HomeMy WebLinkAboutRes 2026-03-1905 Accepting the FY 2025 Financial AuditTurning visions into reality
Annual Comprehensive Financial Report
City of Anna, Texas
Fiscal year ended September 30, 2025
City of Anna, Texas
Table of Contents
September 30, 2025
Introductory Section
Letter of Transmittal ................................................................................................................................................i
GFOA Certificate of Achievement ...........................................................................................................................vi
Organizational Chart .............................................................................................................................................vii
Elected Officials and Management ........................................................................................................................viii
Financial Section
Independent Auditor’s Report ..................................................................................................................................1
Management's Discussion and Analysis...................................................................................................................5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position.................................................................................................................................16
Statement of Activities .....................................................................................................................................18
Fund Financial Statements
Balance Sheet - Governmental Funds ...............................................................................................................21
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ..................................23
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ............................24
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities........................................................................................26
Proprietary Fund Financial Statements
Statement of Net Position.................................................................................................................................28
Statement of Revenues, Expenses, and Changes in Net Position .......................................................................29
Statement of Cash Flows .................................................................................................................................30
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position ..................................................................................................................33
Statement of Changes in Fiduciary Net Position.................................................................................................34
Notes to the Financial Statements......................................................................................................................36
City of Anna, Texas
Table of Contents
September 30, 2025
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual - General Fund . .76
Schedule of Changes in the Net Pension Liability and Related Ratios - TMRS . . . . . . . . . . . 77
Schedule of Employer Contributions to Pension Plan - TMRS . . . . . . . . . . . . . . . . 78
Schedule of Changes in Total OPEB Liability and Related Ratios - TMRS . . . . . . . . . . . . 79
Schedule of OPEB Contributions - TMRS . . . . . . . . . . . . . . . . . . . . . . 80
Combining and Individual Fund Financial Statements and Schedules
Special Revenue Funds Descriptions . . . . . . . . . . . . . . . . . . . . . . . . 82
Combining Balance Sheet - Nonmajor Governmental Funds. . . . . . . . . . . . . . . . . 83
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor
Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Balance Sheet - CDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Reconciliation of the Balance Sheet to the Statement of Net Position - CDC . . . . . . . . . . . . 90
Statement of Revenues, Expenditures, and Changes in Fund Balance - CDC . . . . . . . . . . .91
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement
of Activities - CDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Balance Sheet - EDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
Reconciliation of the Balance Sheet to the Statement of Net Position - EDC . . . . . . . . . . . .94
Statement of Revenues, Expenditures, and Changes in Fund Balances - EDC . . . . . . . . . . .95
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement
of Activities - EDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Statement of Net Position - HFC . . . . . . . . . . . . . . . . . . . . . . . . .97
Statement of Revenues, Expenses, and Changes in Net Position - HFC . . . . . . . . . . . . .98
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget & Actual - CDC . . . . .99
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget & Actual - EDC . . . . .100
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget & Actual - Debt Service Fund. 101
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget & Actual - Grant Fund . . .102
City of Anna, Texas
Table of Contents
September 30, 2025
Statistical Section (Unaudited)
Financial Trends
1 - Net Position by Component .........................105
2 - Changes in Net Position ..........................106
3 - Fund Balances, Governmental Funds ......................108
4 - Changes in Fund Balances of Governmental Funds .................109
Revenue Capacity
5 - Assessed Value and Estimated Value of Taxable Property ...............111
6 - Direct and Overlapping Property Tax Rates ....................112
7 - Principal Property Taxpayers.........................113
8 - Property Tax Levies and Collections ......................114
Debt Capacity
9 - Ratios of Outstanding Debt by Type ......................116
10 - Ratio of General Bonded Debt Outstanding ....................117
11 - Direct and Overlapping Governmental Activities Debt .................118
12 - Pledged-Revenue Coverage .........................119
Demographic and Economic Information
13 - Demographic and Economic Statistics ......................121
14- Principal Employers ............................122
Operating Information
15- Full-Time Equivalent City Government Employees by Function/Program ...........124
16- Operating Indicators by Function/Program .....................125
17- Capital Assets Statistics by Function/Program ...................126
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Introductory Section
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March 23, 2026
To the Honorable Mayor and City Council, City Manager, Neighbors of the City of Anna:
I am pleased to submit the Annual Comprehensive Financial Report of the City of Anna, Texas for
the fiscal year ended September 30, 2025. The purpose of the report is to provide the City
Council, management, staff, the public, and other interested parties with detailed information
reflecting the City's financial condition.
This report satisfies §103.001 of the Texas Local Government Code requiring annual audits of
all municipalities and was conducted in accordance with Section 7.18 of the Charter of the City
of Anna. State law requires that all general-purpose local governments publish within six months
of the close of each fiscal year a complete set of financial statements presented in conformity with
the generally accepted accounting principles (GAAP) and audited in accordance with generally
accepted audited standards by an independent firm of licensed public accountants. This report is
published to fulfill those requirements for the fiscal year ended September 30, 2025.
Responsibility for the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed
data is accurate in all material respects and is reported in a manner designed to present fairly the
financial position and results of operations of the various funds of the City. Because the cost of
internal controls should not outweigh their benefits, the City of Anna’s comprehensive framework
of internal controls has been designed to provide reasonable, rather than absolute assurance, that
the financial statements will be free from material misstatement.
The Annual Comprehensive Financial Report (ACFR) is organized into three major sections:
Introductory, Financial, and Statistical. The Introductory Section provides general information on
the government’s structure and personnel as well as information useful in assessing the
government’s financial condition.
The Financial Section contains the opinion of the City's independent auditor. The City of
Anna’s financial statements have been audited by Forvis Mazars, LLP, a firm of licensed certified
public accountants. 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, 2025, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall financial
120 W. 7th St.,
Anna, TX 75409
Phone: 972 ‐924 ‐3325 www.annatexas.gov
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statement presentation. The independent auditor’s report is presented as the first component of the
financial section of this report.
Also included in the Financial Section is management’s discussion and analysis (MD&A)
providing users of the basic financial statements a narrative introduction, overview, and analysis
of those statements. Management’s discussion and analysis (MD&A) immediately follows the
independent auditor’s report. This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it.
The basic financial statements, including the accompanying notes, represent the core of the
financial section. These financial statements present the financial condition of the City of Anna
as a single entity, as well as the individual funds that account for the City’s various governmental
and business-type activities.
Profile of the Government
The City of Anna, incorporated in 1913, is located in north central Collin County on U.S. 75, State
Highway 5, and State Highway 121, about 40 miles north of Dallas, and is one of the fastest
growing cities in the Dallas/Fort Worth Metroplex. The city currently occupies a land area of
approximately 15.9 square miles and services approximately 34,100 residents. The City of Anna
is empowered to levy a property tax on both real and personal properties located within its
boundaries. It also is empowered by state statue to extend its corporate limits by annexation,
which occurs periodically when deemed appropriate by the governing body.
The City of Anna operates under a home rule charter adopted in 2005, with a Council-Manager form
of government. Policy-making and legislative authority are vested in the City Council consisting of
the Mayor and six Council members. The City Council is responsible for, among other things,
passing ordinances, resolutions, and regulations governing the City as well as adopting the budget
which serves as the foundation for financial planning and control. The City Council appoints the City
Manager, who has full responsibility for carrying out the policies and ordinances of the City Council,
for overseeing the day-to-day operations of the government and appointing the heads of the various
departments. The City Council also appoints the City Attorney, City Secretary, and Municipal Court
Judges. The Council is elected on a non-partisan basis. A charter amendment was approved by
voters in November 2025. Beginning with the May 2026 election, Council members will serve four-
year staggered terms.
The City of Anna provides a full range of services, including police and fire protection; municipal
court; parks and recreation; water and sewer services; and the construction and maintenance of
streets and other infrastructure. In addition, the City of Anna is also financially accountable for a
legally separate economic development corporation, community development corporation, and
housing finance corporation which are reported separately within the City of Anna’s financial
statements. Additional information on these legally separate entities can be found in the Notes to
the Financial Statements. For the fiscal year ended September 30, 2025, the city had 203 budgeted
full-time equivalent positions.
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Financial Information
City Management is responsible for establishing and maintaining an internal control structure.
This structure is designed to provide reasonable, but not absolute, assurance that: (1) City
assets are protected from loss, theft or misuse; and (2) City financial records and data are
accurate and reliable. The concept of reasonable assurance recognizes that the cost of a control
should not exceed the benefits likely to be derived from it, and that the evaluation of cost and
benefits requires estimates and judgments by management.
The City's accounting records for all governmental funds are maintained on the modified accrual
basis of accounting. This method recognizes revenue when it is measurable and available and
expenditures when goods or services are received. All proprietary funds are accounted for using
the accrual basis of accounting; revenue is recognized when it is earned, and expenses are
recognized when they are incurred.
City Council is required to adopt an annual operating budget for the ensuing fiscal year. The
annual budget serves as the foundation for the City of Anna’s financial planning and control. All
departments of the City of Anna are required to submit a budget that maintains current service
levels and new requests separately to the City Manager. The City Manager and Budget Manager
then use these requests as the starting point for developing a proposed budget. In accordance
with Section 7.03 of the City Charter, the City Manager and Budget Manager then present a
proposed budget to the Council for review no later than August 15. In August and September,
the City Council discusses the budget at Council work sessions and meetings. Public hearings
will be held on the budget and tax rate where citizens can express their views on particular
budget items. These hearings typically occur in early September. The tax rate ordinance and
budget ordinance are voted upon at the first regular City Council meeting in September.
The appropriated budget is prepared by fund and department (e.g., police). Transfers between
funds must be accomplished by budget amendment approved by the City Council. Budget
amendments calling for new fund appropriations must also be approved by the City Council.
Expenditures within each fund will remain within each department's original appropriation unless
a budget adjustment is approved by the City Manager. Transfers between expenditure accounts
in one department may occur with the approval of the Budget Manager. Transfers between
operating departments may occur with the approval of the City Manager.
