The City is an independent political subdivision of the State of Texas governed by an elected council and a
mayor and is considered a primary government. As required by accounting principles generally accepted in
the United States of America, these financial statements have been prepared based on considerations
regarding the potential for inclusion of component units, which are other entities or organizations that are
financially accountable to the City. Blended component units are component units that are considered so
closely related to the legal entity that the blended component unit funds appear as id the funds are integral
parts of the primary government. The City's financial statements include the following blended component
units: the Pearland Economic Development Corporation (PEDC); the Tax Increment Reinvestment Zone
(TIRZ #2); and the Development Authority of Pearland (DAP). No other entities have been included in
the City's reporting entity. Additionally, as the City is considered a primary government for financial
reporting purposes,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 governments. Additionally 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. The component units discussed below are included in
the City's reporting entity because of the significance of their operational or fmancial relationships with the
City.The component units do not issue separate financial statements.
35
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
A. Financial Reporting Entity(continued)
Blended Component Units:
Pearland Economic Development Corporation(PEDC)
In 1995, the citizens of Pearland established the Pearland Economic Development Corporation (PEDC) to
help the citizens and public officials of Pearland attract new businesses and to help existing businesses to
expand.The mechanism to fund the operations of the corporation is through a sales tax levy at a rate of one-
half of one percent(1/2%). The PEDC is fiscally dependent upon the primary government because,besides
appointing the Board,the City Council also must approve the PEDC's budget and any debt issuances.
Tax Increment Reinvestment Zone(TIRZ#2)
In 1998,the Tax Increment Reinvestment Zone(TIRZ#2)was established for a period of 30 years or until
dissolved by the City. The TIRZ #2 provides tax-assisted property development and/or redevelopment in
specific geographic areas in accordance with applicable state laws. Besides appointing Board members,the
City Council must also approve any debt issuances done on behalf of the TIRZ. A major land owner within
the City sits on the Board of Directors for the TIRZ#2.
Development Authority of Pearland
In 2004,the City created the Development Authority of Pearland to provide financing for the development of
the TIRZ#2.Proceeds from bond sales are to be used to reimburse developers and fund a debt service reserve.
Besides appointing Board members,the City Council must also approve any debt issuances done on behalf
of the Development Authority.
B. Government-wide and Fund Financial Statements
The government-wide financial statements(i.e.,the Statement of Net Position and the Statement of Changes
in Net Position)report information about the City as a whole. These statements include all activities of the
primary government and its component units. For the most part, the effect of interfund activity has been
eliminated from the government-wide statements. Exceptions to this general rule are charges between the
City's business-type and governmental funds.Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities,which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1)charges to customers or applicants who purchase,use or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
36
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
C. Measurement Focus,Basis of Accounting and Financial Statement Presentation
The government-wide fmancial statements and all proprietary funds are reported using the economic
resources measurement focus and the accrual basis of accounting.Revenues are recognized when earned and
expenses are recorded when a liability is incurred,regardless of the timing of the related cash flows.With this
measurement focus, all assets and all liabilities associated with the operations of these activities are
included on the statements of net position. Proprietary fund-type operating statements present increases
(i.e., revenues) and decreases (i.e.,expenses) in net total assets. Furniture and equipment capitalized in the
Proprietary Fund Types are valued at cost.
The governmental fund fmancial statements are presented on a current financial resources measurement
focus and modified accrual basis of accounting. This is the manner in which these funds are normally
budgeted. Revenues are recognized as soon as they are both measurable and available. Measurable means
that the amount of the transaction can be determined and available means collectible within the current period
or soon enough thereafter to pay liabilities of the current period.For this purpose,the City considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period. Revenues
susceptible to accrual include property taxes, sales and use taxes, franchise fees, charges for services and
interest on temporary investments. Other receipts become measurable and available when cash is received
by the government and are recognized as revenue at that time.
Under modified accrual accounting, expenditures are recognized in the accounting period in which the
liability is incurred, if measurable, except for interest on general long-term debt, which is recognized when
due. Since the governmental fund statements are presented on a different measurement focus and basis of
accounting than the government-wide statements'governmental column,a reconciliation is presented which
briefly explains the adjustments necessary to reconcile fund-based financial statements with the
governmental column of the government-wide presentation.
In the fund fmancial statements,the accounts of the City are organized on the basis of funds,each of which is
considered a separate accounting entity.The operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or
expenses,as appropriate.Following is a description of the various funds:
Governmental funds are those funds through which most governmental functions are typically financed. The
City reports the following major governmental funds:
The General Fund is used to account for all financial transactions not properly includable in other funds.
The principal sources of revenues include local property taxes, sales and franchise taxes, licenses and
permits, fines and forfeitures, and charges for services. Expenditures include general government,
administrative services,public works,parks and recreation,community development,and public safety.
The Debt Service Fund is used to account for the payment of interest and principal on all general
obligation bonds and other governmental long-term debt of the City.The primary source of revenue for debt
service is local property taxes.The Debt Service Fund is considered a major fund for reporting purposes.
The Pearland Economic Development Corporation fund is used to account for the revenues and
expenditures associated with the half-cent sales tax for economic development approved by the voters in
1995. Use of funds are governed by State Law. The Pearland Economic Development Corporation is
considered a major fund for reporting purposes.
37
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
C. Measurement Focus,Basis of Accounting and Financial Statement Presentation(continued)
The Tax Increment Reinvestment Zone #2 fund is used to account for the incremental property tax
revenues in the specific geographical area and use thereof from the participating taxing entities in the
Zone.The Tax Increment Re-investment Zone#2 is considered a major fund for reporting purposes.
The Development Authority of Pearland fund is used to account for the fmancing of the development of
the TIRZ#2.The Development Authority of Pearland is considered a major fund for reporting purposes.
The City's Business type activities consist of the following funds:
The Enterprise Funds are used to account for the operations that provide water and sewer utility services as
well as solid waste collection services to the public. The services are financed and operated in a manner
similar to private business enterprises where the intent of the governing body is that the costs (expenses
including depreciation) of providing goods or services to the general public on a continuing basis will be
financed or recovered primarily through user charges.
Additionally, the city maintains an Internal Service Fund used to account for the financing of goods or
services provided by one department or agency to other departments or agencies of the City on a cost-
reimbursement basis. Services provided by the Internal Service Fund include property and liability
insurance coverage and employee health benefits. The Internal Service Fund is included in governmental
activities for government-wide reporting purposes.
All assets, liabilities, equities, revenues, expenses and transfers relating to the government's business
activities are accounted for through proprietary funds. The measurement focus is on determination of net
income,financial position and cash flows.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City's water and sewer function and
various other functions of the government. Elimination of these charges would distort the direct costs and
program revenue reported for the various functions concerned.
Amounts reported as program revenues include: (1)charges to customers or applicants for goods,services,or
privileges provided,(2)operating grants and contributions,and(3)capital grants and contributions,including
special assessments. Internally dedicated resources are reported as general revenues rather than as program
revenue.Likewise,general revenue includes all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating revenues of the City's Enterprise
Fund are charges to customers for sales and services. Operating expenses for Enterprise Funds include the
cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and
expenses not meeting this definition are reported as nonoperating revenue and expense.
38
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
D. Fund Balance Working Capital Policies
As of these fmancial statements, the City has adopted GASB Statement No. 54, which redefined how
fund balances of the governmental funds are presented in the financial statements. Fund balances are
classified as follows:
Nonspendable — Amounts that cannot be spent either because they are not in a spendable form or
because they are legally or contractually required to be maintained intact.
Restricted—Amounts that can be spent only for specific purposes because of the City Charter, City
Code,State or Federal laws,or externally imposed conditions by grantors or creditors.
Committed—Amounts than can be used only for specific purposes determined by ordinances passed
by City Council, the City's highest level of decision making authority. Commitments may be
modified or rescinded only through ordinances approved by City Council.
Assigned — Amounts that are intended to be used for a specific purposes, but do not meet the
defmition of restricted or committed fund balance. Under the City's policy,amounts can be assigned
by the City's Director of Finance.
Unassigned— Amounts that are available for any purpose. Positive amounts are reported only in the
General Fund.
City Council has authorized the Director of Finance as the official authorized to assign fund balance to a
specific purpose. The City shall maintain the fund balance and working capital of the various operating
funds at the following levels:
General Fund Unassigned Fund Balance
The City shall maintain the General Fund unassigned fund balance equivalent to 2 months of
recurring operating expenditures,based on current year expenditures. If the fund balance exceeds this
amount, funding non-recurring expenditures in the following fiscal year may be used to draw down
the balance.
Water/Sewer Unreserved Working Capital
The City shall maintain a working capital sufficient to provide for reserves for emergencies and
revenue shortfalls. A cash equivalent operating reserve will be established and maintained at 25% of
the current year's budget appropriation for recurring operating expenses.
The cash operating reserve is derived by dividing the total cash equivalents balance by recurring
operating expenses.
Use of Fund Balance/Working Capital
Fund balance/Working Capital shall only be used for emergencies, non-recurring
expenditures/expenses or major capital purchases that cannot be accommodated through current year
savings. Should such use reduce balances below the level established as the objective for that fund,
restoration recommendations will accompany the request/decision to utilize said balances.
Debt Service Fund Total Fund Balance
The City shall maintain the debt service fund balance at 10%of annual debt service requirements OR
a fund balance reserve as required by bond ordinances,whichever is greater.
39
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies (continued)
D. Fund Balance Working Capital Policies(continued)
Internal Service Fund Unrestricted Net Position
The Internal Service Fund accounts for uninsured and deductible claims for the City's property and
liability insurance. Claims cannot be reasonably predicted and budgeted for; therefore the fund will
maintain a balance that approximates the prior average annual expense for the last three years,
excluding extra-ordinary expenses in the fund.
The Internal Service Fund is funded through City and employee contributions. Estimated costs shall
be determined during each budget year and the contributions adjusted accordingly. There is no
minimum balance for this fund as it relates to employee benefits.
Economic Development Corporation
As sales tax revenue fluctuates due to changes in economic conditions, the PEDC shall maintain a
fund balance of no less than 10%of budgeted sales tax revenues.
Water/Sewer Revenue Debt Coverage Reserves
Revenues shall be maintained at 1.15 times coverage in a fiscal year where the water/sewer fund is
not issuing additional debt and 1.4 times coverage in a year where debt is anticipated to be issued.
Bond Issuance Reserves
Debt service reserves should be maintained for each bond issue as required by bond covenants.
Contingency Fund
Pursuant to the City Charter, a provision shall be made within the annual budget for a contingency
fund in an amount not more than seven percent of the total budget(General Fund) to be used in case
of unforeseen items of expenditure.
E. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition. For the purpose of
the statement of cash flows, the Proprietary Fund Types consider temporary investments with maturity of
three months or less when purchased to be cash equivalents.
The City pools cash resources of its various funds to facilitate the management of cash. Cash applicable to a
particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current
operating requirements. Cash in excess of current requirements is invested in various interest-bearing
accounts and securities and disclosed as part of the City's investments.
The City pools excess cash of the various individual funds to purchase these investments. These pooled
investments are reported in the combined balance sheet as Investments in each fund based on each fund's
share of the pooled investments. Interest income is allocated to each respective individual fund, monthly,
based on their respective share of investments in the pooled investments.
40
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1-Summary of Significant Accounting Policies(continued)
F. Investments
Investments consist of United States (U.S.) Government Agency securities and Certificates of Deposit
with original maturities greater than three months from the date of acquisition. The City reports all
investments at fair value based on quoted market prices at year-end date.
G. Receivables
All receivables are reported at their gross value,and where appropriate,are reduced by the estimated portion
that is expected to be uncollectible. Trade accounts receivable in excess of 120 days comprise the trade
accounts receivable allowance for uncollectibles.
H. Due to and Due from Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded by all funds affected
in the period in which the transactions are executed. These receivables and payables are classified as "due
from other funds" or"due to other funds". Interfund receivables and payables which are not expected to be
paid within 12 months are classified as loans from/loans to other funds.
I. Inventories and Prepaid Items
Inventory,which consists of fuel and auto parts for use in the City's vehicles,is stated at cost(first-in,first-
out method).Expenditures are recognized as the fuel and auto parts are consumed rather when purchased.
J. Restricted Assets
Certain proceeds of the Water and Sewer Enterprise Fund revenue bonds and certain resources set aside for
their repayment are classified as restricted assets on the balance sheet because their use is limited by applicable
bond covenants. Certain resources are also set aside for repayment of Pearland Economic Development
Corporation Bonds and are reported as restricted assets.
K. Capital Assets
Capital assets which include property, plant, equipment and infrastructure, are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. The City
defines capital assets as assets with an initial, individual cost of more than$5,000 and an estimated useful
life of three years or more. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets' lives are not capitalized.
41
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
K. Capital Assets(continued)
Property,plant,and equipment are depreciated using the straight-line method over the following useful lives:
Asset Years
Buildings and improvements 10-45
Machinery and equipment 3-15
Infrastructure 10-50
Intangible Assets-Water Rights 25
L. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation, sick and holiday pay
benefits.
Employees hired prior to October 1,2005, earn vacation leave at the rate of 15 days per year from 1 to 15
years of service,20 days per year for service of 16 to 19 years,and 25 days per year for service of 20 years or
more. Employees, who are not classified and are hired after October 1, 2005, earn vacation at a rate of 10
days per year from 1-6 years of service, 15 days per year for 7-15 years of service and 20 days for 16 and
over years of service. Effective October 1,2005,employees are no longer able to carry over unused vacation
from one year to the next with the exception of police department personnel in classified positions. Certified
police and firefighter personnel earn 15 days of vacation after 1 year and 20 days of vacation after 16 years.
Employees are required to use their vacation in the year it is earned. Employees who are unable to use their
vacation due to departmental scheduling or staffing problems, may, with the City Manager's approval,
receive compensation for half of the remaining balance up to a maximum of forty(40)hours.
City employees receive 12 paid holidays per year. Employees required to work on a City-observed holiday
may be paid or may elect to receive compensatory time off for the holiday. Overtime is earned at one and
one-half times the regular rate of pay for non-exempt employees. Employees may be paid or receive
compensatory time.The maximum accrual for overtime is 120 hours,including employees involved in public
safety.
All sick leave benefits are accumulated and paid to employees upon separation from the City not to exceed
720 hours for employees hired prior to July 24, 2006, and 360 hours for employees hired after. Vacation,
sick and holiday pay benefits are accrued when incurred in the government-wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if they have
matured,for example,as a result of employee resignations and retirements.
M. Estimates
The preparation of financial statements,in conformity with generally accepted accounting principles,requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of
revenues and expenditures during the reporting period.Actual results could differ from those estimates.
N.Comparative Data and Reclassifications
Comparative data for the prior year have been presented in certain sections of the accompanying financial
statements in order to provide an understanding of changes in the City's financial position and operations.
Also,certain amounts presented in the prior year data have been reclassified in order to be consistent with
current year's presentation.
42
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 1 -Summary of Significant Accounting Policies(continued)
O.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element,deferred outflows of resources,
represents a consumption of net position or fund balance that applies to a future period(s) and thus, will
not be recognized as an outflow of resources(expense/expenditure)until then.The City has only one item
that qualifies for reporting in this category. It is the deferred charge on refunding reported in the
government-wide statement of net position. A deferred charge on refunding results from the difference in
the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized
over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position or fund balance that applies to a future period(s)and so will not
be recognized as an inflow of resources (revenue) until that time. The City has only one type of item,
which arises only under a modified accrual basis of accounting that qualifies for reporting in this
category. Accordingly,the item,unavailable revenue, is reported only in the governmental funds balance
sheet.
Note 2-Deposits(Cash) and Investments
Authorization for Deposits and Investments
The Texas Public Funds Investment Act(PFIA),as prescribed in Chapter 2256 of the Texas Government
Code,regulates deposits and investment transactions of the City.
In accordance with applicable statutes, the City has a depository contract with an area bank(depository)
providing for interest rates to be earned on deposited funds and for banking charges the City incurs for
banking services received. The City may place funds with the depository in interest and non-interest
bearing accounts. State law provides that collateral pledged as security for bank deposits must have a
market value of not less than the amount of the deposits and must consist of: (1)obligations of the United
States or its agencies and instrumentalities;(2)direct obligations of the State of Texas or its agencies; (3)
other obligations, the principal and interest on which are unconditionally guaranteed or insured by the
State of Texas; and/or(4) obligations of states,agencies, counties,cities, and other political subdivisions
of any state having been rated as to investment quality by a nationally recognized investment rating firm
and having received a rating of not less than A or its equivalent. City policy requires the collateralization
level to be at least 102%of market value of principal and accrued interest.
The Council has adopted a written investment policy regarding the investment of City funds as required
by the Public Funds Investment Act (Chapter 2256, Texas Government Code). The investments of the
City are in compliance with the City's investment policy. The City's investment policy is more restrictive
than the PFIA requires. It is the City's policy to restrict its direct investments to obligations of the U.S.
Government or U.S. Government Agencies,obligations of states,counties,and cities, fully collateralized
certificates of deposit, bankers' acceptances, mutual funds, repurchase agreements and local government
investment pools. The maximum maturity allowed is five years from date of purchase. The City's
investment policy does not allow investments in collateralized mortgage obligations.
43
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits(Cash)and Investments(continued)
Deposit and Investment Amounts
The City's cash and investments are classified as: cash and cash equivalents, investments, and restricted
cash and investments. The cash and cash equivalents include cash on hand, deposits with financial
institutions, and short-term investments, which have maturities at purchase of less than three months,
consisting mainly of certificates of deposit. The restricted cash and investments are assets restricted for
specific use. The restricted cash and investments include cash on deposit with financial institutions. For
better management of cash, the City pools the cash, based on the City's needs, into either bank/sweep
accounts,or in longer-term investments in U.S. Government Securities. However,each fund's balance of
cash and investments is maintained in the books of the City.
The deposit and investment policies for the Pearland Economic Development Corporation, TIRZ No. 2
and Development Authority of Pearland are substantially the same as the City.
The following schedule shows the City's recorded cash and investments at year-end:
Total Fair Value
Cash deposits $ 61,453,498
Temporary Investments
FAMC discount note 2,005,806
FFCB discount note 5,015,070
FHLB discount note 5,000,892
FHLMC discount note 5,997,927
FNMA discount note 6,460,061
Certificates of deposit 22,843,348
$ 108,776,602
Quoted market prices are the basis of the fair value for U.S.Treasury and Agency securities. The amount
of increase or decrease in the fair value of investments during the current year is included in the City's
investment income as follows:
Total Fair Value
Interest income $ 445,531
Unrealized gain(loss)on
temporary investments (52,591)
Investment earnings $ 392,940
44
CITY OF PEARLAND,TEXAS
•
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits(Cash)and Investments(continued)
Interest Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
generally accepted accounting principles:
Weighted
Average
Maturity
Total Fair Value (days)
Temporary Investments
FAMC discount note $ 2,005,806 1,464
FFCB discount note 5,015,070 870
FHLB discount note 5,000,892 1,013
FHLMC discount note 5,997,927 885
FNMA discount note 6,460,061 985
Certificates of deposit 22,843,348 554
$ 47,32321.04
Portfolio weighted average maturity 775
The City's investment policy specifies a maximum weighted average maturity for the portfolio of 900
days or 30 months based on the stated maturity date of the investments. When including cash investments
the weighted average maturity for the City is 338 days.
To the extent possible, the City attempts to match investments with anticipated cash flow requirements.
The City does not directly invest in securities with a stated maturity date more than five years or 1,825
days from date of purchase. The settlement date is considered the date of purchase.
Concentration of Credit Risk
With the exception of U.S. Treasury Securities and interest-bearing checking accounts that are fully
collateralized,no more than 75 percent of the City's total investment portfolio will be invested in a single
security type. As of September 30, 2014, the City had investments in U.S. Agency securities that
exceeded five percent of the total investment portfolio at year-end.
Percentage
of Total
Investment
Investment Type Total Fair Value Portfolio
FAMC discount note $ 2,005,806 4%
FFCB discount note 5,015,070 11%
FHLB discount note 5,000,892 10%
FHLMC discount note 5,997,927 13%
FNMA discount note 6,460,061 14%
Certificates of deposit 22,843,348 48%
Total $ 47,323,104 100%
s- s
45
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 2-Deposits(Cash)and Investments(continued)
Credit Risk
Federal National Mortgage Association, Federal Home Loan Bank, Federal Home Loan Mortgage
Corporation, Federal Farm Credit Bank and the Federal National Mortgage Association Discount Notes
were rated AA+by Standard&Poor's,AAA by Fitch Ratings,and Aaa by Moody's Investors Service.
All credit ratings meet acceptable levels required by guidelines prescribed by both the PFIA and the
City's investment policy. A public fund investment pool must be continuously rated no lower than AAA
or AAAm or no lower than investment grade by at least one nationally-recognized rating service and have
a weighted average maturity no greater than 90 days. Investments with minimum required ratings do not
qualify as authorized investments during the period the investment does not have the minimum rating.
Restricted Assets
The Enterprise Funds have restricted certain cash and investments for customer deposits, reserve and
emergency expenditures, capital improvements, cash restricted for others, and revenue bond debt service.
Because of certain bond covenants, the Enterprise Fund is required to maintain prescribed amounts of
resources that can be used only to service outstanding debt. Some of the proceeds from debt or from funds
received from acquisition of Municipal Utility Districts are restricted for use on capital projects.
