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HomeMy WebLinkAboutCAFR 2008 CITY OF GEORGETOWN, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 Prepared by: Division of Finance and Administration Micki Rundell, CGFO – Director Leticia Zavala, CGFO – Controller Lorie Lankford, CGFO – Accounting Supervisor TABLE OF CONTENTS INTRODUCTORY SECTION: Letter of Transmittal ......................................................................................................................................i GFOA Certificate of Achievement..............................................................................................................vii Organizational Chart ................................................................................................................................. viii Elected Officials and Administrative Officers...............................................................................................ix City of Georgetown Map...............................................................................................................................x FINANCIAL SECTION: Independent Auditors’ Report.......................................................................................................................1 Management’s Discussion and Analysis......................................................................................................3 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets................................................................................................................17 Statement of Activities...................................................................................................................18 Fund Financial Statements Governmental Funds Balance Sheet...............................................................................................................................23 Reconciliation of The Governmental Funds Balance Sheet to the Statement of Net Assets...............................................................................................24 Statement of Revenues, Expenditures, and Changes in Fund Balance..........................................................................................................................25 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities.................................................26 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – General Fund ........................................................................................28 Proprietary Funds Statement of Net Assets................................................................................................................29 Statement of Revenues, Expenses and Changes in Fund Net Assets ........................................30 Statement of Cash Flows..............................................................................................................32 Fiduciary Funds Statement of Fiduciary Net Assets – Agency Funds.....................................................................34 Notes to the Financial Statements.......................................................................................................36 Required Supplementary Information Texas Municipal Retirement System Trend Data ................................................................................69 Modified Approach for Streets Infrastructure Capital Assets...............................................................70 Combining and Individual Fund Financial Statements and Schedules Combining Financial Statements – Nonmajor Governmental Funds Combining Balance Sheet.............................................................................................................72 Combining Statement of Revenues, Expenditures and Changes in Fund Balance......................74 Schedules of Revenues and Expenditures – (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis Special Revenue Funds Court Fees..............................................................................................................................76 Fire Billing...............................................................................................................................77 Library Restricted....................................................................................................................78 Main Street Façade ................................................................................................................79 Mapping..................................................................................................................................80 Parks.......................................................................................................................................81 Police......................................................................................................................................82 Street Tax ...............................................................................................................................83 Tourism...................................................................................................................................84 Village Improvement District...................................................................................................85 Downtown TIF ........................................................................................................................86 Supplementary Individual Fund Financial Statements and Schedules – Major Governmental Funds General Fund Comparative Balance Sheets........................................................................................................88 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances ...............89 Schedule of Revenues and Expenditures (Budget Basis) - Budget and Actual............................90 Georgetown Transportation Enhancement Corporation (GTEC) Comparative Balance Sheets........................................................................................................94 Comparative Statements of Revenues, Expenditures and Changes in Fund Balance.................95 Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual.........................96 Debt Service Fund Comparative Balance Sheets........................................................................................................97 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances ...............98 Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual...........................99 General Capital Projects Comparative Balance Sheet........................................................................................................100 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances .............101 Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual.........................102 Combining Financial Statements - Nonmajor Proprietary Funds Enterprise Funds Combining Statement of Net Assets ...........................................................................................104 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets.....................105 Combining Statement of Cash Flows..........................................................................................106 Internal Service Funds Combining Statement of Net Assets ...........................................................................................108 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets.....................109 Combining Statement of Cash Flows..........................................................................................110 Supplementary Individual Fund Financial Statements Enterprise Funds Electric Fund Comparative Statements of Net Assets ...............................................................................114 Comparative Statements of Revenues, Expenses and Changes in Fund Net Assets .........115 Water Services Fund Comparative Statements of Net Assets............................................................................... 116 Comparative Statements of Revenues, Expenses and Changes in Fund Net Assets ......................117 Airport Fund Comparative Statements of Net Assets................................................................................118 Comparative Statements of Revenues, Expenses and Changes in Fund Net Assets .........119 Sanitation Fund Comparative Statements of Net Assets ...............................................................................120 Comparative Statements of Revenues, Expenses and Changes in Fund Net Assets .........121 Stormwater Drainage Fund Comparative Statements of Net Assets................................................................................122 Comparative Statements of Revenues, Expenses and Changes in Fund Net Assets .........123 Agency Funds ..........................................................................................................................................126 Capital Assets Used In the Operation of Governmental Funds................................................................128 STATISTICAL SECTION Net Assets by Component – Last Six Fiscal Years..................................................................................132 Changes in Net Assets – Last Six Fiscal Years.......................................................................................134 Fund Balances of Governmental Funds – Last Ten Fiscal Years............................................................138 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years.........................................140 Property Tax Levies and Collections - Last Ten Fiscal Years..................................................................142 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years..............................144 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years..............................146 Principal Taxpayers – Current Year and Nine Years Ago........................................................................147 Taxable Sales by Category – Last Ten Fiscal Years ...............................................................................148 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ..........................................................150 Sales Tax Revenue Payers by Industry – Fiscal Years 2006 and 1997 ..................................................151 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ...................................................................152 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita - Last Ten Fiscal Years........................................154 Computation of Direct and Estimated Overlapping Bonded Debt............................................................156 Computation of Legal Debt Margin...........................................................................................................158 Revenue Bond Coverage - Utility Funds - Last Ten Fiscal Years............................................................160 Utility System Condensed Statement of Operations................................................................................162 City’s Equity in Utility System...................................................................................................................164 Demographic and Economic Statistics - Last Ten Fiscal Years...............................................................166 Principal Employers – Current Year and Nine Years Ago........................................................................167 Full Time Equivalent City Government Employees by Function – Last Ten Fiscal Years........................168 Operating Indicators by Functions – Last Ten Fiscal Years.....................................................................170 Summary of Insurance Coverage.............................................................................................................172 About the cover... The annual Red Poppy Art Contest sponsored by the Main Street Program attracts a wide variety of artwork featuring the red poppy, which is Georgetown’s signature flower. This year for the first time in the history of the contest, the winning entry is a tapestry rather than a painting. Nadene Brown’s depiction of red poppies on a scenic tapestry, titled My Poppies, is the 2007 contest winner and cover for our budget. Introductory Section February 11, 2009 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, 2008, 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. 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 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 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 47,353, 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 5,365 homes with over 11,000 retirees make Sun City and Georgetown their home. Del Webb intends to complete the 7,500 unit development within the next few years. Georgetown is also 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 425 employees, the University provides substantial economic and cultural contributions to Georgetown. GEORGETOWN'S ECONOMIC OUTLOOK Community Growth – 2007/08 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 $4.1 billion, while the population topped 47,000. Utility customers have grown to over 23,000, a 4.5% increase over the prior year. Funding city services continues to provide challenges for city leaders. Revenue sources continue to be developed to offset potential tax increases, and keep property taxes among the lowest in the region. Some examples are expanding the City’s Electric Utility into the City of Round Rock to provide electric service to the Premium Outlet Mall and Scott and White Hospital. The City also provides water services to municipal utility districts outside our extra territorial jurisdiction. Both of these expansions generate revenues without the requirements of providing public services. Continued build out at both the Wolf Ranch and Rivery retail centers has occurred with the opening of restaurants and retail. Souper Salad, Montana Mikes, and Sephora opened during 2008. Additional retail space is being developed for the Vitamin Shoppe, James Avery, Wolf Camera and Video, Firehouse Subs, Mana Fu’s Asian House and a third Starbucks. The “Square” experienced growth during 2008 with the opening of Silver and Stone Restaurant and Wine Bar, Dia Thai Cuisine and D’vine Wine. The Monument Cafe moved to a new location on the “Square”. Development also continues at Sun City, with residential homes now exceeding 5,000. The guidebook “Retirement Places Rated”, ranked Georgetown as the top place in the country to retire, sighting the City’s strong economy and affordable housing. These same factors have also helped bring several large, non-age restricted, development projects to the area such as Water Oaks, a 2,600 acre development and Somerset, a 3,000 acre master planned development in Northern Georgetown. The 600 unit Sierra Ridge project, being developed by Georgetown Housing Authority, is aimed to fulfill the need for added options for affordable housing in Georgetown. Overall, it’s an exciting time to be in Georgetown. Current Economic Outlook The recent economic downturn of the economy nation wide has affected Georgetown and the surrounding area. In January 2009 the City enacted the Budget Contingency Plan as outlined in the Fiscal and Budgetary Policy. Sales tax projections were lower by 10% and a hiring freeze was issued for several open and new positions in the General Fund. The City is taking a conservative approach during this time. The City does have close 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. Transmittal Letter Page iii 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 Round Rock to IH 35 North of Georgetown on the far western side will open many sites for future development. This project is expected to alleviate traffic congestion and provide an economic benefit to the area. Georgetown offers viable economic opportunities. Two local employers, Airborn and Texas Outdoor Power Equipment, have announced expansion plans for next year. Build out at both Wolf Ranch and Rivery retail centers have also occurred. A major hotel/convention center is scheduled to open by 2010 at the Rivery, providing much needed meeting space to the community, as well as, improvements to Rivery Park. A second Walgreen’s drug store is under construction on HW29, across from Wolf Ranch. Two new hotels are being built along IH35 that will jump start the implementation of the Williams Drive Gateway Master Plan redevelopment project. Over 1 million square feet of new commercial property, valued over $72 million, was added in 2007/08. The Downtown area continues to see revitalization and development. The recently completed Tamiro Plaza, a four story 34,000 sq ft office building, provides added office and professional services space in the area. The City continues to implement projects outlined in the Downtown Master Plan. Improvements and beautification of Main Street and downtown sidewalks reinforce the quaint feeling of the downtown area. 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. MAJOR INITIATIVES Utility Rates. The City continues to review rate requirements for all utilities annually, as part of the budget process. Environmental mandates for water and wastewater continue to be the driving factor in rate analysis. Water and wastewater rates were reviewed by the City 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. Electric rates were increase in January 2008 by 5%, to adequately recover costs associated with service delivery and purchased power costs. At this time the power cost adjustment was then eliminated as elements were redistributed. In July 2008, the power cost adjustment was reinstated at a rate of $.01/per kWh due to soaring oil prices. Utility System Expansion. Contracting for additional water with the Brazos River Authority has ensured the availability of a long-term water supply for Georgetown. Expenses in the wastewater utility have increased due to the Edwards Aquifer compliance issues and increasing treatment plant operational costs. The expansion of effluent for irrigation purposes, which provides large commercial customers a non-potable water supply for irrigation needs, has been completed to help mitigate the demand on the City’s water plants for treated water. The City continues to pursue options for regional wastewater service and is taking a leadership role in developing methods to promote sanitary sewer service and eliminate the proliferation of septic solutions to ensure water quality. Transportation. Traffic and transportation was one of the top highest concerns and priorities of the community during the 2008 Citizen Quality of Life Survey. In November 2008, city voters authorized $46 million for road projects, with bonds to be issued within the next ten years. The City is developing a plan to assume responsibility of traffic lights within the City by 2010. Developing a regional pavement design Page iv Transmittal Letter system and implementing the program to ensure cohesiveness of the City’s roadways is also a top priority. Development of a Transit System Master Plan to provide reliable alternatives to navigating the City was evaluated during the year. During the 2008/09 budget process, a pilot program was approved to assess the usage of a transit system. Public Safety. Improving public safety response has been a major priority for the last several years. 2008 provided for the additional staffing for public safety including an Impact Team and a second Warrant Officer. In addition, efforts have been made to improve public safety compensation to make Georgetown more competitive with other local governments when hiring new officers. Long Range Planning. Planning for Georgetown’s future is a major priority, as the City began an update of its comprehensive plan. Over the last several years, the City has annexed over 10,000 acres to ensure land use control over critical growth areas along Georgetown’s gateways. These annexations will require over $7 million in water and sewer improvements over the next few years. 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. Construction of the Recreation Center expansion approved by the voters in November 2004 was completed in January 2009. This expansion provided an additional 47,000 sq ft to create a 65,000 sq ft facility, which includes an indoor pool and track, weight and cardio areas and a larger babysitting room. In addition, in November 2008 city voters authorized $35.5 million in bonds to fund park improvements. The bonds will be issued over the next ten to fifteen years. Facility Construction. The City continues to implement its long range facility plan. The City’s new 55,000 sq ft Library opened in January 2008, when library operations relocated from their 17,000 sq ft facility built in the late 1980’s. The expanded Recreation Center was also constructed in 2007/08. 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 is 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 was not required to have Single Audit testing for fiscal year 2007/08. Transmittal Letter Page v 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. 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, Franklin & 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, 2008 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, 2008, 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, 2007. 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 twenty 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 twenty 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. Page vi Transmittal Letter 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, Accounting Supervisor, Lisa Haines, Accountant III, Lindsay Daniell, Accountant I, 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 vii viii PoliceFinance &Administration FireGeorgetownUtility Systems Assistant City Manager Transportation Electric Services Water Services Community Services Engineering Facilities VSC Accounting Purchasing CVBMain Street Tourism ParksRecreation Library Airport InformationTechnology A HOME RULE CITY CITY COUNCILMAYOR (elected at large) SEVEN COUNCIL PERSONS(elected by district) CITIZENS OFGEORGETOWN CITY SECRETARYCITY ATTORNEY MUNICIPALCOURT JUDGE BOARDS & COMMISSIONSCITY MANAGER Municipal Court Economic Development Human Resources Community Development Support Services Bureau AdministrativeServices Bureau Animal Services Field OperationsBureau Administration Operations = City Divisions Utility BIlling Sanitation PlanningServices InspectionServices Housing & NeighborhoodDevelopment GeographicInformation System ix CITY OF GEORGETOWN, TEXAS ELECTED OFFICIALS AND ADMINISTRATIVE OFFICERS SEPTEMBER 30, 2008 ELECTED OFFICIALS Mayor George Garver City Council Member, District 1 Patty Eason City Council Member, District 2 Gabe Sansing City Council Member, District 3 Keith Brainard City Council Member, District 4 Bill Sattler City Council Member, District 5, Mayor Pro Tem Pat Berryman City Council Member, District 6 Dale Ross City Council Member, District 7 Ben Oliver APPOINTED OFFICIALS City Manager Paul Brandenburg City Attorney Patricia Carls Carls, McDonald & Dalrymple, LLP 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 Interim Fire Chief Clay Shell Police Chief David Morgan 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 develop- ment. Traveling to and from Georgetown is easy, as it is at the crossroads of IH-35 going north/south and State Highway 29 going east/ west. Access to Georgetown via the Austin-Bergstrom International Airport was made much easier with the recent opening of State Highway 130, a new toll road from Georgetown to San Antonio that parallels IH-35. Financial Section 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, 2008. 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 $11.0 million, or 40% of the FY 2008 General Fund expenditures. The undesignated fund balance increased by $1.8 million from FY2007. Of this amount, $500,000 represented an increase in budgeted contingency reserves. Revenues were $1.6 million more than the original budget estimates.  General Fund revenues increased $2.8 million, an increase of 13% over FY 2007.  General Fund expenditures increased by $3.1 million, an increase of 13% over FY 2007. This increase was due to increased staffing in Public safety and the creation of the Transportation division. Community service related staffing increases and cost of living salary increases also contributed to this increase. Governmental Activities  On a government-wide basis for governmental activities, the City had expenses net of program revenue of $27.7 million. General revenues and transfers totaled $40 million, resulting in an increase in net assets of $12.2 million.  As of September 30, 2008, the City's governmental activities reported combined ending net asset balances of $171 million. The largest element of this balance, $129.4 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, 2008, the City issued $5.1 million in General Obligation bonds and Certificates of Obligation, of which $750,000 was in support of utility projects in the Stormwater Fund to be repaid through the monthly fees charged in the utility rate. The debt issue funded general capital projects and public safety equipment. The City's general obligation debt is rated AA by Standard & Poor's and Moody's. Business-Type Activities  The net assets of the City's business-type activities had a current year increase of $16.3 million, additionally the beginning net assets increased by $16.2 million as noted on page 46. The current year increase is primarily due to $11 million of infrastructure assets contributed by developers for commercial projects and other residential subdivisions. CITY OF GEORGETOWN, TEXAS MD&A 4  The City issued $9.4 million of utility system revenue bonds for electric and water system expansion. The City also issued $7.1 million in Refunding Revenue Bonds to retire outstanding debt issued at a higher interest rate, with a net savings of $489,672. Both Standard & Poor's and Moody's have rated the City's utility system revenue debt as AA-. Entity-Wide  The City's total net assets on a government-wide basis totaled $374.8 million at September 30, 2008, an increase of 14% over September 30, 2007, including the prior period change as noted on page 46. Most of this balance is invested in capital assets, restricted for specific purposes, or related to a long-term receivable.  