Budget-to-actual comparisons are provided in this report for each individual governmental fund
for which an appropriated annual budget has been adopted. For the General Fund, this
comparison is presented as part of the required supplementary information. For other
governmental funds with appropriated annual budgets, this comparison is presented in the
governmental funds subsection of the report.
Local Economy
The City of Anna’s economic outlook remains strong. This is demonstrated with local economic
indicators such as significant increases in taxable appraisal values and continued sales tax
growth. Both residential and commercial growth remains strong in the City of Anna. In FY2025,
the city issued 765 single family building permits and 12 commercial building permits.
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The City of Anna’s economic outlook continues to improve due to overall improvement in the
economy and continued residential and commercial growth. This growth is evidenced by local
economic indicators such as continued increase in property appraisal values, the increase in
residential building permits, and continued sales tax growth.
The Anna Community Development Corporation and the Anna Economic Development
Corporation actively recruit new commercial enterprises that help diversify the City of Anna’s tax
base and provide job opportunities for Anna neighbors. New residential developments will
continue to drive more density that will lead to additional retailers, restaurants, medical, and
other commercial projects. 2026 will bring an increased focus on Downtown Anna.
Major Initiatives and Long-Term Financial Planning
As Anna continues to grow rapidly, we remain focused on balancing the demands of expansion
with the need for sustainable infrastructure, quality services, and a talented workforce. Users of
this document, as well as others interested in the programs and services offered by the City of
Anna, are encouraged to read the City’s 2025-26 Annual Budget. The document details the
City’s long-term goals and financial policies, describes program accomplishments and initiatives,
and outlines the City’s capital improvement program.
The City’s Annual Budget also includes long-term financial plans for the major operating funds
that forecast revenues and expenditures over a five-year horizon. The plans are driven by
financial policies adopted by the City Council that are designed to protect the City’s financial
integrity. The policies include establishing significant fund balances, or reserves, to protect the
City from the boom-and-bust economic cycle common to the state and the region.
The first Anna Community Library opened November of 2025 along with the Municipal Complex
Plaza. Both projects were funded in the 2021 Bond Election. The new state-of-the-art 32,500
square foot facility is thoughtfully designed to underscore the City of Anna’s commitment to
fostering a space where neighbors can meet, explore ideas, and building lasting relationships.
This new facility will serve as a cornerstone of community life in Anna.
The FY2026 Capital Improvement Program (CIP) totals $109.7 million and includes several
transformative projects including construction of a new police station, development of two new
parks, respectively named Bryant Park and Finley Park, and the continuing expansion of the
Hurricane Creek Wastewater Treatment Plant.
Overall, the City of Anna’s Capital Improvement Program (CIP) is a comprehensive multi-year
road map for the planning, development, and construction of important assets for the betterment
of the community. Additional information related to capital improvement program and funding for
those improvements, can be found in the City of Anna’s annual budget book.
Acknowledgments
The presentation of this report could not have been accomplished without the expertise,
commitment, and tenacity of the entire staff of the Finance Department. We would like to thank
all the departments for their assistance in providing the information necessary to prepare this
report. We would also like to thank the Mayor and the City Council for their continued interest
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Anna
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2024
Executive Director/CEO
vi
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CITY OF ANNA
ORGANIZATION CHART
Mayor & City
Council
City Attorney
Municipal Judge
City Manager
City Manager's
Office
(7.0 FTEs)
Information
Technology
(3.0 FTEs)
Economic
Development
(3.0 FTEs)
Human Resources
(3.0 FTEs)
Police
(43.0 FTEs)
Financial Services
(11.5 FTEs)
Public Works &
Engineering
(46.0 FTEs)
Neighborhood
Services
(6.0 FTEs)
Development
Services
(11.0 FTEs)
Fire Rescue
(45.0 FTEs)
Community
Services
(21.5 FTEs)
City Secretary
Deputy City
Secretary
Boards &
Commissions
City of Anna, Texas
City Officials Organization Chart
vii
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Acting City Manager City Attorney
Stan Carver II
Place 3
Mann Sin h
Place 6
Marc Marchand Clark McCo
Jeffre Freeth
Acting Director of Community Services
Terri Dob , CPFO CGFO
Director of Finance
Fire Chief
Ra Isom
Director of Development Services
Kaleb Kentner
CITY OF ANNA
DIRECTORY OF CITY OFFICIALS
Carrie Land, TRMC, MMC
City Secretary
Joseph Cotton
Director of Public Works
Dean Habel
Police Chief
Natasha Roach
Interim Director of Economic
Development
Stephanie Beitelschies
Director of Human Resources
Kevin Martin
Director of Neighborhood Services
Director of Information Technology
Pete Cain
Mayor
Kevin Toten Kell Patterson-Herndon
Place 1 Place 4
Nathan Br an
Place 2
Elden Baker
Place 5
Chris Talbot
viii
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Financial Section
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Independent Auditor's Report
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Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited
Independent Auditor’s Report
The Honorable Mayor and Members of City Council
City of Anna, Texas
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component units, each major fund, and the aggregate remaining fund information of
the City of Anna, Texas (City), as of and for the year ended September 30, 2025, and the related notes to
the financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, the
discretely presented component units, each major fund, and the aggregate remaining fund information of
the City as of September 30, 2025, and the respective changes in financial position, and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for 12 months beyond the financial statement date, including any currently known information
that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and,
therefore, is not a guarantee that an audit conducted in accordance with GAAS will always detect a material
The Honorable Mayor and Members of City Council
City of Anna, Texas
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misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, budgetary comparison, pension information, and other postemployment benefit
information be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
GAAS, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining and individual fund financial statements and
schedules are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with GAAS. In our
opinion, the combining and individual fund financial statements and schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The Honorable Mayor and Members of City Council
City of Anna, Texas
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Other Information
Management is responsible for the other information included in the annual comprehensive financial report.
The other information comprises the introductory and statistical sections but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Dallas, Texas
March 23, 2026
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Management's Discussion and Analysis
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City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
5
As management of the City of Anna, Texas (the “City”), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2025.
We encourage readers to consider the information presented here in conjunction with additional information
contained in this report.
Financial Highlights
•The City's total combined net position was $447,276,826 at September 30, 2025. Of this, $49,223,970
(unrestricted net position) may be used to meet the City’s ongoing obligations to its citizens and creditors.
•The City had an overall increase in net position of $66,898,980. The increase is primarily a result of an
increase of property taxes of $2,798,042 and sales tax of $1,250,432. Additionally, the City continued to
receive capital contributions from developers amounting to $56,679,409 in the current year.
•The City's total liabilities increased by $91,506,273. The increase in liabilities is primarily a result of the
issuance of certificates of obligation totaling $82,275,000.
•At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of
$97,157,231, an increase of $8,211,434. This increase is largely due to the bond proceeds of the
certificates of obligation totaling $29,575,000.
•As of the end of the year, the unassigned fund balance of the General Fund was $14,692,970 or 51% of
total General Fund expenditures.
Overview of the Financial Statements
The discussion and analysis provided here is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements consist of three components:
1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements.
This report also includes supplementary information intended to furnish additional detail to support the basic
financial statements themselves.
Government-Wide Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources,
deferred inflows of resources, liabilities, and net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Other non-
financial factors, such as the City’s property tax base and the condition of the City’s infrastructure, need to be
considered in order to assess the overall health of the City.
The statement of activities presents information showing how the City’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused vacation leave).
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
6
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover
all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the City include general government, public safety, public works, culture and recreation,
and community services. The business-type activities of the City include water, sewer, and sanitation operations.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be
divided into three categories: governmental funds, proprietary funds, and a fiduciary fund.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in
the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well
as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
assessing a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance
sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains nineteen individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and
changes in fund balances for the General Fund, Capital Projects Fund, Debt Service Fund, and PID Capital
Projects Fund, which are all considered to be major funds. Data from the other governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in a separate section of the report.
The City adopts an annual appropriated budget for its General Fund and Debt Service Fund. There were no
budget amendments for either fund during the year.
Proprietary Funds
The City’s proprietary funds are enterprise funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds
to account for its water, sewer, storm water, solid waste collection services, wastewater treatment operations, and
Public Facility Corporation. All activities associated with providing water, sewer, storm water, solid waste collection
services, and wastewater treatment services are accounted for in the Utility Fund, including administration,
operation, maintenance, debt service, capital improvements, meter maintenance, billing and collection. The City's
intent is that the costs of providing the services to the general public on a continuing basis is financed through
charges in a manner similar to a private enterprise.
Proprietary financial statements provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for the
Utility Fund, which is considered a major fund of the City, and the Public Facility Corporation.
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
7
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are not reflected in the government-wide financial statements because the resources of those funds are not
available to support the City’s own programs. The accounting used for fiduciary funds is like that used for
proprietary funds. The City has one fiduciary fund, the PID Custodial Fund.
Component Units
The City maintains the accounting and financial statements for its component units. The Anna Community
Development Corporation, Anna Economic Development Corporation and Anna Housing Finance Corporation are
discretely presented component units. The Anna Public Facility Corporation is a blended component unit.
Notes to Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data provided in
the government-wide and fund financial statements.
Other Information
In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents certain
Required Supplementary Information (RSI). The required RSI includes a budgetary comparison schedule for the
General Fund, schedule of changes in the net pension liability and related ratios, schedule of employer
contributions for the Texas Municipal Retirement System (TMRS), schedule of changes in the Total OPEB liability
and related ratios, and schedule of OPEB contributions for TMRS. RSI can be found after the basic financial
statements.
Government-Wide Financial Analysis
As noted previously, net position may serve over time as a useful indicator of the City’s financial position. For the
City of Anna, net position was $447,276,826 as of September 30, 2025, in the primary government.
The largest portion of the City’s net position, $349,803,823, reflects its investments in capital assets (e.g., land,
park improvements, buildings, furniture and fixtures, streets, drainage, machinery and equipment, lease assets,
subscription assets, etc.), less any debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the assets themselves cannot be
used to liquidate these liabilities.
