HomeMy WebLinkAboutCAFR 2006
Comprehensive Annual
Financial Report
For the Year Ended
September 30, 2006
City ofCity of
Georgetown, TexasGeorgetown, Texas
CITY OF GEORGETOWN, TEXAS
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
Prepared by:
Division of Finance and Administration
Micki Rundell, CGFO – Director
Leticia Zavala, CGFO – Controller
Lorie Lankford, CGFO – Chief Accountant
www.georgetown.org
Transmittal Letter Page i
January 29, 2007
Honorable Mayor and City Council,
City Manager and Citizens of Georgetown, Texas:
The comprehensive annual financial report of the City of Georgetown, Texas (the City) for the year ended
September 30, 2006, is hereby submitted. The financial statements are presented in conformity with
generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards
Board (GASB) and have been audited by independent auditors in accordance with generally accepted auditing
standards.
Management Responsibility for Financial Information. The City’s Finance and Administration Division has
prepared the Report and is responsible for both the accuracy of the data and the completeness and fairness of
the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed data is
complete and reliable in all material respects. All disclosures necessary to enable the reader to gain an
understanding of the City's financial activities have been included.
Report Format. The comprehensive annual financial report is presented in three sections: introductory,
financial, and statistical.
• The introductory section includes this transmittal letter, which provides general background and
descriptive information and highlights the financial affairs of the City. Also included here are the
Government Finance Officers Association (GFOA) Certificate of Achievement, the City's organization
chart, a list of principal officials, and a map showing the location of the City.
• The financial section includes the Audit Opinion from the independent auditor, Management’s Discussion
and Analysis, the Basic Financial Statements, including the notes, combining and individual fund
statements for all of the funds of the City.
• The statistical section includes selected financial, operating and demographic information, generally
presented on a multi-year basis.
The Reporting Entity. This report includes all the funds of the City, as well as, the City’s discretely presented
component unit, the Georgetown Economic Development Corporation (GEDCO), its 4A economic
development corporation. The City provides a full range of services, which include police, and fire protection;
construction and maintenance of streets and other infrastructure; recreational activities and cultural events. In
addition to general government activities, the City also provides electric, wastewater, water, sanitation,
stormwater drainage and airport services which are included in the reporting entity. The City is also financially
accountable for Georgetown Transportation Enhancement Corporation (GTEC), a Texas 4B economic
development corporation, which funds transportation projects that enhance economic development within the
City. GTEC is presented as a blended component unit within the reporting entity.
Management Discussion and Analysis. GAAP requires management to provide a narrative introduction,
overview and analysis to accompany the basic financial statements in the form of Management’s Discussion
and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City’s MD&A can be found immediately following the independent auditors’ report
located at the front of the financial section of this report.
DESCRIPTION OF THE CITY
Georgetown once was a small town, founded in 1848, with a strong agricultural base, in the heart of
Williamson County, 26 miles north of Austin. Today, Georgetown has an estimated population of 41,294, with
an additional 15,000 within the extra-territorial jurisdiction (ETJ) and serves as the county seat of Williamson
County, the second fastest growing county in Texas. Today's Georgetown struggles to maintain its unique and
historic character while managing on-going growth and economic viability.
Page ii Transmittal Letter
Over the past 20 years, Georgetown has worked to restore and maintain its historic downtown square and to
ensure that downtown is the heart of the community. This work was acknowledged when it won the Great
American Main Street Award in 1997 and is on-going, as Georgetown continues to ensure the economic
vitality of its downtown. The City adopted a Downtown Master Plan in 2003 to provide guidance in managing
growth and redevelopment of the area to preserve its historic character and small town “feel”.
Due to this unique character and small town charm, Del Webb Corporation elected to build its first Texas
development in Georgetown with the 1995 opening of Sun City Texas. Today, over 4,600 homes with over
6,000 retirees make Sun City and Georgetown their home. Del Webb intends to complete the 7,500 unit
development within the next 4 to 5 years.
Georgetown is a Home Rule Charter City and operates under a Council - Manager form of government. A
mayor and seven council members are elected on staggered, three-year terms from single member districts.
Georgetown is also the home to Southwestern University, which continues to receive national recognition. The
University is ranked No. 10 for “Best College Values” on the National Liberal Arts Colleges list by U.S. News
and World Report. With 1,300 students and 583 employees, the University provides substantial economic and
cultural contributions to Georgetown.
GEORGETOWN'S ECONOMIC OUTLOOK
Community Growth – 2005/06 Review Summary
Providing services to a rapidly growing community continues to challenge community leaders. Much headway
has been made, as new revenue sources were developed and existing ones expanded. The City’s tax base
grew to over $3 billion, while the population topped 41,000. Utility customers have grown to over 22,000, a 6%
growth over last year. The City’s electric utility expanded service to the new Premium Outlet Mall and new
Scott & White Hospital, both located in the City of Round Rock. Over 100 new jobs were created as Tasus
Texas, a major supplier for the new Toyota plant in San Antonio, opened in January 2006. Retail opportunities
also increased as Wolf Ranch and the Rivery shopping areas continued their build out. The historic downtown
square continues to be a viable business area within the City with several renovation and redevelopment
projects underway. Development continues along Williams Drive to serve the over 6,000 residents of Sun
City. Residential growth continues with a record 1,300 new building permits issued last year, with over 600 of
those being in Sun City. The City annexed over 10,000 acres over the past two years in an attempt to
preserve natural areas and ensure quality growth for Georgetown’s gateway areas including along Highway 29
and the new State Highway 130, the new toll road connecting Georgetown to San Antonio, the first phase of
which opened in December 2006. Overall, it’s an exciting time to be in Georgetown.
Continued Economic Growth
While overall economic growth in Texas has been good over the past two years, Georgetown’s growth has
been even better. This is due in part to its proximity to major employers in the area, such as Dell Corporation
in Round Rock and other high tech companies in the north Austin area, as well as a large retirement
community. The average disposable income in Georgetown and Williamson County continues to be well
above the state average.
Georgetown is located on Interstate 35, the major corridor between Dallas and San Antonio, at the intersection
of State Highway 130. SH 130 is a new toll road linking Georgetown with Interstate 10, east of San Antonio,
thereby bypassing the highly congested Austin area. The final expansion of Parmer Lane, a major arterial
from the Austin and Round Rock area, will open many sites between Georgetown and Round Rock for
development. This major state construction project is expected to alleviate traffic congestion and provide an
economic benefit to the area.
Georgetown continues to expand its tax base with expanded retail opportunities. Wolf Ranch, a 750,000 sq. ft.
retail center that opened in 2005, is home to Target, Best Buy and numerous other national retailers. Revenue
from this development continues to increase as build out of the project continues. Full build out is expected by
late 2007, once the final road improvements are completed.
Transmittal Letter Page iii
The Downtown area continues to see revitalization and development. The City continues to implement
projects outlined in the Downtown Master Plan. At least four new redevelopment projects are currently
underway in the area bringing additional retail, office and residential units to the area. Within the last year,
several new businesses have relocated to the area, including Vista solutions, a computer software company
that is located over a new downtown sports bar. Several new restaurants have located to the downtown
square, including Romeo’s, an Austin based gourmet Italian cafe. All of these additions contribute to making
the downtown a vibrant after-hours destination.
Georgetown takes an active role in water and wastewater planning with both the Brazos River Authority (BRA)
and Lower Colorado River Authority (LCRA) to find regional solutions to the ever increasing demand for
services, while protecting the natural environment within the area. Growth within the utilities continues to have
strong impacts to the financial and economic conditions of Georgetown.
The City continues preliminary negotiations with LCRA regarding its long term power supply contract, as the
current contract expires in 2016. Currently, the City receives 90% of its power needs from the LCRA. The
City’s goal is to ensure adequate supplies well into the future, with minimal financial impacts to the rate base.
In May 2005, voters adopted the additional ¼ cent sales tax that is allowed through the state statues to be
collected by cities, with 1/8 cent of the sales tax designated for the promotion and development of new and
expanded business enterprises allowable under Texas Economic Development Corporation 4A and 1/8 cent to
be used to reduce property tax rates. Collections of this additional tax began in October 2005.
MAJOR INITIATIVES
Utility Rates. The City continues to review rate requirements for all utilities annually, as part of the budget
process. Rates were not adjusted in 2006. Environmental mandates for water and wastewater continue to be
the driving factor in rate analysis. Water and wastewater rates were reviewed by an outside consultant in
2006 to ensure rates were funding the costs of providing services. The City uses a conservation water rate
structure that allows the users of the peak demand for water to pay for the costs of future plant expansion.
Wastewater rates are adjusted as needed to fund mandates related to the City’s location over the Edward’s
Aquifer Recharge Zone. Electric rates are adjusted through a power cost adjustment, which is used to recover
fuel costs greater than those included in the City’s base electric rate.
Utility System Expansion. The City contracted for over $18.9 million to expand the utility system in fiscal
year 2006. Projects for line expansion in the DB Wood/Booty’s Crossing area were completed. The
expansion of the Berry Creek Wastewater Treatment Plant was completed. An irrigation line to expand the
City’s use of effluent for irrigation purposes was completed to the Georgetown Country Club. Electric capital
improvements were completed to expand the utility system into new residential areas, as well as, various
commercial areas, including the Round Rock Outlet Mall and Scott & White hospital located inside the City of
Round Rock.
Transportation. The 2006 Quality of Life Survey of Georgetown citizens indicated transportation was one of
the top concerns. Many City streets are expanded and maintained by either Williamson County or the Texas
Department of Transportation (TxDot). The Georgetown Transportation Enhancement Corporation completed
an interlocal agreement with TxDot to make contributions of 4B sales tax collection to accelerate planned
improvements at Williams Drive, as well as, IH 35 at Lakeway. The improvements along State Highway 29, to
accommodate traffic requirements for Wolf Ranch were completed in November 2005, and Wolf Ranch
Parkway, a connecting road between Wolf Ranch and the Rivery was completed in November 2006. Work
continues on the Southeast Arterial One, connecting the City’s Inner Loop to SH 130. This road is expected to
be completed in early 2008.
Public Safety. Improving public safety response has been a major priority for the last several years. The
2005/06 budget was the second year of a three year plan to bring public safety staffing to acceptable levels,
with the addition of another six police officers and five firefighters. In addition, efforts have been made to
improve public safety compensation to make Georgetown more competitive with other local governments
when hiring new officers.
Page iv Transmittal Letter
Long Range Planning. Planning for Georgetown’s future is a major priority, as the City began an update of
its comprehensive plan. The City has annexed over 10,000 acres and increased its land size by 41%. These
annexations were done to ensure quality growth and development along Georgetown’s gateways, including
the new SH 130 area. The Williams Drive Gateway study was completed in 2006 for redevelopment of the
85 acre area along IH 35 and Williams Drive.
Park Improvements. The City continues to expand its award winning park system through continued
development of the City’s trail system along the San Gabriel rivers to Lake Georgetown. The City opened the
5 mile trail between Rivery Park and Lake Georgetown in 2006. Design of the $10 million recreation center
expansion approved by the voters in November 2004 began in August 2006. This facility is expected to be
completed in early 2008. Renovation of the City’s Community Center, originally built in the 1930’s, was
underway, with completion expected in February 2007.
Facility Construction. The City continues to implement its long range facility plan. Construction of the new
55,000 sq ft library was completed in December 2006. This new $9.4 million facility, also approved by voters
in December 2004, is nearly 4 times the size of the City’s existing library and includes several large rooms for
community events. The City also completed repairs to the Grace Church Historical Center and continued
construction of a new fire station to relocate the Fire Station 1 from downtown. Completion of the new station
is expected in late January 2007.
FINANCIAL INFORMATION
The City is responsible for establishing and maintaining internal controls designed to ensure that the assets of
the City are protected from loss, theft or misuse and that adequate accounting data are compiled to allow for
the preparation of financial statements in conformity with generally accepted accounting principles. Internal
controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The
concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by
management.
The City’s Director of Finance and Administration, Controller, and other key staff in the Division of Finance and
Administration design and maintain the internal control structure. These controls are under continuing review
by management, and under annual review by the independent auditors. During the year, the Finance Division
performs internal audits on selected procedures and operations throughout the City organization. The
selection of priorities and timing of audits are determined by the Director of Finance and Administration, along
with the City Manager.
Single Audit. As a recipient of federal and state financial assistance, the City is responsible for ensuring that
adequate internal controls are in place to ensure compliance with applicable laws and regulations related to
those programs. Internal controls are subject to periodic evaluation by management. The tests relating to the
receipt of such funds are known as Single Audit testing. These tests are made to determine the adequacy of
internal controls, including that portion related to federal financial assistance programs, as well as to determine
that the City has complied with applicable laws and regulations. The City's receipt of federal and state funding
for the year ended September 30, 2006 did not meet the threshold requiring Single Audit testing.
Budgetary Controls. The City maintains budgetary controls to ensure compliance with legal provisions
embodied in the annual appropriated budget approved by the City Council. Activities of all funds are included
in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures
cannot legally exceed the appropriated amount) is established by division and department within an individual
fund. The City also maintains an encumbrance accounting system as one technique of accomplishing
budgetary control. Encumbered amounts are reserved at year-end and carried forward into the following year.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
Transmittal Letter Page v
Cash Management. Cash temporarily idle during the year was invested in demand deposits, US Treasury
and agency securities, and the authorized investment pools, TexPool, Texas Term and TexStar. Demand
deposits were either insured by federal depository insurance or collateralized. An independent third party bank
in the City’s name held collateral on deposits. The City's investment policy allows investments in collateralized
bank certificates of deposit, repurchase agreements, U.S. Treasury and agency securities and investment
pools meeting specific criteria. All investments were in compliance with this policy and state law. The City had
no realized losses on any securities held during the year.
Risk Management. The City strives to enhance its risk management program each year. In order to
minimize insurance costs and mitigate future increases, various risk control techniques are employed. Those
techniques primarily include employee accident prevention training and the review of all accidents resulting in
property damage or personal injury.
OTHER INFORMATION
Independent Audit. The City Charter requires an annual audit by independent certified public accountants.
The accounting firm of Brockway, Gersbach, McKinnon & Niemeier was selected by the City Council. The goal
of the independent audit is to provide reasonable assurance that the financial statements of the City for the
fiscal year ended September 30, 2006 are free of material misstatement. The independent auditor concluded,
based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City’s
financial statements for the fiscal year ended September 30, 2006, are fairly presented in conformity with
GAAP. The independent auditor’s report on the basic financial statements and schedules are included in the
financial section of this report.
Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2005. The Certificate of Achievement is the highest
form of recognition for excellence in state and local government financial reporting. In order to be awarded a
Certificate of Achievement, a government unit must publish an easily readable and efficiently organized
Comprehensive Annual Financial Report, whose contents conform to program standards. Such
Comprehensive Annual Financial Reports must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City has
received a Certificate of Achievement for eighteen consecutive years. We believe our current report continues
to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA.
We are also proud to report that the GFOA has presented the Distinguished Budget Presentation Award to the
City of Georgetown for each of the past eighteen years. We are especially proud of this recognition since our
Annual Operating Plan, or budget, is a part of the City's comprehensive plan, the Georgetown Century Plan.
Acknowledgments. The presentation of this report on a timely basis could not be accomplished without the
efficient and dedicated services of the entire staff of the Finance Division. We would like to express our
appreciation to all members of the division who assisted and contributed to its presentation. Special
acknowledgment goes to Lorie Lankford, Chief Accountant, Joe Lara, Chief Financial Analyst, Lisa Haines,
Accountant II, and Danella Elliott, Administrative Analyst, for their dedication in preparing this report.
We would also like to thank the City Manager, Mayor and City Council. The preparation of this report would
not be possible without their leadership and support.
Sincerely,
Micki Rundell, CGFO Leticia Zavala, CGFO
Director of Finance and Administration Controller
vi
vii
POLICEFINANCE ANDADMINISTRATION FIREGEORGETOWN
UTILITY
SYSTEMS
Assistant City
Manager
Transportation
Services
Electric Services
Water Services
COMMUNITYSERVICES
Engineering
Municipal Court
Accounting
Support Services
CVBMain StreetTourism
Parks
Recreation
Library
Planning &
Development
Services
InspectionServices
Airport
InformationTechnology
A HOME RULE CITY
CITY COUNCIL
MAYOR (elected at large)
SEVEN COUNCIL PERSONS
(elected by district)
CITIZENS OF
GEORGETOWN
CITY SECRETARYCITY ATTORNEY MUNICIPALCOURT JUDGE BOARDS &COMMISSIONSCITY MANAGER
Utility Billing
Economic
Development
Human
Resources
COMMUNITYDEVELOPMENT
Support Services
AdministrativeServices
Animal Services
Field Operations
Administration
Operations
CITY DIVISIONS
viii
CITY OF GEORGETOWN, TEXAS
ELECTED OFFICIALS AND ADMINISTRATIVE OFFICERS
SEPTEMBER 30, 2006
ELECTED OFFICIALS
Mayor Gary Nelon
City Council Member, District 1 Patty Eason
City Council Member, District 2 Gabe Sansing
City Council Member, District 3, Mayor Pro Tem Doug Smith
City Council Member, District 4 Henry Carr
City Council Member, District 5 Pat Berryman
City Council Member, District 6 Farley Snell
City Council Member, District 7 Ben Oliver
APPOINTED OFFICIALS
City Manager Paul Brandenburg
City Attorney Patricia Carls, Brown & Carls L.L.P.
City Secretary Sandra Lee
Municipal Court Judge Randy Stump
OTHER CITY OFFICIALS
Assistant City Manager Tom Yantis
Assistant City Manager -Utilities Jim Briggs
Director of Finance and Administration Micki Rundell
Fire Chief Anthony Lincoln
Police Chief David Morgan
ix
Austin
Dallas/Fort Worth
San Antonio
Lubbock
El Paso
Amarillo
Houston
Georgetown
Location
Georgetown is the northern most “gateway” to the
gently rolling hills of Central Texas. While
Georgetown offers the amenities and charm of a
small community rooted in values of days gone by,
it’s strategically and centrally located in the
middle of the four
major metropolitan
areas of Texas. Austin
is 26 miles south,
Dallas is two hours
north, Houston is
two hours
southeast and San
Antonio is just one-
and-a-half hours
south, placing
Georgetown in a very
advantageous position
for cultural and economic
development. Access to
Georgetown via the Austin-
Bergstrom International Airport and
the north/south highway artery of
Interstate 35 and east/west highway
artery of Highway 29 make traveling
to and from Georgetown easy.
3
CITY OF GEORGETOWN, TEXAS
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the City of Georgetown financial performance
provides an overview of the City’s financial activities for the fiscal year ended September
30, 2006. Please read it in conjunction with the transmittal letter at the front of this report
and the City’s financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
General Fund
• At the end of the current fiscal year, undesignated fund balance for the General Fund
was $7.9 million, or 37% of the FY2006 General Fund expenditures. The
undesignated fund balance increased by $1.6 million from FY2005. Of this amount,
$770,000 represented an increase in budgeted contingency reserves. Revenues were
$1.6 million more than the original budget estimates.
• General Fund revenues increased $2.9 million, an increase of 18% over FY 2005.
• General Fund expenditures increased by $3 million, an increase of 17% over FY 2005.
This increase was due to increased staffing for the new Library, funding of parks
improvements, as well as cost of living salary increases and staffing increases related
to public safety.
Governmental Activities
• On a government-wide basis for governmental activities, the City had expenses net of
program revenue of $18.3 million. General revenues and transfers totaled $31 million,
resulting in an increase in net assets of $12.7 million.
• As of September 30, 2006, the City's governmental activities reported combined
ending net asset balances of $147 million. The largest element of this balance,
$122.3 million, is the value of the City’s investment in capital assets, such as streets,
parks and facilities, net of related debt. Other significant balances are restricted for
specific purposes such as debt service and capital projects.
• During fiscal year ended September 30, 2006, the City issued $12.4 million in General
Obligation bonds and Certificates of Obligation, of which $1.235 million was in support
of the Georgetown Transportation Enhancement Corporation (GTEC) projects to be
repaid through dedicated sales tax collections. The remainder of the debt issues
funded general capital projects and public safety equipment. The City also issued
$7.8 million in Refunding Bonds to extend the debt repayment schedule to match the
life of the corresponding improvements. The City's general obligation debt is rated
AA- by Standard & Poor's and Moody's.
• The City received over $6 million in roadway contributions in FY 2006. This amount
included street improvements in and around the Wolf Ranch retail development, as
well as improvements received through the City’s 2006 annexation initiative and
County road contributions.
CITY OF GEORGETOWN, TEXAS
MD&A
4
Business-Type Activities
• The net assets of the City's business-type activities increased by $23 million in FY
2006, primarily due to $13.8 million of infrastructure assets contributed by developers
for the Pinnacle, Georgetown Village, and other residential sub-divisions.
• The City issued $8.7 million of utility system revenue bonds for electric system
expansion. The City also issued $3.2 million in Refunding Revenue Bonds to retire
outstanding debt issued at a higher interest rate. Both Standard & Poor's and
Moody's have rated the City's utility system revenue debt as A+.
Entity-Wide
• The City's total net assets on a government-wide basis totaled $300.8 million at
September 30, 2006, an increase of 14% over September 30, 2005. Most of this
balance is invested in capital assets, restricted for specific purposes, or related to a
long-term receivable.
• The City received $20.4 million of grants and other capital contributions in FY 2006.
USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL
REPORT
This Comprehensive Annual Financial Report consists of three sections: introductory,
financial and statistical. As illustrated in the following chart, the financial section of this
report has three components: management’s discussion and analysis (this section), the
basic financial statements, and required supplementary information.
Components of the Financial Section
BASIC FINANCIAL STATEMENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL STATEMENTS
REQUIRED SUPPLEMENTARY
INFORMATION
Government-wide
Governmental Activities (Full Accrual)
Business-Type Activities (Full Accrual)
Notes to the Financial Statements
Fund
Governmental (Modified Accrual)
Proprietary (Full Accrual)
Fiduciary (Full Accrual)
CITY OF GEORGETOWN, TEXAS
MD&A
5
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements report information about the City as a whole,
using accounting methods similar to those used by private-sector companies. The
statement of net assets includes all of the government’s assets and liabilities, reported
using the full accrual basis of accounting. The statement of activities accounts for all of
the current year’s revenues and expenses, regardless of when cash is received or paid.
The two government-wide statements report the City’s net assets and how they have
changed. Net assets, which are the difference between the City’s assets and liabilities,
are one way to measure the financial health of the City. Over time, increases or
decreases in the City’s net assets are an indicator of whether its financial health is
improving or deteriorating. To assess the overall health of the City, one needs to consider
other non-financial factors such as changes in the City’s property tax base and condition
of the City’s infrastructure.
The government-wide financial statements of the City are divided into two categories:
Governmental Activities – Most of the City’s basic services are included here, such as
police, fire and other public safety services, parks and recreation, public library, street
maintenance and general administration. Property and sales taxes, return on investment
from the City’s utility services, and charges for services finance most of these activities.
Business-type Activities – The City’s Water Services Fund, which includes water,
wastewater and irrigation services, as well as its Electric utility, are reported here.
Sanitation, Stormwater Drainage and the City’s Airport are also reported in these
activities. Fees charged to customers fund the costs of providing these services.
FUND FINANCIAL STATEMENTS
The fund financial statements provide more detailed information about the City’s most
significant funds and will be more familiar to traditional users of government financial
statements. The focus is now on major funds rather than fund types.
The City has three types of funds:
Governmental Funds – General Fund, Special Revenue Funds, Capital Projects Funds
and the Debt Service Fund are governmental funds, which focus on:
(1) How cash and other financial assets that can readily be converted to cash flow
in and out, and
(2) The balances left at year-end that are available for spending.
Consequently, the governmental funds statements provide a short-term view that helps
determine whether there are more or fewer financial resources that can be spent in the
near future to finance the City’s programs. Because this information does not encompass
the additional long-term focus of the government-wide statements, additional information
is provided with the governmental fund financial statements that explains the reconciliation
between the fund statements and the government-wide statements.
CITY OF GEORGETOWN, TEXAS
MD&A
6
Proprietary Funds – Services for which the City charges fees and rates that intend to
fully recover the cost of providing the service are reported in proprietary funds. Two types
of proprietary funds are allowed in governmental accounting: enterprise funds and
internal service funds. These funds, like the government-wide statements, provide both
long-term and short-term financial information.
The City’s enterprise funds are substantially the same as its business-type activities, but
the fund financial statements provide more detail and additional information, such as cash
flows. The City utilizes enterprise funds to account for its electric, water services, airport,
sanitation, and stormwater drainage activities. The City uses internal service funds to
report activities that provide supplies and services for the City’s other programs, activities
and funds. The City’s internal service funds are used for providing facility maintenance,
fleet services, joint services (providing administrative functions to the other funds) as well
as information technology services.
Fiduciary Funds – The City is trustee, or fiduciary, for certain amounts held on behalf of
others, and for certain pass-through arrangements. The City is responsible for ensuring
that the assets reported in these funds are used for their intended purposes. The City’s
fiduciary activities are reported in a separate statement of fiduciary net assets. Assets for
the City’s flexible spending cafeteria plan, assessment collections for the City's public
improvement districts, and pass-through lease agreements for Texas Capital Fund
projects are held in fiduciary funds. These fiduciary activities are excluded from the City’s
government-wide financial statements because the City cannot use these assets to
finance its operations.
FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Statement of Net Assets:
The following table reflects the condensed Statement of Net Assets:
200620052006200520062005
Current and other assets$38,213$32,591 $47,205$42,608 $85,418$75,199
Capital assets171,394152,255167,570142,655338,964294,910
Total assets$209,607$184,846 $214,775185,263 $424,382370,109
Long-term liabilities$56,354$46,10350,697$45,105107,051$91,208
Other liabilities6,1634,38010,3279,43216,49013,812
Total liabilities$62,517$50,483 $61,024$54,537 $123,541$105,020
Net assets:
Invested in capital assets, net of related debt$122,268$107,692 $117,419$98,081 $239,687$205,773
Restricted18,25516,8375,3891,25223,64418,089
Unrestricted6,5679,83430,94331,39337,51041,227
Total net assets$147,090134,363 $153,751$130,726 $300,841$265,089
Summary Statement of Net Assets
(In thousands)
Govtl ActivitiesBus-Type ActivitiesTotal Primary Government
CITY OF GEORGETOWN, TEXAS
MD&A
7
Net Assets - Primary Government- 9/30/06
Govtl - Inv in Net
Assets
40.642%
Govtl - Restricted
6.068%
Bus-Type - Rest.
1.791%
Govmtl - Unrest.
2.183%
Bus-Type - Inv. In
Net Assets
39.030%
Bus-Type - Unrest.
10.285%
The City's combined net assets increased by $35.7 million to $300.8 million from $265.1
million in FY 2005.
• Net assets of the governmental funds were $147.1 million. Most of these assets are
invested in capital assets or restricted for particular purposes, such as debt service or
capital projects.
• The City's unrestricted net assets for governmental activities, which can be used to
finance day to day operations, totaled $6.6 million.
• Included in unrestricted net assets are fund balances that are earmarked for particular
purposes, such as parks improvements, street maintenance, and tourism. The
balance of these funds at September 30, 2006 was $3.7 million.
• Net assets increased primarily as a result of increases in capital assets and
construction in progress. Projects completed during the year included:
• Williams Drive Pool Rehabilitation
• Water Detention Pond at the Municipal Complex
• Safety equipment at various facilities
• Plan design for the expanded Recreation Center
• Construction work for:
• Fire Station 1
• New Public Library
• Community Center
• San Gabriel Park improvements, as well as playground equipment purchases in
multiple parks
• Transportation improvements including:
• Contributions by Georgetown Transportation Enhancement Corporation to the
Texas Department of Transportation towards improvements related to the
widening of Williams Drive.
• Road connector between Rivery Park and SH 29.
• Net assets invested in capital assets net of related debt increased in part due to
developer's contributed capital totaling $20.4 million, including $6.2 million of street
improvements and $14.2 million of utility improvements due to annexations and new
residential developments.
• Net assets of business-type activities increased by $23 million, most of which was due
to the recognition of developer contributed capital.
CITY OF GEORGETOWN, TEXAS
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200620052006200520062005
Revenues:
Program Revenues
Charges for Service$4,581$3,482$70,604$59,201$75,185$62,683
Operating Grants & Contributions169901169901
Capital Grants & Contributions6,15413,47414,2176,66620,37120,140
General Revenues
Property Taxes8,9208,3298,9208,329
Sales Taxes10,9638,49610,9638,496
Other Taxes845749845749
Franchise Taxes2,2091,9422,2091,942
Interest1,3995071,6737323,0721,239
Gain on Sale of Capital Assets85916101,020
Other4621,1693,9399894,4012,158
Total Revenues$35,702$39,908$90,433$67,749$126,135$107,657
Expenses:
Culture-recreation5,6494,7025,6494,702
Development2,3262,0612,3262,061
Fire4,3973,7684,3973,768
General government3,6724,4053,6724,405
Interest on long term debt2,0102,2562,0102,256
Police7,3935,9627,3935,962
Streets3,7581,5223,7581,522
Airport 2,7542,6062,7542,606
Electric 37,86729,02737,86729,027
Sanitation3,5192,8693,5192,869
Stormwater1,3701,2161,3701,216
Water Services15,66814,23515,66814,235
Total Expenses$29,205$24,676$61,178$49,953$90,383$74,629
Change in net assets before transfers6,49715,23229,25517,79635,75233,028
Transfers6,2305,220(6,230)(5,220)
Change in net assets12,72720,45223,02512,57635,75233,028
Net Assets - Beginning134,363113,911130,726118,150265,089232,061
Net Assets - Ending$147,090$134,363$153,751$130,726$300,841$265,089
(In thousands)
Changes in Net Assets
Bus-Type ActivitiesGovtl ActivitiesTotal
• During 2006, the City invested $11.6 million towards improving and expansion of utility
infrastructure, compared to $11.3 in 2005. Projects included:
• Electric residential and commercial system expansion
• Berry Creek Lift Station
• DB Wood/Booty’s Crossing Water Line
• Dove Springs Wastewater Plant rehabilitation (expected completion in 2007)
• Smith Branch improvements
• Edward’s Aquifer Recharge Zone Inflow and Infiltration testing and repairs
CITY OF GEORGETOWN, TEXAS
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Revenues - Fiscal Year 2006
Charges for
Service
60%
Grants &
Contributions
16%
Property Taxes
7%
Sales Taxes
9%Other
8%
REVENUES
For the fiscal year ended September 30, 2006, program revenues from governmental
activities totaled $10.9 million, of which $4.6 million resulted from charges for services.
This revenue source increased $1.1 million over the prior year, primarily due to growth
in the municipal court and development fee areas.
General property taxes totaled $8.9 million. Included in these taxes are real and
personal property levies which are assessed October 1, and payable before the
following January 31.
Assessed valuations on existing properties increased 3.3%, while total assessed
valuation increased 9% over the prior year. The variance is attributed to $136
million in new and annexed property.
The ad valorem tax rate for fiscal year 2006 was $0.34626 per $100 of assessed
valuation. This is the same tax rate as fiscal year 2005.
Sales taxes, the City’s largest source of general government revenue, totaled $10.96
million for fiscal year 2006, which was an increase of 29% over the prior year. This
increase was primarily due to new commercial development within the City, including
a partial year of Wolf Ranch revenue. Sales tax revenues represent 44.2% of the
general revenue total, excluding transfers from the return on investment transfers from
the utility funds.
Other taxes, which include hotel/motel taxes and automobile inventory taxes, totaled
$844,718.
Program revenues are derived from the program itself and reduce the cost of the
function to the City. Total program revenues for both governmental and business-type
activities are described below.
Governmental activities program revenue was $10.9 million, a decrease of over
39% over the prior year. This is due to a decrease in streets capital contributions.
Program revenue reported in the category "Charges for Services" represents
receipts primarily from development and building inspection fees, parks fees, fire
billing for services and court fines. Other governmental program revenues
included operating grants for parks, fire and police programs.
Business-type activities program revenues totaled $84.8 million, a 29%
increase over the prior year. Capital grants and contributions were over $7 million
higher than the prior year, due to increased developments and new subdivisions
CITY OF GEORGETOWN, TEXAS
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added. Charges for services were over $11 million higher. This increase is
primarily due to increased customer revenue, which is the most significant of the
program revenues. "Charges for Services”, which represent receipts from utility
customers for electric, water, wastewater, and sanitation use, increased over 19%.