The City received $12.0 million of grants and other capital contributions in FY 2008, along with $493,00 of operation grants and contributions for public safety and flood clean-up. 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 can readily be converted to cash flow (in and out), and (2) Year-end balances readily available for spending. Consequently, the governmental funds statements provide a short-term view that helps determine whether there are greater 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 explain 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 collects fees and rates intended 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, similar to 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 in 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: 2008 2007 2008 2007 2008 2007 Current and other assets $ 48,758 $ 58,680 $ 50,018 $ 45,861 $ 98,776 $ 104,541 Capital assets 210,452 188,842 228,467 208,550 438,919 397,392 Total assets $ 259,210 $ 247,522 $ 278,485 238,263 $ 537,695 $ 501,933 Long-term liabilities $ 83,506 $ 82,348 62,839 $ 56,165 146,345 $ 138,513 Other liabilities 4,868 6,531 11,660 10,590 16,528 17,121 Total liabilities $ 88,374 $ 88,879 $ 74,499 $ 66,755 $ 162,873 $ 155,634 Net assets: Invested in capital assets, net of related debt $ 129,355 $ 116,739 $ 173,247 $ 157,361 $ 302,602 $ 274,099 Restricted 25,011 36,306 25,011 36,306 Unrestricted 16,470 5,598 30,739 30,296 47,209 35,894 Total net assets $ 170,836 $ 158,643 $ 203,986 $ 187,657 $ 374,822 $ 346,299 Summary Statement of Net Assets (In thousands) Govtl Activities Bus-Type Activities Total Primary Government CITY OF GEORGETOWN, TEXAS MD&A 7 The City's combined net assets increased by $28.5 million to $374.8 million from the restated amount of $346.3 million in FY 2007.  Net assets of the governmental funds were $170.8 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 $16.5 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, 2008 was $3.5 million.  Net assets increased primarily as a result of increases in capital assets and construction in progress. Projects completed during the year included:  Construction of Recreation Center expansion  Animal Shelter kennel additions and triage intake area  City office building improvements  Park Improvements  River Ridge pool renovations  Skate park project  Equipment at various locations  Transportation improvements including:  Design of Oak Tree Bridge  Rehabilitation of Main Street, University to 21st Street  Net assets invested in capital assets net of related debt increased in part due to developer's contributed capital totaling $12.0 million, including $900,000 of street improvements and $11.1 million of utility improvements due to annexations and new residential developments.  Current year net assets of business-type activities increased by $16.3 million, additionally the beginning net assets increased by $16.2 million due to the recognition of the historical valuation of the Electric system by McCord Engineering, developer contributed capital, and increases to capital assets. CITY OF GEORGETOWN, TEXAS MD&A 8  During 2008, the City invested $12.8 million towards improving and expansion of utility infrastructure, compared to $20.3 million in 2007. Projects included:  Electric residential and commercial expansion  Escalera Elevated Storage Tank  Sun City and Park Lift Stations upgrade  Edward’s Aquifer Recharge Zone inflow and infiltration repairs  Main Street line upgrades  Smith Branch/San Gabriel Interconnect  Downtown regional drainage pond 2008 2007 2008 2007 2008 2007 Revenues: Program Revenues Charges for Service $ 6,432 $ 5,538 $ 85,700 $ 72,835 $ 92,132 $ 78,373 Operating Grants & Contributions 493 683 493 683 Capital Grants & Contributions 909 3,655 11,072 8,851 11,981 12,506 General Revenues Property Taxes 12,611 10,738 12,611 10,738 Sales Taxes 13,237 12,206 13,237 12,206 Other Taxes 1,134 1,186 1,134 1,186 Franchise Taxes 2,740 2,083 2,740 2,083 Interest 2,223 2,085 1,019 1,495 3,242 3,580 Other 803 2,295 4,418 3,098 4,418 Total Revenues $ 40,582 $ 38,174 $ 100,086 $ 87,600 $ 140,668 $ 125,774 Expenses: Culture-recreation 6,979 5,460 6,979 5,460 Development 2,458 2,518 2,458 2,518 Fire 5,553 4,962 5,553 4,962 General government 3,605 3,227 3,605 3,227 Interest on long term debt 4,181 2,977 4,181 2,977 Police 9,595 8,252 9,595 8,252 Streets 3,147 5,213 3,147 5,213 Airport 3,460 2,589 3,460 2,589 Electric 48,183 38,936 48,183 38,936 Sanitation 4,316 3,612 4,316 3,612 Stormwater 1,689 1,448 1,689 1,448 Water Services 18,980 17,585 18,980 17,585 Total Expenses $ 35,518 $ 32,609 $ 76,628 $ 64,170 $ 112,146 $ 96,779 Change in net assets before transfers 5,064 5,565 23,458 23,430 28,522 28,994 Transfers 7,130 5,987 (7,130) (5,987) Change in net assets 12,194 11,552 16,329 17,442 28,522 28,994 Net Assets - Beginning 158,643 147,091 187,657 170,215 346,299 317,305 Net Assets - Ending $ 170,836 $ 158,643 $ 203,986 $ 187,657 $ 374,822 $ 346,299 (In thousands) Changes in Net Assets Bus-Type ActivitiesGovtl Activities Total CITY OF GEORGETOWN, TEXAS MD&A 9 REVENUES  For the fiscal year ended September 30, 2008, program revenues from governmental activities totaled $7.8 million, of which $6.4 million resulted from charges for services. Charges for services increased $900,000 over the prior year, primarily due to growth in the municipal court and development fee areas.  General property taxes totaled $12.6 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 3.2%, while total assessed valuation increased 14.8% over the prior year. The variance is attributed to $336 million in new and annexed property.  The ad valorem tax rate for fiscal year 2008 was $0.35659 per $100 of assessed valuation. This is 2.9% less than the FY 2007 actual rate and 4.2% higher than the 2007 effective rate.  Sales taxes, the City’s largest source of general government revenue, totaled $13.2 million for fiscal year 2008, which was an increase of 8% over the prior year. This increase was primarily due to new commercial development within the City, including Wolf Ranch and Rivery area. Sales tax revenues represented 32% of the general revenue total in 2008, excluding transfers from the return on investment transfers from the utility funds.  Hotel/motel taxes and automobile inventory taxes, totaled $1.1 million and were included in other revenue of $1.4 million.  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 $7.8 million, a decrease of 21% over the prior year. This is includes a decrease in streets capital contributions of $2.7 million. 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. CITY OF GEORGETOWN, TEXAS MD&A 10  Business-type activities program revenues totaled $96.8 million, a 18% increase over the prior year. Capital grants and contributions were $2.2 million higher than the prior year, due to increased developments and new subdivisions added. Charges for services were over $13 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 18%. This increase was primarily in the electric rate due to increased purchased power costs, which were passed along to customers, as well as an increase in fuel charges. Other program revenues include airport fuel sales, hangar rentals and stormwater drainage fees. EXPENSES  Expenses for governmental activities totaled $35.5 million, versus $32.6 million in 2007. Major expenses include salaries for providing services in the public safety area, as well as for parks maintenance. Expenses were $2.9 million higher than the prior year. Major increases included the addition of police and fire personnel. Salaries also increased due to a 4.25% cost of living adjustment for all non-civil service staff. Higher fuel costs also contributed to the increase in operational program expenses.  Expenses for business-type activities totaled $76.6 million, a 19.4% 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 is associated with increased purchased power costs, as well as expenses related to additional customers and infrastructure maintenance for the utilities. CITY OF GEORGETOWN, TEXAS MD&A 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS For the fiscal year ended September 30, 2008, the City's governmental funds reflect a combined fund balance of $41 million. This fund balance includes a $1.3 million increase in the 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 charges for services in the park and recreation programs. Interest was less than anticipated due to the downturn in the overall economic and financial market conditions for 2008. Total direct expenditures for public safety totaled $14.6 million. Culture and recreation expenditures for the Library and Parks areas totaled $6.3 million in 2008. General government expenditures included $410,283 of social services contributions to various organizations in the community. Street maintenance expenditures for 2008 were $2.8 million. General Capital Project Fund had a $10.4 million decrease in fund balance for FY2008, due to the timing of projects. The City issued $4.4 million of bond proceeds for projects including Oak Tree Drive Bridge construction, parking lots, building improvements and public safety vehicles and equipment. The City expended $16.4 million in various general capital projects in the above projects along with a Public safety radio system upgrade. Non-major governmental funds include an increase in fund balance of $658,000 due to the funding and timing of street improvement projects in the Sales Tax Maintenance Fund. General Debt Service Fund reflects a decrease of $105,000 in FY2008. This decrease reflects lower property tax collections than anticipated. Georgetown Transportation Enhancement Corporation (GTEC), the City’s blended component unit had a decrease in fund balance of $760,000, due to the timing of capital improvement projects. GTEC contributed $4.6 million in transportation improvements to facilitate economic development in 2008. GENERAL FUND BUDGETARY HIGHLIGHTS: BUDGET ADJUSTMENTS The following is a brief analysis of the budgetary changes in the General Fund from the original to the final budget. The City approved two General Fund budget amendments during fiscal year 2008. The amendments increased overall budgeted expenditures by $354,200 from the original budget, representing a .01%. increase in appropriations. This increase was offset by program revenues and unallocated prior year fund balances. An amendment dated April 8, 2008 increased total General Fund appropriations by $179,200. This amendment related to timing of projects and the outsourcing of inspections approved after final budget was adopted. CITY OF GEORGETOWN, TEXAS MD&A 12 An amendment dated January 13, 2009 increased General Fund appropriations by $175,000. This amendment approved a transfer to the Sanitation Fund to eliminate a deficit balance and enable consolidation of fund in 2008/09. These amendments used fund balance to offset expenditures related to those functions. These amendments did not significantly alter the total budget. The variance between the actual ending fund balance at September 30, 2008 and the final budgetary fund balance is attributed to timing of street maintenance projects and various open positions. CAPITAL ASSETS The City's governmental activities (including a percentage of internal service funds) had invested $210.5 million in a variety of capital assets and infrastructure. The City has $228.5 million invested in its business-type activities capital assets. The detail is reflected in the following schedule: Balance Deletions Balance 9/30/2007 Additions & Transfers 9/30/2008 Non-depreciable Assets: Land $ 4,108 $ 114 $ 4,222 Construction in progress 15,116 18,737 $ (21,967) 11,886 Streets 116,038 16,681 132,719 Other capital assets Equipment 20,613 1,672 (638) 21,647 Buildings 35,621 3,874 39,495 Improvements 19,562 6,538 26,100 Capital lease 452 452 Less accumulated depreciation (22,668) (3,908) 507 (26,069) Capital Assets - Governmental $188,842 $ 43,708 $ (22,098) $ 210,452 Balance Deletions Balance 9/30/2007 Additions & Transfers 9/30/2008 Non-depreciable Assets: Land $ 2,571 - $ 2,571 Construction in progress 6,763 $ 12,873 $ (14,246) 5,390 Other capital assets Equipment 1,066 86 1,152 Buildings 6,949 6,949 Improvements 244,989 28,776 273,765 Less accumulated depreciation (53,787) (7,574) (61,361) Capital Assets - Business-Type $208,551 $ 34,161 $ (14,246) $ 228,466 City-wide Totals $397,393 $ 77,869 $ (36,344) $ 438,918 *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 CITY OF GEORGETOWN, TEXAS MD&A 13 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. This established a base line for inventory reporting under the modified approach for GASB 34 reporting The City financial policy establishes and Council adopted an average condition level of 85 to maintain the streets in “good” condition. The Pavement Condition Index is a measurement scale for pavement condition, ranging from zero (poor) to 100 for pavement in perfect condition. The PCI for fiscal years 2005-2007 was 91. During 2008, the City contracted with Fugro Consultants, Inc. to reassess the condition of the pavement management system. The PCI for 2008 is 93. The City budgets approximately $1.25 million annually of General Fund revenues for on- going street maintenance projects, along with the staff and maintenance costs of the street department. In addition, the City also budgets for the approximate $1.2 million of funds received in 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 2008, funding for electric and water services infrastructure maintenance was $7.5 million. For more detailed notes about the City’s capital assets, please see pages 52-54 of the notes to the financial statements. 2008 2007 2008 2007 2008 2007 General Obligation Bonds $ 69,970 $ 68,856 $ 4,985 $ 4,539 $ 74,955 $ 73,395 Sales tax revenue bonds 11,115 11,330 11,115 11,330 Revenue Bonds 57,280 51,070 57,280 51,070 Obligation under capital lease 13 75 13 75 Compensated absence payable 2,394 2,072 574 555 2,968 2,627 Arbitrage rebate payable 15 15 15 15 Total Long Term Debt $ 83,507 $ 82,348 $ 62,839 $ 56,164 $ 146,346 $ 138,512 Govtl Activities Bus-Type Activities Total City of Georgetown Outstanding Debt and Long-Term Liabilities (In thousands) LONG-TERM DEBT  At September 30, 2008, the City had a total of $75.0 million in general obligation debt outstanding. This represents a 4% increase over prior year. This increase reflects the $750,000 of self-supporting bonds, issued on behalf of the Stormwater Fund for the construction of Oak Tree Drive Bridge, as well as, $4.4 million for parking lots, building improvements and public safety vehicles and equipment. Additional information about the City's long -term debt is presented in Note 6 to the financial statements. CITY OF GEORGETOWN, TEXAS MD&A 14  The state limits the legal amount of tax levy available for general obligation debt service to $1.50 per $100 valuation. The City's 2008 debt levy equaled $0.15337 per $100 assessed valuation, or 11% of the maximum allowed.  Total utility system revenue debt was $57.3 million as of September 30, 2008, including new debt of $9.4 million issued within the Electric Services Fund and Water Services Fund to fund system expansion. This increase is 12% greater than debt reported at September 30, 2007.  A detailed analysis of the City’s long-term debt is located on pages 55-60 in the notes to the financial statements. ECONOMIC FACTORS  Unemployment in the City decreased from 3.8% in 2007 to 4.1% in 2008.  Population continued to grow steadily, at 6% annually, yet utility customer growth averaged approximately 4.5% for all utilities. This variance represents continued growth within the City's extra territorial jurisdiction (ETJ), which receives City utility services.  Retail development continued to expand within the City, which included the opening of Mel’s Bowling Lanes, Montana Mikes, Comfort Inn & Suites and Catfish Parlor. The expansion is evidenced by the overall increase in general sales tax revenue of 9% over 2007. 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. 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, 2008 Primary Government Unit Georgetown Economic Governmental Business-type Development Activities Activities TOTAL Corporation ASSETS: Cash and cash equivalents $ 7,950,765 $ 7,265,197 $ 15,215,962 $ 802,460 Cash and cash equivalents - restricted 232,545 232,545 Investments 36,399,974 14,840,304 51,240,278 1,557,716 Investments - restricted 6,787,483 6,787,483 Prepaid items 2,961 1,780,065 1,783,026 Accounts receivable: Services (net of allowance for uncollectibles) 11,172,167 11,172,167 Other 2,514,096 1,700,137 4,214,233 69,383 Internal balances (24,806) 24,806 0 Inventories 302,480 2,338,825 2,641,305 Long-term note receivable 300,152 2,282,857 2,583,009 Deferred charges - bond issuance costs 1,312,477 1,593,931 2,906,408 Capital assets: net of accumulated depreciation 61,626,807 220,504,448 282,131,255 Land 4,222,114 2,571,661 6,793,775 Streets 132,718,756 132,718,756 Construction in progress 11,884,569 5,390,543 17,275,112 TOTAL ASSETS $ 259,210,345 $ 278,484,969 $ 537,695,314 $ 2,429,559 LIABILITIES AND NET ASSETS: Liabilities: Current Liabilities: Accounts payable $ 4,153,526 $ 9,209,160 $ 13,362,686 Accrued interest 401,667 352,220 753,887 Liabilities payable from restricted assets: Construction contracts and retainages payable 203,037 203,037 Customer deposits 923,087 923,087 Unearned revenue 313,000 972,140 1,285,140 Noncurrent liabilities: Due within one year 5,275,590 4,200,674 9,476,264 $ 46,734 Due in more than one year 78,230,808 58,638,510 136,869,318 1,258,266 Total liabilities 88,374,591 74,498,828 162,873,419 1,305,000 Net Assets: Invested in capital assets (net of related debt) 129,354,365 173,247,297 302,601,662 Restricted for: Debt Service 1,215,234 1,215,234 Capital Projects 23,795,983 23,795,983 Unrestricted 16,470,172 30,738,844 47,209,016 1,124,559 Total net assets 170,835,754 203,986,141 374,821,895 1,124,559 TOTAL LIABILITIES AND NET ASSETS $ 259,210,345 $ 278,484,969 $ 537,695,314 $ 2,429,559 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, 2008 Charges for Operating Grants Capital Grants Expenses Services & Contributions & Contributions Functions/Programs Primary government Governmental Activities Culture-recreation $ 6,978,982 $ 1,391,416 $ 78,369 Development 2,457,868 1,232,533 18,934 Fire 5,553,135 1,044,870 16,298 General government 3,604,501 1,418,786 5,933 $ 909,209 Police 9,595,062 1,344,259 179,269 Streets 3,147,899 193,829 Interest on long term debt 4,181,243 Total governmental activities 35,518,690 6,431,864 492,632 909,209 Business -type Activities Airport $ 3,459,377 $ 3,308,889 $ 27,071 Electric 48,183,299 52,846,962 736,053 Sanitation 4,315,729 4,398,047 Stormwater 1,689,013 1,832,165 3,396,883 Water 18,980,021 23,313,864 6,911,900 Total business-type activities 76,627,439 85,699,927 11,071,907 Total primary government $ 112,146,129 $ 92,131,791 $ 492,632 $ 11,981,116 Component Unit Georgetown Economic & Development Corporation $1,476,758 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, as restated 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 Governmental Business-Type Development Activities Activities Total Corporation $ (5,509,197) $ (5,509,197) (1,206,401) (1,206,401) (4,491,967) (4,491,967) (1,270,573) (1,270,573) (8,071,534) (8,071,534) (2,954,070) (2,954,070) (4,181,243) (4,181,243) (27,684,985) (27,684,985) $ (123,417) $ (123,417) 5,399,716 5,399,716 82,318 82,318 3,540,035 3,540,035 11,245,743 11,245,743 20,144,395 20,144,395 $ (27,684,985) $ 20,144,395 $ (7,540,590) $ (1,476,758) 12,610,638 12,610,638 13,236,686 13,236,686 916,625 1,134,493 1,134,493 2,739,567 2,739,567 2,222,952 1,018,860 3,241,812 90,424 803,334 2,295,472 3,098,806 7,129,529 (7,129,529) 39,877,199 (3,815,197) 36,062,002 1,007,049 12,192,214 16,329,198 28,521,412 (469,709) 158,643,540 187,656,943 346,300,483 1,594,268 $ 170,835,754 $ 203,986,141 $ 374,821,895 $ 1,124,559 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, 2008 GEORGETOWN TRANSPORTATION GENERAL NONMAJOR TOTAL ENHANCEMENT DEBT CAPITAL GOVERNMENTAL GOVERNMENTAL GENERAL CORPORATION SERVICE PROJECTS FUNDS FUNDS ASSETS Cash and cash equivalents $ 3,955,465 $ 1,820,280 $ 1,311,553 7,087,298$ Investments 7,698,596 $ 19,730,412 $ 1,215,378 3,533,484 2,545,962 34,723,832 Accounts receivable (net of allowance for uncollectible accounts): Delinquent taxes 186,033 134,774 320,807 Sales tax 597,610 265,604 164,807 1,028,021 Grants 76,942 76,942 Other 656,992 196,329 137,924 991,245 Inventories 6,578 6,578 Long-term note receivable 300,152 300,152 TOTAL ASSETS $ 13,401,426 $ 19,996,016 $ 1,350,152 $ 5,550,093 $ 4,237,188 44,534,875$ LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 1,102,766 $ 354,608 $ 1,278,621 $ 143,435 2,879,430$ Due to other funds 24,806 24,806 Unearned revenue 356,165 $ 126,065 116,897 25,971 625,098 Total liabilities $ 1,458,931 $ 354,608 $ 126,065 $ 1,395,518 $ 194,212 3,529,334$ Fund Balance: Reserved for: Encumbrances $ 949,165 $ 1,468,360 $ 8,853 $ 4,154,575 $ 566,094 7,147,047$ Inventories/prepaid items 6,578 6,578 Debt service 1,215,234 1,215,234 Special programs 3,476,882 3,476,882 Capital projects funds 18,173,048 18,173,048 Unreserved, reported in: General fund 10,986,752 10,986,752 Total fund balance $ 11,942,495 $ 19,641,408 $ 1,224,087 $ 4,154,575 $ 4,042,976 41,005,541$ TOTAL LIABILITIES AND FUND BALANCE $ 13,401,426 $ 19,996,016 $ 1,350,152 $ 5,550,093 $ 4,237,188 44,534,875$ 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, 2008 Total fund balance - total governmental funds $ 41,005,541 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 governmental funds balance sheet.202,064,658 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.9,879,182 Premiums, discounts and debt issuance costs have not been included in the fund financial statements. 1,312,477 Bonds payable and contractual obligations are not due and payable in the current period therefore have not been included in the fund financial statements. (81,085,050) Accrued liabilities for compensated absences are not due and payable in the current period therefore have not been included in the fund financial statements. (2,224,004) Capital leases are not due and payable in the current period, therefore have not been included in the fund financial statements. (12,831) 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.312,098 Interest is accrued on outstanding debt in the government-wide financial statements, whereas in the fund financial statements interest expense is reported when due. (401,667) Net Assets of Governmental Activities $ 170,835,754 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, 2008 GEORGETOWN TRANSPORTATION GENERAL NONMAJOR TOTAL ENHANCEMENT DEBT CAPITAL GOVERNMENTAL GOVERNMENTAL GENERAL CORPORATION SERVICE PROJECTS FUNDS FUNDS REVENUES: Property taxes: Current $ 7,288,031 $ 5,255,186 $ 12,543,217 Delinquent 57,783 33,252 91,035 Penalties and interest 69,257 69,257 Other 322,961 $ 440,581 763,542 Property assessment 210,659 210,659 Sales tax 7,736,933 $ 3,666,502 1,833,251 13,236,686 Franchise taxes 2,739,567 2,739,567 Licenses and permits 1,158,433 1,158,433 Charges for service 2,193,590 95,903 2,289,493 Fines and forfeitures 1,013,699 97,116 1,110,815 Donations and grants 28,927 269,876 298,803 Investment income 436,575 986,310 92,231 $ 566,838 140,998 2,222,952 Other revenue 1,406,736 756,302 205,879 454,337 2,823,254 Total revenues 24,452,492 5,409,114 5,380,669 772,717 3,542,721 39,557,713 EXPENDITURES: Current: Culture - recreation 5,564,579 761,201 6,325,780 Development 2,411,971 42,839 2,454,810 Fire services 5,271,624 108,623 5,380,247 General government 2,738,903 299,973 3,038,876 Highways and streets 2,768,367 2,768,367 Police 8,915,180 307,524 9,222,704 Capital outlay 3,538,839 16,363,547 1,720,460 21,622,846 Debt service: Principal retirement 215,000 3,280,684 3,495,684 Interest and fiscal charges 595,948 3,798,821 85,735 4,480,504 Total expenditures 27,670,624 4,649,760 7,079,505 16,449,282 2,940,647 58,789,818 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,218,132) 759,354 (1,698,836) (15,676,565) 602,074 (19,232,105) OTHER FINANCING SOURCES (USES): Transfers in 6,687,060 1,593,710 1,775,698 140,284 10,196,752 Transfers out (2,091,633) (1,566,314) (915,474) (84,723) (4,658,144) Sale of property 47,029 47,029 Bonds issued 4,395,000 4,395,000 Total other financing sources (uses) 4,595,427 (1,519,285) 1,593,710 5,255,224 55,561 9,980,637 NET CHANGE IN FUND BALANCES 1,377,295 (759,931) (105,126) (10,421,341) 657,635 (9,251,468) FUND BALANCES, Beginning of period 10,565,200 20,401,339 1,329,213 14,575,916 3,385,341 50,257,009 FUND BALANCES, End of period $ 11,942,495 $ 19,641,408 $ 1,224,087 $ 4,154,575 $ 4,042,976 $ 41,005,541 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, 2008 Net change in fund balances - governmental funds $ (9,251,468) 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 2008, which is allocated to governmental activities 1,244,674 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 $21,967,575 in construction in progress reclassifications. The effect of removing the 2008 capital outlays is to increase net assets.23,156,195 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.