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
8
The following reflects the Condensed Statement of Net Position:
Condensed Statement of Net Position
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Assets
Cash and investments $ 101,703,698 $ 30,687,770 $ 118,554,860 $ 13,127,021 $ 220,258,558 $ 43,814,791
Receivables and other assets 2,144,710 68,317,917 5,344,475 94,356,318 7,489,185 162,674,235
Capital assets 252,458,263 207,295,349 275,384,380 183,134,957 527,842,643 390,430,306
Total Assets 356,306,671 306,301,036 399,283,715 290,618,296 755,590,386 596,919,332
Deferred Outflows of Resources
Deferred outflows 2,038,096 2,050,835 436,262 445,780 2,474,358 2,496,615
Total Deferred Outlows of Resources 2,038,096 2,050,835 436,262 445,780 2,474,358 2,496,615
Liabilities
Current and other liabilities 7,898,043 10,742,460 19,482,460 8,618,389 27,380,503 19,360,849
Long-term liabilities 136,916,181 106,976,331 144,169,081 90,622,307 281,085,262 197,598,638
Total Liabilities 144,814,224 117,718,791 163,651,541 99,240,696 308,465,765 216,959,487
Deferred Inflows of Resources
Deferred inflows 685,572 477,729 1,636,581 1,600,886 2,322,153 2,078,615
Total Deferred Inflows of Resources 685,572 477,729 1,636,581 1,600,886 2,322,153 2,078,615
Net Position
Net investment in capital assets 174,798,727 164,115,311 175,005,096 150,095,510 349,803,823 314,210,821
Restricted 25,077,858 6,326,639 23,171,175 25,893,045 48,249,033 32,219,684
Unrestricted 12,968,386 19,713,402 36,255,584 14,233,939 49,223,970 33,947,341
Total Net Position $ 212,844,971 $ 190,155,352 $ 234,431,855 $ 190,222,494 $ 447,276,826 $ 380,377,846
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
9
The following table provides a summary of the City’s changes in net position:
Condensed Statement of Activities
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Revenues
Program revenues
Charges for services $ 12,370,991 $ 16,692,173 $ 42,691,938 $ 41,482,710 $ 55,062,929 $ 58,174,883
Operating grants and contributions 298,195 186,855 797,402 - 1,095,597 186,855
Capital grants and contributions 22,934,971 55,832,509 33,744,438 28,909,202 56,679,409 84,741,711
General revenues
Property taxes 19,461,308 16,663,266 - - 19,461,308 16,663,266
Sales taxes 6,632,670 5,382,238 - - 6,632,670 5,382,238
Franchise and local taxes 1,537,055 1,315,462 - - 1,537,055 1,315,462
Grants not restricted to specific programs - 3,373,552 - - - 3,373,552
Unrestricted investment earnings 3,963,511 5,470,612 4,953,020 5,017,120 8,916,531 10,487,732
Gain on sale of assets 176,294 72,730 8,501 - 184,795 72,730
Miscellaneous revenue 2,346,832 2,854,738 1,231,563 1,145,998 3,578,395 4,000,736
Total Revenues 69,721,827 107,844,135 83,426,862 76,555,030 153,148,689 184,399,165
Expenses
General government 7,794,867 7,229,346 - - 7,794,867 7,229,346
Culture and recreation 5,107,609 3,396,741 - - 5,107,609 3,396,741
Community services 1,369,545 1,019,920 - - 1,369,545 1,019,920
Public safety 15,540,437 13,092,102 - - 15,540,437 13,092,102
Public works 9,885,719 7,968,688 - - 9,885,719 7,968,688
Interest expense 5,897,518 5,966,633 - - 5,897,518 5,966,633
Water and sewer - - 40,639,264 30,640,255 40,639,264 30,640,255
Public Facility Corporation - - 14,750 14,150 14,750 14,150
Total Expenses 45,595,695 38,673,430 40,654,014 30,654,405 86,249,709 69,327,835
Excess (Deficiency) Before Transfers 24,126,132 69,170,705 42,772,848 45,900,625 66,898,980 115,071,330
Transfers (1,436,513)(20,573,336) 1,436,513 20,573,336 - -
Changes in Net Position 22,689,619 48,597,369 44,209,361 66,473,961 66,898,980 115,071,330
Net Position - Beginning 190,155,352 141,557,983 190,222,494 123,748,533 380,377,846 265,306,516
Net Position - Ending $ 212,844,971 $ 190,155,352 $ 234,431,855 $ 190,222,494 $ 447,276,826 $ 380,377,846
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
10
Graphic presentations of selected data from the summary tables are displayed below to assist in the analysis of
the City’s activities.
For the year ended September 30, 2025, revenues from governmental activities totaled $69,721,827. Capital
grants and contributions, property taxes, and charges for services are the City’s largest revenue sources. Capital
grants and contributions decreased by $32,897,538 or 58.9% when compared to prior year mainly due to a
decrease in contributed capital related to a slow down in developer-initiated infrastructure improvements. This is a
result of an increase in negative economic conditions, including rising prices, interest rates, and overall inflation.
Property taxes increased by $2,798,042 or 16.8% due to an increase in overall assessed property values. Charges
for services decreased by $4,321,182 or 25.9% mainly due to a decrease in park development fee activity, water
impact fees, and wastewater impact fees. The following graph shows the governmental function expenses of the
City:
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
11
For the year ended September 30, 2025, expenses for governmental activities totaled $45,595,695. This
represents an increase of $6,922,265 or 17.9% from the prior year. The City’s largest increases were in public
safety of $2,448,335 or 18.7%, due to increases in full time employees for the fire department to staff and operate
Fire Station No. 2, as well as adding additional officers for police.
Business-type activities are shown comparing operating costs to revenues generated by related services.
Business-Type Activities - Revenues and Expenses
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
12
For the year ended September 30, 2025, charges for services by business-type activities totaled $42,691,938.
This is an increase of $1,209,228 or 2.9% from the previous year. This increase in revenues is related to an
increase of new customers due to population growth within the City. Expenses totaled $40,654,014, which was an
increase of $9,999,609, or 32.6% due to an increase in contracted services for various projects performed by the
proprietary funds, as well increased developer incentive payments.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance- related legal
requirements.
Governmental Funds - The focus of the City’s governmental funds is to provide information of near-term inflows,
outflows and balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s net resources
available for spending at the end of the year.
As of September 30, 2025, the General Fund reflected a total fund balance of $14,888,965. Of this, $14,627 is
considered restricted for parks and $181,368 is nonspendable prepaids. Unassigned fund balance totaled
$14,692,970 as of year-end. The General Fund saw a significant increase in property taxes and sales tax when
compared to the prior year. The increase in property taxes directly relates to the addition of new properties to the
tax roll, as well as an increase in property values. The increase in sales is due to increased consumer spending
within the City limits.
The Capital Projects Fund had an ending fund balance of $56,038,025 at year-end, or an increase of $9,923,903,
due to bond proceeds of $29,575,000 and related premiums of $881,899 offset by capital outlay of $25,959,276.
The Debt Service Fund had an ending fund balance of $489,504 at year-end, or an increase of $33,758, due
primarily to an increase in property values offset by debt service payments.
The PID Capital Projects Fund had an ending fund balance of $6,353,628 at year-end, or a decrease of
$4,289,917, due to capital project expenditures of $4,297,784 for work done on the Meadow Vista development
project.
Proprietary Funds - The City’s proprietary funds provide the same type of information found in the government-
wide financial statements, but in more detail.
CAPITAL ASSETS
As of the end of the year, the City’s governmental activities had invested $252,458,263 in a variety of capital
assets and infrastructure, net of accumulated depreciation and amortization. The City’s business-type activities
had invested $275,384,380 in a variety of capital assets and infrastructure, net of accumulated depreciation and
amortization. More detailed information about the City’s capital assets is presented in Note 5 to the financial
statements.
LONG-TERM DEBT
At September 30, 2025, the City had total bonds and certificates, lease and subscription liabilities, and financed
purchases outstanding of $264,852,799. During the year, the City made payments on long-term debt totaling
$4,542,269. More detailed information about the City’s long-term liabilities is presented in Note 6 to the financial
statements.
City of Anna, Texas
Management's Discussion and Analysis
September 30, 2025
13
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Anna is recognized as one of the fastest growing city in the nation, with a booming population, a number of
developable sites, multiple north-south-east-west transportation corridors and growing infrastructure to support it.
The development of the City's budget is guided by several factors including the City's strategic plan and prevailing
economic conditions. The fiscal year 2026 budget adopted by the City Council adheres to the City's financial
policies and preserves the City's strong financial position while providing excellent levels of service. The annual
budget is adopted within context of five-year financial plans for the General and Utility funds. The long-term
financial plans project major operating revenues and categories of expenses. Changes in fund balances are
monitored to ensure that the City is in compliance with adopted fund balance policy.
Major programs in the General Fund continue to focus on public safety, community development and parks to
ensure the high quality of life enjoyed by Anna’s neighbors.
Revenue assumptions in the General Fund are expected to take into consideration current economic indicators.
Revenues, such as property tax revenue and sales tax revenue, are forecasted using both historical results and
current trends. Certified taxable property values in Anna totaled $4,374,378,861 for fiscal year 2026, which
represented a 14 percent increase from the previous year. The property tax rate increased 0.017873 to $0.525073
per $100 appraised value as compared to the previous fiscal year. Of the 2026 property tax rate, $0.356071 was
levied for operations and maintenance and $0.169002 for debt service.
Sales tax collections for the Town were conservatively budgeted from the amount collected in 2025. Sales tax
collections were projected to increase slightly in fiscal year 2026 compared to the 2025 budget.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the City of Anna’s finances for all those with an
interest in the City’s finances. Questions concerning this report or requests for additional financial information
should be directed to the Director of Finance, 120 W. 7th Street, Anna, Texas 75409.