This increase was primarily related to increased purchased power costs, which
were passed along to customers, as well as an increase in customers. Other
program revenues include airport fuel sales, hangar rentals and stormwater
drainage fees.
Primary Government - Functional Expenses for
FY 2006
Culture/Rec
6%
Public Safety
13%
Streets
4%
Electric
43%
Other
17%
Water Services
17%
EXPENSES
Expenses for governmental activities totaled $29.2 million, versus $24.7 million in
2005. Major expenditures include salaries for providing services in the public safety
area, as well as for public library and recreation programs. Expenses were $4.5
million higher than the prior year. Major increases included increases to salary costs
resulting from Council's adoption of a public safety compensation program, which
provided a step plan to increase public safety salaries for each year of service, as well
as the second year of a public safety staffing plan. Salaries also increased due to a
4% cost of living adjustment for all other staff. Higher fuel costs also played a role in
the increase in operational expenses for programs.
Expenses for business-type activities totaled $61.2 million, an 23% increase over
the prior year, which provided electric, water, and wastewater services for customers,
as well as airport and stormwater drainage programs. The increase in expenses
relates to increased costs of purchased power, as well as expenses related to
additional customers and infrastructure maintenance for the utilities.
CITY OF GEORGETOWN, TEXAS
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FINANCIAL ANALYSIS OF THE CITY’S FUNDS
For the fiscal year ended September 30, 2006, the City's governmental funds reflect a
combined fund balance of $29.9 million.
$1.5 million is included in General Fund revenues and other financing sources in excess
of expenditures and other financing uses. The primary reason for the General Fund's
increase in fund balance is due to increased revenues, due to higher than anticipated
sales tax and increased franchise fees and the return on investment revenue from the
utility funds due to increase growth and sales.
General Capital Project Fund included $990,000 of increased fund balance for FY2006.
This increase is due to the timing of projects. The City expended $10.7 million in various
general capital projects including $7.4 million for the Library, $1.5 million for the Fire
Station, and $858,000 for the Community Center projects.
Non-major governmental funds included $1.6 million of excess revenues over
expenditures primarily relating to the timing of street improvement projects in the Sales
Tax Maintenance Fund and Streets Capital Improvement Fund.
General Debt Service Fund included $370,000 of increased fund balance for FY2006.
This increase was due to refunding bonds issued in FY2006 which reduced the current
year debt payment schedule.
Georgetown Transportation Enhancement Corporation, the City’s blended component
unit, had a decrease in fund balance of $610,101. This decrease is primarily related to
timing of street improvement projects funded in FY2005.
In addition, these other changes in fund balances should be noted:
Georgetown Transportation Enhancement Corporation contributed $4.7 million
in cash and debt funding of street improvements to enhance economic
development in 2006.
Direct expenditures for public safety totaled $11 million.
Parks, recreation and library expenditures totaled $4.6 million.
General government expenditures include $284,571 of social service
contributions to different organizations in the community.
Street maintenance expenditures were $1.8 million.
GENERAL FUND BUDGETARY HIGHLIGHTS:
BUDGET ADJUSTMENTS
The following is a brief review of the budgetary changes from the original to the final
budget.
The City approved three General Fund budget amendments during fiscal year 2006. The
amendments increased overall budgeted expenditures by $1.2 million from the original
budget, representing a .002% increase in appropriations. This increase was offset by
program revenues and unallocated prior year fund balances. The amendments consisted
of:
CITY OF GEORGETOWN, TEXAS
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BalanceDeletionsBalance
10/1/2005 Additions& Transfers9/30/2006
Non-depreciable Assets:
Land$4,042 $- - $4,042
Construction in progress10,347 14,713 $(1,563) 23,497
Other capital assets
Equipment15,900 2,235 (945) 17,190
Buildings21,257 - - 21,257
Improvements18,719 169 - 18,888
Streets99,549 6,681 - 106,231
Capital lease452 - - 452
Less accumulated depreciation (18,011) (2,633) 482 (20,162)
Capital Assets - Governmental$152,255 $21,165 $(2,025) $171,394
BalanceDeletionsBalance
10/1/2005 Additions& Transfers9/30/2006
Non-depreciable Assets:
Land $1,644 - - $1,644
Construction in progress5,721 $17,278 $(12,815) 10,184
Other capital assets
Equipment966 - - 966
Buildings4,969 - - 4,969
Improvements174,712 26,397 - 201,109
Less accumulated depreciation (45,357) (5,946) - (51,303)
Capital Assets - Business-Type$142,655 $37,730 $(12,815) $167,570
City-wide Totals$294,909 $58,895 $(14,840) $338,964
*Includes internal service funds assets, which are allocated to governmental activities
Change in Capital Assets*
(In thousands)
Governmental Activities
Change in Capital Assets*
(In thousands)
Business-Type Activities
$1.1 million for funding of general capital projects including the Community Center and
Fire Station construction projects, as well as, contributions to the commuter rail
project. These expenditures were offset by excess fund balances from prior year.
$43,000 for increased public safety compensation STEP plan adjustments to be more
competitive with surrounding cities. This expenditure was funded with increased sales
tax revenue.
$40,000 for costs associated with the computer system rebuild due to a failed server
in the Municipal Court department which was funded with increased court revenues.
The City also approved the increase to budgeted contingency reserves, from $3,930,000
to $4,700,000. These “rainy day” funds, or funds that are over and above appropriated
expenses, are used only in the case of an emergency.
CAPITAL ASSETS
The City's governmental activities (including a percentage of internal service funds) had
invested $171.4 million in a variety of capital assets and infrastructure. The City has
$167.6 million invested in its business-type activities capital assets. The detail is reflected
in the following schedule:
CITY OF GEORGETOWN, TEXAS
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2006 2005 2006 2005 2006 2005
General Obligation Bonds$54,430$44,306$4,266$4,510$58,696$48,816
Revenue Bonds45,88540,06445,88540,064
Obligation under capital lease142256142256
Compensated absence payable1,7671,5235465312,3132,054
Arbitrage rebate payable15181518
Total Long Term Debt$56,354$46,103$50,697$45,105$107,051$91,208
Govtl ActivitiesBus-Type ActivitiesTotal
City of Georgetown Outstanding Debt and Long-Term Liabilities
(In thousands)
The City prepared a complete inventory of street infrastructure assets in 2003 and 2004
and assigned a value to the inventory based upon the age of the street and construction
indexes. During 2005, the City completed its assessment of the condition of the streets
inventory for reporting under the modified approach for GASB 34 reporting.
The City financial policy establishes an average condition level for the City streets. The
Pavement Condition Index is a measurement scale for pavement condition, ranging from
zero (poor) to 100 for pavement in perfect condition. The Council adopted an average
PCI level of 85, to maintain the streets in “good” condition. The PCI for fiscal year 2006
was 91.
The City budgets approximately $825,000 annually of General Fund revenues for on-
going street maintenance projects, along with the staff costs and other maintenance costs
of the street department. In addition, the City also budgets for the approximate $1.2
million of funds received in the dedicated 1/4 cent sales tax for street maintenance. The
maintenance funds are allocated among various projects identified by the analysis to
ensure funds are spent where needed to maintain the PCI adopted by Council.
Utility infrastructure maintenance is budgeted within the utility funds. For fiscal year 2006,
funding for electric and water services infrastructure maintenance was $6.6 million.
For more detailed notes about the City’s capital assets, please see pages 51-53 of the
notes to the financial statements.
LONG-TERM DEBT
At September 30, 2006, the City had a total of $58.7 million in general obligation debt
outstanding. This represents a 21% increase over prior year. This increase reflects
the $4.175 million of self-supporting bonds, issued on behalf of the Georgetown
Transportation Enhancement Corporation for the Wolf Ranch development
improvements and is supported by dedicated sales taxes. Additional information
about the City's long -term debt is presented in Note 6 to the financial statements.
The state limits the legal amount of tax levy available for general obligation debt
service to $1.25 per $100 valuation. The City's 2006 debt levy equaled $0.13913 per
$100 assessed valuation, or 11% of the maximum allowed.
Total utility system revenue debt was $46 million as of September 30, 2006, including
new debt of $8.7 million issued within the Electric Services Funds to fund system
expansion. This increase is 15% greater than debt reported at September 30, 2005.
CITY OF GEORGETOWN, TEXAS
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A detailed analysis of the City’s long-term debt is located on pages 53-58 in the notes
to the financial statements.
ECONOMIC FACTORS
Unemployment in the City decreased from 4.2% in 2005 to 4.09% in 2006.
Population continued to grow steadily, at 5% annually, yet utility customer growth
averaged approximately 8% for all utilities. This variance represents continued growth
within the City's extra territorial jurisdiction (ETJ), that receives City utility services.
Retail development continued to expand, with the opening of the Wolf Ranch shopping
center, which includes Target, Old Navy and Best Buy retailers. The expansion is
evidenced by the overall increase in general sales tax revenue of 29% over 2005.
Annexations for the City are primarily related to the protection of our community
gateways. As of September 30, 2006, the total assessed valuation of the annexed
properties is $33.7 million and encompasses 7,249 acres.
DISCRETELY PRESENTED COMPONENT UNIT
The Georgetown Economic Development Corporation (GEDCO) has been included in the
reporting entity as a discretely presented component unit since it provides benefits to
other entities aside from the City. Separate audited financial statements are not issued for
GEDCO. Unaudited financial statements may be obtained from the City’s Finance office
at the address below.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This report is designed to provide City Council, citizens, customers, bond rating agencies,
investors and creditors with a general overview of the City’s finances. If you have
questions about this report or need additional financial information, contact:
Finance Division
City of Georgetown
113 East 8th Street
Georgetown, Texas 78626
(512) 930-3676
www.georgetown.org
Basic Financial Statements
CITY OF GEORGETOWN, TEXAS
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2006
Primary Government Unit
Georgetown
Economic &
GovernmentalBusiness-typeDevelopment
Activities Activities TOTAL Corporation
ASSETS:
Cash and cash equivalents $4,637,411 $3,792,867$8,430,278 $103,129
Cash and cash equivalents - restricted690,689690,689
Investments28,104,13819,060,86047,164,998503,514
Investments - restricted1,207,4631,207,463
Prepaid items3,3061,548,0851,551,391
Accounts receivable:
Services (net of allowance for uncollectibles)10,943,52210,943,522
Other3,351,3751,875,4625,226,837131,172
Internal balances(117,320)117,320 0
Inventories257,5033,508,2163,765,719
Long-term note receivable895,6862,928,1773,823,863
Deferred charges - bond issuance costs1,081,2491,532,2252,613,474
Capital assets: net of accumulated depreciation37,626,142155,740,630193,366,772
Land4,042,5711,644,5895,687,160
Streets106,229,595106,229,595
Construction in progress23,495,95710,184,33733,680,294
TOTAL ASSETS $209,607,613 $214,774,442 $424,382,055 $737,815
LIABILITIES AND NET ASSETS:
Liabilities:
Current Liabilties:
Accounts payable $3,789,485 $6,455,326 $10,244,811
Accrued interest 298,783301,852600,635
Total current liabilities4,088,2686,757,17810,845,446
Liabilities payable from restricted assets:
Construction contracts and retainages payable357,844357,844
Customer deposits839,611839,611
Total liabilities payable from restricted assets1,197,4551,197,455
Unearned revenue2,074,2692,372,2884,446,557
Noncurrent liabilities:
Due within one year3,408,9373,570,5816,979,518
Due in more than one year52,945,40547,126,305100,071,710
Total liabilities 62,516,87961,023,807123,540,686
Net Assets:
Invested in capital assets (net of related debt)122,268,551117,419,122239,687,673
Restricted for:
Debt Service878,668878,668
Capital Projects17,375,8615,389,06322,764,924 $737,815
Unrestricted6,567,65430,942,45037,510,104
Total net assets 147,090,734153,750,635300,841,369737,815
TOTAL LIABILITIES AND NET ASSETS $209,607,613 $214,774,442 $424,382,055 $737,815
The notes to the financial statements are an integral part of this statement.
Component
CITY OF GEORGETOWN, TEXAS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Charges forOperating GrantsCapital Grants
ExpensesServices& Contributions& Contributions
Functions/Programs
Primary government
Governmental Activities
Culture-recreation$5,649,191$991,505$67,296
Development2,325,7611,761,166
Fire4,397,108210,4531,300
General government3,671,786635,546 $146,440
Police7,392,816880,807100,267
Streets3,757,919101,685 6,007,197
Interest on long term debt2,010,409
Total governmental activities29,204,9904,581,162168,8636,153,637
Business -type Activities
Airport$2,753,948$2,595,764$$389,988
Electric37,866,85342,526,7281,030,107
Sanitation3,519,4873,446,566
Stormwater1,370,2671,716,0664,508,718
Water15,668,06120,318,6038,288,481
Total business-type activities61,178,61670,603,72714,217,294
Total primary government$90,383,606$75,184,889$168,863$20,370,931
Component Unit
Georgetown Economic & Development
Corportation $(35,180)$$$
General revenues:
Property Tax
Sales Tax
Taxes - other
Franchise taxes
Interest on investments
Other
Transfers
Total general revenues and transfers
Change in Net Assets
Net Assets, beginning of the year
Net Assets, end of the year
The notes to the financial statements are an integral part of this statement.
Program Revenues
Component
Unit
Georgetown
Economic &
GovernmentalBusiness-TypeDevelopment
ActivitiesActivitiesTotalCorporation
$(4,590,390)$$(4,590,390)
(564,595)(564,595)
(4,185,355)(4,185,355)
(2,889,800)(2,889,800)
(6,411,742)(6,411,742)
2,350,9632,350,963
(2,010,409)(2,010,409)
(18,301,328)(18,301,328)
$$231,804$231,804
5,689,9825,689,982
(72,921)(72,921)
4,854,5174,854,517
12,939,02312,939,023
23,642,40523,642,405
$(18,301,328)$23,642,405$5,341,077
$(35,180)
8,919,6948,919,694
10,962,79010,962,790760,125
844,718844,718
2,209,2352,209,235
1,398,7061,673,1673,071,87312,870
463,719 3,938,9424,402,661
6,230,148(6,230,148)
31,029,010(618,039)30,410,971772,995
12,727,68223,024,366 35,752,048 737,815
134,363,052130,726,269265,089,321
$147,090,734$153,750,635$300,841,369$737,815
Primary Government
Net (Expense) Revenue and
Changes in Net Assets
Fund Financial Statements
CITY OF GEORGETOWN, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
AS OF SEPTEMBER 30, 2006
GEORGETOWN
TRANSPORTATIONGENERALNONMAJORTOTAL
ENHANCEMENTDEBTCAPITALGOVERNMENTALGOVERNMENTAL
GENERAL CORPORATION SERVICE PROJECTS FUNDS FUNDS
ASSETS
Cash and cash equivalents$1,469,606$2,352,772$595,3854,417,763$
Investments7,174,508$9,063,418$871,5597,015,3812,906,86827,031,734
Accounts receivable (net of allowance for uncollectible accounts):
Delinquent taxes168,812101,515270,327
Sales tax1,155,127508,510310,5241,974,161
Grants 21,61421,614
Other 796,2237,865148,168952,256
Inventories1,911 1,911
Long-term note receivable895,686 895,686
TOTAL ASSETS $11,661,873$9,571,928$973,074$9,376,018$3,982,55935,565,452$
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $737,742$216,878$2,171,105$36,3623,162,087$
Due to other funds 101,58515,735117,320
Unearned revenue 1,967,817$94,406275,2642,337,487 Total liabilities $2,705,559$318,463$94,406$2,171,105$327,3615,616,894$
Fund Balance:
Reserved for:
Encumbrances$1,036,847$2,901,905$4,678,907$375,1778,992,836$
Inventories1,911 1,911
Debt service $878,668878,668
Prepaid items
Special programs 2,379,5202,379,520
Unreserved, reported in:
General fund7,917,556 7,917,556
Capital projects funds6,351,5602,526,006900,5019,778,067
Total fund balance$8,956,314$9,253,465$878,668$7,204,913$3,655,19829,948,558$
TOTAL LIABILITIES AND FUND BALANCE $11,661,873$9,571,928$973,074$9,376,018$3,982,55935,565,452$
The notes to the financial statements are an integral part of this statement.
CITY OF GEORGETOWN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2006
Total fund balance - total governmental funds$29,948,558
Amounts reported for governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities are not current financial
resources and therefore are not reported in the govermental funds
balance sheet.164,585,649
The City uses internal service funds to charge the costs of certain
activities, such as capital assets, administrative services and information
technology to appropriate functions in other funds. The assets
and liabilities of the internal service funds are included in governmental
activities in the statement of net assets. The effect of this consolidation
is to increase net assets.7,719,073
Premiums, discounts and debt issuance costs have not been included
in the fund financial statements.1,081,249
Bonds payable and contractual obligations are not due and payable in
the current period therefore have not been included in the fund financial statements.(54,429,567)
Accrued liabilities for compensated absences are not due and payable in
the current period therefore have not been included in the fund financial statements.(1,621,380)
Capital leases are not due and payable in the current period, therefore have not
been included in the fund financial statements.(142,633)
Liabilities for arbitrage are not due and payable in the current period therefore
have not been reflected in the fund financial statements.(14,650)
Revenues from property taxes are deferred in the fund financial
statements until they are considered available to fund current
expenditures, but such revenues are recognized in the government-
wide statements.263,218
Interest is accrued on outstanding debt in the government-wide financial
statements, whereas in the fund financial statements interest
expense is reported when due.(298,783)
Net Assets of Governmental Activities $147,090,734
The notes to financial statements are an integral part of this statement.
CITY OF GEORGETOWN, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
GEORGETOWN
TRANSPORTATIONGENERALNONMAJORTOTAL
ENHANCEMENTDEBTCAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL CORPORATION SERVICE PROJECTS FUNDS FUNDS
REVENUES:
Property taxes:
Current$5,460,756$3,447,998$8,908,754
Delinquent50,65725,41876,075
Penalties and interest63,087 63,087
Other158,205$374,340532,545
Property assessment 173,011173,011
Sales tax6,402,041$3,040,4991,520,25010,962,790
Franchise taxes2,209,235 2,209,235
Licenses and permits1,723,082 1,723,082
Charges for service941,718125,7421,067,460
Fines and forfeitures846,01061,973907,983
Donations and grants14,790154,073168,863
Investment income394,992342,52090,178$463,086107,9301,398,706
Other revenue555,198512,61718,460342,2101,428,485
Total revenues 18,819,7713,895,6363,563,594481,5462,859,52929,620,076
EXPENDITURES:
Current:
Culture - recreation 4,330,337638,5654,968,902
Development2,112,84515,0822,127,927
Fire services 4,078,79692,7314,171,527
General government2,152,667149,7502,302,417
Highways and streets1,758,2893,2051,761,494
Police 6,918,948151,1407,070,088
Capital outlay 4,467,37110,506,240976,53115,950,142
Debt service:
Principal retirement 2,387,0352,387,035
Interest and fiscal charges 35,0002,072,752200,0942,307,846
Total expenditures 21,351,8824,652,1214,459,78710,706,3341,877,25443,047,378
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (2,532,111)(756,485)(896,193)(10,224,788)982,275(13,427,302)
OTHER FINANCING SOURCES (USES):
Transfers in 5,749,5971,173,504975,000682,3258,580,426
Transfers out (1,732,126)(1,088,616)(995,465)(123,812)(3,940,019)
Sale of property 31,10231,102
Payment to refunding escrow agent(7,736,794)(7,736,794)
Certificate of obligation bond issued1,235,0007,830,00011,235,00020,300,000
Total other financing sources (uses) 4,017,471146,3841,266,71011,214,535589,61517,234,715
NET CHANGE IN FUND BALANCES1,485,360(610,101)370,517989,7471,571,8903,807,413
FUND BALANCES, Beginning of period7,470,9549,863,566508,1516,215,1662,083,30826,141,145
FUND BALANCES, End of period $8,956,314$9,253,465$878,668$7,204,913$3,655,198$29,948,558
The notes to financial statements are an integral part of this statement.
CITY OF GEORGETOWN, TEXAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Net change in fund balances - governmental funds $3,807,413
Amounts reported for governmental activities in the statement of
activities are different because:
The City uses internal service funds to charge the costs of certain
activities, such as fleet management and information technology to
appropriate functions in other funds. The assets and liabilities of
internal service funds are allocated to the governmental activities
on the statement of net assets. The effect of this consolidation is to
increase net assets. The entry on the statement of activities reflects
the change for FY 2006, which is allocated to governmental activities 40,284
Current year capital outlays are expenditures in the fund statements,
but are shown as increases in capital assets in the government-wide
financial statements. The total reflects $13,149,867 in construction in
progress additions. The effect of removing the 2006
capital outlays is to increase net assets.20,467,360
Depreciation is not recognized as an expenditure in governmental funds
since it does not require the use of current financial resources. The
effect of recording current year depreciation is to decrease net assets.(1,385,854)
Amortization of costs associated with debt issuances are not recognized
as an expenditure in governmental funds since it does not require the use
of current financial resources. The effect of recording the current
year's amortization is to decrease net assets.(84,714)
Current year long-term debt principal payments on contractual obligation
bonds payable and capital lease payments are expenditures in the fund
financial statements,but are shown as reductions in long term debt in
the government-widefinancial statements.10,293,118
The notes to financial statements are an integral part of this statement.(continued)
Current year bond proceeds on certificates of obligation ($20,300,000)
and related debt issuance costs ($262,000) are not shown as revenue
and expenditures in the government-wide financial statements.$(20,038,000)
Interest is accrued on outstanding debt in the government-wide financia
statements, whereas in the fund financial statements, the expenditure
is reported when due.(49,137)
Additions to vested sick leave and vacation liabilities are not shown
in the fund financial statements. The net effect of the current year's
increase is to decrease net assets.(220,500)
Revenue from property taxes are recognized in the fund financial statements
on the modified accrual basis but are recognized on the accrual basis in
the government-wide financial statements.(102,288)
Change in Net Assets of Governmental Activities $12,727,682
CITY OF GEORGETOWN, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 2006
2006 ACTUAL
BUDGETARYVARIANCE TO
ORIGINALFINALBASISFINAL BUDGET
REVENUES:
Property taxes :
Current$5,542,765 $5,542,765$5,460,756$(82,009)
Delinquent32,000 32,00050,65718,657
Penalties and interest30,000 30,00063,08733,087
Sales tax6,125,000 6,168,0006,402,041234,041
Franchise taxes2,003,000 2,003,0002,209,235206,235
Licenses and permits 1,114,000 1,114,0001,767,533653,533
Charges for services 794,830 794,830897,269102,439
Fines and forfeitures 725,250 765,250846,01080,760
Other taxes170,600 170,600158,205(12,395)
Investment income172,000 172,000387,605215,605
Miscellaneous410,300 491,893650,608158,715
Total revenues 17,119,745 17,284,33818,893,0061,608,668
EXPENDITURES:
Current:
Culture - recreation4,380,446 4,460,1564,351,122109,034
Development2,369,811 2,393,5822,312,68680,896
Fire services4,279,094 4,297,5824,102,765194,817
General government 2,553,668 2,518,5782,266,252252,326
Highways and streets2,088,059 1,608,7621,496,631112,131
Police services7,043,716 7,152,1446,949,278202,866
Total expenditures 22,714,794 22,430,80421,478,734952,070
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(5,595,049) (5,146,466)(2,585,728)2,560,738
OTHER FINANCING SOURCES (USES):
Transfers in 5,104,870 5,106,7875,749,597642,810
Transfers out (169,708) (1,744,708)(1,732,126)12,582
Total other financing sources (uses) 4,935,162 3,362,0794,017,471655,392
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING (USES)(659,887) (1,784,387)1,431,7433,216,130
FUND BALANCES, Beginning of period5,360,276 6,484,7766,487,0992,323
FUND BALANCES, End of period $4,700,389$4,700,3897,918,842$3,218,453
Adjustments to GAAP:
Reverse current year encumbrances1,036,847
Record net unrealized gain on investments625
FUND BALANCE - GAAP BASIS, End of period $8,956,314
The notes to the financial statements are an integral part of this statement.
BUDGETED AMOUNTS
CITY OF GEORGETOWN, TEXAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
AS OF SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
WATER OTHER
ELECTRICSERVICESENTERPRISEGOVERNMENTAL ACTIVITIES
FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS
ASSETS:
Current Assets:
Cash and cash equivalents$3,561,023$231,844$3,792,867$219,648
Cash and cash equivalents - restricted$142,735104,578443,376690,689
Investments5,592,70912,336,0961,132,05519,060,8601,072,404
Investments - restricted696,878510,5851,207,463
Prepaid expenses1,548,0851,548,0853,306
Accounts receivable:
Services (net of allowance for uncollectibles)6,916,5943,209,702817,22610,943,522133,017
Other1,812,37963,0831,875,462
Due from other funds895,647895,647
Inventories3,483,88924,3273,508,216255,592
Total current assets 18,645,18422,165,7162,711,91143,522,811 1,683,967
Noncurrent Assets:
Long-term note receivables2,928,1772,928,177
Deferred charges - bond issuance costs487,243897,498147,4841,532,225
Capital assets:
Land and land rights193,735469,354981,5001,644,589214,065
Distribution system54,766,867125,998,52214,622,484195,387,873
Buildings and improvements73,7073,019,7947,597,18710,690,6881,279,886
Machinery, furniture and equipment536,096236,382193,627966,10515,416,177
Construction in progress3,530,6655,939,470714,20210,184,337
Less accumulated depreciation (18,597,632)(26,586,449)(6,119,955)(51,304,036)(10,101,512)
Total capital assets (net of
accumulated depreciation)40,503,438109,077,07317,989,045167,569,5566,808,616
Total noncurrent assets 40,990,681112,902,74818,136,529172,029,9586,808,616
TOTAL ASSETS $59,635,865$135,068,464$20,848,440$215,552,769$8,492,583
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$5,424,270$631,453$450,763 $6,506,486$627,398
Compensated absence95,30169,62626,246191,17348,407
Due to other funds355,980422,347778,327
Current portion of long-term debt948,8012,176,198254,4093,379,408
Accrued interest 116,650158,99226,210301,852
Total current liabilities payable
from unrestricted assets 6,941,0023,036,2691,179,97511,157,246675,805
Current liabilities payable from restricted assets:
Construction contracts and retainages payable306,684306,684
Customer deposits839,611839,611
Total current liabilities payable
from restricted assets 839,611306,6841,146,295
Total current liabilities 7,780,6133,342,9531,179,97512,303,541675,805
Noncurrent liabilities:
Compensated absence173,255131,10550,919355,27997,705
Unearned revenue2,372,2882,372,288
Long-term debt16,859,99125,900,0104,011,02546,771,026
Total noncurrent liabilities 17,033,24628,403,4034,061,94449,498,59397,705
Total liabilities 24,813,85931,746,3565,241,91961,802,134773,510
Net Assets:
Invested in capital assets (net of related debt)22,694,64681,000,86513,723,611117,419,1226,356,506
Restricted for:
Future construction5,389,0635,389,063
Unrestricted12,127,36016,932,1801,882,91030,942,4501,362,567
Total net assets 34,822,006103,322,10815,606,521153,750,6357,719,073
TOTAL LIABILITIES AND NET ASSETS $59,635,865$135,068,464$20,848,440$215,552,769$8,492,583
The notes to the financial statements are an integral part of this statement.
CITY OF GEORGETOWN, TEXAS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
WATEROTHERGOVERNMENTAL
ELECTRICSERVICESENTERPRISEACTIVITIES
FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS
OPERATING REVENUES:
Charges for sales and services:
Service charges $8,996,411
Electric$41,338,196$41,338,196
Water$12,848,07812,848,078
Waste 6,861,481$3,397,25510,258,736
Other1,188,532609,0444,361,1416,158,717
Total operating revenues42,526,72820,318,6037,758,39670,603,7278,996,411
OPERATING EXPENSES:
Electric3,360,4673,360,467
Water 1,993,0491,993,049
Waste 1,199,790 1,199,790
Depreciation2,173,8412,998,223773,9175,945,9811,246,934
Utility contracts31,816,7444,831,0453,519,48740,167,276
Plant management3,154,931 3,154,931
Other 3,137,9213,137,9219,383,643
Total operating expenses37,351,05214,177,0387,431,32558,959,41510,630,577
NET OPERATING INCOME (LOSS)5,175,6766,141,565327,07111,644,312(1,634,166)
NONOPERATING REVENUES (EXPENSES):
Investment earnings260,0001,340,11373,0541,673,167112,530
Donations and grants 389,988389,988
Interest and fiscal charges(515,801)(1,491,023)(212,377)(2,219,201)
Gain (loss) on disposed assets (449,932)
Other2,322,4731,555,93860,5313,938,942275,671
Total nonoperating revenues (expenses)2,066,6721,405,028311,1963,782,896(61,731)
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS7,242,3487,546,593638,26715,427,208(1,695,897)
CONTRIBUTIONS AND TRANSFERS:
Capital contributions1,030,1078,288,4814,508,71813,827,306146,440
Transfers in10,37656210,9381,702,682
Transfers out(3,925,318)(1,903,192)(412,576)(6,241,086)(112,941)
Total contributions and transfers(2,895,211)6,395,6654,096,7047,597,1581,736,181
CHANGE IN NET ASSETS4,347,13713,942,2584,734,97123,024,36640,284
TOTAL NET ASSETS - beginning30,474,86989,379,85010,871,550130,726,2697,678,789
TOTAL NET ASSETS - ending $34,822,006$103,322,108$15,606,521$153,750,635$7,719,073
The notes to the financial statements are an integral part of this statement.
CITY OF GEORGETOWN, TEXAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
WATEROTHERGOVERNMENTAL
ELECTRICSERVICESENTERPRISEACTIVITIES
FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers$42,144,435$24,553,462$7,798,028$74,495,925$8,959,044
Payments to suppliers(33,624,956)(10,048,173)(6,096,595)(49,769,724)(4,363,068)
Franchise fees(760,696)(356,538)(93,694)(1,210,928)
Payments to employees for services(1,628,282)(1,212,931)(464,818)(3,306,031)(4,580,385)
Net cash provided by operating activities6,130,50112,935,8201,142,92120,209,24215,591
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 10,37656210,9381,702,682
Transfers out(3,925,318)(1,903,192)(412,576)(6,241,086)(112,941)
Payments from (to) other funds355,980(480,289)367,986243,677
Net cash provided by (used for) noncapital
financing activities(3,569,338)(2,373,105)(44,028)(5,986,471)1,589,741
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITES:
Acquisition of capital assets(8,496,614)(7,834,967)(705,481)(17,037,062)(1,608,564)
Donations and grants 389,988389,988
Impact fees 1,466,0501,466,050
Proceeds from issuance of long-term debt8,665,0008,665,000
Principal paid on revenue and certificates of obligation bonds(798,582)(2,250,431)(243,952)(3,292,965)
Interest paid on revenue and certificates of obligation bonds(587,414)(1,348,288)(201,969)(2,137,671)
Net cash used for capital and related financing
activities(1,217,610)(9,967,636)(761,414)(11,946,660)(1,608,564)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received260,0001,340,11473,0541,673,168112,530
Change in temporary investments(2,572,545)(4,842,490)(383,514)(7,798,549)(161,683)
Net cash provided by (used for) investing activities(2,312,545)(3,502,376)(310,460)(6,125,381)(49,153)
Net increase (decrease) in cash and cash equivalents(968,992)(2,907,297)27,019(3,849,270)(52,385)
Cash and cash equivalents at beginning of year1,111,7276,572,898648,2018,332,826272,034
Cash and cash equivalents at end of year142,7353,665,601675,2204,483,556219,649
Classified as:
Current assets3,561,023231,8443,792,867219,648
Restricted assets142,735104,578443,376690,689
Total $142,735 $3,665,601 $675,220 $4,483,556 $219,648
Non-cash disclosure
Developer contributions$1,030,107$8,288,481$4,508,718$13,827,306
Equity transfers to internal service funds $146,440
The notes to the financial statements are an integral part of this statement.(continued)
CITY OF GEORGETOWN, TEXAS
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
WATEROTHERGOVERNMENTAL
ELECTRICSERVICESENTERPRISEACTIVITIES
FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS
OPERATING INCOME (LOSS)$5,175,676$6,141,565$327,071$11,644,312$(1,634,166)
Adjustments to reconcile operating income (loss) to
cash provided by operating activities:
Depreciation2,173,8412,998,223773,9175,945,9811,246,934
Other income2,322,47389,89060,5312,472,894275,671
Bad debt expense44,81020,4501,13966,399
Increase (decrease) in unearned revenue(303,254)(303,254)11,594
Decrease (increase) in prepaid expenses(196,009)(196,009)
Decrease (increase) in inventories(2,172,241)19,063(2,153,178)(477)
Decrease (increase) in accounts receivable(2,848,008)(370,699)(22,038)(3,240,745)(37,367)
Decrease (increase) in customer deposits98,43298,432
Decrease (increase) in notes receivable4,798,4724,798,472
Increase (decrease) in accounts payable1,324,000(250,398)(12,965)1,060,637129,209
Increase (decrease) in compensated absences payable11,5187,580(3,797)15,30124,193
Net cash provided by operating activities$6,130,501$12,935,820$1,142,921$20,209,242$15,591
CITY OF GEORGETOWN, TEXAS
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
AS OF SEPTEMBER 30, 2006
ASSETS:
Cash and cash equivalents$55,615
Accounts receivable1,159,673
TOTAL ASSETS $1,215,288
LIABILITIES:
Accounts payable$64,650
Due to other governments1,150,638
TOTAL LIABILITIES $1,215,288
The notes to the financial statements are an integral part of this statement.