Revenue bond debt service $ 2,622,698
Customer deposits 3,161,497
Capital improvements 17,913,990
Total $ 23,698,185
Note 3-Receivables
Receivables at September 30,2014,consisted of the following:
Primary Government:
Governmental Funds:
Pe arland
Economic Non-major
Debt Service Development Governmental
General Fund Fund Corporation Funds Total
Receivables
Property taxes,including
penalties and interest $ 511,630 $ 843,729 $ $ $ 1,355,359
Lease receivable 8,171,947 8,171,947
Sales and other taxes 4,553,628 1,569,076 477,251 6,599,955
Interest 20,345 6,102 25,265 4,602 56,314
Other 591,069 2,593,363 2,771,627 5,956,059
Allowance for
uncollectibles (8,159) (13,427) (21,577)
S 5,668.522 S 9,008,351 S 4,187,704 S 1,251.480 S 22.1 18,057
46
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 3-Receivables(continued)
Enterprise Funds:
Water and Solid Waste Internal
Sewer Fund Fund Service Fund Total
Receivables
Customer accounts $ 2,743,178 $ 662,843 $ $ 3,406,021
Interest 53,578 8 53,586
Other 9,992 139,824 149,816
Allowance for
uncollectibles (60,980) (53,049) (114,029)
$ 2,745,768 609,802 139,824 $ 3,495,394
Governmental funds report receivables for revenues that are not considered to be available to liquidate
liabilities of the current period. At the end of the current fiscal year,the various components of unavailable
and unearned revenue reported in the governmental funds were as follows:
Unavailable Unearned
Delinquent property taxes receivable -general fund $ 467,020 $
Delinquent property taxes receivable- debt service fund 749,318
Lease revenues-principal 6,382,928
Street assessments 2,527,689
Other 6,300,442
Lease interest revenues 1,789,020
Grants and revenues prior to meeting all eligibility requirements 1,773,256
Total S 16,427.397 $ 3,562,276
Property Taxes
Property taxes are levied by October 1 in conformity with Subtitle E,Texas Property Tax Code. Taxes are
due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in
which imposed. On January 1 of each year,a tax lien attaches to property to secure the payment of all taxes,
penalties, and interest ultimately imposed. The Central Appraisal District ("CAD") of Brazoria County,
Harris County, and Fort Bend County, Texas, establishes appraised values. Taxes are levied by the City
Council based on the appraised values and operating needs of the City. The City contracts billing and
collection of tax levies with the Brazoria County Tax Assessor-Collector.
47
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 4-Capital Assets
A summary of changes in the primary government's capital assets for the year ended September 30, 2014,
follows:
Balance Balance
September 30, September 30,
2013 Increases (Decreases) 2014
Governmental Activities
Capital assets not being depreciated:
Land $ 31,264,285 $ $ $ 31,264,285
Construction in progress 23,306,457 (3,331,859) 19,974,598
Total capital assets not being depreciated 54,570,742 (3,331,859) 51,238,883
Other capital assets:
Infrastructure 862,884,771 38,545,615 (3,092,313) 898,338,073
Buildings and improvements 97,930,523 4,742,752 102,673,275
Machinery and equipment 15,031,317 3,278,577 (898,094) 17,411,800
Furniture and fixtures 4,699,729 838,630 (25,500) 5,512,859
Total other capital assets 980,546,340 47,405,574 (4,015,907) 1,023,936,007
Less accumulated depreciation for:
Infrastructure (254,945,190) (25,595,727) 68,718 (280,472,199)
Buildings and improvements (20,031,360) (3,389,166) (23,420,526)
Machinery and equipment (8,865,997) (1,334,287) 878,690 (9,321,594)
Furniture and fixtures (2,236,114) (513,564) 25,500 (2,724,178)
Total accumulated depreciation (286,078,661) (30,832,744) 972,908 (315,938,497)
Other capital assets,net 694,467,679 16,572,830 (3,042,999) 707,997,510
Totals $ 749,038,421 $ 16,572,830 $ (6,374,858) $ 759,236,393
Balance Balance
September 30, September30,
2013 Increases (Decreases) 2014
Business-type Activities
Capital assets not being depreciated:
Land $ 3,796,382 $ $ $ 3,796,382
Construction in progress 8,918,035 590,829 9,508,864
Total capital assets not being depreciated 12,714,417 590,829 13,305,246
Other capital assets:
Water and sewer system 300,748,324 16,324,231 317,072,555
Buildings and improvements 31,256,473 31,256,473
Machinery and equipment 3,706,656 283,613 (194,210) 3,796,059
Furniture and factures 106,127 7,274 113,401
Contractual water rights 34,511,428 34,511,428
Total other capital assets 370,329,008 16,615,118 (194,210) 386,749,916
Less accumulated depreciation for:
Water and sewer system (88,082,289) (7,227,723) (95,310,012)
Buildings and improvements (4,088,060) (729,977) (4,818,037)
Machinery and equipment (2,306,076) (365,846) 164,668 (2,507,254)
Furniture and factures (69,517) (13,536) (83,053)
Contractual water rights (7,284,417) (1,380,457) (8,664,874)
Total accumulated depreciation (101,830,359) (9,717,539) 164,668 (111,383,230)
Other capital assets,net 268,498,649 6,897,579 (29,542) 275,366,686
Totals S 281,213,066 $ 7488,408 $ (29.542) S 288,671,932
48
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 4-Capital Assets(continued)
Depreciation was charged to programs as follows:
General government $ 786,038
Public safety 2,140,277
Public works 25,367,059
Community services 224,598
Parks and recreation 2,314,772
Total Governmental Activity $ 30,832,744
Water and sewer $ 9,717,539
Total Business-Type Activity $ 9,717,539
The City had active construction projects as of September 30, 2014. The projects included various
improvements to streets,drainage and facilities as well as and water and sewer improvements. At year-
end,the City's contractual commitments on projects were as follows:
Total In Remaining
Project Description Contract Progre ss Commitment
Drainage Improvement $ 15,686,274 $ 4,246,926 $ 11,439,348
Building Improvements 17,152,221 1,459,540 15,692,681
Street Improvement 62,818,725 11,928,505 50,890,220
Park Improvements 11,116,593 2,339,627 8,776,966
Total Governmental Activities 106,773,813 19,974,598 86,799,215
Water and Sewer Improvements 24,161,067 9,508,864 14,652,203
Total Primary Government $ 130,934.880 S 29,483,462 $ 101,451,418
Note 5-Long-Term Debt
A. General Obligation Bonds and Certificates of Obligation
The City issues general obligation bonds and certificates of obligation,and upon annexation and dissolution of
Municipal Utility Districts,assumes unlimited tax and revenue obligations.The assumed obligations were used
to acquire and construct major capital facilities. General obligation bonds, certificates of obligation, and
assumed obligations from dissolved and annexed areas are for both governmental and business-type activities.
The bonds are reported in the Proprietary Funds only if they are expected to be repaid from proprietary
revenues.The general long-term bonds,certificates of obligation and assumed obligations are paid through the
Debt Service Fund from tax revenues.
The City's component units, which are considered blended components units, have revenue bonds used to
acquire and construct or to reimburse developers for major capital improvements. Revenue bonds are paid
through the Pearland Economic Development Corporation from sales tax and through the Development
Authority of Pearland from property tax increment.
49
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. General Obligation Bonds and Certificates of Obligation(continued)
The City issued $40,410,000 of Permanent Improvement and Refunding Bonds, Series 2014 dated
September 1, 2014. Proceeds of $31,430,000 from the sale of the bonds were used to refund certain
obligations of the City and to pay the costs associated with the sale and issuance of the bonds. As a result,
the refunded portions of the bonds are considered defeased and the liability has been removed from the
general long-term debt of the City. The reacquisition price exceeded the net carrying amount of the old
debt resulting in a loss on the refunding of$1.8 million.This amount is being netted against the new debt
and amortized using the straight-line method over the remaining life of the refunded debt. This refunding
resulted in an economic gain/present value of $2.9 million. The premium of $4.8 million is being
amortized over the life of the bonds using the straight-line method.
The City issued$9,150,000 of Tax Increment Contract Revenue Bonds, Series 2013 dated November 26,
2013. Proceeds from the sale of the bonds were used to reimburse developers and to pay the costs
associated with the sale and issuance of the bonds.
The following is a summary of changes in the City's total governmental long-term liabilities for the year
ended September 30, 2014. In general, the City uses the General and Debt Service funds as well as the
Economic Development Corporation and Development Authority to liquidate governmental long-term
liabilities.
Restated
Balance Balance Amounts
September 30, September 30, Due Within
2013* Additions (Reductions) 2014 One Year
Governmental Activities
Bonds payable:
• General obligation bonds $ 230,040,000 $ 40,410,000 $ (33,720,000) $ 236,730,000 $ 8,300,000
Certificates of obligation 64,690,000 (8,185,000) 56,505,000 2,745,000
Sales tax revenue bonds 23,610,000 (920,000) 22,690,000 965,000
Tax increment revenue bonds 51,515,000 9,150,000 (3,230,000) 57,435,000 3,250,000
Unamortized premiumrl(discount) 6,158,967 4,783,606 (820,217) 10,122,356
Total bonds payable 376,013,967 54,343,606 (46,875,217) 383,482,356 15,260,000
Other liabilities:
Obligations under capital leases 3,681,366 1,852,939 (1,190,090) 4,344,215 1,208,438
Compensated absences 5,006,729 3244,188 (2,568,860) 5,682,057 801,370
Other post-employment benefits 1,955,154 (233,904) 1,721,250
Total Governmental Activities S 386.657216 S 59.440.733 S (50.868,0711 $ 395,229,878 S 17269,808
*As Restated
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current
period, and accordingly, are not reported as fund liabilities in the governmental funds. Interest on long-
term debt is not accrued in governmental funds,but rather is recognized as an expenditure when due.
The full amount estimated to be required for debt service on general obligation debt is provided by(1)the debt
service portion of the tax levy;(2)interest earned in the Debt Service Fund;and(3)transfers from the Water
and Sewer Enterprise Fund. Transfers from the Enterprise Funds are approved at the discretion of City
Council and are not intended to service a specific bond series.
50
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. General Obligation Bonds and Certificates of Obligation(continued)
A summary of the terms of general obligation bonds and certificates of obligation,as of September 30,2014,
follows:
Original Interest Debt
Series Issue Matures Rate(%) Outstanding
General Obligation Bonds
Permanent Improvement and Refunding Bonds,Series 2005 37,015,000 2029 3.25-5.00 $ 13,545,000
Permanent Improvement and Refunding Bonds,Series 2006 32,165,000 2029 4.00-5.00 9,955,000
Permanent Improvement and Refunding Bonds,Series 2007 69,640,000 2032 4.00-5.00 64,115,000
Permanent Improvement,Series 2008 22,835,000 2032 4.50-5.50 21,360,000
Permanent Improvement and Refunding Bonds,Series 2009 16,735,000 2034 2.00-5.00 14,985,000
Permanent Improvement,Series 2010A 12,415,000 2035 3.00-4.00 10,995,000
Permanent Improvement Refunding,Series 2010B 1,630,000 2018 2.00-4.00 780,000
Permanent Improvement,Series 2011 5,400,000 2036 2.125-4.125 5,055,000
Permanent Improvement and Refunding Bonds,Series 2012 43,575,000 2029 3.00-5.00 43,575,000
Permanent Improvement Bonds,Series 2013 43,575,000 2029 3.00-5.00 9,040,000
Permanent Improvement and Refunding Bonds,Series 2014 40,410,000 2034 2.00-5.00 40,410,000
Annexed Municipal Utility District Bonds
BC MUD 1 Series 2007 1,940,000 2030 3.75-4.35 535,000
BC MUD 4 Series 2011 2,640,000 2032 2.50-5.00 2,380,000
Total General Obligation Bonds S 236.730.000
Certificates of Obligation
Certificates of Obligation,Series 2004 21,000,000 2028 4.00-5.25 $ 710,000
Certificates of Obligation,Series 2006 9,700,000 2029 3.65-4.68 3,995,000
Certificates of Obligation,Series 2007 23,250,000 2032 3.25-5.25 22,150,000
Certificates of Obligation,Series 2008 9,000,000 2032 3.75-5.00 8,325,000
Certificates of Obligation,Series 2009 8,520,000 2034 2.25-5.00 7,605,000
Certificates of Obligation,Series 2009A 12,145,000 2029 2.00-4.50 9,585,000
Certificates of Obligation,Series 2011 2,095,000 2021 2.09 1,465,000
Certificates of Obligation,Series 2013 2,745,000 2038 3.00-4.625 2,670,000
Total Certificates of Obligation S 56,505,000
A summary of the terms of the revenue bonds recorded as long-term liabilities in the Pearland Economic
Development Corporation and Development Authority of Pearland as of September 30,2014,is as follows:
Original Interest Debt
Series Issue Matures Rate(%) Outstanding
Pearland Economic De.e!opine nt Corporation
Sales Tax Revenue Bonds,Series 2005 $ 10,590,000 2026 2.30-4.42 $ 7,095,000
Sales Tax Revenue Bonds,Series 2006 10,235,000 2030 3.66-4.75 8,860,000
Sales Tax Revenue Bonds,Series 2010 7,685,000 2030 variable-resets 6,735,000
every 6 months
Development Authority of Pearland
Tax Increment Revenue Bonds,Series 2012 56,915,000 2029 3.07* 48,715,000
Tax Increment Revenue Bonds,Series 2013 9,150,000 2029 3.77 8,720,000
Total Component Unit Long-Term Debt S S0,125,000
*Fixed for 10 years,then rate changes to be 65%of LIBOR,not to exceed 6.0%
51
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. General Obligation Bonds and Certificates of Obligation (continued)
Prior Year Refunding
In prior years, the City defeased certain general obligation and other bonds by placing the proceeds of the
new bonds in an irrevocable trust to provide for all future debt service payments on the refunded bonds.
Accordingly,the trust account assets and the liability for the defeased bonds are not included in the City's
fmancial statements. At September 30, 2014, approximately $60 million of previously refunded bonds
outstanding were considered defeased.
General Obligation
PIB Series 2005 $ 14,155,000
PIB Series 2006 20,495,000
CO Series 2006 4,475.000
$39,125,000
Development Authority of Pearland
Series 2005 $ 6,280,000
Series 2006 7,395,000
Series 2009 7,230,000
$20,905,000
Total: $60,030,000
Capital Lease Obligations
The City has entered into certain capital lease agreements in order to purchase public safety and management
information systems, equipment and other construction-related equipment. The capital lease obligations are
paid out of the General,Debt Service and Water and Sewer Funds.The historical purchase price of the capital
assets under lease is approximately$6.8 million.
Following is a summary of future lease payments due on this equipment:
Fiscal Year Obligations
2015 $ 1,402,292
2016 1,092,850
2017 913,394
2018 614,365
2019 479,916
2020 283,444
Total 4,786,261
Less: Interest (272,906)
Obligations under capital leases $ 4,513,355
52
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
A. General Obligation Bonds and Certificates of Obligation (continued)
The annual requirements to amortize governmental activity general obligation bonds and certificates of
obligation outstanding at September 30,2014,were as follows:
Cove mile ntal Activities
General Obligation Certificates of Obligation
Fiscal Year Principal Interest Principal Interest
2015 $ 8,300,000 $ 9,975,103 $ 2,745,000 $ 2,396,055
2016 9,350,000 9,600,084 2,120,000 2,303,869
2017 8,955,000 9,224,255 2,190,000 2,219,348
2018 8,830,000 8,859,379 2,765,000 2,115,972
2019 11,690,000 8,430,716 2,505,000 2,006,841
2020 12,470,000 7,920,506 2,580,000 1,900,410
2021 12,855,000 7,376,686 2,665,000 1,789,213
2022 13,675,000 6,797,126 2,535,000 1,674,221
2023 14,225,000 6,185,290 2,625,000 1,555,824
2024 14,795,000 5,537,300 2,725,000 1,431,690
2025 15,475,000 4,885,247 2,825,000 1,301,289
2026 15,870,000 4,232,618 2,960,000 1,164,378
2027 15,870,000 3,552,560 3,840,000 1,018,540
2028 19,400,000 2,891,764 3,995,000 863,823
2029 14,230,000 2,215,900 4,175,000 700,421
2030 10,185,000 1,625,578 3,410,000 544,513
2031 10,125,000 1,154,971 3,805,000 384,238
2032 10,660,000 675,193 4,185,000 199,088
2033 3,185,000 361,506 635,000 86,263
2034 3,300,000 217,869 660,000 55,163
2035 1,520,000 112,044 130,000 22,813
2036 795,000 62,122 140,000 16,650
2037 480,000 33,763 140,000 10,175
2038 490,000 11,331 150,000 3,469
$ 236,730,000 $ 101,938,909 S 56,505,000 $ 25,764,260
s
53
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5- Long-Term Debt (continued)
A. General Obligation Bonds and Certificates of Obligation(continued)
The annual requirements to amortize blended component unit revenue bonds outstanding at September 30,
2014,were as follows:
Governmental Activities
Pearland Economic Development Authority of
Development Corporation Pe arland
Fiscal Year P rincipal Interest Principal Interest
2015 $ 965,000 $ 1,068,839 $ 3,250,000 $ 1,824,295
2016 1,010,000 1,025,057 3,350,000 1,721,965
2017 1,060,000 976,218 3,455,000 1,616,460
2018 1,115,000 924,986 3,565,000 1,507,696
2019 1,175,000 870,739 3,675,000 1,395,416
2020 1,230,000 819,126 3,565,000 1,279,653
2021 1,285,000 764,705 3,680,000 1,167,093
2022 1,350,000 707,225 3,765,000 1,050,862
2023 1,415,000 645,158 3,690,000 930,131
2024 1,480,000 579,894 3,840,000 812,928
2025 1,555,000 511,083 3,990,000 690,735
2026 1,635,000 438,397 4,150,000 563,552
2027 1,715,000 361,922 4,315,000 431,072
2028 1,805,000 275,920 4,485,000 293,107
2029 1,895,000 188,544 4,660,000 149,467
2030 2,000,000 96,818
$ 22,690,000 $ 10,254,633 $ 57,435,000 $ 15,434,429
54
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
B. Enterprise Fund Debt
The following is a summary of changes in the City's total business-type long-term liabilities for the year
ended September 30,2014.
Restated
Balance Balance Amounts
September30, September30, Due Within
2013* Additions (Reductions) 2014 One Year
Business-type Activities
Bonds payable:
Permanent Improvement Bonds S 14,020,000 $ $ (1,155,000) $ 12,865,000 $ 1,530,000
Water and sewer revenue bonds 105,690,000 (3,765,000) 101,925,000 3,575,000
Unamortized premium/(discount) 730,310 (138,246) 592,064
Total bonds payable 120,440,310 (138,246) (4,920,000) 115,382,064 5,105,000
Other liabilities:
Obligations under capital leases 260,984 (91,844) 169,140 86,960
Compensated absences 463,482 296,131 (234,704) 524,909 87,701
Other post-employment benefits 356,544 (41,277) 315,267
Total Business-type Activities S 121,521,320 5 157,885 S (5287,825) $ 116,391,380 $ 5,279,661
*As Restated
A summary of the terms of certificates of obligation and revenue bonds recorded in the Enterprise Funds as
of September 30,2014,is as follows:
Original Interest Debt
Series Issue Matures Rate(%) Outstanding
Water and Wastewater Fund
Water and Sewer System Adjustable Rate Revenue Bonds,
Series 1999 $ 8,000,000 2020 4.41-4.60 $ 2,580,000
Water and Sewer System Revenue and Refunding Bonds,
Series 2006 13,845,000 2031 3.74-4.82 10,170,000
Water and Sewer System Revenue and Refunding Bonds,
Series 2007 40,135,000 2031 3.50-5.50 35,705,000
Water and Sewer System Revenue Bonds,Series 2008 14,950,000 2034 4.125-5.00 13,690,000
Water and Sewer System Revenue Bonds,Series 2009 13,130,000 2034 3.00-5.50 1 1,340,000
Permanent Improvement and Refunding Bonds,Series 2009 11,660,000 2018 2.00-5.00 6,635,000
Water and Sewer System Revenue Bonds,Series 2010A 14,040,000 2035 1.75-4.50 12,505,000
Water and Sewer System Refunding Bonds,Series 2010B 8,970,000 2023 1.75-4.00 7,875,000
Permanent Improvement and Refunding Bonds,Series 2012 6,230,000 2025 3.00-5.00 6,230,000
Water and Sewer System Revenue Bonds,Series 2012 8,670,000 2037 2.00-3.625 8,060,000
Total Utility System Fund t 11-1.790,o(x)
55
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 5-Long-Term Debt(continued)
B. Enterprise Fund Debt(continued)
The annual requirements to amortize governmental activity revenue bonds and permanent improvement
bonds outstanding at September 30,2014,were as follows:
Business-Type Activities
Revenue Bonds Permanent Improvement Bonds
Fiscal Year Principal Interest Principal Interest
2015 $ 3,575,000 $ 4,439,469 $ 1,530,000 $ 474,813
2016 3,725,000 4,302,209 1,560,000 427,900
2017 3,880,000 4,153,814 2,415,000 344,000
2018 4,030,000 4,005,011 2,515,000 232,188
2019 4,195,000 3,847,690 365,000 171,700
2020 4,370,000 3,683,168 370,000 157,000
2021 4,615,000 3,503,758 370,000 142,200
2022 4,810,000 3,306,020 385,000 127,100
2023 5,025,000 3,100,220 395,000 111,500
2024 4,190,000 2,884,169 1,480,000 74,000
2025 4,440,000 2,689,274 1,480,000 22,200
2026 6,155,000 2,477,949
2027 6,450,000 2,181,686
2028 6,765,000 . 1,867,325
2029 7,080,000 1,552,813
2030 7,375,000 1,257,306
2031 7,680,000 948,088
2032 3,710,000 625,250
2033 3,895,000 444,575
2034 4,075,000 264,300
2035 1,180,000 75,725
2036 345,000 25,556
2037 360,000 13,050
$ 101,925,000 $ 51,648,423 $ 12,865,000 $ 2,284,600
D. Legal Compliance
Long-term debt assumed by the City upon dissolution of annexed municipal utility district in fiscal years
2006,2007,and 2013 has been recorded as part of the City's long-term debt. A portion of the assumed debt
is related to assets recorded in the Water and Sewer Fund.Even though the debt is related to assets recorded
in the Water and Sewer Fund,the debt is considered general obligation debt based on Texas law.