(2,119,486) 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.(104,039) 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-wide financial statements.3,557,797 The notes to financial statements are an integral part of this statement. (continued) Current year bond proceeds on bonds ($4,395,000) and related debt issuance costs ($85,735) are not shown as revenue and expenditures in the government-wide financial statements.$ (4,309,265) Interest is accrued on outstanding debt in the government-wide financia statements, whereas in the fund financial statements, the expenditure is reported when due.255,452 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.(305,067) 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.67,421 Change in Net Assets of Governmental Activities $ 12,192,214 CITY OF GEORGETOWN, TEXAS GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 2008 2008 ACTUAL BUDGETARY VARIANCE TO ORIGINAL FINAL BASIS FINAL BUDGET REVENUES: Property taxes : Current $ 7,330,265 $ 7,330,265 $ 7,288,031 $ (42,234) Delinquent 50,000 50,000 57,783 7,783 Penalties and interest 30,000 30,000 69,257 39,257 Sales tax 7,415,000 7,415,000 7,736,933 321,933 Franchise taxes 2,579,169 2,579,169 2,739,567 160,398 Licenses and permits 1,465,825 1,465,825 1,195,446 (270,379) Charges for services 2,073,810 2,073,810 2,163,801 89,991 Fines and forfeitures 1,018,200 1,018,200 1,013,699 (4,501) Other taxes 184,100 184,100 322,961 138,861 Investment income 405,000 405,000 422,901 17,901 Miscellaneous 639,900 639,900 1,773,166 1,133,266 Total revenues 23,191,269 23,191,269 24,783,545 1,592,276 EXPENDITURES: Current: Culture - recreation 5,599,637 5,690,637 5,634,835 55,802 Development 2,568,408 2,623,408 2,455,532 167,876 Fire services 5,719,136 5,719,136 5,311,478 407,658 General government 3,402,156 3,379,756 2,734,484 645,272 Highways and streets 3,202,940 3,236,940 2,630,784 606,156 Police services 9,606,189 9,627,789 9,003,559 624,230 Total expenditures 30,098,466 30,277,666 27,770,672 2,506,994 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (6,907,197) (7,086,397) (2,987,127) 4,099,270 OTHER FINANCING SOURCES (USES): Transfers in 6,472,549 6,472,549 6,687,060 214,511 Transfers out (2,050,202) (2,225,202) (2,091,633) 133,569 Total other financing sources (uses) 4,422,347 4,247,347 4,595,427 348,080 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING (USES) (2,484,850) (2,839,050) 1,608,300 4,447,350 FUND BALANCES, Beginning of period 8,376,647 8,730,847 9,405,370 674,523 FUND BALANCES, End of period $ 5,891,797 $ 5,891,797 11,013,670 $ 5,121,873 Adjustments to GAAP: Reverse current year encumbrances 949,165 Record net unrealized gain on investments (20,340) FUND BALANCE - GAAP BASIS, End of period $ 11,942,495 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, 2008 WATER OTHER ELECTRIC SERVICES ENTERPRISE GOVERNMENTAL ACTIVITIES FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS ASSETS: Current Assets: Cash and cash equivalents 6,643,715$ 621,482$ 7,265,197$ 863,467$ Cash and cash equivalents - restricted 232,545 737,818 970,363 Investments 12,896,623 1,205,863 14,102,486 1,676,142 Investments - restricted 6,787,483 6,787,483 Prepaid expenses 1,780,065 1,780,065 2,961 Accounts receivable: Services (net of allowance for uncollectibles) 7,239,339$ 3,072,176 860,652 11,172,167 97,081 Other 105,409 1,594,728 1,700,137 Due from other funds 430,515 430,515 Inventories 2,316,531 22,294 2,338,825 295,902 Total current assets 9,661,279 33,437,850 3,448,109 46,547,238 2,935,553 Noncurrent Assets: Long-term note receivables 2,282,857 2,282,857 Deferred charges - bond issuance costs 621,788 800,643 171,500 1,593,931 Capital assets: Land and land rights 1,120,807 469,354 981,500 2,571,661 217,118 Distribution system 98,185,648 147,771,057 21,592,012 267,548,717 Buildings and improvements 73,707 3,019,794 10,071,597 13,165,098 3,954,072 Machinery, furniture and equipment 609,614 310,775 231,200 1,151,589 16,352,866 Construction in progress 156,828 5,123,509 110,206 5,390,543 113,646 Less accumulated depreciation (19,780,555) (33,640,166) (7,940,235) (61,360,956) (12,250,114) Total capital assets (net of accumulated depreciation)80,366,049 123,054,323 25,046,280 228,466,652 8,387,588 Total noncurrent assets 80,987,837 126,137,823 25,217,780 232,343,440 8,387,588 TOTAL ASSETS 90,649,116$ 159,575,673$ 28,665,889$ 278,890,678$ 11,323,141$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities: Accounts payable 7,298,039$ 1,436,055$ 475,066$ 9,209,160$ 1,274,096$ Compensated absence 94,592 90,505 32,678 217,775 60,734 Due to other funds 316,514 89,195 405,709 Current portion of long-term debt 1,342,996 2,297,004 342,899 3,982,899 Accrued interest 121,046 202,739 28,435 352,220 Total current liabilities payable from unrestricted assets 9,173,187 4,026,303 968,273 14,167,763 1,334,830 Current liabilities payable from restricted assets: Construction contracts and retainages payable 203,037 203,037 Customer deposits 923,087 923,087 Total current liabilities payable from restricted assets 923,087 203,037 1,126,124 Total current liabilities 10,096,274 4,229,340 968,273 15,293,887 1,334,830 Noncurrent liabilities: Compensated absence 150,285 149,114 57,060 356,459 109,129 Unearned revenue 972,140 972,140 Long-term debt 23,281,954 30,358,046 4,642,051 58,282,051 Total noncurrent liabilities 23,432,239 31,479,300 4,699,111 59,610,650 109,129 Total liabilities 33,528,513 35,708,640 5,667,384 74,904,537 1,443,959 Net Assets: Invested in capital assets (net of related debt) 55,741,099 96,707,051 20,799,147 173,247,297 8,387,588 Unrestricted 1,379,504 27,159,982 2,199,358 30,738,844 1,491,594 Total net assets 57,120,603 123,867,033 22,998,505 203,986,141 9,879,182 TOTAL LIABILITIES AND NET ASSETS 90,649,116$ 159,575,673$ 28,665,889$ 278,890,678$ 11,323,141$ 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, 2008 WATER OTHER GOVERNMENTAL ELECTRIC SERVICES ENTERPRISE ACTIVITIES FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS OPERATING REVENUES: Charges for sales and services: Service charges 11,466,994$ Electric 51,833,477$ 51,833,477$ Water 14,001,707$ 14,001,707 Wastewater 7,423,190 4,320,335$ 11,743,525 Other 1,013,485 1,888,967 5,218,766 8,121,218 Total operating revenues 52,846,962 23,313,864 9,539,101 85,699,927 11,466,994 OPERATING EXPENSES: Electric 1,230,199 1,230,199 Water 6,249,197 6,249,197 Depreciation 2,994,216 3,614,886 964,709 7,573,811 1,788,312 Utility contracts 42,790,537 5,625,261 4,282,685 52,698,483 Plant management 2,027,713 2,027,713 Other 3,986,375 3,986,375 11,433,543 Total operating expenses 47,014,952 17,517,057 9,233,769 73,765,778 13,221,855 NET OPERATING INCOME (LOSS) 5,832,010 5,796,807 305,332 11,934,149 (1,754,861) NONOPERATING REVENUES (EXPENSES): Investment earnings 110,368 845,312 63,180 1,018,860 149,599 Donations and grants 27,071 27,071 Interest and fiscal charges (1,168,347) (1,462,964) (230,350) (2,861,661) Gain (loss) on disposed assets (22,159) Other 1,094,292 1,149,468 51,712 2,295,472 371,965 Total nonoperating revenues (expenses) 36,313 531,816 (88,387) 479,742 499,405 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 5,868,323 6,328,623 216,945 12,413,891 (1,255,456) CONTRIBUTIONS AND TRANSFERS: Capital contributions 736,053 6,911,900 3,396,883 11,044,836 909,209 Transfers in 86,161 175,600 261,761 1,732,377 Transfers out (4,669,681) (2,413,416) (308,193) (7,391,290) (141,456) Total contributions and transfers (3,847,467) 4,498,484 3,264,290 3,915,307 2,500,130 CHANGE IN NET ASSETS 2,020,856 10,827,107 3,481,235 16,329,198 1,244,674 TOTAL NET ASSETS - beginning 55,099,747 113,039,926 19,517,270 187,656,943 8,634,508 TOTAL NET ASSETS - ending 57,120,603$ 123,867,033$ 22,998,505$ 203,986,141$ 9,879,182$ 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, 2008 WATER OTHER GOVERNMENTAL ELECTRIC SERVICES ENTERPRISE ACTIVITIES FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers 54,198,040$ 23,525,125$ 9,703,288$ 87,426,453$ 11,549,302$ Payments to suppliers (40,822,561) (11,071,396) (7,581,760) (59,475,717) (5,248,047) Franchise fees (1,118,612) (462,478) (127,886) (1,708,976) Payments to employees for services (714,479) (1,640,161) (557,586) (2,912,226) (5,693,466) Net cash provided by operating activities 11,542,388 10,351,090 1,436,056 23,329,534 607,789 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 86,161 175,600 261,761 1,732,377 Transfers out (4,669,681) (2,413,416) (308,193) (7,391,290) (141,456) Payments from (to) other funds 316,514 1,222,305 13,029 1,551,848 Net cash provided by (used for) noncapital financing activities (4,267,006) (1,191,111) (119,564) (5,577,681) 1,590,921 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (10,146,814) (6,499,391) (291,902) (16,938,107) (1,474,507) Donations and grants 27,071 27,071 Impact fees 1,138,771 1,138,771 Proceeds from issuance of long-term debt 1,977,150 7,437,850 750,000 10,165,000 Principal paid on revenue and certificates of obligation bonds (1,152,630) (2,047,370) (294,315) (3,494,315) Interest paid on revenue and certificates of obligation bonds (1,028,656) (1,520,921) (238,421) (2,787,998) Net cash used for capital and related financing activities (10,350,950) (1,491,061) (47,567) (11,889,578) (1,474,507) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 110,368 845,312 63,180 1,018,860 149,599 Change in temporary investments 2,817,347 (5,185,134) (127,562) (2,495,349) (210,232) Net cash provided by (used for) investing activities 2,927,715 (4,339,822) (64,382) (1,476,489) (60,633) Net increase (decrease) in cash and cash equivalents (147,853) 3,329,096 1,204,543 4,385,786 663,570 Cash and cash equivalents at beginning of year 147,853 3,547,164 154,757 3,849,774 199,897 Cash and cash equivalents at end of year 6,876,260 1,359,300 8,235,560 863,467 Classified as: Current assets 6,643,715 621,482 7,265,197 863,467 Restricted assets 232,545 737,818 970,363 Total $ 6,876,260$ 1,359,300$ 8,235,560$ 863,467$ Non-cash disclosure Developer contributions 736,053$ 6,911,900$ 3,396,883$ 11,044,836$ Proprietary transfers to internal service funds 132,646$ Governmental transfers to internal service funds 776,563 The City issued capital bonds to refund debt issued in 1998 The $7,055,000 proceeds were deposited immediately into an irrevocable trust for the defeasement of $7,060,000 of outstanding revenue bond principle and $1,286,078 of interest. The notes to the financial statements are an integral part of this statement.(continued) CITY OF GEORGETOWN, TEXAS STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 WATER OTHER GOVERNMENTAL ELECTRIC SERVICES ENTERPRISE ACTIVITIES FUND FUND FUNDS TOTAL INTERNAL SERVICE FUNDS OPERATING INCOME (LOSS)5,832,010$ 5,796,807$ 305,332$ 11,934,149$ (1,754,861)$ Adjustments to reconcile operating income (loss) to cash provided by operating activities: Depreciation 2,994,216 3,614,886 964,709 7,573,811 1,788,312 Other income 1,094,292 145,807 51,712 1,291,811 371,965 Bad debt expense (31,347)(12,147)(4,572)(48,066) Increase (decrease) in unearned revenue (1,023,526)(1,023,526) Decrease (increase) in prepaid expenses (173,005)(173,005)4,675 Decrease (increase) in inventories (120,581)26,005 (94,576)(22,644) Decrease (increase) in accounts receivable 261,033 100,746 117,047 478,826 (10,636) Decrease (increase) in customer deposits 27,100 27,100 Decrease (increase) in notes receivable 1,000,381 1,000,381 Increase (decrease) in accounts payable 1,505,869 864,783 (26,869)2,343,783 214,204 Increase (decrease) in compensated absences payable (20,204)36,358 2,692 18,846 16,774 Net cash provided by operating activities 11,542,388$ 10,351,090$ 1,436,056$ 23,329,534$ 607,789$ CITY OF GEORGETOWN, TEXAS STATEMENT OF FIDUCIARY NET ASSETS AGENCY FUNDS AS OF SEPTEMBER 30, 2008 ASSETS: Cash and cash equivalents $ 33,482 Accounts receivable 892,948 TOTAL ASSETS $ 926,430 LIABILITIES: Accounts payable $ 39,473 Due to other governments 886,957 TOTAL LIABILITIES $ 926,430 The notes to the financial statements are an integral part of this statement. Notes Section Notes to the Financial Statements CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 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, under the Texas Development Act of 1979 for the purpose CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 37 of promoting, assisting, and 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. GEDCO is audited as part of the City of Georgetown; however, separately issued unaudited financial statements are available through the City of Georgetown’s Finance Department. 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 38 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. 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. 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, 2008 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 40 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 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 41 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 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, purchased power, grant expenditures 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 governmental and proprietary 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, 2008. Interest earnings are then allocated to each fund based on average monthly pooled equity balances. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 42 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. Restricted assets consist of cash and investments, including customer deposits. 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, 2008 was $972,137 in the Water Services Fund and $300,152 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 $2,282,857, which also includes long term tap repayment plans from customers of $5,720 and $1,305,000 due from GEDCO. At September 30, 2008, the city has an outstanding receivable from Simon Properties for $1.5 million in conjunction with obligations related to the Wolf Ranch Development Agreement. As part of that agreement, Simon was required to pay for all utility infrastructure costs that exceeded $3.5 million. With the completion of the South San Gabriel Wastewater Interceptor in 2008, the last infrastructure project related to the development, Simon’s costs totaled $5 million, exceeding the $3.5 million by $1.5 million. The City is considering legal action to recover the full amount owed under the Agreement. I. Inventories and Prepaids Inventories consist of electric materials, motor fuel, office and other supplies valued at the weighted average cost method and are recognized as expenditures or expenses when used. The prepaid items consist of required payments made to vendor for a contract in the following fiscal year. 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 Services Fund and interfund payables of the deficit fund. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 43 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 will not receive payment of sick leave, unless they have a balance that originated prior to October 1, 2004. These employees were grandfathered under the old policy of receiving payment for half of their balance of sick leave up to 120 days at the rate of pay when the hours were banked. 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 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 44 Interest incurred during the construction phase of capital assets of business-type activities is capitalized. No interest was capitalized in enterprise funds during the 2008 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 2008 were $11,044,836 and $909,209 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 2008. 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 fiscal year 2008 is 93. The previous score for 2005-2007 was 91. This will be re- evaluated in 2011. 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. PCI Rating 100 - 85 Good 84 - 45 Fair 44 - 0 Poor CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 45 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. 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. 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 2008, 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 46 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, 2008, 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 and prepaid items- assets such as supplies, fuel and prepaid expenses that are unavailable for spending.  Special Programs - funds relating to grants, hotel/motel tax, and other restricted sources. V. Prior Period Adjustment The City is restating net assets as of October 1, 2007 due to recognizing a capital asset in the Electric fund that was previously accounted for as an expense: Government Wide Statement of Net Assets: Net Assets, October 1, 2007, as previously recorded 330,151,481$ McCord Engineering historical valuation 16,149,002 Net Assets, October 1, 2007, as restated 346,300,483$ Electric Fund Statement of Net Assets: Net Assets, October 1, 2007, as previously recorded 38,950,745$ McCord Engineering historical valuation 16,149,002 Net Assets, October 1, 2007, as restated 55,099,747$ CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 47 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 statutes 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 102% of the bank deposits not covered by federal deposit insurance. At year-end, the carrying amount of the City’s bank deposits was $1,664,626 and the bank balances were a negative $138,240 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 City’s discretely presented component unit had a carrying amount of $80,584 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, 2008, 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, 2008 48 The City’s investments carried at fair value as of September 30, 2008, are: Credit Risk – In compliance with the City’s Investment Policy, as of September 30, 2008, 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. 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. Fair Weighted Average Value Maturity (days) Investments U S Government Agency Securities $ 47,202,371 225 U.S. Treasury Plus MMKT Fund - Chase (sweep) 3,281,997 1 Texas Local Government Investment Pool (TexPool) 2,206,182 1 Texas Short Term Asset Reserve Program (TexSTAR) 19,121,092 1 Total Fair Value of Investments:$71,811,642 Portfolio weighted average maturity:148 Carrying Amount $1,664,626 Total Cash & Investments:$73,476,268 Fair Weighted AverageValue Maturity (days) Investments U S Government Agency Securities $1,255,478 109 Texas Short Term Asset Reserve Program (TexSTAR) 1,024,114 1 Total Fair Value of Investments:$2,279,592 Portfolio weighted average maturity:69 Carrying Amount $80,584 Total Cash & Investments:$2,360,176 Primary Government Component Unit CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 49 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 $15,137 less than the book value for the pools at September 30, 2008. During 2008, 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 increase in the fair value of investments held at year-end of $134,126. 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, 2008 was $8,003. 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, 2008, was $.35659 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. 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 50 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 51 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. The net transfers between the governmental types and business types total $7,129,529. 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. Interfund Interfund Receivables Payables MAJOR FUNDS: Electric fund $316,514 Water Services fund $ 430,515 Total major funds 430,515 316,514 NONMAJOR FUNDS: Library SRF 24,806 Sanitation funds 89,195 Total nonmajor funds 114,001 TOTAL INTERFUND RECEIVABLES & PAYABLES $ 430,515 $ 430,515 Major Funds Nonmajor Funds General Fund Debt Service Gen. Capital Projects Nonmajor Funds Internal Services Electric Nonmajor Enterprise Funds TOTAL TRANSFERS OUT Governmental Funds: Major Funds T General fund 1,539,165$ 115,951$ 261,517$ 175,000$ 2,091,633$ R GTEC 1,566,314$ 1,566,314 A Gen. capital projects 915,474 915,474 N S Nonmajor Funds F Special revenue funds (SRFs) 20,000$ 40,000 21,633 3,090 84,723 E Internal service funds 27,396 90,000 2,700 20,760 600 141,456 R S Enterprise Funds: Major funds O Electric 4,257,717 49,428 362,536 4,669,681 U Water services 2,123,060 54,195 150,000 86,161$ 2,413,416 T Nonmajor funds Nonmajor enterprise funds 286,283 2,910 19,000 308,193 TOTAL TRANSFERS IN 6,687,060$ 1,593,710$ 1,775,698$ 140,284$ 1,732,377$ 86,161$ 175,600$ 12,190,890 Transfers eliminated in Government-wide statements: (5,061,361) Net Transfers: 7,129,529$ Governmental Funds Nonmajor FundsMajor Funds T R A N S F E R S I N Enterprise Funds CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 52 5. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2008 was as follows: Balance as restated Deletions Balance 10/01/07 Additions & Transfers 9/30/08 Governmental activities: Capital assets not being depreciated Land $ 4,108,135 $ 113,979 $ 4,222,114 Streets 116,037,400 16,681,356 132,718,756 Construction in progress 15,114,922 18,737,222 $ (21,967,575) 11,884,569 Total capital assets not being depreciated 135,260,457 35,532,557 (21,967,575) 148,825,439 Capital assets being depreciated Equipment 20,614,093 1,671,629 (638,068) 21,647,654 Buildings 35,621,352 3,874,031 39,495,383 Improvements 19,562,228 6,538,055 26,100,283 Capital Lease 452,109 452,109 Total capital assets being depreciated 76,249,782 12,083,715 (638,068) 87,695,429 Less accumulated depreciation for: Equipment (11,598,047) (2,354,767) 507,125 (13,445,689) Buildings (4,802,861) (748,379) (5,551,240) Improvements (6,086,197) (804,652) (6,890,849) Capital lease (180,844) (180,844) Total accumulated depreciation (22,667,949) (3,907,798) 507,125 (26,068,622) Total capital assets being depreciated, net 53,581,833 8,175,917 (130,943) 61,626,807 Governmental activities capital assets, net $188,842,290 $ 43,708,474 $ (22,098,518) $ 210,452,246 Electric activities: Capital assets not being depreciated Land $ 1,120,807 $ $ 1,120,807 Construction in progress 3,080,700 6,108,435 $ (9,032,307) 156,828 Total capital assets not being depreciated 4,201,507 6,108,435 (9,032,307) 1,277,635 Capital assets being depreciated Equipment 572,308 37,306 609,614 Buildings 73,707 73,707 Improvements 84,880,023 13,305,625 98,185,648 Total capital assets being depreciated 85,526,038 13,342,931 - 98,868,969 Less accumulated depreciation for: Equipment (504,030) (46,975) (551,005) Buildings (19,679) (1,644) (21,323) Improvements (16,262,630) (2,945,597) (19,208,227) Total accumulated depreciation (16,786,339) (2,994,216) (19,780,555) Total capital assets being depreciated, net 68,739,699 10,348,715 - 79,088,414 Electric activities capital assets, net $72,941,206 $ 16,457,150 $ (9,032,307) $ 80,366,049 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 53 Balance as restated Deletions Balance 10/1/07 Additions & Transfers 9/30/08 Water services activities: Capital assets not being depreciated Land $ 469,354 $ 469,354 Construction in progress 2,739,563 $ 6,537,100 $ (4,153,154) 5,123,509 Total capital assets not being depreciated 3,208,917 6,537,100 (4,153,154) 5,592,863 Capital assets being depreciated Equipment 289,785 20,990 310,775 Buildings 3,019,794 3,019,794 Improvements 136,757,654 11,013,403 147,771,057 Total capital assets being depreciated 140,067,233 11,034,393 - 151,101,626 Less accumulated depreciation for: Equipment (226,852) (18,992) (245,844) Buildings (1,348,300) (93,476) (1,441,776) Improvements (28,450,128) (3,502,418) (31,952,546) Total accumulated depreciation (30,025,280) (3,614,886) (33,640,166) Total capital assets being depreciated, net 110,041,953 7,419,507 - 117,461,460 Water services activities capital assets, net $113,250,870 $ 13,956,607 $ (4,153,154) $ 123,054,323 Other nonmajor business type activities: Capital assets not being depreciated Land $ 981,500 $ 981,500 Construction in progress 942,807 $ 227,644 $ (1,060,245) 110,206 Total capital assets not being depreciated 1,924,307 227,644 (1,060,245) 1,091,706 Capital assets being depreciated Equipment 203,627 27,573 231,200 Buildings 3,856,218 3,856,218 Improvements 23,350,265 4,457,126 27,807,391 Total capital assets being depreciated 27,410,110 4,484,699 - 31,894,809 Less accumulated depreciation for: Equipment (187,971) (12,461) (200,432) Buildings (1,194,381) (952,248) (2,146,629) Improvements (5,593,174) (5,593,174) Total accumulated depreciation (6,975,526) (964,709) (7,940,235) Total capital assets being depreciated, net 20,434,584 3,519,990 - 23,954,574 Other nonmajor business-type activities capital assets, net $ 22,358,891 $ 3,747,634 $ (1,060,245) $ 25,046,280 Total Business-type activities: Capital assets not being depreciated Land $ 2,571,661 $ - $ 2,571,661 Construction in progress 6,763,070 12,873,179 $ (14,245,706) 5,390,543 Total capital assets not being depreciated 9,334,731 12,873,179 (14,245,706) 7,962,204 Capital assets being depreciated Equipment 1,065,720 85,869 - 1,151,589 Buildings 6,949,719 - - 6,949,719 Improvements 244,987,942 28,776,154 - 273,764,096 Total capital assets being depreciated 253,003,381 28,862,023 - 281,865,404 Less accumulated depreciation for: Equipment (918,853) (78,428) (997,281) Buildings (2,562,360) (1,047,368) (3,609,728) Improvements (50,305,932) (6,448,015) (56,753,947) Total