Notes to the Financial Statements
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
36
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of the City of Georgetown, Texas, (“City”), included in the
accompanying basic financial statements conform to the generally accepted accounting principles
(GAAP) applicable to state and local governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles. The following notes to the financial statements are an integral part of
the City's Comprehensive Annual Financial Report.
A. Financial Reporting Entity
The City of Georgetown was incorporated under the laws of the State of Texas in 1848 and
operates under a Council-Manager form of government. The City’s financial statements include
the accounts of all City operations. Generally accepted accounting principles require all funds
that are controlled by or are dependent on the City Council to be included in the City’s financial
statements. The reporting entity is the primary government, or the City, and those component
units for which the primary government is financially accountable. Financial accountability is
defined as the appointment of a voting majority of the potential component unit‘s board and
either the ability to impose its will by the primary government or the possibility that the
component unit will provide a financial benefit or impose a financial burden on the primary
government. Blended component units, although legally separate entities are, in substance,
part of the government’s operations and so data from these units are combined with the data of
the primary government. Based upon these considerations, the City’s financial statements
include the Georgetown Transportation Enhancement Corporation as a blended component
unit. Discretely presented component units, on the other hand, are reported in a separate
column in the government-wide financial statements to emphasize they are legally separate
from the primary government, and whose exclusion would cause the reporting entity’s financial
statements to be misleading or incomplete. Based upon these considerations, the City’s
financial statements include the Georgetown Economic Development Corporation as a
discretely presented component unit.
BLENDED COMPONENT UNIT
The Georgetown Transportation Enhancement Corporation (GTEC), the City’s 4B economic
development corporation, is a legally separate entity from the City that was created in May 2001
by voters approving an additional sales tax. GTEC is governed by a seven member board
appointed by City Council, of which, four are Council members. The City Council maintains
budgetary control over the corporation. The City Manager serves as the General Manager of the
corporation and City’s Director of Finance and Administration acts as the Financial Manager.
For financial reporting purposes, GTEC is presented as a blended component unit within City
operations because its sole purpose is to utilize sales tax revenues for the improvement of the
City’s transportation system. The revenues and expenditures for GTEC are accounted for in a
general capital projects fund. The City issues debt on behalf of GTEC in exchange for pledged
sales tax revenue that is transferred to the City to reimburse for debt service related to the
bonds. GTEC’s debt is shown in the Governmental Activities in the Statement of Net Assets.
DISCRETELY PRESENTED COMPONENT UNIT
The Georgetown Economic Development Corporation (GEDCO) has been included in the
reporting entity as a discretely presented component unit. GEDCO can not be considered a
blended component unit because the revenues are not only for the benefit of the City. GEDCO
was created by the City in May 2005, although no activity took place until fiscal year 2006,
under the Texas Development Act of 1979 for the purpose of promoting, assisting, and
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
37
enhancing economic and development activities on behalf of the City. It is funded through voter
authorized sales tax. The five member Board, which includes three City Council members, is
appointed by and serves at the discretion of the City Council. City Council approval is required
for annual budgets and bonded debt issuance. In the event of dissolution, net assets of
GEDCO shall be converted to the City. The City accounts for GEDCO as a discretely presented
component unit on the government-wide financial statements.
Separate audited financial statements are not issued for GEDCO. Unaudited financial
statements may be obtained from the City’s finance office.
RELATED ORGANIZATIONS
The Mayor and City Council are responsible for appointing a voting majority of the members of
some local boards and commissions, but the City's accountability for these organizations does
not extend beyond making the appointments. These entities are the Georgetown Industrial
Development Corporation, Georgetown Hospital Authority, and Georgetown Higher Education
Finance Corporation.
B. Basis of Presentation
BASIC FINANCIAL STATEMENTS
The basic financial statements include both government-wide financial statements (based on
the City as a whole) and fund financial statements. Both sets of financial statements classify
activities as either governmental, which are supported by taxes and intergovernmental
revenues, or business-type activities, which rely on fees and charges for support.
Government-wide financial statements. The government-wide Statement of Activities
demonstrates the degree to which the direct expenses of a given program or function is offset
by the program’s revenues. Direct expenses are those that are clearly identifiable with a
specific program. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services or privileges provided by a given
program and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program. Taxes and other items not properly included among
program revenues are reported instead as general revenues. The effect of interfund activity
within the governmental and business-type activities columns has been removed from these
statements.
Fund financial statements. The City segregates transactions related to certain functions or
activities in separate funds in order to aid financial management and to demonstrate legal
compliance. Each fund is considered a separate accounting entity and the operations of each
fund are accounted for using a separate set of self-balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental
resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled. Separate
statements are presented for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. These
statements present each major fund as a separate column on the fund financial statements; all
non-major funds are aggregated and presented in a single column.
The government wide focus is on the sustainability of the City as an entity and the change in net
financial position resulting from the activities of the fiscal period. The focus of the fund financial
statements is on the major individual funds of the governmental and business-type categories.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
38
Each presentation provides a different focus, which allows the reader to compare and analyze
the information to enhance the usefulness of the statements.
GOVERNMENTAL FUND TYPES
Governmental Funds are those funds through which most governmental functions typically are
financed. The measurement focus of governmental funds (in the fund financial statements) is
on the sources, uses and balance of current financial resources and include the General Fund,
Special Revenue Funds, Debt Service Fund and Capital Projects Fund. The individual funds
are described as follows:
Major Governmental Funds
General Fund - The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another
fund.
Georgetown Transportation Enhancement Corporation (GTEC) – This capital projects fund
is used to account for the City’s 4B Corporation, created to administer the voter approved
½ cent sales tax for transportation improvements that aid in economic development efforts.
Debt Service Fund - The Debt Service Fund is used to account for the accumulation of
resources for, and the payment of, general long-term debt principal, interest, and related
costs.
General Capital Projects Fund – This capital projects fund is used to account for financial
resources to be used for the acquisition or construction of parks, buildings, and other
facilities. Such resources are derived from proceeds of general obligation bonds or other
sources of revenue specifically set aside for capital projects.
Non-major Governmental Funds
Special Revenue Funds - The Special Revenue Funds are used to account for the
proceeds of specific revenue sources (other than expendable trusts or major capital
projects) that are restricted to expenditures for specified purposes.
Streets Capital Projects Fund – This capital projects fund is used to account for financial
resources used to construct major streets utility infrastructure.
PROPRIETARY FUND TYPES
The Proprietary Fund Types are used to account for the City's organization and activities which
are similar to those often found in the private sector. These funds are financed and operated in
a manner similar to private business enterprises – where the intent of the City is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered mainly through user charges; or where the governing
body has decided that periodic determination of revenues earned, expenses incurred and/or net
income is appropriate for capital maintenance, public policy, management control, accountability
or other purposes.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
39
Major Proprietary Funds
Electric Fund – This fund accounts for the City’s electric utility, including operations,
maintenance of the infrastructure and expansion of the system within the City’s service
territory.
Water Services Fund – This fund accounts for the City’s water, sewer and water reuse
systems, including operations, contracted maintenance, internal maintenance, expansion
of the system within the City’s service territory and the costs of environmental mandates
that arise.
Non-major Proprietary Funds
Enterprise Funds - The funds that are operated as enterprise funds within the City but are
not considered major funds are the Sanitation, Stormwater Drainage and Airport Funds.
Internal Service Funds - The Internal Service Funds, which provide services primarily to
other funds of the government, are presented in the summary form as part of the
proprietary fund financial statements. The financial statements of the internal service funds
are allocated in the governmental column when presented at the government-wide level.
Various operations are accounted for as internal service funds, such as operational costs
associated with automobile and heavy equipment owned by the City and made available to
various departments, costs related to maintaining and repairing City owned facilities,
operational costs associated with the City's computer equipment within various
departments, as well as jointly shared administrative departments.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with the proprietary funds principal on-going operations.
Operating expenses for the proprietary funds include the cost of personnel and contractual
services, supplies and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
FIDUCIARY FUND TYPE – AGENCY FUNDS
The City’s fiduciary fund is presented in the fund financial statements by type. Since by
definition, these assets are being held for the benefit of a third party (cafeteria plan participants,
local grantees, public improvement district, etc.) and cannot be used to address activities or
obligations of the government, these funds are not incorporated in the government-wide
statements.
C. Measurement Focus/Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. Measurement focus refers to what is being measured and basis of
accounting refers to timing of revenue and expenditure recognition in the financial statements.
The government-wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The agency fund also uses the accrual basis of accounting. The economic
resources measurement focus means all assets and liabilities (whether current or non-current)
are included on the statement of net assets and the operating statements present increases
(revenues) and decreases (expenses) in net total assets. Under the accrual basis of
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
40
accounting, revenues are recognized when earned, including unbilled utility services which are
accrued. Expenses are recognized at the time the liability is incurred.
Private-sector standards of accounting and financial reporting issued prior to November 30,
1989 generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The City has elected not to follow private-sector guidance issued
subsequent to November 30, 1989.
Governmental fund financial statements are reported using the current financial resources
measurement focus and are accounted for using the modified accrual basis of accounting. With
this measurement focus, only current assets and current liabilities generally are included on the
balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current
assets.
Under the modified accrual basis of accounting, revenues are recorded when susceptible to
accrual, i.e., both measurable and available. Available means collectible within the current
period or soon enough thereafter to be used to pay liabilities of the current period. The City
considers all revenues available if they are collected within sixty (60) days after year-end.
Expenditures are recognized when the related fund liability is incurred, if measurable, except for
principal and interest on general long-term debt, which are recorded when due, and
compensated absences, which are recorded when payable from current available financial
resources.
Ad valorem, sales, hotel, and franchise tax revenues recorded in the Governmental Fund Types
are recognized under the susceptible to accrual concept. Licenses and permits, charges for
services, fines and forfeitures, and miscellaneous revenues (except earnings on investments)
are recorded as revenues when received in cash because they are generally not measurable
until actually received. Investment earnings are recorded as earned since they are measurable
and available.
D. Budgets
At least 30 days prior to the end of each fiscal year, the City Manager submits a proposed
budget presenting a complete financial plan for the ensuing fiscal year to the City Council (the
Council). Public hearings are conducted, at which time all interested persons' comments
concerning the budget are heard. The budget must be legally adopted by the Council through
passage of an ordinance no later than the twenty-seventh day of the last month of the fiscal
year.
Formal budgetary integration is employed as a management control device during the year for
all Governmental and Proprietary Fund Types. Budgets for all funds were legally adopted for
the period. Budgetary control is exercised at the division level. All budgets are prepared on the
budgetary basis, recognizing encumbrances outstanding at year-end as expenditures against
that year’s appropriation. These encumbrances are reconciled to generally accepted
accounting principles where appropriate.
The Council may transfer any unencumbered appropriation balance or portion thereof from one
division, office, department or agency to another at any time. The City Manager has authority,
without Council approval, to transfer appropriation balances from one expenditure account to
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
41
another within a single division, office, department, or agency of the City; however, unbudgeted
transfers between funds are prohibited.
The Council may authorize by a majority plus one vote, an emergency expenditure as an
amendment to the original budget, but only in a case of grave public necessity, to meet an
unusual and unforeseen condition that could not have been included in the original budget
through the use of reasonable, diligent thought and attention.
Budget amounts are as originally adopted, or as transferred pursuant to authorization of the City
Manager or amended by the City Council. Individual amendments were not material in relation
to the original appropriations, with the exception of amendments related to capital projects,
LCRA and Avgas fuel purchases and refunding bonds issued, whose actual costs were
unknown when the budget was adopted. Unencumbered appropriations lapse each year at
September 30.
The Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and
Actual-General Fund presents a comparison of budgetary data to actual results. The General
Fund utilizes the same basis of accounting for both budgetary purposes and actual results,
except for the effect of encumbrances and unrealized investment gains and losses, which are
reconciled to the actual results for this comparison.
E. Encumbrances
Encumbrance accounting is employed as an extension of formal budgetary control in all funds.
Encumbrance accounting is a process whereby purchase orders, contracts and other
commitments for the expending of monies are recorded in order to reserve that portion of the
applicable appropriation. Outstanding year-end encumbrances are reported as reservations of
fund balances and do not constitute expenditures or liabilities because the commitments are
carried forward into the subsequent fiscal year.
F. Cash and Investments
For cash flow purposes, cash and cash equivalents consist of demand deposits, certificates of
deposits and deposits in authorized investment pools.
The operating cash balances from all funds are consolidated in pooled cash and investment
accounts. Excess pooled balances are invested in U.S. Treasury securities, U.S. Government
agency securities, fully collateralized money market funds and local government investment
pools. Maturities on all investments are consistent with the City’s cash flow requirements.
Investments are stated at fair value, or market price as of September 30, 2006. Interest
earnings are then allocated to each fund based on average monthly pooled equity balances.
Separate cash and investment accounts are maintained for restricted cash such as debt service
and bond proceeds reserved for future construction.
G. Restricted Assets
Historically, the utility funds, based on certain bond covenants, were required to establish and
maintain prescribed amounts of resources that could be used only to service outstanding debt.
In July 1998 all outstanding revenue bonds were defeased and debt covenants modernized,
eliminating required debt reserves in utility funds. Included in the restricted assets are capital
recovery fees (impact fees), that are, by law, restricted for future capital improvements. In
addition, the funds also maintain restricted assets for construction of future debt funded capital
improvements. Restricted assets consist of cash and investments, including customer deposits.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
42
When both restricted and unrestricted resources are available for use, it is the City’s policy to
use restricted resources first, then unrestricted resources as they are needed.
H. Long-term Receivables
As part of the Del Webb Development Agreement that provided infrastructure improvements for
Sun City Texas, the City funded water, wastewater and other improvements for a 10,500 unit
development. In April 2003, the City and Del Webb agreed to the Seventh Amendment to the
Development Agreement, whereby the number of units in Sun City was reduced to 5,000 and
costs already spent associated with the additional units were identified as "stranded". As part of
the Seventh Amendment, Del Webb will repay the stranded costs over seven years at 5.25%
interest, as well as a minimum 300 units, annually for seven years, of previously agreed upon
service improvement fees for improvements in Sun City. The outstanding balance as of
September 30, 2006 was $2,903,537 in the Water Services Fund and $895,686 in the General
Fund. This agreement is discussed in detail in the Commitments and Contingency section of
these notes. Total long-term receivables in the Water Services Fund are $2,928,177, which
also includes long term tap repayment plans from customers.
I. Inventories
Inventories consist of motor fuel, office and other supplies valued at the weighted average cost
method and are recognized as expenditures or expenses when used.
J. Interfund Receivables and Payables
Short-term advances between funds are accounted for in the appropriate interfund receivable
and payable accounts. Negative balances incurred in pooled cash at year-end are treated as
interfund receivables of the Water Fund and interfund payables of the deficit fund.
K. Interfund Transactions
All legally authorized transfers have been appropriately presented as interfund transfers and are
included in the fund financial statements of both Governmental and Proprietary Fund Types. As
a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.
L. Intergovernmental Revenues
Intergovernmental revenues represent entitlements and shared revenues which are accounted
for within the fund financed. Such revenues, received for purposes normally financed through
the general government, are accounted for within the Special Revenue Funds.
M. Compensated Absences
All employees may accumulate a maximum of two times their annual vacation, up to an
absolute cap of 240 hours, or 30 days. Upon termination, non-Civil Service employees are paid
for one-half of their accumulated sick leave up to a maximum of 120 days, as well as any
unused accumulated vacation hours. Upon termination, Civil Service employees are paid for
the entire balance of their sick leave earned after October 30, 2003 or October 30, 2006 (the
effective date of the regulations in the City for fire civil service and police civil service
employees, respectively), up to a maximum of 90 days. Civil Service employees hired prior to
the effective date of the adoption of Civil Service regulations are eligible under city policy to
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
43
receive one-half of their sick leave up to 120 days. Sick leave in excess of the maximums for
both regular and Civil Service employees is not paid upon termination, but will be paid only
upon illness while in the employ of the city.
Accumulated vacation and sick leave, which is expected to be liquidated with expendable
available financial resources, is reported as an expenditure and a fund liability of the
governmental fund that will pay it. Amounts of accumulated vacation leave within governmental
funds that are not expected to be liquidated with expendable available financial resources are
reported as a long-term liability on the statement of net assets. No expenditure is reported for
these amounts in the fund financial statements. Accumulated vacation and sick leave of
proprietary fund types are recorded as an expense and liability of those funds as the benefits
accrue to employees.
N. Capital Assets
Capital Assets other than Streets & Drainage:
Capital assets, which include property, plant, equipment and infrastructure assets, are reported
in the applicable governmental or business-type activities column in the government-wide
financial statements and in the fund financial statements for proprietary funds. All capital assets
are valued at their historical cost or estimated historical cost if actual historical cost is not
available. Donated assets are valued at their fair market value on the date donated. Repairs
and maintenance are recorded as expenses. Renewals and betterments are capitalized.
Assets capitalized, not including infrastructure assets, have an original cost of $5,000 or more
and an expected useful life of over one year.
Interest incurred during the construction phase of capital assets of business-type activities is
capitalized. Interest of $19,040 was capitalized in enterprise funds during the 2006 fiscal year.
Depreciation for assets not following the modified approach is computed using the straight-line
method on the composite assets based upon the estimated useful lives as follows:
Distribution systems 25-50 years
Buildings and improvements 10-20 years
Furniture, fixtures and equipment 3-10 years
The City records capital contributions to proprietary funds as revenue. Total capital
contributions to the enterprise funds in fiscal year 2006 were $13,827,306 and $146,440 in the
internal service funds.
Capital Assets - Streets & Drainage:
Governmental Accounting Standards Board Statement # 34 provides for an alternative
approach to depreciation for measuring the value of infrastructure assets and the related costs
incurred to maintain their service life at a locally established minimum standard. In order to
adopt this alternative method, the City must use an asset management system, and must
determine if the minimum standards are being maintained. This measurement occurs every
three years at a minimum. The City has elected to use this alternative method for reporting its
street infrastructure assets. The City contracted with the engineering firm of Kasberg, Patrick
and Associates to complete pavement condition surveys for the City’s street network during
2006. This fiscal year is the second year to utilize the asset management system.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
44
The City uses the CarteGraph PavementView Pavement Management Information System to
track the condition levels of each of the street sections. The entire streets inventory is captured
in the system and the condition of the pavement is based on the following factors:
• Type of Distress
• Amount of Distress
• Severity of Distress
• Deduct Values (function of the first three)
The Pavement Condition Index (PCI) is a measurement scale based upon a condition index
ranging from zero for a failed pavement to 100 for pavement with perfect condition. The
condition index is used to classify pavement in the following conditions:
The PCI for 2006 was 91. The City’s administrative policy is to maintain an average PCI level
of 85. An 85 PCI is considered maintaining the streets in a “good” condition. Staff prepares a
street maintenance budget that meets this target for Council’s consideration during the budget
process.
O. Long-term Obligations
The portion of long-term general obligation debt used to finance proprietary fund operations and
payable from the revenues of the Enterprise Funds is recorded in such funds. General
obligation bonds and other forms of long-term debt supported by general revenues are
obligations of the City as a whole and not its individual funds. Accordingly, such unmatured
obligations of the City are accounted for on the statement of net assets and payments of
principal and interest relating to the general obligation bonds are recorded as expenditures
when they are paid in the fund statements. Self-supporting general obligation debt, which will
be repaid from non-general revenue sources, is recorded in the appropriate proprietary fund.
P. Bond Issuance Costs
For Governmental fund types, bond premiums and discounts, as well as issuance costs, are
recognized during the current period on the fund financial statements. Bond proceeds are
reported as other financing source net of the applicable premium or discount. Issuance costs,
even if withheld from the actual net proceeds received, are reported as debt service
expenditures. For Proprietary Fund types and on the government-wide statements, premiums
and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds
using the straight line method which does not differ significantly from the effective interest
method. Bonds payable are reported net of the applicable bond premium or discount. Issuance
costs are reported as deferred charges and amortized over the term of the related debt.
Q. Comparative Data/Reclassification
Comparative total data for the prior year have been presented in selected sections of the
accompanying financial statements in order to provide an understanding of the changes in the
City’s financial position and operations. Also, certain amounts presented in the prior year data
have been reclassified in order to be consistent with the current year’s presentation.
PCIRating
100 - 85Good
84 - 45Fair
44 - 0Poor
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
45
R. Post Employment Benefits (other than pension benefits)
Except for health insurance provided pursuant to the Consolidated Omnibus Budget
Reconciliation Act (COBRA), the City provides no post employment benefits and thus has no
related obligation.
S. Risk Financing Activity
The City of Georgetown is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omission; injuries to employees; and natural disasters.
During fiscal year 2006, the City purchased general liability and property insurance from Texas
Municipal League Intergovernmental Risk Pool (TML-IRP). The City pays an annual premium
to TML-IRP for such coverage. TML-IRP purchases reinsurance, and the City does not retain
risks of loss exceeding deductibles. Settled claims have not exceeded insurance coverage in
the past three years.
The workers compensation plan is administered and paid through the Texas Municipal League-
Intergovernmental Risk Pool (TML-IRP). Under this plan, the City does not retain risks of loss
exceeding the deductibles. TML-IRP also brokers the City’s Aviation and Underground Storage
Tank Pollution liability insurance, as well as, the canine and surgical vet coverage. The City
does not retain the risks of loss exceeding the deductibles.
T. Credit Risk
Financial investments which potentially subject the City to concentrations of credit risk consist
principally of cash, investments and accounts receivable. At September 30, 2006, there was
not a significant risk arising from cash, investments or accounts receivable.
U. Nature and Purpose of Reservations and Designation of Fund Equity
In fund financial statements, governmental funds report reservations for amounts that are not
available for appropriation or are legally restricted by outside parties for a specific purpose.
Fund balances and net assets are restricted and/or reserved for the following purposes:
Restrictions:
• Debt Service - tax funds levied and reserved for retirement of general long-term debt.
• Capital Projects - funds identified for capital outlay including infrastructure and other
capital projects; these funds were collected either through impact fees or bonds proceeds,
both legally restricted for capital needs. Impact fees are legally restricted by Texas
legislation enabling their use. Bond proceeds are considered restricted because of
ordinances authorizing their issuance and documents filed with the State Attorney General
specifying the usage of the related proceeds.
Reservations:
• Encumbrances - funds reserved for payment of outstanding commitments related to
unperformed contracts for goods or services, i.e. open purchase orders.
• Inventories - assets such as supplies and fuel that are unavailable for spending.
• Special Programs - funds relating to grants, hotel/motel tax, and other restricted sources.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
46
2. CASH AND INVESTMENTS
For Cash flow purposes, cash and temporary investments consist of demand deposits, certificates of
deposits, and in authorized investment pools. The operating cash balance from all funds is
consolidated in pooled cash and investment accounts. Excess pooled balances are invested in U.S.
Treasury securities, U.S. Government agency securities, fully collateralized money market funds and
local government investment pools. Maturities on all investments are consistent with the City’s cash
flow requirements. Investments are recorded at cost. Interest earnings are allocated to each fund
based on average monthly pooled equity balances. Separate cash and investment accounts are
maintained for restricted cash such as debt service, utility debt reserves, and bond proceeds
reserved for future construction.
The investment policies of the City are governed by State statues and a City Council adopted
Investment Policy. Major provisions of the City’s investment policy include: responsibility for
investments, authorized investments, security dealer selection and qualifying procedures,
safekeeping and custodial procedures, statement of investment objectives, and investment reporting
requirements.
DEPOSITS
Texas Statutes require that all bank deposits be insured or fully collateralized by the U.S.
government obligations or obligations of the State of Texas and its agencies. Market value of the
collateral pledged must equal at least 100% of the bank deposits not covered by federal deposit
insurance.
At year-end, the carrying amount of the City’s bank deposits was a negative $890,193 and the bank
balances were $263,763 all of which were entirely covered by Federal depository insurance or by
collateral held by the City’s agent bank in the City’s name. The negative carrying amount of cash
and positive bank balance reflected above are the result of disbursement float (checks which have
been issued but not yet presented to the bank for payment). The City’s discretely presented
component unit had a carrying amount of $45,985 at year end.
In order to maximize interest earnings, the City utilizes a controlled disbursement account, which
allows the City to deposit only as much money as needed to fund checks presented each day.
INVESTMENTS
The City is authorized to invest in certificates of deposit, direct obligations of the US government, US
government agency securities, fully collateralized direct repurchase agreements, no-load money
market funds whose portfolio meet the City’s investment requirements, and in qualified local
government investment pools as approved by the City Council.
Interest Rate Risk - In compliance with the City’s Investment Policy, as of September 30, 2006, the
City minimized the interest rate risk, related to the decline in market value of securities due to rising
interest rates in the portfolio by; limiting the weighted average maturity of security types to no longer
than 2 years; structuring the investment portfolio so that securities matured to meet cash
requirements for ongoing operations and capital improvement projects; monitoring credit ratings of
portfolio positions to assure compliance with rating requirements imposed by the Public Funds
Investment Act; and investing operating funds primarily in shorter-term securities and similar
government investment pools.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
47
The City’s investments carried at fair value as of September 30, 2006, are:
Credit Risk – In compliance with the City’s Investment Policy, as of September 30, 2006, the City
minimized credit risk losses due to default of security issuer or backer by; limiting investments to the
safest types of securities. All City’s purchased investments in U.S. Agencies were rated AAA, AAA,
and Aaa by Standard & Poors, Fitch and Moody’s respectively; pre-qualifying the financial
institutions, broker/dealers, intermediaries, and advisors with which the City will do business; and
diversifying the investment portfolio so that potential losses on individual securities were minimized.
For short-term liquidity requirements, the City primarily utilizes the Texas Short Term Asset Reserve
Program (TexSTAR). JPMorgan Fleming Asset Management, Inc. and First Southwest Asset
Management, Inc. serve as co-administrators under an agreement with the TexSTAR board of
directors to provide investment and participant services for this pool. JPMorgan Chase Bank or its
subsidiary J.P. Morgan Investor Services Co. provides the custodial, transfer agency, fund
accounting, and depository services for this pool.
The City also maintains an account with the Texas Local Government Investment Pool (TexPool).
Under the TexPool Participation Agreement, administrative and investment services to TexPool are
provided by Lehman Brothers Inc. and Federated Investors, Inc. through an agreement with the
State of Texas Comptroller of Public Accounts. The State of Texas Comptroller of Public Accounts
is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company
authorized to operate TexPool.
The City also maintains an account with the Local Government Investment Pool (TexasTERM).
Administrative and investment services to the pool are provided by PFM Asset Management LLC,
under an agreement with the TexasTERM Advisory Board and act on behalf of the pool participants.
Fair Weighted Average
ValueMaturity (days)
Investments
U S Treasury Securities$1,995,43021
U S Government Agency Securities31,545,887243
U.S. Treasury Plus MMKT Fund - Chase (sweep)5,057,4291
Texas Local Government Investment Pool (TexPool)4,132,3431
Texas Local Government Investment Pool (TexasTERM)4,666,0081
Texas Short Term Asset Reserve Program (TexSTAR)10,986,5241
Total Fair Value of Investments:$58,383,621
Portfolio weighted average maturity:132
Carrying Amount $(890,193)
Total Cash & Investments:$57,493,428
Fair Weighted Average
ValueMaturity (days)
Investments
Texas Short Term Asset Reserve Program (TexSTAR)560,6581
Total Fair Value of Investments:$560,658
Portfolio weighted average maturity:1
Carrying Amount $45,985
Total Cash & Investments:$606,643
Primary Government
Component Unit
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
48
At year end, balances in TexSTAR and TexPool were rated AAAm by Standard & Poor’s. Balances
in Texas TERM were rated AAAf by Standard & Poor’s.
TexSTAR and TexPool operate on a $1 net asset value basis. In order to maintain a stable $1 price
of the fund, the pools will sell portfolio holdings if the ratio of the market value of the portfolio divided
by the book value of the portfolio is less than .995 or greater than 1.005. The pools are stated at
their fair value, which is $2,818 greater than the book value for the pools at 9/30/06.
During 2006, the City realized no gains or losses from the sale of investments, as the City’s
investment strategy is to invest to maturity. The City recognized a net decrease in the fair value of
investments held at year-end of $7,984.
3. TAXES
Property Taxes - Property is appraised and a lien on such property becomes enforceable as of
January 1st of each year. Taxes are levied on and payable the following October 1st. Taxes
become delinquent February 1st of the following year and are subject to interest and penalty
charges. Under an agreement which began August 1, 2000, Williamson County Tax Office collects
the City's taxes. In the fund financial statements, City property tax revenues are recognized when
levied to the extent that they are collected in the current year. Taxes collected prior to the levy date
to which they apply are recorded as unearned revenues and recognized as revenue of the period to
which they apply. All collections from prior year levies are considered delinquent tax revenue for
reporting purposes in the year collected. The allowance for uncollectible taxes at September 30,
2006 was $6,749.
The City is permitted by the State of Texas to levy taxes up to $2.50 per $100 of assessed valuation
for general government services and for the payment of principal and interest on general long-term
debt. The combined current tax rate to finance general government services, including debt service
for the fiscal year ended September 30, 2006, was $.34626 per $100 of assessed valuation.
The Williamson Central Appraisal District (Appraisal District) is responsible for the recording and
appraisal of property for all taxing units in Williamson County. The Appraisal District is required to
assess property at 100% of its appraised value. Real property must be reappraised at least every
four years. The City may, at its own expense, require annual reviews by the Appraisal District
through various appeals and, if necessary, legal action. Under this system, if the rate, excluding tax
rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate
for the previous year by more than 8%, qualified voters of the City may petition for an election to
determine whether to limit the tax rate to an increase of no more than 8%.
In September 2004, voters approved an initiative to freeze property taxes for homeowners over the
age of 65 or disabled. This measure mirrors the State of Texas Constitutional Amendment
Proposition 13, which passed overwhelmingly statewide in 2003. “Prop 13” gives local governments
the option of “freezing” taxes for the elderly and disabled.
Sales Taxes - The City has adopted the provisions of Article 1066C, Vernon's Texas Civil Statutes,
as amended, which grant the City the power to impose and levy a 1% Local Sales and Use Tax
within the City. Proceeds of the tax are credited to the General Fund except for sales taxes
generated at the airport which are credited to the Airport (Enterprise) Fund. Collections and
enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas,
who remits to the City monthly the proceeds of the tax, after deduction of a 2% service fee.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
49
InterfundInterfund
ReceivablesPayables
MAJOR FUNDS:
Georgetown Tranportation Enhancement
Corporation$101,585
Electric fund 355,980
Water Services fund$895,647
Total major funds895,647457,565
NONMAJOR FUNDS:
Village Improvement District15,735
Sanitation funds 422,347
Total nonmajor funds438,082
TOTAL INTERFUND
RECEIVABLES & PAYABLES $895,647$895,647
On October 1, 2001, the City began collecting an additional ½ cent sales tax for its component unit,
GTEC, to fund transportation improvements that promote economic development. These funds are
reported in the GTEC General Capital Projects Fund, a blended component unit of the City.