56
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 6-Interfund Transactions
A summary of interfund transfers,the purpose of which is to cover operational expenses/expenditures, for the
year ended September 30,2014,is as follows:
Transfers In Transfers Out Amounts Purpose
General Fund Capital Projects Fund $ 1,942,825 Transfer of funds for capital projects costs
General Fund City Wide Donations Fund 21,000 Transfer of funds for operating costs
General Fund Grant Fund 287,210 Transfer of funds for operating costs
General Fund Solid Waste Fund 146,794 Transfer of funds for administrative costs
General Fund Water Sewer Fund 1,359,088 Transfer of funds for administrative costs
Total General Fund 3,756,917
Debt Servi a Fund General Fund 159,272 Transfer of funds for debt service payments
Debt Service Fund Water Sewer Fund 459,167 Transfer of funds for debt service payments
Total Debt Service Fund 618,439
Development Authority of Pearland Tax Increment Reinvestment
Zone#2 11,494,978 Debt service;developer reimbursements
U of H Fund General Fund 5,717 Operating
Capital Projects Fund General Fund 194,797 Transer of funds for capital project costs
Capital Projects Fund Parks and Recreation
Development 66,500 Transer of funds for capital project costs
Capital Projects Fund Sidewalk Fund 14,652 Transer of funds for capital project costs
Capital Projects Fund Grant Fund 344,300 Transer of funds for capital project costs
Capital Projects Fund Street Assessments Fund 10,625 Transer of funds for capital project costs
Total Capital Projects Fund 630,874
Internal Service Fund General Fund 819,638 Operating costs
Internal Service Fund Water Sewer Fund 301,030 Operating costs
Internal Service Fund General Fund 1,369,510 Operating costs and reserves
Total Internal Service Fund 2,490,178
Water Sewer Fund General Fund 235,491 Operating costs
Total S 19232,594
A summary of interfund receivables and payables at September 30,2014,follows:
Receivable Fund Payable Fund Amount Purpose
General Fund Grant Fund $ 244,629 Short term loan
General Fund U of H Fund 30,694 To fund operations
$ 275,323
57
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 7-Fund Balance/Net Position
Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary integration for the General
Fund,special revenue funds,and capital projects funds. September 30,2014,certain amounts which were
classified as restricted, committed, or assigned for specific purposes have been encumbered in the
governmental funds. Significant encumbrances included in governmental fund balances are as follows:
Encumbrance s
General Fund-assigned $ 1,393,883
Pearland Economic Development-restricted 342,048
Aggregate non-major funds-restricted 17,222,932
S 18,958,863
Note 8-Deferred Compensation Plan
The City maintains,for its employees,a tax-deferred compensation plan meeting the requirements of Internal
Revenue Code Section 457.The plan was established in the 1995 fiscal year by City Ordinance,and ICMA
Retirement Corporation is the plan administrator. The deferred compensation is not available to employees
until termination,retirement,death,or unforeseen emergency.The plan's trust arrangements are established to
protect deferred compensation amounts of employees under the plan from any other use other than intended
under the plan (eventual payment to employees deferring the compensation) in accordance with federal tax
laws.Amounts of compensation deferred by employees under plan provisions are disbursed bi-weekly by the
City to a third-party administrator. The third-party administrator handles all funds in the plan and makes
investment decisions and disburses funds to employees in accordance with plan provisions.
Note 9-Employee Retirement System
Plan Description and Provisions
The City provides pension benefits for all of its full-time employees through a non-traditional, joint
contributory,hybrid defined benefit plan in the state-wide Texas Municipal Retirement System("TMRS"),an
agent multiple-employer public employee retirement system. The plan provisions that have been adopted by
the City are within the options available in the governing state statutes of TMRS.
Benefits depend upon the sum of the employee's contributions to the plan,with interest,and the City-financed
monetary credits, with interest. At the date the plan began, the City granted monetary credits for service
rendered before the plan began of a theoretical amount equal to two times what would have been
contributed by the employee,with interest,prior to establishment of the plan. Monetary credits for service
since the plan began are a percent(100%, 150%,or 200%)of the employee's accumulated contributions.
TMRS issues a publicly available comprehensive annual financial report that includes financial statements
and required supplementary information(RSI) for TMRS;the report also provides detailed explanations of
the contributions,benefits,and actuarial methods and assumptions used by the System. This report may be
obtained from TMRS'website at www.TMRS.com.
58
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9-Employee Retirement System(continued)
In addition, the City can grant, as often 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 the current employee contribution rate and City
matching percent 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.
The plan provisions are adopted by the City Council of the City, within the options available in the state
statutes governing TMRS.Plan provisions for the City were as follows:
Plan Year 2013 Plan Year 2014
Employee deposit rate 7.0% 7.0%
Matching ratio(City to employee) 2 to 1 2 to 1
Years required for vesting 5 5
Service retirement eligibility
(expressed as age/years of service) 60/5,0/20 60/5,0/20
Updated Service Credit 100%Repeating,Transfers 100%Repeating,Transfers
Annuity Increase(to retirees) 70%of CPI Repeating 70%of CPI Repeating
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service
regardless of age.
Contributions
Under the state law governing TMRS, the contribution rate for each city is determined annually by the
actuary, using the projected unit credit actuarial cost method. This rate consists of the normal cost
contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of
payroll from year to year. The normal cost contribution rate finances the portion of an active member's
projected benefit allocated annually;the prior service contribution rate amortizes the unfunded(overfunded)
actuarial liability (asset) over the applicable period for that city. Both the normal cost and prior service
contribution rates include recognition of the projected impact of annually repeating benefits,such as updated
service credits and annuity increases.
The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees and the City
make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary
purposes,there is a one-year delay between the actuarial valuation that serves as the basis for the rate and the
calendar year when the rate goes into effect.
The City's total payroll in fiscal year 2014 was$34.8 million and the City's contributions were based on
a payroll of $33.2 million. Contributions made by employees totaled $2.3 million, and the City made
contributions of$4.3 million during the fiscal year ended September 30,2014.
59
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9-Employee Retirement System (continued)
Contributions(continued)
Three-year trend information is presented below:
2014 2013 2012
Annual Pension Cost(APC) $ 4,311,811 $ 3,780,847 $ 3,518,289
Percentage of APC Contributed 100% 100% 100%
NPO at the End of Period $ - $ - $ -
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.
The required contribution rates for fiscal year 2014 were determined as part of the December 31,2011 and
2012 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2013,
also follows:
Valuation Date 12/31/2013 12/31/2012 12/31/2011
Actuarial Cost Method Entry Age Normal Projected Unit Credit Projected Unit Credit
Amortization Method Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll
GASB 25 Equivalent Single
Amortization Period 30.0 Years-Closed Period 25.3 Years-Closed Period 26.3 Years-Closed Period
Amortization Period for
new Gains/Losses 30 years 30 years 30 years
Asset Valuation Method 10-year Smoothed Market 10-year Smoothed Market 10-year Smoothed Market
Actuarial Assumptions:
Investment Rate of Return 7.00% 7.00% 7.00%
Projected Salary Increases Varies by age and service Varies by age and service Varies by age and service
Includes Inflation At 3.00% 3.00% 3.00%
Cost-of-Living Adjustments 2.1% 2.1% 2.1%
In order to provide a reasonable retirement benefit at a reasonable cost to employers and to provide better
long-range rate forecasts,TMRS' actual funding method is the Projected Unit Credit method using a 25-
30 year"closed"period.
For cities that have adopted annually repeating annuity increases (COLA's), this change in method
resulted in increased contribution rates,provided for advanced funding and positive improvement in the
pension funding rates. The TMRS Board provided for an eight-year phase-in period for new rates to
enable cities to slowly increase contributions. The City chose the phase-in option.
The funded status as of December 31,2013,the most recent valuation date is presented as follows:
Unfunded
Actuarial Actuarial (UAAL)as a
Valuation Actuarial Actuarial Accrued Annual Percentage
Date Value of Accrued Percentage Liability Covered of Covered
December 31, Assets Liabilities Funded (UAAL) Payroll Payroll
2013 $ 78,831,539 $ 98,960,025 80% $20,128,486 $33,237,051 61
60
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 9-Employee Retirement System(continued)
Contributions(continued)
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the future.
Actuarial calculations are based on the benefits provided under the terms of the substantive plan in effect
at the time of each valuation, and reflect a long-term perspective. Consistent with that perspective,
actuarial methods and assumptions used include techniques that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets. The schedule of funding
progress, presented as Required Supplementary Information following the notes to the financial
statements, presents multi-year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability of benefits.
Note 10-Other Post-Employment Benefits
In addition to pension benefits,the City provides access to medical and dental coverage through its selected
insurance carrier, to retirees and/or retiree dependents. The City's other post-employment benefit plan is a
single-employer plan. To qualify for retiree's medical or dental insurance,the retiree must have a minimum
of ten years of continuous service with the City and be at least sixty years of age, or with 20 years of
continuous service at any age. The City provides the coverage on a pay-as-you-go basis similar to current
employees, but the City does not pay any portion of the retiree premium. Therefore, there is an implicit
subsidy due to the blended rate paid by the retirees,but there is no direct liability due from the City as it
does not pay any portion of the retiree's costs.
The costs of providing these benefits and number of retired employees are as follows:
Emp/Dep Number
Total City's Coverage of Retire d
Cost Cost Cost Employees
$ 107,425 $ $ 107,425 11
Retirees who are entitled to receive retirement benefits under the City's retirement plan may purchase
continued health benefits coverage for the retiree and the retiree's dependents, but shall pay 100% of the
premium for coverage.The retiree,however,is able to receive a lower rate by participating in the City's plan
as opposed to individually purchasing health insurance.The City's coverage is secondary to Medicare when
the person becomes eligible for these benefits.
61
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 10-Other Post-Employment Benefits(continued)
The Governmental Accounting Standards Board published a guideline regarding accounting and fmancial
reporting by employers for post-employment benefits other than pensions. This document gives guidance
regarding the methods and timing for reporting. The effect of the Guideline is to cause the cost of retiree
benefits to be accrued for during the working lifetime of the employees.This requires pre-funding or accruing
of a liability. The City has elected to accrue the liability, and the unfunded liability will be funded over a
period of 30 years.The results of the City's most recent actuarial valuation are as follows:
Unfunded (UAAL)as
Actuarial a
Actuarial Actuarial Actuarial Accrued Annual Percentage
Valuation Date Value of Accrued Percentage Liability ('oNered of Covered
October 1, Assets Liabilities Funded (UAAL) Payroll Payroll
2012 $ $ 8,339,937 0% $ 8,339,937 $28,876,260 29%
Net OPEB obligations at year-end for the last three fiscal years are as follows:
2012 2013 2014
Normal cost $ 190,706 $ 243,253 $ 234,852
Amortization of UAAL 141,837 177,878 177,878
Annual required contribution(ARC) 332,543 421,131 412,730
Interest on prior-year net OPEB obligation 57,127 72,715 81,115
Amortization of prior-year net OPEB obligation
(ARC adjustment) (109,364) (142,285)
Annual OPEB cost(expense) 389,670 384,482 351,560
Employer contributions (174,458) (342,919)
Increase in net OPEB obligation 389,670 210,024 8,641
Net OPEB obligation-beginning of year 1,428,182 1,817,852 2,027,876
Net OPEB obligation-end of year $ I.817.852 S 2.027.876 $ 2,036.517
The annual cost recorded to the general ledger for fiscal year 2014 is $493,845, which includes the
estimated normal cost of $234,852 to provide for the benefits earned by active employees. The total
liability, which is not recorded to the general ledger, is $8,339,937, and represents the actuarial present
value of benefits.
Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are subject to continual
revision as results are compared to past expectations and new estimates are made about the future. The
methods and assumptions used as of the measurement date of October 1,2012 include using the Projected
Unit Credit actuarial costs method, a closed amortization period of 26 years, a discount rate of 4%,
medical inflation and ultimate pre-Medicare rate of 10% and 5% respectively, with a straight years of
service amortization method.
Separate, audited GAAP-basis postemployment benefit plan reports are not applicable for the other post-
retirement benefit plan for the City as there are no separately issued plan financial statements.
62
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 11-Commitments and Contingencies
Litigation and Other Contingencies
The City was involved in various lawsuits and arbitration proceedings at September 30,2014. The City and
its legal counsel believe that any amounts which the City might ultimately be required to pay will not exceed
underlying insurance coverage.
Reimbursements due to Developers
Pursuant to the Local Government Code,the Economic Development Corporation offers incentives to attract
and retain businesses to Pearland.The following are the current incentives.
Current Incentives Amount Prior Years FY 2014 Balance
Altus Harbor $ 87,500 $ 80,000 $ $ 7,500
Amerlux 185,000 185,000
Base Pair Bio-Technologies 38,500 9,625 28,875
Keystone Engineering 189,000 189,000
KS Management 2,663,000 2,663,000
Merit Medical Systems 888,000 758,000 130,000
Zapp Precision Wire 60,000 60,000
$4,111,000 $ 80,000 $ 767,625 $3,263,375
Shadow Creek Town Center
In 2004, the City, along with the Reinvestment Zone Number Two (the Zone) and the Development
Authority of Pearland (the Authority), component units of the City, entered into an agreement with a
developer to reimburse the developer all or a portion of the project costs to implement the Shadow Creek
Ranch Development TIRZ(TIRZ Plan).As projects implementing the TIRZ Plan are completed,the Zone
Board may recommend to the City that the Authority reimburse developers on behalf of the Zone and the
City. The Zone Board will forward to the City and the Authority all of the necessary and required
documentation supporting the requested reimbursement and a determination of the exact amount
requested for reimbursement, including a calculation of the amount of interest to be reimbursed on funds
advanced for the projects. In addition all monies available in the Tax Increment Fund shall be transferred
to the escrow agent no less than once per year and no later than the fifteenth day of each August,subject
to the retention by the City of: (1) an amount equal to the City's administrative costs connected with the
Zone and the TIRZ Plan, as provided in the TIRZ plan (36% of the City's Tax Increment, but not more
than $0.255, in years four through eight,and 64% of the City's Tax Increment,but not more than$0.44,
in years nine through 30)shall be retained by the City;(2)amounts required to be maintained in the Alvin
ISD Suspense Account; (3)an amount sufficient to pay reasonable current and anticipated administrative
and operating costs of the Zone,as determined by the Zone Board.
On November 13,2006,the City of Pearland,Pearland Economic Development Corporation(PEDC)and
Shadow Creek Retail, LP entered into an agreement whereby the developer would build and construct a
mixed use commercial development located at the northwest corner of State Highway 288 and Broadway,
also known as FM 518.
63
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 11 -Commitments and Contingencies(continued)
Shadow Creek Town Center(continued)
The Developer provided for the construction of segments of Broadway Street, Business Center Drive,
Memorial Hermann Drive, as well as landscaping, underground utilities, pipeline relocation and other
associated costs. The source of funds for reimbursement of the public infrastructure is both the TIRZ#2
and City and PEDC sales tax revenue generated from the project. The total funded from TIRZ#2 is
$11,749,618 and the amount of TIRZ improvements to be funded from sales tax is $2,001,931. Once
completion and tenant occupancy of at least 318,000 square feet is achieved for a period of three
consecutive months,the City and PEDC,shall remit,monthly,thirty-three percent of sales tax received by
the City and PEDC to the Developer until paid in full plus interest at eight percent per annum for the first
two years following completion of the widening of Broadway and interest at five percent per annum for
the subsequent two years. The Developer met the targets set forth in the agreement in fiscal year 2008.
Through September 30,2014,the City remitted sales tax to the developer pursuant to the agreement in the
amount of$2,347,103,of which $446,275 was remitted in fiscal year 2014. To date, $1,898,518 million
has been reimbursed towards principal and $448,585 for interest. The City anticipates the developer
reimbursements funded from sales tax to be complete in fiscal year 2016.
Lower Kirby Urban Center Master Plan
One of the priorities of the Lower Kirby Urban Center Master Plan, the Pearland 20/20 Strategic Plan,
and a City Council goal is the implementation of regional detention for the Lower Kirby area. The
purpose of regional detention is to create a more attractive urban development,reclaim land from the 100
year flood plain and increase property values needed to pay for infrastructure. A regional approach will
prevent each property owner from having to provide individual on site detention allowing for drainage
areas that become amenities.
One of the first steps taken by the City to facilitate regional detention was the purchase of the existing
large borrow pit on the south side of the District in November 2010 that will be utilized as the detention
pond. The City hired LJA Engineering in 2012 to conduct a drainage design and impact analysis for the
necessary improvements and to begin a discussion with Texas Department of Transportation(TXDOT)to
utilize their existing drainage ditch for conveyance. The ditch runs north and south parallel to State
Highway 288 and will convey water from the eastern 467 acres of the District to the detention pond
before it outfalls into Clear Creek.
The Lower Kirby Municipal Management District (LKMMD) and the Pearland Municipal Management
District No. 1 (PMMD#1) on February 6, 2014 adopted a master drainage plan for the implementation
and enforcement of regional detention that established rules, regulations and fees. The regional detention
will be developed and utilized by both the LKMMD and the PMMD#1. The PMMD#1 master drainage
plan will be for the entire 127 acres of the District and the LKMMD master drainage plan is a first phase
that will provide regional detention for 340 acres of the District.
The Districts entered into a cost sharing and implementation agreement to cooperate on the regional
detention system. The total cost of this phase of the regional detention system is estimated at
approximately $16M that will be split between the two Districts at 72.3% for LKMMD and 27.7% for
PMMD#1. Based on this cost sharing,the LKMMD will charge$34,495 per acre foot and PMMD#1 will
charge $37,047 per acre foot. Thirty percent of the fee will be a pro-rata participation fee paid by the
developer and the remaining seventy percent will be reimbursed to the developer when funds are
available from the District.
64
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 12-Risk Management
The City is exposed to various risks of loss related to torts: theft of,damage to,and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City's risk management program
mainly encompasses obtaining property and liability insurance through Texas Municipal League's
Intergovernmental Risk-Pool (TML-IRP), and through commercial insurance carriers. The participation
of the City in TML-IRP is limited to payment of premiums. The City has not had any significant
reduction in insurance coverage, and the amounts of insurance settlements have not exceeded insurance
coverage for any of the last three years.
The City also provides Workers' Compensation insurance on its employees through TML-Workers'
Compensation Fund. Workers' Compensation premiums are subject to change when audited by TML
Workers'Compensation Fund.At fiscal year-end September 30,2014,the City believed the amounts paid
on Workers' Compensation would not change significantly from the amounts recorded.
Note 13-Capital Lease
The City has a 20-year agreement to lease a facility to the University of Houston Clear Lake (UHCL),
which commenced in July 2010. Rent or lease payments are broken into two parts, debt service and
operating. For accounting purposes the City has classified the lease as a direct fmancing lease. Because
this lease is recorded in a governmental fund, the receivable is deferred and the distinction between a
sales and direct financing lease is not relevant at the fund level.
UHCL has an option to purchase the facility upon the commencement date of July 2010 until the 61st day
preceding the 20`h anniversary of the commencement date.
The lease payments related to debt service to be received coincide with debt service payments the City is
required to make on a bond that matures on March 1,2029. At September 30,2014, the future minimum
debt service lease payments to be received under the lease are as follows:
Fis cal year ending
September 30, Payment
2015 $ 654,255
2016 643,059
2017 627,598
2018 610,030
2019 594,808
2020-2024 2,751,760
2025-2029 _ 2,343,556
Total $ 8,225,066
65
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 14-Operating Lease
The City has a five-year agreement to lease a portion of the UHCL facility to the Pearland Economic
Development Corporation which commenced in July 2010. For accounting purposes the City has
classified the lease as an operating lease.The agreement calls for up to three additional five-year terms for
a total of 20 years.The rent/lease payments are broken into two parts,debt service and operating.
The debt service lease payments to be received coincide with debt service payments the City is required
to make on a bond that matures on March 1, 2029. At September 30, 2014, the future minimum debt
service lease payments to be received under the lease are as follows:
Fiscal year ending
September 30, Payment
2015 S 110,153
2016 108,268
2017 105,665
2018 102,707
2019 100,144
2020-2024 463,297
2025-2029 394,570
Total $ 1,384,804
Note 15-Subsequent Events
Certificates of Obligation,Series 2014
On October 16, 2014, the City received $4,625,000 in certificates of obligations. Proceeds from the sale
of the Certificates will be used for (i) improvements, renovations and additions to the existing public
works service center located at East Orange Street and Old Alvin Road; (iii) acquisition of land for and
the design and construction of two new fire stations located at Yost Road and FM 518 and at Harkey
Road and Fite Road;(iv)project management for parks,street and facility capital projects within the City;
(v)renovations to the existing City Hall Complex;and(vi)to pay the costs of issuance of the Certificates.
Interest rates on the certificates range from 2.0%to 4.0%and mature in 2034.
Water and Sewer System Revenue Bonds,Series 2014
On October 16, 2014, the City received $9,210,000 in water and sewer system revenue bonds. Proceeds
from the sale of the bonds will be used for waterworks and sanitary sewer system improvements, and to
pay the costs of issuance of the bonds. Interest rates on the bonds range from 2.0%to 4.0%and mature in
2039.