This Page Left Intentionally Blank
Basic Financial Statements
This Page Left Intentionally Blank
Government-Wide Financial Statements
City of Anna, Texas
Statement of Net Position
September 30, 2025
Primary Government
Governmental
Activities
Business-Type
Activities Total
ASSETS AND DEFERRED OUTLFOWS OF
RESOURCES
Assets
Cash and cash equivalents $43,003,760 $37,709,381 $80,713,141
Receivables, net 2,022,501 4,722,700 6,745,201
Inventories -587,679 587,679
Prepaids 122,209 34,096 156,305
Restricted Assets
Restricted cash and cash equivalents 58,699,938 80,845,479 139,545,417
Capital Assets
Non-depreciable 116,755,635 106,986,887 223,742,522
Net depreciable capital assets 135,702,628 168,397,493 304,100,121
Total Assets 356,306,671 399,283,715 755,590,386
Deferred Outflows of Resources
Deferred loss on bond refunding -48,215 48,215
Deferred outflows - pension 2,003,251 381,418 2,384,669
Deferred outflows - OPEB 34,845 6,629 41,474
Total Deferred Outflows of Resources 2,038,096 436,262 2,474,358
Total Assets and Deferred Outflows of Resources $358,344,767 $399,719,977 $758,064,744
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION
Liabilities
Accounts payable and other liabilities $6,536,534 $15,761,409 $22,297,943
Accrued salaries 647,331 98,605 745,936
Customer deposits -1,989,702 1,989,702
Unearned revenue -693,788 693,788
Accrued interest payable 714,178 938,956 1,653,134
Noncurrent Liabilities
Due within one year 2,852,009 2,518,313 5,370,322
Due in more than one year 134,064,172 141,650,768 275,714,940
Total Liabilities 144,814,224 163,651,541 308,465,765
Deferred Inflows of Resources
Deferred inflows - leases 314,683 -314,683
Deferred inflows - land agreements -1,565,972 1,565,972
Deferred inflows - pension 302,555 57,606 360,161
Deferred inflows - OPEB 68,334 13,003 81,337
Total Deferred Inflows of Resources 685,572 1,636,581 2,322,153
Net Position
Net investment in capital assets 174,798,727 175,005,096 349,803,823
Restricted for
Water and sewer improvements -23,171,175 23,171,175
Debt service 489,504 -489,504
Capital projects 24,100,248 -24,100,248
Culture and recreation 14,627 -14,627
Public safety 473,479 -473,479
Community and economic development ---
Unrestricted 12,968,386 36,255,584 49,223,970
Total Net Position 212,844,971 234,431,855 447,276,826
Total Liabilities, Deferred Inflows of Resources, and
Net Position $358,344,767 $399,719,977 $758,064,744
The Notes to the Financial Statements are an integral part of these statements 16
17
Component Units
Community
Development
Corporation
Economic
Development
Corporation
Housing Finance
Corporation
$12,489,582 $6,529,599 $693,642
602,900 -915
---
12,194 --
---
3,955,385 -1,443,404
-141,792 -
17,060,061 6,671,391 2,137,961
---
57,536 --
1,001 --
58,537 --
$17,118,598 $6,671,391 $2,137,961
$174,701 $8,749 $915
17,488 --
---
---
34,027 --
366,014 --
5,491,657 --
6,083,887 8,749 915
---
--1,389,944
8,690 --
1,963 --
10,653 -1,389,944
309,108 141,792 1,443,404
---
363,948 --
---
---
---
10,351,002 6,520,850 -
--(696,302)
11,024,058 6,662,642 747,102
$17,118,598 $6,671,391 $2,137,961
The Notes to the Financial Statements are an integral part of these statements
18
City of Anna, Texas
Statement of Activities
For the Year Ended September 30, 2025
Program Revenues
Component Units
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Primary Government:
Governmental Activities
General government $7,794,867 $1,486,381 $184,892 $-
Culture and recreation 5,107,609 1,630,677 --
Community services 1,369,545 4,447,312 --
Public safety 15,540,437 1,056,291 72,008 -
Public works 9,885,719 3,750,330 41,295 22,934,971
Interest 5,897,518 ---
Total Governmental Activities 45,595,695 12,370,991 298,195 22,934,971
Business-Type Activities
Water and sewer 40,639,264 41,236,899 797,402 33,744,438
Public Facility Corporation 14,750 1,455,039 --
Total Business-type Activities 40,654,014 42,691,938 797,402 33,744,438
Total Primary Government $86,249,709 $55,062,929 $1,095,597 $56,679,409
Component Units
Community Development Corporation 1,802,959 16,950 --
Economic Development Corporation 51,468 86,820 --
Housing Finance Corporation 8,271 14,580 --
Total Component Units $1,862,698 $118,350 $-$-
General Revenues and Transfers:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Unrestricted investment earnings
Miscellaneous
Gain on sale of assets
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position, Beginning of Year
Net Position, Ending of Year
The Notes to the Financial Statements are an integral part of these statements
19
Net (Expense) Revenue and Changes in Net Position
Primary Government Component Units
Governmental
Activities
Business-type
Activities Total
Community
Development
Corporation
Economic
Development
Corporation
Housing
Finance
Corporation
$(6,123,594)$-$(6,123,594)$-$-$-
(3,476,932)-(3,476,932)---
3,077,767 -3,077,767 ---
(14,412,138)-(14,412,138)---
16,840,877 -16,840,877 ---
(5,897,518)-(5,897,518)---
(9,991,538)-(9,991,538)---
-35,139,475 35,139,475 ---
-1,440,289 1,440,289 ---
-36,579,764 36,579,764 ---
(9,991,538)36,579,764 26,588,226 ---
(1,786,009)--
-35,352 -
--6,309
(1,786,009)35,352 6,309
19,461,308 -19,461,308 ---
6,632,670 -6,632,670 3,979,602 --
1,537,055 -1,537,055 ---
3,963,511 4,953,020 8,916,531 596,854 299,210 30,926
2,346,832 1,231,563 3,578,395 27 -30,300
176,294 8,501 184,795 ---
(1,436,513)1,436,513 ----
32,681,157 7,629,597 40,310,754 4,576,483 299,210 61,226
22,689,619 44,209,361 66,898,980 2,790,474 334,562 67,535
190,155,352 190,222,494 380,377,846 8,233,584 6,328,080 679,567
$212,844,971 $234,431,855 $447,276,826 $11,024,058 $6,662,642 $747,102
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Fund Financial Statements
The Notes to the Financial Statements are an integral part of these statements 21
City of Anna, Texas
Balance Sheet - Governmental Funds
September 30, 2025
General Fund
Capital
Projects
Debt Service
Fund
PID Capital
Projects
Assets
Cash and cash equivalents $14,578,683 $7,128,582 $490,213 $-
Receivables, net 1,892,482 37,564 35,764 -
Due from other funds 141,650 ---
Prepaids 181,368 808,292 --
Restricted cash 14,627 50,054,465 -6,353,628
Total Assets $16,808,810 $58,028,903 $525,977 $6,353,628
Liabilities
Accounts payable and other liabilities $860,904 $1,990,878 $3,500 $-
Accrued salaries 642,417 ---
Due to other funds ----
Total Liabilities 1,503,321 1,990,878 3,500 -
Deferred Inflows of Resources
Unavailable revenue - property taxes 101,841 -32,973 -
Deferred inflows - leases 314,683 ---
Total Deferred Inflows of Resources 416,524 -32,973 -
Fund Balances (Deficit)
Nonspendable:
Prepaids 181,368 808,292 --
Restricted for:
Culture and recreation 14,627 ---
Debt service --489,504 -
Public safety ----
Capital projects -55,229,733 -6,353,628
Unassigned 14,692,970 ---
Total Fund Balances (Deficit)14,888,965 56,038,025 489,504 6,353,628
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficit)$16,808,810 $58,028,903 $525,977 $6,353,628
The Notes to the Financial Statements are an integral part of these statements 22
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$20,806,282 $43,003,760
56,691 2,022,501
-141,650
74,734 1,064,394
2,277,218 58,699,938
$23,214,925 $104,932,243
$3,681,252 $6,536,534
4,914 647,331
141,650 141,650
3,827,816 7,325,515
-134,814
-314,683
-449,497
74,734 1,064,394
-14,627
-489,504
473,479 473,479
18,924,980 80,508,341
(86,084)14,606,886
19,387,109 97,157,231
$23,214,925 $104,932,243
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CIty of Anna, Texas
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
September 30, 2025
The Notes to the Financial Statements are an integral part of these statements 23
Fund Balances - Total Governmental Funds $ 97,157,231
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities area not current financial resources and,
therefore not reported in the governmental funds.
Capital assets - non-depreciable 116,755,635
Capital assets - net depreciable, less subscription asset recognized as prepaid asset
in the fund financial statements of $942,185 134,760,443
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are deferred in the governmental funds. 134,814
Deferred outflows of resources, represent a consumption of net position that applies to a
future period(s) and is not recognized as an outflow of resources (expenditure) until that time.
Deferred outflows - pension 2,003,251
Deferred outflows - OPEB 34,845
Deferred inflows of resources, represent an acquisition of net position that applies to a
future period(s) and is not recognized as an inflow of resources (revenue) until that time.
Deferred inflows - pension (302,555)
Deferred inflows - OPEB (68,334)
Some liabilities, including bonds payable and accrued interest, are not reported as liabilities
in the governmenal funds.