On April 1, 2003, the City began collecting an additional ¼ cent sales tax in accordance with Texas
House Bill 445 to fund maintenance on streets that were in existence at the time the sales tax was
adopted by the voters. In November 2006, the citizens readopted this ¼ cent sales tax option. The
sunset provision will expire in March 2011. These funds are reported in the Streets Special Revenue
Fund.
On October 1, 2005, the City began collecting an additional 1/8 cent sales tax in accordance with the
Texas Development Corporation Act of 1979, Article 5190.6, Section 4A Texas Revised Civil Statues
for the promotion and development of new and expanded business enterprises. This sales tax is
administered through the Georgetown Economic Development Corporation (GEDCO), a legally
separate entity from the City. GEDCO is reported as a discretely presented component unit of the
City.
On October 1, 2005, the City began collecting an additional 1/8 cent sales tax to be used toward the
reduction of ad valorem property taxes. Proceeds are credited to the City’s General Fund.
4. INTERFUND RECEIVABLES / PAYABLES AND TRANSFERS
Interfund receivables and payables relate to negative positions in pooled cash equity. All balances
are expected to be resolved within six months.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
50
TOTAL
General FundDebt Service
Gen. Capital
Projects
Water
Services
Nonmajor
FundsInternal Services TRANSFERS OUT
Governmental Funds:
Major Funds
T General fund975,000 667,326 89,800 1,732,126
R GTEC1,088,616 1,088,616
A Gen. capital projects 995,465 995,465
N
S Nonmajor Funds
F Special revenue funds (SRFs)55,870 52,942 15,000 123,812
E Internal service funds76,417 31,946 4,579 112,943
R
SEnterprise Funds:
Major funds
O Electric3,452,006 10,376 562 462,374 3,925,318
U Water services1,752,728 150,464 1,903,192
T
Nonmajor funds
Nonmajor enterprise funds412,576 412,576
TOTAL TRANSFERS IN5,749,597 1,173,504 975,000 10,376 682,887 1,702,682 10,294,046
Transfers eliminated in Government-wide statements:(4,063,898)
Net Transfers:6,230,148
TRANSFERS IN
Nonmajor FundsMajor Funds
The net transfers between the governmental types and business types total $6,230,148. Per the
city’s fiscal and budgetary policy, utility operations transfer eight percent of is gross billings for utility
services to the General fund as a payment of the profits of the fund or a return on investment. Other
types of transfers include grant matching, fire hydrant testing, equipment purchases and capital
project funding.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
51
BalanceDeletionsBalance
10/01/05Additions& Transfers9/30/06
Governmental activities:
Capital assets not being depreciated
Land$4,042,571 $4,042,571
Construction in progress10,346,091 $14,712,691 $(1,562,825) 23,495,957
Total capital assets not being depreciated14,388,662 14,712,691 (1,562,825) 27,538,528
Capital assets being depreciated
Equipment15,900,558 2,235,241 (944,947) 17,190,852
Buildings21,256,991 21,256,991
Improvements18,719,031 168,665 18,887,696
Streets99,548,299 6,681,296 106,229,595
Capital Lease452,109 452,109
Total capital assets being depreciated155,876,988 9,085,202 (944,947) 164,017,243
Less accumulated depreciation for:
Equipment(9,665,668) (1,235,904) 482,310 (10,419,262)
Buildings(3,728,618) (525,357) (4,253,975)
Improvements(4,526,320) (781,105) (5,307,425)
Capital lease(90,422) (90,422) (180,844)
Total accumulated depreciation(18,011,028) (2,632,788) 482,310 (20,161,506)
Total capital assets being depreciated, net 137,865,960 6,452,414 (462,637) 143,855,737
Governmental activities capital assets, net$152,254,622 $21,165,105 $(2,025,462) $171,394,265
Electric activities:
Capital assets not being depreciated
Land$193,735 $193,735
Construction in progress486,677 $8,702,065 $(5,658,077) 3,530,665
Total capital assets not being depreciated680,412 8,702,065 (5,658,077) 3,724,400
Capital assets being depreciated
Equipment536,096 - 536,096
Buildings73,707 73,707
Improvements48,232,974 6,533,893 54,766,867
Total capital assets being depreciated48,842,777 6,533,893 - 55,376,670
Less accumulated depreciation for:
Equipment(407,720) (47,188) (454,908)
Buildings(13,924) (4,110) (18,034)
Improvements(16,002,148) (2,122,542) (18,124,690)
Total accumulated depreciation(16,423,792) (2,173,840) - (18,597,632)
Total capital assets being depreciated, net 32,418,985 4,360,053 - 36,779,038
Electric activities capital assets, net$33,099,397 $13,062,118 $(5,658,077) $40,503,438
5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2006 was as follows:
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
52
BalanceDeletionsBalance
10/01/05Additions& Transfers9/30/06
Water services activities:
Capital assets not being depreciated
Land$469,354 $469,354
Construction in progress5,035,060 $7,870,631 $(6,966,221) 5,939,470
Total capital assets not being depreciated5,504,414 7,870,631 (6,966,221) 6,408,824
Capital assets being depreciated
Equipment236,382 236,382
Buildings3,019,794 3,019,794
Improvements110,834,055 15,164,467 125,998,522
Total capital assets being depreciated114,090,231 15,164,467 - 129,254,698
Less accumulated depreciation for:
Equipment(193,331) (15,954) (209,285)
Buildings(1,159,582) (91,711) (1,251,293)
Improvements(22,235,313) (2,890,558) (25,125,871)
Total accumulated depreciation(23,588,226) (2,998,223) - (26,586,449)
Total capital assets being depreciated, net 90,502,005 12,166,244 - 102,668,249
Water services activities capital assets, net$96,006,419 $20,036,875 $(6,966,221) $109,077,073
Other nonmajor business type activities:
Capital assets not being depreciated
Land$981,500 $981,500
Construction in progress199,121 $705,481 $(190,400) 714,202
Total capital assets not being depreciated1,180,621 705,481 (190,400) 1,695,702
Capital assets being depreciated
Equipment193,627 193,627
Buildings1,875,808 1,875,808
Improvements15,644,745 4,699,119 20,343,864
Total capital assets being depreciated17,714,180 4,699,119 - 22,413,299
Less accumulated depreciation for:
Equipment(171,891) (7,956) (179,847)
Buildings(998,306) (96,387) (1,094,693)
Improvements(4,175,842) (669,574) (4,845,416)
Total accumulated depreciation(5,346,039) (773,917) - (6,119,956)
Total capital assets being depreciated, net 12,368,141 3,925,202 - 16,293,343
Other nonmajor business-type activities
capital assets, net $13,548,762 $4,630,683 $(190,400) $17,989,045
Total Business-type activities:
Capital assets not being depreciated
Land$1,644,589 - - $1,644,589
Construction in progress5,720,858 $17,278,177 $(12,814,698) 10,184,337
Total capital assets not being depreciated7,365,447 17,278,177 (12,814,698) 11,828,926
Capital assets being depreciated
Equipment966,105 - - 966,105
Buildings4,969,309 - - 4,969,309
Improvements174,711,774 26,397,479 - 201,109,253
Total capital assets being depreciated180,647,188 26,397,479 - 207,044,667
Less accumulated depreciation for:
Equipment(772,942) (71,098) - (844,040)
Buildings(2,171,812) (192,208) - (2,364,020)
Improvements(42,413,303) (5,682,674) - (48,095,977)
Total accumulated depreciation(45,358,057) (5,945,980) - (51,304,037)
Total capital assets being depreciated, net 135,289,131 20,451,499 - 155,740,630
Total business-type activities capital assets, net $142,654,578 $37,729,676 $(12,814,698) $167,569,556
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
53
Depreciation expense was charged to function/programs of the primary government as follows:
Governmental activities:
Culture-recreation$284,526
Development6,501
Economic development1,250
Fire38,403
General government663,460
Highways & streets330,113
Police61,600
Internal service funds1,246,935
Total depreciation expense
governmental activities$2,632,788
Business-type activities:
Electric$2,173,841
Water services2,998,223
Nonmajor773,917
Total depreciation expense
business-type activities$5,945,981
6. LONG-TERM DEBT
A. Overview
The following is a summary of long-term debt transactions of the City for the fiscal year ended
September 30, 2006:
BalanceBalance
October 1,September 30,Due within
2005AdditionsRetirements2006one year
Governmental activities:
General obligation bonds$44,306,603$20,300,000$(10,177,036)$54,429,567$2,755,592
(payable from tax pledge)
Compensated absences1,522,801757,030(512,339)1,767,492583,077
Obligation under capital lease255,702(113,069)142,63370,268
Arbitrage rebate payable17,663(3,013)14,650
Total governmental activities 46,102,76921,057,030(10,805,457)56,354,3423,408,937
Business-type activities:
Revenue bonds40,064,01211,870,000(6,049,012)45,885,0003,125,000
Compensated absences531,152194,191(178,891)546,452191,173
General obligation bonds4,509,384(243,950)4,265,434254,408
(payable from airport and
stormwater revenues)
Total business-type activities 45,104,54812,064,191(6,471,853)50,696,8863,570,581
TOTAL LONG-TERM DEBT$91,207,317$33,121,221$(17,277,310)$107,051,228$6,979,518
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
54
Fiscal
Year Ending
September 30 Principal Interest Principal Interest Principal Interest
20072,755,592$ 2,070,843$ 3,379,409$ 2,396,950$ 6,135,001$ 4,467,793$
20082,690,6852,738,3193,339,3162,121,6106,030,0014,859,929
20092,865,3512,150,5923,429,6491,976,5666,295,0004,127,158
20102,893,2102,032,6123,511,7911,824,1166,405,0013,856,728
20112,869,8821,922,5393,280,1181,670,0246,150,0003,592,563
2012-201616,030,8067,693,48115,989,1966,101,34232,020,00213,794,823
2017-202115,214,0414,046,87211,550,9552,813,93626,764,9966,860,808
2022-20269,110,000978,0335,670,000659,32914,780,0001,637,362
54,429,567$ 23,633,291$ 50,150,434$ 19,563,873$ 104,580,001$ 43,197,164$
GovernmentalTotalBusiness-type
At September 30, 2006 there was $9,400,000 of authorized but unissued general obligation bonds.
There are no authorized but unissued revenue bonds. The City is in compliance with all bond
ordinances.
B. General Obligation Debt
A summary of Tax-Supported General Obligation Debt outstanding at September 30, 2006 follows:
$5,185,000, 1997 Combination tax & revenue certificates of obligation due in annual
installments of $70,000 to $610,000 through August 15, 2017; interest at 5% to 7%
$5,220,000, 1998 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2018; interest at 4% to 5% (portion included below)
$6,750,000, 1999 Combination tax & revenue certificates of obligation due in
annual installments through August 15, 2019; interest at 4.3% to 5.5% (portion
included below)
$1,450,000, 2000 Combination tax & revenue certificates of obligation due in
annual installments through August 15, 2020; interest at 5.15% to 5.9%
$5,470,000, 2001 Combination tax & revenue certificates of obligation due in
annual installments through August 15, 2021; interest at 4.35% to 5.0%
$1,862,867, 2003 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2023; interest at 3.0% to 4.5%; $567,133
designated for GTEC capital improvements to be paid through revenues from the ½
cent GTEC sales tax
$985,000, 2004 Limited tax notes due in annual installments through February 15,
2011; interest at 2.5% to 4.0%
$4,130,000, 2005 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2025; interest at 3% to 4.5% (portion included
below)
$ 170,000
2,169,900
687,960
190,000
4,255,000
1,584,289
500,000
3,215,000
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
55
$14,080,165, 2005 General obligation and Refunding bonds due in annual
installments through August 15, 2020; interest at 3% to 4.75% (portion included
below)
$7,100,000, 2005A General obligation and Refunding bonds due in annual
installments through August 15, 2025; interest at 3.5% to 4.75%
$4,135,000, 2006 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2026; interest at 4% to 4.625%
Subtotal Tax-Supported General Obligation Debt – City Portion
13,576,707
7,100,000
4,135,000
37,583,856
$3,125,000, 2002 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2022; interest at 3.0% to 5.0%; entire issue
designated for GTEC capital improvements to be paid through revenues from ½
cent GTEC sales tax
$567,133, 2003 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2023; interest at 3.0% to 4.5%; designated for
GTEC capital improvements to be paid through revenues from the ½ cent GTEC
sales tax
$8,825,000, 2004 Limited tax notes due in annual installments through February 15,
2011; interest at 2.5% to 4.0%; portion refunded in 2006
$4,175,000, 2005 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2025; interest at 3% to 4.5%; designated for GTEC
capital improvements to be paid through revenues from the ½ cent GTEC sales tax
$1,235,000, 2006 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2026; interest at 4% to 4.625%; designated for
GTEC capital improvements to be paid through revenues from the ½ cent GTEC
sales tax
$7,830,00, 2006 Combination tax & revenue refunding bonds due in annual
installments through August 15, 2024; interest at 4.2% to 5%
Subtotal Tax-Supported General Obligation Debt – GTEC portion
Subtotal Tax-Supported General Obligation Debt -Combined
2,765,000
490,711
495,000
4,030,000
1,235,000
7,830,000
16,845,711
$54,429,567
A summary of Self-Supporting General Obligation Debt outstanding at September 30, 2006:
$5,220,000, 1998 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2018; interest at 4% to 5%, portion dedicated for
Airport Improvements, $129,208, to be paid with Airport fees. Portion dedicated for
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
56
MaturitiesSeries
2004-LTN
2007 335,000$
2008 345,000
2009 135,000
2010 105,000
2011 6,870,000
7,790,000$
Stormwater Drainage Improvements, $2,274,059, to be paid through monthly fees
charged to utility customers within City limits $ 1,850,100
$6,750,000, 1999 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2019; interest at 4.3% to 5.5%; portion dedicated
for Airport Improvements, $1,775,000 to be paid with Airport fees 257,040
$435,000, 2005 Combination tax & revenue certificates of obligation due in annual
installments through August 15, 2025; interest at 3% to 4.5% 420,000
$1,804,835, 2005 General obligation and Refunding bonds due in annual
installments through August 15, 2020; interest at 3% to 4.75% 1,738,294
Subtotal Self-Supporting General Obligation Debt 4,265,434
Total outstanding General Obligation Debt as of September 30, 2006 $58,695,00
C. Advanced Refunding/Defeasance
In prior years, the City defeased revenue bonds by placing the proceeds of the refunding bonds in
an irrevocable trust to provide for all future debt service payments on the defeased bonds.
Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the
City’s financial statements. At September 30, 2006, the outstanding balance of the defeased
bonds is $10,320,000.
On May 18, 2006, the City issued $7,830,000 in Combination Tax and Refunding Bonds with an
average interest rate of 4.5% to advance refund $7,790,000 of outstanding Series 2004 Limited
tax notes with average interest rates of 3.25%. The net proceeds (after insurance and other
issuance costs) were deposited in an irrevocable trust with an escrow agent to provide for all
future debt service payments on the defeased series bonds. As a result, the following bonds are
considered to be defeased and the liabilities for those bonds have been removed from the
financial statements.
The City advanced funded these bonds to extend the debt repayment schedule to
match the corresponding site improvements and to obtain a net economic gain
(difference between the present values of debt service payments on the old and new
debt) of $551,237.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
57
D. Revenue Debt
A summary of Revenue Debt outstanding at September 30, 2006 follows:
$27,770,000, 1998-A Utility System Revenue & Refunding bonds due in annual
installments through August 15, 2018; interest at 3.8% to 5.0% $15,325,000
$1,225,000, 1998-B Taxable Utility System Revenue & Refunding bonds due in
annual installments through August 15, 2015; interest at 6.15% to 6.65% 590,000
$4,320,000, 2000 Utility System Revenue bonds due in annual installments through
August 15, 2020; interest at 5.1% to 5.9% 565,000
$1,900,000, 2001 Utility System Revenue bonds due in annual installments through
August 15, 2021; interest at 4.75% to 5.12% $1,485,000
$6,500,000, 2002 Utility System Revenue bonds due in annual installments through
August 15, 2022; interest at 4.0% to 5.0% 5,780,000
$6,940,000, 2003 Utility System Revenue bonds due in annual installments through
August 15, 2023; interest at 3.55% to 4.55% 6,430,000
$4,025,000 2005 Utility System Revenue bonds due in annual installments through
August 15, 2025; interest at 2.85% to 4.75% 3,885,000
$8,665,000 2006 Utility System Revenue bonds due in annual installments through
August 15, 2026; interest at 4% to 4.625% 8,665,000
$3,205,000, 2006 Utility System Revenue & Refunding bonds due in annual
installments through August 15, 2020; interest at 4% to 4.5% 3,160,000
Total outstanding Revenue Debt as of September 30, 2006 $45,885,000
All net revenues of the utility system are pledged for the payment of debt service for the revenue
bonds. Net revenues, as defined by the various bond ordinances, include income and revenues
derived from the operation of the system, after deduction of the amount necessary to pay all
operating, maintenance, replacement and betterment charges of the system. These bond
ordinances require that the net revenues, as defined, equal at least 1.25 times the average annual
debt service on all revenue bonds. The City was in compliance with this requirement at September
30, 2006.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
58
Governmental
YearActivities
2007$71,222
200865,930
200913,996
Total principal and interest151,148
less - Applicable interest(8,515)
Total principal $142,632
MaturitiesSeries
2000
2010 205,000$
2011 220,000
2012 230,000
2013 240,000
2014 255,000
2015 270,000
2016 285,000
2017 300,000
2018 315,000
2019 330,000
2020 350,000
3,000,000$
In prior years, the City defeased revenue bonds by placing the proceeds of the refunding bonds in
an irrevocable trust to provide for all future debt service payments on the defeased bonds.
Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the
City’s financial statements. At September 30, 2006, the outstanding balance of the defeased bonds
is $10,970,000.
On May 18, 2006, the City issued $3,205,000 in Utility System Revenue & Refunding bonds with an
average interest rate of 4.25% to advance refund $3,000,000 of outstanding Series 2000 Utility
System Revenue bonds with average interest rates of 5.50%. The net proceeds (after insurance
and other issuance costs) were deposited in an irrevocable trust with an escrow agent to provide for
all future debt service payments on the defeased series bonds. As a result, the following bonds are
considered to be defeased and the liabilities for those bonds have been removed from the financial
statements.
\
The City advanced funded these bonds to reduce its total debt service payments over the
next 15 years by approximately $127,896. and to obtain a net economic gain (difference
between the present values of debt service payments on the old and new debt) of
$94,328.
Lease payable represents the remaining principal amounts payable under a lease purchase
agreement for the acquisition of a Voiceover Internet Protocol phone system and hardware. The
lease is recorded as a capital lease. Remaining requirements including interest, under the lease is
as follows:
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
59
7. RETIREMENT PLAN
A. Plan Description
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). The City of Georgetown is one of 811 municipalities having the benefit plan administered
by TMRS, an agent multiple-employer public employee retirement system. Each of the 811
municipalities have an annual, individual actuarial valuation performed. The following assumptions
were used for the December 31, 2005 valuations:
Actuarial Cost Method Unit Credit
Amortization Method Level Percent of Payroll
Remaining Amortization Period 25 Years – Open Period
Asset Valuation Method Amortized Cost
Investment Rate of Return 7%
Projected Salary Increases None
Includes Inflation At 3.5%
Cost-of-Living Adjustments None
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the
City-financed monetary credits, with interest. At the date the plan began, the City granted monetary
credits for service rendered before the plan began of a theoretical amount equal to two times what
would have been contributed by the employee, with interest, prior to establishment of the plan.
Monetary credits for service since the plan began are a percent (100%, 150%, or 200%) of the
employee's accumulated contributions. In addition, the City can grant, 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 December 31, 2005 calculations were based upon the following benefits. Members can retire at
ages 60 and above with 5 years or more of service or with 20 years of service regardless of age. A
member is vested after 5 years. The plan provisions are adopted by the governing body of the City,
within the options available in the state statutes governing TMRS and within the actuarial constraints
also in the statutes.
B. Contributions
The contribution rate for the employees is 7%, and the City matching ratio is currently 2 to 1, both as
adopted by the governing body of the City. Under the state law governing TMRS, the actuary
annually determines the City contribution rate. This rate consists of the normal cost contribution rate
and the prior service contribution rate, both of which are calculated to be a level percent of payroll
from year to year. The normal cost contribution rate finances the currently accruing monetary credits
due to the City matching percent, which are the obligation of the City as of an employee's retirement
date, not at the time the employee's contributions are made. The normal cost contribution rate is the
actuarially determined percent of payroll necessary to satisfy the obligation of the City to each
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
60
employee at the time his/her retirement becomes effective. The prior service contribution rate
amortizes the unfunded (overfunded) actuarial liability (asset) over the remainder of the plan's 25
year amortization period. The unit credit actuarial cost method is used for determining the City
contribution rate. Both the employees and the City make contributions monthly. Since the City
needs to know its contribution rate in advance to budget for it, there is a one-year delay between the
actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect.
(i.e. December 31, 2005 valuation is effective for rates beginning January 2007).
The City’s total payroll in fiscal year 2006 was $17,066,535 and the City’s contributions were based
on a payroll of $17,057,843. Both the City and the covered employees made the required
contributions, amounting to $1,771,043 for the City and $1,181,566 for the employees. The City’s
contribution amounted to 10.68% of the covered payroll for the calendar year. The employees’
contribution amounted to 7% of covered payroll.
Schedule of Actuarial Liabilities and Funding Progress
Actuarial Valuation Date
12/31/2005
Actuarial Value of Assets (A) $ 23,848,360
Actuarial Accrued Liability (B) $ 31,247,055
Percentage funded (C)=(A)/(B) 76.3%
Unfunded (Over-funded) Actuarial Accrued Liability (UAAL) (D)=(B)-(A) $ 7,398,695
Annual Covered Payroll (E) $ 16,585,727*
UAAL as a Percentage of Covered Payroll (D)/(E) 44.6%
*Based on calendar year ending 12/31/05, which varies from the City’s fiscal year.
Annual Pension Cost
Fiscal Year
Funding
Annual Pension
Cost (APC)
APC funded Net Pension
Obligation (NPO)
Employer’s
Contribution as a
% of Covered
Payroll
09/30/04
$ 1,183,700
$ 1,183,700
0
8.35
09/30/05 $ 1,312,070 $ 1,312,070 0 8.79
09/30/06 $ 1,771,043 $ 1,771,043 0 10.68
A copy of the TMRS Comprehensive Annual Financial Report may be obtained by contacting
TMRS at P.O. Box 149153, Austin, Texas 78714-9153.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
61
8. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan in accordance with Internal Revenue
Code Section 457. The plan, available to all City employees, permits them to defer a portion of their
salary until future years. Participation in the plan is optional. The deferred compensation is not
available to employees until termination, retirement, death or an unforeseeable emergency.
9. COMMITMENTS AND CONTINGENCIES
Long-Term Agreements
The City has the following long-term agreements, which represent significant commitments:
A. Wholesale Power Agreement with the Lower Colorado River Authority (LCRA) - The
City must purchase 90% of its electrical power requirements from the LCRA under a
long-term contract, which extends through 2016. Under the contract, the City's monthly cost
of purchased power averaged $2,386,945 for the fiscal year ended September 30, 2006.
B. Brazos River Authority (BRA) Water Contracts - Effective September 1, 2001, the City
revised its previous water availability agreements with the BRA to further plan for future water
needs and to standardize the pricing to a system-wide rate. The effective system-wide rate
for BRA’s fiscal year beginning September 1, 2006 is $52.50 and the City paid a total of
$1,672,256 for water during the fiscal year. The City has three separate agreements with the
BRA as follows:
(1) Lake Georgetown Water - This agreement, effective September 1, 2001 and expiring
August 31, 2050, requires BRA to make available to the City 6,720 acre-feet of water per
year at BRA’s system wide rate. The City paid $629,244 for water under this agreement
for the City’s fiscal year.
(2) Lake Stillhouse Hollow Water - This agreement, effective September 1, 2001 and
expiring August 31, 2040, requires BRA to make available to the City 15,448 acre-feet of
water per year at BRA’s system wide rate. The City paid $770,662 for water under this
agreement in 2005/06.
(3) Colorado River Basin Water - This agreement, effective September 1, 2001 required
BRA to make available to the City a total of 6,944 acre-feet of water per year. In June
2006, the City replaced the 6,944 acre-feet originating out of the LCRA basin with 10,000
acre-feet from the Brazos basin thru Lake Stillhouse Hollow. The City paid $272,350
under the original and amended agreements for 2005/06.
C. Brazos River Authority - Williamson County Regional Raw Water Line Agreement -
The City is a party to an agreement dated June 30, 1986, with the Brazos River Authority
(BRA), City of Round Rock and Jonah Water Special Utility District to design, construct and
operate a pipeline to transport water from Lake Stillhouse Hollow to Lake Georgetown. Total
project construction cost for the raw water line is approximately $40 million. In 2000, BRA
issued approximately $37 million in debt obligations, to be repaid through annual payments
from the participants. The City’s obligation is $31 million, including principal and interest, to
be repaid annually through 2032. The City began paying its allocated costs related to the
project in fiscal year 2002. The amount for fiscal year 2006 was $609,300. The following
schedule reflects the City's obligation:
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
62
D. Texas Capital Fund Programs - The City has received awards from this program, which is
operated by the State of Texas to assist in local economic development. Two types of
assistance are provided to businesses relocating to the area: (1) infrastructure improvements
and (2) low cost funding for facility construction. Infrastructure improvements become the
asset of the City upon construction, without repayment of the grant to the State. If the City
receives funding to construct a facility for a business, the City owns the facility and leases it to
the business. These lease payments are then repaid to the State. The leases and pass
through payments are recorded in the Agency Fund of the City. The City has three active
awards for facility construction, where long term agreements are in effect:
(1) Reedholm Instruments, Inc. - This facility was completed in 1997 and lease payments
began in March 1997. The business is current on lease payments and has an
outstanding balance of $204,063 as of September 30, 2006.
(2) Xycarb Ceramics, USA, Inc. - This facility was completed in January 1998 and lease
payments began in February 1998. The business is current on lease payments and has
an outstanding balance of $284,227 as of September 30, 2006.
(3) Schunk Quartz - This facility was completed in January 1998 and lease payments began
in February 1998. The business is current on lease payments and has an outstanding
balance of $284,227 as of September 30, 2006.
E. Chisholm Trail Special Utility District - In February 1999, the City and Chisholm Trail
Special Utility District (CTSUD) entered into an agreement which will provide CTSUD needed
water in exchange for allowing Georgetown the right to provide water service in the Highway
195 and expanded Sun City areas. The City will transfer to CTSUD a phased financial
position in the Lake Water Treatment Plant up to 4.36 mgd, not to exceed 28% of the off-peak
plant capacity. CTSUD will then pay prorata operating costs for all water utilized
As of September 30, 2006 the City has transferred 4.36 mgd of capacity, with a value of
$1,681,070.
F. Del Webb Corporation (Sun City Texas) - The Del Webb Corporation (Del Webb) began
development in April 1995 of a proposed 9,500 unit; 5,300 acre active retirement community
to be called Sun City Texas. The City, through a Development Agreement, and in exchange
for payment of Service Improvement Fees (SIP fee - discussed below) provides fire
protection, wastewater, water and electric service to Sun City. The project is annexed into
the City limits as phases of the project are platted. Home sales began in June 1995 and were
expected to average 425 homes per year for 20 years. As of September 30, 2006, 4,171
units have been completed.
Year Ending September 30 Amount
2007$779,464
2008808,557
2009853,324
2010963,297
20111,365,598
2012-203223,353,825
Total$28,124,065
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
63
In November 2002, Del Webb filed a revised Concept Plan that reduces the size of Sun City
from 10,500 to 5,000 age-restricted units on the southern portion of the property. The
Concept Plan also allows the northern 2,500 acres to be developed as a non-age restricted
community. In response to the significant changes in the revised Concept Plan, a Seventh
Amendment to the Development Agreement was approved in April 2003 for fiscal year
2003. That Seventh Amendment re-calculates the SIP fee for Sun City at 5,000 units. The
Seventh Amendment also accelerates the schedule for payment of the SIP Fees from a pure
per-unit basis to an annual minimum payment of SIP Fees for 300 units per year, at
$4,324.50 per unit, with build out completed by 2009. The City anticipates it will be able to
make all infrastructure and debt payments using the SIP Fees without cash shortfalls or
additional increases in overall service rates for water and wastewater.
The Seventh Amendment further identifies the ”stranded costs,” or the costs of infrastructure
built by the City under the Development Agreement for 10,500 units, but not needed as result
of Del Webb's decision to downsize Sun City to 5,000 units. The total Stranded Costs were
approximately $8.4 million. Under the Seventh Amendment, Del Webb paid the City $1.7
million towards the $8.4 million of Stranded Costs, leaving a balance of $6,670,064. The City
agreed to allow Del Webb to pay the balance, including 5.25% annual interest, over 7 years.
The Stranded Cost payment is $1,139,700 annually, and is being paid on a per unit basis for
the remaining Sun City units. These fees are in addition to SIP fees.
Finally, the Seventh Amendment adjusted the amount of the fiscal surety from $4 million total,
to $2 million for SIP Fees, and $3.8 million for Stranded Costs. The Seventh Amendment also
addressed the possibility of Del Webb selling the Northern Lands to a third party. In such
instance, all stranded costs that remain unpaid as of the date of closing would require either
full payment to the City or 100% fiscal surety for the balance and Del Webb would not be
released from obligation to pay any outstanding SIP fees.
Another element of the Seventh Amendment was a Water Wastewater Agreement to
reserve the Northern Land capacity for future use through 2015, so long as Del Webb makes
reservation payments to the City. The City received $261,039 from Del Webb for reservation
fees related to the Water and Wastewater Agreement.
In May 2006, the City approved the Eighth Amendment to the Development Agreement
with Del Webb. The Eighth Amendment set the build out at 7,500 age restricted units at Sun
City. Additionally, it escalated the payment of “stranded costs” and addressed the water and
wastewater capacity needed to serve the 2,500 age restricted units above the 5,000 units
originally defined in the Seventh Amendment. The SIP fee for units 5,001 through 7,000 was
also set in this agreement at $3,292.00 per unit.
G. Escalera Ranch - In 1999, the City of Georgetown and Escalera Ranch, Ltd. entered into an
agreement for a 500 home residential subdivision to be built over a period of eight years. The
City agreed to fund the off-site costs of infrastructure improvements required to provide
roadway system improvements and water service, including fire flow, to the development.
Escalera reimburses the City for all costs for the improvements on a per home basis.
Escalera pays the City based on the proposed build out schedule rather than actual permits
issued. As of September 30, 2006, 37 total permits were issued for this development and
318 units paid to date.
H. Georgetown Village Public Improvement District - In 1999, the City of Georgetown
created the Georgetown Village Public Improvement District No. 1, pursuant to Chapter 372
of the Texas Local Government Code. The City is required to construct and provide
operation, repair and maintenance of parks, recreational facilities, alleyways, lighting,
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
64
landscaping and related improvements to the district that are above the standards that are
met elsewhere in the City. Property owners are assessed an annual maintenance
assessment of $0.20 per $100 valuation. Assessment revenue of $109,370 was recognized
for 2006. As of September 30, 2006 all costs associated with the Georgetown Village Public
Improvement District have been reimbursed.
I. Shell Road Public Improvement District - In 2001, the City created the Shell Road Public
Improvement District, pursuant to Chapter 372 of the Texas Local Government Code. The
City was required to design and construct the realignment of Shell Road, which will be
accomplished through an interlocal agreement with Williamson County. The cost of the
construction was $832,500 and will be repaid by the property owners in the PID through an
assessment based on each property’s linear feet of the Shell Road alignment. Each
assessment is due at the time the tract is platted, at the time of the sale of the tract, or within
seven years after the realignment of the road, whichever is earlier. Assessments totaling
$832,500 were billed in fiscal year 2004. As of September 30, 2006, outstanding
assessments totaled $378,122.