Development Authority of Pearland Tax increment Revenue Bonds, Series 2014
On November 10, 2014,the Development Authority of Pearland approved the issuance of$8,060,000 of
Tax Increment Contract Revenue Bonds. Proceeds from the sale of the bonds were used to reimburse the
developer$7,890,000 for infrastructure within the TIRZ boundaries. The bonds have and annual interest
rate of 2.72%and will mature in 2029.
66
CITY OF PEARLAND,TEXAS
NOTES TO FINANCIAL STATEMENTS(continued)
Note 15-Subsequent Events(continued)
Capital Lease
One December 18, 2014, City Council approved a seven year $574,049 lease purchase agreement with
Clayton Holdings, LLC for the purchase of a Pierce Quantum pumper truck. The bid was at a 2.02%
interest rate with the first semi-annual payment of$43,735.39 due January 2015,with final payment July
2021.The escrow account closed on January 5,2015.
Note 16-Restated Net Position
The City expensed unamortized bond issuance costs in accordance with the implementation of GASB
Statement No.65,Items Previously Reported as Assets and Liabilities.The effect of these restatements on
beginning net position are as follows:
Water and Governmental Business-type
Sewer Fund Activities Activities
Net Position as of September 30,2013 $ 193,025,610 $ 451,958,192 $ 193,238,011
Expense unamortized debt issuance costs in the
accordance with GASBS No.65: (1,076,799) (2,816,829) (I 076.79Q)
Net Position as of September 30,2013(restated) $ 191,948,811 $ 449,141,363 ti 192,161 212
67
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68
Required Supplementary Information
69
CITY OF PEARLAND,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES-BUDGET AND ACTUAL
For the year ended September 30,2014
Variance
with Final
Budget-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues •
Property taxes $ 11,818,335 $ 11,901,823 $ 12,095,419 $ 193,596
Sales and use taxes 17,428,319 17,038,649 17,326,556 287,907
Franchise fees 6,106,615 6,264,559 6,214,046 (50,513)
Licenses and permits 2,877,117 3,642,823 4,148,763 505,940
Fees and forfeitures 3,568,281 2,945,940 2,970,397 24,457
Charges for services 13,175,835 12,828,870 12,663,599 (165,271)
Investment earnings 60,500 82,974 88,232 5,258
Other 514,862 2,360,758 2,172,857 (187,901)
Total Revenues 55,549,864 57,066,3% 57,679,869 613,473
Expenditures
Current:
General government 8,793,823 7,687,619 7,234,797 452,822
Public safety 29,395,291 30,038,310 29,039,403 998,907
Public works 8,507,284 8,318,137 7,946,912 371,225
Community services 3,743,683 3,893,808 3,747,462 146,346
Parks and recreation 8,138,479 8,028,920 7,357,692 671,228
Debt Service:
Principal 89,950 89,950 89,950
Interest and other charges 24,536 24,536 24,536
Capital outlay 3,269,551 5,470,572 4,233,164 1,237,408
Total Expenditures 61,962,597 63,551,852 59,673,916 3,877,936
Excess(deficiency)of revenues
over expenditures (6,412,733) (6,485,456) (1,994,047) 4,491,409
Other Financing Sources (Uses)
Proceeds from capital leases 901,825 2,426,987 1,852,939 (574,048)
Transfers in 3,709,547 3,751,670 3,756,917 5,247
Transfers out (1,386,903) (2,784,191) (2,784,425) (234)
Total Other Financing Sources (Uses) 3,224,469 3,394,466 2,825,431 (569,035)
Net change in fund balances (3,188,264) (3,090,990) 831,384 3,922,374
Fund balances, beginning 18,623,117 18,623.117 18,623,117
Fund balances,ending $ 15,434.853 S 15.532,127 S 19,454,501 S 3,922.374
70
CITY OF PEARLAND,TEXAS
NOTES TO REQUIRED SUPPLEMENTARY BUDGET INFORMATION
Budgetary Compliance
The City has complied with all material budget requirements for the year ended September 30,2014.
Annual appropriated budgets are adopted for the General,Special Revenue and Debt Service Funds,using the
same basis of accounting as for financial reporting. All annual appropriations lapse at fiscal year end.
Project length budgets are adopted for the Capital Project Funds. The City, for management control,
approves a fmancial plan for the Enterprise Fund. City Council approves the annual budget for the Pearland
Economic Development Corporation,which is included in the City's fmancial reporting entity.
Expenditures may not legally exceed budgeted appropriations at the fund level (i.e. General Fund, Debt
Service Fund,etc.).Expenditure requests,which would require an increase in total budgeted appropriations,
must be approved by City Council through a formal budget amendment.At any time in the fiscal year,the
Council may make emergency appropriations to meet a pressing need for public expenditure in order to
protect the public health,safety,or welfare.The Council has the power to transfer any unencumbered funds
allocated by the budget from one activity, function, or department, to another activity, function, or
department,to re-estimate revenues and expenditures,and to amend the budget.
Because City Council adopts the budget at the fund level,management has the authority to transfer available
funds allocated by the budget from one function/department or activity to another function or activity within
the same department. In cooperation with the directors and department heads of the City, the Budget
Officer, the Director of Finance and the City Manager prepare an annual budget for the General Fund,
Special Revenue Funds and Debt Service Fund for the ensuing fiscal year, in a form and style as deemed
desirable by the City Manager.The City Manager shall submit to the Council,for its review,consideration,
and revision, both a letter describing the proposed new budget, as well as a balanced budget for the
forthcoming fiscal year, between 60 (sixty) and 90 (ninety) days prior to the beginning of the fiscal year.
The budget, as adopted, must set forth the appropriations for services, functions, and activities of the
various City departments and agencies,and shall meet all fund requirements provided by law and required
by bond covenants.Capital projects are budgeted on a project-length basis.
Amounts reported in the accompanying financial statements represent the budgeted amount with all
supplemental appropriations.
71
CITY OF PEARLAND,TEXAS
REQUIRED PENSION SYSTEM SUPPLEMENTARY INFORMATION
September 30,2014
TEXAS MUNICIPAL RETIREMENT SYSTEM(UNAUDITED)
Schedule of Funding Progress
Unfunded
Actuarial Actuarial (UAAL)as a
Valuation Actuarial Actuarial Accrued Annual Percentage
Date Value of Accrued Percentage Liability Covered of Covered
December31, Assets Liabilities Funded (UAAL) Payroll Payroll
2013 $ 78,831,539 $ 98,960,025 80% $20,128,486 $33,237,051 61%
2012 69,800,322 85,022,771 82% 15,222,449 28,876,260 53%
2011 61,822,285 78,404,115 79% 16,581,830 27,756,555 60%
CITY OF PEARLAND OTHER POST-EMPLOYMENT BENEFIT OBLIGATION
Schedule of Funding Progress
Unfunded
Actuarial Actuarial (UAAL)as a
Valuation Actuarial Actuarial Accrued Annual Percentage
Date October Value of Accrued Percentage Liability Covered of Covered
1, Assets Liabilities Funded (UAAL) Payroll Payroll
2012 S $ 8,339,937 0% $ 8,339,937 $28,876,260 29%
2010 6,994,465 0% 6,994,465 26,871,670 26%
While retirees get the benefit of an overall employee blended rate for the Other Post-Employment Benefit
Obligation,benefits are funded on a pay-as-you go basis via premiums paid by the retirees and to be paid
by future retirees. Therefore, the City does not pay for retiree health insurance directly and there is an
implicit subsidy due to the blended rate paid by the retirees. Thus,there is no direct liability due from the
City as it does not pay any portion of the retiree's costs. Actuarial valuations are conducted every two
years.
Trend information is designed to provide information about the progress made in accumulating sufficient
assets to pay benefits when due.
72
Other Supplementary Information
73
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74
Combining and Individual Fund
Statements and Schedules
75
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76
CITY OF PEARLAND,TEXAS
NON-MAJOR GOVERNMENTAL FUNDS
To account for the proceeds of specific revenue sources that, are legally restricted to expenditures for
specific purposes.
Hotel/Motel Tax Fund- A fund created to account for hotel/motel occupancy tax revenue.
Court Security Fund- A fund created to account for the receipt and expenditure of revenues from court
fines for court security.
City-Wide Donation Fund - A fund created to account for miscellaneous donations for all city
departments except parks.
Court Technology Fund-This fund is used to account for the receipt and expenditure of revenues from
court fines for court technology.
Street Assessments Fund — A fund created to account for the revenue and expenditure of street
assessments as approved by City Council for a designated street(s).
Park Donation Fund - A fund used to account for park donations for park special events and
development of parks.This fund also includes funds from tree trust donations.
Police Seizure Fund-A fund created to account for state and federal seizure funds which are used solely
for law enforcement purposes.
Park and Recreation Development Fund-A fund created to account for the receipt and expenditure of
payment in lieu of parkland for the development of parks.
Sidewalk Fund-A fund created to account for resources designated for sidewalks.
Grant Fund-A fund created to account for revenues and expenditures associated with federal,state,and
local grants.
Traffic Impact Improvement Fund - A fund created to account for resources and expenditures from
traffic impact analysis.
Juvenile Management Fund - A fund created to account for receipt and expenditure of revenues from
court fines for juvenile case manager.
Capital Projects Fund-A fund used to account for the expenditures of resources accumulated on a pay-
as-you go basis and the sale of bonds and related interest earnings for capital improvement projects.
Educational TV Fund—A fund created to account for the revenues and expenditures associated with the
purchase of equipment for public-access television broadcasting under rules set forth by the Federal
Communications Commission(FCC).
University of Houston (U of II) Fund- A fund created to account for lease revenues and the operating
expenditures related to the University of Houston Clear Lake-Pearland Campus built by the City and
leased to the University of Houston Clear Lake and the Pearland Economic Development Corporation.
77
CITY OF PEARLAND,TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30,2014
HoteI/Motel Court City-Wide Court
Tax Security Donation Technology
Assets
Cash and cash equivalents $ 879,290 $ 119.571 S 49.667 $ 48,433
Investments 1,741,186
Receivables(net of allowance
for uncollectibles) 438,482
Due from other governments
Prepaid items 4,220
Total Assets $ 3,063.178 $ 119571 $ 49,667 S 48.433
Liabilities
Accounts payable S 64.710 $ 2,112 $ S
Accrued expenditures
Due to other funds
Total Liabilities 64.710 2,112
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows
of Resources
Fund Balance
Non-spendable 4,220
Restricted for:
Community development
programs 2,994,248 117,459 3,471
Public safety 46,196 48,433
Capital improvements
Total Fund Balances 2,998,468 117,459 49,667 48,433
Total Liabilities,Deferred
Inflows of Resources,
and Fund Balances S 3,063.178 $ 119571 $ 49,667 $ 48.433
78
Page 1 of 2
Park and
Street Park Police Recreation
Assessments Donation Seizure Development
$ S 168.639 $ 205,187 $ 525,494
495,884
2,527,689 39.196 211
$ 2.527.689 S 168,639 S 244.383 $ 1.021,589
$ 300 $ 2.641 $ 33,439
300 2,641 33,439
2,527,689
2,527,689
168,339
241,742
988,150
168,339 241,742 988,150
I
$ 2,527,689 $ 168,639 $ 244,383 $ 1,021589
79
CITY OF PEARLAND,TEXAS
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
September 30,2014
Traffic Impact Juvenile
Sidewalk Grant Improvement Management
Assets
Cash and cash equivalents $ 242,999 $ $ 176,216 $ 55,113
Investments 496,089
Receivables(net of allowance
for uncollectibles) 304
Due from other governments 319.934
Prepaid items
Total Assets $ 242,999 $ 319.934 $ 672,609 $ 55,113
Liabilities
Accounts payable $ $ 5,803 $ $ 1.601
Accrued expenditures
Due to other funds 244,629
Total Liabilities 250,432 1,601
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows
of Resources
Fund Balance
Non-spendable
Restricted for:
Community development
programs 69,502
Public safety 53,512
Capital improvements 242,999 672,609
Total Fund Balances 242,999 69,502 672,609 53,512
Total Liabilities,Deferred
Inflows of Resources,
and Fund Balances $ 242,999 $ 319,934 $ 672,609 $ 55113
80
Page 2 of 2
Capital Educational
Projects TV U of H Totals
$ 14,437,088 $ 447,638 $ 240,128 $ 17,595,463
2,979,484 5,712,643
207,598 40,000 3,253,480
3,710,441 59,248 4,089,623
4,220
$ 21,334,611 S 487,638 S 299,376 $ 30,655,429
$ 1,872,600 $ 214 $ 28,554 $ 2,011,974
136,761 136,761
30,694 275,323
2,009,361 214 59,248 2,424,058
3,710,441 6,238,130
3,710,441 6,238,130
4,220
487,424 240,128 4,080,571
389,883
15,614,809 17,518,567
15,614,809 487,424 240,128 21,993,241
S 17,624,170 $ 487,638 $ 299,376 $ 26,944,988
81
CITY OF PEARLAND,TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30,2014
Hotel/Motel Court City-Wide Court
Tax Security Donation Technology
Revenues
Sales and use taxes $ 1,404,306 $ $ $
Franchise fees
Fines and forfeitures 53,213 60,846
Investment earnings 4,079 180 104 202
Intergovernmental
Other 80,990 40,775
Total Revenues 1,489,375 53,393 40,879 61,048
Expenditures
Current:
General government 708,755
Public safety 17,433
Public works
Community services 65,542 37.945
Parks and recreation
Debt Service:
Interest and other charges
Capital outlay 53,304 44,116 258,105
Total Expenditures 762,059 65,542 61,549 296,050
Excess(deficiency)of
revenues over expenditures 727,316 (12,149) (20,670) (235,002)
Other Financing
Sources (Uses)
Issuance of debt
Bond premium
Transfers in
Transfers out (21,000)
Total Other Financing
Sources (Uses) (21,000)
Net change in fund balances 727,316 (12,149) (41,670) (235,002)
Fund balances -beginning 2,271,152 129,608 91,337 283,435
Fund balances -ending $ 2,998,468 $ 117,459 $ 49,667 $ 48,433
82
Page 1 of 2
Park and
Street Park Police Recreation
Assessments Donation Seizure Development
$ $ $
394 258 352 1,942
62,194 111,529 118,233 292,379
62,588 111,787 118,585 294,321
62,588
72,342
133,052
46,000 35,590
62,588 133,052 118,342 35,590
(21,265) 243 258,731
(66,500)
(66,500)
(21,265) 243 192,231
189,604 241,499 795,919
$ $ 168,339 $ 241,742 $ 988,150
83
CITY OF PEARLAND,TEXAS
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30,2014
Traffic Impact Juvenile
Sidewalk Grant Improvement Management
Revenues
Sales and use taxes
Franchise fees
Fines and forfeitures 36,066
Investment earnings 351 2,488 86
Intergovernmental 848,339
Other 33,390 40,850
Total Revenues 33,741 848,339 43,338 36,152
Expenditures
Current:
General government 11,993
Public safety 41,936
Public works 1,890
Community services 27,641 43,139
Parks and recreation
Debt Service:
•
Interest and other charges
Capital outlay 112,061
Total Expenditures 1,890 193,631 43,139
Excess(deficiency)of
revenues over expenditures 31,851 654,708 43,338 (6,987)
Other Financing
Sources (Uses)
Issuance of debt
Bond premium
Transfers in
Transfers out (14,652) (631,510) (10,625)
Total Other Financing
Sources (Uses) (14,652) (631,510) (10,625)
Net change in fund balances 17,199 23,198 32,713 (6,987)
Fund balances -beginning 225,800 46,304 639,896 60,499
Fund balances -ending $ 242,999 $ 69,502 $ 672,609 $ 53,512
84
Page 2 of 2
Capital Educational
Projects TV U of H Totals
$ $ $ $ 1,404,306
269,915 269,915
150,125
24,804 473 370 36,083
712,409 237,528 1,798,276
990,299 81,786 1,852,425
1,727,512 270,388 319,684 5,511,130
783,336
131,711
172,618 174,508
37,877 212,144
325,052 458,104
111,564 111,564
10,747,763 5,601 11,302,540
11,031,945 43,478 325,052 13,173,907
(9,304,433) 226,910 (5,368) (7,662,777)
10,690,000 10,690,000
1,005,606 1,005,606
630,874 5,717 636,591
(1,942,825) (2,687,112)
10,383,655 5.717 9,645,085
1,079,222 226,910 349 1,982,308
14,535,587 260,514 239,779 20,010,933
$ 15,614,809 $ 487,424 $ 240,128 $ 21,993,241
85
CITY OF PEARLAND,TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Property taxes $ 26,684,495 $ 27,131,534 $ 447,039 $ 25,898,494
Investment earnings 36,561 37,272 711 19,296
Miscellaneous 775,398 775,396 (2) 1,946,973
Total Revenues 27,496,454 27,944,202 447,748 27,864,763
Expenditures
Debt Service:
Principal 11,575,162 11,575,162 11,950,504
Interest and other charges 13,163,774 13,102,430 61,344 12,667,961
Intergovernmental 4,307,496 4,307,496 4,057,682
Total Expenditures 29,046,432 28,985,088 61,344 28,676,147
Excess(deficiency)of revenues
over expenditures (1,549,978) (1,040,886) 509,092 (811,384)
Other Financing Sources (Uses)
Proceeds from long-term debt 29,720,000 29,720,000
Premium on general obligation debt 3,778,000 3,778,000
Payments to refunding escrow agent (33,182,437) (33,182,437)
Transfers from other funds 618,439 618,439 461,726
Total Other Financing Sources
(Uses) 934,002 934,002 461,726
Net change in fund balance (615,976) (106,884) 509,092 (349,658)
Fund Balances -Beginning 4,642,821 4,642,821 4,992,479
Fund Balances-Ending $ 4,026,845 $ 4,535,937 $ 509,092 $ 4,642,821
86
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-HOTEL/MOTEL TAX
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Sales and use taxes $ 1,342,794 $ 1,404,306 $ 61,512 $ 1,150,360
Investment earnings 5,200 4,079 (1,121) 3,277
Other 82,000 80,990 (1,010)
Total Revenues 1,429,994 1,489,375 59,381 1,153,637
Expenditures
Current:
General government 727,292 708,755 18,537 533,088
Capital outlay 53,630 53,304 326 173,226
Total Expenditures 780,922 762,059 18,863 706,314
Net change in fund balance 649,072 727,316 78,244 447,323
Fund Balances-Beginning 2,271,152 2,271,152 1,823,829
Fund Balances - Ending $ 1920.224 $ 2.998.468 S 78,244 $ 2,271,152
I
4
I
I
87
I
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-COURT SECURITY
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Fines and forfeitures $ 54,508 $ 53,213 $ (1,295) $ 59,476
Investment earnings 175 180 5 200
Total Revenues 54,683 53,393 (1,290) 59,676
Expenditures
Current:
Community services 78,457 65,542 12,915 71,189
Total Expenditures 78,457 65,542 12,915 71,189
Net change in fund balance (23,774) (12,149) 11,625 (11,513)
Fund Balances -Beginning 129,608 129,608 141,121
Fund Balances -Ending $ 105,834 $ 117,459 $ 11.625 $ 129,608
88
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-CITY-WIDE DONATION
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive/
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 150 $ 104 $ (46) $ 118
Other income 69,085 40,775 (28,310) 34,413
Total Revenues 69,235 40,879 (28,356) 34,531
Expenditures
Current:
Public safety 17,433 17,433 14,558
Community services 10,675 10,675
Capital outlay 53,986 44,116 9,870
Total Expenditures 82,094 61,549 20,545 14,558
Excess(deficiency)of revenues
over expenditures (12,859) (20,670) (7,811) 19,973
Other Financing Sources (Uses)