accumulated depreciation (53,787,145) (7,573,811) (61,360,956) Total capital assets being depreciated, net 199,216,236 21,288,212 - 220,504,448 Total business-type activities capital assets, net $ 208,550,967 $ 34,161,391 $ (14,245,706) $ 228,466,652 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 54 Depreciation expense was charged to function/programs of the primary government as follows: Invested in Capital Assets (net of related debt): Governmental activities: Culture-recreation $ 687,933 Development 7,370 Fire 88,426 General government 658,290 Highways & streets 397,542 Police 279,926 Internal service funds 1,788,312 Total depreciation expense governmental activities $ 3,907,798 Business-type activities: Electric $ 2,994,216 Water services 3,614,886 Nonmajor 964,709 Total depreciation expense business-type activities $ 7,573,811 GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITES TOTAL Invested in capital assets (net of related debt) Total capital assets (net of accumulated depreciation) 210,452,246$ 228,466,652$ 438,918,898$ Add unspent bond proceeds 7,045,595 7,045,595 Less long-term debt (81,097,881) (62,264,950) (143,362,831) Invested in capital assets (net of related debt) 129,354,365$ 173,247,297$ 302,601,662$ CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 55 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, 2008: Fiscal Year Ending September 30 Principal Interest Principal Interest Principal Interest 2009 4,467,101$ 3,512,337$ 3,982,899$ 2,841,733$ 8,450,000$ 6,354,070$ 2010 4,618,990 3,276,111 4,276,010 2,447,677 8,895,000 5,723,788 2011 4,664,292 3,098,869 4,045,708 2,286,583 8,710,000 5,385,452 2012 4,655,043 2,910,015 4,114,957 2,127,357 8,770,000 5,037,372 2013 4,856,069 2,718,338 3,943,931 1,966,191 8,800,000 4,684,529 2014-2018 24,549,422 10,548,440 18,980,578 7,435,809 43,530,000 17,984,249 2019-2023 21,133,676 5,497,859 14,636,323 3,784,199 35,769,999 9,282,058 2024-2028 12,140,457 1,211,922 8,284,544 970,860 20,425,001 2,182,782 81,085,050$ 32,773,891$ 62,264,950$ 23,860,409$ 143,350,000$ 56,634,300$ Governmental TotalBusiness-type Balance Balance October 1, September 30, Due within 2007 Additions Retirements 2008 one year Governmental activities: General obligation bonds $ 68,855,734 $ 4,395,000 $ (3,280,684) $ 69,970,050 $ 4,067,101 (payable from tax pledge) Sales tax revenue bonds 11,330,000 (215,000) 11,115,000 400,000 Compensated absences 2,072,026 1,009,998 (688,157) 2,393,867 795,658 Obligation under capital lease 74,944 (62,113) 12,831 12,831 Arbitrage rebate payable 14,650 14,650 Total governmental activities 82,347,354 5,404,998 (4,245,954) 83,506,398 5,275,590 Business-type activities: Revenue bonds 51,070,000 16,470,000 (10,260,000) 57,280,000 3,640,000 Compensated absences 555,387 224,936 (206,089) 574,234 217,775 General obligation bonds 4,539,267 750,000 (304,317) 4,984,950 342,899 (payable from airport and stormwater revenues) Total business-type activities 56,164,654 17,444,936 (10,770,406) 62,839,184 4,200,674 TOTAL LONG-TERM DEBT $ 138,512,008 $ 22,849,934 $ (15,016,360) $ 146,345,582 $ 9,476,264 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 56 B. General Obligation Debt A summary of Tax-Supported General Obligation Debt outstanding at September 30, 2008 follows: $5,220,000, 1998 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2018; interest at 4% to 5%; portion refunded 2007 (portion included below) $ 1,391,045 $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) 240,240 $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% 65,000 $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%; portion refunded 2007 1,205,000 $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 1,338,478 $985,000, 2004 Limited tax notes due in annual installments through February 15, 2011; interest at 2.5% to 4.0% 185,000 $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) 2,600,000 $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) 12,663,434 $7,100,000, 2005A General obligation and Refunding bonds due in annual installments through August 15, 2025; interest at 3.5% to 4.75% 6,580,000 $4,135,000, 2006 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2026; interest at 4% to 4.625% 3,400,000 $13,070,000, 2007 General obligation and Refunding bonds due in annual installments through August 15, 2027; interest at 4% to 4.625% (portion included below) 12,455,330 $8,200,000, 2007 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2027; interest at 4% to 4.5% (portion included below) 7,270,000 $4,395,000, 2008 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2028; interest at 3.5% to 4.625% (portion included below) 4,395,000 Subtotal Tax-Supported General Obligation Debt $ 53,788,527 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 57 A summary of Self-Supporting General Obligation Debt outstanding at September 30, 2008: $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 Stormwater Drainage Improvements, $2,274,059, to be paid through monthly fees charged to utility customers within City limits; portion refunded 2007 $ 1,183,955 $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 89,760 $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 2,510,000 $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 456,522 $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; designated for GTEC capital improvements to be paid through revenues from the ½ cent GTEC sales tax 495,000 $435,000, 2005 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2025; interest at 3% to 4.5%; to be paid through monthly Stormwater Drainage fees charged to utility customers within City limits 390,000 $1,804,835, 2005 General obligation and Refunding bonds due in annual installments through August 15, 2020; interest at 3% to 4.75%; portion dedicated for Airport Improvements, $1,240,200, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements, $457,840, to be paid through monthly fees charged to utility customers within City limits 1,626,570 $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 3,725,000 $7,830,00, 2006 Combination tax & revenue refunding bonds due in annual installments through August 15, 2024; interest at 4.2% to 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 $439,666, 2007 General obligation and Refunding bonds due in annual installments through August 15, 2021; interest at 4% to 4.625%; portion dedicated for Airport Improvements, $23,855, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements, $415,811, to be paid through monthly fees charged to utility customers within City limits 7,830,000 1,165,000 439,666 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 58 $515,000, 2007 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2027; interest at 4% to 4.5%; to be paid through monthly Sanitation fees charged to utility customers within City limits 505,000 $750,000, 2008 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2028; interest at 3.5% to 4.625%; to be paid through monthly Stormwater Drainage fees charged to utility customers within City limits 750,000 Subtotal Self-Supporting General Obligation Debt $ 21,166,473 Total outstanding General Obligation Debt as of September 30, 2008 $ 74,955,000 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, 2008, the outstanding balance of the defeased bonds is $17,590,000. D. Sales Tax Revenue Debt – Georgetown Transportation Enhancement Corporation A summary of Sales Tax Revenue Debt outstanding at September 30, 2008 follows: $11,330,000, 2007 Senior lien sales tax revenue bonds due in annual installments through August 15, 2027; interest at 4% to 4.5%; repaid with 1/2 cent sales tax revenue $ 11,115,000 Total outstanding Sales Tax Revenue Debt as of September 30, 2008 $ 11,115,000 E. Revenue Debt A summary of Revenue Debt outstanding at September 30, 2008 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%; portion refunded 2007 & 2008 $ 1,760,000 $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% 450,000 $4,320,000, 2000 Utility System Revenue bonds due in annual installments through August 15, 2020; interest at 5.1% to 5.9% 195,000 $1,900,000, 2001 Utility System Revenue bonds due in annual installments through August 15, 2021; interest at 4.75% to 5.12%; portion refunded 2007 330,000 $6,500,000, 2002 Utility System Revenue bonds due in annual installments through August 15, 2022; interest at 4.0% to 5.0% 5,250,000 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 59 $6,940,000, 2003 Utility System Revenue bonds due in annual installments through August 15, 2023; interest at 3.55% to 4.55% 5,875,000 $4,025,000 2005 Utility System Revenue bonds due in annual installments through August 15, 2025; interest at 2.85% to 4.75% 3,595,000 $8,665,000 2006 Utility System Revenue bonds due in annual installments through August 15, 2026; interest at 4% to 4.625% 8,200,000 $3,205,000, 2006 Utility System Revenue & Refunding bonds due in annual installments through August 15, 2020; interest at 4% to 4.5% 3,125,000 $8,250,000 2007 Utility System Revenue bonds due in annual installments through August 15, 2027; interest at 4% to 4.5% 8,095,000 $3,935,000, 2007 Utility System Revenue & Refunding bonds due in annual installments through August 15, 2021; interest at 4% to 4.25% 3,935,000 $9,415,000, 2008 Utility System Revenue bonds due in annual installments through August 15, 2028; interest at 3.5% to 4.625% 9,415,000 $7,055,000, 2008 Utility System Revenue & Refunding bonds due in annual installments through August 15, 2018; interest at 3.5% to 4% 7,055,000 Total outstanding Revenue Debt as of September 30, 2008 $ 57,280,000 F. Revenue Bond Advanced Refunding/Defeasance All net revenues of the electric and water services 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, 2008. 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, 2008, the outstanding balance of the defeased bonds is $12,110,000. On May 20, 2008, the City issued $7,055,000 in Utility System Revenue & Refunding bonds with an average interest rate of 3.57% to advance refund $7,060,000 of outstanding Series 1998 with average interest rates of 4.92%. The net proceeds (after insurance and other issuance costs) were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the defeased series bonds. As a result, the following bonds are considered to be defeased and the liabilities for those bonds have been removed from the financial statements. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 60 Maturities Series 1998 2010 1,790,000$ 2011 950,000 2012 965,000 2013 790,000 2014 830,000 2015 875,000 2016 280,000 2017 270,000 2018 310,000 7,060,000$ The City advanced funded these bonds to reduce its total debt service payments over the next 16 years by approximately $342,181 and to obtain a net economic gain (difference between the present values of debt service payments on the old and new debt) of $489,672. G. 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: Year Governmental Activities 2009 $ 12,487 Total principal 12,487 plus – Applicable interest 344 Total principal + interest $ 12,831 H. Discretely Presented Component Unit – Loan Payable Georgetown Economic Development Corporation (GEDCO) received a loan from the Water Services Fund as part of a tri-party agreement for economic development. The loan repayment schedule by GEDCO is as follows: Fiscal Year Ending September 30 Principal Interest 2009 $ 46,734 $ 55,183 2010 49,166 53,313 2011 50,778 51,346 2012 53,196 49,315 2013 54,808 47,187 2014-2018 307,892 201,311 2019-2023 376,402 132,886 2024-2027 366,024 42,073 1,305,000$ 632,614$ GEDCO CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 61 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 827 municipalities having the benefit plan administered by TMRS, an agent multiple-employer public employee retirement system. Each of the 827 municipalities has an annual, individual actuarial valuation performed. The following assumptions were used for the December 31, 2007 valuations: Actuarial Cost Method Projected Unit Credit Amortization Method Level Percent of Payroll Remaining Amortization Period 30 Years – Closed Period Asset Valuation Method Amortized Cost Investment Rate of Return 7% Projected Salary Increases Varies by age and service Includes Inflation At 3.0% Cost-of-Living Adjustments 2.1% (3.0% CPI) At its December 8, 2007 meeting, the TMRS Board of Trustees adopted actuarial assumptions to be used in the actuarial valuation for the year ended December 31, 2007. A summary of actuarial assumptions and definitions can be found in the December 31, 2007 TMRS Comprehensive Annual Financial Report (CAFR). Since its inception, TMRS has used the Unit Credit actuarial funding method. This method accounts for liability accrued as of the valuation date, but does not project the potential future liability of provisions adopted by a city. Two-thirds of the cities participating in TMRS have adopted the Updated Service Credit and Annuity Increases provisions on an annually repeating basis. For the December 31, 2007 valuation, the TMRS Board determined that the Projected Unit Credit (PUC) funding method should be used, which facilitates advance funding for future updated service credits and annuity increases that are adopted on an annually repeating basis. In addition, the Board also adopted a change in the amortization period from a 25-year “open” to a 25-year “closed” period. TMRS Board of Trustee rules provide that, whenever a change in actuarial assumptions or methods results in a contribution rate increase in an amount greater than 0.5%, the amortization period will be increased to 30 years, unless a city requests that the period remain at 25 years. For cities with repeating features, these changes would likely result initially in higher required contributions and lower funded ratios; however, the funded ratio should show steady improvement over time. To assist in this transition to higher rates, the Board also approved an eight-year phase-in period, which will allow cities the opportunity to increase their contributions gradually (approx. 12.5% each year) to their full rate (or their required contribution rate). If the changes in actuarial funding method and assumptions had not been adopted for the 2007 valuation, the city’s unfunded actuarial accrued liability would have been $9,784,043 and the funded ratio would have been 76.1%. In addition, TMRS is currently working on its legislative package for 2009. There is a possibility that the investment rate of return (IRR) assumption of 7% would need to be lowered if desired legislation for the 2009 session is unsuccessful. Maintaining a 7% IRR assumption is contingent in part on the continued diversification of the TMRS portfolio, from an almost exclusive bond portfolio to a portfolio CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 62 that includes equities as well. If state legislation needed to facilitate the continued diversification is not enacted, TMRS may have to revisit the continued diversification of the portfolio and consider reducing the assumed IRR. A reduction in the IRR would result in increased actuarial accrued liabilities, thus causing further increases in city contribution rates, following the December 31, 2009 actuarial valuation. The December 31, 2007 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 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 30 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, 2007 valuation is effective for rates beginning January 2009). The City’s total payroll in fiscal year 2008 was $22,063,110 and the City’s contributions were based on a payroll of $22,037,455. Both the City and the covered employees made the required contributions, amounting to $2,464,920 for the City and $1,542,910 for the employees. The City’s contribution amounted to 11.3% 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 12/31/2007 Actuarial Value of Assets (A) $ 31,091,875 Actuarial Accrued Liability (B) $ 47,706,550 Percentage funded (C)=(A)/(B) 65.2% Unfunded (Over-funded) Actuarial Accrued Liability (UAAL) (D)=(B)-(A) $ 16,614,675 Annual Covered Payroll (E) $ 21,074,348* UAAL as a Percentage of Covered Payroll (D)/(E) 78.8% *Based on calendar year ending 12/31/07, which varies from the City’s fiscal year. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 63 Annual Pension Cost Fiscal Year Funding Annual Pension Cost (APC) APC funded Net Pension Obligation (NPO) Employer’s Contribution as a % of Covered Payroll 09/30/06 $ 1,771,043 $ 1,771,043 0 10.68 09/30/07 $ 2,160,919 $ 2,160,919 0 10.87 09/30/08 $ 2,464,920 $ 2,464,920 0 11.30 A copy of the TMRS Comprehensive Annual Financial Report may be obtained by contacting TMRS at P.O. Box 149153, Austin, Texas 78714-9153. 8. OTHER POST EMPLOYMENT BENEFITS (OPEB) In January 2008, the City received a report on the results of the actuarial valuation of assets and benefit values associated with the employer financed retirement health benefits provided by the City of Georgetown. The City of Georgetown is considering plan changes that may reduce or eliminate the liability prior to implementation of GASB 45 Other Post Employment Benefits (OPEB) in 2008/2009. The six year liability based on the current plans is as follows: Fiscal Year beginning 10/01 Total 2007 $12,654 2008 16,900 2009 21,480 2010 26,617 2011 29,302 2012 30,548 9. 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. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 64 10. 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 $2,278,171 for the fiscal year ended September 30, 2008. 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, 2008 is $57.00 and the City paid a total of $1,759,858 for water during the fiscal year. The City has two 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 $367,640 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 25,448 acre-feet of water per year at BRA’s system wide rate. The City paid $1,392,218 for water under this agreement in 2007/08. 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, Jonah Water Special Utility District and Chisholm Trail 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 was approximately $40 million. In 2007, BRA refunded a portion of the original $89 million in debt. It is approximately $69 million, including principal and interest. It is 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 amount for fiscal year 2008 was $808,557. The following schedule reflects the City's obligation: Year Ending September 30 Amount 2009 $ 853,324 2010 963,297 2011 1,365,598 2012 1,023,396 2013 1,021,945 2014-2032 21,308,484 Total $ 26,536,044 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 65 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 $164,883 as of September 30, 2008. (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 $234,227 as of September 30, 2008. (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 $234,227 as of September 30, 2008. 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 transferred to CTSUD, a phased financial position in the Lake Water Treatment Plan, valued at $1,681,070, equaling 4.36 mgd, not to exceed 28% of the off-peak plant capacity. CTSUD pays prorata operating costs for all water utilized. 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, 2008, 5,365 units have been completed. 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. 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. 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. 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 CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 66 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. As of September 30, 2008 there were 365 units under this agreement. G. 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, 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 $153,064 was recognized for 2008. As of September 30, 2008 all costs associated with the Georgetown Village Public Improvement District have been reimbursed. H. 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 was 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, 2008 outstanding assessments totaled $254,050. I. 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. The City also collects a per unit transportation fee which will be used to fund necessary roadway improvements and bridge crossings in the area. As of September 30, 2008, 95 homes had been completed for this development. PID assessment collection began in 2002. In 2008, PID assessments were $442,075. The developer was reimbursed $473,709 from current year collections and available fund balance. The assessments and related disbursements are recorded in the Agency Funds. J. 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 includes Target and 70 other retailers and restaurants. As part of the agreement, the City provided utility improvements to the site, as well as, funded $10.5 million of highway improvements for the project. The $10.5 million was funded with debt to be repaid by GTEC. Improvements to SH 29, as well as, provide the frontage road for IH-35 were constructed as part of this project. As of September 30, 2008, $10,555,000 of GTEC debt had been issued for this project. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 67 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 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 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. Wolf Ranch utility revenue collections exceeded related debt service payments for the project. The public road assessment for Wolf Ranch was $788,508 including interest as of September 2008. K. 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. This project is currently under construction. L. In November 2006, the City entered into a 10 year tax abatement agreement with Citigroup, NA, Inc who constructed 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 $1.3 million of offsite wastewater improvements as an incentive for the creation of 50 jobs. M. 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. N. Downtown Tax Increment Financing Zone was established in 2004 to fund improvements in the downtown overlay district to assist in funding the downtown master plan. As of September 30, 2008, $102,202 has been collected. O. Rivery Summit Tax Increment Financing Zone was established in 2008 to fund a convention center/hotel complex, as well as, expansion to Rivery Park. The City and Williamson County agreed to reimburse up to $25 million for the project. P. In April 2008, the City entered into a Memorandum of Understanding (MOU) with Williamson County for the expansion of FM 2338 (Williams Drive). The County agreed to up front the costs of the project in order to accelerate its construction to address safety issues near Sun City. Under the MOU, the City agreed to repay the County at a later date for the City’s share of these costs. The City will be responsible for 65% of the total project costs, estimated at $22 million, for the portion of the project inside the City. CITY OF GEORGETOWN, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 68 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. 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 $4,129,791 for Governmental Fund Types and approximately $4,318,781 for Enterprise Funds. 11. SUBSEQUENT EVENTS In November 2008, voters authorized $81.5 million for Road and Park improvements. The City expects to begin issuing these bonds in May 2009. In January 2009, the City Council approved an inter-local agreement with Williamson County to addresses repayment for the Williams Drive expansion project approved as a Memorandum of Understanding in April 2008. In December 2008, the City was notified that the City was awarded $8.8 million from the Capital Area Metropolitan Planning Organization (CAMPO) for funding their portion of the project. These funds will be forwarded directly to the County for funding the project. The remaining balance of $5.1 million will be repaid to the County over 4 years, beginning in September 2009. CITY OF GEORGETOWN, TEXAS REQUIRED SUPPLEMENTARY INFORMATION – TEXAS MUNICIPAL RETIREMENT SYSTEM TREND DATA – LAST TEN FISCAL YEARS 69 Unfunded UAAL Actuarial Actuarial Actuarial Annual as a % of Fiscal Value of Accrued Liability Percentage Accrued Liability Covered Covered Year (1) Assets (AAL) (1) Funded (UAAL) (1) Payroll Payroll 1999 8,989,024$ 9,889,405$ 90.9% 900,381$ 8,426,312$ 10.7% 2000 10,556,981 11,677,541 90.4% 1,120,560 8,602,728 13.0% 2001 12,223,288 14,104,239 86.7% 1,880,951 10,127,470 18.6% 2002 13,594,005 16,130,453 84.3% 2,536,448 11,269,422 22.5% 2003 15,549,049 18,658,884 83.3% 3,109,835 12,183,510 25.5% 2004 18,195,567 22,347,396 81.4% 4,151,829 13,698,260 30.3% 2005 20,947,687 25,168,237 83.2% 4,220,550 14,985,460 28.2% 2006 23,848,360 31,247,055 76.3% 7,398,695 16,585,727 44.6% 2007 27,478,717 36,054,408 76.2% 8,575,691 18,062,706 47.5% 2008 31,091,875 47,706,550 65.2% 16,614,675 21,074,348 78.8% 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 70 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 44 of the notes. The following is additional information for the City’s streets infrastructure for fiscal year 2008. This information is updated every three years and comparative data is included. 