J. Cimarron Hills Public Improvement District - In May 2000, the City and Paloma Cimarron
Hills, L.P. entered into a development agreement for a 606 home, 813 acre subdivision within
the City’s Extraterritorial Jurisdiction (ETJ). As part of this agreement, the City created the
Cimarron Hills PID to reimburse the developer for costs of certain infrastructure
improvements. Each lot within the development is assessed an annual fee based on its type
of usage. Once the revenue stream is stabilized, and reserve fund requirements are met, the
PID may issue revenue bonds to reimburse the developer. As part of the agreement, the
developer will construct a wastewater treatment plant, to be transferred to the City, who will
then operate the plant. The City will also collect a per unit transportation fee which will be
used to fund necessary roadway improvements and bridge crossings in the area. As of
September 30, 2006, 58 homes had been completed for this development. PID assessment
collection began in 2002. In 2006, PID assessments were $283,348. The developer was
reimbursed $266,769 from current year collections and available fund balance. The
assessments and related disbursements are recorded in the Agency Funds.
K. Wolf Ranch Towne Center - In July 2003, the City approved a development agreement with
Simon Properties for the 750,000 sq ft Wolf Ranch Towne Center. The project will include
Target and 70 other retailers and restaurants. As part of the agreement, the City will provide
utility improvements to the site, as well as, fund $10.5 million of highway improvements for
the project. The $10.5 million to be funded with debt issued and repaid by GTEC, will
improve SH 29, as well as, provide the badly needed frontage roads for IH-35. As of
September 30, 2006, $10,555,000 of GTEC debt had been issued for this project. Texas
Department of Transportation will be contributing over $7 million for these improvements as
well.
The City’s development agreement with Simon includes a sales tax rebate allowable under
Chapter 380 of the Texas Local Government Code. 53% of the 1% general operating sales
tax revenue generated at the development is rebated to Simon as an economic development
incentive. This arrangement continues for 20 years or up to $15 million, which funds the
public on-site improvements paid by Simon.
In October 2004, the City created Wolf Ranch Tax Increment Reinvestment Zone (TIRZ) as a
part of the development agreement and is created solely for the purpose of refinancing the
City’s obligation to Simon under the development agreement.
In June 2004, the City created the Wolf Ranch Public Improvement District (PID) #1 for all
Simon owned property within the Wolf Ranch development. In the event that revenues from
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
65
the project are insufficient to fund any outstanding debt related to the project, an assessment
would be levied against the property in the PID to protect the City from potential revenue
shortfalls. Should revenues meet or exceed expectations, no assessment is made. The
utility revenue collected for this project exceeded the debt service due in 2006 for the public
utility improvement assessment. The public road assessment for Wolf Ranch was
$1,151,977 including interest as of September 2006.
L. TASUS Texas Corporation – In November 2003, the City Council approved an economic
development incentive package for TASUS to locate its plastic injection molding facility in
Georgetown. This package included infrastructure and utility improvements, including water
and wastewater, as well as road improvements, paid for through Georgetown Transportation
Enhancement Corporation (GTEC) economic development sales tax. Infrastructure
improvements totaled $200,950. The City also approved a property tax abatement to TASUS
for fiscal year 2004/05 – 2009/10, based upon job creation. The project is expected to create
over 102 jobs for the community.
M. 400 Main Street, LP – In August 2004, the City Council approved a development agreement
for a redevelopment project in the downtown area. This agreement included infrastructure
and utility improvements, paid through the City and the Georgetown Transportation
Enhancement Corporation (GTEC) economic development sales tax. Improvements total
$226,185 for Phase I of the project and $139,057 for Phase II.
N. San Gabriel River Place Partners, LTD – In October 2004, the City Council approved an
economic development agreement for a development project in the downtown area. This
agreement includes infrastructure and utility improvements, paid through the City and the
Georgetown Transportation Enhancement Corporation (GTEC) economic development sales
tax. Infrastructure improvements totaled $750,000. In addition, the City agreed to contribute
50% of the annual 1% general sales tax revenue generated within the development back to
the developer for up to 20 years, or $1,000,000, whichever comes first.
O. Municipal Utility District (MUD) No. 15 – In December 2004, the City Council approved a
consent agreement to allow a MUD to be created within its extra-territorial jurisdiction (ETJ).
The agreement outlines future annexation requirements and utility service provisions.
P. 500 South Austin Avenue, LP – In August 2005, the City Council approved a development
agreement for a redevelopment project in the downtown area. This agreement included
infrastructure and utility improvements paid through the City and the Georgetown
Transportation Enhancement Corporation (GTEC) economic development sales tax, as well
as fee waivers. Improvements are capped at $506,000 and fee waivers at $109,481.
Grants
Amounts received or receivable from grantor agencies, principally the federal government, are
subject to audit and adjustment by the agencies. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time, although the City expects
such amounts, if any, to be immaterial.
CITY OF GEORGETOWN, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
66
Litigation
The City is involved in various legal actions in which claims of varying amounts are being asserted
against the City. The City follows the practice of providing for these claims only when they become
probable and reasonably determinable in amount. In the opinion of City management, these actions
will not result in a significant change in the City's financial position.
Construction Contracts
Estimated costs to complete significant construction projects in progress at year-end totaled
approximately $4,930,358 for Governmental Fund Types and approximately $7,403,896 for
Enterprise Funds.
10. DEFICIT FUND EQUITY
At September 30, 2006, the Sanitation Fund had negative unrestricted net assets of $215,859. This
deficit is due to the timing of a future debt issue to pay for current year expenses related to drainage
maintenance on the old city landfill property.
11. SUBSEQUENT EVENTS
Annexation of 8,909 acres of property was completed by the City in December 2006, in accordance
with the City’s annexation plan. This annexation represents a 41% increase in land mass for the
City. The key areas annexed include the State Highway 130 toll road, as well as, various infill
locations. Infrastructure improvements, primarily wastewater and roads, for these areas will impact
future capital costs and will be incorporated in the City’s capital planning program. These
improvements will be funded through developer contributions, impact fees, and other long-range
funding sources.
In November 2006, the City entered into a 10 year tax abatement agreement with Citigroup, NA, Inc
who is constructing of a $475 million data center within the City. The abatement will begin in tax
year 2008 (fiscal year 2008/09). The Georgetown Economic Development Corporation (GEDCO)
also entered into an agreement with Citicorp, NA to fund $1.5 million of offsite wastewater
improvements as an incentive for the creation of 50 jobs.
In November 2006, the City entered into a development agreement with ABG for development of a
master planned 2,700 acre development in the southwest quadrant of the City. This development
will include over 6,500 units. Infrastructure for the project is funded by the developer, who will be
reimbursed on a per unit basis through the City’s San Gabriel South Fork defined area wastewater
impact fee.
In November 2006, the City created the Williams Drive Tax Increment Financing Zone (TIRZ) to fund
improvements needed for redevelopment of the Williams Drive gateway area. A master plan for the
area was developed in 2006, with implementation planned for future years.
In November 2006, the City renewed its 1/4 cent sales tax option for street maintenance extending
the tax thru March 31, 2011.
CITY OF GEORGETOWN, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION –
TEXAS MUNICIPAL RETIREMENT SYSTEM TREND DATA –
LAST TEN FISCAL YEARS
67
UnfundedUAAL
ActuarialActuarialActuarial Annualas a % of
FiscalValue of Accrued LiabilityPercentageAccrued LiabilityCoveredCovered
Year (1)Assets(AAL) (1)Funded(UAAL) (1)PayrollPayroll
19976,822,635$ 7,749,553$ 88.0%926,918$ 7,210,336$ 12.9%
19988,007,3469,049,05088.5%1,041,7047,812,22313.3%
19998,989,0249,889,40590.9%900,3818,426,31210.7%
200010,556,98111,677,54190.4%1,120,5608,602,72813.0%
200112,223,28814,104,23986.7%1,880,95110,127,47018.6%
200213,594,00516,130,45384.3%2,536,44811,269,42222.5%
200315,549,04918,658,88483.3%3,109,83512,183,51025.5%
200418,195,56722,347,39681.4%4,151,82913,698,26030.3%
200520,947,68725,168,23783.2%4,220,55014,985,46028.2%
200623,848,36031,247,05576.3%7,398,69516,585,72744.6%
Source: Texas Municipal Retirement System ("TMRS") Annual Report and City payroll reports
Notes:
(1)Trend data presented is information as of December 31 of the previous year, which is the fiscal year of the TMRS.
CITY OF GEORGETOWN, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION -
MODIFIED APPROACH FOR STREETS INFRASTRUCTURE CAPITAL ASSETS
68
PCI Rating by Functional Class
Arterial91.91
Collector88.38
Local91.00
Total90.87
Costs to Maintain System at Designated Level
Estimated Maintenance Cost$2,288,034
Budgeted Maintenance Cost$861,640
Actual Maintenance Cost$558,084
Condition Rating Summary
Center
% ofLine% of
ConditionRatingSegmentsSegmentsMilesSegments
Very Good90-1001,581 65.1%128.1 64.9%
Good80-90439 18.1%37.0 18.7%
Fair45-80392 16.1%31.4 15.9%
Poor< 4518 0.7%1.0 0.5%
2,430 100.0%197.5 100.0%
Notes:
[a] Center line miles will vary from the total number of center line due to street
segments that were omitted from the survey. Street segments that were either
scheduled or currently receiving maintenance were omitted from the street survey.
GASB Statement 34 allows the City to use the Modified Approach with respect to infrastructure assets
instead of depreciating these assets. The City’s system for reporting assets is fully discussed in Note N on
page 43 of the notes. The following is additional information for the City’s streets infrastructure for fiscal
year 2006. This information is updated every three years therefore there will be no comparative data until
2008.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted for expenditures for
particular purposes.
Court Fees - to account for the receipt and expenditure of court fees that are legally restricted for court
security and technology.
Fire Billing and Donations - to account for the receipt and expenditures of funds received by the City for
various fire services, including calls for service, donations, abandoned vehicle revenue and inspections.
Library Restricted - to account for the receipt and expenditure of restricted donations such as memorials and
gifts for a designated library purchase or program. Also accounts for the receipt of the Telecommunication
Infrastructure grant for computer hardware and software.
Main Street Façade - to account for the receipt of private donations, grants, and money raised through
special events to provide assistance to building/property owners for maintaining the appearance of the
downtown historic district. Funds are distributed through an application/approval process with either a low-
interest loan or grant.
Mapping - to account for expenditures relating to City-wide mapping projects.
Parks - to account for revenues earned by the City from activities on City park land, which are restricted for
improvements to park land and for parkland dedication fees paid by developers, which are restricted by
zones for new parks. Also accounts for the partial administration of a federal drug prevention grant in
coordination with Georgetown Project.
Police - to account for a Texas Department of Transportation grant for a Selective Traffic Enforcement
Project (STEP) related to overtime costs and the receipt and expenditure of seized donated funds.
Streets Sales Tax - to account for the receipt and expenditure of revenues collected from the ¼ cent sales
tax approved by the citizens in November 2001 under Texas House Bill 445. The funds are required to be
spent on maintenance of streets that were in existence at the time of adoption of the tax.
Tourism - to account for the receipt and expenditure of funds received by the City from the assessment of
hotel and motel occupancy tax. Usage of funds is restricted to promotion of tourism and arts within the City.
Village Public Improvement District - to account for the receipt and expenditure of the revenues collected
from property assessments paid by Georgetown Village Public Improvement District residents and the
developer to fund maintenance on upgraded parks facilities within the subdivision.
Downtown and Wolf Ranch Tax Increment Financing Districts (TIF) – to account for public improvements
within an area that will generate private-sector development. The tax base is frozen at a pre-development
level and the increases in taxes derived from increases in assessed valuations are to retire bonds originally
issued for the development or to leverage future growth in the assigned areas.
Capital Projects Funds
Capital Projects Funds are used to account for revenues and expenditures for the acquisition or construction of
major capital facilities, other than those financed by Proprietary Fund Types.
Streets Improvements - to account for street fees and other revenue used to construct streets infrastructure
improvements.
CITY OF GEORGETOWN, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
AS OF SEPTEMBER 30, 2006
FIREMAIN
COURTBILLING AND LIBRARY STREET
FEES DONATIONS RESTRICTED FACADE MAPPING PARKS
ASSETS:
Cash and cash equivalents$12,367$17,778$9,330$4,018$9,243$55,357
Investments60,37886,80145,55119,61845,125270,272
Accounts receivable:
Sales tax
Grants 6,385
Other 44,482103,539
TOTAL ASSETS $72,745$149,061$54,881$23,636$54,368$435,553
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$167$6,908$998$3,198
Due to other funds
Unearned revenue44,4826,250182,363
Total liabilities 16751,3907,248185,561
Fund Balance:
Reserved for:
Encumbrances22,74225,72079$6,250
Special programs49,83671,95147,554$23,63648,118249,992
Unreserved, designated for:
Capital projects
Unreserved
Total fund balance72,57897,67147,63323,63654,368249,992
TOTAL LIABILITIES AND FUND BALANCE $72,745$149,061$54,881$23,636$54,368$435,553
SPECIAL REVENUE FUNDS
CAPITAL TOTAL
PROJECTS FUND2006
VILLAGE WOLF
IMPROVEMENTDOWNTOWNRANCHSTREET
POLICE STREETS TOURISM DISTRICT TIF TIF IMPROVEMENTS
$14,526$266,369$39,814$3,021$$163,562$595,385
70,9111,300,505194,38714,750798,5702,906,868
258,83035,049$16,645310,524
15,229 21,614
147 148,168
$100,666$1,825,704$269,397$16,645$17,771$$962,132$3,982,559
$4,938$16,763$3,390$36,362
$15,73515,735
91041,259275,264
4,93816,76316,64544,649327,361
19,851$235,41748,13616,982$375,177
75,8771,590,287204,498$17,7712,379,520
900,501900,501
95,7281,825,704252,63417,771917,4833,655,198
$100,666$1,825,704$269,397$16,645$17,771$$962,132$3,982,559
SPECIAL REVENUE FUNDS
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
FIREMAIN
COURTBILLING ANDLIBRARYSTREET
FEES DONATIONS RESTRICTED FAÇADE MAPPING PARKS
REVENUES:
Grants and entitlements$6,367$18,902
Hotel/Motel tax
Property assessments
Sales tax
Court fees$61,973
Investment earnings3,566$6,2792,253$772$2,13911,813
Donations 1,30025,4681,000769
Mapping fees 36,084
Fire incident billings89,658
Other 16,345215,351
Total revenues 65,539 113,582 34,088 1,772 38,223246,835
EXPENDITURES:
Culture - recreation37,65625,09296,656
Development 15,082
Fire services92,731
Highways and streets
Police94,437
Capital outlay 28,112
Total expenditures94,43792,731 37,656 25,09215,082124,768
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (28,898) 20,851 (3,568) (23,320)23,141122,067
OTHER FINANCING SOURCES (USES):
Sale of property
Transfers in 15,00019,449
Transfers out (10,000)(52,942)
Total other financing sources (uses) (10,000) (52,942) 15,00019,449
NET CHANGE IN FUND BALANCE(38,898)(32,091) (3,568) (8,320)23,141141,516
FUND BALANCES, Beginning of period 111,476129,76251,20131,95631,227108,476
FUND BALANCES, End of period $72,578$97,671$47,633$23,636$54,368$249,992
SPECIAL REVENUE FUNDS
TOTAL
2006
VILLAGEWOLF
IMPROVEMENTDOWNTOWNRANCHSTREET
POLICE STREETS TOURISM DISTRICT TIF TIF IMPROVEMENTS
$74,693 $99,962
$374,340 374,340
$109,370$17,771$45,870173,011
$1,520,250 1,520,250
61,973
2,91652,2516,1831,485$18,273107,930
25,574 54,111
36,084
89,658
24,94148,57015,31821,685342,210
128,1241,572,501 429,093126,17317,77145,87039,9582,859,529
352,571126,590638,565
15,082
92,731
3,205 3,205
56,703 151,140
42,532902,437 3,450976,531
99,235905,642 352,571126,5903,4501,877,254
28,889666,859 76,522(417)17,77145,87036,508982,275
31,10231,102
3,30544,571600,000682,325
(15,000)(45,870)(123,812)
3,305 29,571(45,870)631,102589,615
32,194666,859 106,093(417)17,771667,6101,571,890
63,5341,158,845146,541417249,8732,083,308
$95,728$1,825,704$252,634$$17,771$$917,483$3,655,198
PROJECTS FUND
CAPITAL
SPECIAL REVENUE FUNDS
CITY OF GEORGETOWN, TEXAS
COURT FEES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Court fees$40,000$40,000$53,525$13,525
Investment earnings8008003,5662,766
Total revenues 40,80040,80057,09116,291
EXPENDITURES:
Capital31,91573,91571,1152,800
Total expenditures 31,91573,915 71,115 2,800
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES8,885(33,115)(14,024)19,091
OTHER FINANCING SOURCES (USES):
Transfers out (10,000)(10,000)(10,000)
Total other financing sources (uses) (10,000)(10,000)(10,000)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS(1,115)(43,115)(24,024)19,091
FUND BALANCE, Beginning of period 1,11543,11573,86030,745
FUND BALANCE - BUDGETARY BASIS,
End of period$$49,836$49,836
Adjustments to GAAP:
Reverse current year encumbrances22,742
FUND BALANCE - GAAP BASIS
End of period $72,578
2006
CITY OF GEORGETOWN, TEXAS
FIRE BILLING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO FINAL
BUDGET
REVENUES:
Investment earnings$2,000$2,000$6,279 $4,279
Donations 1,0001,0001,300300
Fire incident billings121,500121,50094,903(26,597)
Other 28,00028,00011,100(16,900)
Total revenues 152,500152,500113,582(38,918)
EXPENDITURES:
Operations99,800119,550118,4511,099
Total expenditures 99,800119,550 118,451 1,099
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES52,70032,950(4,869)(37,819)
OTHER FINANCING (USES):
Transfers out (52,700)(52,950)(52,942)8
Total other financing (uses) (52,700)(52,950)(52,942)8
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS(20,000)(57,811)(37,811)
FUND BALANCE, Beginning of period 20,000129,762109,762
FUND BALANCE - BUDGETARY BASIS,
End of period$$71,951 $71,951
Adjustments to GAAP:
Reverse current year encumbrances25,720
FUND BALANCE - GAAP BASIS
End of period $97,671
2006
CITY OF GEORGETOWN, TEXAS
LIBRARY RESTRICTED SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL &
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Grants and entitlements$6,367$6,367
Investment earnings$7002,2531,553
Donations 20,00025,4685,468
Total revenues 20,70034,08813,388
EXPENDITURES:
Personnel2,1272,127
Operations46,17035,54310,627
Total expenditures 48,29737,670 10,627
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(27,597)(3,582)24,015
FUND BALANCE, Beginning of period 27,59751,13623,539
FUND BALANCE - BUDGETARY BASIS,
End of period$47,554$47,554
Adjustments to GAAP:
Reverse current year encumbrances79
FUND BALANCE - GAAP BASIS
End of period$47,633
2006
CITY OF GEORGETOWN, TEXAS
MAIN STREET FACADE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Investment earnings$100$100$772$672
Donations 2002001,000800
Total revenues 3003001,7721,472
EXPENDITURES:
Operations17,68747,25625,09222,164
Total expenditures 17,68747,25625,092 22,164
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(17,387)(46,956)(23,320)23,636
OTHER FINANCING SOURCES:
Transfers in 15,00015,00015,000
Total other financing sources 15,00015,00015,000
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
- BUDGETARY BASIS(2,387)(31,956)(8,320)23,636
FUND BALANCE, Beginning of period 31,95631,95631,956
FUND BALANCE - BUDGETARY BASIS,
End of period$29,569$23,636$23,636
Adjustments to GAAP:
Reverse current year encumbrances
FUND BALANCE - GAAP BASIS
End of period $23,636
2006
CITY OF GEORGETOWN, TEXAS
MAPPING SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
& FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Investment earnings$188$2,139$1,951
Mapping fees 20,35036,08415,734
Other11,200(11,200)
Total revenues 31,73838,2236,485
EXPENDITURES:
Operations46,02821,33224,696
Total expenditures 46,02821,33224,696
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(14,290)16,89131,181
FUND BALANCE, Beginning of period 14,29031,22716,937
FUND BALANCE - BUDGETARY BASIS,
End of period$48,118$48,118
Adjustments to GAAP:
Reverse current year encumbrances6,250
FUND BALANCE - GAAP BASIS
End of period$54,368
2006
CITY OF GEORGETOWN, TEXAS
PARKS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO
BUDGET
REVENUES:
Grants and entitlements$$$18,902$18,902
Investment earnings2,3002,30011,8129,512
Donations 769769
Other 108,250113,250215,351102,101
Total revenues 110,550115,550246,834131,284
EXPENDITURES:
Personnel18,90218,902
Operations227,791213,889102,977110,912
Total expenditures 227,791 232,791121,879110,912
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(117,241)(117,241)124,955242,196
OTHER FINANCING SOURCES:
Transfers in 19,44919,44919,449
Total other financing sources 19,44919,44919,449
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS(97,792)(97,792)144,404242,196
FUND BALANCE, Beginning of period 98,25798,257105,588 7,331
FUND BALANCE - BUDGETARY BASIS,
End of period$465$465249,992$249,527
Adjustments to GAAP:
Reverse current year encumbrances
FUND BALANCE - GAAP BASIS
End of period $249,992
CITY OF GEORGETOWN, TEXAS
POLICE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Grants and entitlements$30,000$49,469$74,693$25,224
Investment earnings8408402,9152,075
Donations 25,20025,20025,574374
Other5,5005,50024,94119,441
Total revenues 61,54081,009128,12347,114
EXPENDITURES:
Personnel47,69547,69521,46426,231
Operations26,40645,87532,16213,713
Capital outlay48,73848,7383,21445,524
Total expenditures 122,839142,30856,84085,468
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(61,299)(61,299)71,283132,582
OTHER FINANCING SOURCES (USES):
Transfers in 15,88815,8883,305(12,583)
Total other financing sources (uses) 15,88815,8883,305(12,583)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS(45,411)(45,411)74,588119,999
FUND BALANCE, Beginning of period 68,12968,1291,271(66,858)
FUND BALANCE - BUDGETARY BASIS,
End of period$22,718$22,71875,859$53,141
Adjustments to GAAP:
Reverse current year encumbrances 19,869
FUND BALANCE - GAAP BASIS
End of period $95,728
2006
CITY OF GEORGETOWN, TEXAS
STREET TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Sales tax$1,548,900$1,548,900$1,520,249$(28,651)
Investment earnings2,5002,50052,25149,751
Total revenues 1,551,4001,551,4001,572,50021,100
EXPENDITURES:
Capital outlay1,545,5001,800,500265,8161,534,684
Total expenditures 1,545,5001,800,500265,8161,534,684
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES5,900(249,100)1,306,6841,555,784
FUND BALANCE, Beginning of period 4,003259,003283,60324,600
FUND BALANCE - BUDGETARY BASIS,
End of period$9,903$9,9031,590,287$1,580,384
Adjustments to GAAP:
Reverse current year encumbrances 235,417
FUND BALANCE - GAAP BASIS
End of period $1,825,704
2006
CITY OF GEORGETOWN, TEXAS
TOURISM SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Hotel/Motel tax $270,000$270,000$374,340$104,340
Investment earnings3,9503,9506,1832,233
Other 32,83432,83448,57015,736
Total revenues 306,784306,784429,093122,309
EXPENDITURES:
Personnel146,292142,272142,23933
Operations198,295212,315216,008(3,693)
Total expenditures 344,587354,587358,247 (3,660)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(37,803)(47,803)70,846118,649
OTHER FINANCING SOURCES (USES):
Transfers in44,57144,57144,571
Transfers out (15,000)(15,000)(15,000)
Total other financing sources (uses) 29,57129,57129,571
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS(8,232)(18,232)100,417118,649
FUND BALANCE, Beginning of period 112,550112,550104,081(8,469)
FUND BALANCE - BUDGETARY BASIS,
End of period$104,318$94,318204,498$110,180
Adjustments to GAAP:
Reverse current year encumbrances48,136
FUND BALANCE - GAAP BASIS
End of period $252,634
2006
CITY OF GEORGETOWN, TEXAS
VILLAGE IMPROVEMENT DISTRICT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
& FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Property assessments$93,978$109,370$15,392
Investment earnings5001,485985
Other 31,69515,318(16,377)
Total revenues 126,173126,173
EXPENDITURES:
Operations126,590126,590
Total expenditures 126,590126,590
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(417)(417)
FUND BALANCE, Beginning of period 417417
FUND BALANCE - BUDGETARY BASIS,
End of period$$
Adjustments to GAAP:
Reverse current year encumbrances
FUND BALANCE - GAAP BASIS
End of period$
2006
CITY OF GEORGETOWN, TEXAS
DOWNTOWN TIF SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
& FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
REVENUES:
Property assessments$18,429$17,771$(658)
Investment earnings
Other
Total revenues 18,42917,771(658)
EXPENDITURES:
Capital 18,42918,429
Total expenditures 18,42918,429
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES17,77117,771
FUND BALANCE, Beginning of period
FUND BALANCE - BUDGETARY BASIS,
End of period$17,771$17,771
Adjustments to GAAP:
Reverse current year encumbrances
FUND BALANCE - GAAP BASIS
End of period$17,771
2006
CITY OF GEORGETOWN, TEXAS
WOLF RANCH TIF SPECIAL REVENUE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
ORIGINAL
BUDGET
FINAL
BUDGET
ACTUAL
BUDGETAR
Y BASIS
VARIANC
E TO
BUDGET
REVENUES:
Property assessments$47,570$47,570$45,870$(1,700)
Investment earnings
Other
Total revenues 47,57047,57045,870(1,700)
EXPENDITURES:
Operations 1,1001,100
Total expenditures 1,1001,100
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES47,57046,47045,870(600)
OTHER FINANCING SOURCES (USES):
Transfers out (47,570)(46,470)(45,870)600
Total other financing sources (uses) (47,570)(46,470)(45,870)600
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS
FUND BALANCE, Beginning of period
FUND BALANCE - BUDGETARY BASIS,
End of period$$$
Adjustments to GAAP:
Reverse current year encumbrances
FUND BALANCE - GAAP BASIS
End of period $
2006
CITY OF GEORGETOWN, TEXAS
STREET IMPROVEMENTS FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
VARIANCE
REVENUES:
Investment earnings$2,000$2,000$18,273$16,273
Donations00
Other16,80016,80021,8905,090
Total revenues18,80018,80040,16321,363
EXPENDITURES:
Capital outlay100,00020,43279,568
Bond issuance cost
Total expenditures100,00020,43279,568
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES18,800(81,200)19,731100,931
OTHER FINANCING SOURCES:
Bond proceeds
Sale of Property 31,10231,102
Transfers in100,000600,000500,000
Total other financing sources 100,000631,102 531,102
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER
EXPENDITURES - BUDGETARY BASIS 18,80018,800650,833632,033
FUND BALANCES, Beginning of period203,768203,768249,66845,900
FUND BALANCES - BUDGETARY BASIS,
End of Period $222,568$222,568900,501$677,933
Adjustments to GAAP:
Reverse current year encumbrances16,982
FUND BALANCES - GAAP BASIS,
End of period $917,483
FINAL
BUDGET
ACTUAL
BUDGETARY
BASIS
ORIGINAL
BUDGET
2006
Supplementary Individual Fund Financial
Statements and Schedules – Major Governmental Funds
These supplementary statements and schedules are included to provide management
additional information for financial analysis.