Transfers out (21,000) (21,000)
Net change in fund balance (12,859) (41,670) (7,811) 19,973
Fund Balances - Beginning 91,337 91,337 71,364
Fund Balances - Ending $ 57,478 $ 49,667 $ (7,811) $ 91,337
4
4
I
41
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89
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-COURT TECHNOLOGY
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES INFUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive/
Final Budget Actual (Negative) 2013
Revenues
Fines and forfeitures $ 62,000 $ 60,846 $ (1,154) $ 70,909
Investment earnings 246 202 (44) 380
Total Revenues 62,246 61,048 (1,198) 71,289
Expenditures
Current:
Community services 46,994 37,945 9,049 31,149
Capital Outlay 293,000 258,105
Total Expenditures 339,994 296,050 9,049 31,149
Net change in fund balance (277,748) (235,002) 7,851 40,140
Fund Balances -Beginning 283,435 283,435 243,295
Fund Balances - Ending $ 5,687 $ 48,433 $ 7,851 $ 283,435
90
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-STREET ASSESSMENTS
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenue s
Investment earnings $ 394 $ 394 $ $
Other 62,194 62,194
Total Revenues 62,588 62,588
Expenditure s
Current:
General government 62,588 62,588
Total Expenditures 62,588 62,588
Net change in fund balance
Fund Balances - Beginning
Fund Balances - Ending S s 5 $
91
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-PARK DONATION
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 994 $ 258 $ (736) $ 203
Other 104,025 111,529 7,504 163,096
Total Revenues 105,019 111,787 6,768 163,299
Expenditure s
Current:
Parks and recreation 141,758 133,052 8,706 76,882
Capital outlay 5,245
Total Expenditures 141,758 133,052 8,706 82,127
Net change in fund balance (36,739) (21,265) 15,474 81,172
Fund Balances -Beginning 189,604 189,604 108,432
Fund Balances -Ending S 152,865 S 168,339 S 15,474 S 189,604
92
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-POLICE SEIZURE
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 351 $ 352 $ 1 $ 372
Other 56,162 118,233 62,071 43,191
Total Revenues 56,513 118,585 62,072 43,563
Expenditures
Current:
Public safety 99,479 72,342 27,137 50,639
Capital outlay 46,000 46,000 29,883
Total Expenditures 145,479 118,342 27,137 80,522
Net change in fund balance (88,966) 243 89,209 (36,959)
Fund Balances -Beginning 241,499 241,499 278,458
Fund Balances - Ending $ 152,533 S 241,742 S 89,209 $ 241,499
93
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-PARK AND RECREATION DEVELOPMENT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
,,'ith comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 1,202 $ 1,942 $ 740 $ 1,247
Other 223,879 292,379 68,500 243,803
Total Revenues 225,081 294,321 69,240 245,050
Expenditures
Current:
Parks and recreation 52,441
Capital outlay 181,523 35,590 145,933 256,392
Total Expenditures 181,523 35,590 145,933 308,833
Excess(deficiency)of
revenues over expenditures 43,558 258,731 215,173 (63,783)
Other Financing Sources (Uses)
Transfers out (66,500) (66,500)
Total Other Financing
Sources (Uses) (66,500) (66,500)
Net change in fund balance (22,942) 192,231 215,173 (63,783)
Fund Balances -Beginning 795,919 795,919 859,702
Fund Balances -Ending $ 772,977 $ 988,150 $ 215,173 $ 795,919
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CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-SIDEWALK
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 325 $ 351 $ 26 $ 308
Other 33,390 33,390 20,129
Total Revenues 33,715 33,741 26 20,437
Expenditures
Current:
Public works 1,890 (1,890)
Total Expenditures 1,890 (1,890)
Excess(deficiency)of
revenues over expenditures 33,715 31,851 (1,864) 20,437
Other Financing Sources (Uses)
Transfers out (14,652) (14,652)
Total Other Financing
Sources (Uses) (14,652) (14,652)
Net change in fund balance 19,063 17,199 (1,864) 20,437
Fund Balances -Beginning 225,800 225,800 205,363
Fund Balances -Ending $ 244,863 $ 242,999 $ (1,864) $ 225,800
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CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-GRANT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 11 $ $ (11) $ 27
Intergovernmental 1,383,649 848,339 (535,310) 814,545
Other 12,292
Total Revenues 1,383,660 848,339 (535,321) 826,864
Expenditures
Current:
General government 21,200 11,993 9,207
Public safety 95,056 41,936 53,120 57,282
Community service 87,132 27,641 59,491 93,441
Parks and recreation 3,741
Capital outlay 264,656 112,061 152,595 15,659
Total Expenditures 468,044 193,631 274,413 170,123
Excess(deficiency)of
revenues over expenditures 915,616 654,708 (260,908) 656,741
Other Financing Sources (Uses)
Transfers in 20,748
Transfers out (936,017) (631,510) 304,507 (659,196)
Total other financing
sources (uses) (936,017) (631,510) 304,507 (638,448)
Net change in fund balance (20,401) 23,198 43,599 18,293
Fund Balances -Beginning 46,304 46,304 28,011
Fund Balances -Ending $ 25,903 $ 69,502 S 43,599 S 46,304
96
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-TRAFFIC IMPACT IMPROVEMENT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 2,000 $ 2,488 $ 488 $ 1,006
Other 40,850 40,850 204,689
Total Revenues 42,850 43,338 488 205,695
Other Financing Sources/(Uses)
Transfers out (10,625) (10,625) (157,907)
Total Other Financing
Sources (Uses) (10,625) (10,625) (157,907)
Net change in fund balance 32,225 32,713 488 47,788
Fund Balances - Beginning 639,896 639,896 592,108
Fund Balances - Ending S 672,121 $ 672,609 $ 488 $ 639,896
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97
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-JUVENILE MANAGEMENT
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Fines and Forfeitures $ 37,164 $ 36,066 $ (1,098) $ 69,603
Investment earnings 85 86 1 70
Total Revenues 37,249 36,152 (1,097) 69,673
Expenditure s
Current:
Community services 44,092 43,139 953 44,081
Total Expenditures 44,092 43,139 953 44,081
Net change in fund balance (6,843) (6,987) (144) 25,592
Fund Balances - Beginning 60,499 60,499 34,907
Fund Balances - Ending $ 53,656 S 51.512 S 144 _S 60,499
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98
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CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-CAPITAL PROJECTS
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenue s
Investment earnings $ 24,854 $ 24,804 $ (50) $ 18,070
Intergovernmental 7,373,681 712,409 (6,661,272) 3,593,783
Other income 1,980,716 990,299 (990,417) 4,116,743
Total Revenues 9,379,251 1,727,512 (7,651,739) 7,728,596
Expenditure s
Current:
Public works 371,081 172,618 198,463 309,833
Debt Service
Interest and other charges 385,000 111,564 273,436 324,993
Capital outlay 37,644,848 10,747,763 26,897,085 17,487,825
Total Expenditure s 38,400,929 11,031,945 27,368,984 18,122,651
Excess(deficiency) of revenues
over expenditures (29,021,678) (9,304,433) 19,717,245 (10,394,055)
Other Financing Sources (Uses)
Issuance of debt 15,574,401 10,690,000 (4,884,401) 12,060,000
Bond premium 1,005,606 1,005,606 331,309
Transfers in 940,626 630,874 (309,752) 421,615
Transfers out (1,942,825) (1,942,825) (1,659,245)
Net change in fund balance (13,443,870) 1,079,222 14,523,092 759,624
Fund Balances -Beginning 14,535,587 14,535,587 13,775,963
Fund Balances - Ending $ 1,091,717 $ 15,614,809 S 14,523,092 $ 14,535,587
99
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-EDUCATIONAL TV
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals for the year ended September 30,2013
2014
Variance
Positive/
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 407 $ 473 $ 66 $ 204
Franchise taxes 265,000 269,915 4,915 240,378
Total Revenues 265,407 270,388 4,981 240,582
Expenditures
Current:
Community services 36,390 37,877 (1,487) 19,881
Capital outlay 10,156 5,601 4,555 44,813
Total Expenditures 46,546 43,478 3,068 64,694
Net change in fund balance 218,861 226,910 8,049 175,888
Fund Balances - Beginning 260,514 260,514 84,626
Fund Balances - Ending $ 479,375 $ 487,424 $ 8,049 $ 260,514
100
CITY OF PEARLAND,TEXAS
SPECIAL REVENUE FUND-U OF H
SCHEDULE OF REVENUES,EXPENDITURES,AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended September 30,2014
with comparative actual totals jor the year ended September 30,2013
2014
Variance
Positive /
Final Budget Actual (Negative) 2013
Revenues
Investment earnings $ 370 $ 370 $ $ 61
Intergovernmental 249,889 237,528 (12,361) 186,970
Other 85,523 81,786 (3,737) 338,511
Total Revenues 335,782 319,684 (16,098) 525,542
Expenditure s
Current:
Parks and recreation 340,935 325,052 15,883 316,828
Total Expenditures 340,935 325,052 15,883 316,828
Excess(deficiency)of
revenues over expenditures (5,153) (5,368) (215) 208,714
Other Financing Sources (Uses)
Transfers in 5,483 5,717 234 34,670
Transfers out (34,670)
Total Other Financing Sources (Uses) 5,483 5,717 234
Net change in fund balance 330 349 19 208,714
Fund Balances - Beginning 239,779 239,779 31,065
Fund Balances - Ending S 240.109 S 240.128 $ 19 S 239,779
101
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102
Long-Term Debt Amortization Schedules
103
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30,2014
Certificates of Obligation,Series 2004 Permanent Improvement&Refunding Bonds,
Series 2005
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 710,000 $ 14,200 $ 724,200 $ 2,010,000 $ 603,428 $ 2,613,428
2016 940,000 529,678 1,469,678
2017 385,000 498,478 883,478
2018 445,000 481,878 926,878
2019 170,000 469,493 639,493
2020 170,000 462,501 632,501
2021 175,000 455,320 630,320
2022 180,000 447,820 627,820
2023 390,000 435,610 825,610
2024 1,185,000 397,600 1,582,600
2025 1,245,000 336,850 1,581,850
2026 1,310,000 272,975 1,582,975
2027 1,355,000 209,738 1,564,738
2028 1,810,000 134,000 1,944,000
2029 1,775,000 44,375 1,819,375
2030
2031
2032
2033
2034
2035
2036
2037
2038
$ 710,000 $ 14,200 $ 724,200 $ 13,545,000 $ 5,779,741 $ 19,324,741
Certificates of Obligation,Series 2006 Permanent Improvement&Refunding Bonds,
Series 2006
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 370,000 $ 174,685 $ 544,685 $ 430,000 $ 458,756 $ 888,756
2016 395,000 152,985 547,985 445,000 440,978 885,978
2017 405,000 134,263 539,263 460,000 422,025 882,025
2018 405,000 117,405 522,405 480,000 402,050 882,050
2019 108,900 108,900 1,335,000 361,813 1,696,813
2020 108,900 108,900 370,000 322,525 692,525
2021 108,900 108,900 395,000 303,400 698,400
2022 108,900 108,900 420,000 283,025 703,025
2023 108,900 108,900 535,000 259,150 794,150
2024 108,900 108,900 535,000 232,400 767,400
2025 108,900 108,900 565,000 204,900 769,900
2026 108,900 108,900 595,000 175,900 770,900
2027 765,000 91,688 856,688 630,000 146,063 776,063
2028 805,000 56,363 861,363 920,000 109,250 1,029,250
2029 850,000 19,125 869,125 1,840,000 43,700 1,883,700
2030
2031
2032
2033
2034
2035
2036
2037
2038
$ 3 995 000 $ 1 617 713 $ 5,612,713 $ 9,955,000 S 4,165,934 $ 14,120,934
104
Page 1 of 4
Certificates of Obligation,Series 2007 Permanent Improvement& Refunding Bonds,
Series 2007
Fiscal Year Principal Interest Total Principal Intere st Total
2015 $ 350,000 $ 990,588 S 1,340,588 $ 2,685,000 $ 2,924,025 $ 5,609,025
2016 400,000 970,900 1,370,900 2,345,000 2,791,563 5,136,563
2017 450,000 948,588 1,398,588 2,460,000 2,671,438 5,131,438
2018 1,005,000 910,394 1,915,394 2,220,000 2,554,438 4,774,438
2019 1,060,000 856,188 1,916,188 3,830,000 2,403,188 6,233,188
2020 1,115,000 799,094 1,914,094 5,190,000 2,190,663 7,380,663
2021 1,170,000 739,113 1,909,113 5,395,000 1,952,500 7,347,500
2022 1,230,000 676,113 1,906,113 5,610,000 1,704,888 7,314,888
2023 1,295,000 609,831 1,904,831 5,005,000 1,466,050 6,471,050
2024 1,360,000 540,138 1,900,138 5,230,000 1,235,763 6,465,763
2025 1,430,000 466,900 1,896,900 3,835,000 1,034,197 4,869,197
2026 1,500,000 389,988 1,889,988 3,845,000 866,197 4,711,197
2027 1,580,000 324,938 1,904,938 4,010,000 686,850 4,696,850
2028 1,660,000 272,288 1,932,288 2,290,000 537,225 2,827,225
2029 1,745,000 216,956 1,961,956 2,370,000 426,550 2,796,550
2030 1,540,000 163,575 1,703,575 2,590,000 308,750 2,898,750
2031 1,600,000 104,550 1,704,550 2,620,000 185,013 2,805,013
2032 1,660,000 35,275 1,695,275 2,585,000 61,394 2,646,394
2033
2034
2035
2036
2037
2038
$ 22,150,000 S 1 0,015,413 $ 32,165,413 $ 64,115,000 26,000,688 S 90,115,688
Certificates of Obligation,Series 2008 Permanent Improvement Bonds,Series 2008
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 145,000 S 393,828 $ 538,828 $ 310,000 $ 1,025,025 S 1,335,025
2016 150,000 388,019 538,019 325,000 1,009,150 1,334,150
2017 160,000 381,819 541,819 340,000 992,525 1,332,525
2018 165,000 375,319 540,319 360,000 975,025 1,335,025
2019 185,000 368,319 553,319 405,000 955,900 1,360,900
2020 195,000 360,719 555,719 425,000 934,619 1,359,619
2021 205,000 352,591 557,591 445,000 911,781 1,356,781
2022 215,000 343,794 558,794 470,000 887,763 1,357,763
2023 225,000 334,388 559,388 490,000 861,950 1,351,950
2024 240,000 324,300 564,300 515,000 834,313 1,349,313
2025 250,000 313,550 563,550 545,000 805,163 1,350,163
2026 290,000 301,525 591,525 625,000 772,988 1,397,988
2027 305,000 287,375 592,375 660,000 737,650 1,397,650
2028 320,000 271,750 591,750 695,000 700,388 1,395,388
2029 335,000 255,375 590,375 730,000 664,850 1,394,850
2030 1,335,000 213,625 1,548,625 4,530,000 543,669 5,073,669
2031 1,675,000 138,375 1,813,375 4,705,000 330,109 5,035,109
2032 1,930,000 48,250 1,978,250 4,785,000 110,653 4,895,653
2033
2034
2035
2036
2037
2038
$ 53253 5) $ 5,452,919 $ 13.777,919 $ 21.36■.155u $ 14.053.519 5 35.413.519
105
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CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30,2014
Certificates of Obligation,Series 2009 Certificates of Obligation,Series 2009A
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 235,000 $ 339,953 $ 574,953 S 640,000 S 341,765 $ 981,765
2016 240,000 332,903 572,903 640,000 324,965 964,965
2017 245,000 325,703 570,703 640,000 301,765 941,765
2018 255,000 317,128 572,128 640,000 275,403 915,403
2019 320,000 307,565 627,565 640,000 252,560 892,560
2020 325,000 294,765 619,765 635,000 231,361 866,361
2021 340,000 281,765 621,765 640,000 210,163 850,163
2022 350,000 268,165 618,165 640,000 187,763 827,763
2023 365,000 253,815 618,815 640,000 164,403 804,403
2024 385,000 238,303 623,303 640,000 140,563 780,563
2025 400,000 221,363 621,363 635,000 116,339 751,339
2026 420,000 203,363 623,363 640,000 91,315 731,315
2027 440,000 183,938 623,938 640,000 65,715 705,715
2028 465,000 163,038 628,038 635,000 39,898 674,898
2029 485,000 139,788 624,788 640,000 13,440 653,440
2030 415,000 116,750 531,750
2031 410,000 96,000 506,000
2032 475,000 75,500 550,500
2033 505,000 51,750 556,750
2034 530,000 26,500 556,500
2035
2036
2037
2038 _
S 7.605.000 $ 4,238,050 $ 11,843,050 S 9,585,000 S 2,757,41; I'.; i I•
Permanent Improvement and Refunding Bonds, Permanent Improvement Bonds,Series 2010A
Series 2009
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 405,000 S 626,754 $ 1,031,754 S 370,000 $ 399,553 S 769,553
2016 420,000 615,918 1,035,918 380,000 388,353 768,353
2017 435,000 599,267 1,034,267 390,000 378,703 768,703
2018 455,000 578,154 1,033,154 400,000 366,853 766,853
2019 590,000 557,888 1,147,888 415,000 354,628 769,628
2020 615,000 537,863 1,152,863 425,000 342,028 767,028
2021 635,000 517,075 1,152,075 440,000 329,053 769,053
2022 655,000 494,490 1,149,490 455,000 315,059 770,059
2023 680,000 470,120 1,150,120 465,000 300,109 765,109
2024 705,000 444,321 1,149,321 485,000 284,065 769,065
2025 735,000 416,953 1,151,953 500,000 265,578 765,578
2026 765,000 387,505 1,152,505 520,000 246,153 766,153
2027 795,000 356,305 1,151,305 540,000 226,603 766,603
2028 825,000 323,492 1,148,492 560,000 205,558 765,558
2029 865,000 288,415 1,153,415 585,000 182,938 767,938
2030 835,000 249,375 1,084,375 610,000 159,038 769,038
2031 945,000 204,875 1,149,875 635,000 133,344 768,344
2032 1,090,000 154,000 1,244,000 660,000 105,825 765,825
2033 1,235,000 95,875 1,330,875 690,000 77,138 767,138
2034 1,300,000 32,500 1,332,500 720,000 47,175 767,175
2035 750,000 15,938 765,938
2036
2037
2038
S 14,985,000 $ 7,951,145 S 22,936.145 S 10.995.00(1 $ 5,123,684 $ 16,118,684
106
Page 2 of 4
Permanent Improvement Bonds,Series 2010B Permanent Improvement Bonds,Series 2011
Fiscal Year Principal Interest Total Principal interest Total
2015 $ 225,000 $ 21,150 $ 246,150 $ 150,000 5 190,131 $ 340,131
2016 225,000 14,400 239,400 155,000 184,031 339,031
2017 240,000 6,300 246,300 165,000 177,631 342,631
2018 90,000 1,350 91,350 170,000 170,931 340,931
2019 175,000 164,031 339,031
2020 185,000 156,831 341,831
2021 190,000 149,331 339,331
2022 200,000 141,531 341,531
2023 205,000 134,456 339,456 •
2024 210,000 128,231 338,231
2025 220,000 121,506 341,506
2026 225,000 114,275 339,275
2027 235,000 106,506 341,506
2028 245,000 98,106 343,106
2029 250,000 88,819 338,819
2030 260,000 78,619 338,619
2031 275,000 67,919 342,919
2032 285,000 56,719 341,719
2033 295,000 45,119 340,119
2034 305,000 33,119 338,119
2035 320,000 20,419 340,419
2036 335,000 6,909 341,909
2037
2038
$ 780.000 $ 43200 $ 823,200 $5,55.000 $ 2,435,172 $ 7,490,172
Certificates of Obligation,Series 2011 Permanent Improvement&Refunding Bonds,
Series 2012
Fiscal Year Principal Intere st Total Principal Intere st Total
2015 $ 210,000 $ 28,424 $ 238,424 S 685,000 $ 1,552,550 $ 2,237,550
2016 210,000 24,035 234,035 1,955,000 1,489,975 3,444,975
2017 205,000 19,698 224,698 2,625,000 1,388,600 4,013,600
2018 210,000 15,362 225,362 2,690,000 1,282,300 3,972,300
2019 210,000 10,973 220,973 3,210,000 1,164,300 4,374,300
2020 210,000 6,584 216,584 2,200,000 1,056,100 3,256,100
2021 210,000 2,195 212,195 2,340,000 965,300 3,305,300
2022 2,680,000 864,900 3,544,900
2023 2,840,000 754,500 3,594,500
2024 2,720,000 643,300 3,363,300
2025 4,520,000 521,100 5,041,100
2026 4,540,000 385,200 4,925,200
2027 3,035,000 271,575 3,306,575
2028 5,355,000 145,725 5,500,725
2029 2,180,000 32,700 2,212,700
2030
2031
2032
2033
2034
2035
2036
2037
2038
S 1,465,000 $ 107,269 S 1,572,269 $ 43,575,000 $ 12,518,125 $ 56,093,125
107
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT
BY MATURITY DATE
September 30,2014
BC MUD#1 BC MUD#4
Tax and Revenue Bonds,Series 2007 Unlimited Tax Bonds,Series 2011
Fiscal Year Principal Interest Total Principal Intere st Total
2015 $ 70,000 $ 22,958 $ 92,958 S 130,000 $ 94,300 S 224,300
2016 20,228 20,228 130,000 90,888 220,888
2017 20,228 20,228 130,000 87,313 217,313
2018 20,228 20,228 130,000 83,575 213,575
2019 20,228 20,228 130,000 79,350 209,350
2020 20,228 20,228 130,000 74,800 204,800
2021 20,228 20,228 130,000 69,925 199,925
2022 20,228 20,228 130,000 64,725 194,725
2023 20,228 20,228 130,000 59,444 189,444
2024 20,228 20,228 130,000 54,081 184,081
2025 20,228 20,228 130,000 48,475 178,475
2026 20,228 20,228 130,000 42,625 172,625
2027 20,228 20,228 130,000 36,645 166,645