2005-2007 2008 Arterial 91.91 93.00 Collector 88.38 93.75 Local 91.00 92.70 Total 90.87 93.00 PCI Rating by Functional Class Condition Rating Summary Center % of Line % of Condition Rating Segments Segments Miles Segments Very Good 90-100 2,194 72.1% 190.8 72.4% Good 80-90 557 18.3% 45.5 17.3% Fair 45-80 282 9.3% 26.0 9.9% Poor < 45 11 0.4% 1.1 0.4% 3,044 100.0% 263.4 100.0% 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. Costs to Maintain System at Designated Level Estimated Maintenance Cost $2,985,734 Budgeted Maintenance Cost $4,284,000 Actual Maintenance Cost $2,637,368 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. CITY OF GEORGETOWN, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS AS OF SEPTEMBER 30, 2008 FIRE MAIN COURT BILLING AND LIBRARY STREET FEES DONATIONS RESTRICTED FACADE MAPPING ASSETS: Cash and cash equivalents $ 30,258 $ 34,471 $ 12,177 $ 22,505 Investments 58,736 66,915 23,639 43,687 Accounts receivable: Tax Grants Other 25,474 $ 75,000 TOTAL ASSETS $ 88,994 $ 126,860 $ 75,000 $ 35,816 $ 66,192 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 2,061 $ 831 $ 9,655 $ 2,681 $ 12,223 Due to other funds 24,806 Unearned revenue 25,474 Total liabilities 2,061 26,305 34,461 2,681 12,223 Fund Balance: Reserved for: Encumbrances 5,347 4,263 Special programs 81,586 100,555 36,276 33,135 53,969 Total fund balance 86,933 100,555 40,539 33,135 53,969 TOTAL LIABILITIES AND FUND BALANCE $ 88,994 $ 126,860 $ 75,000 $ 35,816 $ 66,192 SPECIAL REVENUE FUNDS TOTAL 2008 VILLAGE IMPROVEMENT DOWNTOWN PARKS POLICE STREETS TOURISM DISTRICT TIF $ 222,995 $ 17,123 $ 740,962 $ 176,757 $ 18,498 $ 35,807 $ 1,311,553 432,872 33,241 1,438,339 343,116 35,909 69,508 2,545,962 132,802 31,733 272 164,807 76,942 76,942 35,200 2,250 137,924 $ 691,067 $ 127,306 $ 2,312,103 $ 553,856 $ 54,679 $ 105,315 $ 4,237,188 $ 7,555 $ 68,485 $ 28,787 $ 11,157 $ 143,435 24,806 $ 225 272 25,971 225 7,555 68,485 28,787 11,429 194,212 2,780 52,711 457,298 42,764 931 566,094 688,062 67,040 1,786,320 482,305 42,319 $ 105,315 3,476,882 690,842 119,751 2,243,618 525,069 43,250 105,315 4,042,976 $ 691,067 $ 127,306 $ 2,312,103 $ 553,856 $ 54,679 $ 105,315 $ 4,237,188 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, 2008 FIRE MAIN COURT BILLING AND LIBRARY STREET FEES DONATIONS RESTRICTED FAÇADE MAPPING PARKS REVENUES: Grants and entitlements $ 14,998 $ 13,271 Hotel/Motel tax Property assessments Sales tax Court fees $ 97,116 Investment earnings 3,446 4,230 $ 1,027 $ 2,142 $ 22,052 Donations 1,300 59,374 5,724 Mapping fees 37,087 Fire incident billings 58,816 Other 28,494 268,815 Total revenues 100,562 107,838 72,645 6,751 39,229 290,867 EXPENDITURES: Culture - recreation 82,150 16,163 82,614 Development 42,839 Fire services 108,623 Police 66,492 Capital outlay 5,731 Total expenditures 66,492 108,623 82,150 16,163 42,839 88,345 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 34,070 (785) (9,505) (9,412) (3,610) 202,522 OTHER FINANCING SOURCES (USES): Transfers in 2,700 21,633 25,257 Transfers out (20,000) Total other financing sources (uses) (17,300) 21,633 25,257 NET CHANGE IN FUND BALANCE 16,770 (785) (9,505) 12,221 (3,610) 227,779 FUND BALANCES, Beginning of period 70,163 101,340 50,044 20,914 57,579 463,063 FUND BALANCES, End of period $ 86,933 $ 100,555 $ 40,539 $ 33,135 $ 53,969 $ 690,842 SPECIAL REVENUE FUNDS TOTAL 2008 VILLAGE IMPROVEMENT DOWNTOWN POLICE STREETS TOURISM DISTRICT TIF $ 122,918 $ 151,187 $ 440,581 440,581 $ 153,064 $ 57,595 210,659 $ 1,833,251 1,833,251 97,116 2,927 81,552 17,078 4,425 2,119 140,998 52,291 118,689 37,087 58,816 91,019 66,009 454,337 269,155 1,914,803 523,668 157,489 59,714 3,542,721 432,958 147,316 761,201 42,839 108,623 241,032 307,524 28,695 1,686,034 1,720,460 269,727 1,686,034 432,958 147,316 2,940,647 (572) 228,769 90,710 10,173 59,714 602,074 46,123 44,571 140,284 (40,000) (24,723) (84,723) 6,123 19,848 55,561 5,551 228,769 110,558 10,173 59,714 657,635 114,200 2,014,849 414,511 33,077 45,601 3,385,341 $ 119,751 $ 2,243,618 $ 525,069 $ 43,250 $ 105,315 $ 4,042,976 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, 2008 ORIGINAL BUDGET FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Court fees $ 25,000 $ 25,000 $ 24,536 $ (464) Investment earnings 5,000 5,000 3,446 (1,554) Other 82,249 82,429 75,480 (6,949) Total revenues 112,249 112,429 103,462 (8,967) EXPENDITURES: Personnel 49,007 51,707 51,190 517 Operations 53,000 53,000 17,660 35,340 Total expenditures 102,007 104,707 68,850 35,857 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 10,242 7,722 34,612 26,890 OTHER FINANCING (USES): Operating transfers in 2,700 2,700 Transfers out (20,000) (20,000) (20,000) Total other financing (uses) (20,000) (17,300) (17,300) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASIS (9,758) (9,578) 17,312 26,890 FUND BALANCE, Beginning of period 9,578 9,578 64,274 54,696 FUND BALANCE - BUDGETARY BASIS, End of period $ $ 81,586 $ 81,586 Adjustments to GAAP: Reverse current year encumbrances 5,347 FUND BALANCE - GAAP BASIS End of period $ 86,933 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO FINAL BUDGET REVENUES: Grants and entitlements $ 14,998 $ 14,998 Investment earnings $ 2,000 4,230 2,230 Donations 1,000 1,300 300 Fire incident billings 124,500 87,310 (37,190) Total revenues 127,500 107,838 (19,662) EXPENDITURES: Operations 127,500 108,147 19,353 Total expenditures 127,500 108,147 19,353 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (309) (309) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASIS (309) (309) FUND BALANCE, Beginning of period 100,864 100,864 FUND BALANCE - BUDGETARY BASIS, End of period $ 100,555 $ 100,555 Adjustments to GAAP: Reverse current year encumbrances FUND BALANCE - GAAP BASIS End of period $ 100,555 2008 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, 2008 ORIGINAL BUDGET FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Grants and entitlements $ 13,300 $ 13,271 $ (29) Investment earnings $ 1,200 1,200 (1,200) Donations 20,000 54,700 59,373 4,673 Total revenues 21,200 69,200 72,644 3,444 EXPENDITURES: Personnel 2,153 13,273 13,271 2 Operations 36,980 73,860 73,124 736 Total expenditures 39,133 87,133 86,395 738 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (17,933) (17,933) (13,751) 4,182 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASIS (17,933) (17,933) (13,751) 4,182 FUND BALANCE, Beginning of period 17,933 17,933 50,027 32,094 FUND BALANCE - BUDGETARY BASIS, End of period $ $ 36,276 $ 36,276 Adjustments to GAAP: Reverse current year encumbrances 4,263 FUND BALANCE - GAAP BASIS End of period $ 40,539 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Investment earnings $ 400 $ 1,027 $ 627 Donations 200 5,724 5,524 Total revenues 600 6,751 6,151 EXPENDITURES: Operations 16,680 16,163 517 Total expenditures 16,680 16,163 517 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (16,080) (9,412) 6,668 OTHER FINANCING SOURCES: Transfers in 15,000 21,633 6,633 Total other financing sources 15,000 21,633 6,633 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES - BUDGETARY BASIS (1,080) 12,221 13,301 FUND BALANCE, Beginning of period 1,080 20,914 19,834 FUND BALANCE - BUDGETARY BASIS, End of period $ 33,135 $ 33,135 Adjustments to GAAP: FUND BALANCE - GAAP BASIS End of period $ 33,135 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Investment earnings $ 700 $ 2,142 $ 1,442 Mapping fees 32,988 37,087 4,099 Other 11,200 (11,200) Total revenues 44,888 39,229 (5,659) EXPENDITURES: Operations 68,731 42,463 26,268 Total expenditures 68,731 42,463 26,268 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (23,843) (3,234) 20,609 FUND BALANCE, Beginning of period 23,843 57,203 33,360 FUND BALANCE - BUDGETARY BASIS, End of period $ 53,969 $ 53,969 Adjustments to GAAP: Reverse current year encumbrances FUND BALANCE - GAAP BASIS End of period $ 53,969 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Investment earnings 8,550$ 22,052$ 13,502$ Other 166,034 268,815 102,781 Total revenues 174,584 290,867 116,283 EXPENDITURES: Operations 325,710 85,394 240,316 Capital outlay 384,433 3,126 381,307 Total expenditures 710,143 88,520 621,623 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (535,559) 202,347 737,906 OTHER FINANCING SOURCES: Transfers in 25,257 25,257 Total other financing sources 25,257 25,257 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES - BUDGETARY BASIS (510,302) 227,604 737,906 FUND BALANCE, Beginning of period 510,302 460,458 (49,844) FUND BALANCE - BUDGETARY BASIS, End of period $ 688,062 688,062$ Adjustments to GAAP: Reverse current year encumbrances 2,780 FUND BALANCE - GAAP BASIS End of period 690,842$ 2008 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, 2008 ORIGINAL BUDGET FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Grants and entitlements 26,500$ 149,972$ 122,918$ (27,054)$ Investment earnings 1,500 1,500 2,927 1,427 Donations 30,200 30,200 52,291 22,091 Other 8,700 85,228 91,017 5,789 Total revenues 66,900 266,900 269,153 2,253 EXPENDITURES: Personnel 41,357 94,051 93,536 515 Operations 67,341 214,647 193,102 21,545 Capital outlay 35,939 35,939 28,229 7,710 Total expenditures 144,637 344,637 314,867 29,770 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (77,737) (77,737) (45,714) 32,023 OTHER FINANCING SOURCES (USES): Transfers in 14,857 14,857 46,123 31,266 Transfer out (40,000) (40,000) (40,000) Total other financing sources (uses) (25,143) (25,143) 6,123 31,266 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS (102,880) (102,880) (39,591) 63,289 FUND BALANCE, Beginning of period 102,880 102,880 106,631 3,751 FUND BALANCE - BUDGETARY BASIS, End of period $ $ 67,040 67,040$ Adjustments to GAAP: Reverse current year encumbrances 52,711 FUND BALANCE - GAAP BASIS End of period 119,751$ 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Sales tax 1,750,000$ 1,833,251$ 83,251$ Investment earnings 60,000 81,552 21,552 Total revenues 1,810,000 1,914,803 104,803 EXPENDITURES: Capital outlay 3,184,000 1,753,420 1,430,580 Total expenditures 3,184,000 1,753,420 1,430,580 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,374,000) 161,383 1,535,383 FUND BALANCE, Beginning of period 1,575,787 1,624,937 1,572,334 FUND BALANCE - BUDGETARY BASIS, End of period 201,787$ 1,786,320 1,584,533$ Adjustments to GAAP: Reverse current year encumbrances 457,298 FUND BALANCE - GAAP BASIS End of period 2,243,618$ 2008 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, 2008 ORIGINAL BUDGET FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Hotel/Motel tax $ 380,000 $ 380,000 $ 440,580 $ 60,580 Investment earnings 7,500 7,500 17,078 9,578 Other 39,834 39,834 66,009 26,175 Total revenues 427,334 427,334 523,667 96,333 EXPENDITURES: Personnel 194,027 179,082 179,077 5 Operations 229,656 233,133 230,617 2,516 Capital Outlay 15,000 19,835 19,833 2 Total expenditures 438,683 432,050 429,527 2,523 EXCESS OF REVENUES OVER EXPENDITURES (11,349) (4,716) 94,140 98,856 OTHER FINANCING SOURCES (USES): Transfers in 44,571 44,571 44,571 Transfers out (18,090) (24,723) (24,723) Total other financing sources (uses) 26,481 19,848 19,848 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASIS 15,132 15,132 113,988 98,856 FUND BALANCE, Beginning of period 278,133 278,133 368,317 90,184 FUND BALANCE - BUDGETARY BASIS, End of period $ 293,265 $ 293,265 482,305 $ 189,040 Adjustments to GAAP: Reverse current year encumbrances 42,764 FUND BALANCE - GAAP BASIS End of period $ 525,069 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Property assessments $ 151,355 $ 153,065 $ 1,710 Investment earnings 500 4,425 3,925 Other 14,060 (14,060) Total revenues 165,915 157,490 (8,425) EXPENDITURES: Operations 165,415 144,922 20,493 Total expenditures 165,415 144,922 20,493 EXCESS OF REVENUES OVER EXPENDITURES 500 12,568 12,068 FUND BALANCE, Beginning of period 29,751 29,751 FUND BALANCE - BUDGETARY BASIS, End of period $ 500 42,319 $ 41,819 Adjustments to GAAP: Reverse current year encumbrances 931 FUND BALANCE - GAAP BASIS End of period $ 43,250 2008 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, 2008 ORIGINAL & FINAL BUDGET ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET REVENUES: Property assessments $ 30,000 $ 57,595 $ 27,595 Investment earnings 1,000 2,119 1,119 Total revenues 31,000 59,714 28,714 EXCESS OF REVENUES OVER EXPENDITURES 31,000 59,714 28,714 FUND BALANCE, Beginning of period 48,771 45,601 (3,170) FUND BALANCE - BUDGETARY BASIS, End of period $ 79,771 105,315 $ 25,544 Adjustments to GAAP: Reverse current year encumbrances FUND BALANCE - GAAP BASIS End of period $ 105,315 2008 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, 2008 AND 2007 2008 2007 ASSETS: Cash and cash equivalents $ 3,955,465 $ 1,397,917 Investments 7,698,596 10,258,059 Accounts receivable (net of allowance for uncollectible accounts): Delinquent taxes 186,033 165,922 Sales taxes 597,610 Other 656,992 650,823 Prepaid items 171,551 Inventories 6,578 4,023 Long-term note receivable 300,152 597,786 TOTAL ASSETS $ 13,401,426 $ 13,246,081 LIABILITIES AND FUND BALANCE: Liabilities: Accounts payable $ 1,102,766 $ 1,091,433 Unearned revenue 356,165 1,589,448 Total liabilities 1,458,931 2,680,881 Fund Balance: Reserved for: Encumbrances 949,165 1,166,495 Inventories/prepaid items 6,578 175,574 Unreserved 10,986,752 9,223,131 Total fund balance 11,942,495 10,565,200 TOTAL LIABILITIES AND FUND BALANCE $ 13,401,426 $ 13,246,081 CITY OF GEORGETOWN, TEXAS GENERAL FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 REVENUES: Property taxes: Current $ 7,288,031 $ 6,370,616 Delinquent 57,783 69,575 Penalties and interest 69,257 70,905 Other 322,961 398,739 Sales tax 7,736,933 7,120,422 Franchise taxes 2,739,567 2,083,306 Licenses and permits 1,158,433 1,527,886 Charges for service 2,193,590 1,700,490 Fines 1,013,699 976,538 Donations and grants 28,927 163,725 Investment income 436,575 490,231 Other income 1,406,736 726,107 Total revenues 24,452,492 21,698,540 EXPENDITURES: Current: Culture - recreation 5,564,579 4,741,777 Development 2,411,971 2,572,746 Fire services 5,271,624 4,783,187 General government 2,738,903 2,696,325 Highways and streets 2,768,367 1,739,495 Police 8,915,180 8,015,663 Total expenditures 27,670,624 24,549,193 EXCESS EXPENDITURES OVER REVENUES (3,218,132) (2,850,653) OTHER FINANCING SOURCES (USES): Transfers in 6,687,060 5,162,236 Transfers out (2,091,633) (702,697) Total other financing sources (uses) 4,595,427 4,459,539 NET CHANGE IN FUND BALANCES 1,377,295 1,608,886 FUND BALANCES, Beginning of period 10,565,200 8,956,314 FUND BALANCES, End of period $ 11,942,495 $ 10,565,200 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, 2008 (WITH COMPARATIVE FOR 2007) 2008 ACTUAL 2007 ACTUAL ORIGINAL FINAL BUDGETARY VARIANCE BUDGETARY BUDGET BUDGET BASIS TO BUDGET BASIS REVENUES: TAXES: Property tax: Current $ 7,330,265 $ 7,330,265 $ 7,288,031 $ (42,234) $ 6,370,616 Delinquent 50,000 50,000 57,783 7,783 69,575 Penalties and interest 30,000 30,000 69,257 39,257 70,905 Total property tax 7,410,265 7,410,265 7,415,071 4,806 6,511,096 Sales tax 7,415,000 7,415,000 7,736,933 321,933 7,120,422 Franchise taxes 2,579,169 2,579,169 2,739,567 160,398 2,083,306 Other 184,100 184,100 322,961 138,861 415,496 Total taxes 17,588,534 17,588,534 18,214,532 625,998 16,130,320 LICENSES AND PERMITS: Permits and inspection fees 1,448,560 1,448,560 1,188,138 (260,422) 1,534,594 Licenses 17,265 17,265 7,308 (9,957) 22,518 Total licenses and permits 1,465,825 1,465,825 1,195,446 (270,379) 1,557,112 CHARGES FOR SERVICES: Library 68,500 68,500 83,834 15,334 70,141 Animal services 40,000 40,000 36,862 (3,138) 29,581 Parks and recreation 900,810 900,810 972,758 71,948 822,386 Fire protection 962,000 962,000 964,784 2,784 723,000 Police support 102,500 102,500 105,563 3,063 26,156 Total charges for services 2,073,810 2,073,810 2,163,801 89,991 1,671,264 FINES AND FORFEITURES 1,018,200 1,018,200 1,013,699 (4,501) 976,538 INTEREST AND OTHER: Investment income 405,000 405,000 422,901 17,901 482,941 Rent 42,000 42,000 80,081 38,081 80,006 Miscellaneous 597,900 597,900 1,693,085 1,095,185 809,876 Total interest and other 1,044,900 1,044,900 2,196,067 1,151,167 1,372,823 TOTAL REVENUES 23,191,269 23,191,269 24,783,545 1,592,276 21,708,057 EXPENDITURES: CULTURE - RECREATION: Parks: Personnel 1,133,571 1,137,211 1,134,623 2,588 1,063,920 Operations 886,396 866,901 857,873 9,028 730,362 Capital outlay 25,000 25,100 25,078 22 43,311 Total parks 2,044,967 2,029,212 2,017,574 11,638 1,837,593 Recreation: Personnel 620,962 636,837 636,831 6 570,827 Operations 315,415 312,625 312,619 6 253,009 Capital outlay 62,925 62,920 5 Total recreation 936,377 1,012,387 1,012,370 17 823,836 Recreation programs Personnel 469,262 462,552 462,519 33 340,084 Operations 530,181 567,636 567,634 2 486,738 Capital outlay 4,000 4,000 4,000Total recreation programs 1,003,443 1,034,188 1,034,153 35 826,822 (continued) 2008 ACTUAL 2007 ACTUAL ORIGINAL FINAL BUDGETARY VARIANCE BUDGETARY BUDGET BUDGET BASIS TO BUDGET BASIS Library: Personnel $938,880 $938,880 $918,502 $20,378 $772,733 Operations 539,842 539,232 515,505 23,727 366,135 Capital outlay 136,128 136,738 136,731 7 110,589Total library 1,614,850 1,614,850 1,570,738 44,112 1,249,457 TOTAL CULTURE - RECREATION 5,599,637 5,690,637 5,634,835 55,802 4,737,708 DEVELOPMENT:Planning: Personnel 842,755 789,900 789,894 6 606,097 Operations 225,842 251,382 251,379 3 208,851 Capital outlay 50,000 110,035 110,030 5 16,149Total current planning 1,118,597 1,151,317 1,151,303 14 831,097 Housing & Neighborhood Developmen Personnel 65,306 70,006 69,547 459 257,530 Operations 6,450 8,450 1,126 7,324 246,580 Capital outlay 55,000 68,000 68,000Total long range planning 126,756 146,456 138,673 7,783 504,110 Inspection services Personnel 747,799 710,379 631,682 78,697 597,629 Operations 126,588 166,588 121,824 44,764 155,580Total inspection services 874,387 876,967 753,506 123,461 753,209 Code enforcement Personnel 358,722 358,722 338,939 19,783 323,165 Operations 89,946 89,946 73,111 16,835 65,533Total code enforcemen 448,668 448,668 412,050 36,618 388,698 TOTAL DEVELOPMENT 2,568,408 2,623,408 2,455,532 167,876 2,477,114 FIRE SERVICES:Fire administration Personnel 371,987 484,441 455,209 29,232 252,572 Operations 342,542 339,542 334,401 5,141 265,730Total fire administration 714,529 823,983 789,610 34,373 518,302 Fire operations Personnel 4,399,442 4,289,988 3,926,081 363,907 3,744,752 Operations 575,165 575,165 575,165 478,648 Capital outlay 30,000 30,000 20,622 9,378 22,891Total fire operations 5,004,607 4,895,153 4,521,868 373,285 4,246,291 TOTAL FIRE SERVICES 5,719,136 5,719,136 5,311,478 407,658 4,764,593 GENERAL GOVERNMENT: General government: Personnel 397,161 244,561 244,561 Operations 1,621,006 1,621,006 1,371,605 249,401 1,365,142 Total general government 2,018,167 1,865,567 1,371,605 493,962 1,365,142 City council: Personnel 141,904 157,479 157,473 6 152,816 Operations 222,177 211,107 180,267 30,840 244,244 Capital outlay 1,495 1,492 3 10,751 Total City council 364,081 370,081 339,232 30,849 407,811 (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, 2008 (WITH COMPARATIVE FOR 2007) 2008 ACTUAL 2007 ACTUAL ORIGINAL FINAL BUDGETARY VARIANCE BUDGETARY BUDGET BUDGET BASIS TO BUDGET BASIS City manager's office: Personnel $ 688,771 $ 688,771 $ 659,749 $ 29,022 $ 638,679 Operations 275,257 305,467 305,459 8 242,080 Capital outlay 55,880 149,870 58,439 91,431 14,620 Total City manager's office 1,019,908 1,144,108 1,023,647 120,461 895,379 TOTAL GENERAL GOVERNMENT 3,402,156 3,379,756 2,734,484 645,272 2,668,332 HIGHWAYS AND STREETS: Transportation Admin: Personnel 306,405 306,405 152,226 154,179 Operations 7,930 7,930 7,770 160 Total streets operating 314,335 314,335 159,996 154,339 Streets: Personnel 786,830 820,830 702,822 118,008 697,781 Operations 851,775 851,775 619,801 231,974 682,491 Capital outlay 1,250,000 1,250,000 1,148,165 101,835 675,473 Total streets operating 2,888,605 2,922,605 2,470,788 451,817 2,055,745 TOTAL HIGHWAYS AND STREETS 3,202,940 3,236,940 2,630,784 606,156 2,055,745 POLICE SERVICES: Organization and administration: Personnel 701,591 778,121 778,111 10 687,327 Operations 513,828 575,338 575,338 421,029 Capital outlay 54,328 119,308 119,308 46,447 Total organization and administration 1,269,747 1,472,767 1,472,757 10 1,154,803 Support services bureau: Personnel 2,080,177 2,070,077 1,618,129 451,948 1,365,073 Operations 205,458 198,558 187,257 11,301 181,070 Capital outlay 90,000 7,580 7,487 93 41,250 Total support services bureau 2,375,635 2,276,215 1,812,873 463,342 1,587,393 Field operations bureau: Personnel 4,251,358 4,097,833 3,937,748 160,085 3,739,997 Operations 671,100 743,825 743,825 622,461 Capital outlay 38,400 100 96 4 874 Total field operations bureau 4,960,858 4,841,758 4,681,669 160,089 4,363,332 Animal services Personnel 383,211 401,451 401,444 7 368,754 Operations 165,778 163,038 163,038 134,564Total animal services 548,989 564,489 564,482 7 503,318 Municipal court: Personnel 348,421 350,056 350,054 2 289,530 Operations 102,539 122,504 121,724 780 79,200Total municipal court 450,960 472,560 471,778 782 368,730 TOTAL POLICE SERVICES 9,606,189 9,627,789 9,003,559 624,230 7,977,576 (continued) 2008 ACTUAL 2007 ACTUAL ORIGINAL FINAL BUDGETARY VARIANCE BUDGETARY BUDGET BUDGET BASIS TO BUDGET BASIS TOTAL EXPENDITURES $ 30,098,466 $ 30,277,666 $ 27,770,672 $ 2,506,994 $ 24,681,068 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (6,907,197) (7,086,397) (2,987,127) 4,099,270 (2,973,011) OTHER FINANCING SOURCES (USES): Transfers in 6,472,549 6,472,549 6,687,060 214,511 5,162,236 Transfers out (2,050,202) (2,225,202) (2,091,633) 133,569 (702,697) Total other financing sources (uses) 4,422,347 4,247,347 4,595,427 348,080 4,459,539 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASIS (2,484,850) (2,839,050) 1,608,300 4,447,350 1,486,528 FUND BALANCE - BUDGETARY BASIS, Beginning of period 8,376,647 $ 8,730,847 9,405,370 674,523 7,918,842 FUND BALANCE - BUDGETARY BASIS, End of period $ 5,891,797 $ 5,891,797 11,013,670 $ 5,121,873 9,405,370 Adjustments to GAAP: Reverse current year encumbrances 949,165 1,166,495 Record net unrealized gain (loss) on investments (20,340) (6,665) FUND BALANCE - GAAP BASIS, End of period $ 11,942,495 $ 10,565,200 CITY OF GEORGETOWN, TEXAS GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION COMPARATIVE BALANCE SHEETS AS OF SEPTEMBER 30, 2008 AND 2007 2008 2007 ASSETS: Cash and cash equivalents Investments $ 19,730,412 $ 22,126,859 Accounts receivable: Sales Tax 265,604 TOTAL ASSETS $ 19,996,016 $ 22,126,859 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 354,608 $ 173,695 Due to other funds 1,551,825 Total liabilities 354,608 1,725,520 Fund Balance: Reserved for: Encumbrances 1,468,360 2,924,234 Capital projects 18,173,048 17,477,105 Total fund balance 19,641,408 20,401,339 TOTAL LIABILITIES AND FUND BALANCE $ 19,996,016 $ 22,126,859 CITY OF GEORGETOWN, TEXAS GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FISCAL YEAR ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 REVENUES: Sales tax $ 3,666,502 $ 3,390,451 Development contributions 756,302 Investment earnings 986,310 753,722 Total revenues 5,409,114 4,144,173 EXPENDITURES: General government 299,973 321,698 Capital outlay 3,538,839 2,951,481 Total expenditures 3,838,812 3,273,179 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,570,302 870,994 OTHER FINANCING SOURCES (USES): Bond proceeds 11,330,000 Sale of property 47,029 54,599 Principal retirement (215,000) Interest and fiscal charges (595,948) (394,688) Transfers out (1,566,314) (713,031) Total other financing sources (uses) (2,330,233) 10,276,880 NET CHANGE IN FUND BALANCES (759,931) 11,147,874 FUND BALANCES, Beginning of period 20,401,339 9,253,465 FUND BALANCES, End of period $ 19,641,408 $ 20,401,339 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, 2008 (WITH COMPARATIVE FOR 2007 ORIGINAL BUDGET FINAL BUDGET 2008 ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET ACTUAL BUDGETARY BASIS REVENUES: Sales tax $ 3,500,000 $ 3,500,000 $ 3,666,502 $ 166,502 $ 3,390,451 Investment earnings 500,000 500,000 952,387 452,387 705,475 Other 840,178 840,178 830,059 (10,119)54,599 Total revenues 4,840,178 4,840,178 5,448,948 608,770 4,150,525 EXPENDITURES: Operations 292,155 305,355 305,349 6 296,295 Capital outlay 14,178,990 14,161,595 2,104,317 12,057,278 2,999,214 Total expenditures 14,471,145 14,466,950 2,409,666 12,057,284 3,295,509 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (9,630,967)(9,626,772)3,039,282 12,666,054 855,016 OTHER FINANCING SOURCES (USES): Bond proceeds 11,330,000 Principal, interest and fiscal charges (869,470)(869,495)(869,493)2 (290,683) Transfers out (1,562,150)(1,566,320)(1,566,314)6 (713,031) Total other financing sources (uses) (2,431,620)(2,435,815)(2,435,807)8 10,326,286 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASI (12,062,587)(12,062,587)603,475 12,666,062 11,181,302 FUND BALANCES, Beginning of period 15,698,210 15,698,210 17,534,349 1,836,139 6,353,047 FUND BALANCES - BUDGETARY BASIS End of period $ 3,635,623 $ 3,635,623 18,137,824 $ 14,502,201 17,534,349 Adjustments to GAAP: Reverse current year encumbrance 1,468,360 2,924,234 Record net unrealized loss on investmen 80,684 46,760 Reverse bond interes (45,460)(104,004) FUND BALANCES - GAAP BASIS End of period $ 19,641,408 $ 20,401,339 CITY OF GEORGETOWN, TEXAS DEBT SERVICE FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 2008 AND 2007 2008 2007 ASSETS: Investments $ 1,215,378 $ 1,324,559 Accounts receivable: Delinquent taxes 134,774 83,409 TOTAL ASSETS $ 1,350,152 $ 1,407,968 LIABILITIES AND FUND BALANCE: Liabilities: Deferred Revenue $ 126,065 $ 78,755 Total liabilities 126,065 78,755 Fund Balances: Reserved for: Encumbrances 8,853 Capital projects 1,215,234 1,329,213 Total fund balance 1,224,087 1,329,213 TOTAL LIABILITIES AND FUND BALANCES $ 1,350,152 $ 1,407,968 CITY OF GEORGETOWN, TEXAS DEBT SERVICE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 REVENUES: Ad valorem taxes: Current $ 5,255,186 $ 4,385,906 Delinquent 33,252 41,486 Total ad valorem taxes 5,288,438 4,427,392 Investment earnings and other 92,231 133,481 Total revenues 5,380,669 4,560,873 EXPENDITURES: Principal retirement 3,280,684 2,755,592 Interest and fiscal charges 3,798,821 2,172,383 Total expenditures 7,079,505 