CITY OF GEORGETOWN, TEXAS
GENERAL FUND
COMPARATIVE BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 AND 2005
20062005
ASSETS:
Cash and cash equivalents$1,469,606$1,789,388
Investments7,174,5085,982,547
Accounts receivable (net of allowance for uncollectible accounts):
Delinquent taxes 168,812167,675
Sales taxes 1,155,127887,901
Other 796,223444,544
Prepaid items 204,750
Inventories1,911897
Long-term note receivable895,6861,193,586
TOTAL ASSETS $11,661,873$10,671,288
LIABILITIES AND FUND BALANCE:
Liabilities:
Accounts payable$737,742$1,259,787
Unearned revenue 1,967,8171,940,547
Total liabilities 2,705,5593,200,334
Fund Balance:
Reserved for:
Encumbrances1,036,847975,842
Inventories1,911897
Prepaid items 204,750
Unreserved7,917,5566,289,465
Total fund balance8,956,3147,470,954
TOTAL LIABILITIES AND FUND BALANCE $11,661,873$10,671,288
CITY OF GEORGETOWN, TEXAS
GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
20062005
REVENUES:
Property taxes:
Current$5,460,756 $5,470,721
Delinquent50,657 107,145
Penalties and interest63,087 67,976
Other158,205 147,427
Sales tax6,402,041 4,823,378
Franchise taxes2,209,235 1,942,246
Licenses and permits1,723,082 1,266,295
Charges for service941,718 823,980
Fines846,010 714,596
Donations and grants14,790 1,155
Investment income394,992 166,095
Other income555,198 412,288
Total revenues 18,819,77115,943,302
EXPENDITURES:
Current:
Culture - recreation4,330,3373,808,022
Development2,112,8451,933,076
Fire services4,078,7963,518,597
General government2,152,6671,802,752
Highways and streets1,758,2891,691,876
Police6,918,9485,603,521
Total expenditures 21,351,88218,357,844
EXCESS EXPENDITURES OVER REVENUES (2,532,111)(2,414,542)
OTHER FINANCING SOURCES (USES):
Transfers in 5,749,5974,804,605
Transfers out (1,732,126)(355,914)
Total other financing sources (uses) 4,017,4714,448,691
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING (USES)1,485,3602,034,149
FUND BALANCES, Beginning of period7,470,9545,436,805
FUND BALANCES, End of period $8,956,314$7,470,954
CITY OF GEORGETOWN, TEXAS
GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION
COMPARATIVE BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 AND 2005
20062005
ASSETS:
Cash and cash equivalents
Investments$9,063,418$8,865,547
Accounts receivable:
Sales Tax 508,510438,997
Other 653,964
TOTAL ASSETS $9,571,928 $9,958,508
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$216,878$94,942
Due to other funds101,585
Total liabilities 318,46394,942
Fund Balance:
Reserved for:
Encumbrances2,901,9052,473,528
Capital projects6,351,5607,390,038
Total fund balance9,253,4659,863,566
TOTAL LIABILITIES AND FUND BALANCE $9,571,928 $9,958,508
CITY OF GEORGETOWN, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006 (WITH COMPARATIVE FOR 2005)
2006 ACTUAL2005 ACTUAL
ORIGINALFINALBUDGETARY VARIANCEBUDGETARY
BUDGETBUDGETBASIS TO BUDGETBASIS
REVENUES:
TAXES:
Property tax:
Current$5,542,765$5,542,765$5,460,756$(82,009)$5,470,721
Delinquent 32,00032,00050,65718,657107,145
Penalties and interest 30,00030,00063,08733,08767,976
Total property tax 5,604,7655,604,7655,574,500(30,265)5,645,842
Sales tax 6,125,0006,168,0006,402,041234,0414,823,378
Franchise taxes 2,003,0002,003,0002,209,235206,2351,942,246
Other 170,600170,600158,205(12,395)147,427
Total taxes 13,903,36513,946,36514,343,981397,61612,558,893
LICENSES AND PERMITS:
Permits and inspection fees 1,096,7351,096,7351,757,240660,5051,246,527
Licenses 17,26517,26510,293(6,972)19,768
Total licenses and permits 1,114,0001,114,0001,767,533653,5331,266,295
CHARGES FOR SERVICES:
Library 42,00042,00046,6724,67245,602
Animal services35,00035,00035,65065038,924
Parks and recreation630,330630,330729,48299,152653,957
Fire protection 60,00060,00060,00060,000
Police support 27,50027,50025,465(2,035)25,497
Total charges for services 794,830794,830897,269102,439823,980
FINES AND FORFEITURES 725,250765,250846,01080,760714,596
INTEREST AND OTHER:
Investment income 172,000172,000387,605215,605167,426
Rent 60,00060,00016,030(43,970)70,934
Miscellaneous 350,300431,893634,578202,685525,129
Total interest and other 582,300663,8931,038,213374,320763,489
TOTAL REVENUES17,119,74517,284,33818,893,0061,608,66816,127,253
EXPENDITURES:
CULTURE - RECREATION:
Parks:
Personnel 863,099855,595846,2639,332749,884
Operations 647,263688,663665,30623,357615,958
Capital outlay 89,90090,08090,070107,000
Total parks 1,600,2621,634,3381,601,63932,6991,372,842
Recreation:
Personnel 566,689583,661561,86621,795521,551
Operations 226,110227,190227,1819209,446
Capital 17,50017,50016,542958
Total recreation 810,299828,351805,58922,762730,997
Recreation programs: Personnel 380,394382,339331,82350,516279,991 Operations 460,859473,319473,28732442,713 Capital outlay 15,000Total recreation 841,253855,658805,11050,548737,704
(continued)
2006 ACTUAL2005 ACTUAL
ORIGINALFINALBUDGETARY VARIANCEBUDGETARY
BUDGETBUDGETBASIS TO BUDGETBASIS
Library: Personnel $718,320 $717,357 $714,349 $3,008 $653,323 Operations 320,062332,662332,6539248,802 Capital outlay 90,25091,79091,782890,265Total library1,128,6321,141,8091,138,7843,025992,390
TOTAL CULTURE - RECREATION4,380,4464,460,1564,351,122109,0343,833,933
DEVELOPMENT:Current planning: Personnel626,989582,599531,65250,947536,752 Operations 227,564271,004271,0031198,770 Capital outlay6,7406,7337Total current planning854,553860,343809,38850,955735,522
Long range planning: Personnel191,572204,664204,6568168,720 Operations 218,934223,524223,521342,801Total long range planning410,506428,188428,17711211,521
Inspection services: Personnel 617,025620,174616,9863,188567,768 Operations 128,445121,405121,399698,917
Total inspection services745,470741,579738,3853,194666,685 Code enforcement: Personnel286,345286,965260,23426,731294,551 Operations 72,93776,50776,502599,264Total fire prevention359,282363,472336,73626,736393,815
TOTAL DEVELOPMENT 2,369,8112,393,5822,312,68680,8962,007,543
FIRE SERVICES:Fire administration: Personnel 231,021234,625231,4613,164216,426 Operations 246,193246,193243,3462,847190,181Total fire administration477,214480,818474,8076,011406,607
Fire operations: Personnel 3,322,9973,337,8813,156,323181,5582,706,278 Operations 463,883463,883456,6357,248407,110 Capital outlay 15,00015,00015,000Total fire operations3,801,8803,816,7643,627,958188,8063,113,388
TOTAL FIRE SERVICES 4,279,094 4,297,5824,102,765194,8173,519,995
GENERAL GOVERNMENT:
General government:
Operations 1,351,8511,308,8681,148,126160,742824,609
Total general government 1,351,8511,308,8681,148,126160,742824,609
City council:
Personnel89,55793,75191,2662,48582,474
Operations 182,079182,079156,67925,400181,240
Total city council 271,636275,830247,94527,885263,714
(continued)
CITY OF GEORGETOWN, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006 (WITH COMPARATIVE FOR 2005)
2006 ACTUAL2005 ACTUAL
ORIGINALFINALBUDGETARY VARIANCEBUDGETARY
BUDGETBUDGETBASIS TO BUDGETBASIS
City manager's office:
Personnel $546,645$550,344$541,831$8,513$482,143
Operations 233,536233,536229,4584,078156,558
Capital 150,000150,00098,89251,10873,723
Total city manager's office930,181933,880870,18163,699712,424
TOTAL GENERAL GOVERNMENT 2,553,6682,518,5782,266,252252,3261,800,747
HIGHWAYS AND STREETS:
Streets operating:
Personnel 672,502693,205587,346105,859586,886
Operations 590,557653,917653,9161523,810
Capital outlay825,000261,640255,3696,271835,602
Total streets operating2,088,0591,608,7621,496,631112,1311,946,298
TOTAL HIGHWAYS AND STREETS2,088,0591,608,7621,496,631112,1311,946,298
POLICE SERVICES:
Organization and administration:
Personnel 593,237597,415596,835 580 556,990
Operations 344,747367,807367,8025325,032
Capital outlay16,50092,53092,526418,119
Total organization and administration954,4841,057,7521,057,163589900,141
Support services bureau:
Personnel 1,899,7531,560,0601,429,343130,7171,200,281
Operations 201,556198,686184,85113,835154,611
Capital outlay 067,97039,55928,41161,200
Total support services bureau2,101,3091,826,7161,653,753172,9631,416,092
Field operations bureau:
Personnel 2,665,4472,912,2442,901,06011,1842,279,498
Operations 514,905477,405477,057348454,227
Capital outlay 12,60015,02015,01282,024
Total field operations bureau3,192,9523,404,6693,393,12911,5402,735,749
Animal services: Personnel331,733344,057344,0543286,967 Operations 110,959122,629122,6227101,238Total animal services442,692466,686466,67610388,205
Municipal court: Personnel 275,565266,567248,81017,757215,206 Operations 76,714129,754129,747769,904Total municipal court 352,279396,321378,55717,764285,110
TOTAL POLICE SERVICES7,043,7167,152,1446,949,278202,8665,725,297
(continued)
2006 ACTUAL2005 ACTUAL
ORIGINALFINALBUDGETARY VARIANCEBUDGETARY
BUDGETBUDGETBASIS TO BUDGETBASIS
TOTAL EXPENDITURES$22,714,794$22,430,804$21,478,734$952,070$18,833,813
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(5,595,049)(5,146,466)(2,585,728)2,560,738(2,706,560)
OTHER FINANCING SOURCES (USES):
Transfers in5,104,8705,106,7875,749,597642,8104,804,605
Transfers out(169,708)(1,744,708)(1,732,126)12,582(355,914)
Total other financing sources (uses)4,935,1623,362,0794,017,471655,3924,448,691
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING
(USES) - BUDGETARY BASIS(659,887)(1,784,387)1,431,7433,216,1301,742,131
FUND BALANCE - BUDGETARY BASIS,
Beginning of period5,360,276 6,484,776 6,487,0992,3234,744,968
FUND BALANCE - BUDGETARY BASIS,
End of period $4,700,389$4,700,3897,918,842$3,218,4536,487,099
Adjustments to GAAP:
Reverse current year encumbrances1,036,847975,842
Record net unrealized gain on investments6258,013
FUND BALANCE - GAAP BASIS, End of period $8,956,314$7,470,954
CITY OF GEORGETOWN, TEXAS
GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION
COMPARATIVE BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 AND 2005
20062005
ASSETS:
Cash and cash equivalents
Investments$9,063,418$8,865,547
Accounts receivable:
Sales Tax 508,510438,997
Other 653,964
TOTAL ASSETS $9,571,928 $9,958,508
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable$216,878$94,942
Due to other funds101,585
Total liabilities 318,46394,942
Fund Balance:
Reserved for:
Encumbrances2,901,9052,473,528
Capital projects6,351,5607,390,038
Total fund balance9,253,4659,863,566
TOTAL LIABILITIES AND FUND BALANCE $9,571,928 $9,958,508
CITY OF GEORGETOWN, TEXAS
GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2006 AND 2005
20062005
REVENUES:
Sales tax $3,040,499$2,448,521
Development contributions512,6171,347,125
Investment earnings342,520171,319
Total revenues 3,895,6363,966,965
EXPENDITURES:
General government 149,750184,294
Capital outlay 4,467,3716,774,627
Total expenditures 4,617,1216,958,921
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (721,485)(2,991,956)
OTHER FINANCING SOURCES (USES):
Bond proceeds1,235,0004,175,000
Interest and fiscal charges (35,000)(100,000)
Transfers Out (1,088,616)(1,072,849)
Total other financing sources (uses) 111,3843,002,151
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER EXPENDI-
TURES AND OTHER FINANCING (USES)(610,101)10,195
FUND BALANCES, Beginning of period 9,863,566 9,853,371
FUND BALANCES, End of period $9,253,465$9,863,566
CITY OF GEORGETOWN, TEXAS
GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006 (WITH COMPARATIVE FOR 2005)
ORIGINAL &
FINAL
BUDGET
2006 ACTUAL
BUDGETARY
BASIS
VARIANCE
TO BUDGET
2005 ACTUAL
BUDGETARY
BASIS
REVENUES:
Sales tax$3,036,300$3,040,499$4,199$2,448,521
Franchise fees
Court fees
Investment earnings65,000341,001276,001167,467
Other 450,042493,65643,6141,347,125
Total revenues 3,551,3423,875,156323,8143,963,113
EXPENDITURES:
Personnel
Operations280,200156,965123,235214,906
Capital outlay10,645,0754,869,5935,775,4828,802,855
Total expenditures 10,925,275 5,026,5585,898,717 9,017,761
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(7,373,933)(1,151,402)6,222,531(5,054,648)
Unearned revenue
OTHER FINANCING SOURCES (USES):
Bond proceeds2,920,0001,235,000(1,685,000)4,175,000
Bond issuance costs(51,600)(35,000)16,600(100,000)
Transfers out(1,332,200)(1,088,616)243,584(1,061,649)
Total other financing sources (uses) 1,536,200111,384(1,424,816)3,013,351
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING (USES) - BUDGETARY BASIS(5,837,733)(1,040,018)4,797,715(2,041,297)
FUND BALANCES, Beginning of period 6,733,9297,393,065659,1369,434,362
FUND BALANCES - BUDGETARY BASIS,
End of period$896,1966,353,047$5,456,8517,393,065
Adjustments to GAAP:
Reverse current year encumbrances2,901,9052,473,528
Record net unrealized loss on investment(1,487)(3,027)
FUND BALANCES - GAAP BASIS
End of period$9,253,465$9,863,566
CITY OF GEORGETOWN, TEXAS
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2006 AND 2005
20062005
ASSETS:
Investments$871,559$504,150
Accounts receivable:
Delinquent taxes 101,51588,604
TOTAL ASSETS $973,074$592,754
LIABILITIES AND FUND BALANCE:
Liabilities:
Deferred Revenue$94,406$84,603
Total liabilities 94,40684,603
Fund Balances:
Reserved for debt service878,668508,151
TOTAL LIABILITIES AND FUND BALANCES $973,074$592,754
CITY OF GEORGETOWN, TEXAS
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
20062005
REVENUES:
Ad valorem taxes:
Current$3,447,998$2,708,365
Delinquent 25,41853,943
Total ad valorem taxes 3,473,4162,762,308
Investment earnings and other 90,17847,098
Total revenues 3,563,5942,809,406
EXPENDITURES:
Principal retirement 2,387,0352,500,901
Interest and fiscal charges 2,072,7521,670,424
Total expenditures4,459,7874,171,325
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES(896,193)(1,361,919)
OTHER FINANCING SOURCES (USES):
Bond Proceeds7,830,0009,180,166
Payment to refunding escrow agent(7,736,794)(9,243,904)
Transfers in1,173,5041,165,372
Total other financing sources (uses)1,266,7101,101,634
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING (USES)370,517(260,285)
FUND BALANCES, Beginning of period 508,151768,436
FUND BALANCES, End of period $878,668$508,151
CITY OF GEORGETOWN, TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006 (WITH COMPARATIVE FOR 2005)
ORIGINAL
BUDGET
FINAL
BUDGET
2006
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO
BUDGET
2005 ACTUAL
BUDGETARY
BASIS
REVENUES:
Ad valorem taxes$3,488,439$3,488,439$3,473,416$(15,023)$2,762,308
Investment earnings15,00015,00090,17875,17847,318
Other
Total revenues 3,503,4393,503,4393,563,59460,1552,809,626
OTHER FINANCING SOURCES (USES):
Principal, interest and fiscal charges(4,839,117)(4,932,317)(4,459,787)472,530(4,171,325)
Bond proceeds7,830,0007,830,0009,180,165
Payment to refunding escrow agent(7,736,800)(7,736,794)6(9,243,904)
Transfers in1,416,8461,416,8461,173,504(243,342)1,165,372
Total other financing sources (uses) (3,422,271)(3,422,271)(3,193,077)229,194(3,069,692)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
OTHER FINANCING SOURCES - BUDGETARY BAS81,16881,168370,517289,349(260,066)
FUND BALANCE, Beginning of period 368,273368,273508,151139,878768,217
FUND BALANCE - BUDGETARY BASIS,
End of period$449,441$449,441 878,668$429,227 508,151
Adjustments to GAAP:
Reverse current year encumbrances
FUND BALANCE - GAAP BASIS
End of period $878,668$508,151
CITY OF GEORGETOWN, TEXAS
GENERAL CAPITAL PROJECTS
COMPARATIVE BALANCE SHEET
AS OF SEPTEMBER 30, 2006 AND 2005
20062005
ASSETS:
Cash and cash equivalents$2,352,772$63,766
Investments7,015,3816,655,788
Accounts Receivable7,865
TOTAL ASSETS $9,376,018$6,719,554
LIABILITIES AND FUND BALANCES:
Liabilities:
Accounts payable$2,171,105$159,295
Deferred revenue
Due to other funds345,093
Total liabilities2,171,105504,388
Fund Balances:
Reserved for encumbrances4,678,9071,465,671
Reserved for capital projects2,526,0064,749,495
Total fund balances7,204,9136,215,166
TOTAL LIABILITIES AND FUND BALANCES $9,376,018$6,719,554
CITY OF GEORGETOWN, TEXAS
GENERAL CAPITAL PROJECTS
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2006 AND 2005
REVENUES:
Investment earnings $463,086$72,991
Donations
Other18,460110,760
Total revenues481,546183,751
EXPENDITURES:
Capital outlay10,506,2403,812,058
Bond issuance cost
Total expenditures10,506,2403,812,058
DEFICIENCY OF REVENUES
OVER EXPENDITURES(10,024,694)(3,628,307)
OTHER FINANCING SOURCES (USES)
Bond proceeds11,235,0009,030,000
Interest and fiscal charges(200,094)(127,225)
Sale of property 896,113
Tranfers in975,000313,165
Transfers out(995,465)(1,124,326)
Total other financing sources (uses)11,014,4418,987,727
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING (USES)989,7475,359,420
FUND BALANCES, Beginning of period6,215,166855,746
FUND BALANCES, End of period $7,204,913$6,215,166
20062005
CITY OF GEORGETOWN, TEXAS
GENERAL CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006 (WITH COMPARATIVE FOR 2005)
ORIGINAL
BUDGET
FINAL
BUDGET
2006 ACTUAL
BUDGETARY
BASIS
VARIANCE TO
BUDGET
2005 ACTUAL
BUDGETARY
BASIS
REVENUES:
Investment earnings$20,000$20,000$458,325$438,325$65,784
Donations 0
Other110,760173,39018,460(154,930)110,760
Total revenues130,760193,390476,785283,395176,544
EXPENDITURES:
Capital outlay13,555,26315,499,58813,719,9331,779,6554,636,396
Bond issuance cost426,600426,600200,094226,506186,440
Total expenditures13,981,86315,926,18813,920,0272,006,1614,822,836
DEFICIENCY OF REVENUES
OVER EXPENDITURES(13,851,103)(15,732,798)(13,443,242)2,289,556(4,646,292)
OTHER FINANCING SOURCES (USES):
Bond proceeds11,090,60011,450,60011,235,000(215,600)9,030,000
Sale of Property 896,112
Transfers in 975,000975,000323,738
Tranfers out(591,400) (995,465) (995,465) (1,124,327)
Total other financing sources (uses) 10,499,200 11,430,13511,214,535(215,600)9,125,523
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER
EXPENDITURES AND OTHER FINANCING
(USES) - BUDGETARY BASIS(3,351,903)(4,302,663)(2,228,707)2,073,9564,479,231
FUND BALANCES, Beginning of period3,570,346 4,521,106 4,749,495228,389270,264
FUND BALANCES - BUDGETARY BASIS,
End of Period $218,443$218,4432,520,788$2,302,3454,749,495
Adjustments to GAAP:
Reverse voided POs 459
Reverse Mkt to Mkt Adjs 4,759
Reverse current year encumbrances4,678,9071,465,671
FUND BALANCES - GAAP BASIS,
End of period$7,204,913$6,215,166
Combining Financial Statements
Nonmajor Proprietary Funds
Enterprise Funds - The City's utilities are accounted for and operated in a manner similar to private
business enterprises. Each utility, accounted for as an independent entity, is an enterprise fund.
Enterprise fund accounting is used where the intent of the City Council is to finance or recover the costs
of providing goods or services to the general public on a continuing basis primarily through user charges
or when the City Council has decided that periodic determination of net income is appropriate for
accountability purposes.
Airport Fund - used to account for revenues and expenses related to the operation and maintenance of
the City's airport. All activities necessary to provide such services are accounted for in this fund
including, but not limited to, administration, operations, maintenance, financing and related debt
service, billing, collection and capital improvements.
Sanitation Fund - used to account for revenues and expenses relating to the operations of the City's
sanitation contract.
Stormwater Drainage Fund - used to account for revenues and expenses related to the operations,
capital projects, and debt service of the stormwater drainage facilities.
Internal Service Fund - This fund is used to account for services performed by one government
organization or department for others.
Fleet Management Fund - The City uses this fund to purchase and account for all major equipment and
vehicles. Each item is assigned an annual lease value which the leasing department pays to the
Internal Service Fund. The annual lease value is determined by the projected replacement cost divided
by the years of useful life of the item. The payments made by the departments enable the Internal
Service Fund to replace equipment and vehicles on a pre-planned schedule to minimize maintenance
costs and reduce safety risks due to worn out equipment and vehicles. The fund also provides
maintenance for all vehicles through the Vehicle Service Center.
Joint Services Fund - The Joint Services Fund is composed of departments which provide services to
more than one city fund. Charges for services provided are determined by allocating each specific
department's cost to the using fund.
Facilities Maintenance Fund - The City uses this fund to account for janitorial service, light
maintenance, painting, landscape maintenance and roofing and air conditioning repairs for all City
buildings. Each building is assigned an annual maintenance cost, which is paid to the Internal Service
Fund by the occupying departments, based on square footage occupied. The payments made by the
departments enable the Internal Service Fund to provide major and minor facility repairs on a pre-
planned schedule to minimize maintenance costs and provide preventative care to reduce long-term
maintenance and replacement costs.
Information Services Fund - The City uses this fund to account for purchases and maintenance of the
City’s computer systems. Each department pays an annual predetermined lease payment, based upon
the equipment the department has. These payments enable the fund to replace older equipment and
upgrade the City’s computer resources and provide assistance in maintenance of equipment. This fund
also provides for the management of the City’s computer systems through personnel in the Information
Services department.
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
AS OF SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
STORMWATERTOTAL
AIRPORTSANITATIONDRAINAGENONMAJOR
FUND FUND FUND ENTERPRISE FUNDS
ASSETS:
Current Assets:
Cash and cash equivalents$128,729$103,115$231,844
Cash and cash equivalents - Restricted 443,376443,376
Investments628,502503,5531,132,055
Accounts receivable:
Services (net of allowance for uncollectibles)141,855$458,902216,469817,226
Other63,08363,083
Inventories24,32724,327
Total current assets 986,496458,9021,266,5132,711,911
Noncurrent Assets:
Deferred charges - bond issuance costs63,29684,188147,484
Capital assets:
Land and land rights981,500981,500
Distribution system 14,622,48414,622,484
Buildings and improvements7,597,1877,597,187
Machinery, furniture and equipment127,57752,00014,050193,627
Construction in progress589,910124,292714,202
Less accumulated depreciation (4,734,698)(52,000)(1,333,257)(6,119,955)
Total capital assets (net of accumulated depreciation)4,561,47613,427,56917,989,045
Total noncurrent assets 4,624,77213,511,75718,136,529
TOTAL ASSETS $5,611,268$458,902$14,778,270$20,848,440
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$177,719$252,414$20,630$450,763
Compensated absence11,92014,32626,246
Due to other funds422,347422,347
Current portion of long-term debt117,375137,034254,409
Accrued interest 10,98815,22226,210
Total current liabilities 318,002674,761187,2121,179,975
Noncurrent liabilities:
Compensated absence25,86725,05250,919
Long-term debt1,508,4842,502,5414,011,025
Total noncurrent liabilities1,534,3512,527,5934,061,944
Total liabilities 1,852,353674,7612,714,8055,241,919
Net Assets:
Invested in capital assets (net of related debt)2,935,61710,787,99413,723,611
Unrestricted823,298(215,859)1,275,4711,882,910
Total net assets3,758,915(215,859)12,063,46515,606,521
TOTAL LIABILITIES AND NET ASSETS $5,611,268$458,902$14,778,270$20,848,440
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
STORMWATERTOTAL
AIRPORTSANITATIONDRAINAGENONMAJOR
FUND FUND FUND ENTERPRISE FUNDS
OPERATING REVENUES:
Waste $3,397,255 $3,397,255
Other$2,595,764 49,311$1,716,0664,361,141
Total operating revenues2,595,7643,446,5661,716,0667,758,396
OPERATING EXPENSES:
Depreciation402,202 371,715773,917
Utility contracts 3,519,487 3,519,487
Other2,273,172 864,7493,137,921
Total operating expenses2,675,3743,519,4871,236,4647,431,325
NET OPERATING INCOME (LOSS)(79,610)(72,921)479,602327,071
NONOPERATING REVENUES (EXPENSES):
Investment earnings31,70141,35373,054
Donations and grants389,988 389,988
Interest and fiscal charges(78,574)(133,803)(212,377)
Other52,0318,50060,531
Total nonoperating revenues (expenses)395,146 (83,950)311,196
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS315,536(72,921)395,652638,267
CONTRIBUTIONS AND TRANSFERS:
Capital contributions 4,508,7184,508,718
Transfer in562 562
Transfers out (275,474)(137,102)(412,576)
Total contributions and transfers 562(275,474)4,371,6164,096,704
CHANGE IN NET ASSETS316,098(348,395)4,767,2684,734,971
TOTAL NET ASSETS - beginning3,442,817132,5367,296,19710,871,550
TOTAL NET ASSETS - ending $3,758,915$(215,859)$12,063,465$15,606,521
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
STORMWATERTOTAL
AIRPORTSANITATIONDRAINAGENONMAJOR
FUND FUND FUND ENTERPRISE FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers$2,678,480$3,408,211$1,711,337$7,798,028
Payments to suppliers(2,055,510)(3,438,111)(602,974)(6,096,595)
Franchise fees (62,612)(31,082)(93,694)
Payments to employees for services(224,793)(240,025)(464,818)
Net cash provided by (used for) operating activities398,177(92,512)837,2561,142,921
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 562562
Transfers out (275,474)(137,102)(412,576)
Payments from (to) other funds 367,986367,986
Net cash provided by (used for) noncapital
financing activities 56292,512(137,102)(44,028)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITES:
Acquisition of capital assets(456,414)(249,067)(705,481)
Donations and grants389,988389,988
Principal paid on revenue and certificates of obligation bonds(113,680)(130,272)(243,952)
Interest paid on revenue and certificates of obligation bonds(74,306)(127,663)(201,969)
Net cash used for capital and related
financing activities(254,412)(507,002)(761,414)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received31,70141,35373,054
Change in temporary investments(180,976)(202,538)(383,514)
Net cash provided by (used for) investing activities (149,275)(161,185)(310,460)
Net increase (decrease) in cash and cash equivalents(4,948)31,96727,019
Cash and cash equivalents at beginning of year133,677514,524648,201
Cash and cash equivalents at end of year 128,729 546,491 675,220
Classified as:
Current assets128,729103,115231,844
Restricted assets 443,376443,376
Total $128,729 $$546,491 $675,220
Non-cash disclosure
Developer contributions $4,508,718$4,508,718
(continued)
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
NONMAJOR ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
Business-type Activities
Enterprise Funds
STORMWATERTOTAL
AIRPORTSANITATIONDRAINAGENONMAJOR
FUND FUND FUND ENTERPRISE FUNDS
OPERATING INCOME (LOSS)$(79,610)$(72,921)$479,602$327,071
Adjustments to reconcile operating income (loss) to
cash provided by (used in) operating activities:
Depreciation402,202371,715773,917
Other income52,0318,50060,531
Bad debt expense 8462931,139
Decrease (increase) in inventories19,06319,063
Decrease (increase) in accounts receivable30,685(39,201)(13,522)(22,038)
Increase (decrease) in accounts payable(25,579)18,764(6,150)(12,965)
Increase (decrease) in compensated absences payable(615)(3,182)(3,797)
Net cash provided by (used in) operating activities$398,177$(92,512)$837,256$1,142,921
INTERNAL SERVICE FUNDS
AS OF SEPTEMBER 30, 2006
JOINT
SERVICESTOTALS
FUND 2006
ASSETS:
Current:
Cash and cash equivalents$104,155$62,775$17,227$35,491$219,648
Investments508,522306,48984,111173,2821,072,404
Prepaid expense8102,4963,306
Accounts receivable391132,626133,017
Inventories255,592255,592
Total current assets613,068758,292103,834208,7731,683,967
Property and equipment:
Land and land rights214,065214,065
Buildings and improvements38,145813,681428,0601,279,886
Machinery, furniture and equipment 11,910,5331,013,867393,0042,098,77315,416,177
Total property and equipment cost 11,948,6782,041,613821,0642,098,77316,910,128
Less accumulated depreciation(6,282,183)(1,797,512)(518,873)(1,502,944)(10,101,512)
Net property and equipment 5,666,495244,101302,191595,8296,808,616
TOTAL ASSETS $6,279,563$1,002,393$406,025$804,602$8,492,583
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$25,910$511,927$31,518$58,043$627,398
Compensated absence6,14716,53425,72648,407
Total current liabilities32,057511,92748,05283,769675,805
Long term liabilities:
Compensated absence10,09937,26350,34397,705
Total liabilities42,156511,92785,315134,112773,510
Net Assets:
Invested in capital assets (net of related debt)5,666,495244,101302,191143,7196,356,506
Unrestricted570,912246,36518,519526,7711,362,567
Total net assets6,237,407490,466320,710670,4907,719,073
TOTAL LIABILITIES AND NET ASSETS $6,279,563$1,002,393$406,025$804,602$8,492,583
FUND FUND
FACILITIES
MAINTENANCE
FUND
CITY OF GEORGETOWN, TEXAS
INFORMATION
SERVICES
FLEET
MANAGEMENT
COMBINING STATEMENT OF NET ASSETS
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
FLEETJOINTFACILITIESINFORMATION
MANAGEMENT SERVICESMAINTENANCE SERVICES
FUND FUND FUND FUND 2006
OPERATING REVENUES - Charges for services $1,228,179$5,454,437$877,046$1,436,749$8,996,411
OPERATING EXPENSES:
Administration 808,110808,110
Accounting 550,245550,245
City wide HR services398,654398,654
Customer service 129,168129,168
Economic development administration355,441355,441
Employee and organizational services390,569390,569
Facilities maintenance contracts 461,146461,146
Facilities maintenance services 369,226369,226
Finance and administration419,311419,311
Fleet management operations248,509248,509
Information resources 752,462752,462
Information resources capital replacement & contracts 985,305985,305
Joint services contracts579,175579,175
Legal services 428,421428,421
Purchasing and properties329,871329,871
Service center648,574648,574
Systems engineering675,549675,549
Utility office 853,907853,907
Depreciation1,075,4997,20458,454105,7771,246,934
Total operating expenses 1,972,5825,925,625888,8261,843,54410,630,577
NET OPERATING INCOME (LOSS)(744,403)(471,188)(11,780)(406,795)(1,634,166)
NONOPERATING REVENUES (EXPENSES):
Investment earnings41,30428,96018,88923,377112,530
Loss on sale of assets(449,932)(449,932)
Other99,360121,61954,692275,671
Total nonoperating revenues (expenses)(309,268)150,57918,88978,069(61,731)
INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (1,053,671)(320,609)7,109(328,726)(1,695,897)
CONTRIBUTIONS AND TRANSFERS:
Capital contributions146,440146,440
Transfers in940,934380,000277381,4711,702,682
Transfers out(2,195)(77,400)(1,400)(31,946)(112,941)
Total contributions and transfers1,085,179302,600(1,123)349,5251,736,181
CHANGE IN NET ASSETS 31,508(18,009)5,98620,79940,284
NET ASSETS, Beginning of period6,205,899508,475314,724649,6917,678,789
NET ASSETS, End of period $6,237,407$490,466$320,710$670,490$7,719,073
TOTAL
CITY OF GEORGETOWN, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2006
FLEETJOINTFACILITIESINFORMATION
MANAGEMENTSERVICESMAINTENANCESERVICESTOTALS
FUND FUND FUND FUND 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Department contributions$1,229,325$5,415,924$877,046$1,436,749$8,959,044
Payments to suppliers(555,266)(2,283,320)(481,287)(1,043,195)(4,363,068)
Payments to employees for services(256,834)(3,405,736)(290,827)(626,988)(4,580,385)
Net cash provided by (used for) operating activities 417,225(273,132)104,932(233,434)15,591
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in940,934380,000277381,4711,702,682
Transfers out(2,195)(77,400)(1,400)(31,946)(112,941)
Net cash provided by (used for) noncapital
financing activities 938,739302,600(1,123)349,5251,589,741
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITES:
Acquisition of capital assets(1,476,645)(81,056)(50,863)(1,608,564)
Net cash provided by (used for) capital and related
financing activities (1,476,645)(81,056)(50,863)(1,608,564)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received41,30428,96018,88923,377112,530
Change in temporary investments24,360(67,145)(38,145)(80,753)(161,683)
Net cash provided by (used for) investing activities 65,664(38,185)(19,256)(57,376)(49,153)
Net increase (decrease) in cash (55,017)(8,717)3,4977,852(52,385)
Cash and cash equivalents at beginning of year159,17371,49213,73027,639272,034
Cash and cash equivalents at end of year 104,156 62,775 17,227 35,491 219,649
Classified as:
Current assets104,15562,77517,22735,491219,648
Total $104,155 $62,775 $17,227 $35,491 $219,648
Non-cash disclosure
Equity transfer$146,440 $146,440
(continued)
CITY OF GEORGETOWN, TEXAS
STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS (CONTINUED)
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006
FLEETJOINTFACILITIESINFORMATION
MANAGEMENTSERVICESMAINTENANCESERVICES
FUND FUND FUND FUND 2006
OPERATING INCOME (LOSS)$(744,403)$(471,188)$(11,780)$(406,795)$(1,634,166)
Adjustments to reconcile operating income (loss) to
cash provided by (used in) operating activities:
Depreciation1,075,4997,20458,454105,7771,246,934
Other income99,360121,61954,692275,671
Decrease (increase) in prepaid expenses91110,68311,594
Decrease (increase) in inventories(477)(477)
Decrease (increase) in accounts receivable1,146(38,513)(37,367)
Increase (decrease) in accounts payable460107,31216,4644,973129,209
Increase (decrease) in compensated absences payable(14,837)41,794(2,764)24,193
Net cash provided by (used for) operating activities $417,225 $(273,132)$104,932 $(233,434)$15,591
TOTALS
Supplementary Individual Fund
Financial Statements – Enterprise Funds
These supplementary statements are included to provide management additional information for
financial analysis.