Accrued interest payable (714,178)
General obligation refunding bonds (7,949,000)
General obligation bonds (46,410,000)
Combination tax and revenue refunding certificates of obligation (69,930,000)
Combination tax and revenue refunding bonds (240,000)
Arbitrage liability (1,466,260)
Unamortized premiums (5,332,585)
Financed purchases (316,709)
Lease liability (1,734,985)
Net pension liability (1,844,005)
Total OPEB liability (108,631)
Compensated absences (1,584,006)
Net Position of Governmental Activities $ 212,844,971
The Notes to the Financial Statements are an integral part of these statements 24
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
For the Year Ended September 30, 2025
General
Fund
Capital
Projects
Debt Service
Fund
PID Capital
Projects
Revenues
Property taxes $12,936,501 $-$5,619,509 $-
Sales taxes 6,632,670 ---
Charges for services 1,898,270 ---
Licenses and permits 4,514,425 ---
Fines and forfeitures 566,224 ---
Franchise and local taxes 1,537,055 ---
Investment income 839,636 2,064,568 86,613 476,494
Other revenues 189,630 ---
Intergovernmental 57,380 184,892 --
Contributions and donations 4,750 ---
Total Revenues 29,176,541 2,249,460 5,706,122 476,494
Expenditures
Current
General government 7,433,148 232,839 --
Culture and recreation 2,809,671 105,616 --
Community services 1,343,904 ---
Public safety 14,233,820 147,054 --
Public works 1,285,245 2,633 -259,888
Debt service
Principal 646,677 -1,574,000 -
Interest and fiscal charges 149,443 -4,098,364 -
Debt issuance costs -260,038 --
Capital outlay 944,263 25,959,276 -4,297,784
Total Expenditures 28,846,171 26,707,456 5,672,364 4,557,672
Excess (Deficiency) of Revenues
Over (Under) Expenditures 330,370 (24,457,996)33,758 (4,081,178)
Other Financing Sources (Uses)
Transfers in -3,925,000 --
Transfers out (3,925,000)--(208,739)
Issuance of leases 651,078 ---
Issuance of debt -29,575,000 --
Issuance of bond premiums -881,899 --
Sale of general capital assets 151,494 ---
Total Other Financing Sources (Uses)(3,122,428)34,381,899 -(208,739)
Net Change in Fund Balances (2,792,058)9,923,903 33,758 (4,289,917)
Fund Balances, Beginning of Year 17,681,023 46,114,122 455,746 10,643,545
Fund Balances, End of Year $14,888,965 $56,038,025 $489,504 $6,353,628
The Notes to the Financial Statements are an integral part of these statements 25
Nonmajor
Governmental
Funds
Total
Governmental
Funds
$887,011 $19,443,021
-6,632,670
5,376,932 7,275,202
-4,514,425
15,140 581,364
-1,537,055
496,200 3,963,511
2,157,202 2,346,832
51,173 293,445
-4,750
8,983,658 46,592,275
60,003 7,725,990
1,155,012 4,070,299
-1,343,904
17,412 14,398,286
913,792 2,461,558
-2,220,677
-4,247,807
-260,038
1,735,230 32,936,553
3,881,449 69,665,112
5,102,209 (23,072,837)
208,739 4,133,739
-(4,133,739)
-651,078
-29,575,000
-881,899
24,800 176,294
233,539 31,284,271
5,335,748 8,211,434
14,051,361 88,945,797
$19,387,109 $97,157,231
City of Anna, Texas
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2025
The Notes to the Financial Statements are an integral part of these statements 26
Net Change in Fund Balances - Total Governmental Funds $ 8,211,434
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the
cost of those assets is allocated over their estimated useful lives and reported as depreciation and
amortization expense. Capital contributions are only recognized on the statement of activities.
Capital outlay (excluding capital asset additions included in prepaids) 32,936,553
Depreciation and amortization expense (9,544,818)
Capital contributions 22,934,971
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins,
and donations) and the transfer of capital assets from governmental activities to business-type
activities to decrease net position.(1,436,513)
Some expenses reported in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.
Increase in compensated absences (138,185)
Increase in accrued interest payable (204,331)
Changes to net pension liability and pension related deferred outflows and inflows of resources do
not require the use of current financial resources and, therefore, are not reported as expenditures
in governmental funds. 735
Changes to other postemployment benefits liability and related deferred outflows and inflows
of resources do not require the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds.(15,872)
Various other reclassification and eliminations are necessary to convert from the modified accrual
basis of accounting to accrual basis of accounting. This includes the change in unavailable
revenues from the prior year. 18,287
The issuance of long-term debt (e.g., bonds, leases, certificates of obligation) provides current
financial resources to governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither transaction, however, has
any effect on net position. Also, governmental funds report the effect of issuance costs, premiums,
discounts, and similar items when debt is first issued, whereas the amounts are deferred and
amortized in the statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.
Lease proceeds (651,078)
Issuance of bonds (29,575,000)
Premium of bonds (881,899)
Arbitrage liability (1,466,260)
Amortization of debt premium 280,918
General, certificate of obligation, and revenue bond principal payments 1,574,000
Lease principal payments 523,519
Subscription principal payments 26,306
Financed purchase payments 96,852
Change in Net Position of Governmental Activities $ 22,689,619
Proprietary Fund Financial Statements
This Page Left Intentionally Blank
The Notes to the Financial Statements are an integral part of these statements 28
City of Anna, Texas
Statement of Net Position
Proprietary Funds
September 30, 2025
Utility Fund
Nonmajor Public
Facility
Corporation
Total
Proprietary
Funds
ASSETS
Current Assets
Cash and cash equivalents $32,842,658 $4,866,723 $37,709,381
Receivables, net 4,464,976 257,724 4,722,700
Inventories 587,679 -587,679
Total Current Assets 37,895,313 5,124,447 43,019,760
Noncurrent Assets
Restricted cash and cash equivalents 80,845,479 -80,845,479
Prepaids 34,096 -34,096
Capital assets
Non-depreciable 101,142,762 5,844,125 106,986,887
Net depreciable capital assets 168,397,493 -168,397,493
Total Noncurrent Assets 350,419,830 5,844,125 356,263,955
Total Assets 388,315,143 10,968,572 399,283,715
Deferred Outflows of Resources
Deferred loss on bond refunding 48,215 -48,215
Deferred outflows - pension 381,418 -381,418
Deferred outflows - OPEB 6,629 -6,629
Total Deferred Outflows of Resources 436,262 -436,262
LIABILITIES
Current Liabilities
Accounts payable $15,761,409 $-$15,761,409
Salaries payable 98,605 -98,605
Accrued interest payable 938,956 -938,956
Customer deposits 1,989,702 -1,989,702
Unearned revenue 88,946 604,842 693,788
Compensated absences 20,395 -20,395
Lease liability 134,311 -134,311
Bonds payable - current 2,177,000 -2,177,000
Financed purchases - current 186,607 -186,607
Total Current Liabilities 21,395,931 604,842 22,000,773
Noncurrent Liabilities
Bonds payable 138,563,541 -138,563,541
Arbitrage liability 1,882,719 -1,882,719
Financed purchases 336,101 -336,101
Compensated absences 183,553 -183,553
Lease liability 313,085 -313,085
Net pension liability 351,098 -351,098
Total OPEB liability 20,671 -20,671
Total Noncurrent Liabilities 141,650,768 -141,650,768
Total Liabilities 163,046,699 604,842 163,651,541
Deferred Inflows of Resources
Deferred inflows - pension 57,606 -57,606
Deferred inflows - OPEB 13,003 -13,003
Deferred inflows - land agreement -1,565,972 1,565,972
Total Deferred Inflows of Resources 70,609 1,565,972 1,636,581
Net Position
Net investment in capital assets 169,160,971 5,844,125 175,005,096
Restricted for
Water and sewer improvements - impact fees 23,171,175 -23,171,175
Unrestricted 33,301,951 2,953,633 36,255,584
Total Net Position $225,634,097 $8,797,758 $234,431,855
This Page Left Intentionally Blank
The Notes to the Financial Statements are an integral part of these statements 29
City of Anna, Texas
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2025
Utility Fund
Nonmajor
Public Facility
Corporation
Total
Proprietary
Funds
Operating Revenues
Water $14,016,798 $-$14,016,798
Sewer 10,884,800 -10,884,800
Sanitation 4,106,236 -4,106,236
Stormwater 444,042 -444,042
Service charges 1,468,022 -1,468,022
Connection fees 494,285 -494,285
Developer fees 9,604,376 -9,604,376
Miscellaneous 329,007 2,525,787 2,854,794
Total Operating Revenues 41,347,566 2,525,787 43,873,353
Operating Expenses
Personnel services 2,829,299 -2,829,299
Contracted services 17,267,949 14,750 17,282,699
Repairs and maintenance 1,409,590 -1,409,590
Supplies 251,751 -251,751
Utilities 845,258 -845,258
Depreciation 6,949,579 -6,949,579
Other expenses 4,283,077 -4,283,077
Total Operating Expenses 33,836,503 14,750 33,851,253
Operating Income 7,511,063 2,511,037 10,022,100
Nonoperating Revenues (Expenses)
Investment income 4,777,865 175,155 4,953,020
Intergovernmental revenue 797,402 -797,402
Gain on sale of capital assets 8,501 -8,501
Interest expense (6,752,613)-(6,752,613)
Total Nonoperating Revenues (Expenses)(1,168,845)175,155 (993,690)
Income Before Capital Contributions 6,342,218 2,686,192 9,028,410
Capital contributions 35,180,951 -35,180,951
Change in Net Position 41,523,169 2,686,192 44,209,361
Net Position, Beginning of Year 184,110,928 6,111,566 190,222,494
Net Position, End of Year $225,634,097 $8,797,758 $234,431,855
City of Anna, Texas
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2025
The Notes to the Financial Statements are an integral part of these statements 30
Nonmajor Total
Public Facility Proprietary
Utility Fund Corporation Funds
Cash Flows From Operating Activities
Receipts from customers and users $ 41,785,074 $ 2,755,962 $ 44,541,036
Payments to suppliers (23,427,021)(43,120)(23,470,141)
Payments to employees (2,810,181)-(2,810,181)
Net Cash Provided by Operating Activities 15,547,872 2,712,842 18,260,714
Cash Flows From Capital and Related Financing Activities
Acquisition and construction of capital assets (54,525,655)-(54,525,655)
Proceeds from sale of assets 8,501 8,501
Proceeds from bond issuance 54,058,671 -54,058,671
Principal payments bond payable (1,975,000)-(1,975,000)
Principal payments on financed purchases (182,193)-(182,193)
Principal payments on leases (138,093)-(138,093)
Principal payments on subscriptions (26,306)-(26,306)
Interest paid (4,387,276)-(4,387,276)
Impact fees received 797,402 -797,402
Net Cash Used for Capital and Related Financing Activities (6,369,949)-(6,369,949)
Cash Flows From Investing Activities
Investment earnings 4,777,865 175,155 4,953,020
Net cash provided by investing activities 4,777,865 175,155 4,953,020
Net increase in cash and cash equivalents 13,955,788 2,887,997 16,843,785
Cash and Cash Equivalents, Beginning of Year 99,732,349 1,978,726 101,711,075
Cash and Cash Equivalents, End of Year $ 113,688,137 $ 4,866,723 $ 118,554,860
Reconciliation to Statement of Net Position
Cash and cash equivalents $ 32,842,658 $ 4,866,723 $ 37,709,381
Restricted cash and cash equivalents 80,845,479 -80,845,479
$ 113,688,137 $ 4,866,723 $ 118,554,860
The Notes to the Financial Statements are an integral part of these statements 31
Nonmajor Total
Public Facility Proprietary
Utility Fund Corporation Funds
Reconciliation of Operating Income to Net Cash Provided by
Operating Activities
Operating income $ 7,511,063 $ 2,511,037 $ 10,022,100
