RDAP-2012-02 - 2012-02-20RESOLUTION NO. RDAP NO. R2012-02
..0 1 big 1 91-11 1.•. •-
BE IT RESOLVED BY THE DAP BOARD OF DIRECTORS:
Section 1. That the Board hereby accepts the Investment Report for the
Quarters ending September 2011 and December 2011.
PASSED, APPROVED, AND ADOPTED this 20th day of February, A.D., 2012.
ATTEST:
DAP SE RETARY
1,TLNull-Lairson
CER11iCERTIFIED PUBLIC
Independent Auditors' Report
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, 2011, which collectively comprise the City's basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
City's management. 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 financial 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 financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our 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, each major fund,
and the aggregate remaining fund information of the City as of September 30, 2011, and the respective
changes in financial position, and cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
, 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 and should be considered in assessing the
results of our audit.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages 5 through 15, and budgetary comparison, required pension system, and
other post -employment benefits on pages 68 through 70 be presented to supplement the basic financial
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 financial statements. We do not express an opinion
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www.nuil-lairson.com
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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's financial statements as a whole. The introductory section, combining and individual
non -major fund financial statements and schedules, and statistical section, are presented for purposes of
additional analysis and are not a required part of the financial statements. The combining and individual
non -major fund financial statements and schedules are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the 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 it.
Houston, Texas
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CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF NET ASSETS
DISCRETELYPRESENTED COMPONENT UNITS- GOVERNMENTAL ACTIVITIES
September 30, 2011
Assets
Cash and cash equivalents
Investments
Receivables - less allowance
for uncollectibles
Due from primary government
Prepaid items
Restricted cash
Deferred charges
Capital assets not subject
to depreciation
Capital assets net of
accumulated depreciation
Total Assets
Liabilities
Accounts payable and accrued
expenses
Accrued interest
Customer deposits
Non -current liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets
Invested in capital. assets, net of related
debt
Restricted - debt service
Restricted - economic development
Total Net Assets
See Notes to Financial Statements,
Pearland
Economic
Tax Increment
Development
Development
Reinvestment
Authority of
Corporation
Zone #2
Pearland
$ 3,869,964
$ 4,169,845
$ 2,678,435
3,611,882
1,155,488 105,449
12,691
11,355
665,254
375,711
3,220,907
6,658,827
19,569,388
Total
Component
$ 10,718,244
3,611,882
1,260,937
12,691
I1,355
2,712,587 3,377,841
2,816,056 3,191,767
3,220,907
6,658,827
4,287,985 8,207,078 32,064,451
35,452 14,403 1,400 51,255
95,612 184,283 279,895
38,333 38,333
840,000 1,900,000 2,740,000
24,624,774 47,013,619 71,638,393
25,634,171 14,403 49,099,302 74,747,876
(15,585,040) (48,913,619) (64,498,659)
569,642 2,528,304 3,097,946
8,950,615 4,273,582 5,493,091 18,717,288
$ (6,064,783) $ 4,273,582 $ (40,892,224) $ (42,683,425)
a
CITY OF PEARLAND, TEXAS
COMBINING STATEMENT OF ACTIVITIES
DISCRETEL Y PRESENTED COMPONENT (NITS- GOVERNMENTAL ACTIVITIES
For the Year Ended September 30, 2011
Program
Revenues
Net (Expense) and Changes in Net Assets
Operating
Economic
Tax Increment
Development
Grants and
Development
Reinvestment
Authority of
Functions/Programs
Expenses
Contributions
Corporation
Zone#2
Pearland
Totals
Component Units:
Pearland Economic
Development Corporation
$ 3,912,444
$
$ (3,912,444)
$
$
$ (3,912,444)
Tax Increment
Reinvestment Zone #2
5,527,689
(5,527,699)
(5,527,689)
Development Authority of
Pearland
12,427,195
(12,427,195)
(12,427,195)
$ 21,867,328
... 3
$
(3,912,444)
(5,527,699)
(12,427,195)
(21,867,328)
General Revenues:
Taxes:
Property taxes
Sales and use tax
Unrestricted investment earnings
Miscellaneous
Transfers between component units
Total General Revenues and Transfers
Change in net assets
Net assets, beginning
Net assets, ending
See Notes to Financial Statements.