CITY OF GEORGETOWN, TEXAS
ELECTRIC FUND
COMPARATIVE STATEMENTS OF NET ASSETS
AS OF SEPTEMBER 30, 2006 and 2005
TOTALS
2006 2005
ASSETS:
Current Assets:
Cash and cash equivalents$941,256
Cash and cash equivalents - restricted$142,735170,471
Investments5,592,7093,146,334
Investments - restricted696,878570,708
Accounts receivable:
Services (net of allowance for uncollectibles)6,916,5945,895,679
Other1,812,37929,930
Inventories3,483,8891,311,648
Total current assets 18,645,18412,066,026
Noncurrent Assets:
Long-term note receivables166
Deferred charges - bond issuance costs487,243283,086
Total noncurrent assets 487,243283,252
Property and Equipment:
Land and land rights193,735193,735
Distribution system54,766,86748,232,974
Buildings and improvements73,70773,707
Machinery, furniture and equipment536,096536,096
Construction in progress3,530,665486,677
Total cost property and equipment 59,101,07049,523,189
Less accumulated depreciation (18,597,632)(16,423,792)
Net property and equipment 40,503,43833,099,397
TOTAL ASSETS $59,635,865$45,448,675
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$5,424,270$4,049,110
Compensated absence95,30187,532
Due to other funds355,980
Current portion of long-term debt948,801782,264
Accrued interest 116,65058,443
Total current liabilities payable from unrestricted assets 6,941,0024,977,349
Current liabilities payable from restricted assets:
Customer deposits839,611741,179
Total current liabilities payable from restricted assets 839,611741,179
Total current liabilities 7,780,6135,718,528
Long term liabilities:
Compensated absence173,255169,506
Long-term debt16,859,9919,085,772
Total noncurrent liabilities 17,033,2469,255,278
Total liabilities 24,813,85914,973,806
Net Assets:
Invested in capital assets (net of related debt)22,694,64623,231,361
Unrestricted12,127,3607,243,508
Total net assets 34,822,00630,474,869
TOTAL LIABILITIES AND NET ASSETS $59,635,865$45,448,675
CITY OF GEORGETOWN, TEXAS
ELECTRIC FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
2006 2005
OPERATING REVENUES:
Electric services$41,338,196$33,800,761
Other:
Penalties 374,810340,808
Connection and hookup fees813,722860,469
Total other 1,188,5321,201,277
TOTAL OPERATING REVENUES42,526,72835,002,038
OPERATING EXPENSES:
Electric operations:
Personnel 1,639,8001,375,116
Operations 1,720,6671,346,391
Total electric operations3,360,4672,721,507
Depreciation 2,173,8412,035,077
Electric contracts 31,816,74423,790,696
TOTAL OPERATING EXPENSES 37,351,05228,547,280
NET OPERATING INCOME 5,175,6766,454,758
NONOPERATING REVENUES (EXPENSES):
Investment earnings 260,000131,732
Interest and fiscal charges(515,801)(479,195)
Other 2,322,473599,703
Total nonoperating revenues (expenses) 2,066,672252,240
INCOME BEFORE CONTRIBUTIONS AND TRANSFERS7,242,3486,706,998
CONTRIBUTIONS AND TRANSFERS:
Capital contributions 1,030,107788,434
Transfers out (3,925,318)(2,938,894)
Total contributions and transfers (2,895,211)(2,150,460)
CHANGE IN NET ASSETS4,347,1374,556,538
NET ASSETS, Beginning of period30,474,86925,918,331
NET ASSETS, End of period $34,822,006$30,474,869
CITY OF GEORGETOWN, TEXAS
WATER SERVICES FUND
COMPARATIVE STATEMENTS OF NET ASSETS
AS OF SEPTEMBER 30, 2006 and 2005
TOTALS
2006 2005
ASSETS:
Current Assets:
Cash and cash equivalents$3,561,023$2,814,333
Cash and cash equivalents - restricted104,5783,758,565
Investments12,336,0967,750,322
Investments - restricted510,585253,869
Prepaid expenses1,548,0851,352,076
Accounts receivable:
Services (net of allowance for uncollectibles)3,209,7022,859,453
Due from other funds895,647415,360
Total current assets 22,165,71619,203,978
Noncurrent Assets:
Long-term note receivables2,928,1777,726,649
Deferred charges - bond issuance costs897,498923,909
Total noncurrent assets 3,825,6758,650,558
Property and Equipment:
Land and land rights469,354469,354
Distribution system125,998,522110,834,055
Buildings and improvements3,019,7943,019,794
Machinery, furniture and equipment236,382236,382
Construction in progress5,939,4705,035,060
Total cost property and equipment 135,663,522119,594,645
Less accumulated depreciation (26,586,449)(23,588,226)
Net property and equipment 109,077,07396,006,419
TOTAL ASSETS $135,068,464$123,860,955
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$631,453$881,851
Compensated absence69,62664,929
Current portion of long-term debt2,176,1982,221,749
Accrued interest 158,992173,332
Total current liabilities payable from unrestricted assets 3,036,2693,341,861
Current liabilities payable from restricted assets:
Construction contracts and retainages payable306,684361,254
Total current liabilities payable from restricted assets 306,684361,254
Total current liabilities 3,342,9533,703,115
Long term liabilities:
Compensated absence131,105128,220
Unearned revenue2,372,2882,675,542
Long-term debt25,900,01027,974,228
Total noncurrent liabilities 28,403,40330,777,990
Total liabilities 31,746,35634,481,105
Net Assets:
Invested in capital assets (net of related debt)81,000,86565,810,442
Restricted for:
Future construction5,389,0631,251,844
Unrestricted16,932,18022,317,564
Total net assets 103,322,10889,379,850
TOTAL LIABILITIES AND NET ASSETS $135,068,464$123,860,955
CITY OF GEORGETOWN, TEXAS
WATER SERVICES FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
2006 2005
OPERATING REVENUES:
Water/Irrigation:
Water services$11,916,401$9,838,920
Wastewater services6,261,2625,696,858
Irrigation services283,474249,543
Water/Wastewater tap fees1,248,422820,087
Total water/irrigation19,709,55916,605,408
Other:
Penalties 197,277195,010
Connection and hookup fees90,92082,890
Service fees320,847163,421
Total other 609,044441,321
TOTAL OPERATING REVENUES20,318,60317,046,729
OPERATING EXPENSES:
Water services distribution:
Personnel1,220,5111,065,783
Operations1,972,3281,882,092
Total water services distribution3,192,8392,947,875
Depreciation2,998,2232,681,160
Water services plant management3,154,9312,719,194
Water services contracts4,831,0454,490,378
TOTAL OPERATING EXPENSES 14,177,03812,838,607
NET OPERATING INCOME 6,141,5654,208,122
NONOPERATING REVENUES (EXPENSES):
Investment earnings 1,340,113573,386
Interest and fiscal charges(1,491,023)(1,396,256)
Gain on disposed asset 160,949
Other 1,555,9381,495,889
Total nonoperating revenue (expenses) 1,405,028833,968
INCOME BEFORE CONTRIBUTIONS
AND TRANSFERS 7,546,5935,042,090
CONTRIBUTIONS AND TRANSFERS:
Capital contributions8,288,4812,786,128
Transfers in 10,376
Transfers out(1,903,192)(1,905,618)
Total contributions and transfers6,395,665880,510
CHANGE IN NET ASSETS13,942,2585,922,600
NET ASSETS, Beginning of period89,379,85083,457,250
NET ASSETS, End of period $103,322,108$89,379,850
CITY OF GEORGETOWN, TEXAS
AIRPORT FUND
COMPARATIVE STATEMENTS OF NET ASSETS
AS OF SEPTEMBER 30, 2006 and 2005
TOTALS
2006 2005
ASSETS:
Current Assets:
Cash and cash equivalents$128,729$133,677
Investments628,502447,527
Accounts receivable:
Services (net of allowance for uncollectibles)141,855153,644
Other63,08381,979
Inventories24,32743,390
Total current assets 986,496860,217
Noncurrent Assets:
Deferred charges - bond issuance costs63,29668,165
Total noncurrent assets63,29668,165
Property and Equipment:
Land and land rights981,500981,500
Buildings and improvements7,597,1877,597,187
Machinery, furniture and equipment127,577127,577
Construction in progress589,910133,496
Total cost property and equipment 9,296,1748,839,760
Less accumulated depreciation (4,734,698)(4,332,497)
Net property and equipment 4,561,4764,507,263
TOTAL ASSETS $5,611,268$5,435,645
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$177,719$203,298
Compensated absence11,92012,088
Current portion of long-term debt117,375113,680
Accrued interest 10,98811,589
Total current liabilities 318,002340,655
Long term liabilities:
Compensated absence25,86726,314
Long-term debt1,508,4841,625,859
Total noncurrent liabilities 1,534,3511,652,173
Total liabilities1,852,3531,992,828
Net Assets:
Invested in capital assets (net of related debt)2,935,6172,767,724
Unrestricted823,298675,093
Total net assets3,758,9153,442,817
TOTAL LIABILITIES AND NET ASSETS $5,611,268$5,435,645
CITY OF GEORGETOWN, TEXAS
AIRPORT FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
2006 2005
OPERATING REVENUES:
Fuel sales $2,136,173$1,898,554
Contract leases 139,656137,232
Hangar/tiedown rental fees 315,929313,145
Terminal sales 4,0063,163
TOTAL OPERATING REVENUES2,595,7642,352,094
OPERATING EXPENSES:
Administration:
Personnel 224,178206,773
Operations 2,047,0941,800,591
Capital 1,90088,641
Total administration 2,273,1722,096,005
Depreciation 402,202429,491
TOTAL OPERATING EXPENSES2,675,3742,525,496
NET OPERATING LOSS(79,610)(173,402)
NONOPERATING REVENUES (EXPENSES)
Investment earnings 31,70113,024
Interest and fiscal charges(78,574)(80,773)
Donations and grants 389,988134,358
Other 52,03163,807
Total nonoperating revenues (expenses)395,146130,416
TRANSFERS:
Transfers in 562
Total transfers 562
CHANGE IN NET ASSETS316,098(42,986)
NET ASSETS, Beginning of period 3,442,8173,485,803
NET ASSETS, End of period $3,758,915$3,442,817
CITY OF GEORGETOWN, TEXAS
SANITATION FUND
COMPARATIVE STATEMENTS OF NET ASSETS
AS OF SEPTEMBER 30, 2006 and 2005
TOTALS
2006 2005
ASSETS:
Current Assets:
Accounts receivable:
Services (net of allowance for uncollectibles)$458,902$420,547
Total current assets 458,902420,547
Property and Equipment:
Machinery, furniture and equipment52,00052,000
Total cost property and equipment 52,00052,000
Less accumulated depreciation (52,000)(52,000)
Net property and equipment
TOTAL ASSETS $458,902$420,547
LIABILITIES AND NET ASSETS:Liabilities:
Current liabilities:
Accounts payable$252,414$233,650
Due to other funds422,34754,361
Total current liabilities 674,761288,011
Net Assets:
Unrestricted(215,859)132,536
Total net assets(215,859)132,536
TOTAL LIABILITIES AND NET ASSETS $458,902$420,547
CITY OF GEORGETOWN, TEXAS
SANITATION FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
2006 2005
OPERATING REVENUES:
Sanitation:
Sanitation services$3,397,255$3,150,493
Total sanitation3,397,2553,150,493
Other:
Penalties 34,08235,939
Connection and hookup fees15,22915,714
Other 25,124
Total other 49,31176,777
TOTAL OPERATING REVENUES3,446,5663,227,270
OPERATING EXPENSES:
Sanitation contracts 3,519,4872,868,758
TOTAL OPERATING EXPENSES 3,519,4872,868,758
NET OPERATING INCOME (LOSS)(72,921)358,512
INCOME (LOSS) BEFORE TRANSFERS(72,921)358,512
TRANSFERS (OUT):
Transfers out(275,474)(256,182)
Total transfers (out)(275,474)(256,182)
CHANGE IN NET ASSETS(348,395)102,330
NET ASSETS, Beginning of period132,53630,206
NET ASSETS, End of period $(215,859)$132,536
CITY OF GEORGETOWN, TEXAS
STORMWATER DRAINAGE FUND
COMPARATIVE STATEMENTS OF NET ASSETS
AS OF SEPTEMBER 30, 2006 and 2005
TOTALS
2006 2005
ASSETS:
Current Assets:
Cash and cash equivalents$103,115$89,914
Cash and cash equivalents - restricted443,376424,610
Investments503,553301,014
Accounts receivable:
Services (net of allowance for uncollectibles)216,469203,240
Total current assets 1,266,5131,018,778
Noncurrent Assets:
Deferred charges - bond issuance costs84,18891,000
Total noncurrent assets84,18891,000
Property and Equipment:
Distribution system14,622,4849,923,366
Machinery, furniture and equipment14,05014,050
Construction in progress124,29265,625
Total cost property and equipment 14,760,82610,003,041
Less accumulated depreciation (1,333,257)(961,542)
Net property and equipment 13,427,5699,041,499
TOTAL ASSETS $14,778,270$10,151,277
LIABILITIES AND NET ASSETS:
Liabilities:
Current liabilities:
Accounts payable$20,630$26,780
Compensated absence14,32614,344
Current portion of long-term debt137,034130,272
Accrued interest 15,22215,893
Total current liabilities 187,212187,289
Long term liabilities:
Compensated absence25,05228,216
Long-term debt2,502,5412,639,575
Total noncurrent liabilities 2,527,5932,667,791
Total liabilities2,714,8052,855,080
Net Assets:
Invested in capital assets (net of related debt)10,787,9946,271,652
Unrestricted1,275,4711,024,545
Total net assets12,063,4657,296,197
TOTAL LIABILITIES AND NET ASSETS $14,778,270$10,151,277
CITY OF GEORGETOWN, TEXAS
STORMWATER DRAINAGE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEARS ENDED SEPTEMBER 30, 2006 AND 2005
2006 2005
OPERATING REVENUES:
Stormwater drainage fees$1,694,272$1,551,823
Other:
Penalties14,34213,383
Service fees7,4527,648
Total other21,79421,031
TOTAL OPERATING REVENUES1,716,0661,572,854
OPERATING EXPENSES:
Stormwater drainage:
Personnel236,843231,224
Operations627,906576,127
Total stormwater drainage864,749807,351
Depreciation371,715279,760
TOTAL OPERATING EXPENSES 1,236,4641,087,111
NET OPERATING INCOME479,602485,743
NONOPERATING REVENUES (EXPENSES):
Investment earnings41,35314,319
Interest and fiscal charges(133,803)(129,108)
Other 8,500
Total nonoperating revenue (expenses) (83,950)(114,789)
INCOME BEFORE CONTRIBUTIONS AND TRANSFERS395,652370,954
CONTRIBUTIONS AND TRANSFERS:
Capital contributions4,508,7181,785,871
Transfers out(137,102)(119,369)
Total contributions and transfers4,371,6161,666,502
CHANGE IN NET ASSETS4,767,2682,037,456
NET ASSETS, Beginning of period 7,296,1975,258,741
NET ASSETS, End of period $12,063,465$7,296,197
Agency Funds
Statement of Changes in Assets and Liabilities
The Agency Fund is used to account for assets and liabilities held by the City acting as an agent for
others.
Cafeteria Plan-Flexible Spending - to account for the City’s Internal Revenue Code Section 125
Cafeteria Plan for employees.
Public Improvement Districts (PID) -
to account for the receipt of the revenue collected from property assessments paid by Cimarron
Hills residents to fund the infrastructure of the new development. The City acts as an agent for
the collection of the assessments and then sends the revenue to an Escrow Agent for Cimarron
Hills.
to account for the receipt of the revenue collected from property assessments paid by property
owners in the Shell Road Public Improvement District. The City acts as an agent for the creation
of the PID and collection of the assessments and then sends the revenue to Williamson County,
who provided the initial up-front costs for road construction.
Texas Capital Fund Repayments - to account for the lease payments received from businesses who
have benefited from the Texas Capital Fund economic development grants and the corresponding
payments to the state to repay the grants. Reedholm Instruments, Inc., Xycarb Ceramics, and USA
Schunk Quartz, Inc., are the businesses currently in the repayment/lease mode for these grants.
CITY OF GEORGETOWN, TEXAS
AGENCY FUNDS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30, 2006
BALANCE BALANCE
OCTOBER 1,SEPTEMBER 30,
2005 ADDITIONSDEDUCTIONS 2006
Cafeteria Plan-Flex Spending:
ASSETS:
Cash and cash equivalents$11,513$157,258$147,052$21,719
TOTAL ASSETS $11,513$157,258$147,052$21,719
LIABILITIES:
Accounts payable$11,513$157,258$147,052$21,719
TOTAL LIABILITIES $11,513 $157,258 $147,052 $21,719
Public Improvement Districts:
ASSETS:
Cash and cash equivalents$14,273$286,460$266,837$33,896
Accounts receivable381,7176,6031,163387,157
TOTAL ASSETS $395,990$293,063$268,000$421,053
LIABILITIES:
Accounts payable$17,868$293,063$268,000$42,931
Due to other governments378,122378,122
TOTAL LIABILITIES $395,990$293,063$268,000$421,053
Texas Capital Fund Repayments:
ASSETS:
Accounts receivable$842,106$$69,590$772,516
TOTAL ASSETS $842,106$$69,590$772,516
LIABILITIES:
Due to other governments$842,106$$69,590$772,516
TOTAL LIABILITIES $842,106$$69,590$772,516
TOTAL AGENCY FUNDS
ASSETS:
Cash and cash equivalents$25,786$443,718$413,889$55,615
Accounts receivable1,223,8236,60370,7531,159,673
TOTAL ASSETS $1,249,609$450,321$484,642$1,215,288
LIABILITIES:
Accounts payable$29,381$450,321$415,052$64,650
Due to other governments1,220,22869,5901,150,638
TOTAL LIABILITIES $1,249,609$450,321$484,642$1,215,288
Discretely Presented Component Units
Fund Based Financial Statements
CITY OF GEORGETOWN, TEXAS
COMPARATIVE BALANCE SHEETS
AS OF SEPTEMBER 30, 2006 AND 2005
20062005
ASSETS:
Cash and cash equivalents$103,129$
Investments503,514
Accounts receivable:
Sales Tax131,172
TOTAL ASSETS $737,815$
LIABILITIES AND FUND BALANCE
Fund Balance:
Reserved for:
Capital projects737,815
Total fund balance737,815
TOTAL LIABILITIES AND FUND BALANCE $737,815$
ECONOMIC DEVELOPMENT SALES TAX - Discretely presented component unit
CITY OF GEORGETOWN, TEXAS
ECONOMIC DEVELOPMENT SALES TAX - Discretely presented component unit
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2006 AND 2005
20062005
REVENUES:
Sales tax$760,125$
Investment earnings12,870
Total revenues 772,995
EXPENDITURES:
Operating35,180
Total expenditures35,180
EXCESS OF REVENUES OVER EXPENDITURES737,815
FUND BALANCES, Beginning of period
FUND BALANCES, End of period $737,815$
CITY OF GEORGETOWN, TEXAS
ECONOMIC DEVELOPMENT SALES TAX - Discretely presented component unit
SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) -
BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS
FISCAL YEAR ENDED SEPTEMBER 30, 2006 (WITH COMPARATIVE FOR 2005)
ORIGINAL
BUDGET
FINAL
BUDGET
2006
ACTUAL
BUDGETARY
BASIS
VARIANCE
TO
BUDGET
2005 ACTUAL
BUDGETARY
BASIS
REVENUES:
Sales tax$651,406$651,406$760,125$108,719$
Investment earnings19,93912,731(7,208)
Total revenues 651,406671,345772,856101,511
EXPENDITURES:
Operations36,88035,1801,700
Capital outlay651,406435,000435,000
Total expenditures 651,406471,88035,180436,700
EXCESS OF REVENUES OVER
EXPENDITURES 199,465737,676538,211
FUND BALANCES, Beginning of period
FUND BALANCES - BUDGETARY BASIS
End of period$$199,465737,676$538,211
Adjustments to GAAP:
Record net unrealized loss on investment139
FUND BALANCES - GAAP BASIS
End of period$737,815$
Capital Assets Used in the Operation of Governmental Funds
CITY OF GEORGETOWN, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULES BY SOURCE
SEPTEMBER 30, 2006 and 2005
20062005
GOVERNMENTAL FUNDS CAPITAL ASSETS
Land $3,828,506$3,828,506
Buildings 20,810,53620,810,536
Improvements 124,283,860117,433,899
Machinery, furniture and equipment2,226,7841,871,427
Construction in progress 23,495,95710,221,212
TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS $174,645,643$154,165,580
INVESTMENT IN GOVERNMENTAL FUNDS CAPITAL ASSETS
General Fund $6,496,610$6,394,789
Capital Projects Funds:
General obligation bonds and certificates of obligation54,659,94041,415,958
State grant 200,000200,000
Other 102,610,61595,497,640
Special Revenue Funds:
Federal grant 2,265,5062,265,506
Other 2,232,5842,211,298
State grant 2,351,9752,351,975
Transfer from proprietary fund 1,851,9751,851,975
Acquisitions prior to August 31, 1985 - source
undetermined 1,976,4391,976,439
TOTAL INVESTMENT IN GOVERNMENTAL FUNDS CAPITAL ASSETS $174,645,643$154,165,580
CITY OF GEORGETOWN, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2006
LANDBUILDINGSIMPROVEMENTSEQUIPMENT
CONSTRUCTION
IN PROGRESS TOTAL
FUNCTION AND ACTIVITY
Culture-recreation
Library$1,292,711 $61,340 $275,549 $$1,629,600
Parks administration639,193 1,779,127 37,909 2,456,229
Parks maintenance$743,579 5,985 2,370,389 214,014 3,333,967 Recreation 118,456 175,080 293,536
Total culture-recreation 743,579 1,937,888 4,329,313 702,552 7,713,332
Development
Planning administration21,995 65,279 87,275
Current planning 25,000 25,000
Long range planning 9,212 9,212
Inspections 29,206 29,206
Total development 21,995 128,697 150,693
Economic development
Administration 25,000 5,489 30,488
Total economic development 25,000 5,489 30,488
Fire
Administation 13,615 24,021 37,636
Operations367,101 142,724 241,408 751,233
Total fire 367,101 156,339 265,429 788,869
General Government
City council593,084 784,722 146,832 107,998 1,632,636
City manager's office296,852 15,592 23,621 336,065
Facilities223,810 9,677,592 539,600 33,929 10,474,931
General government479,964 7,190,181 3,585,185 219,023 11,474,353
Total general government 1,593,710 17,652,494 4,287,209 384,570 23,917,985
Highways and streets
Bridges 6,539,783 6,539,783 Streets 106,716,428 231,164 106,947,592
Streets capital improvements1,491,217 1,735,713 253,106 3,480,036
Total highways and streets 1,491,217 114,991,924 484,270 116,967,411
Police
Administration65,521 466,829 75,632 607,982
Support services bureau 38,840 38,840
Field operations bureau 46,035 46,035 Animal services787,531 5,250 81,669 874,449
Municipal court 13,602 13,602 Total police 853,052 472,079 255,777 1,580,908
TOTAL CAPITAL ASSETS 3,828,506 20,810,536 124,283,860 2,226,784 151,149,685
CONSTRUCTION IN PROGRESS 23,495,957 23,495,957
23,495,957 23,495,957
TOTAL GOVERNMENTAL
FUNDS CAPITAL ASSETS $3,828,506 $20,810,536 $124,283,860 $2,226,784 $23,495,957 $174,645,642
This schedule presents only the capital asset balances related to governmental funds. Accordingly, the
capital assets related to internal service funds are excluded from the above amounts.
CITY OF GEORGETOWN, TEXAS
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 2006
BALANCE
10/1/2005 ADDITIONS DELETIONS
BALANCE
9/30/2006
FUNCTION AND ACTIVITY
Culture-recreation
Library$1,629,600 $1,629,600
Parks administration2,432,903 $23,326 2,456,229
Parks maintenance3,314,101 19,866 3,333,967
Recreation51,427 242,109 293,536
Total culture-recreation 7,428,031 285,301 7,713,332
Development
Planning administration87,275 87,275
Current planning25,000 25,000
Long range planning9,212 9,212
Inspections29,206 29,206
Total development 150,693 150,693
Economic development
Administration30,488 30,489
Total economic development 30,488 30,489
Fire
Administation28,505 9,131 37,636
Operations751,233 751,233
Total fire 779,738 9,131 788,869
General Government
City council1,632,636 1,632,636
City manager's office336,065 336,065
Facilities10,439,632 35,299 10,474,931
General government11,474,353 11,474,353
Total general government 23,882,686 35,299 23,917,985
Highways and streets
Bridges6,539,783 6,539,783
Streets100,190,780 6,792,484 106,983,264
Streets capital improvements3,408,693 35,671 3,444,364
Total highways and streets 110,139,256 6,828,155 116,967,411
Police
Administration576,682 31,300 607,982
Support services bureau38,840 38,840
Field operations bureau46,035 46,035
Animal services863,584 10,865 874,449
Municipal court8,334 5,268 13,602
Total police 1,533,475 47,433 1,580,908
TOTAL CAPITAL ASSETS 143,944,368 7,205,318 151,149,686
CONSTRUCTION IN PROGRESS 10,221,212 14,712,692 $(1,437,946) 23,495,957
10,221,212 14,712,692 (1,437,946) 23,495,957
TOTAL GOVERNMENTAL
FUNDS CAPITAL ASSETS $154,165,580 $21,918,009 $(1,437,946) $174,645,643
This schedule presents only the capital asset balances related to governmental funds. Accordingly, the
capital assets related to internal service funds are excluded from the above amounts.
Statistical Section
This part of the City of Georgetown’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:
Financial Trend......................................................................................................................135
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..................................................................................................................142
These schedules contain information to help the reader assess the government’s
most significant local revenue source, the property tax.
Debt Capacity........................................................................................................................152
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...............................................................................162
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............................................................................................................166
These schedules contain service and infrastructure data to help the reader
understand how the information in the government’s financial report related
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 financial reports for the relevant year. The City implemented Statement
34 in 2003; schedules presenting government-wide information include information beginning in
that year.
CITY OF GEORGETOWN, TEXAS
NET ASSETS BY COMPONENT
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2006200520042003
Governmental activities
Invested in capital assets, net of related debt122,268,551$ 107,692,319$ 96,516,068$ 102,199,237$
Restricted18,254,529 16,836,756 12,067,284 5,073,123
Unrestricted6,567,654 9,833,977 7,169,828 6,886,592
Total governmental activities net assets147,090,734$ 134,363,052$ 115,753,180$ 114,158,952$
Business-type activities
Invested in capital assets, net of related debt117,419,122$ 98,081,179$ 88,000,994$ 74,920,347$
Restricted5,389,063 1,251,844 389,312 844,225
Unrestricted30,942,450 31,393,246 29,760,025 28,239,895
Total business-type activities net assets153,750,635$ 130,726,269$ 118,150,331$ 104,004,467$
Primary government
Invested in capital assets, net of related debt239,687,673$ 205,773,498$ 184,517,062$ 177,119,584$
Restricted23,643,592 18,088,600 12,456,596 5,917,348
Unrestricted37,510,104 41,227,223 36,929,853 35,126,487
Total primary government net assets300,841,369$ 265,089,321$ 233,903,511$ 218,163,419$
Source: Audited Financial Statements of City of Georgetown.
CITY OF GEORGETOWN, TEXAS
CHANGES IN NET ASSETS
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2006200520042003
Expenses
Governmental activities:
Culture-recreation5,649,191$ 4,701,552$ 4,773,059$ 4,165,382$
Development2,325,761 2,061,017 1,956,243 1,607,886
Fire4,397,108 3,767,816 3,862,168 3,611,523
General government3,671,786 4,405,436 4,005,079 3,715,369
Police7,392,816 5,961,731 5,833,644 5,476,245
Streets3,757,919 1,522,161 2,752,225 3,267,717
Interest on long-term debt2,010,409 2,256,135 1,253,934 1,241,202
Total governmental activities expenses29,204,990 24,675,848 24,436,352 23,085,324
Business-type activities
Airport2,753,948 2,606,270 1,962,826 1,773,928
Electric37,866,853 29,026,475 26,237,073 23,957,507
Sanitation3,519,487 2,868,758 2,740,495 2,577,159
Stormwater1,370,267 1,216,219 986,876 841,591
Water15,668,061 14,234,866 13,218,349 11,727,956
Total business-type activities expenses61,178,616 49,952,588 45,145,619 40,878,141
Total primary government expenses90,383,606$ 74,628,436$ 69,581,971$ 63,963,465$
Program Revenues
Governmental activities:
Charges for services:
Culture-recreation991,505$ 812,920$ 672,882$ 643,950$
Development1,761,166 1,350,955 1,097,581 887,830
Fire210,453 478,378 141,280 209,207
General government635,546 1,452 - -
Police880,807 838,302 769,389 602,434
Streets101,685 - - -
Operating grants and contributions168,863 900,681 176,169 228,828
Capital grants and conributions6,153,637 13,474,330 110,077 1,700,000
Total governmental activities
program revenues10,903,662 17,857,018 2,967,378 4,272,249
Business-type activitites:
Charges for services:
Airport2,595,764 2,352,094 1,667,154 1,459,523
Electric42,526,728 35,002,038 30,152,942 26,689,395
Sanitation3,446,566 3,227,268 2,932,480 2,791,467
Stormwater1,716,066 1,572,854 1,331,962 1,209,132
Water20,318,603 17,046,731 15,500,302 15,055,711
Operating grants and contributions- - - -
Capital grants and conributions14,217,294 6,665,628 12,051,096 2,070,954
Total business-type activities
program revenues84,821,021 65,866,613 63,635,936 49,276,182
Total primary government
program revenues95,724,683$ 83,723,631$ 66,603,314$ 53,548,431$
Net (expense)/revenue
Governmental activities(18,301,328)$ (6,818,830)$ ##########(18,813,075)$
Business-type activitites23,642,405 15,914,025 18,490,317 8,398,041
Total primary governement net expense5,341,077$ 9,095,195$ (2,978,657)$ (10,415,034)$
CITY OF GEORGETOWN, TEXAS
CHANGES IN NET ASSETS (CONTINUED)
LAST FOUR FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2006200520042003
General Revenues and Other Changes
in Net Assets
Governmental activities:
Property Tax 8,919,694$ 8,329,395$ 6,927,438$ 6,380,597$
Sales Tax 10,962,790 8,496,160 7,395,657 6,091,190
Taxes - other844,718 749,301 585,921 560,458
Franchise taxes2,209,235 1,942,246 1,844,683 1,579,729
Interest on investments1,398,706 507,038 171,949 197,103
Gain on sale of capital assets- 859,286 - -
Other463,719 1,167,654 466,185 2,420,183
Transfers6,230,148 5,220,063 5,671,960 4,661,635
Total governmental activities 31,029,010$ 27,271,143$ 23,063,793$ 21,890,895$
Business-type activities:
Interest on investments1,673,167$ 732,461$ 444,169$ 159,864$
Gain on sale of capital assets- 160,949 - -
Extraordinary item- - - 13,623,784
Other3,938,942 988,566 883,338 1,009,560
Transfers(6,230,148) (5,220,063) (5,671,960) (4,661,635)
Total business-type activities (618,039) (3,338,087) (4,344,453) 10,131,573
Total primary government30,410,971$ 23,933,056$ 18,719,340$ 32,022,468$
Changes in Net Assets
Governmental activities12,727,682$ 20,452,313$ 1,594,819$ 3,077,820$
Business-type activities23,024,366 12,575,938 14,145,864 18,529,614
Total primary government35,752,048$ 33,028,251$ 15,740,683$ 21,607,434$
CITY OF GEORGETOWN, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2006200520042003
General Fund
Reserved1,038,758$ 1,181,489$ 952,348$ 879,218$
Unreserved7,917,556 6,289,465 4,484,457 3,104,887
Total general fund8,956,314$ 7,470,954$ 5,436,805$ 3,984,105$
All other governmental funds
Reserved11,214,177$ 6,280,990$ 4,166,714$ 4,040,224$
Unreserved, reported in:
Special revenue funds462,040 279,158
Capital projects funds9,778,067 12,389,201 9,192,972 1,948,752
Total all other governmental funds20,992,244$ 18,670,191$ 13,821,726$ 6,268,134$
200220012000199919981997
256,987$ 199,071$ 71,899$ 72,774$ 549,297$ 2,180,878$
2,749,025 3,516,422 3,870,170 2,569,654 3,189,525 174,559
3,006,012$ 3,715,493$ 3,942,069$ 2,642,428$ 3,738,822$ 2,355,437$
9,700,650$ 9,971,623$ 8,659,997$ 8,560,393$ 6,847,792$ 5,826,557$
(1,513,403) (56,377) (57,377) (186,544) (1,193,116) (470,982)
8,187,247$ 9,915,246$ 8,602,620$ 8,373,849$ 5,654,676$ 5,355,575$
CITY OF GEORGETOWN, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2006200520042003
Revenues
Property taxes9,047,916$ 8,408,150$ 7,217,442$ 6,596,246$
Property assessment173,011 89,134 81,916 76,816
Sales tax and other taxes11,495,335 8,927,263 7,797,747 6,477,415
Franchise taxes2,209,235 1,942,246 1,844,683 1,579,729
Licenses and permits1,723,082 1,266,295 1,078,048 866,451
Charges for service1,067,460 955,940 919,219 946,450
Fine and forfeitures907,983 773,882 684,999 533,703
Donations and grants168,863 798,822 286,246 228,827
Investment income1,398,706 507,038 171,949 197,102
Other revenue1,428,485 2,134,184 764,592 3,463,798
Total revenues29,620,076 25,802,954 20,846,841 20,966,537
Expenditures
Culture - recreation4,968,902 5,197,709 4,509,436 3,904,361
Development2,127,927 1,952,474 1,914,223 1,565,612
Fire services4,171,527 3,675,033 3,832,320 3,507,243
General government2,302,417 1,987,046 1,905,979 1,619,356
Highways and streets1,761,494 1,741,217 1,931,782 1,587,154
Police7,070,088 5,798,432 5,585,002 5,359,643
Capital outlay15,950,142 11,916,076 6,570,321 9,749,963
Debt service
Principal retirement2,387,035 2,500,901 1,262,782 1,159,660
Interest and fiscal charges2,307,846 1,897,649 1,253,934 1,241,201
Total expenditures43,047,378 36,666,537 28,765,779 29,694,193
Excess (deficiency) of revenues
over expenditures(13,427,302) (10,863,583) (7,918,938) (8,727,656)
Other financing sources (uses)
Transfers in8,580,426 6,400,033 5,856,656 5,190,366
Transfers out(3,940,019) (2,691,211) (1,454,546) (528,730)
Sale of property31,102 896,113
Capital lease issued283,120
Payment to refunding escrow agent(7,736,794) (9,243,904)
Certificate of obligation bond issued20,300,000 22,385,166 12,240,000 3,125,000
Total other financing
sources (uses)17,234,715 17,746,197 16,925,230 7,786,636
Net change in fund balances3,807,413$ 6,882,614$ 9,006,292$ (941,020)$
Debt service as a percentage of noncapital
expenditures17.3%17.8%11.3%12.0%
200220012000199919981997
5,991,068$ 5,165,637$ 4,797,764$ 4,224,047$ 3,491,301$ 2,494,649$
39,450 21,296 - - - -
5,563,400 3,958,624 3,755,243 3,137,685 2,787,458 2,442,218
1,489,345 1,378,703 1,387,777 1,052,249 890,835 812,666
827,395 731,600 662,344 530,896 512,818 567,936
817,255 130,031 121,931 116,541 110,415 105,104
419,297 417,192 319,886 239,511 219,791 162,607
284,052 227,965 1,082,421 1,608,949 1,213,461 2,293,271
404,008 646,471 714,567 453,730 819,112 318,444
800,523 1,308,940 1,249,944 982,452 2,216,408 3,781,423
16,635,793 13,986,459 14,091,877 12,346,060 12,261,599 12,978,318
2,611,676 2,520,044 2,989,751 2,587,431 2,284,301 1,341,113
1,666,489 1,253,338 1,284,017 1,276,021 1,301,416 1,034,875
3,400,239 3,104,714 2,513,832 2,415,371 1,815,629 1,757,429
3,019,178 3,131,439 1,937,898 1,762,119 1,865,625 2,372,759
1,885,222 1,193,979 1,032,006 971,154 923,664 844,465
4,569,239 4,245,123 4,023,129 3,761,479 3,085,201 2,798,512
3,325,393 5,726,880 4,198,563 4,902,985 5,916,050 7,450,727
1,104,989 1,247,477 880,535 964,454 697,102 617,845
1,099,808 1,128,275 879,267 831,984 681,055 597,596
22,682,233 23,551,269 19,738,998 19,472,998 18,570,043 18,815,321
(6,046,440) (9,564,810) (5,647,121) (7,126,938) (6,308,444) (5,837,003)
3,614,115 5,933,886 6,553,059 5,052,659 5,942,880 4,237,493
(5,156) (753,026) (827,526) (1,353,212) (768,683) (938,288)
75,270 66,378
5,470,000 1,450,000 4,975,000 2,816,733 5,185,000
3,608,959 10,650,860 7,175,533 8,749,717 7,990,930 8,550,583
(2,437,481)$ 1,086,050$ 1,528,412$ 1,622,779$ 1,682,486$ 2,713,580$
11.4%13.3%11.3%12.3%10.9%10.7%
CITY OF GEORGETOWN, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
CURRENT PERCENT DELINQUENT
FISCAL TOTALTAX OF LEVY TAX
YEAR TAX LEVY COLLECTIONSCOLLECTED COLLECTIONS
19972,466,560$ 2,422,650$ 98.22%49,326$
19983,442,3283,394,19298.60%64,205
19994,195,9034,145,35198.80%48,279
20004,952,6884,726,48995.43%56,614
20015,357,8515,115,25595.47%64,518
20026,201,997 5,979,605 96.41%22,186
20036,912,129 6,598,745 95.47%46,401
20047,525,174 7,215,477 95.88%30,046
20058,694,027 8,274,192 95.17%161,088
20069,442,953 9,096,910 96.34%76,076
Source: City of Georgetown Tax Assessor.