Adjustments to reconcile operating income to cash provided by
operating activities:
Depreciation expense 6,949,579 -6,949,579
(Increase) decrease in assets and deferred outflows
Accounts receivable 437,507 -437,507
Prepaids (9,713)-(9,713)
Deferred outflows - pension 647 -647
Deferred outflows - OPEB 1,780 -1,780
Increase (decrease) in liabilities and deferred inflows:
Accounts payable 541,253 (12,015) 529,238
Accrued expenses 136,729 -136,729
Total pension liability (53,013)-(53,013)
Total OPEB liabilitiy 1,419 -1,419
Compensated absences (21,429)-(21,429)
Unearned revenue -230,175 230,175
Deferred inflows - pension 52,227 -52,227
Deferred inflows - OPEB (177)-(177)
Deferred inflows - land lease -(16,355)(16,355)
Net Cash Provided by Operating Activities $ 15,547,872 $ 2,712,842 $ 18,260,714
Schedule of Non-Cash Capital and Related Financing Activities
Capital assets in accounts payable and change in retainage payable $ 13,220,869 $-$ 13,220,869
Contributions of capital assets $ 33,744,438 $-$ 33,744,438
Transfer of capital assets from governmental activities $ 1,436,513 $-$ 1,436,513
This Page Left Intentionally Blank
Fiduciary Fund Financial Statements
The Notes to the Financial Statements are an integral part of these statements 33
City of Anna, Texas
Statement of Fiduciary Net Position
Custodial Funds
September 30, 2025
PID
Custodial
Fund
ASSETS
Cash and cash equivalents - restricted $10,789,353
Total Assets 10,789,353
LIABILITIES
Accounts payable and accrued liabilities 18,912
Total Liabilities 18,912
NET POSITION
Restricted for PID debt service 10,770,441
Total Net Position $10,770,441
The Notes to the Financial Statements are an integral part of these statements 34
City of Anna, Texas
Statement of Changes in Fiduciary Net Position
Custodial Funds
For the Year Ended September 30, 2025
PID
Custodial
Fund
ADDITIONS
Special assessments $6,750,393
Investment earnings 545,403
Other income 188,105
Total Additions 7,483,901
DEDUCTIONS
Contract services 587,707
Principal 946,000
Interest and fiscal charges 4,509,692
Total Deductions 6,043,399
Change in Net Position 1,440,502
Net Position, Beginning of Year 9,329,939
Net Position, End of Year $10,770,441
This Page Left Intentionally Blank
Notes to the Financial Statements
This Page Left Intentionally Blank
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
36
Note 1. Summary of Significant Accounting Policies
A.Reporting Entity
The City of Anna, Texas (the "City") is a home rule charter city that operates under a Council-Manager form of
government.
The City Council is the principal legislative body of the City. The City Manager is appointed by a majority vote of
the City Council and is responsible to the Council for the administration of all the affairs of the City. The City
Manager is responsible for the appointment and removal of department directors and employees, supervision and
control of all City departments, and preparation of the annual budget.
The City provides the following services: public safety, ambulance, streets, sanitation, planning and zoning, and
general administrative services. Other services include water, sewer, and sanitation operations.
The City is an independent political subdivision of the State of Texas governed by an elected council and a mayor
and is considered a primary government. As required by generally accepted accounting principles, these basic
financial statements have been prepared based on considerations regarding the potential for inclusion of other
entities, organizations, or functions as part of the City's financial reporting entity. The component units listed below,
although legally separate, are considered part of the reporting entity. No other entities have been included in the
City's reporting entity. Additionally, as the City is considered a primary government for financial reporting purposes,
its activities are not considered a part of any other governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the City's
financial reporting entity are based on criteria prescribed by generally accepted accounting principles. These same
criteria are evaluated in considering whether the City is a part of any other governmental or other type of reporting
entity. The overriding elements associated with prescribed criteria considered in determining that the City's
financial reporting entity status is that of a primary government are that it has a separately elected governing body,
it is legally separate, and it is fiscally independent of other state and local governments. Additionally, prescribed
criteria under generally accepted accounting principles include considerations pertaining to organizations for which
the primary government is financially accountable and considerations pertaining to organizations for which the
nature and significance of their relationship with the primary government are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete.
Blended Component Units
The Anna Public Facility Corporation (PFC) is a blended component unit presented as a nonmajor enterprise fund
of the City. The members of the PFC’s board of seven directors is comprised of members of the City Council. The
purpose of the PFC is to provide for the acquisition, construction, rehabilitation, renovation, repair, and furnishings
of public facilities in the City.
Anna Tax Increment Reinvestment Zone 2, 3, 4, 5, and 6 (TIRZ), were formed to finance and make public
improvements under the authority of the Tax Increment Financing Act. The TIRZ are governed by separate boards
of directors that are substantively the same as City Council. The City approves TIRZ budgets and any debt
issuances, and the TIRZ provide services entirely to the City.
Discretely Presented Component Units
Some organizations are included as component units because of their fiscal dependency on the primary
government. An organization is fiscally dependent on the primary government if it is unable to adopt its budget,
levy taxes, set rates or charges, or issue bonded debt without the approval by the primary government. The
following entities were found to be discretely presented component units of the City and are included in the basic
financial statements:
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
37
Anna Economic Development Corporation
The Anna Economic Development Corporation (EDC) fund was incorporated in the state of Texas as a nonprofit
industrial development corporation under Section 4B of the Development Corporation Act of 1979. The purpose of
the EDC is to promote economic development within the City of Anna.
Anna Community Development Corporation
The Anna Community Development Corporation (CDC) fund was incorporated in the state of Texas as a nonprofit
industrial development corporation under Section 4A of the Development Corporation Act of 1979. The purpose of
the CDC is to promote community development within the City of Anna.
Anna Housing Finance Corporation
The Anna Housing Finance Corporation (HFC) fund was created in 2021 pursuant to Chapter 394, Local
Government Code, as amended, and is a business-type discretely presented component unit. The purpose of the
HFC is to issue single-family and multi-family bonds for the financing of reasonably priced housing.
The members of both the EDC and CDC’s board of seven directors are appointed by the City Council. Both the
EDC and CDC are fiscally dependent upon the City as the City Council approves their budgets and must approve
any debt issuance. The HFC is managed by a board of seven directors comprised of members of the City Council.
The EDC, CDC, and HFC resources assist the City with community development and financing development
projects beneficial to the City. All of the EDC and CDC funding can be used for direct assistance to prospects and
continued development of infrastructure. The nature and significance of the relationship between the primary
government and the organizations are such that exclusion would cause the City's financial statements to be
misleading or incomplete. Separate financial statements are not issued for the discretely presented component
units.
B.Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the primary government. Governmental activities, which normally
are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported
separately from business-type activities, which rely to a significant extent on fees and charges to external
customers for support.
C.Basis of Presentation – Government-wide Financial Statements
While government-wide and fund financial statements are presented separately, they are interrelated. The
governmental activities column incorporates data from governmental funds, while business-type activities
incorporate data from the City’s enterprise funds. Separate financial statements are provided for governmental
funds and proprietary funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably
equivalent in value to the interfund services provided and other charges between the City's water and wastewater
functions and various other functions of the City. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
D.Basis of Presentation – Fund Financial Statements
The fund financial statements provide information about the City’s funds. Separate statements for each fund
category - governmental and proprietary - are presented. The emphasis of fund financial statements is on major
governmental and enterprise funds, each displayed in a separate column. All remaining governmental and
enterprise funds are aggregated and reported as nonmajor funds.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
38
The City reports the following major governmental funds:
The General Fund is used to account for and report all financial resources not accounted for and
reported in other funds. The principal sources of revenues include local property taxes, sales and
franchise taxes, licenses and permits, fines and forfeitures, and charges for services. Expenditures
include general government, public safety, public works, community services, and culture and recreation.
The General Fund is always considered a major fund for reporting purposes.
The Capital Projects Fund is used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets.
The Debt Service Fund is used to account for the accumulation of resources that are restricted,
committed, or assigned for the payment of principal and interest on long-term obligations of
governmental funds. The primary source of revenue for Debt Service is local property taxes. The Debt
Service fund is considered a major fund for reporting purposes.
The PID Capital Projects Fund is used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction of
capital facilities and other capital assets relating to various PID agreements. The PID Capital Projects
Fund is considered a major fund for reporting purposes.
Additionally, the City reports the following nonmajor governmental funds:
The City accounts for resources restricted to, or designated for, specific purposes in Special Revenue
Funds. These funds consist of the Roadway Impact Fee Service Area One and Two, State Police
Seizure Fund, Fire Department Capital Improvement Fund, Park Development Fund, Grant Fund,
Roadway Capital Development Agreement Fund, Tax Increment Zone Number’s 2, 3, 4, 5, 6, PID Fee
Fund and Other Special Revenue Fund.