2028 145,000 20,228 165,228 130,000 30,535 160,535
2029 155,000 13,920 168,920 130,000 24,360 154,360
2030 165,000 7,178 172,178 130,000 18,120 148,120
2031 130,000 11,750 141,750
2032 170,000 4,250 174,250
2033
2034
2035
2036
2037
2038
$ 5350(R) S 30'u13 $ 842.0)3 S 2,380,000 $ 975,160 .S 3355.I60
Permanent Improvement Bonds,Series 2013 Certificates of Obligation,Series 2013
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 295,000 $ 370,943 S 665,943 $ 85,000 $ 112,613 $ 197,613
2016 295,000 362,093 657,093 85,000 110,063 195,063
2017 305,000 351,568 656,568 85,000 107,513 192,513
2018 305,000 339,368 644,368 85,000 104,963 189,963
2019 320,000 326,868 646,868 90,000 102,338 192,338
2020 320,000 314,068 634,068 100,000 98,988 198,988
2021 330,000 301,068 631,068 100,000 94,488 194,488
2022 330,000 287,868 617,868 100,000 89,488 189,488
2023 340,000 274,468 614,468 100,000 84,488 184,488
2024 350,000 260,668 610,668 100,000 79,488 179,488
2025 360,000 246,468 606,468 110,000 74,238 184,238
2026 370,000 231,868 601,868 110,000 69,288 179,288
2027 370,000 217,068 587,068 110,000 64,888 174,888
2028 380,000 202,068 582,068 110,000 60,488 170,488
2029 390,000 186,424 576,424 120,000 55,738 175,738
2030 400,000 169,880 569,880 120,000 50,563 170,563
2031 410,000 152,411 562,411 120,000 45,313 165,313
2032 420,000 134,203 554,203 120,000 40,063 160,063
2033 430,000 115,288 545,288 130,000 34,513 164,513
2034 440,000 95,713 535,713 130,000 28,663 158,663
2035 450,000 75,688 525,688 130,000 22,813 152,813
2036 460,000 55,213 515,213 140,000 16,650 156,650
2037 480,000 33,763 513,763 140,000 10,175 150,175
2038 490,000 11,331 501,331 150,000 3,469 153,469
$ 9,040,000 $ 5,116,356 S 14,156,356 $ 2,670,000 $ 1,561,281 $ 4,231,281
108
Page 3 of 4
Permanent Improvement& Refunding Bonds, Sales Tax Revenue Bonds,Series 2005
Series 2014
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 535,000 $ 1,685,531 S 2,220,531 $ 460,000 $ 305,938 $ 765,938
2016 1,735,000 1,662,831 3,397,831 480,000 287,538 767,538
2017 1,020,000 1,630,181 2,650,181 505,000 263,538 768,538
2018 1,085,000 1,603,231 2,688,231 530,000 238,288 768,288
2019 1,240,000 1,573,031 2,813,031 555,000 211,788 766,788
2020 2,310,000 1,508,281 3,818,281 575,000 189,588 764,588
2021 2,415,000 1,401,706 3,816,706 600,000 166,588 766,588
2022 2,510,000 1,284,831 3,794,831 625,000 141,988 766,988
2023 3,165,000 1,149,206 4,314,206 650,000 116,363 766,363
2024 2,710,000 1,002,331 3,712,331 675,000 89,550 764,550
2025 2,830,000 863,831 3,693,831 705,000 61,200 766,200
2026 3,055,000 716,706 3,771,706 735,000 31,238 766,238
2027 4,120,000 537,331 4,657,331
2028 3,145,000 385,191 3,530,191
2029 5,860,000 218,850 6,078,850
2030 535,000 90,950 625,950
2031 535,000 69,550 604,550
2032 535,000 48,150 583,150
2033 535,000 28,088 563,088
2034 535,000 9,363 544,363
2035
2036
2037
2038
$ 40.410.000 S I'..4O.172 S 57.879.1„ S 7.01S.000 $ 2.101600 $ 9.19s 600
Sales Tax Revenue Bonds,Series 2006 Sides Fax Revenue Bonds.Series 211111
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 230,000 $ 422,919 $ 652,919 $ 275,000 $ 339,983 $ 614,983
2016 240,000 411,419 651,419 290,000 326,101 616,101
2017 255,000 401,219 656,219 300,000 311,462 611,462
2018 265,000 390,381 655,381 320,000 296,318 616,318
2019 280,000 378,788 658,788 340,000 280,164 620,164
2020 300,000 366,538 666,538 355,000 263,001 618,001
2021 310,000 353,038 663,038 375,000 245,080 620,080
2022 325,000 339,088 664,088 400,000 226,150 626,150
2023 345,000 322,838 667,838 420,000 205,958 625,958
2024 365,000 305,588 670,588 440,000 184,757 624,757
2025 385,000 287,338 672,338 465,000 162,546 627,546
2026 405,000 268,088 673,088 495,000 139,072 634,072
2027 1,190,000 247,838 1,437,838 525,000 114,085 639,085
2028 1,255,000 188,338 1,443,338 550,000 87,583 637,583
2029 1,320,000 128,725 1,448,725 575,000 59,819 634,819
2030 1,390,000 66,025 1,456,025 610,000 30,793 640,793
2031
2032
2033
2034
2035
2036
2037
2038
$ 8,860,000 $ 4,878,163 $ 13,738,163 $ 6,735,000 $ 3,272,871 $ 10,007,871
109
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110
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF GOVERNMENTAL ACTIVITY LONG-TERM DEBT I'ape 4 of 4
BY MATURITY DATE
September 30,2014
Development Authority of Pearland Development Authority of Pearland
Tax Increment Contract Revenue Tax Increment Contract Revenue Bonds,
and Refunding Bonds,Series 2012 Series 2013
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 2,885,000 $ 1,495,551 $ 4,380,551 $ 365,000 $ 328,744 $ 693,744
2016 2,970,000 1,406,981 4,376,981 380,000 314,984 694,984
2017 3,070,000 1,315,802 4,385,802 385,000 300,658 685,658
2018 3,160,000 1,221,553 4,381,553 405,000 286,143 691,143
2019 3,255,000 1,124,541 4,379,541 420,000 270,875 690,875
2020 3,120,000 1,024,613 4,144,613 445,000 255,041 700,041
2021 3,215,000 928,829 4,143,829 465,000 238,264 703,264
2022 3,030,000 830,128 3,860,128 735,000 220,734 955,734
2023 3,130,000 737,107 3,867,107 560,000 193,024 753,024
2024 3,225,000 641,016 3,866,016 615,000 171,912 786,912
2025 3,320,000 542,009 3,862,009 670,000 148,727 818,727
2026 3,425,000 440,085 3,865,085 725,000 123,468 848,468
2027 3,530,000 334,937 3,864,937 785,000 96,135 881,135
2028 3,635,000 226,566 3,861,566 850,000 66,541 916,541
2029 3,745,000 114,972 3,859,972 915,000 34,496 949,496
2030 j
2031
2032
2033
2034
2035
2036
2037
2038
$ 48.715,000 $ 12,384,687 S 61,099,687 $ 8,720,000 S 3,049,742 $ 11,769,742
111
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT
BY MATURITY DATE
September 30,2014
Water&Sewer Revenue Bonds, Water&Sewer Revenue Bonds,
Series 1999 Series 2006
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 135,000 $ 118,680 $ 253,680 S 710,000 $ 499,519 $ 1,209,519
2016 145,000 112,470 257,470 745,000 467,569 1,212,569
2017 540,000 105,800 645,800 100,000 434,044 534,044
2018 565,000 80,960 645,960 100,000 429,744 529,744
2019 585,000 54,970 639,970 100,000 425,369 525,369
2020 610,000 28,060 638,060 100,000 420,869 520,869
2021 100,000 416,244 516,244
2022 100,000 411,619 511,619
2023 100,000 406,994 506,994
2024 100,000 402,369 502,369
2025 100,000 397,744 497,744
2026 1,150,000 393,119 1,543,119
2027 1,205,000 338,494 1,543,494
2028 1,265,000 278,244 1,543,244
2029 1,330,000 214,994 1,544,994
2030 1,395,000 146,831 1,541,831
2031 1,470,000 75,338 1,545,338
2032
2033
2034
2035
2036
2037
S 2.iso.000 S ;0).940 S 3O8)`)40 S 10.170.000 $ 6.159.100 S 16329.100
Water&Sewer Revenue Bonds, Water&Sewer Revenue Bonds,
Series 2007 Series 2008
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 965,000 $ 1,619,413 $ 2,584,413 S 275,000 5 641,215 $ 916,215
2016 1,010,000 1,566,338 2,576,338 290,000 628,840 918,840
2017 950,000 1,510,788 2,460,788 315,000 615,790 930,790
2018 995,000 1,458,538 2,453,538 340,000 601,615 941,615
2019 1,045,000 1,403,813 2,448,813 370,000 586,315 956,315
2020 1,095,000 1,348,950 2,443,950 395,000 569,665 964,665
2021 1,155,000 1,294,200 2,449,200 420,000 551,890 971,890
2022 1,210,000 1,236,450 2,446,450 440,000 532,990 972,990
2023 1,275,000 1,175,950 2,450,950 460,000 514,840 974,840
2024 2,295,000 1,112,200 3,407,200 490,000 495,520 985,520
2025 2,480,000 997,450 3,477,450 510,000 474,450 984,450
2026 3,120,000 873,450 3,993,450 540,000 448,950 988,950
2027 3,280,000 717,450 3,997,450 560,000 421,950 981,950
2028 3,440,000 553,450 3,993,450 595,000 393,950 988,950
2029 3,615,000 398,650 4,013,650 600,000 364,200 964,200
2030 3,795,000 272,125 4,067,125 580,000 334,200 914,200
2031 3,980,000 139,300 4,119,300 560,000 305,200 865,200
2032 1,890,000 277,200 2,167,200
2033 1,980,000 182,700 2,162,700
2034 2,080,000 93,600 2,173,600
2035
2036
2037
S 35,705,000 5 17,678,513 $ 53,383,513 $ 13,690,000 5 9.035.080 $ 22,725,080
112
Page 1 of 2
Water&Sewer Revenue Bonds, Permanent Improvement and Refunding Bonds,
Series 2009 Series 2009(water/sewer portion)
Fiscal Year Principal Interest Total Principal Interest Total
2015 $ 385,000 $ 547,363 $ 932,363 $ 1,195,000 $ 243,713 $ 1,438,713
2016 400,000 535,813 935,813 1,220,000 212,000 1,432,000
2017 410,000 522,813 932,813 2,065,000 143,600 2,208,600
2018 420,000 508,975 928,975 2,155,000 45,988 2,200,988
2019 435,000 493,750 928,750
2020 450,000 476,350 926,350
2021 465,000 458,350 923,350
2022 485,000 438,588 923,588
2023 505,000 416,763 921,763
2024 520,000 393,406 913,406
2025 545,000 368,056 913,056
2026 570,000 340,806 910,806
2027 600,000 311,594 911,594
2028 630,000 280,844 910,844
2029 665,000 247,769 912,769
2030 700,000 212,025 912,025
2031 730,000 173,525 903,525
2032 765,000 133,375 898,375
2033 815,000 91,300 906,300
2034 845,000 46,475 891,475
2035
2036
2037
S 11.3-10000 S 6997933 S IS.33793S S 6.635.000 S 6453(X) S 7.250300
Water&Sewer Revenue Bonds, Water&Sewer Revenue Bonds,
Series 2010A Series 2010B
Fiscal Year Principal Interest Total Principal Interest Total
2015 S 405,000 $ 498,581 S 903,581 $ 355,000 $ 289,544 $ 644,544
2016 410,000 490,481 900,481 370,000 282,444 652,444
2017 425,000 480,231 905,231 385,000 273,194 658,194
2018 440,000 467,481 907,481 405,000 261,644 666,644
2019 455,000 453,731 908,731 425,000 248,988 673,988
2020 475,000 438,944 913,944 445,000 235,175 680,175
2021 495,000 422,319 917,319 1,750,000 219,600 1,969,600
2022 515,000 402,519 917,519 1,830,000 149,600 1,979,600
2023 535,000 381,919 916,919 1,910,000 76,400 1,986,400
2024 555,000 360,519 915,519
2025 580,000 338,319 918,319
2026 600,000 315,119 915,119
2027 625,000 291,119 916,119
2028 650,000 265,338 915,338
2029 680,000 237,713 917,713
2030 710,000 208,813 918,813
2031 740,000 177,750 917,750
2032 755,000 144,450 899,450
2033 785,000 110,475 895,475
2034 825,000 75,150 900,150
2035 845,000 38,025 883,025
2036
2037
S 12505.000 $ 6.598.994 S 19.103.994 $ 7.875.000 $ 2,036,588 S 9,911,588
113
CITY OF PEARLAND,TEXAS
COMBINING SCHEDULE OF ENTERPRISE FUND LONG-TERM DEBT Page 2 of-2
BY MATURITY DATE
September 30,2014
Permanent Improvement and Refunding Bonds, Water&Sewer Revenue Bonds,Series 2012
Series 2012(water/sewer portion)
Principal Interest Total Principal Interest Total
2015 $ 335,000 $ 231,100 $ 566,100 $ 345,000 $ 225,155 $ 570,155
2016 340,000 215,900 555,900 355,000 218,255 573,255
2017 350,000 200,400 550,400 755,000 211,155 966,155
2018 360,000 186,200 546,200 765,000 196,055 961,055
2019 365,000 171,700 536,700 780,000 180,755 960,755
2020 370,000 157,000 527,000 800,000 165,155 965,155
2021 370,000 142,200 512,200 230,000 141,155 371,155
2022 385,000 127,100 512,100 230,000 134,255 364,255
2023 395,000 111,500 506,500 240,000 127,355 367,355
2024 1,480,000 74,000 1,554,000 230,000 120,155 350,155
2025 1,480,000 22,200 1,502,200 225,000 113,255 338,255
2026 175,000 106,505 281,505
2027 180,000 101,080 281,080
2028 185,000 95,500 280,500
2029 190,000 89,488 279,488
2030 195,000 83,313 278,313
2031 200,000 76,975 276,975
2032 300,000 70,225 370,225
2033 315,000 60,100 375,100
2034 325,000 49,075 374,075
2035 335,000 37,700 372,700
2036 345,000 25,556 370,556
2037 360,000 13,050 373,050
$ 6,230,000 $ 1,639,300 $ 7,869,300 $ 8,060,000 $ 2,641,271 $ 10,701,271
114
Statistical Section
(Unaudited)
115
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116
Unaudited Statistical Section
This part of the City's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government's overall financial health.
Contents Page
Financial Trends 118
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 130
These schedules contain information to help the reader assess the government's most
significant local revenue sources, the property tax and sales tax.
Debt Capacity 140
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue
additional debt in the future.
Demographic and Economic Information 145
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the government's financial activities take place.
Operating Information 148
These schedules contain service and infrastructure data to help the reader understand how
the information in the government's financial report relates to the services the government
provides and the activities it performs.
Sources:Unless otherwise noted,the information in these schedules is derived from the comprehensive
annual fmancial reports for the relevant year.
117
CITY OF PEARLAND,TEXAS
NET POSITION BY COMPONENT
Last Ten Fiscal Years
Amounts in(000's)
(Accrual Basis ofAccounting)
2005 2006 2007 2008 2009
Governmental Activities
Net investment in capital assets $396,619 $402,103 $400,522 $410,002 $429,054
Restricted 6,862 8,085 10,130 10,864 10,615
Unrestricted 5,785 8,917 11,809 10,903 13,330
Total governmental activities
net position $409,266 $419,105 $422,461 $431,769 $452,999
Business-type activities
Net investment in capital assets $127,144 $130,648 $126,779 $138,679 $146,150
Restricted 7,027 10,129 24,258 16,094 11,965
Unrestricted 552 700 1,638 3,406 9,256
Total business-type activities
net position $134,723 $141,477 $152,675 $158,179 $167,371
Primary government
Investment in capital assets $523,763 $532,751 $527,301 $548,681 $575,204
Restricted 13,889 18,214 34,388 26,958 22,580
Unrestricted 6,337 9,617 13,447 14,309 22,586
Total primary government
net position $543,989 $560,582 $575,136 $589,948 $620,370
(1)Due to implementation of GASB 61,the City's component units are now considered
blended component units versus discretely presented as in years prior to fiscal year 2013.
Fiscal year 2012 has been restated for comparison purposes.
(2)Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012
and 2013 have been restated for comparison purposes.
118
2010 2011 2012(2) 2013(1x2) 2014
$422,643 $413,439 $367,747 $420,009 $430,286
18,020 16,462 36,548 34,666 45,826
13,692 14,543 (6,868) (5,534) (13,010)
$454,355 $444,444 $397,427 $449,141 $463,102
$144,244 $156,629 $156,888 $165,915 $174,955
17,587 5,603 9,821 9,542 14,484
11,942 13,910 12,439 16,704 15,612
$173,773 $176,142 $179,148 $192,161 $205,050
$566,887 $570,068 $524,635 $585,924 $605,241
35,607 22,065 46,369 44,208 60,309
25,634 28,453 5,571 11,170 2,602
$628,128 $620,586 $576,575 $641,302 $668,152
119
CITY OF PEARLAND,TEXAS
CHANGES IN NET POSITION
Last Ten Fiscal Years
Amounts in(000's)
(Accrual Basis of Accounting)
2005 2006 2007 2008
Expenses
Governmental activities
General Government $ 8,714 $ 8,574 $ 8,660 $ 11,161
Public Safety 11,857 12,564 14,655 17,684
Public Works 28,858 26,914 24,041 24,532
Community Services 2,939 2,903 3,113 3,336
Parks and Recreation 4,131 4,882 7,157
Economic Development
Interest on long-term debt 5,115 6,559 9,070 12,266
Total government activities expenses 57,483 61,645 64,421 76,136
Business-type activities:
Water and Sewer 17,624 20,531 21,076 22,570
Solid Waste 5,218 6,024
Total business-type activities: 17,624 20.531 26,294 28,594
Total primary government expenses S 75,107 S 82.176 $ 90,715 $104,730
Program Revenue
Governmental activities
Charges for services:
General Government $ 185 $ $ $
Public Safety 3,640 2,627 2,788 2,959
Public Works 7,221 4,331 195 103
Community Services 1,263 6,312 5,822 5,130
Parks and Recreation 825 818 936
Economic Development
Operating grants and contributions
General Government 2 1,239 1,659 3,951
Public Safety 673 III 154 230
Public Works 456 551
Community Services 479 55 34 129
Parks and Recreation 21 11 115
Capital grants and contributions
General Government 800
Public Safety 312 503
Public Works 6 15,743 8,690 15,263
Parks and Recreation 6 261
Total governmental activities program revenues 14,582 31,270 20,627 30,131
Business-type activities:
Charges for services
Water and Sewer 11,219 13,849 17,754 21,524
Solid Waste 5,218 6,038
Operating grants and contributions
Water and Sewer 474 385 315
Capital grants and contributions
Water and Sewer 8,365 13,434 12,621 5,869
Total business-type activities program revenues 19,585 27,757 35,978 33,746
Total primary government program revenues $ 34,167 $ 59,027 $ 56,605 $ 63,877
(1)Due to implementation of GASB 61,the City's component units are now considered blended
component units versus discretely presented as in years prior to fiscal year 2013.Fiscal year 2012 has
been restated for comparison purposes.
(2)Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and 2013 have
been restated for comparison purposes.
120
Page 1 of2
2009 2010 2011 2012(2) 2013(1)(2) 2014
$ 12,355 $ 13,439 $ 15,945 $ 13,334 $ 13,358 $ 12,241
22,438 24,268 23,042 27,403 28,944 32,130
26,893 35,679 31,130 28,510 31,690 38,579
3,290 3,323 3,254 4,267 3,807 4,687
7,240 7,699 8,062 9,264 9,524 6,896
26,311 17,411 26,498
11,647 13,738 13,142 11,572 10,534 16,225
83,863 98,146 94,575 120,661 115,268 137,255
25,439 27,157 29,192 29,392 31,289 32,444
7,106 7,089 7,285 7,528 8,324 6,664
32,545 34,246 36,477 36,920 39,613 39,108
$116,408 $132,392. $131,052 $157,581. $154,881 $176,363
$ 6,351 $ 6,351 $ $ 6,637 S 6,326 $ 6,637
3,524 3,296 3,679 4,206 7,410 2,793
35 10 18 43 3,096 322
4,755 4,312 4,632 5,855 3,264 7,375
672 906 2,027 2,080 2,209 2,290
413 414 430
4,913 5,215 5,488 6,045 44 440
420 641 407 711 603 434
375 207 675 53 1,388 7,612
202 159 366 311 108 337
450 424 462 542 182 474
180
279 98
26,092 29,800 10,330 18,743 52,921 29,269
4,653 100
52,721 51,419 28,084 45,739 78,145 58,413
26,617 24,961 28,664 27,535 29,008 28,929
6,766 7,313 7,258 7,654 8,175 7,008
2,464 70 61 205
6,125 8,611 4,215 8,118 16,273 17,677
41,972 40,955 40,198 43,512 53,456 53,614
$ 94,693 $ 92,374 $ 68,282 $ 89,251 $131,601 $112,027
121
CITY OF PEARLAND,TEXAS
CHANGES IN NET POSITION
Last Nine Fiscal Years*
Amounts in(000's)
(Accrual Basis of Accounting)
2005 2006 2007 2008
Net(Expense)/Revenue
Governmental activities $(42,901) $(30,375) $(43,794) $(46,005)
Business-type activities 1,961 7,226 9,684 5,152
Total primary government net expense $(40.940) S(23,149) S(34.110) S(40.853)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes $ 19,805 $ 21,845 $ 24,823 $ 29,492
Sales and use taxes 8,026 9,980 11,025 12,581
Franchise taxes 3,097 3,426 3,760 4,427
Investment earnings 1,863 2,991 4,943 4,572
Miscellaneous 828 740 1,539 2,911
Special item
Transfers 359 1,230 1,060 1,330
Total governmental activities $ 33,978 $ 40,212 $ 47,150 $ 55,313
Business-type activities:
Investment earnings $ 399 $ 758 $ 2,574 $ 1,669
Miscellaneous 12
Transfers (359) (1,230) (1,060) (1,330)
Total business-type activities 40 (472) 1,514 351
Total primary government $ 34,018 $ 39,740 $ 48,664 $ 55,664
Change in Net Position
Governmental activities $ (8,923) $ 9,837 $ 3,356 $ 9,308
Business-type activities 2,001 6,754 11,198 5,503
Total primary government $ (6,922) $ 16,591 $ 14,554 $ 14,811
(1)Due to implementation of GASB 61,the City's component units are now considered blended
component units versus discretely presented as in years prior to fiscal year 2013.Fiscal year 2012 has
been restated for comparison purposes.
(2)Restated due to implementation of GASB 65 in fiscal year 2014. Fiscal years 2012 and 2013 have
been restated for comparison purposes.