TOTAL OUTSTANDING
COLLECTIONSDELINQUENT
AS A PERCENT OUTSTANDINGTAXES AS A
TOTAL TAX OF CURRENTDELINQUENTPERCENT OF
COLLECTIONSLEVYTAXESCURRENT LEVY
2,471,976$ 100.22%181,820$ 7.37%
3,458,397 100.47%163,595 4.75%
4,193,630 99.95%161,326 3.84%
4,783,103 96.58%169,585 3.42%
5,179,773 96.68%178,078 3.32%
6,001,791 96.77%200,206 3.23%
6,645,146 96.14%266,983 3.86%
7,245,523 96.28%279,652 3.72%
8,435,280 97.02%258,746 2.98%
9,172,986 97.14%277,077 2.93%
CITY OF GEORGETOWN, TEXAS
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
REAL PROPERTY PERSONAL PROPERTY
ESTIMATEDESTIMATED
FISCALASSESSED ACTUAL ASSESSEDACTUAL
YEAR VALUE(1)VALUE VALUE(1)VALUE
1997558,828,511$ 558,828,511$ 74,640,539$ 74,640,539$
1998900,336,306900,336,30683,786,89383,786,893
19991,103,282,6621,103,282,66296,548,57096,548,570
20001,278,247,0741,278,247,074131,824,968131,824,968
20011,450,396,2271,450,396,227178,948,682178,948,682
20021,660,732,5071,660,732,507178,037,876178,037,876
20031,915,334,7941,915,334,794200,707,337200,707,337
20041,935,628,3001,935,628,300196,487,678196,487,678
20052,094,066,9742,094,066,974166,921,359166,921,359
20062,367,099,1442,367,099,144157,265,408157,265,408
Source: City of Georgetown Tax Assessor.
(1) Net of exemptions.
TOTALRATIO OF TOTAL
ESTIMATED ASSESSED VALUE
ASSESSED ACTUAL TO TOTAL ESTIMATED
VALUE(1)VALUE ACTUAL VALUE
633,469,050$ 633,469,050$ 100.00%
984,123,199984,123,199 100.00%
1,199,831,2321,199,831,232 100.00%
1,410,072,0421,410,072,042 100.00%
1,629,344,9091,629,344,909 100.00%
1,838,770,3831,838,770,383 100.00%
2,116,042,1312,116,042,131 100.00%
2,132,115,9782,132,115,978 100.00%
2,260,988,3332,260,988,333 100.00%
2,524,364,5522,524,364,552 100.00%
CITY OF GEORGETOWN, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
CITY OF GEORGETOWN
DEBT GEORGETOWN
FISCALGENERALSERVICETOTAL INDEPENDENTWILLIAMSON
YEARFUNDFUNDCITYSCHOOL DISTRICTCOUNTYTOTAL
19970.210.170.381.440.32 2.14
19980.200.150.351.620.35 2.32
19990.210.140.351.750.35 2.45
20000.210.130.341.630.35 2.32
20010.200.110.311.740.40 2.45
20020.200.110.311.690.40 2.40
20030.200.100.301.730.46 2.49
20040.220.100.321.770.48 2.57
20050.230.110.341.760.51 2.61
20060.210.140.351.730.50 2.58
Source: Information furnished by respective tax assessors.
CITY OF GEORGETOWN, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR & NINE YEARS AGO
PERCENTAGEPERCENTAGE
OF TOTALOF TOTAL
ASSESSEDASSESSEDASSESSEDASSESSED
TAXPAYERTYPE OF BUSINESSVALUERANKVALUE(1)VALUERANKVALUE(1)
SPG Wolf Ranch LPDevelopment$54,533,897 12.16%
Del Webb Texas LTDDevelopment21,526,255 20.85%
Rivery Towne Crossings LPDevelopment16,082,723 30.64%
Wal-Mart Real EstateDevelopment15,396,720 40.61%$7,066,541 31.12%
HE Butt GroceryGrocer 13,379,262 50.53% 6,001,859 40.95%
Hewlett Holdings LTDAutomobile dealer12,159,158 60.48%
Watersedge - Georgetown LTDDevelopment11,280,732 70.45%
Republic Square LTDDevelopment11,217,641 80.44%2,935,454 80.46%
Watersedge - Georgetown II LTDDevelopment10,571,039 90.42%
Verizon SouthwestUtility10,535,640 100.42%
David S. StarrApartments8,418,049 11.33%
General TelephoneUtility8,183,130 21.29%
Commonwealth Land & Title Co.Development4,286,412 50.68%
Bridge-Georgetown Park LtdDevelopment3,586,944 60.57%
La Quinta Dev Partners LPHotel/Motel3,359,933 70.53%
Kelly More Paint Co IncRetail2,916,526 90.46%
Kenneth B. BaggottDevelopment2,622,312 100.41%
Total$176,683,0677.00%$49,377,1607.79%
(1) The total assessed valuation for the fiscal year ended September 30, 2006 was certified at $2,524,364,552
Sources: City Tax Assessor/Collector.
* Per certified roll. Does not include some major property owners whose property is under protest as of date of certification.
20061997
CITY OF GEORGETOWN, TEXAS
TAXABLE SALES BY CATEGORY
LAST TEN FISCAL YEARS
2006200520042003
Agriculture, forestry, fishing1,926,798 2,342,144 1,886,679 1,587,032
Construction19,082,596 19,126,285 13,523,384 10,344,948
Manufacturing7,134,008 5,622,123 4,995,059 4,615,388
Transportation, communications, utilities20,079,870 18,392,408 16,709,247 15,252,296
Wholesale trade32,639,071 21,501,948 16,610,129 18,307,879
Retail trade484,373,022 315,349,888 282,911,937 234,713,895
Finance, insurance, real estate- 85,337 36,928 48,986
Services32,131,233 26,631,564 26,491,291 26,351,599
Public Administration14,586,112 10,102,695 8,340,851 7,696,163
Other36,585,952 4,954,115 125,181 -
Total648,538,662 424,108,507 371,630,686 318,918,186
City direct sales tax rate2.00%1.75%1.75%1.75%
Source: Window on State Government - Susan Combs, Texas Comptroller of Public Accounts website
200220012000199919981997
1,353,247 1,136,583 659,105 935,211 1,026,334 515,904
7,920,453 8,121,175 10,964,602 6,603,008 9,042,977 5,302,731
5,341,134 7,442,465 7,199,965 6,646,803 7,434,343 5,018,377
13,183,428 11,696,473 9,906,842 9,927,907 9,159,699 7,527,904
16,882,885 15,403,048 12,477,416 12,020,426 6,941,068 5,124,242
212,810,904 209,521,177 206,468,551 186,066,531 179,079,311 150,784,975
47,113 413,182 - - 25,454 -
28,655,331 29,036,528 26,438,953 23,370,272 18,814,737 19,480,481
6,888,989 6,725,228 4,642,274 - - 4,287,253
- - - - - -
293,083,484 289,495,859 278,757,708 245,570,158 231,523,923 198,041,867
1.50%1.00%1.00%1.00%1.00%1.00%
CITY OF GEORGETOWN, TEXAS
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
CITY
FISCALDIRECTSTATE OF
YEARRATETEXAS
19971%6.25%
19981%6.25%
19991%6.25%
20001%6.25%
20011%6.25%
20021%6.25%
20031%6.25%
20041%6.25%
20051%6.25%
20061%6.25%
Source: Information furnished by City of Georgetown
CITY OF GEORGETOWN, TEXAS
SALES TAX REVENUE PAYERS BY INDUSTRY
FISCAL YEARS 2006 AND 1997
Number PercentTax PercentNumber PercentTax Percent
of Filersof TotalLiabilityof Totalof Filersof TotalLiabilityof Total
Agriculture, forestry, fishing1503.73%38,537$ 0.30%1273.45%5,159$ 0.26%
Mining30.07%- 0.00%40.11%- 0.00%
Construction2185.43%381,652 2.94%2617.10%53,027 2.68%
Manufacturing1413.51%142,680 1.10%2145.82%50,184 2.53%
Transportation, communications, utilities842.09%401,597 3.10%772.09%75,279 3.80%
Wholesale trade1433.56%652,781 5.03%1333.62%51,242 2.59%
Retail trade1,59839.78%9,687,460 74.69%1,89251.47%1,507,850 76.14%
Finance, insurance, real estate220.55%- 0.00%70.19%- 0.00%
Services88321.98%642,625 4.95%94025.57%194,805 9.84%
Public administration170.42%291,722 2.25%160.44%42,873 2.16%
Nonclassifiable establishments00.00%- 0.00%10.03%- 0.00%
Other75818.87%731,719 5.64%40.11%- 0.00%
Totals4,017100.00%12,970,774$ 100.00%3,676100.00%1,980,419$ 100.00%
Source: Window on State Government
Note: The City direct sales tax rate for 2006 and 1997 is 2% and 1%, respectively. Due to confidentiality issues, the names of the ten larg
revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's rev
20061997
CITY OF GEORGETOWN, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
GeneralArbitrage
FiscalObligationCompensatedCapitalRebate
YearBondsAbsencesLeasesPayable
199710,248,700$ 565,250$ -$ -$
199812,368,331 627,954 - -
199916,378,878 740,402 - 34,433
200016,948,092 775,779 - 89,235
200121,170,615 901,139 - 106,910
200220,065,626 999,881 - 67,774
200322,217,455 1,252,751 166,968 63,277
200433,194,673 1,329,545 368,787 17,663
200544,306,603 1,522,801 255,702 17,663
200654,429,567 1,767,492 142,633 14,650
Note: Details regarding the City's outstanding debt can be found in the notes to the financial
statements.
Governmental Activities
GeneralTotal
RevenueCompensatedObligationPrimary
BondsAbsencesBondsGovernment
24,670,000$ 246,323$ 1,081,300$ 36,811,573$
28,995,000 281,128 3,441,669 45,714,082
28,850,000 336,595 5,166,122 51,506,430
32,090,000 317,852 5,056,908 55,277,866
32,075,000 362,325 4,939,385 59,555,374
30,005,000 405,004 4,734,374 56,277,659
34,498,514 470,239 4,514,031 63,183,235
38,903,763 496,860 4,261,564 78,572,855
40,064,012 531,152 4,509,384 91,207,317
45,885,000 546,452 4,265,434 107,051,228
Business-Type Activities
CITY OF GEORGETOWN, TEXAS
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED
VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
GROSSLESS SELFTOTAL TAX
FISCALASSESSED BONDEDSUPPORTINGSUPPORTED
YEARPOPULATIONVALUE (1) DEBT (2)DEBT (3)DEBT
199724,000633,469,050$ 11,330,000$ 1,081,300$ 10,248,700$
199825,500984,123,199 15,810,000 3,441,669 12,368,331
199926,4001,199,831,232 21,545,000 5,166,122 16,378,878
200028,3281,410,072,042 22,005,000 5,056,908 16,948,092
200130,0001,629,344,909 26,110,000 4,939,385 21,170,615
200234,2731,838,770,383 24,800,000 4,734,374 20,065,626
200335,3002,116,042,131 26,731,486 4,514,031 22,217,455
200436,3592,132,115,978 37,456,237 4,261,564 33,194,673
200538,2652,260,988,333 48,815,988 4,509,385 44,306,603
200641,2942,524,364,552 58,695,001 4,265,434 54,429,567
Sources: City of Georgetown Planning and Development Division and the Georgetown Chamber of Commerce.
(1) Net of exemptions.
(2) Includes all long-term general obligation debt.
(3) Includes general obligation debt repaid from other sources (Airport and Stormwater Drainage funds).
(4) Less debt service funds available.
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
RATIO OF NETRATIO OF GROSS
LESS DEBTNETBONDED DEBTBONDED DEBTNET BONDEDTOTAL BONDED
SERVICE FUNDSBONDEDTO ASSESSEDTO ASSESSEDDEBT PERDEBT PER
AVAILABLE DEBTVALUE (4)VALUE (4)CAPITA (4)CAPITA (4)
353,913$ 9,894,787$ 1.56%1.73%412.28$ 457.34$
522,846 11,845,485 1.20%1.55%464.53 599.50
625,913 15,752,965 1.31%1.74%596.70 792.39
868,584 16,079,508 1.14%1.50%567.62 746.13
628,288 20,542,327 1.26%1.56%684.74 849.39
657,757 19,407,869 1.06%1.31%566.27 704.41
663,644 21,553,811 1.02%1.23%610.59 738.47
768,436 32,426,237 1.52%1.72%891.84 1,009.04
508,151 43,798,452 1.94%2.14%1,144.61 1,262.45
878,668 53,550,899 2.12%2.29%1,296.82 1,400.11
CITY OF GEORGETOWN, TEXAS
COMPUTATION OF DIRECT AND ESTIMATED OVERLAPPING BONDED DEBT
SEPTEMBER 30, 2006
DEBTCITY'S SHARE (2)
PER
TAXING BODY AMOUNT AS OFPERCENT AMOUNTCAPITA (1)
ESTIMATED OVERLAPPING DEBT:
Georgetown I.S.D.$157,134,9776-30-0678.06%$122,660,335$2,970
Williamson County523,620,0009-30-0612.38% 64,843,0361,570
Total estimated
overlapping debt680,754,97727.54% 187,503,3714,540
DIRECT DEBT - City of
Georgetown58,695,0019-30-06100.00% 58,695,0011,421
DIRECT AND ESTIMATED
OVERLAPPING DEBT$739,449,978$246,198,372$5,961
Source: Jurisdiction listed.
(1) GISD population - 52,900
Williamson County population - 333,457
City of Georgetown population - 41,294
(2) Information represents the share of the respective debt which are obligations of the citizens
of the City of Georgetown
CITY OF GEORGETOWN, TEXAS
COMPUTATION OF LEGAL DEBT MARGIN
SEPTEMBER 30, 2006
2006200520042003
Debt Limit 28,399,101$ 25,436,119$ 23,986,305$ 23,805,474$
Total net debt applicable to limit 4,916,116 4,645,554 2,949,202 2,739,059
Legal debt margin 23,482,985$ 20,790,565$ 21,037,103$ 21,066,415$
Total net debt applicable to limit
as a percentage of debt limit 17.31%18.26%12.30%11.51%
ASSESSED VALUATION 20062,524,364,552$
Allowable tax levy for annual debt service purpose:
assuming 90% collection rate 28,399,101
2006 annual debt service requirements for general obligation debt:
Principal$2,630,987
Interest and fiscal charges2,285,1294,916,116
Legal margin for annual debt service requirements23,482,985$
NOTE: All taxable property within the City is subject to the assessment levy and collection by the City of a continuing,
direct annual ad valorem tax sufficient to provide for the payment of principal and interest on the Bonds within the limits
prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits the maximum ad
valorem tax rate to $2.50 per $100 assessed valuation (for all City purposes). The Charter of the City adopts the pro-
visions of the constitution without further limitation. Under rules promulgated by the Office of the Attorney General of
Texas, such office will not approve tax bonds of the City unless the City can demonstrate its ability to pay debt ser-
vice requirements on all outstanding City tax bonds, including the issue to be approved, from a tax levy of $1.25 per
$100 of valuation, based on 90% collection of tax.
The legal margin computation includes the general obligation debt that will be repaid by self-supporting sources such
as the Airport, Stormwater Drainage and Georgetown Transportation Enhancement Corporation (GTEC) funds.
200220012000199919981997
20,686,167$ 18,330,130$ 15,863,310$ 13,498,101$ 11,071,386$ 7,126,527$
2,654,863 2,594,285 2,074,767 1,898,756 1,396,281 1,168,027
18,031,304$ 15,735,845$ 13,788,543$ 11,599,345$ 9,675,105$ 5,958,500$
12.83%14.15%13.08%14.07%12.61%16.39%
CITY OF GEORGETOWN, TEXAS
REVENUE BOND COVERAGE
UTILITY FUNDS (1)
LAST TEN FISCAL YEARS
OPERATING
EXPENSESNET REVENUE
FISCALELIGIBLEINTEREST (EXCLUDINGAVAILABLE FOR
YEAR REVENUESEARNINGSDEPRECIATION)DEBT SERVICE
199726,261,446$ 585,650$ 16,141,638$ 10,705,458$
199829,682,527 754,178 18,413,512 12,023,193
199931,107,463 879,406 19,205,976 12,780,893
200036,216,903 995,272 21,872,920 15,339,255
200140,844,133 1,202,418 25,762,110 16,284,441
200241,550,381 610,791 26,227,232 15,933,940
200346,041,368 155,951 30,122,878 16,074,441
200447,346,431 423,987 33,420,226 14,350,192
200554,144,359 705,118 36,669,650 18,179,827
200666,723,744 1,600,113 46,356,026 21,967,831
Source: Finance and Administration Division.
Notes: (1) Electric, Water and Wastewater only.
DEBT SERVICE REQUIREMENTS
INTEREST AND TIMES
PRINCIPAL FISCAL CHARGES TOTAL COVERAGE
1,285,000$ 1,357,104$ 2,642,104$ 4.05
- 1,215,179 1,215,179 9.89
145,000 1,471,341 1,616,341 7.91
1,080,000 1,393,904 2,473,904 6.20
1,915,000 1,809,436 3,724,436 4.37
2,070,000 1,640,674 3,710,674 4.29
2,145,000 1,668,819 3,813,819 4.21
2,534,751 1,920,886 4,455,637 3.22
2,864,751 1,875,451 4,740,202 3.84
6,049,012 2,006,822 8,055,834 2.73
CITY OF GEORGETOWN, TEXAS
DEMOGRAPHIC & ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per
Capita
FiscalPersonalPersonalSchoolUnemployment
Year PopulationIncomeincomeEnrollmentRate
199724,000 599,832,000$ 24,993$ 6,650 2.70%
199825,500 715,963,500 28,077 6,920 2.50%
199926,400 800,052,000 30,305 7,321 2.33%
200028,328 890,887,272 31,449 7,551 1.88%
200130,000 886,680,000 29,556 7,900 2.96%
200234,273 951,315,661 27,757 7,900 5.90%
200335,300 994,683,400 28,178 8,300 6.02%
200436,359 1,045,103,096 28,744 2,600 4.76%
200538,265 1,124,187,435 29,379 8,820 4.20%
200641,294 1,240,017,526 30,029 9,400 4.09%
Sources:
Population: City of Georgetown Planning and Development Division.
Per Capital Personal Income: Texas Workforce Commission, Labor Market
Information TRACER.
School Enrollment: Georgetown Independent School District.
Unemployment Rate: Texas Workforce Commission, Labor Market Information TRACER.
Notes: Personal income and per capita personal income is for Williamson County.
2005 and 2006 personal income and per capita personal income are estimations.
CITY OF GEORGETOWN, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
PercentagePercentage
of Total Cityof Total City
Employer EmployeesRankEmploymentEmployeesRankEmployment
Georgetown ISD1,42013.59%1,00024.28%
Williamson County1,300 23.28%800 33.43%
St Davids Hospital600 31.51%500 42.14%
Southwestern Univ583 41.47%430 51.84%
HE Butt Grocer477 51.20%275 61.18%
City of Georgetown453 61.14%263 71.13%
WalMart306 70.77%180 100.77%
Sun City Texas240 80.61%1,500 16.42%
Wesleyan Homes240 90.61%- -
Airborne, Inc.230 100.58%221 80.95%
Manitex- - 190 90.81%
Totals5,84914.77%5,35922.95%
Source: Finance and Administration Division.
20061997
CITY OF GEORGETOWN, TEXAS
FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
20062005200420032002
Function
General Government
Culture & Recreation
Parks21.518.518.519.519.5
Recreation25.526.526.52424
Rec. Programs 33331.5
Library17.517.515.515.515.5
Development
Administration4.534.5
Dev. Process Team
Current Planning910577
Long Range Planning 43222
Inspection Svcs.111111108
Code Enforcement5.55.55.5
Fire Services
Administration 33344
Operations5651464643
Prevention & Comm. Analysis5.55.5
Gen. Govt.
Gen. Govt.3333.52
City Council 11111
City Manager's Office6.56.56.55.55.5
Legal Svcs
Highways / Streets14.7514.7514.7511.7511.75
Police Services
Org. & Administration 88833
Support Svcs.3131323029
Field Operations4741354238
Special Operations
Information Mgmt.
Professional Standards
Animal Svcs.7.56.756.756.756.5
Municipal Court 54433
Fleet Mgmt.5544.54.5
Facilities Mgmt.43211
Information Svcs.10 9888
Joint Svcs.53515046.7542.75
Water1414141317.25
Sewer12129106.25
Electric3025252222
Other Enterprises1111111111
Total418.75395.00374.50362.25347.00
Source: City Finance & Administration Division.
Notes: A full-time employee is scheduled to work 2,088 hours per year (including vacation and sick leave). Full-time
equivalent employment is calculated by dividing total labor hours by 2,088.
20012000199919981997
19.51816.51615.5
24.252521.519.7519.25
3.53.53.53.53.5
14.51616.251513
676.56.54
77.2589.25
7
91010109.75
4443.753
4334.5332222
64443.75
2.5221.5
6.56.755.254.753.25
5554.5
12.7512.751211.7511.75
34422
22
45333027.526
131515.511
171717.7517
332.252
6.565.754.754.25
2.52.5222
4.54444
11111
876.254.57
39.2538.7536.7539.533.5
15.2515.2514.7513.2513.25
6.25 7764
191716.251619.25
9.7511.7510.7510.59.25
338.00336.25320.25298.50279.50
CITY OF GEORGETOWN, TEXAS
OPERATING INDICATORS BY FUNCTIONS
LAST TEN FISCAL YEARS
Function 2006200520042003
Culture and recreation
Recreation Center memberships4,294 2,074 1,538 1,589
CVB number of visitor inquiries37,062 40,117 41,426 33,063
Library
Circulation347,662 350,716 330,171 318,820
Number of patrons added1,784 1,684 1,533 1,611
Economic Development
Number of proposals generated72 71 59 20
Community Development
Inspections/Code Enforcement
Number of inspections47,197 39,677 28,389 24,631
New residential permits issued1,316 930 890 612
New commercial permits issued/TFO/Industrial152 132 75 33
Number of code enforcement violations15,603 11,187 2,026 1,948
Planning and Development Services
Development applications filed397 280 209 203
Annexations (in acres)8,909 5,062 443 700
Fire Services
Number of calls for service4,257 3,957 3,402 3,335
General Govt
Bond rating - S&PAA-A+A+A+
City Manager's Office
Number of public information requests process 786 616 702 545
Highways and streets
Center line miles251 230 202 189
Police Services
Number of calls for service48,739 40,649 41,986 36,002
Number of traffic accidents1,513 1,510 1,382 1,425
Animal Services
Number of pets impounded1,452 1,775 1,591 1,337
Number of adoptions642 793 696 456
Municipal Court
Number of court cases13,824 11,279 11,018 9,417
Number of warrants served398 712 819 489
Utility Office
Number of utility customers21,365 19,862 18,621 18,198
Water
Number of new connects1,281 670 912 705
Average daily water treated (million gallons)11.888.717.978.21
Average daily consumption (million gallons 3.76 2.79 2.27 2.49
Sewer
Number of new connects1,307 1,021 922 685
Average daily wastewater treated (million gallo 2.953.283.072.70
Electric
kWhs consumed 419,651,791 377,198,661 350,104,864 343,553,661
Number of new connects1,134 817 473 861
AMR
Total reads by AMR34,781 31,373 30,121 26,462
Other Enterprises
Stormwater & drainage
Number of detention ponds cleaned228 164 113 100
Number of work orders705 - 116 741
Airport
Gallons of fuel sold 773,340842,223688,719610,710
Sources: Various City departments and City-Monthly Activity Indicators Report
200220012000199919981997
1,592 2,127 1,976 1,963 - -
15,179 21,190 - 13,000 7,331 5,449
326,282 330,503 276,000 240,319 220,430 206,505
1,781 1,730 1,989 1,836 3,006 2,494
14 6 - - - -
15,602 21,775 23,342 22,842 - -
648 825 931 25 950 891
31 46 48 30 30 25
3,266 2,599 1,126 1,348 - -
182 159 - - - -
101 253 121 58 1,613 996
3,374 3,277 3,194 2,439 2,623 2,422
A+A+AAAA
565 248 80 79 79 103
186 180 172 168 156 146
30,156 33,298 29,428 27,226 - -
1,429 928 1,299 - - -
1,367 1,280 1,352 1,413 1,691 1,418
529 537 - - - -
5,767 6,054 5,854 4,742 4,887 4,174
366 92 - - - -
17,496 16,939 15,718 14,501 13,419 12,531
568 338 - - - -
9.00- - - - -
2.46 2.13 2.46 1.86 2.02 1.36
453 224 - - - -
3.10- - - - -
324,263,223 312,817,728 299,583,307 267,442,707 251,306,259 218,336,403
1,265 230 - - - -
24,351 20,625 - - - -
45 54 15 14 9 4
1,605 1,635 - - - -
709,293653,916631,377379,318301,252260,248
CITY OF GEORGETOWN, TEXAS
SUMMARY OF INSURANCE COVERAGE
POLICY TYPE INSURER AGENT POLICY NUMBER
Airport LiabilityTexas Municipal Texas Municipal2903
LeagueLeague
Automobile LiabilityTexas Municipal Texas Municipal2903
LeagueLeague
Automobile Physical DamageTexas Municipal Texas Municipal2903
LeagueLeague
Boiler & MachineryTexas Municipal Texas Municipal2903
LeagueLeague
General Liability Texas Municipal Texas Municipal2903
LeagueLeague
Law Enforcement LiabilityTexas Municipal Texas Municipal2903
LeagueLeague
Mobile EquipmentTexas Municipal Texas Municipal2903
LeagueLeague
Public Employee DishonestyTexas Municipal Texas Municipal2903
BondLeagueLeague
Public Officials Texas Municipal Texas Municipal2903
LeagueLeague
Real/Personal PropertyTexas Municipal Texas Municipal2903
LeagueLeague
Workers' CompensationTexas Municipal Texas Municipal2903
LeagueLeague
Pollution LiabilityAmgripTexas MunicipalBTA2149987-05
League
Animal Mortality/TheftTexas Municipal Texas Municipal2903
LeagueLeague
Errors and Omissions LiabilityTexas Municipal Texas Municipal2903
LeagueLeague
SEPTEMBER 30, 2006
COVERAGE
POLICY PERIOD DESCRIPTION LIMIT PREMIUM
October 1, 2005 toAirport, Aviation$20,000,000occ$16,821
September 30, 2006Non-owned aircraft, 50,000Fire
(Hangarkeepers)Hangar2,000,000Aircraft
Liability5,000,000occ
October 1, 2005 toDamage caused by5,000,000occ45,422
September 30, 2006 City Vehicles25,000person
October 1, 2005 toDamage caused toACV48,422
September 30, 2006 City Vehicles
October 1, 2005 toLibrary HVAC 2,000,000accident Included
September 30, 2006 Direct Damage
October 1, 2005 toGeneral Liability10,000,000agg annual69,322
September 30, 20065,000,000occ
October 1, 2005 toPolice Department10,000,000annual34,229
September 30, 20065,000,000occ
October 1, 2005 toDamage toper schedule10,390
September 30, 2006 Mobile Equipment1,732,287
October 1, 2005 toCrime/Public Employee500,0003,524
September 30, 2006Crime/Theft disappearance
Destruction (inside/outside)300,0001,116
October 1, 2005 toMayor, Council, City Attorney10,000,000annual Included
September 30, 2006 Boards, Commissions5,000,000occ
and Employees
October 1, 2005 toReal / Personal78,159,513147,106
September 30, 2006 Propertyper schedule
October 1, 2005 toLosses as Prescribedper TWCC84,432
September 30, 2006 by the Texas Workers'Statute
Compensation Law
October 1, 2005 toPollution Liability1,000,000ann agg2,395
September 30, 2006 Underground Storage Tanks1,000,000occ
October 1, 2005 toPolice Canine Loss of use/per schedule500
September 30, 2006 Theft mortality/Vet/Surgical1 PD canines
October 1, 2005 toErrors and Omissions5,000,000wrongful agg
September 30, 2006Includes Public Officials10,000,000annual83,404
TOTAL 547,083$
Compliance Section
Report on internal control over financial reporting and on compliance and other matters based on
an audit of financial statements performed in accordance with Government Auditing Standards.