4,927,975 DEFICIENCY OF REVENUES OVER EXPENDITURES (1,698,836) (367,102) OTHER FINANCING SOURCES (USES): Bond Proceeds 3,230,334 Payment to refunding escrow agent (3,160,147) Transfers in 1,593,710 747,460 Total other financing sources (uses)1,593,710 817,647 NET CHANGE IN FUND BALANCES (105,126) 450,545 FUND BALANCES, Beginning of period 1,329,213 878,668 FUND BALANCES, End of period $ 1,224,087 $ 1,329,213 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, 2008 (WITH COMPARATIVE FOR 2007) ORIGINAL & FINAL BUDGET 2008 ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET 2007 ACTUAL BUDGETARY BASIS REVENUES: Ad valorem taxes $ 5,410,000 $ 5,288,439 $ (121,561) $ 4,427,392 Investment earnings 60,000 92,231 32,231 133,480 Total revenues 5,470,000 5,380,670 (89,330) 4,560,872 OTHER FINANCING SOURCES (USES): Principal, interest and fiscal charges (7,461,155) (7,088,359) 372,796 (4,927,974) Bond proceeds 3,230,334 Payment to refunding escrow agent (3,160,147) Transfers in 1,589,546 1,593,710 4,164 747,460 Total other financing sources (uses) (5,871,609) (5,494,649)376,960 (4,110,327) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES - BUDGETARY BASIS (401,609) (113,979) 287,630 450,545 FUND BALANCE, Beginning of period 1,032,171 1,329,213 297,042 878,668 FUND BALANCE - BUDGETARY BASIS, End of period $ 630,562 1,215,234 $ 584,672 1,329,213 Adjustments to GAAP: Reverse current year encumbrances 8,853 FUND BALANCE - GAAP BASIS End of period $ 1,224,087 $ 1,329,213 CITY OF GEORGETOWN, TEXAS GENERAL CAPITAL PROJECTS COMPARATIVE BALANCE SHEET AS OF SEPTEMBER 30, 2008 AND 2007 2008 2007 ASSETS: Cash and cash equivalents 1,820,280$ 1,961,599$ Investments 3,533,484 14,385,057 Accounts Receivable 196,329 TOTAL ASSETS 5,550,093$ 16,346,656$ LIABILITIES AND FUND BALANCES: Liabilities: Accounts payable 1,278,621$ 1,696,047$ Deferred revenue 116,897 74,693 Total liabilities 1,395,518 1,770,740 Fund Balances: Reserved for encumbrances 4,154,575 13,009,564 Reserved for capital projects 1,566,352 Total fund balances 4,154,575 14,575,916 TOTAL LIABILITIES AND FUND BALANCES 5,550,093$ 16,346,656$ CITY OF GEORGETOWN, TEXAS GENERAL CAPITAL PROJECTS COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FISCAL YEAR ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 REVENUES: Investment earnings 566,838$ 573,821$ Other 205,879 27,800 Total revenues 772,717 601,621 EXPENDITURES: Capital outlay 16,363,547 10,874,081 Total expenditures 16,363,547 10,874,081 DEFICIENCY OF REVENUES OVER EXPENDITURES (15,590,830) (10,272,460) OTHER FINANCING SOURCES (USES) Bond proceeds 4,395,000 17,085,000 Interest and fiscal charges (85,735) (342,045) Transfers in 1,775,698 1,803,869 Transfers out (915,474) (1,820,844) Total other financing sources (uses) 5,169,489 16,725,980 NET CHANGE IN FUND BALANCES (10,421,341) 6,453,520 FUND BALANCES, Beginning of period 14,575,916 8,122,396 FUND BALANCES, End of period 4,154,575$ 14,575,916$ 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, 2008 (WITH COMPARATIVE FOR 2007) ORIGINAL BUDGET FINAL BUDGET 2008 ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET 2007 ACTUAL BUDGETARY BASIS REVENUES: Investment earnings $ 296,300 $ 296,300 $ 529,294 $ 232,994 $ 606,280 Other 16,800 16,800 286,959 270,159 27,800 Total revenues 313,100 313,100 816,253 503,153 634,080 EXPENDITURES: Capital outlay 5,856,575 10,209,075 7,515,537 2,693,538 18,751,430 Bond issuance cost 161,994 161,994 85,735 76,259 342,045 Total expenditures 6,018,569 10,371,069 7,601,272 2,769,797 19,093,475 DEFICIENCY OF REVENUES OVER EXPENDITURES (5,705,469) (10,057,969) (6,785,019) 3,272,950 (18,459,395) OTHER FINANCING SOURCES (USES): Bond proceeds 4,218,837 8,571,337 4,395,000 (4,176,337) 17,085,000 Transfers in 1,834,000 1,834,000 1,669,165 (164,835) 1,372,734 Transfers out (929,000) (929,000) (915,474) 13,526 (1,820,844) Total other financing sources (uses) 5,123,837 9,476,337 5,148,691 (4,327,646) 16,636,890 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING (USES) - BUDGETARY BASIS (581,632) (581,632) (1,636,328) (1,054,696) (1,822,505) FUND BALANCES, Beginning of period 700,255 700,255 1,598,784 898,529 3,421,289 FUND BALANCES - BUDGETARY BASIS, End of Period $ 118,623 $ 118,623 (37,544) $ (156,167) 1,598,784 Adjustments to GAAP: Reverse Mkt to Mkt Adjs 37,544 (32,432) Reverse current year encumbrances 4,154,575 13,009,564 FUND BALANCES - GAAP BASIS, End of period $ 4,154,575 $ 14,575,916 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, 2008 STORMWATER TOTAL AIRPORT SANITATION DRAINAGE NONMAJOR FUND FUND FUND ENTERPRISE FUNDS ASSETS: Current Assets: Cash and cash equivalents 253,287$ 368,195$ 621,482$ Cash and cash equivalents - Restricted 737,818 737,818 Investments 491,675 714,188 1,205,863 Accounts receivable: Services (net of allowance for uncollectibles) 135,583 509,362$ 215,707 860,652 Inventories 22,294 22,294 Total current assets 902,839 509,362 2,035,908 3,448,109 Noncurrent Assets: Deferred charges - bond issuance costs 54,657 12,726 104,117 171,500 Capital assets: Land and land rights 981,500 981,500 Distribution system 79,335 21,512,677 21,592,012 Buildings and improvements 9,577,597 494,000 10,071,597 Machinery, furniture and equipment 137,577 79,573 14,050 231,200 Construction in progress 84,940 25,266 110,206 Less accumulated depreciation (5,505,030) (56,640) (2,378,565) (7,940,235) Total capital assets (net of accumulated depreciation)5,270,979 601,873 19,173,428 25,046,280 Total noncurrent assets 5,325,636 614,599 19,277,545 25,217,780 TOTAL ASSETS 6,228,475$ 1,123,961$ 21,313,453$ 28,665,889$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities: Accounts payable 102,415$ 319,135$ 53,516$ 475,066$ Compensated absence 11,279 6,819 14,580 32,678 Due to other funds 89,195 89,195 Current portion of long-term debt 150,133 20,000 172,766 342,899 Accrued interest 7,370 2,661 18,404 28,435 Total current liabilities 271,197 437,810 259,266 968,273 Noncurrent liabilities: Compensated absence 22,976 11,433 22,651 57,060 Long-term debt payable 1,214,576 485,000 2,942,475 4,642,051 Total noncurrent liabilities 1,237,552 496,433 2,965,126 4,699,111 Total liabilities 1,508,749 934,243 3,224,392 5,667,384 Net Assets: Invested in capital assets (net of related debt) 3,906,270 96,872 16,796,005 20,799,147 Unrestricted 813,456 92,846 1,293,056 2,199,358 Total net assets 4,719,726 189,718 18,089,061 22,998,505 TOTAL LIABILITIES AND NET ASSETS 6,228,475$ 1,123,961$ 21,313,453$ 28,665,889$ CITY OF GEORGETOWN, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 STORMWATER TOTAL AIRPORT SANITATION DRAINAGE NONMAJOR FUND FUND FUND ENTERPRISE FUNDS OPERATING REVENUES: Waste 4,320,335$ 4,320,335$ Other 3,308,889$ 77,712 1,832,165$ 5,218,766 Total operating revenues 3,308,889 4,398,047 1,832,165 9,539,101 OPERATING EXPENSES: Depreciation 400,081 4,640 559,988 964,709 Utility contracts 4,282,685 4,282,685 Other 2,989,876 996,499 3,986,375 Total operating expenses 3,389,957 4,287,325 1,556,487 9,233,769 NET OPERATING INCOME (LOSS) (81,068) 110,722 275,678 305,332 NONOPERATING REVENUES (EXPENSES): Investment earnings 23,535 143 39,502 63,180 Donations and grants 27,071 27,071 Interest and fiscal charges (69,420) (28,404) (132,526) (230,350) Other 51,712 51,712 Total nonoperating revenues (expenses) 32,898 (28,261) (93,024) (88,387) INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (48,170) 82,461 182,654 216,945 CONTRIBUTIONS AND TRANSFERS: Capital contributions 3,396,883 3,396,883 Transfer in 175,600 175,600 Transfers out (135,157) (173,036) (308,193) Total contributions and transfers 0 40,443 3,223,847 3,264,290 CHANGE IN NET ASSETS (48,170) 122,904 3,406,501 3,481,235 TOTAL NET ASSETS - beginning 4,767,896 66,814 14,682,560 19,517,270 TOTAL NET ASSETS - ending 4,719,726$ 189,718$ 18,089,061$ 22,998,505$ CITY OF GEORGETOWN, TEXAS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 STORMWATER TOTAL AIRPORT SANITATION DRAINAGE NONMAJOR FUND FUND FUND ENTERPRISE FUNDS CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers 3,454,055$ 4,410,692$ 1,838,541$ 9,703,288$ Payments to suppliers (2,722,277) (4,172,806) (686,677) (7,581,760) Franchise fees (90,105) (37,781) (127,886) Payments to employees for services (248,152) (56,839) (252,595) (557,586) Net cash provided by (used for) operating activities 483,626 90,942 861,488 1,436,056 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 175,600 175,600 Transfers out (135,157) (173,036) (308,193) Payments from (to) other funds 13,029 13,029 Net cash provided by (used for) noncapital financing activities 53,472 (173,036) (119,564) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (112,512) (179,390) (291,902) Donations and grants 27,071 27,071 Proceeds from issuance of long-term debt 750,000 750,000 Principal paid on revenue and certificates of obligation bonds (144,505) (149,810) (294,315) Interest paid on revenue and certificates of obligation bonds (65,279) (39,766) (133,376) (238,421) Net cash provided by (used for) capital and related financing activities (182,713) (152,278) 287,424 (47,567) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 23,535 143 39,502 63,180 Change in temporary investments (121,623) (5,939) (127,562) Net cash provided by (used for) investing activities (98,088) 143 33,563 (64,382) Net increase (decrease) in cash and cash equivalents 202,825 (7,721) 1,009,439 1,204,543 Cash and cash equivalents at beginning of year 50,462 7,721 96,574 154,757 Cash and cash equivalents at end of year 253,287 1,106,013 1,359,300 Classified as: Current assets 253,287 368,195 621,482 Restricted assets 737,818 737,818 Total 253,287$ $ 1,106,013$ 1,359,300$ Non-cash disclosure Developer contributions 3,396,883$ 3,396,883$ (continued) CITY OF GEORGETOWN, TEXAS NONMAJOR ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 20 OPERATING INCOME (LOSS) Adjustments to reconcile operating income (loss) to cash provided by (used in) operating activities: Depreciation Other income Bad debt expense Decrease (increase) in inventories Decrease (increase) in accounts receivable Increase (decrease) in accounts payable Increase (decrease) in compensated absences payable Net cash provided by (used in) operating activities COMBINING STATEMENT OF CASH FLOW 008 STORMWATER TOTAL AIRPORT SANITATION DRAINAGE NONMAJOR FUND FUND FUND ENTERPRISE FUNDS (81,068)$ 110,722$ 275,678$ 305,332$ 400,081 4,640 559,988 964,709 51,712 51,712 (639) (2,876) (1,057) (4,572) 26,005 26,005 94,093 15,521 7,433 117,047 (7,743) (45,515) 26,389 (26,869) 1,185 8,450 (6,943) 2,692 483,626$ 90,942$ 861,488$ 1,436,056$ WS (CONTINUED) INTERNAL SERVICE FUNDS AS OF SEPTEMBER 30, 2008 FLEET JOINT FACILITIES INFORMATION MANAGEMENT SERVICES MAINTENANCE SERVICES TOTAL FUND FUND FUND FUND 2008 ASSETS: Current: Cash and cash equivalents 267,387$ 440,240$ 88,548$ 67,292$ 863,467$ Investments 519,045 854,584 171,886 130,627 1,676,142 Prepaid expense 2,961 2,961 Accounts receivable 97,081 97,081 Inventories 295,902 295,902 Total current assets 786,432 1,690,768 260,434 197,919 2,935,553 Property and equipment Land and land rights 217,118 217,118 Buildings and improvements 38,145 808,562 492,348 2,615,017 3,954,072 Machinery, furniture and equipmen 14,335,924 1,096,635 468,198 452,109 16,352,866 Units in progress 113,646 113,646 Total property and equipment cos 14,374,069 2,122,315 960,546 3,180,772 20,637,702 Less accumulated depreciation (7,769,220)(1,849,311)(625,594)(2,005,989)(12,250,114) Net property and equipmen 6,604,849 273,004 334,952 1,174,783 8,387,588 TOTAL ASSETS 7,391,281$ 1,963,772$ 595,386$ 1,372,702$ 11,323,141$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities Accounts payable 54,337$ 1,077,210$ 97,471$ 45,078$ 1,274,096$ Compensated absence 10,667 20,210 29,857 60,734 Total current liabilities 65,004 1,077,210 117,681 74,935 1,334,830 Long term liabilities Compensated absence 14,835 41,726 52,568 109,129 Total liabilities 79,839 1,077,210 159,407 127,503 1,443,959 Net Assets: Invested in capital assets (net of related deb 6,604,849 273,004 334,952 1,174,783 8,387,588 Unrestricted 706,593 613,558 101,027 70,416 1,491,594 Total net assets 7,311,442 886,562 435,979 1,245,199 9,879,182 TOTAL LIABILITIES AND NET ASSETS 7,391,281$ 1,963,772$ 595,386$ 1,372,702$ 11,323,141$ CITY OF GEORGETOWN, TEXAS 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, 2008 FLEET JOINT FACILITIES INFORMATION MANAGEMENT SERVICES MAINTENANCE SERVICES TOTAL FUND FUND FUND FUND 2008 OPERATING REVENUES - Charges for services 1,476,926$ 6,883,497$ 1,437,429$ 1,669,142$ 11,466,994$ OPERATING EXPENSES Administration 771,601 771,601 Accounting 649,088 649,088 City wide HR services 708,198 708,198 Economic development administration 421,000 421,000 Employee and organizational services 407,483 407,483 Facilities maintenance contracts 810,467 810,467 Facilities maintenance services 557,966 557,966 Finance and administration 595,545 595,545 Fleet management operations 271,156 271,156 GIS 177,473 177,473 Information resources 932,538 932,538 Information resources capital replacement & contracts 685,526 685,526 Joint services contracts 800,632 800,632 Legal services 569,875 569,875 Purchasing and properties 456,612 456,612 Service center 785,563 785,563 Systems engineering 803,872 803,872 Utility office 1,028,948 1,028,948 Depreciation 1,342,436 28,636 72,121 345,119 1,788,312 Total operating expenses 2,399,155 7,418,963 1,440,554 1,963,183 13,221,855 NET OPERATING (LOSS)(922,229) (535,466) (3,125) (294,041) (1,754,861) NONOPERATING REVENUES (EXPENSES) Investment earnings 46,200 50,204 27,911 25,284 149,599 Loss on sale of assets (22,159) (22,159) Other 92,944 277,729 1,292 371,965 Total nonoperating revenues (expenses 116,985 327,933 27,911 26,576 499,405 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFER (805,244) (207,533) 24,786 (267,465) (1,255,456) CONTRIBUTIONS AND TRANSFERS Capital contributions 669,201 9,711 230,297 909,209 Transfers in 987,474 477,000 28,400 239,503 1,732,377 Transfers out (90,000) (24,060) 0 (27,396) (141,456) Total contributions and transfers 1,566,675 452,940 38,111 442,404 2,500,130 CHANGE IN NET ASSETS 761,431 245,407 62,897 174,939 1,244,674 NET ASSETS, Beginning of period 6,550,011 641,155 373,082 1,070,260 8,634,508 NET ASSETS, End of period 7,311,442$ 886,562$ 435,979$ 1,245,199$ 9,879,182$ CITY OF GEORGETOWN, TEXAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 FLEET JOINT FACILITIES INFORMATION MANAGEMENT SERVICES MAINTENANCE SERVICES TOTALS FUND FUND FUND FUND 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Department contributions 1,569,870$ 6,872,861$ 1,437,429$ 1,669,142$ 11,549,302$ Payments to suppliers (702,242) (2,639,911) (883,175) (1,022,719) (5,248,047) Payments to employees for services (336,356) (4,204,193) (426,564) (726,353) (5,693,466) Net cash provided by (used in) operating activities 531,272 28,757 127,690 (79,930) 607,789 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 987,474 477,000 28,400 239,503 1,732,377 Transfers out (90,000) (24,060) (27,396) (141,456) Net cash provided by noncapital financing activities 897,474 452,940 28,400 212,107 1,590,921 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (1,207,364) (23,245) (91,976) (151,922) (1,474,507) Net cash (used) for capital and related financing activities (1,207,364) (23,245) (91,976) (151,922) (1,474,507) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 46,200 50,204 27,911 25,284 149,599 Change in temporary investments (62,457) (162,756) (23,686) 38,667 (210,232) Net cash provided by (used for) investing activities (16,257) (112,552) 4,225 63,951 (60,633) Net increase in cash 205,125 345,900 68,339 44,206 663,570 Cash and cash equivalents at beginning of year 62,262 94,340 20,209 23,086 199,897 Cash and cash equivalents at end of year 267,387 440,240 88,548 67,292 863,467 Classified as: Current assets 267,387 440,240 88,548 67,292 863,467 Total 267,387$ 440,240$ 88,548$ 67,292$ 863,467$ Non-cash disclosure Proprietary transfer to internal service funds 19,000$ 113,646$ 132,646$ Governmental transfers to internal service funds 9,711$ 650,201 116,651 776,563$ (continued) CITY OF GEORGETOWN, TEXAS STATEMENT OF CASH FLOWS (CONTINUED) INTERNAL SERVICE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2008 FLEET JOINT FACILITIES INFORMATION MANAGEMENT SERVICES MAINTENANCE SERVICES FUND FUND FUND FUND 2008 OPERATING INCOME (LOSS)(922,229)$ (535,466)$ (3,125)$ (294,041)$ (1,754,861)$ Adjustments to reconcile operating income (loss) to cash provided by (used in) operating activities: Depreciation 1,342,436 28,636 72,121 345,119 1,788,312 Other income 92,944 277,729 1,292 371,965 Decrease (increase) in prepaid expenses 2,179 2,496 4,675 Decrease (increase) in inventories (22,644) (22,644) Decrease (increase) in accounts receivable (10,636) (10,636) Increase (decrease) in accounts payable 13,956 288,959 51,350 (140,061) 214,204 Increase (decrease) in compensated absences payable 4,165 4,848 7,761 16,774 Net cash provided by (used in) operating activities 531,272$ 28,757$ 127,690$ (79,930)$ 607,789$ 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, 2008 and 2007 TOTALS 2008 2007 ASSETS: Current Assets: Cash and cash equivalents 40,335$ Cash and cash equivalents - restricted 107,518 Investments 2,028,878 Investments - restricted 788,469 Accounts receivable: Services (net of allowance for uncollectibles) 7,239,339$ 6,988,757 Other 105,409 585,677 Inventories 2,316,531 2,195,950 Total current assets 9,661,279 12,735,584 Noncurrent Assets: Deferred charges - bond issuance costs 621,788 625,469 Total noncurrent assets 621,788 625,469 Property and Equipment: Land and land rights 1,120,807 1,120,807 Distribution system 98,185,648 84,880,023 Buildings and improvements 73,707 73,707 Machinery, furniture and equipment 609,614 572,308 Construction in progress 156,828 3,080,700 Total cost property and equipment 100,146,604 89,727,545 Less accumulated depreciation (19,780,555) (16,786,339) Net property and equipment 80,366,049 72,941,206 TOTAL ASSETS 90,649,116$ 86,302,259$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities: Accounts payable 7,298,039$ 5,792,171$ Compensated absence 94,592 100,112 Due to other funds 316,514 Current portion of long-term debt 1,342,996 1,152,644 Accrued interest 121,046 146,695 Total current liabilities payable from unrestricted assets 9,173,187 7,191,622 Current liabilities payable from restricted assets: Construction contracts and retainages payable 300,733 Customer deposits 923,087 895,987 Total current liabilities payable from restricted assets 923,087 1,196,720 Total current liabilities 10,096,274 8,388,342 Long term liabilities: Compensated absence 150,285 164,968 Long-term debt 23,281,954 22,649,202 Total noncurrent liabilities 23,432,239 22,814,170 Total liabilities 33,528,513 31,202,512 Net Assets: Invested in capital assets (net of related debt) 55,741,099 51,423,678 Unrestricted 1,379,504 3,676,069 Total net assets 57,120,603 55,099,747 TOTAL LIABILITIES AND NET ASSETS 90,649,116$ 86,302,259$ CITY OF GEORGETOWN, TEXAS ELECTRIC FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 OPERATING REVENUES: Electric services 51,833,477$ 42,805,466$ Other: Penalties 393,131 381,845 Connection and hookup fees 620,354 841,444 Total other 1,013,485 1,223,289 TOTAL OPERATING REVENUES 52,846,962 44,028,755 OPERATING EXPENSES: Electric operations: Personnel 694,275 2,443,522 Operations 535,924 1,831,831 Total electric operations 1,230,199 4,275,353 Depreciation 2,994,216 2,430,439 Electric contracts 42,790,537 31,526,044 TOTAL OPERATING EXPENSES 47,014,952 38,231,836 NET OPERATING INCOME 5,832,010 5,796,919 NONOPERATING REVENUES (EXPENSES): Investment earnings 110,368 393,722 Interest and fiscal charges (1,168,347) (704,336) Other 1,094,292 1,110,663 Total nonoperating revenues (expenses) 36,313 800,049 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 5,868,323 6,596,968 CONTRIBUTIONS AND TRANSFERS: Capital contributions 736,053 1,052,389 Transfers in 86,161 86,161 Transfers out (4,669,681) (3,606,779) Total contributions and transfers (3,847,467) (2,468,229) CHANGE IN NET ASSETS 2,020,856 4,128,739 NET ASSETS, Beginning of period* 55,099,747 50,971,008 NET ASSETS, End of period 57,120,603$ 55,099,747$ CITY OF GEORGETOWN, TEXAS WATER SERVICES FUND COMPARATIVE STATEMENTS OF NET ASSETS AS OF SEPTEMBER 30, 2008 and 2007 TOTALS 2008 2007 ASSETS: Current Assets: Cash and cash equivalents 6,643,715$ 3,523,465$ Cash and cash equivalents - restricted 232,545 23,699 Investments 12,896,623 14,325,178 Investments - restricted 6,787,483 173,794 Prepaid expenses 1,780,065 1,607,060 Accounts receivable: Services (net of allowance for uncollectibles) 3,072,176 2,963,868 Other 1,594,728 1,791,635 Due from other funds 430,515 1,652,820 Total current assets 33,437,850 26,061,519 Noncurrent Assets: Long-term note receivables 2,282,857 3,283,238 Deferred charges - bond issuance costs 800,643 805,473 Total noncurrent assets 3,083,500 4,088,711 Property and Equipment: Land and land rights 469,354 469,355 Distribution system 147,771,057 136,757,654 Buildings and improvements 3,019,794 3,019,794 Machinery, furniture and equipment 310,775 289,785 Construction in progress 5,123,509 2,739,563 Total cost property and equipment 156,694,489 143,276,151 Less accumulated depreciation (33,640,166) (30,025,280) Net property and equipment 123,054,323 113,250,871 TOTAL ASSETS 159,575,673$ 143,401,101$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities: Accounts payable 1,436,055$ 571,272$ Compensated absence 90,505 75,103 Current portion of long-term debt 2,297,004 2,047,356 Accrued interest 202,739 175,042 Total current liabilities payable from unrestricted assets 4,026,303 2,868,773 Current liabilities payable from restricted assets: Construction contracts and retainages payable 203,037 147,779 Total current liabilities payable from restricted assets 203,037 147,779 Total current liabilities 4,229,340 3,016,552 Long term liabilities: Compensated absence 149,114 128,158 Unearned revenue 972,140 1,995,665 Long-term debt 30,358,046 25,220,800 Total noncurrent liabilities 31,479,300 27,344,623 Total liabilities 35,708,640 30,361,175 Net Assets: Invested in capital assets (net of related debt) 96,707,051 87,938,338 Unrestricted 27,159,982 25,101,588 Total net assets 123,867,033 113,039,926 TOTAL LIABILITIES AND NET ASSETS 159,575,673$ 143,401,101$ CITY OF GEORGETOWN, TEXAS WATER SERVICES FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 OPERATING REVENUES: Water/Irrigation: Water services 13,602,151$ 10,345,351$ Wastewater services 7,423,190 7,039,407 Irrigation services 399,556 207,077 Water/Wastewater tap fees 689,670 1,134,142 Total water/irrigation 22,114,567 18,725,977 Other: Penalties 175,872 192,755 Connection and hookup fees 77,074 84,183 Service fees 946,351 1,797,936 Total other 1,199,297 2,074,874 TOTAL OPERATING REVENUES 23,313,864 20,800,851 OPERATING EXPENSES: Water services distribution: Personnel 1,676,519 1,475,443 Operations 4,572,678 1,691,236 Total water services distribution 6,249,197 3,166,679 Depreciation 3,614,886 3,438,831 Water services plant management 2,027,713 3,704,164 Water services contracts 5,625,261 5,892,775 TOTAL OPERATING EXPENSES 17,517,057 16,202,449 NET OPERATING INCOME 5,796,807 4,598,402 NONOPERATING REVENUES (EXPENSES): Investment earnings 845,312 1,014,538 Interest and fiscal charges (1,462,964) (1,382,513) Other 1,149,468 3,257,318 Total nonoperating revenue (expenses) 531,816 2,889,343 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 6,328,623 7,487,745 CONTRIBUTIONS AND TRANSFERS: Capital contributions 6,911,900 4,354,000 Transfers out (2,413,416) (2,123,927) Total contributions and transfers 4,498,484 2,230,073 CHANGE IN NET ASSETS 10,827,107 9,717,818 NET ASSETS, Beginning of period 113,039,926 103,322,108 NET ASSETS, End of period 123,867,033$ 113,039,926$ CITY OF GEORGETOWN, TEXAS AIRPORT FUND COMPARATIVE STATEMENTS OF NET ASSETS AS OF SEPTEMBER 30, 2008 and 2007 TOTALS 2008 2007 ASSETS: Current Assets: Cash and cash equivalents 253,287$ 50,462$ Investments 491,675 370,052 Accounts receivable: Services (net of allowance for uncollectibles) 135,583 142,527 Other 86,510 Inventories 22,294 48,299 Total current assets 902,839 697,850 Noncurrent Assets: Deferred charges - bond issuance costs 54,657 59,618 Total noncurrent assets 54,657 59,618 Property and Equipment: Land and land rights 981,500 981,500 Distribution system 79,335 79,335 Buildings and improvements 9,577,597 9,577,597 Machinery, furniture and equipment 137,577 137,577 Total cost property and equipment 10,776,009 10,776,009 Less accumulated depreciation (5,505,030) (5,104,948) Net property and equipment 5,270,979 5,671,061 TOTAL ASSETS 6,228,475$ 6,428,529$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities: Accounts payable 102,415$ 110,158$ Compensated absence 11,279 10,670 Current portion of long-term debt 150,133 144,505 Accrued interest 7,370 8,191 Total current liabilities 271,197 273,524 Long term liabilities: Compensated absence 22,976 22,400 Long-term debt 1,214,576 1,364,709 Total noncurrent liabilities 1,237,552 1,387,109 Total liabilities 1,508,749 1,660,633 Net Assets: Invested in capital assets (net of related debt) 3,906,270 4,221,465 Unrestricted 813,456 546,431 Total net assets 4,719,726 4,767,896 TOTAL LIABILITIES AND NET ASSETS 6,228,475$ 6,428,529$ CITY OF GEORGETOWN, TEXAS AIRPORT FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 OPERATING REVENUES: Fuel sales 2,765,552$ 1,989,990$ Contract leases 198,809 163,717 Hangar/tie down rental fees 339,301 315,111 Terminal sales 5,227 4,468 TOTAL OPERATING REVENUES 3,308,889 2,473,286 OPERATING EXPENSES: Administration: Personnel 249,337 234,574 Operations 2,740,539 1,913,371 Total administration 2,989,876 2,147,945 Depreciation 400,081 370,250 TOTAL