122
Page 2 of 2
2009 2010 2011 2012(2) 2013(1x2) 2014
$(31,142) $(46,727) $(66,491) $(74,922) $(37,123) $(78,842)
9,427 6,709 3,721 6,592 13,843 14,506
$(21.715) $(40.018) $(62,770) 8(68,330) $(23,280) 8(64,336)
$ 31,140 $ 32,963 $ 33,451 $ 52,230 $ 54,433 $ 57,378
14,218 13,578 13,983 22,969 24,942 27,295
5,075 5,426 5,605 5,670 5,999 6,484
1,376 253 157 134 155 254
6,294 1,028 1,854 1,554 1,701 2,398
(3,039)
621 1,186 1,475 2,269 1,607 2,031
$ 58,724 $ 54,434 $ 56,525 $ 84,826 $ 88,837 $ 92,801
$ 363 $ 100 $ 116 $ 68 $ 95 $ 139
23 779 9 444 682 274
(621) (1,186) (1,475) (2,269) (1,607) (2,030)
(235) (307) (1,350) (1,757) (830) (1,617)
$ 58,489 $ 54,127 $ 55,175 $ 83,069 $ 88,007 $ 91,184
$ 27,582 $ 7,707 $ (9,966) $ 9,904 $ 51,714 $ 13,960
9,192 6,402 2,371 4,835 13,013 12,889
$ 36.774 $ 14,109 $ (7595) $ 14,739 $ 64.727 $ 26,849
12;
CITY OF PEARLAND,TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in(000's)
(Modified Accrual Basis of Accounting)
2005 2006 2007 2008
General fund
Non-spendable $ 71 $ 84 $ 123 $ 181
Restricted
Assigned 552 581 4,698
Unassigned 8,132 9,961 12,932 8,647
Total General Fund $ 8,203 $ 10,597 $ 13,636 $ 13,526
All other governmental funds
Non-spendable $ $ $ $
Restricted
Debt service 3,855 4,658 6,552 6,835
Capital improvements 43,545 52,957 96,542 110,715
Public safety 348 453 591 583
Economic Development
Community development programs
Tourism 670 864 1,051 1,247
Parks and recreation 992 1,393 1,652 1,183
Capital projects -other 1,007 1,064 1,138 1,346
Other 238 247 114 629
Total other Governmental Funds $ 50,655 $ 61,636 $ 107,640 $ 122,538
(1)Due to implementation of GASB 61,the City's component units are now considered blended component
units versus discretely presented as in years prior to fiscal year 2013.
124
2009 2010 2011 2012 2013 (1) 2014
$ 119 $ 146 $ 130 $ 182 $ 158 $ 202
126
699 117 160 167 1,554 1,394
11,401 12,599 14,108 17,222 16,911 17,859
$ 12,219 S 12,862 $ 14,524 $ 17,571 $ 18,623 $ 19,455
$ $ $ $ $ 183 $ 209
7,246 6,705 5,160 4,992 5,192 5,951
62,467 30,893 23,461 13,776 14,536 17,519
699 612 541 702 715 390
20,777 23,814
1,344 1,394 1,452 1,821 2,267 2,994
1,094 1,214 1,143 968 985 168
1,146 962 810 797 866
85 79 87 215 638 918
$ 74,081 S 41,859 $ 32,654 $ 23,271 $ 46,159 $ 51,963
s �
125
CITY OF PEARLAND,TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Amounts in(000's)
(Modified Accrual Basis ofAccounting)
2005 2006 2007 2008
Revenues
Property taxes $ 19,745 $ 22,150 $ 24,525 $ 29,200
Sales and use taxes 8,026 9,980 11,025 12,581
Franchise fees 3,097 3,426 3,760 4,427
Licenses and permits 3,864 4,067 4,030 2,992
Fines and forfeitures 1,935 2,038 2,048 2,086
Charges for services 6,139 8,734 5,250 7,512
Investment earnings 1,863 2,991 4,938 4,568
Intergovernmental 2,382 7,852 14,463 3,731
Other 1,172 1,744 1,815 5,638
Total Revenues 48,223 62,982 71,854 72,735
Expenditures
General government 6,750 6,381 6,293 7,388
Public safety 11,081 12,870 14,598 19,604
Public works 10,450 9,728 6,278 7,536
Community services 2,747 3,787 3,102 3,426
Parks and recreation 3,358 4,908 6,605
Economic development
Debt service:
Principal 3,535 3,429 3,228 3,160
Interest and other charges 5,555 6,771 10,197 12,382
Capital outlay 28,661 36,706 28,530 27,777
Intergovernmental 1,084 1,684 2,169 3,434
Total Expenditures 69,863 84,714 79,303 91,312
Excess of revenues over(under)expenditures (21,640) (21,732) (7,449) (18,577)
Other Financing Sources(Uses)
Transfers in 4,870 5,852 4,596 4,912
Transfers out (4,510) (4,698) (3,536) (3,582)
Bonds issued 37,015 41,959 94,559 31,835
Payment to Escrow Agent
Capital leases 271 1,568
Other (15,926) (8,005) (40,695) 200
Total other Financing Sources(uses) 21,720 35,108 56,492 33,365
Net change in fund balances $ 80 $ 13,376 $ 49,043 $ 14,788
Debt service as a percentage of noncapital
expenditures 22.1% 21.2% 26.4% 24.5%
a Due to implementation of GASB 61,the City's component units are now considered blended component units
versus discretely presented as in years prior to fiscal year 2013.
126
2009 2010 2011 2012 2013' 2014
$ 31,349 $ 32,856 $ 33,454 $ 34,362 $ 54,475 $ 57,378
14,218 13,578 13,983 15,632 24,942 27,295
5,075 5,426 5,605 5,817 5,999 6,484
2,079 1,807 1,721 2,320 2,989 4,149
2,325 2,475 2,895 3,374 3,534 3,121
8,885 9,328 11,687 11,891 12,982 13,078
1,375 591 156 92 154 254
7,589 3,689 2,199 3,089 4,595 2,541
8,980 982 1,560 2,541 7,973 4,157
81,875 70,732 73,260 79,118 117,643 118,455
8,412 8,527 10,866 7,784 7,958 8,027
22,310 23,784 23,926 25,372 26,204 29,171
12,051 7,108 6,505 5,533 7,812 8,121
3,386 3,839 3,376 4,246 3,523 3,960
5,789 6,305 7,539 7,499 7,244 7,816
17,414 25,248
5,482 6,200 8,217 9,373 15,637 15,815
12,080 13,635 13,543 12,401 15,859 16,373
68,615 61,317 25,703 9,201 22,101 15,536
3,250 3,794 3,954 3,992 4,058 4,307
141,375 134,509 103,629 85,401 127,810 134,374
(59,500) (63,777) (30,369) (6,283) (10,167) (15,919)
3,246 3,498 3,525 5,909 15,515 16,507
(2,625) (2,312) (2,050) (5,096) (14,583) (16,967)
8,520 28,962 21,637 49,805 12,060 49,560
(1,630) (54,478) (33,182)
649 2,050 1,289 1,179 1,853
(54) 56 3.809 331 4,784
9,736 32,198 22,826 (5 I) 14,502 22,555
$ (49.764) S (;1.579) S (7543) $ (6.334) S 4,335 $ 6,636
24.1% 27.1"t0 27.9'n 28.3% 29.s 27.0%
127
CITY OF PEARLAND,TEXAS
SPENDING AND GROWTH ANALYSIS
Last Ten Fiscal Years
Amounts in(000's)
(Modified Accrual Basis of Accounting)
Amounts in(000's)
Expenditures 2005 2006 2007 2008
General Gov't $ 6,750 $ 6,430 $ 6,363 $ 7,406
Public Safety 11,081 12,870 14,598 19,604
Public Works 10,450 9,728 6,278 7,536
Coummunity Servies 171 3,787 3,102 3,426
Parks&recreation 2,576 3,358 4,908 6,605
Economic Development 16,528 10,670 14,391 16,899
Debt Service-principal 3,950 5,309 5,183 4,265
Debt service-interest 7,530 9,141 13,483 15,688
Capital outlay 28,661 36,706 28,530 27,777
Intergovernmental 1,084 8,8% 14,699 3,434
Total $ 88,781 $ 106,895 $ 111,535 $ 112,640
Distribution of Spending
General Gov't 7.6% 6.0% 5.7% 6.6%
Public Safety 12.5% 12.0% 13.1% 17.4%
Public Works 11.8% 9.1% 5.6% 6.7%
Coummunity Servies 0.2% 3.5% 2.8% 3.0%
Parks&recreation 2.9% 3.1% 4.4% 5.9%
Economic Development 18.6% 10.0% 12.9% 15.0%
Debt Service-principal 4.4% 5.0% 4.6% 3.8%
Debt service-interest 8.5% 8.6% 12.1% 13.9%
Capital outlay 32.3% 34.3% 25.6% 24.7%
Intergovernmental 1.2% 8.3% 13.2% 3.0%
Total 100.0% 100.0% 100.0% 100.0%
Per Capita Expenditures Adjusted for CP1
POPULATION 62,634 79,322 84,500 89,000
PER CAPITA $ 1,417.46 $ 1,347.61 $ 1,319.94 $ 1,265.62
CPI INDEX(NATIONAL) 195.29 201.59 207.34 215.30
PER CAPITA ADJ TO 2014 $ 1,703.85 $ 1,569.27 $ 1,494.42 $ 1,379.94
PER CAPITA ADJ TO 2005 $ 1,417.46 $ 1,305.49 $ 1,243.23 $ 1,147.99
128 1
Average
Compounded
2009 2010 2011 2012 2013 2014 %CHG Growth Rate
$ 8,423 $ 19,561 $ 10,877 $ 7,797 $ 7,958 $ 8,027 18.9% 1.94%
22,310 23,784 23,926 25,372 26,204 29,171 163.3% 11.35%
12,051 7,108 6,505 5,533 7,812 8,121 -22.3% -2.76%
3,386 3,839 3,376 4,246 3,523 3,960 2215.6% 41.78%
5,789 6,305 7,539 7,499 7,244 7,816 203.4% 13.13%
18,730 15,426 17,391 20,397 17,414 25,248 52.8% 4.82%
7,517 8,525 10,847 12,893 15,637 15,815 300.4% 16.67%
15,704 17,096 17,154 15,534 15,859 16,373 117.4% 9.01%
75,490 64,563 25,768 9,201 22,101 15,536 -45.8% -6.58%
7,630 4,234 4,127 4,158 4,058 4,307 297.4% 16.57%
$ 177,030 $ 170,441 $ 127,510 $ 112,630 $ 127,810 $ 134,374 51.4% 4.71%
4.8% 11.5% 8.5% 6.9% 6.2% 6.0%
12.6% 14.0% 18.8% 22.5% 20.5% 21.7%
6.8% 4.2% 5.1% 4.9% 6.1% 6.0%
1.9% 2.3% 2.6% 3.8% 2.8% 2.9%
3.3% 3.7% 5.9% 6.7% 5.7% 5.8%
10.6% 9.1% 13.6% 18.1% 13.6% 18.8%
4.2% 5.0% 8.5% 11.4% 12.2% 11.8%
8.9% 10.0% 13.5% 13.8% 12.4% 12.2%
42.6% 37.9% 20.2% 8.2% 17.3% 11.6%
4.3% 2.5% 3.2% 3.7% 3.2% 3.2%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Ave rage
Compounded
Growth Rate
92,600 94,100 97,200 99,800 104,100 1 06,900 6.12%
$ 1,911.77 $ 1,811.28 $ 1,311.83 $ 1,128.56 $ 1,227.76 $ 1,257.00 -1.33%
214.54 218.06 224.94 229.59 232.96 234.75 2.07%
$ 2,091.89 $ 1,949.95 $ 1,369.05 $ 1,153.90 $ 1,237.21 $ 1,257.00 -3.32%
$ 1,740.27 $ 1,622.19 $ 1,138.93 $ 959.95 $ 1,029.25 $ 1,045.72 -3.32%
129
CITY OF PEARLAND,TEXAS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Nine Fiscal Years
Real Prole rt
Tax Less Tax Exempt
Fiscal Year Year Residential ( ommcrcial Personal Property Real Property
2006 2005 $ 2,689,041,440 $ 1,072,417,312 $ 309,552,190 $ 270,175,010
2007(I) 2006 3,398,952,580 1,234,444,431 378,160,330 307,538,080
2008 2007 4,136,844,130 1,463,969,653 449,453,570 384,651,183
2009 2008 4,535,133,971 1,795,132,850 521,854,047 461,051,494
2010 2009 4,673,324,8% 1,762,831,286 632,160,830 484,145,515
2011 2010 4,916,409,359 1,833,483,370 527,132,210 590,247,297
2012 2011 4,929,336,548 1,897,683,176 488,098,315 592,996,676
2013(2) 2012 5,042,965,503 1,954,587,058 612,564,952 617,274,555
2014 2013 5,530,854,515 1,966,675,342 614,461,500 627,308,465
Notes:
Assessed valuation for fiscal year 2007 does not include Brazoria County Mud#1 valuation of
(1) $241,248,630 that was annexed into the City on December 31,2006.
Assessed valuation for fiscal year 2013 does not include Brazoria County Mud#4 valuation of
(2) $241,712,166 that was annexed into the City on December 31,2012.
Assessed value based on adjusted taxroll at year end.
130
Assessed Value
Less Other as a Percent of
Exemptions and Total Taxable Total Direct Estimated Actual Actual Taxable
Abatements Assessed Value Tax Rate Taxable Value Value
$ 224,396,803 $ 3,576,439,129 $ 0.6744 $ 3,576,439,129 100%
291,197,312 4,412,821,949 0.6527 4,412,821,949 I00%
275,826,005 5,389,790,165 0.6526 5,389,790,165 100%
486,242,814 5,904,826,560 0.6526 5,904,826,560 100%
315,123,559 6,269,047,937 0.6526 6,269,047,937 100%
355,054,613 6,331,723,029 0.6651 6,331,723,029 100%
352,494,382 6,369,626,981 0.6851 6,369,626,981 100%
454,866,920 6,537,976,038 0.7051 6,537,976,038 100%
487,709,374 6,996,973,518 0.7051 6,996,973,518 100%
131
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132
CITY OF PEARLAND,TEXAS
PER CAPITA,HOUSEHOLD,SQUARE MILE
FOR BENCHMARK CITIES OF TAXABLE PROPERTY
Fiscal Year 2014
Total Taxable Value per Capita
Cary,NC $157,118
Frisco,TX I $146,514
Sugar Land,TX , $127,067
Rancho Cucamonga,CA $116,361
Plano,TX $96,110
McKinney,TX $86,040
Pearland,TX $74,587
League City,TX $64,956
Franklin,TN - $49,894
Olathe,KS Il• $11,206
$0 $40,000 $80,000 $120,000 $160,000
Total Taxable Value per Household
Frisco,TX $439,576
Cary,NC I $433,665
Sugar Land,TX I $392,732
Rancho Cucamonga,CA I $358,464
McKinney,TX $265,381
Plano,TX $256,763
Pearland,TX $218,182
League City,TX $179,758
Franklin,TN $127,281
Olathe,KS 1♦ $31,872
$0 $100,000 $200,000 $300,000 $400,000 $500,000
• Taxable Value per Square Mile
Rancho Cucamonga,CA $487,582,736
•• Cary,NC $399,386,415
Plano,TX $355,228,600
Sugar Land,TX $314,821,735
Frisco,TX $257,811,478
McKinney,TX $186,066,086
Pearland,TX - $144,715,149
League City,TX ' $101,690,909
Franklin,TN $78,482,619
Olathe,KS ■ $23,561,100
$0 $200,000,000 $400,000,000 $600,000,000
Notes: Data from Community Development Strategies Survey
133
CITY OF PEARLAND,TEXAS
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per$100 ofassessed value)
City Direct Rates Overlapping, Rues
Pearland Pasadena Alvin
independent Independent Independent Alvin Fort Port of
Fiscal M&0 I&5 Total School School School Comm Brazoria Bend Harris Houston
Year Rate Rate Direct District District District College County County County Authority
2005 $0.339 $0.356 $ 0.695 $ 1.792 $ $ $0.241 $0.422 $ 0.500 $ 0.400 $ 0.017
2006 0.345 0.329 0.674 1.792 0.238 0.408 0.517 0.400 0.015
2007 0.299 0.354 0.653 1.662 1.350 1.546 0.220 0.382 0.517 0.402 0.013
2008 0.250 0.402 0.653 1.427 1.350 1.328 0.210 0.311 0.517 0.392 0.014
2009 0.220 0.433 0.653 1.419 1.350 1.328 0.200 0.330 0.500 0.391 0.018
2010 0.220 0.433 0.653 1.419 1.350 1.304 0.200 0.366 0.500 0.392 0.016
2011 0.215 0.450 0.665 1.419 1.350 1.304 0.200 0.403 0.500 0.388 0.021
2012 0.215 0.470 0.685 1.419 1.350 1.344 0.199 0.413 0.500 0.391 0.019
2013 0.215 0.490 0.705 1.419 1.350 1.329 0.200 0.426 0.500 0.400 0.020
2014 0.215 0.490 0.705 1.416 1.350 1.329 0.194 0.492 0.500 0.415 0.017
Source:Brazoria County,Harris County,and Fort Bend County Appraisal District.
Overlapping rates are those of local and county governments that apply to property owners within the City of Pearland.Not all
overlapping rates apply to all Pearland property ownerss;for example,although the county property tax rates apply to all.
134
Harris Hai is I l:u,i, Brazoria/
County Count'. (ounth Ft Bend
Flood Hospital Dept of MUD MUD MUD MUD MUD MUD MUD MUD MUD
Control District Education No.1 No.17 No.18 No.19 No.23 No.26 No.28 No.34 No.35
$ 0.033 $0.190 $0.006 S $0.750 $0.650 0.800 0.850 0.850 $ 0.820 $ 0.850 $
0.033 0.192 0.006 0.850 0.750 0.640 0.800 0.850 0.850 0.820 0.850
0.032 0.192 0.006 0.850 0.750 0.610 0.780 0.850 0.770 0.820 0.850
0.031 0.192 0.006 0.850 0.730 0.590 0.680 0.850 0.710 0.820 0.850 0.850
0.031 0.192 0.006 0.850 0.630 0.570 0.660 0.820 0.710 0.820 0.850 0.890
0.029 0.192 0.060 0.850 0.600 0.560 0.630 0.800 0.710 0.820 0.850 1.020
0.029 0.192 0.007 0.850 0.547 0.550 0.620 0.770 0.710 0.820 0.850 1.020
0.028 0.192 0.007 0.850 0.547 0.545 0.600 0.630 0.690 0.820 0.850 1.020
0.028 0.182 0.007 0.850 0.547 0.530 0.580 0.610 0.690 0.820 0.850 1.020
0.028 0.170 0.006 0.850 0.544 0.510 0.550 0.600 0.690 0.820 0.850 1.020
135
CITY OF PEARLAND,TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections 'Total Collections to Date
Ended for the Percentage in Subsequent Percentage
Sept 30, Fiscal Year Amount of Levy Years amount of Levy
2005 $ 21,073,788 $ 20,576,812 97.64% $ 477,235 $ 21,054,047 99.9%
2006 24,284,597 23,690,031 97.55% 564,465 24,254,496 99.9%
2007 28,819,229 28,235,276 97.97% 555,538 28,790,814 99.9%
2008 35,035,569 34,461,652 98.36% 563,405 35,025,057 100.0%
2009 38,368,354 37,820,603 98.57% 516,212 38,336,815 99.9%
2010 41,081,407 40,590,543 98.81% 425,209 41,015,752 99.8%
2011 41,968,046 41,594,389 99.11% 278,859 41,873,248 99.8%
2012 43,441,792 43,110,373 99.24% 249,826 43,360,199 99.8%
2013 45,850,625 45,509,522 99.26% 200,552 45,710,074 99.7%
2014 49,096,473 48,802,720 99.40% 48,802,720 99.4%
Source:Brazoria County Tax Office
Taxes levied based on adjusted tax roll.
136
CITY OF PEARLAND,TEXAS
PRINCIPAL PROPERTY TAX PAYERS
Current Year and Nine Years Ago
2014 2005
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Weatherford U.S.,Inc. $ 69,914,860 1 1.00% $
Pearland Town Center LP 66,757,240 2 0.95%
Global Pipe Supply 51,522,280 3 0.74%
Amreit SPF Shadow Creek,LP 47,959,306 4 0.69%
Centerpoint Energy,Inc. 32,832,920 5 0.47%
Shadow Creek Parkway 27,100,030 6 0.39%
Discovery Shadow Creek 25,330,000 7 0.36%
Shadow Kirby LTD Partnership 25,000,000 8 0.36%
Walmart Real Estate BUS TR 23,179,360 9 0.33% 12,428,460 2 0.45%
FICA Healthcare Corp 18,981,110 10 0.27%
Lowe's Home Centers,Inc. 13,731,150 1 0.50%
Home Depot 9,756,700 3 0.35%
Walmart Stores,Inc. 7,855,740 4 0.28%
CFPI LP 6,488,200 5 0.23%
Home Depot USA,Inc. 6,410,390 6 0.23%
HD Development Properties,LP 6,117,950 7 0.22%
Walmart Stores,Inc. 5,920,880 8 0.21%
WC Properties,LTD 4,679,450 9 0.17%
Walmart Stores,Inc. 4,099,890 10 0.15%
Total $ 388,577,106 5.55% $ 77,488,810 2.80%
Source:Brazoria County Appraisal District
137
CITY OF PEARLAND,TEXAS
TAXABLE SALES BY CATEGORY
Last Ten Calendar Years
(in thousands of dollars)
2005 2006 2007 2008
Retail Trade $ 370,665 $ 464,850 $ 536,352 $ 667,470
Accommodations& Food Services 80,185 95,154 107,850 127,994
Real Estate/Rental/Leasing 18,629 33,329 44,560 52,276
Manufacturing 41,057 46,241 50,134 47,447
Wholesale Trade 24,070 30,592 28,782 32,999
Other Services(Except Public Admin) 16,921 20,390 20,794 23,764
Information 7,203 8,553 10,086 12,567
Construction 13,234 18,348 16,232 17,496
Arts,Entertainment&Recreation 4,787 5,208 8,789 9,751
Mining,Quarrying,Oil and Gas 2,985 11,186 9,280 10,520
Admin/Support/Waste Mgmt/Remediation 13,688 8,060 9,209 12,656
Professional/Scientific/Technical 3,538 3,893 4,103 5,218
Health Care/Social Assistance 72 56 63 37
Finance,Insurance 1,811 1,722 1,038 1,469
Agriculture,Forestry,Fishing 283 453 473 675
Transportation/Warehousing 55 155 169 138
Educational Services 204 110 110 212
Utilities 7 3 6
Management of Companies/Enterprises 2,278 1,161 2,594
Other 13 2
Total $ 601.677 $ 748,310 S 849.188 $1,025,289
City direct sales tax rate b 1.00% 1.00% 1.00% 1.00%
Source: State Comptroller's Office.
a 2014 taxable sales thru 2nd quarter of 2014.
b The City direct sales tax rate includes the City only and not the Pearland Economic
Development Corp. (4B).
c Categories changed in 2007.Re-categorized data.