$ $ 14,724,037 $ $ 14,724,037
6,593,971 6,593,971
10,641 11,891 3,006 25,538
657,523 657,523
(11,819,230) 11,819,230
7,262,135 2,916,698 11,822,236 22,001,069
3,349,691 (2,610,991) (604,959) 133,741
(9,414,474) 6,884,573 (40,287,265) (42,817,166)
$ (6,064,783) $ 4,273,582 $ (40,892,224) $ (42,683,425)
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DISCRETELY PRESENTED COMPONENT UNITS
BALANCE SHEETS - GOYERNMENTAL FUNDS
September 30, 2011
Assets
Cash and equivalents
Investments
Receivables -less allowance for
uncollectibles
Due from primary government
Prepaid items
Restricted cash
Total Assets
Liabilities
Accounts payable and
accrued expenses
Customer deposits
Total Liabilities
Fund Balance
No"pendable:
Prepaid items
Restricted for:
Debt service
Economic development
Total Fund Balance
Total Liabilities and Fund Balance
Fearland
Economic
Development
Corporation
Tax Increment Development Total
Reinvestment Authority of Component
Zone H2 Pearland Units
$ 3,869,964 $ 4,169,845 S 2,678,435 S 10,718,244
3,611,882 3,611,882
1,155,488 105,449 1,260,937
12,691 12,691
11,355 11,355
665,254 2,712,587 3,377,841
$ 9,313,943 $ 4,287,985 $ 5,391,022 $ 18,992,950
$ 35,452 $ 14,403 $ 1,400 $ 51,255
38,333 38,333
73,785 14,403 1,400 89,588
11,355 11,355
665,254 2,712,587 3,377,841
8,563,549 4,273,582 2,677,035 15,514,166
9,240,158 4,273,582 5,389,622 18,903,362
S 9,313,943 $ 4,297,985 $ 5,391,022 $ 18,992,950
Reconciliation from fund balance to net assets
fund balance
$ 9,240,158 $
4,273,582 $ 5,389,622
$ 18,903,362
Add capital assets
9,879,734
9,879,734
Less revenue bonds payable
(25,045,450)
(46,097,563)
(71,143,013)
Less other long-term liabilities
(43,613)
(43,613)
Less interest payable
(95,612)
(184,283) (279,895)
Net Assets
$ (6,064,783) $
4,273,582 $ (40,892,224}
$ (42,683,425)
100
CITY OF PEARLAND, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
For the Year Ended September 30, 2011
Pearland
Economic
Tax Increment
Development
Total
Development
Reinvestment
Authority of
Component
Corporation
Zone 42
Pearland
Units
Revennes
Taxes:
Property taxes
$
$ 14,724,037
$
$ 14,724,037
Sales and use taxes
6,593,971
6,593,971
Investment earnings
10,643
11,891
3,006
25,540
Other
657,523
657,523
Total Revenues
7,262,137
14,735,928
3,006
22,001,071
Expenditures
Current:
General government
111333
11,333
Economic development
2,122,912
5,527,689 9,740,000
17,390,601
Capital Outlay
64,652
64,652
Debt Service
Principal
800,000
1,830,000
2,630,000
Interest
1,226,324
2,385,172
3,611,496
Bond issuance cost
Intergovernmental - City
173,158
173,158
Total Expenditures
4,387,046
5,527,689 13,966,505
23,881,240
Revenues over (under) expenditures
2,875,091
9,208,239 (13,963,499)
(1,990,169)
Other Financing Sources (Uses)
Transfers from other component units
11,819,230
11,819,230
Transfers (to) other component units
(11,819,230)
(11,819,230)
Total other financing sources (uses)
(11,819,230)
11,819,230
Changes in fund balance
2,875,091
(2,610,991)
(2,144,269)
(1,880,169)
Fund Balances - Beginning
6,365,067
6,884,573
7,533,891
20,783,531
Fund Balances - Ending
$ 9,240,158
$ 4,273,582
$ 5,389,622
$ 18,903,362
Reconciliation from changes in fund
balance to changes in net assets
Change in fund balance
$ 2,875,091
$ (2,610,991)
$ (2,144,269)
$ (1,880,169)
Add principal payments
800,000
1,830,000
2,630,000
Less amortization
(296,403)
(296,403)
Changes in interest payable
2,582
5,713
8,295
Less post -employment benefit
liability expense
(28,642)
(28,642)
Less depreciation
(358,848)
(358,848)
Add capital outlay
59,508
59,508
Changes in Net Assets
$ 3,349,691
$ (2,610,991)
$ (604,959)
$ 133,741
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