The City reports the following major enterprise fund:
The Utility Fund is used to account for the provision of water, sewer, storm water, solid waste collection
services and wastewater treatment operations. Activities of the fund include administration, operations
and maintenance of the water system, and billing and collection activities. The fund also accounts for the
accumulation of resources for, and the payment of, long- term debt principal and interest. All costs are
financed through charges to utility customers with rates reviewed regularly and adjusted if necessary to
ensure integrity of the fund.
Additionally, the City reports the Public Facility Corporation, a blended component unit, as a nonmajor enterprise
fund.
The City reports the following fiduciary fund:
The Public Improvement District (PID) Custodial Fund accounts for bond proceeds, assessments, and
related debt associated with the issuance of bonds issued by the City as an agent for the Public
Improvement District.
During the course of operations the City has activity between funds for various purposes. Any residual balances
outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these
balances are reported in fund financial statements, certain eliminations are made in the preparation of the
government-wide financial statements. Balances between the funds included in governmental activities (i.e., the
governmental funds) are eliminated so that only the net amount is included as internal balances in the
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
39
governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the
enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type
activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial
statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial
statements, certain eliminations are made in the preparation of the government-wide financial statements.
Transfers between the funds included in governmental activities are eliminated so that only the net amount is
included as transfers in the governmental activities column. Similarly, balances between the funds included in
business-type activities are eliminated so that only the net amount is included as transfers in the business-type
activities column.
E.Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of
accounting. Measurement focus indicates the type of resources being measured such as current financial
resources or economic resources. The basis of accounting indicates the timing of transactions or events for
recognition in the financial statements.
The government-wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized
as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as
all eligibility requirements imposed by the provider have been met.
The governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. Expenditures generally are recorded when
a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when
payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance
of long-term debt and acquisitions under financed purchases and lease and subscription liabilities are reported as
other financing sources.
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are not reported in the government-wide financial statements because the resources of those funds are not
available to support the City’s own programs. Fiduciary funds are accounted for using the accrual basis of
accounting. Revenues are recognized when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows.
The City considers revenues available if they are collected within 60 days of the end of the current period. Property
taxes, sales taxes, franchise taxes, and interest associated with the current period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current period. Other receipts and other
taxes become measurable and available when cash is received by the government and are recognized as revenue
at that time. Generally, the effect of interfund activity has been eliminated from the government-wide financial
statements.
F.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/ Fund Balance
1.Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and balances in local
government investment pools.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
40
The City maintains pooled cash accounts. Each fund whose monies are deposited in the pooled cash accounts
has equity therein, and interest earned on these monies is allocated based upon relative equity at the previous
month end.
2.Investments
Investments, with certain exceptions, are reported at fair value. The exceptions are investments in external
investment pools and nonparticipating interest earning contracts, such as certificates of deposit, which are
reported at amortized cost and a cost-based measure, respectively.
The City has adopted a written investment policy regarding the investment of its funds as defined in the Public
Funds Investment Act, Chapter 2256, Texas Government Code. In summary, the City is authorized to invest in the
following:
Direct obligations of the U.S. government, its agencies and instrumentalities
Certificates of deposit that meet certain criteria
Money market mutual funds that meet certain criteria
Local government investment pools
3.Receivables and Interfund Transactions
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of
the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or
“advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All other outstanding balances
between funds are reported as “due to/from other funds” in the fund financial statements. If the transactions are
between the primary government and its component unit, these receivables and payables are classified as “due
to/from component unit/primary government.” Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial statements as “internal
balances.”
4.Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories is recorded as
expenditures/expenses when the related liability is incurred, (i.e., the purchase method).
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as
expenditures/expenses when consumed rather than when purchased.
5.Capital Assets
Capital assets, which include land and improvements, construction in progress, buildings and improvements,
machinery and equipment, infrastructure (e.g., roads, bridges, sidewalks, and similar items), and water and sewer
systems are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than
$5,000, and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at
the date of donation.
Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of
normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not
capitalized.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
41
Land and improvements and construction in progress are not depreciated. Buildings and improvements,
machinery and equipment, infrastructure, and water and sewer systems of the primary government are
depreciated using the straight-line method over the following estimated useful lives:
Asset Description Estimated Useful Life
Buildings 20 years
Water and sewer system 35 years
Equipment 3 - 20 years
Streets 20 years
6.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows
of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The City has the following items that qualify for reporting in this
category:
In the government-wide and proprietary fund statements of net position:
A deferred loss on bond refunding results from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
Deferred outflows related to net pension and total other postemployment benefit liabilities result from
differences in expected and actual economic experience, changes in actuarial assumptions and other
inputs, and contributions made subsequent to the measurement date of each plan. These activities are
amortized over the weighted average remaining service life of all participants in the respective qualified
pension and OPEB plan, except for contributions made subsequent to the measurement date of each
plan, which are recognized in the subsequent fiscal year.
In addition to liabilities, the statement of financial position (or balance sheet) will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow
of resources (revenue) until that time. The City has the following items that qualify for reporting in this category:
In the governmental funds balance sheet:
•Unavailable revenues from property taxes are deferred and recognized as an inflow of resources in the
period that the amounts become available.
•Related to lessor arrangements under GASB 87, lease revenue is deferred and recognized as revenue
over the life of the lease term. This deferred inflow is recorded at both the fund level and government-
wide financial statements.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
42
In the government-wide and proprietary fund statements of net position:
•Deferred inflows related to net pension and total other postemployment benefit liabilities results from
differences in projected and actual earnings on plan investments, expected and actual economic
experience, changes in actuarial assumptions and other inputs. These activities are amortized over the
weighted average remaining service life of all participants in the respective qualified pension and OPEB
plan, except for projected and actual earnings differences on investments, which are amortized on a
closed basis over a 5-year period.
•Related to lessor arrangements under GASB 87, lease revenue is deferred and recognized as revenue
over the life of the lease term. This deferred inflow is recorded at both the fund level and government-
wide financial statements.
7.Compensated Absences
Vacation and sick leave are accrued as liabilities as employees earn the benefit to the extent that they meet all of
the following criteria: 1) the City's obligation is attributable to employees' services already rendered; 2) the leave
accumulates; and 3) it is more likely than not that the City will compensate.
For the government-wide financial statements, as well as the proprietary fund financial statements, outstanding
compensated absences are recorded as a liability based on the last-in-first-out (LIFO) method.
The change in compensated absences is presented as a net amount, in accordance with GASB 101 in Note 6,
Long-Term Liabilities.
8.Leases
Lessee
The City is a lessee for noncancellable leases of property and equipment. The City recognizes a lease liability,
reported with long-term debt, and a right-to-use lease asset (lease asset), reported with other capital assets, in the
government-wide and proprietary fund financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments
expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of
lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for
lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequent, the
lease asset is amortized on a straight-line basis over the shorter of the lease term or its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate if uses to
discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged
by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the
discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease liability are composed of fixed payments and
purchase option price that the City is reasonably certain to exercise.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
43
The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure
the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the
lease liability.
Lessor
The City is a lessor for noncancellable leases of property and equipment. The City recognizes a lease receivable
and a deferred inflow of resources in the government-wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal
portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of
the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses the interest rate charged by the lessor as the discount rate when the interest rate. When the
interest rate charged by the lessor is not provided, the City uses its estimated incremental borrowing rate
as the discount rate for leases.
The lease term includes the noncancellable period of the lease.
Lease payments included in the measurement of the lease receivable are composed of fixed payments
from the lessee and any lease incentives that are payable to the lessee.
The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
9.Subscription-Based Information Technology Arrangements (SBITAs)
The City has noncancellable contracts with SBITA vendors for the right to use information technology (IT)
software, alone or in combination with tangible capital assets (the underlying IT assets). The City recognizes a
subscription liability, reported with long-term debt, and a right-to-use subscription asset (subscription asset),
reported with other capital assets, in the government-wide and proprietary fund financial statements. The City
recognizes subscription liabilities with an initial, individual value of $50,000 or more.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of
payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by
the principal portion of SBITA payments made. The subscription asset is initially measured as the initial amount of
the subscription liability, adjusted for SBITA payments made at or before the SBITA commencement date, plus
certain initial implementation costs. Subsequently, the subscription asset is amortized on a straight-line basis over
the shorter of the subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to
discount the expected subscription payments to present value, (2) subscription term, and (3) subscription
payments.
•The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate
charged by the SBITA vendor is not provided, the City generally uses its estimated incremental
borrowing rate as the discount rate for SBITAs.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
44
•The subscription term includes the noncancellable period of the SBITA.
•Subscription payments included in the measurement of the subscription liability are composed of fixed
payments and any other payments that are reasonably certain of being required based on an
assessment of all relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its SBITAs and will
remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the
amount of the subscription liability.
10.Long-Term Obligations
The government-wide financial statements and proprietary fund financial statements report long-term debt and
other long-term liabilities in the applicable governmental activities, business-type activities, or proprietary fund
statement of net position. Bond premiums and discounts are amortized over the life of the bonds. Bonds payable
are reported net of the applicable bond premiums or discounts.
The fund financial statements report bond premiums and discounts during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other
financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Long-term debt is recognized as a liability of a governmental fund when due, or when resources have been
accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only
that portion expected to be paid from expendable available financial resources is reported as a fund liability of a
governmental fund. Long-term liabilities expected to be paid from proprietary fund operations are accounted for in
those funds.
Assets acquired under the terms of a finance purchase or lease obligation are recorded as liabilities and
capitalized in the government-wide financial statements at the present value of net minimum lease payments at
inception of the lease. In the year of acquisition, finance purchase and lease obligation transactions are recorded
as other financing sources and as capital outlay expenditures in the applicable fund. Lease payments representing
both principal and interest are recorded as expenditures in the general fund upon payment with an appropriate
reduction of principal recorded in the government-wide financial statements.