OPERATING EXPENSES 3,389,957 2,518,195 NET OPERATING LOSS (81,068) (44,909) NONOPERATING REVENUES (EXPENSES) Investment earnings 23,535 28,111 Interest and fiscal charges (69,420) (71,190) Donations and grants 27,071 Other 51,712 49,824 Total nonoperating revenues (expenses) 32,898 6,745 TRANSFERS: Donations and grants 1,047,145 Total transfers 1,047,145 CHANGE IN NET ASSETS (48,170) 1,008,981 NET ASSETS, Beginning of period 4,767,896 3,758,915 NET ASSETS, End of period 4,719,726$ 4,767,896$ CITY OF GEORGETOWN, TEXAS SANITATION FUND COMPARATIVE STATEMENTS OF NET ASSETS AS OF SEPTEMBER 30, 2008 and 2007 TOTALS 2008 2007 ASSETS: Current Assets: Cash and cash equivalents 7,721$ Accounts receivable: Services (net of allowance for uncollectibles) 509,362$ 522,007 Total current assets 509,362 529,728 Noncurrent Assets: Deferred charges - bond issuance costs 12,726 13,434 Total noncurrent assets 12,726 13,434 Property and Equipment: Land and land rights Buildings and improvements 494,000 494,000 Machinery, furniture and equipment 79,573 52,000 Construction in progress 84,940 Total cost property and equipment 658,513 546,000 Less accumulated depreciation (56,640) (52,000) Net property and equipment 601,873 494,000 TOTAL ASSETS 1,123,961$ 1,037,162$ LIABILITIES AND NET ASSETS:Liabilities: Current liabilities: Accounts payable 319,135$ 364,650$ Compensated absence 6,819 3,634 Due to other funds 89,195 76,166 Current portion of long-term debt 20,000 10,000 Accrued interest 2,661 4,730 Total current liabilities 437,810 459,180 Long term liabilities: Compensated absence 11,433 6,168 Long-term debt 485,000 505,000 Total liabilities 934,243 970,348 Net Assets: Invested in capital assets (net of related debt) 96,872 Unrestricted 92,846 66,814 Total net assets 189,718 66,814 TOTAL LIABILITIES AND NET ASSETS 1,123,961$ 1,037,162$ CITY OF GEORGETOWN, TEXAS SANITATION FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 OPERATING REVENUES: Sanitation: Sanitation services 4,320,335$ 3,688,612$ Total sanitation 4,320,335 3,688,612 Other: Penalties 33,281 37,184 Connection and hookup fees 14,931 12,978 Other 29,500 Total other 77,712 50,162 TOTAL OPERATING REVENUES 4,398,047 3,738,774 OPERATING EXPENSES: Administration: Personnel 65,289 47,679 Operations 553,730 7,447 Total administration 619,019 55,126 Sanitation contracts 3,663,666 3,551,204 Depreciation 4,640 TOTAL OPERATING EXPENSES 4,287,325 3,606,330 NET OPERATING INCOME 110,722 132,444 NONOPERATING REVENUES (EXPENSES) Investment earnings 143 1,721 Interest and fiscal charges (28,404) (5,437) Total nonoperating revenues (expenses)(28,261) (3,716) INCOME BEFORE TRANSFERS 82,461 128,728 TRANSFERS IN (OUT): Transfers in 175,600 70,000 Transfers out (135,157) (231,055) Total transfers 40,443 (161,055) CHANGE IN NET ASSETS 122,904 (32,327) NET ASSETS, Beginning of period 66,814 99,141 NET ASSETS, End of period 189,718$ 66,814$ CITY OF GEORGETOWN, TEXAS STORMWATER DRAINAGE FUND COMPARATIVE STATEMENTS OF NET ASSETS AS OF SEPTEMBER 30, 2008 and 2007 TOTALS 2008 2007 ASSETS: Current Assets: Cash and cash equivalents 368,195$ 96,574$ Cash and cash equivalents - restricted 737,818 Investments 714,188 708,249 Accounts receivable: Services (net of allowance for uncollectibles) 215,707 222,083 Total current assets 2,035,908 1,026,906 Noncurrent Assets: Deferred charges - bond issuance costs 104,117 98,690 Total noncurrent assets 104,117 98,690 Property and Equipment: Distribution system 21,512,677 17,055,550 Machinery, furniture and equipment 14,050 14,050 Construction in progress 25,266 942,807 Total cost property and equipment 21,551,993 18,012,407 Less accumulated depreciation (2,378,565) (1,818,577) Net property and equipment 19,173,428 16,193,830 TOTAL ASSETS 21,313,453$ 17,319,426$ LIABILITIES AND NET ASSETS: Liabilities: Current liabilities: Accounts payable 53,516$ 63,813$ Compensated absence 14,580 16,570 Current portion of long-term debt 172,766 149,811 Accrued interest 18,404 13,827 Total current liabilities 259,266 244,021 Long term liabilities: Compensated absence 22,651 27,604 Long-term debt 2,942,475 2,365,241 Total noncurrent liabilities 2,965,126 2,392,845 Total liabilities 3,224,392 2,636,866 Net Assets: Invested in capital assets (net of related debt) 16,796,005 13,777,468 Unrestricted 1,293,056 905,092 Total net assets 18,089,061 14,682,560 TOTAL LIABILITIES AND NET ASSETS 21,313,453$ 17,319,426$ CITY OF GEORGETOWN, TEXAS STORMWATER DRAINAGE FUND COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FISCAL YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 OPERATING REVENUES: Stormwater drainage fees 1,815,722$ 1,773,130$ Other: Penalties 9,963 13,745 Service fees 6,480 6,898 Total other 16,443 20,643 TOTAL OPERATING REVENUES 1,832,165 1,793,773 OPERATING EXPENSES: Stormwater drainage: Personnel 245,652 256,415 Operations 750,847 686,548 Total stormwater drainage 996,499 942,963 Depreciation 559,988 485,320 TOTAL OPERATING EXPENSES 1,556,487 1,428,283 NET OPERATING INCOME 275,678 365,490 NONOPERATING REVENUES (EXPENSES): Investment earnings 39,502 57,392 Interest and fiscal charges (132,526) (19,407) Other Total nonoperating revenue (expenses) (93,024) 37,985 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 182,654 403,475 CONTRIBUTIONS AND TRANSFERS: Capital contributions 3,396,883 2,397,434 Transfers out (173,036) (181,814) Total contributions and transfers 3,223,847 2,215,620 CHANGE IN NET ASSETS 3,406,501 2,619,095 NET ASSETS, Beginning of period 14,682,560 12,063,465 NET ASSETS, End of period 18,089,061$ 14,682,560$ 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, 2008 BALANCE BALANCE OCTOBER 1, SEPTEMBER 30, 2007 ADDITIONS DEDUCTIONS 2008 Cafeteria Plan-Flex Spending: ASSETS: Cash and cash equivalents $ 34,107 $ 139,800 $ 147,137 $ 26,770 TOTAL ASSETS $ 34,107 $ 139,800 $ 147,137 $ 26,770 LIABILITIES: Accounts payable $ 34,107 $ 139,800 $ 147,137 $ 26,770 TOTAL LIABILITIES $ 34,107 $139,800 $147,137 $26,770 Public Improvement Districts: ASSETS: Cash and cash equivalents $ 47,016 $ 433,405 $ 473,709 $ 6,712 Accounts receivable 260,042 430 259,612 TOTAL ASSETS $ 307,058 $ 433,405 $ 474,139 $ 266,324 LIABILITIES: Accounts payable $ 53,007 $ 433,405 $ 473,709 $ 12,703 Due to other governments 254,051 430 253,621 TOTAL LIABILITIES $ 307,058 $ 433,405 $ 474,139 $ 266,324 Texas Capital Fund Repayments: ASSETS: Accounts receivable $ 702,926 $ $ 69,590 $ 633,336 TOTAL ASSETS $ 702,926 $ $ 69,590 $ 633,336 LIABILITIES: Due to other governments $ 702,926 $ $ 69,590 $ 633,336 TOTAL LIABILITIES $ 702,926 $ $ 69,590 $ 633,336 TOTAL AGENCY FUNDS ASSETS: Cash and cash equivalents $ 81,123 $ 573,205 $ 620,846 $ 33,482 Accounts receivable 962,968 70,020 892,948 TOTAL ASSETS $ 1,044,091 $ 573,205 $ 690,866 $ 926,430 LIABILITIES: Accounts payable $ 87,114 $ 573,205 $ 620,846 $ 39,473 Due to other governments 956,977 70,020 886,957 TOTAL LIABILITIES $ 1,044,091 $ 573,205 $ 690,866 $ 926,430 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, 2008 and 2007 2008 2007 GOVERNMENTAL FUNDS CAPITAL ASSETS Land $ 4,004,996 $ 3,891,017 Buildings 39,048,927 35,174,897 Improvements 155,311,423 134,745,071 Machinery, furniture and equipment 5,746,899 4,143,144 Construction in progress 11,770,923 14,664,057 TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS $ 215,883,168 $ 192,618,186 INVESTMENT IN GOVERNMENTAL FUNDS CAPITAL ASSETS General Fund $ 6,537,948 $ 6,535,056 Capital Projects Funds: General obligation bonds and certificates of obligation 72,157,660 62,520,240 State grant 411,531 200,000 Other 125,666,415 112,253,276 Special Revenue Funds: Federal grant 2,265,506 2,265,506 Other 2,232,584 2,232,584 State grant 2,351,975 2,351,975 Transfer from proprietary fund 2,283,110 2,283,110 Acquisitions prior to August 31, 1985 - source undetermined 1,976,439 1,976,439 TOTAL INVESTMENT IN GOVERNMENTAL FUNDS CAPITAL ASSETS $ 215,883,168 $ 192,618,186 CITY OF GEORGETOWN, TEXAS CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY SEPTEMBER 30, 2008 LAND BUILDINGS IMPROVEMENTS EQUIPMENT CONSTRUCTION IN PROGRESS TOTAL FUNCTION AND ACTIVITY Culture-recreation Library $ 11,059,549 $ 61,340 $ 910,487 $ 12,031,376 Parks administration 639,192 1,880,062 37,910 2,557,164 Parks maintenance $ 743,579 5,985 2,428,328 214,014 3,391,906 Recreation 113,979 2,149,070 1,042,254 546,075 3,851,378 Total culture-recreation 857,558 13,853,796 5,411,984 1,708,486 21,831,824 Development Planning administration 21,995 131,679 153,674 Planning 34,212 34,212 Inspections 81,206 81,206 Total development 21,995 247,097 269,092 Economic development Administration 25,000 5,489 30,489 Total economic development 25,000 5,489 30,489 Fire Administration 13,614 44,314 57,928 Operations 2,846,523 241,351 304,637 3,392,511 Total fire 13,614 2,846,523 241,351 348,951 3,450,439 General Government City council 593,084 784,722 146,832 107,998 1,632,636 City manager's office 296,852 115,592 23,620 436,064 Facilities 289,374 13,520,653 3,015,222 177,121 17,002,370 General government 463,297 7,190,181 4,161,758 471,434 12,286,670 Total general government 1,642,607 21,495,556 7,439,404 780,173 31,357,740 Highways and streets Bridges 9,039,783 9,039,783 Streets 130,705,589 246,164 130,951,753 Streets capital improvements 1,491,217 1,890,546 423,044 3,804,807 Total highways and streets 1,491,217 141,635,918 669,208 143,796,343 Police Administration 65,521 466,828 1,394,042 1,926,391 Support services bureau 342,514 342,514 Field operations bureau 155,669 155,669 Animal services 787,531 68,943 81,668 938,142 Municipal court 13,602 13,602 Total police 853,052 535,771 1,987,495 3,376,318 TOTAL CAPITAL ASSETS 4,004,996 39,048,927 155,311,423 5,746,899 204,112,245 CONSTRUCTION IN PROGRESS 11,770,923$ 11,770,923 11,770,923 11,770,923 TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS $ 4,004,996 $ 39,048,927 $ 155,311,423 $ 5,746,899 $ 11,770,923 $ 215,883,168 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, 2008 BALANCE 10/1/2007 ADDITIONS DELETIONS BALANCE 9/30/2008 FUNCTION AND ACTIVITY Culture-recreation Library $ 11,979,475 $ 51,901 $ 12,031,376 Parks administration 2,456,229 100,935 2,557,164 Parks maintenance 3,333,967 57,939 3,391,906 Recreation 2,986,862 864,516 3,851,378 Total culture-recreation 20,756,533 1,075,291 21,831,824 Development Planning administration 95,288 58,386 153,674 Planning 34,212 34,212 Inspections 29,206 52,000 81,206 Total development 158,706 110,386 269,092 Economic development Administration 30,489 30,489 Total economic development 30,489 30,489 Fire Administration 57,929 57,929 Operations 3,239,101 153,409 3,392,510 Total fire 3,297,030 153,409 3,450,439 General Government City council 1,632,636 1,632,636 City manager's office 336,065 100,000 436,065 Facilities 10,611,410 6,390,960 17,002,370 General government 11,487,463 799,206 12,286,669 Total general government 24,067,574 7,290,166 31,357,740 Highways and streets Bridges 6,539,783 2,500,000 9,039,783 Streets 116,806,069 14,181,356 130,987,425 Streets capital improvements 3,690,314 78,821 3,769,135 Total highways and streets 127,036,166 16,760,177 143,796,343 Police Administration 1,593,711 332,680 1,926,391 Support services bureau 82,540 259,974 342,514 Field operations bureau 43,330 112,340 155,670 Animal services 874,449 63,693 938,142 Municipal court 13,602 13,602 Total police 2,607,632 768,687 3,376,319 TOTAL CAPITAL ASSETS 177,954,129 26,158,116 204,112,245 CONSTRUCTION IN PROGRESS 14,664,057 18,623,575 $ 21,516,709 11,770,923 14,664,057 18,623,575 21,516,709 11,770,923 TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS $ 192,618,186 $ 44,781,691 $ 21,516,709 $ 215,883,168 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 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 ..................................................................................................................................... 132 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.............................................................................................. 166 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 ........................................................................................................................... 170 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 SIX FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008 2007 2006 2005 Governmental activities Invested in capital assets, net of related debt 130,666,842$ 116,738,898$ 122,268,551$ 107,692,319$ Restricted 19,388,282 36,306,468 18,254,529 16,836,756 Unrestricted 20,780,630 5,598,174 6,567,654 9,833,977 Total governmental activities net assets 170,835,754$ 158,643,540$ 147,090,734$ 134,363,052$ Business-type activities Invested in capital assets, net of related debt 174,841,229$ 141,211,947$ 117,419,122$ 98,081,179$ Restricted 5,389,063 1,251,844 Unrestricted 29,144,912 30,295,994 30,942,450 31,393,246 Total business-type activities net assets 203,986,141$ 171,507,941$ 153,750,635$ 130,726,269$ Primary government Invested in capital assets, net of related debt 302,601,662$ 257,950,845$ 239,687,673$ 205,773,498$ Restricted 25,011,217 36,306,468 23,643,592 18,088,600 Unrestricted 47,209,016 35,894,168 37,510,104 41,227,223 Total primary government net assets 374,821,895$ 330,151,481$ 300,841,369$ 265,089,321$ Source: Audited Financial Statements of City of Georgetown. 2004 2003 96,516,068$ 102,199,237$ 12,067,284 5,073,123 7,169,828 6,886,592 115,753,180$ 114,158,952$ 88,000,994$ 74,920,347$ 389,312 844,225 29,760,025 28,239,895 118,150,331$ 104,004,467$ 184,517,062$ 117,119,584$ 12,456,596 5,917,348 36,929,853 35,126,487 233,903,511$ 158,163,419$ CITY OF GEORGETOWN, TEXAS CHANGES IN NET ASSETS LAST SIX FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008 2007 2006 2005 Expenses Governmental activities: Culture-recreation 6,978,982$ 5,460,488$ 5,649,191$ 4,701,552$ Development 2,457,868 2,518,113 2,325,761 2,061,017 Fire 5,553,135 4,962,020 4,397,108 3,767,816 General government 3,604,501 3,227,227 3,671,786 4,405,436 Police 9,595,062 8,251,836 7,392,816 5,961,731 Streets 3,147,899 5,212,766 3,757,919 1,522,161 Interest on long-term debt 4,181,243 2,976,803 2,010,409 2,256,135 Total governmental activities expenses 35,518,690 32,609,253 29,204,990 24,675,848 Business-type activities Airport 3,459,377 2,589,385 2,753,948 2,606,270 Electric 48,183,299 38,936,172 37,866,853 29,026,475 Sanitation 4,315,729 3,611,767 3,519,487 2,868,758 Stormwater 1,689,013 1,447,690 1,370,267 1,216,219 Water 18,980,021 17,584,962 15,668,061 14,234,866 Total business-type activities expenses 76,627,439 64,169,976 61,178,616 49,952,588 Total primary government expense 112,146,129$ 96,779,229$ 90,383,606$ 74,628,436$ Program Revenues Governmental activities: Charges for services: Culture-recreation 1,391,416$ 1,101,159$ 991,505$ 812,920$ Development 1,232,533 1,596,801 1,761,166 1,350,955 Fire 1,044,870 848,066 210,453 478,378 General government 1,418,786 783,235 635,546 1,452 Police 1,344,259 1,182,064 880,807 838,302 Streets 26,900 101,685 Operating grants and contributions 492,632 683,731 168,863 900,681 Capital grants and contributions 909,209 3,654,737 6,153,637 13,474,330 Total governmental activities program revenues 7,833,705 9,876,693 10,903,662 17,857,018 Business-type activities: Charges for services: Airport 3,308,889 2,473,286 2,595,764 2,352,094 Electric 52,846,962 44,028,755 42,526,728 35,002,038 Sanitation 4,398,047 3,738,774 3,446,566 3,227,268 Stormwater 1,832,165 1,793,773 1,716,066 1,572,854 Water 23,313,864 20,800,851 20,318,603 17,046,731 Capital grants and contributions 11,071,907 8,850,968 14,217,294 6,665,628 Total business-type activities program revenues 96,771,834 81,686,407 84,821,021 65,866,613 Total primary government program revenues 104,605,539$ 91,563,100$ 95,724,683$ 83,723,631$ Net (expense)/revenue Governmental activities (27,684,985)$ (22,732,560)$ (18,301,328)$ (6,818,830)$ Business-type activities 20,144,395 17,516,431 23,642,405 15,914,025 Total primary government net expens (7,540,590)$ (5,216,129)$ 5,341,077$ 9,095,195$ 2004 2003 4,773,059$ 4,165,382$ 1,956,243 1,607,886 3,862,168 3,611,523 4,005,079 3,715,369 5,833,644 5,476,245 2,752,225 3,267,717 1,253,934 1,241,202 24,436,352 23,085,324 1,962,826 1,773,928 26,237,073 23,957,507 2,740,495 2,577,159 986,876 841,591 13,218,349 11,727,956 45,145,619 40,878,141 69,581,971$ 63,963,465$ 672,882$ 643,950$ 1,097,581 887,830 141,280 209,207 769,389 602,434 176,169 228,828 110,077 1,700,000 2,967,378 4,272,249 1,667,154 1,459,523 30,152,942 26,689,395 2,932,480 2,791,467 1,331,962 1,209,132 15,500,302 15,055,711 12,051,096 2,070,954 63,635,936 49,276,182 66,603,314$ 53,548,431$ (21,468,974)$ (18,813,075)$ 18,490,317 8,398,041 (2,978,657)$ (10,415,034)$ CITY OF GEORGETOWN, TEXAS CHANGES IN NET ASSETS (CONTINUED) LAST SIX FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008 2007 2006 2005 General Revenues and Other Changes in Net Assets Governmental activities: Property Tax 12,610,638$ 10,737,981$ 8,919,694$ 8,329,395$ Sales Tax 13,236,686 12,206,099 10,962,790 8,496,160 Taxes - other 1,134,493 1,185,511 844,718 749,301 Franchise taxes 2,739,567 2,083,306 2,209,235 1,942,246 Interest on investments 2,222,952 2,085,055 1,398,706 507,038 Gain on sale of capital assets 859,286 Other 803,334 463,719 1,167,654 Transfers 7,129,529 5,987,414 6,230,148 5,220,063 Total governmental activities 39,877,199$ 34,285,366$ 31,029,010$ 27,271,143$ Business-type activities: Interest on investments 1,018,860$ 1,495,484$ 1,673,167$ 732,461$ Gain on sale of capital assets 160,949 Other 2,295,472 4,417,805 3,938,942 988,566 Transfers (7,129,529) (5,987,414) (6,230,148) (5,220,063) Total business-type activities (3,815,197) (74,125) (618,039) (3,338,087) Total primary governmen 36,062,002$ 34,211,241$ 30,410,971$ 23,933,056$ Changes in Net Assets Governmental activities 12,192,214$ 11,552,806$ 12,727,682$ 20,452,313$ Business-type activities 16,329,198 17,442,306 23,024,366 12,575,938 Total primary governmen 28,521,412$ 28,995,112$ 35,752,048$ 33,028,251$ 2004 2003 6,927,438$ 6,380,597$ 7,395,657 6,091,190 585,921 560,458 1,844,683 1,579,729 171,949 197,103 466,185 2,420,183 5,671,960 4,661,635 23,063,793$ 21,890,895$ 444,169$ 159,864$ 883,338 1,009,560 (5,671,960) (4,661,635) (4,344,453) 10,131,573 18,719,340$ 32,022,468$ 1,594,819$ 3,077,820$ 14,145,864 18,529,614 15,740,683$ 21,607,434$ CITY OF GEORGETOWN, TEXAS FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2008 2007 2006 2005 General Fund Reserved 955,743$ 1,342,069$ 1,038,758$ 1,181,489$ Unreserved 10,986,752 9,223,131 7,917,556 6,289,465 Total general fund 11,942,495$ 10,565,200$ 8,956,314$ 7,470,954$ Reserved 10,889,998$ 20,648,352$ 11,214,177$ 6,280,990$ Unreserved, reported in: Special revenue funds Capital projects funds 18,173,048 19,043,457 9,778,067 12,389,201 Total all other governmental funds 29,063,046$ 39,691,809$ 20,992,244$ 18,670,191$ 2004 2003 2002 2001 2000 1999 952,348$ 879,218$ 256,987$ 199,071$ 71,899$ 72,774$ 4,484,457 3,104,887 2,749,025 3,516,422 3,870,170 2,569,654 5,436,805$ 3,984,105$ 3,006,012$ 3,715,493$ 3,942,069$ 2,642,428$ 4,166,714$ 4,040,224$ 9,700,650$ 9,971,623$ 8,659,997$ 8,560,393$ 462,040 279,158 (1,513,403) (56,377) (57,377) (186,544) 9,192,972 1,948,752 13,821,726$ 6,268,134$ 8,187,247$ 9,915,246$ 8,602,620$ 8,373,849$ CITY OF GEORGETOWN, TEXAS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2008 2007 2006 2005 Revenues Property taxes 12,703,509$ 10,938,488$ 9,047,916$ 8,408,150$ Property assessment 210,659 155,864 173,011 89,134 Sales tax and other taxes 14,000,228 13,053,780 11,495,335 8,927,263 Franchise taxes 2,739,567 2,083,306 2,209,235 1,942,246 Licenses and permits 1,158,433 1,527,886 1,723,082 1,266,295 Charges for service 2,289,493 1,830,286 1,067,460 955,940 Fine and forfeitures 1,110,815 1,067,934 907,983 773,882 Donations and grants 298,803 683,731 168,863 798,822 Investment income 2,222,952 2,085,055 1,398,706 507,038 Other revenue 2,823,254 1,112,119 1,428,485 2,134,184 Total revenues 39,557,713 34,538,449 29,620,076 25,802,954 Expenditures Culture - recreation 6,325,780 5,397,344 4,968,902 5,197,709 Development 2,454,810 2,611,432 2,127,927 1,952,474 Fire services 5,380,247 4,903,325 4,171,527 3,675,033 General government 3,038,876 3,018,023 2,302,417 1,987,046 Highways and streets 2,768,367 1,739,495 1,761,494 1,741,217 Police 9,222,704 8,162,359 7,070,088 5,798,432 Capital outlay 21,622,846 15,538,147 15,950,142 11,916,076 Debt service Principal retirement 3,495,684 2,755,592 2,387,035 2,500,901 Interest and fiscal charges 4,480,504 2,909,116 2,307,846 1,897,649 Total expenditures 58,789,818 47,034,833 43,047,378 36,666,537 Excess (deficiency) of revenues over expenditures (19,232,105) (12,496,384) (13,427,302) (10,863,583) Other financing sources (uses) Transfers in 10,196,752 7,823,154 8,580,426 6,400,033 Transfers out (4,658,144) (3,558,105) (3,940,019) (2,691,211) Sale of property 47,029 54,599 31,102 896,113 Capital lease issued Payment to refunding escrow agent (3,160,147) (7,736,794) (9,243,904) Bonds issued 4,395,000 31,645,334 20,300,000 22,385,166 Total other financing sources (uses)9,980,637 32,804,835 17,234,715 17,746,197 Net change in fund balances (9,251,468)$ 20,308,451$ 3,807,413$ 6,882,614$ Debt service as a percentage of noncapita expenditures 21.5%19.5%17.3%17.8% 2004 2003 2002 2001 2000 1999 7,217,442$ 6,596,246$ 5,991,068$ 5,165,637$ 4,797,764$ 4,224,047$ 81,916 76,816 39,450 21,296 7,797,747 6,477,415 5,563,400 3,958,624 3,755,243 3,137,685 1,844,683 1,579,729 1,489,345 1,378,703 1,387,777 1,052,249 1,078,048 866,451 827,395 731,600 662,344 530,896 919,219 946,450 817,255 130,031 121,931 116,541 684,999 533,703 419,297 417,192 319,886 239,511 286,246 228,827 284,052 227,965 1,082,421 1,608,949 171,949 197,102 404,008 646,471 714,567 453,730 764,592 3,463,798 800,523 1,308,940 1,249,944 982,452 20,846,841 20,966,537 16,635,793 13,986,459 14,091,877 12,346,060 4,509,436 3,904,361 2,611,676 2,520,044 2,989,751 2,587,431 1,914,223 1,565,612 1,666,489 1,253,338 1,284,017 1,276,021 3,832,320 3,507,243 3,400,239 3,104,714 2,513,832 2,415,371 1,905,979 1,619,356 3,019,178 3,131,439 1,937,898 1,762,119 1,931,782 1,587,154 1,885,222 1,193,979 1,032,006 971,154 5,585,002 5,359,643 4,569,239 4,245,123 4,023,129 3,761,479 6,570,321 9,749,963 3,325,393 5,726,880 4,198,563 4,902,985 1,262,782 1,159,660 1,104,989 1,247,477 880,535 964,454 1,253,934 1,241,201 1,099,808 1,128,275 879,267 831,984 28,765,779 29,694,193 22,682,233 23,551,269 19,738,998 19,472,998 (7,918,938) (8,727,656) (6,046,440) (9,564,810) (5,647,121) (7,126,938) 5,856,656 5,190,366 3,614,115 5,933,886 6,553,059 5,052,659 (1,454,546) (528,730) (5,156) (753,026) (827,526) (1,353,212) 75,270 283,120 12,240,000 3,125,000 5,470,000 1,450,000 4,975,000 16,925,230 7,786,636 3,608,959 10,650,860 7,175,533 8,749,717 9,006,292$ (941,020)$ (2,437,481)$ 1,086,050$ 1,528,412$ 1,622,779$ 11.3%12.0%11.4%13.3%11.3%12.3% CITY OF GEORGETOWN, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS CURRENT PERCENT DELINQUENT FISCAL TOTAL TAX OF LEVY TAX YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS 1999 4,195,903$ 4,145,351$ 98.80% 48,279$ 2000 4,952,688 4,726,489 95.43% 56,614 2001 5,357,851 5,115,255 95.47% 64,518 2002 6,201,997 5,979,605 96.41% 22,186 2003 6,912,129 6,598,745 95.47% 46,401 2004 7,525,174 7,215,477 95.88% 30,046 2005 8,694,027 8,274,192 95.17% 161,088 2006 9,442,953 9,096,910 96.34% 76,076 2007 11,500,980 11,138,968 96.85% 111,061 2008 13,156,096 12,744,960 96.87% 91,036 Source: City of Georgetown Tax Assessor. TOTAL OUTSTANDING COLLECTIONS DELINQUENT AS A PERCENT OUTSTANDING TAXES AS A TOTAL TAX OF CURRENT DELINQUENT PERCENT OF COLLECTIONS LEVY TAXES CURRENT LEVY 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% 11,250,029 97.82%250,951 2.18% 12,835,996 97.57%320,807 2.44% CITY OF GEORGETOWN, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS REAL PROPERTY PERSONAL PROPERTY ESTIMATED ESTIMATED FISCAL ASSESSED ACTUAL ASSESSED ACTUAL YEAR VALUE (1)VALUE VALUE (1)VALUE 1999 $ 1,103,282,662 $ 1,103,282,662 $ 96,548,570 $ 96,548,570 2000 1,278,247,074 1,278,247,074 131,824,968 131,824,968 2001 1,450,396,227 1,450,396,227 178,948,682 178,948,682 2002 1,660,732,507 1,660,732,507 178,037,876 178,037,876 2003 1,915,334,794 1,915,334,794 200,707,337 200,707,337 2004 1,935,628,300 1,935,628,300 196,487,678 196,487,678 2005 2,094,066,974 2,094,066,974 166,921,359 166,921,359 2006 2,367,099,144 2,367,099,144 157,265,408 157,265,408 2007 2,749,816,041 2,749,816,041 136,821,317 136,821,317 2008 3,330,727,230 3,330,727,230 238,557,091 238,557,091 Source: City of Georgetown Tax Assessor. (1) Net of exemptions. TOTAL RATIO OF TOTAL ESTIMATED ASSESSED VALUE ASSESSED ACTUAL TO TOTAL ESTIMATED VALUE (1)VALUE ACTUAL VALUE $ 1,199,831,232 $ 1,199,831,232 100.00% 1,410,072,042 1,410,072,042 100.00% 1,629,344,909 1,629,344,909 100.00% 1,838,770,383 1,838,770,383 100.00% 2,116,042,131 2,116,042,131 100.00% 2,132,115,978 2,132,115,978 100.00% 2,260,988,333 2,260,988,333 100.00% 2,524,364,552 2,524,364,552 100.00% 2,886,637,358 2,886,637,358 100.00% 3,569,284,321 3,569,284,321 100.00% 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 FISCAL GENERAL SERVICE TOTAL INDEPENDENT WILLIAMSON YEAR FUND FUND CITY SCHOOL DISTRICT COUNTY TOTAL 1999 0.21 0.14 0.35 1.75 0.35 2.45 2000 0.21 0.13 0.34 1.63 0.35 2.32 2001 0.20 0.11 0.31 1.74 0.40 2.45 2002 0.20 0.11 0.31 1.69 0.40 2.40 2003 0.20 0.10 0.30 1.73 0.46 2.49 2004 0.22 0.10 0.32 1.77 0.48 2.57 2005 0.23 0.11 0.34 1.76 0.51 2.61 2006 0.21 0.14 0.35 1.73 0.50 2.58 2007 0.22 0.15 0.37 1.63 0.50 2.50 2008 0.20 0.15 0.35 1.29 0.47 2.11 Source: Information furnished by respective tax assessors. CITY OF GEORGETOWN, TEXAS PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR & NINE YEARS AGO PERCENTAGE PERCENTAGE OF TOTAL OF TOTAL TYPE OF ASSESSED ASSESSED ASSESSED ASSESSED TAXPAYER BUSINESS VALUE RANK VALUE(1) VALUE RANK VALUE(1) SPG Wolf Ranch LP Development $ 62,498,544 1 1.75% St. David's Healthcare Partnership Hospital 37,634,524 2 1.05% Del Webb Texas Ltd Development 31,459,133 3 0.88% $ 27,438,949 1 2.29% Stonehill Waters Edge Ltd Apartments 24,942,050 4 0.70% Wal-Mart Real Estate Retailer 16,500,311 5 0.46% Hewlett Holdings Ltd Automobile dealer 13,759,757 6 0.39% H. E. Butt Grocery Company Grocer 13,200,000 7 0.37%6,364,988 5 0.53% Republic Square K/C Ltd Development 12,177,143 8 0.34% Inland Western Georgetown Rivery Development 11,771,240 9 0.33% Target Corporation Retailer 11,648,560 10 0.33% General Telephone Utility 9,982,434 2 0.83% Oaks at Georgetown LP Apartments 9,002,948 3 0.75% Commonwealth Land & Title Co Development 6,393,211 4 0.53% Inck Apartments LP Retailer 4,784,800 6 0.40% SCG Partners Ltd Development 4,687,571 7 0.39% Albertsons Apartments 4,350,299 8 0.36% David Starr Apartments 4,250,595 9 0.35% Bridge-Georgetown Park Ltd Development 4,176,000 10 0.35% Total $ 235,591,262 6.60% $ 81,431,795 6.79% (1) The total assessed valuation for the fiscal year ended September 30, 2008 was certified at $3,569,284,321. Sources: City Tax Assessor/Collector. * Per certified roll. Does not include some major property owners whose property is under protest as of date of certification. 