138
Calendar Year
2009 2010 2011 2012 2013 2014'
$ 699,338 $ 673,714 $ 697,419 $ 764,460 $ 829,666 $ 393,002
146,598 155,345 172,126 198,439 216,155 117,241
38,924 46,811 48,059 61,690 56,079 27,978
31,243 39,582 49,474 48,213 34,598 20,705
25,954 30,730 33,163 33,566 34,358 19,925
23,670 25,114 29,557 30,669 34,175 18,687
14,413 15,672 16,896 19,194 24,387 15,155
14,372 15,537 17,558 23,181 24,370 12,285
9,909 11,315 11,511 12,710 13,570 7,294
3,355 3,246 3,316 3,726 12,893 6,762
11,670 10,650 11,004 12,696 13,778 6,364
5,923 6,277 7,072 9,037 11,317 4,388
52 184 252 351 1,057 1,629
1,811 1,404 1,261 1,347 1,246 661
566 180 306 468 772 218
161 282 418 425 318 157
144 207 314 429 374 136
6 3 187 3 7
S1.028,107 S 1,036.253 S 1,099,893 S 1.220.603 $ 1.309.121 S 652.588
1.00') ) 1.00 1.00"/„ 1.00' 1.00 1.00
I
I
139
CITY OF PEARLAND,TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
(dollars in thousands,except per capita)
Goy e runic ntal Activities Business-Type Activities
General Certificates Capital Permanent Capital
Fiscal Obligation of Obligation Revenue Lease Revenue Improvement Lease
Year Bonds Bonds Bonds Obligations Bonds Bonds Obligations
2005 $ 60,175 $ 72,390 $ $ 396 $ 32,480 $ 15,880 $
2006 90,305 81,275 309 40,170 15,000
2007 164,810 66,220 1,538 79,180 13,915
2008 184,985 74,980 1,187 92,900 13,140
2009 180,765 82,505 1,479 104,435 12,160 235
2010 193,785 92,380 3,237 116,440 10,540 345
2011 207,105 91,150 4,032 113,270 9,730 421
2012 224,170 65,425 4,344 3,407 109,305 15,130 342
2013 236,199 64,690 75,125 3,681 105,690 14,020 253
2014 246,852 56,505 80,125 4,344 102,517 12,865 169
Note:Details regarding the city's outstanding debt can be found in the notes to the financial statements.
*Due to implementation of GASB 61 in fiscal year 2013,the City's component units are now considered blended
component units versus discretely as in years prior to fiscal year 2013.As such,the outstanding debt for the components
units have been added.,however,the City,or primary government is not legally responsible for the payment of its debt.
140
Excluding
Total Percentage Total Component
Primary of Personal Per Units
Government Income Capita Per Capita
$ 181,321 9.3% $ 2,895 $
227,059 11.1% 2,862
325,663 12.4% 3,854
367,192 12.4% 4,126
381,579 13.0% 4,121
416,727 13.5% 4,429
425,708 14.3% 4,380
422,123 13.1% 4,230
499,658 14.1% 4,800 4,019
503,378 13.2% 4,709 3,859
141
CITY OF PEARLAND,TEXAS
RATIO OF NET GENERAL BONDED DEBT TO ASSESSED
VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(dollars in thousands,except per capita)
General Less Debt Ratio of Net Percentage
Fiscal Tax Obligation Service Net Bonded Bonded Debt to of Personal Per
Year Year Bonds Funds Debt Assessed Value Income a Capita a
2005 2004 $ 148,445 $ 3,855 $ 144,590 6.2% 7.4% $ 2,308
2006 2005 186,580 4,658 181,922 5.1% 8.9% 2,293
2007 2006 244,945 6,552 238,393 5.4% 9.1% 2,821
2008 2007 273,105 6,552 266,553 4.9% 9.0% 2,995
2009 2008 275,430 7,247 268,183 4.5% 9.1% 2,8%
2010 2009 296,705 6,706 289,999 4.6% 9.4% 3,082
2011 2010 307,985 5,160 302,825 4.8% 10.2% 3,115
2012 2011 304,725 4,992 299,733 4.7% 9.3% 3,003
2013 2012 314,909 4,643 310,266 4.7% 8.7% 2,980
2014 2013 316,222 4,536 311,686 4.5% 8.2% 2,916
Note: Details regarding the city's outstanding debt can be found in the notes to the financial
a Population and personal income data can be found in demographic and economic statistics table.
142
CITY OF PEARLAND,TEXAS
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
September 30,2014
Debt as of
September 30, Overlapping
Taxing Jurisdiction 2014 Percent Amount
Alvin Community College District $14,380,000 27.15% $ 3,904,170
Alvin ISD 463,780,000 30.34% 140,710,852
Brazoria County 90,265,000 25.46% 22,981,469
Brazoria County MUD No. 17 26,990,000 100.00% 26,990,000
Brazoria County MUD No. 18 28,170,000 97.35% 27,423,495
Brazoria County MUD No. 19 34,825,000 100.00% 34,825,000
Brazoria County MUD No.23 16,530,000 100.00% 16,530,000
Brazoria County MUD No.26 41,235,000 100.00% 41,235,000
Brazoria County MUD No.28 22,820,000 100.00% 22,820,000
Brazoria County MUD No.34 28,205,000 100.00% 28,205,000
Brazoria County MUD No.35 8,815,000 100.00% 8,815,000
Brazoria-Fort Bend County MUD No. 1 62,105,000 60.32% 37,461,736
Fort Bend County 448,570,000 0.42% 1,883,994
Harris County(a) 2,396,117,860 0.14% 3,354,565
Harris County Dept.of Education 7,410,000 0.14% 10,374
Harris County Flood Control District 87,400,000 0.14% 122,360
Pasadena ISD 590,315,000 0.14% 826,441
Pearland 1SD 321,365,767 75.74% 243,402,432
Port of Houston Authority 702,379,397 0.14% 983,331
Total estimated Overlapping 662,485,219
The City $307,701,571 100.00% 307,701,571
Total Direct and Estimated Overlapping Debt S 970,186,790
Population 106,900
Per Capita Debt-Direct and Overlapping Debt $ 9,076
Source: Individual jurisdictions and/or Texas Municipal Reports.
*Debt amounts are as of September 30,2014.
(a) Harris County Toll Road Certificates are considered self-supporting and are not included in the
amount shown for Harris County.
143
CITY OF PEARLAND,TEXAS
PLEDGED REVENUE COVERAGE
Amounts in(000's)
Last Ten Fiscal Years
Water&Sewer Revenue Bonds
Net
Less: Revenue Debt Service
Fiscal Gross Operating Available for
Year Revenues Expenses Debt Service Principal Interest Total Coverage
2005 $ 11,619 $ 8,607 $ 3,012 $ 1,075 $ 1,459 $ 2,534 1.19
2006 15,004 11,228 3,776 1,125 1,829 2,954 1.28
2007 20,713 12,151 8,562 1,125 2,915 4,040 2.12
2008 23,507 14,827 8,680 1,230 4,011 5,241 1.66
2009 26,980 12,877 14,103 1,595 4,648 6,243 2.26
2010 25,061 13,585 11,476 2,575 4,848 7,423 1.55
2011 28,664 15,529 13,135 3,170 5,155 8,325 1.58
2012 27,969 15,946 12,023 3,305 5,016 8,321 1.44
2013 29,607 17,423 12,184 3,615 4,724 8,339 1.46
2014 29,341 17,707 11,633 3,765 4,584 8,349 1.39
Note:Details regarding the City's outstanding debt can be found in the notes to the financial statements.Operating
expenses do not include interest,depreciation,or amortization expenses.Debt service excludes Permanent
Improvement Bonds paid with system revenues,as those bonds do not require bond coverage.
144
CITY OF PEARLAND,TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Education
Per Capita level in School
Fiscal Personal Income Personal Medan Years of I'm rollnient Unemployment
Year Population(A) (in$000's) Income(B) Age(B) Schooling (C) Rate(D)
2005 62,634 $ 1,951,801 $ 31,162 35.5 14.3 15,023 4.6%
2006 79,322 2,050,394 25,849 33.4 14.3 16,629 3.6%
2007 84,500 2,631,837 31,146 34.9 14.3 17,733 3.6%
2008 89,000 2,963,255 33,295 35.8 14.3 18,439 3.8%
2009 92,600 2,941,717 31,768 34.5 14.2 20,056 6.5%
2010 94,100 3,076,788 32,697 33.4 14.2 21,269 6.9%
2011 97,200 2,974,785 30,605 33.3 14.2 20,931 6.9%
2012 99,800 3,213,184 32,196 34.8 14.2 21,721 5.6%
2013 104,100 3,555,431 34,154 34.4 14.2 23,771 5.0%
2014 106,900 3,822,958 35,762 34.6 14.2 23,075 4.3%
(A)Estimated
(B) Pearland Economic Development Corporation
(C)Texas Education Agency
(D) Bureau of Labor Statistics
*Information not presented is not avaialble.
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146
CITY OF PEARLAND,TEXAS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2014 2005
Percentage Pe rce ntage
of Total City o f Total City
Employer Employees Rank Employment Employees Rank Employment
Pearland ISD 2,472 1 5.42% 1,820 1 7.26%
Kelsey Seybold 850 2 1.86%
City of Pearland 614 3 1.35% 420 3 1.67%
Kemlon 390 4 0.86% 185 6 0.74%
Alvin ISD 352 5 0.77%
Davis-Lynch(Forum Energy Tech.' 300 6 0.66%
Packaging Service Co. 230 7 0.50%
Texas Honing 190 8 0.42%
TurboCare 175 9 0.38% 175 7 0.70%
Weatherford 160 10 0.35% 250 4 1.00%
Wal-Mart 800 2 3.19%
Randall's 250 5 1.00%
Super Target 150 8 0.60%
Tele-flow 140 9 0.56%
Lowes 132 10 0.53%
Total 5,733 12.57% 4.322 17.23%
Sources:
Pearland Economic Development Corp.
147
CITY OF PEARLAND,TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY Ft NCTION/PROGRA .1
Last Ten Fiscal Years
2005 2006 2007 2008 2009 2010 2011
Function/Program
Governmental Activities:
General Government 42 49 51 55 55 57 57
Public Safety 170 184 205 242 253 264 276
Public Works 43 44 47 45 47 47 45
Community Services 41 47 50 51 52 47 45
Parks and Recreation 58 52 59 68 72 99 105
Business Type Activities:
Water&Sewer 62 76 78 77 82 82 87
Component Unit:
Economic Development 4 4 4 5 5 6 5
Total 420 456 494 543 564 601 619
Source: City Budget
148
2012 2013 2014
56 44 48
286 295 315
31 57 60
56 51 53
109 101 99
90 99 104
5 5 5
633 652 684
149
CITY OF PEARLAND,TEXAS
OPERATING INDICATORS BYFUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal 1'car
2005 2006 2007 2008 2009 2010
Function/Program
GENERAL GOVERNMENT
Finance
Number of purchase orders 3,183 3,085 3,475 3,552 3,264 2,913
Number of budget transfers 117 226 194 398 406 470
Number of invoices paid 21,180 22,438 22,279 23,434 23,259 21,632
Average number of employees paid per month 930 984 1,026 1,185 1,230 1,220
Human Resources
Number of hires 77 95 97 109 90 91
Number of applications received 3,138 2,808 3,074 2,495 3,137 3,880
Legal
Number of resolutions and ordinances prepare 234 295 269 293 266 229
Information Technology
Average monthly service requests 350 370 486 616 649 734
Number of PC's supported 205 220 354 386 394 429
PUBLIC SAFETY
Police
Number of police calls resulting in dispatch 27,443 30,496 32,747 34,865 37,440 35,676
Total police arrests made 3,753 4,809 5,053 4,424 5,188 5,986
Dispatched calls per patrol officer 704 555 544 592 576 513
Commercial vehicles equipment violations 1,015 1,069 980 860 711 672
UCR Part I cases assigned(I) 418 366 371 349 629 2,003
Fire
Total number of arson incidents 4 11 21 9 8 5
Fires investigated 70 120 96 28 33 22
Total annual inspections 965 1,307 2,333 2,677 2,374 1,752
Total calls for service(2) 1,168 1,188 1,202 2,215 2,432 2,416
EMS
Total calls for service 3,941 4,290 5,372 6,029 6,411 6,472
Patients treated 3,848 4,048 4,983 5,529 5,804 5,619
PUBLIC WORKS
Fleet Maintenance
Fleet maintenance jobs completed 3,950 4,778 4,686 4,153 3,063 2,394
Preventative maintenance performed 2,251 1,815 1,889 1,756 1,998 1,741
Other Public Works
Fuel issued(gallons) 220,000 303,930 318,587 343,865 313,5% 354,422
Street sweeping(miles) 790 790 583 2,324 2,561 2,239
Street signs maintained/replaced 1,170 1,725 1,404 1,288 2,864 2,049
Total work orders completed 19,327 21,181 19,961 18,723 20,213 18,632
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page 1 of 2
Fiscal Year
2011 2012 2013 2014
2,679 2,415 2,671 2,640
427 429 465 548
21,000 20,768 23,512 21,486
1,438 1,481 1,527 1,548
131 112 94 98
3,299 4,936 7,642 8,507
205 220 254 243
815 832 843 838
439 448 454 575
39,815 42,318 47,200 45,500
6,218 6,525 7,642 7,081
606 625 659 550
852 900 810 598
3,304 1,836 2,094 1,900
2 2 6 7
25 18 16 25
1,380 1,537 1,958 1,644
2,621 2,826 3,369 7,602
7,055 7,668 7,420 7,446
6,121 6,537 6,537 6,936
3,410 3,581 3,817 3,860
747 682 611 610
361,464 377,754 350,186 353,890
1,299 1,079 1,155 871
1,588 1,090 884 993
16,834 17,803 18,346 21,212
151
CITY OF PEARLAND,TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Nine Fiscal Years
Fiscal Year
2005 2006 2007 2008 2009 2010
(unction/Program(continued)
P:1I4 KS AND RECREATION
.VI Parks and recreation
ROW maintained-acres N/A 478 385 210 228 245
Trees maintained 3,450 3,450 4,280 5,000 5,004 5,800
Acres of city property mowed N/A 167 439 470 851 1,301
Total number of parkwork orders received N/A 227 361 316 275 252
Parkland-acres(3) N/A 175 175 180 138 139
Total number of special events held 24 20 25 25 25 24
Total number of tournaments held N/A 19 25 9 6 9
Number of recreation classes offered(4) 1,170 1,189 1,222 1,083 855 307
Average monthly attendance(all locations)(A 5,977 6,723 7,988 7,607 3,623 11,823
COMMUNITY SERVICES
Aninal Control
Number of animals at shelter 2,228 2,898 3,068 2,947 2,868 2,532
Total number of calls for service 5,443 4,600 6,099 4,296 3,529 4,206
Inspection Services
Total building inspections 53,924 36,724 31,004 34,773 24,834 21,753
Total code violation cases 2,792 2,739 3,962 3,629 4,274 3,433
Total permits issued 15,289 14,889 13,769 9,878 9,249 7,874
Number of plans reviewed 3,026 2,682 3,055 1,309 925 969
Municipal Court
Number of trials 2,800 1,952 2,305 1,616 1,391 402
Number of charges 18,275 22,185 20,481 19,666 24,400 24,657
Warrants cleared N/A N/A 3,596 6,402 7,374 8,692
WATER&SEWER
Distribution and Collection
Fie hydrant maintenance and inspections(6) 1,967 99* 537 740 451 402
Backed up sewer repairs 278 251 330 393 270 325
Water mains repaired 71 129 108 160 168 82
Water Production
Water produced-wells
(in millions of gallons) 1,925 2,044 1,597 2,128 2,574 3,065
Surface Water Purchased
(intuitions of gallons) 683 967 1,121 1,147 1,146 634
Billing&Collections
Annual meter reads 211,956 234,875 285,930 325,471 340,281 344,618
Number of bills 192,014 248,848 293,833 318,160 325,201 336,668
Wastewater Treatment
Wastewater treated
(in millions of gallons) 1,398 1,668 2,305 2,096 2,106 2,361
Sources:Various city departments.
Information not presented was not available at tine of publication.
1UCR method of reporting was terminated after 2009. Effective 2010,Incident Based Reporting
(IBR)is used.
2First Responders calls to Fire Department are included in this number.Fist Responder calls
increased from 1,492 in FY 13 to 5,422 in FY I4.
3Prior to 2009,Parkland acres included medians and Wastewater Treatment Plants. After 2009,
reported under total acres of city property maintained.
4 Prior to 2010,individual music classes were included in the total recreation classes held
Program was cancelled.
5In FY 2010,a new facility,Recreation Center/Natatorium,opened.
61n Water&Sewer,Distribution and Collection fre hydrant maintenance and inspections is
contracted out.During FY06,the contractor's services were disrupted by a storm.
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page'of2
Pis cal 1'car
2011 2012 2013 2014
255 251 251 251
6,327 6,157 6,312 6,313
1,331 1,380 1,035 1,035
249 230 140 180
139 138 138 138
21 22 22 20
11 2 1 3
459 486 281 272
16,116 18,378 18,980 21,366
2,685 2,220 2,375 2,176
4,346 4,326 5,236 6,114
19,244 22,416 26,274 28,434
2,860 1,952 2,244 2,140
7,869 8,696 10,630 13,972
917 1,050 939 1,185
688 1,116 885 839
26,369 30,187 27,439 23,182
8,204 10,080 10,328 9,050
395 887 1,399 837
310 275 286 334
410 283 380 I11
3,869 2,916 2,859 2,470
968 1,321 1,816 2,133
364,424 370,755 403,220 414,499
350,871 359,716 387,997 388,338
1,943 2,364 2,530 2,493
153
CITY OF PEARLAND,TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function/Program
PUBLIC SAFETY
Police
Police stations 1 I I I 1 I 1 1 1 1
Police vehicles 109 112 117 126 130 138 142 155 157 161
Fire
Fine stations 4 4 4 4 4 4 5 6 6 6
Fire vehicles 15 16 16 17 17 17 22 23 26 26
EMS
EMS Stations* 3 3 3 3 3 3 3 4 5 1
EMS Ambulances 5 5 5 6 8 8 8 8 9 9
PUBLIC WORKS
Other public works
Streets(mks)** 248 578 758 773 807 807 806 806 839 844
Vehiclelnventory*** N/A 342 405 360 333 355 363 385 374 375
Traffr signals 47 48 57 67 71 80 62 74 81 81
PARKS AND RECREATION
Packs and recreation
Developed acreage**** 124 175 175 180 138 139 139 138 138 138
Pools 1 I I I I 3 3 3 3 3
Outdoor basketball courts N/A 10 10 10 10 10 10 6 6 6
Soccer fields N/A 12 12 12 12 12 12 12 12 12
Activity buildings 3 3 3 3 3 4 4 3 3 3
Baseball/Softball Fields 4 4 4 4 4 4 4 4 4 4
WATER AND SEWER
Water Production
Water wells 9 9 10 I I 11 1 1 11 I I 10 10
Pumping stations 2 2 2 2 2 2 2 3 3 3
Ground storage tanks 13 15 15 15 15 15 15 15 15 15
Elevated towers 4 5 5 5 5 6 6 6 6 6
Wastewater
Treatment Plants 4 4 5 5 5 5 5 5 5 5
Lift Stations 78 74 78 76 78 78 80 80 75 76
Distribution and Collection
Water mains(Mks) 296 361 395 410 420 433 443 448 469 488
Sanitary sewers(mks) 279 321 353 360 370 378 380 382 400 415
Sources:Various city departments.
Note:No capital asset indicators arc available for the general government and comrunity services functions.
Information not presented was not available at time of publication.
*EMS and Fire Departments merged in FY 2014 and EMS locations are now included with Fire stations,except in one location.
**Inside city Units. Prior to FY07,street miles were measured visually.Beginning FY07,a GIS system was used to measure street miles.
Ahhough new streets were added in FY201I,an audit of the database resulted in the elimination of some street miles previously reported.
***Decrease in inventory reflects surplus of vehicles auctioned off.Increases reflect new purchases,which nay offset with those sold.
those sold.Vehicle inventory includes public safety revenues.
****Prior to 2009,Parkland acres included medians and Wastewater Treatment Plants.
154