19992008 CITY OF GEORGETOWN, TEXAS TAXABLE SALES BY CATEGORY LAST TEN FISCAL YEARS NAICS Sectors 2008 2007 2006 2005 Mining, quarrying, oil & gas extraction 302,512$ 9,526,650$ Utilities 16,575,671 13,957,517$ 13,957,517 12,511,431$ Construction 7,909,000 8,867,280 10,399,944 14,938,206 Manufacturing 9,491,959 8,753,965 3,726,375 5,892,050 Wholesale trade 16,376,383 23,466,004 19,296,699 17,363,298 Retail trade 386,206,645 367,659,270 343,177,903 227,220,375 Transportation, warehousing 1,631,361 1,926,996 1,471,067 1,075,717 Information 26,677,568 24,852,272 22,801,763 18,039,429 Finance, insurance 353,585 358,689 382,058 245,406 Real estate, rental, leasing 3,870,068 4,186,642 6,328,408 4,137,449 Professional, scientific, technical svcs 6,770,808 6,124,376 6,255,576 5,304,715 Management of companies, enterprises 64,799 Admin, support, waste mgmt, remediation svc 3,585,104 3,155,585 3,939,792 3,766,944 Educational svcs 41,141 28,053 18,923 24,679 Healthcare, social assistance 208,144 167,879 162,081 156,629 Arts, entertainment, recreation 9,670,761 7,972,749 4,742,112 4,292,148 Accommodation, food services 73,832,592 66,063,700 56,700,789 47,515,213 Other svcs (except public administration) 13,907,863 13,796,541 12,145,585 11,873,575 Public administration 1,403 10,102,695 Other 647 11,700 18,391 Total 577,412,568$ 551,338,165$ 515,044,942$ 384,543,149$ SIC Codes 2005 2007 2006 2005 Agriculture, forestry, fishing Construction Manufacturing Transportation, communications, utilities Wholesale trade Retail trade Finance, insurance, real estate Services Public administration Other Total City direct sales tax rate 2.00%2.00%2.00%1.75% Source: Window on State Government - Susan Combs, Texas Comptroller of Public Accounts website. Amounts subject to sales tax have been restated by the state since the 2007 CAFR release. Notes: All reporting is now by North American Industry Classification System (NAICS) sector. Standard Industrial Classification (SIC) Codes are no longer being assigned to taxpayers. 2004 2003 2002 2001 2000 1999 7,941,520$ 6,029,954$ 8,308,033$ 5,124,040 4,669,755 5,125,749 14,274,570 16,190,503 38,535,197 198,330,935 193,285,682 157,168,007 678,344 783,305 984,293 16,454,334 15,060,779 13,214,897 28,302 3,449 2,940,680 4,777,489 6,543,900 5,410,006 4,990,963 4,455,827 3,632,634 3,684,132 4,105,120 18,657 151,172 162,861 153,513 3,983,432 3,693,671 3,503,705 42,346,791 37,004,699 35,683,167 10,986,389 10,676,164 9,710,425 8,340,851 7,696,163 6,738,964 420,399 1,028,154 3,209,388 321,063,056$ 309,737,723$ 297,440,187$ 2004 2003 2002 2001 2000 1999 1,136,583$ 659,105$ 935,211$ 8,121,175 10,964,602 6,603,008 7,442,465 7,199,965 6,646,803 11,696,473 9,906,842 9,927,907 15,403,048 12,477,416 12,020,426 209,521,177 206,468,551 186,066,531 413,182 29,036,528 26,438,953 23,370,272 6,725,228 4,642,274 289,495,859$ 278,757,708$ 245,570,158$ 1.75%1.75%1.50%1.00%1.00%1.00% CITY OF GEORGETOWN, TEXAS DIRECT AND OVERLAPPING SALES TAX RATES LAST TEN FISCAL YEARS CITY FISCAL DIRECT STATE OF YEAR RATE TEXAS 1999 1% 6.25% 2000 1% 6.25% 2001 1% 6.25% 2002 1.5% 6.25% 2003 1.75% 6.25% 2004 1.75% 6.25% 2005 1.75% 6.25% 2006 2% 6.25% 2007 2% 6.25% 2008 2% 6.25% Source: Information furnished by City of Georgetown. CITY OF GEORGETOWN, TEXAS SALES TAX REVENUE PAYERS BY INDUSTRY FISCAL YEARS 2008 AND 1999 Number Percent Tax Percent NAICS Sectors of Filers of Total Liability of Total Mining, quarrying, oil & gas extraction 3 0.16% 6,050$ 0.05% Utilities 7 0.37% 331,513 2.87% Construction 121 6.37% 158,180 1.37% Manufacturing 132 6.95% 189,839 1.64% Wholesale trade 103 5.42% 327,528 2.84% Retail trade 750 39.49% 7,724,133 66.89% Transportation, warehousing 24 1.26% 32,627 0.28% Information 30 1.58% 533,551 4.62% Finance, insurance 12 0.63% 7,072 0.06% Real estate, rental, leasing 35 1.84% 77,401 0.67% Professional, scientific, technical svcs 180 9.48% 135,416 1.17% Management of companies, enterprises 1 0.05% - 0.00% Admin, support, waste mgmt, remediation svcs 109 5.74% 71,702 0.62% Educational svcs 10 0.53%823 0.01% Healthcare, social assistance 14 0.74%4,163 0.04% Arts, entertainment, recreation 43 2.26% 193,415 1.67% Accommodation, food services 131 6.90% 1,476,652 12.79% Other svcs (except public administration)157 8.27% 278,157 2.41% Public administration 5 0.26%28 0.00% Other 32 1.69%- 0.00% Totals 1,899 100.00% 11,548,251$ 100.00% Number Percent Tax Percent SIC Codes of Filers of Total Liability of Total Agriculture, forestry, fishing 36 2.58%9,352$ 0.38% Mining 1 0.07%- 0.00% Construction 85 6.09% 66,030 2.69% Manufacturing 71 5.09% 66,468 2.71% Transportation, communications, utilities 21 1.51% 99,279 4.04% Wholesale trade 54 3.87% 120,204 4.89% Retail trade 742 53.19% 1,860,665 75.77% Finance, insurance, real estate 3 0.22%- 0.00% Services 353 25.30% 233,703 9.52% Public administration 3 0.22%- 0.00% Nonclassifiable establishments 1 0.07%- 0.00% Other 25 1.79%- 0.00% Totals 1,395 100.00% 2,455,702$ 100.00% Source: Window on State Government. Notes: The City direct sales tax rate for 2008 and 1999 is 2% and 1%, respectively. Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. All reporting is now by North American Industry Classification System (NAICS) sectors. Standard Industrial Classification (SIC) Codes are no longer being assigned to taxpayers. 2008 1999 CITY OF GEORGETOWN, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Sales Tax Arbitrage Fiscal Obligation Revenue Compensated Capital Rebate Year Bonds Bonds Absences Leases Payable 1999 16,378,878$ 740,402$ 34,433$ 2000 16,948,092 775,779 89,235 2001 21,170,615 901,139 106,910 2002 20,065,626 999,881 67,774 2003 22,217,455 1,252,751 166,968$ 63,277 2004 33,194,673 1,329,545 368,787 17,663 2005 44,306,603 1,522,801 255,702 17,663 2006 54,429,567 1,767,492 142,633 14,650 2007 68,855,734 11,330,000$ 2,072,026 74,944 14,650 2008 69,970,050 11,115,000 2,393,867 12,831 14,650 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Governmental Activities General Total Revenue Compensated Obligation Primary Bonds Absences Bonds Government 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 51,070,000 555,387 4,539,267 138,512,008 57,280,000 574,234 4,984,950 146,345,582 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 GROSS LESS SELF TOTAL TAX FISCAL ASSESSED BONDED SUPPORTING SUPPORTED YEAR POPULATION VALUE (1) DEBT (2)DEBT (3)DEBT 1999 26,400 $ 1,199,831,232 21,545,000$ 5,166,122$ 16,378,878$ 2000 28,328 1,410,072,042 22,005,000 5,056,908 16,948,092 2001 30,000 1,629,344,909 26,110,000 4,939,385 21,170,615 2002 34,273 1,838,770,383 24,800,000 4,734,374 20,065,626 2003 35,300 2,116,042,131 26,731,486 7,639,031 19,092,455 2004 36,359 2,132,115,978 37,456,237 19,511,564 17,944,673 2005 38,265 2,260,988,333 48,815,988 20,675,096 28,140,892 2006 41,294 2,524,364,552 58,695,001 21,111,145 37,583,856 2007 44,324 2,886,637,358 73,395,001 25,608,155 47,786,846 2008 47,353 3,569,284,321 74,955,000 21,166,473 53,788,527 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, Stormwater Drainage and Georgetown Transportation Enhancement Corporation 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 NET RATIO OF GROSS LESS DEBT NET BONDED DEBT BONDED DEBT NET BONDED TOTAL BONDED SERVICE FUNDS BONDED TO ASSESSED TO ASSESSED DEBT PER DEBT PER AVAILABLE DEBT VALUE (4) VALUE (4) CAPITA (4) CAPITA (4) 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 18,428,811 0.87%1.23%522.06 738.47 768,436 17,176,237 0.81%1.72%472.41 1,009.04 508,151 27,632,741 1.22%2.14%722.14 1,262.45 878,668 36,705,188 1.45%2.29%888.87 1,400.11 1,329,213 46,457,633 1.61%2.50%1,048.14 1,625.89 1,224,087 52,564,440 1.47%2.07%1,110.06 1,557.05 CITY OF GEORGETOWN, TEXAS COMPUTATION OF DIRECT AND ESTIMATED OVERLAPPING BONDED DEBT SEPTEMBER 30, 2008 DEBT CITY'S SHARE (2) PER TAXING BODY AMOUNT AS OF PERCENT AMOUNT CAPITA (1) ESTIMATED OVERLAPPING DEBT: Georgetown I.S.D. $ 211,915,156 6-30-08 76.69% $ 162,507,180 $ 3,432 Williamson County 693,722,136 * 9-30-08 12.68% 87,983,609 1,858 Total estimated overlapping debt 905,637,292 27.66% 250,490,790 5,289 DIRECT DEBT - City of Georgetown 74,955,000 9-30-08 100.00% 74,955,000 1,583 DIRECT AND ESTIMATED OVERLAPPING DEBT $ 980,592,292 $ 325,445,790 $ 6,872 Source: Jurisdiction listed. (1) GISD population - 61,750 Williamson County population - 373,363 City of Georgetown population - 47,353 (2) Information represents the share of the respective debt which are obligations of the citizens of the City of Georgetown * Includes Williamson County and Avery Ranch CITY OF GEORGETOWN, TEXAS COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2008 2008 2007 2006 2005 Debt Limit 40,154,449$ 32,474,670$ 28,399,101$ 25,436,119$ Total net debt applicable to limit (1)7,614,171 5,278,417 4,916,116 4,645,554 Legal debt margin 32,540,278$ 27,196,253$ 23,482,985$ 20,790,565$ Total net debt applicable to limit as a percentage of debt limit 18.96% 16.25% 17.31%18.26% ASSESSED VALUATION 2008 3,569,284,321$ Allowable tax levy for annual debt service purpose: assuming 90% collection rate 40,154,449$ 2008 annual debt service requirements for general obligation debt: Principal $3,585,000 Interest and fiscal charges 4,029,171 7,614,171 Legal margin for annual debt service requirements 32,540,278$ 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 provisions 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 service requirements on all outstanding City tax bonds, including the issue to be approved, from a tax levy of $1.25 per $100 of valuation, based on 90% collection of tax. (1) The legal margin computation includes the general obligation debt that will be repaid by self-supporting sources such as the Airport, Stormwater Drainage and Georgetown Transportation Enhancement Corporation (GTEC) funds. 2004 2003 2002 2001 2000 1999 23,986,305$ 23,805,474$ 20,686,167$ 18,330,130$ 15,863,310$ 13,498,101$ 2,949,202 2,739,059 2,654,863 2,594,285 2,074,767 1,898,756 21,037,103$ 21,066,415$ 18,031,304$ 15,735,845$ 13,788,543$ 11,599,345$ 12.30% 11.51% 12.83% 14.15% 13.08% 14.07% , CITY OF GEORGETOWN, TEXAS REVENUE BOND COVERAGE UTILITY FUNDS (1) LAST TEN FISCAL YEARS OPERATING EXPENSES NET REVENUE FISCAL ELIGIBLE INTEREST (EXCLUDING AVAILABLE FOR YEAR REVENUES EARNINGS DEPRECIATION) DEBT SERVICE 1999 31,107,463$ 879,406$ 19,205,976$ 12,780,893$ 2000 36,216,903 995,272 21,872,920 15,339,255 2001 40,844,133 1,202,418 25,762,110 16,284,441 2002 41,550,381 610,791 26,227,232 15,933,940 2003 46,041,368 155,951 30,122,878 16,074,441 2004 47,346,431 423,987 33,420,226 14,350,192 2005 54,144,359 705,118 36,669,650 18,179,827 2006 66,723,744 1,600,113 46,356,026 21,967,831 2007 69,197,587 1,408,260 48,565,015 22,040,832 2008 78,404,586 955,680 57,922,907 21,437,359 Source: Finance and Administration Division. Notes: (1) Electric, Water and Wastewater only. DEBT SERVICE REQUIREMENTS INTEREST AND TIMES PRINCIPAL FISCAL CHARGES TOTAL COVERAGE 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 3,049,012 2,006,822 5,055,834 4.35 2,721,700 2,086,849 4,808,549 4.58 3,200,000 2,631,311 5,831,311 3.68 CITY OF GEORGETOWN, TEXAS UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS (2) 2008 2007 2006 2005 Revenues: Water System $ 21,424,897 $ 18,725,977 $ 19,709,559 $ 16,605,408 Electric System 51,833,477 42,805,466 41,338,196 33,800,761 Miscellaneous 5,146,212 7,666,144 5,675,987 3,738,190 Interest Earnings 955,680 1,408,260 1,600,113 705,118 Total revenues 79,360,266 70,605,847 68,323,855 54,849,477 Expenses: (1) Water System 6,249,197 3,166,679 3,192,839 2,947,875 Electric System 1,230,199 4,275,353 3,360,467 2,721,507 Utility Contracts 50,443,511 41,122,983 39,802,720 31,000,268 Total expenses 57,922,907 48,565,015 46,356,026 36,669,650 NET AVAILABLE FOR DEBT SERVICE $ 21,437,359 $ 22,040,832 $ 21,967,829 $ 18,179,827 1) Excludes depreciation costs 2) Electric, Water & Wastewater only Information provided to comply with continuing disclosure requirements of SEC Rule 15c2-12. Average Annual Principal and Interest Requirements, 2009-2028 $ 3,971,080 Coverage of Average Requirements by Fiscal Year 2008 Net Income 5.40 times Maximum Principal and Interest Requirements, 2009 $ 6,254,254 Coverage of Maximum Requirements by Fiscal Year 2008 Net Income 3.43 times FOR FISCAL YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000 1999 $ 15,082,426 $ 14,648,293 $ 13,635,949 $ 12,789,401 $ 12,390,817 $ 10,577,570 29,199,618 25,916,557 23,412,202 24,340,991 20,790,680 17,843,712 1,371,199 3,285,657 2,647,885 2,217,825 3,035,406 2,686,181 423,987 155,951 610,791 1,202,418 995,272 879,406 46,077,230 44,006,458 40,306,827 40,550,635 37,212,175 31,986,869 2,831,106 1,588,617 1,504,162 1,338,135 1,091,765 879,523 2,331,235 1,889,965 1,850,345 1,199,854 995,767 935,020 28,257,885 26,644,295 22,872,725 23,224,121 19,785,388 17,391,433 33,420,226 30,122,877 26,227,232 25,762,110 21,872,920 19,205,976 $ 12,657,004 $ 13,883,581 $ 14,079,595 $ 14,788,525 $ 15,339,255 $ 12,780,893 CITY OF GEORGETOWN, TEXAS CITY'S EQUITY IN UTILITY SYSTEM (1) 2008 2007 2006 2005 Utility system (1) $ 251,560,756 $ 215,276,162 $ 185,294,457 $ 163,596,097 Less: Accumulated depreciation (53,420,721) (51,053,351) (45,184,081) (40,012,018) Net value of system 198,140,035 164,222,811 140,110,376 123,584,079 Plus: Construction fund 5,280,337 5,820,263 9,470,135 5,521,737 Net plant 203,420,372 170,043,074 149,580,511 129,105,816 Plus: Working capital 29,899,639 28,736,708 30,833,629 22,950,794 Total 233,320,011 198,779,782 180,414,140 152,056,610 Revenue bond debt (2) 57,280,000 51,070,000 45,885,000 40,064,012 CITY'S EQUITY IN SYSTEM $ 176,040,011 $ 147,709,782 $ 134,529,140 $ 111,992,598 PERCENTAGE CITY'S EQUITY IN SYSTEM 75.45% 74.31% 74.57% 73.65% (1) Electric, Water and Wastewater Funds only (2) Changes in bond ordinances no longer require reservation of interest and sinking or reserve funds for utility revenue debt. Information provided to comply with continuing disclosure requirements of SEC Rule 15c2-12. FOR FISCAL YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000 1999 $ 149,400,672 $ 125,750,396 $ 104,850,674 $ 88,470,161 $ 78,050,279 $ 70,807,624 (35,295,782) (31,675,236) (23,780,397) (21,203,791) (19,223,681) (17,249,590) 114,104,890 94,075,160 81,070,277 67,266,370 58,826,598 53,558,034 4,985,311 11,384,576 3,970,852 3,249,523 4,660,467 4,853,440 119,090,201 105,459,736 85,041,129 70,515,893 63,487,065 58,411,474 17,695,702 13,101,178 16,757,986 22,060,143 18,008,284 14,246,430 136,785,903 118,560,914 101,799,115 92,576,036 81,495,349 72,657,904 38,903,764 34,498,514 30,005,000 32,075,000 32,090,000 28,850,000 $ 97,882,139 $ 84,062,400 $ 71,794,115 $ 60,501,036 $ 49,405,349 $ 43,807,904 71.56% 70.90% 70.53% 65.35% 60.62% 60.29% CITY OF GEORGETOWN, TEXAS DEMOGRAPHIC & ECONOMIC STATISTICS LAST TEN FISCAL YEARS Per Capita Fiscal Personal Personal School Unemployment Year Population Income income Enrollment Rate 1999 26,400 800,052,000$ 30,305$ 7,321 2.33% 2000 28,328 891,028,912 31,454 7,551 1.88% 2001 30,000 886,950,000 29,565 7,900 2.96% 2002 34,273 944,084,058 27,546 7,900 5.90% 2003 35,300 983,705,100 27,867 8,300 6.02% 2004 36,359 1,050,484,228 28,892 8,600 4.76% 2005 38,265 1,212,885,705 31,697 8,820 4.20% 2006 41,294 1,391,236,154 33,691 9,400 4.09% 2007 44,324 1,518,540,240 34,260 9,900 3.80% 2008 47,353 1,649,731,167 34,839 10,000 4.10% Sources: Population: City of Georgetown Planning and Development Division. Per Capital Personal Income: U.S. Dept. of Commerce / Bureau of Economic Development School Enrollment: Georgetown Independent School District. Unemployment Rate: Texas Workforce Commission, Labor Market Information TRACER. Notes: Per capita personal income and personal income is for Williamson County. Per capital personal income was computed using Census Bureau midyear population estimates. Estimates for 2000 -2006 reflect county population estimates available as of April 2008. 2007 and 2008 personal income and per capita personal income are calculated estimations. CITY OF GEORGETOWN, TEXAS PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Georgetown ISD 1,575 1 3.47% 1,000 2 3.88% Williamson County 1,550 2 3.41% 800 3 3.10% St Davids Hospital 600 3 1.32% 500 4 1.94% City of Georgetown 528 4 1.16% 289 6 1.12% Southwestern Univ 450 5 0.99% 430 5 1.67% Airborne, Inc. 300 6 0.66% 221 8 0.86% Sun City Texas 260 7 0.57% 1,500 1 5.82% Wal-Mart 240 8 0.53% 180 10 0.70% Wesleyan Homes 233 9 0.51% Texas Crushed Stone 225 10 0.50% HEB 275 7 1.07% Manitex 190 9 0.74% Totals 5,961 13.13% 5,385 20.88% Source: Finance and Administration Division. 2008 1999 CITY OF GEORGETOWN, TEXAS FULL TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2008 2007 2006 2005 2004 Function General Government Culture & Recreation Parks 22.5 20.5 21.5 18.5 18.5 Recreation 27.5 27.5 25.5 26.5 26.5 Rec. Programs 43333 Library 21.5 21.5 17.5 17.5 15.5 Development Administration 4.5 Dev. Process Team Planning 13 14 Current Planning 9 10 5 Long Range Planning 4 3 2 Inspection Svcs.13 12 11 11 11 Code Enforcement 6 6 5.5 5.5 5.5 Fire Services Administration 63333 Operations 66 61 56 51 46 Prevention & Comm. Analysis Gen. Govt. Gen. Govt.43333 City Council 23111 City Manager's Office 8 7.5 6.5 6.5 6.5 Legal Svcs Highways / Streets 15.75 14.75 14.75 14.75 Transportation Admin.3 Streets 15.75 Police Services Org. & Administration 88888 Support Svcs.36 26 31 31 32 Field Operations 60 56 47 41 35 Special Operations Information Mgmt. Professional Standards Animal Svcs.8 7.5 7.5 6.75 6.75 Municipal Court 77544 Fleet Mgmt.66554 Facilities Mgmt.75432 Information Svcs.10.5 10 10 9 8 Joint Svcs.58 55 53 51 50 Water 13 16 14 14 14 Sewer 12 13 12 12 9 Electric 42 39 30 25 25 Other Enterprises 12 12 11 11 11 Total 491.75 458.25 418.75 395.00 374.50 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. 2003 2002 2001 2000 1999 19.5 19.5 19.5 18 16.5 24 24 24.25 25 21.5 3 1.5 3.5 3.5 3.5 15.5 15.5 14.5 16 16.25 3 4.5 6 7 6.5 7 7.25 77 7 22 10 8 9 10 10 4 4444 46 43 43 34.5 33 5.5 5.5 6 4 4 3.5 2 2.5 2 11 5.5 5.5 6.5 6.75 5.25 55 11.75 11.75 12.75 12.75 12 3 3344 30 29 22 42 38 45 33 30 13 15 17 17 33 6.75 6.5 6.5 6 5.75 3 3 2.5 2.5 2 4.5 4.5 4.5 4 4 1 1111 8 8 8 7 6.25 46.75 42.75 39.25 38.75 36.75 13 17.25 15.25 15.25 14.75 10 6.25 6.25 7 7 22 22 19 17 16.25 11 11 9.75 11.75 10.75 362.25 347.00 338.00 336.25 320.25 CITY OF GEORGETOWN, TEXAS OPERATING INDICATORS BY FUNCTIONS LAST TEN FISCAL YEARS Function 2008 2007 2006 2005 Culture and recreation Recreation Center memberships 5,487 5,060 4,294 2,074 CVB number of visitor inquiries 45,044 36,086 37,062 40,117 Library Circulation 431,294 386,948 347,662 350,716 Number of patrons added 2,514 2,592 1,784 1,684 Economic Development Number of proposals generated 35 51 72 71 Community Development Inspections/Code Enforcement Number of inspections 33,198 43,006 47,197 39,677 New residential permits issued 768 902 1,316 930 New commercial permits issued/TFO/Industrial 77 114 152 132 Number of code enforcement violations 10,570 12,928 15,603 11,187 Planning and Development Services Development applications filed 344 348 397 280 Annexations (in acres)369 362 8,909 5,062 Fire Services Number of calls for service 5,321 4,766 4,257 3,957 General Govt Bond rating - S&P AA AA-AA-A+ City Manager's Office Number of public information requests processed 801 773 786 616 Highways and streets Center line miles 9 9 251 230 Police Services Number of calls for service 51,033 53,323 48,739 40,649 Number of traffic accidents 1,837 1,863 1,513 1,510 Animal Services Number of pets impounded 1,500 1,448 1,452 1,775 Number of adoptions 614 611 642 793 Municipal Court Number of court cases 13,275 14,787 13,824 11,279 Number of warrants served 748 557 398 712 Utility Office Number of utility customers 23,678 22,784 21,365 19,862 Water Number of new connects 10,980 1,213 1,281 670 Average daily water treated (million gallons)15.57 10.31 11.88 8.71 Average daily consumption (million gallons 13.35 8.21 10.30 10.09 Sewer Number of new connects 10,850 1,422 1,307 1,021 Average daily wastewater treated (million gallons)3.48 4.27 2.95 3.28 Electric kWhs consumed ########## 441,088,000 419,651,791 377,198,661 Number of new connects 999 1,093 1,134 817 AMR Total number of work orders completed 5,141 3,724 6,106 2,347 Total reads by AMR - - 34,781 31,373 Other Enterprises Stormwater & drainage Number of detention ponds cleaned 228 228 228 164 Number of work orders 617 728 705 - Airport Gallons of fuel sold 723,669 721,657 773,340 842,223 Sources: Various City departments and City-Monthly Activity Indicators Report. 2004 2003 2002 2001 2000 1999 1,538 1,589 1,592 2,127 1,976 1,963 41,426 33,063 15,179 21,190 - 13,000 330,171 318,820 326,282 330,503 276,000 240,319 1,533 1,611 1,781 1,730 1,989 1,836 59 20 14 6 - - 28,389 24,631 15,602 21,775 23,342 22,842 890 612 648 825 931 25 75 33 31 46 48 30 2,026 1,948 3,266 2,599 1,126 1,348 209 203 182 159 - - 443 700 101 253 121 58 3,402 3,335 3,374 3,277 3,194 2,439 A+A+A+A+A A 702 545 565 248 80 79 202 189 186 180 172 168 41,986 36,002 30,156 33,298 29,428 27,226 1,382 1,425 1,429 928 1,299 - 1,591 1,337 1,367 1,280 1,352 1,413 696 456 529 537 - - 11,018 9,417 5,767 6,054 5,854 4,742 819 489 366 92 - - 18,621 18,198 17,496 16,939 15,718 14,501 912 705 568 338 - - 7.97 8.21 9.00 - - - 7.97 7.46 8.30 7.53 7.43 6.27 922 685 453 224 - - 3.07 2.70 3.10 - - - 350,104,864 343,553,661 ########## ########## ########## ########## 473 861 1,265 230 - - 1,347 1,173 1,277 - - - 30,121 26,462 24,351 20,625 - - 113 100 45 54 15 14 116 741 1,605 1,635 - - 688,719 610,710 709,293 653,916 631,377 379,318 CITY OF GEORGETOWN, TEXAS SUMMARY OF INSURANCE COVERAGE POLICY TYPE INSURER AGENT POLICY NUMBER Airport Liability Texas Municipal Texas Municipal 2903 League League Automobile Liability Texas Municipal Texas Municipal 2903 League League Automobile Physical Damage Texas Municipal Texas Municipal 2903 League League Boiler & Machinery Texas Municipal Texas Municipal 2903 League League General Liability Texas Municipal Texas Municipal 2903 League League Law Enforcement Liability Texas Municipal Texas Municipal 2903 League League Mobile Equipment Texas Municipal Texas Municipal 2903 League League Public Employee Dishonesty Texas Municipal Texas Municipal 2903 Bond League League Public Officials Texas Municipal Texas Municipal 2903 League League Real/Personal Property Texas Municipal Texas Municipal 2903 League League Workers' Compensation Texas Municipal Texas Municipal 2903 League League Pollution Liability Amgrip Texas Municipal BTA2149987-05 League Animal Mortality/Theft Texas Municipal Texas Municipal 2903 League League Errors and Omissions Liability Texas Municipal Texas Municipal 2903 League League SEPTEMBER 30, 2008 COVERAGE POLICY PERIOD DESCRIPTION LIMIT PREMIUM October 1, 2007 to Airport, Aviation $ 20,000,000 occ 13,513$ September 30, 2008 Non-owned aircraft, 50,000 Fire (Hangarkeepers) Hangar 2,000,000 Aircraft Liability 5,000,000 occ October 1, 2007 to Damage caused by 5,000,000 occ 42,621 September 30, 2008 City Vehicles 25,000 person October 1, 2007 to Damage caused to ACV 53,735 September 30, 2008 City Vehicles October 1, 2007 to Library HVAC 2,000,000 accident Included September 30, 2008 Direct Damage October 1, 2007 to General Liability 10,000,000 agg annual 58,524 September 30, 2008 5,000,000 occ October 1, 2007 to Police Department 10,000,000 annual 35,607 September 30, 2008 5,000,000 occ October 1, 2007 to Damage to per schedule 11,170 September 30, 2008 Mobile Equipment 2,005,364 October 1, 2007 to Crime/Public Employee 1,000,000 3,182 September 30, 2008 Crime/Theft disappearance Destruction (inside/outside)300,000 1,116 October 1, 2007 to Mayor, Council, City Attorney 10,000,000 annual Included September 30, 2008 Boards, Commissions 5,000,000 occ and Employees October 1, 2007 to Real / Personal 140,053,459 176,795 September 30, 2008 Property per schedule October 1, 2007 to Losses as Prescribed per TWCC 95,567 September 30, 2008 by the Texas Workers'Statute Compensation Law October 1, 2007 to Pollution Liability 1,000,000 ann agg 2,250 September 30, 2008 Underground Storage Tanks 1,000,000 occ October 1, 2007 to Police Canine Loss of use/ per schedule 500 September 30, 2008 Theft mortality/Vet/Surgical 1 PD canines October 1, 2007 to Errors and Omissions 5,000,000 wrongful agg September 30, 2008 Includes Public Officials 10,000,000 annual 70,449 TOTAL 565,029$