11.Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas
Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been
determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized
in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit
payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
12.Other Postemployment Benefits (OPEB)
The City offers one OPEB plan, a single-employer defined benefit group-term life insurance plan known as the
Supplemental Death Benefits Fund (“SDBF”) administered by TMRS. Total OPEB liability, deferred outflows of
resources and deferred inflows of resources related to total OPEB liability, and total OPEB expense have been
determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized
in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit
payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
45
13.Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant
proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and
unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption
must be made about the order in which the resources are considered to be applied. It is the City’s policy to
consider restricted – net position to have been depleted before unrestricted – net position is applied.
14.Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the
total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as
restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a
flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s
policy to consider restricted fund balance to have been depleted before using any of the components of
unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same
purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is
applied last.
15.Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations
requiring the use of resources for specific purposes. The City itself can establish limitations on the use of
resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The
City reports the following classifications of fund balance:
Nonspendable fund balance – includes amounts that are not in spendable form or are legally or contractually
required to be maintained intact.
Restricted fund balance – includes amounts that have external constraints imposed upon the use of the resources
by creditors, grantors, contributors, laws or regulations of other governments or imposed by law through
constitutional provisions or enabling legislation.
Committed fund balance – includes amounts that can be used only for the specific purposes pursuant to
constraints imposed by a formal action of the City’s highest level of decision-making authority. The City Council is
the highest level of decision-making authority for the City that can, by approval of a resolution prior to the end of
the fiscal year, commit fund balance. Once approved, the limitation imposed by the resolution remains in place
until a similar action is taken (the approval of another resolution) to remove or revise the limitation.
Assigned fund balance – includes amounts that are intended to be used by the City for specific purposes but do
not meet the criteria to be classified as committed. The City Council has, by resolution, authorized the City’s
Finance Director to assign fund balance to a specific purpose as approved by the City’s fund balance policy.
Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not
normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action
is essential to either remove or revise a commitment.
Unassigned fund balance – the residual classification for the government’s General Fund and includes all
spendable amounts not contained in the other classifications, and other funds that have total negative fund
balances.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
46
16.Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
deferred outflows and inflows of resources, and the disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and expenditures/expenses during the reporting
period. Actual results could differ from those estimates.
17.Adoption of New Accounting Standards
The City adopted GASB Statement No. 101, Compensated Absences (GASB 101) for the year ended September
30, 2025. The new accounting guidance updates the recognition and measurement guidance for compensated
absences under a unified model. Specifically, the new standard clarifies that a liability should be recorded for
compensated absences that are more likely than not to be paid or otherwise settled. Additionally, it amends certain
existing disclosure requirements. The adoption of GASB 101 had no impact on the City's beginning of year net
position.
The City adopted GASB Statement No. 102, Certain Risk Disclosures (GASB 102) for the year ended September
30, 2025. The new accounting guidance requires governments to disclose information about certain
concentrations or constraints that could affect services provided or the ability to meet obligations as they come
due. The adoption of GASB 102 had no impact on the City's beginning of year net position.
18.Future Accounting Pronouncements
The GASB has issued the following Statements which will become effective in future years as shown below:
GASB Statement No. 103, Financial Reporting Model Improvements (GASB 103)
GASB 103 seeks to improve the financial reporting model by standardizing the presentation for various matters
within the governmental financial statements. The purpose is to eliminate diversity practice and improve
comparability. The City expects to first apply GASB 103 during the year ending September 30, 2026. The impact
of applying the Statement has not been determined by management of the City.
GASB Statement No. 104, Disclosure of Certain Capital Assets (GASB 104)
GASB 104 seeks to improve disclosures related to certain types of capital assets. The purpose is to provide users
of government financial statements with essential information about certain types of capital assets. The City
expects to first apply GASB 104 during the year ending September 30, 2026. The impact of applying this
Statement has not been determined by management of the City.
GASB Statement No. 105, Subsequent Events (GASB 105)
GASB 105 seeks to improve the financial reporting requirements for subsequent events, thereby enhancng
consistency in the application and better meeting the information needs of the financial statement users. The City
first expects to first apply GASB 105 during the year ending September 30, 2027. The impact of applying the
Statement has not been determined by management of the City.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
47
G.Revenues and Expenditures/Expenses
1.Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions (including special assessments) that are restricted to meeting the operational or capital requirements
of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally
dedicated resources are reported as general revenues rather than as program revenues.
2.Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and
business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of
the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed.
Penalties are calculated after February 1 up to the date collected by the government at the rate of 6% for the first
month and increased 1% per month up to a total of 12%. Interest is calculated after February 1 at the rate of 1%
per month up to the date collected by the government. Under state law, property taxes levied on real property
constitute a lien on the real property which cannot be forgiven without specific approval of the State Legislature.
The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible by the
City.
Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the utility fund is charges to
customers for sales and services. The utility fund also recognizes as operating revenue the portion of tap fees
intended to recover the cost of connecting new customers to the system. Operating expenses for the utility fund
includes the operating cost of sales and services, administrative expenses, and depreciation/amortization on
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
Note 2. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for the
General Fund, Debt Service Fund, Grant Fund, CDC and EDC. The original budget is adopted by the City Council
prior to the beginning of the year. The legal level of control is defined at the fund level. No funds can be transferred
or added to a budgeted fund without Council approval. Appropriations lapse at the end of the year.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
48
Note 3. Deposits and Investments
Deposits
State statutes require that all deposits be fully collateralized by U.S. Government obligations or obligations of
Texas and its agencies that have a market value of not less than the principal amount of the deposits. The City’s
demand deposits and certificates of deposit were fully insured or collateralized at September 30, 2025, with
collateral required by state statutes. At year-end, the carrying amount of the City’s deposits (including component
units and fiduciary funds) was $151,682,489 and the bank balance was $152,887,006. Of the bank balance,
federal depository insurance covered $250,000 and the remainder was covered by collateral held by the pledging
financial institution’s agent in the City’s name.
Cash, cash equivalents, and investments as of September 30, 2025 consist of and are classified in the
accompanying financial statements as follows:
Statement of Net Position
Primary Government
Cash and cash equivalents $ 80,713,141
Restricted cash and cash equivalents 139,545,417
Total Primary Government 220,258,558
Fidcuciary Fund
Cash and cash equivalents 10,789,353
Component Units
Cash and cash equivalents 19,712,823
Total Cash, Cash Equivalents, and Investments $ 250,760,734
Cash on hand $ 2,100
Deposits with financial institution 168,057,378
Investment pools/Certificates of deposit 82,701,256
Total Cash, Cash Equivalents, and Investments $ 250,760,734
As of September 30, 2025, the City had the following investments:
Weighted Average
Value Maturity (Days)
TexPool $ 77,701,256 40
Certificates of deposit 5,000,000
Total $ 82,701,256
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
49
Interest rate risk
Interest rate risk is the risk that changes in interest rates that may adversely affect the value of an investment. The
City structures its investment portfolio so that securities mature to meet cash requirements for ongoing operations,
and monitors interest rate risk using weighted average maturity analysis. In accordance with its investment policy,
the City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment
portfolio as a whole to no more than 365 days.
Credit risk
The City's policy requires that investments are limited to only certain instruments that are authorized by the Public
Funds Investment Act. Further specifications are that external investment pools must be rated no lower than
"AAA" or an equivalent rating by at least one nationally recognized rating service, United States Treasury and
agency investments are guaranteed (either express or implied) and backed by the full faith and credit of the United
States or its respective agencies, and certificates of deposit are guaranteed or insured by the Federal Deposit
Insurance Corporation (FDIC) or fully collateralized under an approved pledge agreement.
As of September 30, 2025, the City's investment in TexPool was rated "AAAm" by Standard & Poor’s. The
certificates of deposit are unrated but were fully collateralized.
Custodial credit risk – deposits
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned.
The City's investment policy requires funds on deposit at the depository bank to be collateralized by securities, to
the extent the deposits exceed FDIC coverage. As of September 30, 2025, the combined values of pledged
securities and FDIC coverage exceeded bank balances for the City.
Custodial credit risk – investments
For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to
recover the value of its investments or collateral securities that are in the possession of an outside party. The
City's investment policy requires that custody of securities is maintained at financial institutions, avoiding physical
possession, and that securities owned by the City shall be held in the City’s account.
Concentration of credit risk
The risk is the risk of loss attributed to the magnitude of a City’s investment in a single issuer. The City’s
investment policy specifies undue concentrations of assets in a specific maturity sector shall be avoided.
The City’s investments are stated at fair value, with certain exceptions described below. The City categorizes its
fair value measurements within the fair value hierarchy established by GASB Statement No. 72, Fair Value
Measurement and Application, which provides a framework for measuring fair value and establishes a three-level
fair value hierarchy that describes the inputs that are used to measure assets and liabilities.
•Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a
government can access at the measurement date.
•Level 2 inputs are inputs, other than quoted prices within Level 1 that are observable for an asset or
liability, either directly or indirectly.
•Level 3 inputs are unobservable inputs for an asset or liability.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
50
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a
price for an identical asset or liability is not observable, a government should measure fair value using another
valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable
inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value
hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the
entire measurement.
Certain investments are not required to be measured at fair value; these include its investment in the TexPool
external investment pool, which is measured at amortized cost and its investments in certificates of deposit, which
are measured based on cost and is included in cash equivalents. These instruments are exempt from
categorization within the fair value hierarchy.
TexPool is a local government investment pool, duly chartered and overseen by the State Comptroller’s Office,
and administered and managed by Federated Investors, Inc. State Street Bank serves as the custodial bank.
TexPool’s investment portfolio consists of U.S. Government securities; collateralized repurchase and reverse
repurchase agreements; and AAA-rated money market mutual funds. The pool’s investments are highly rated by
nationally recognized statistical rating organizations, have no more than five percent concentrated in one issuer
(excluding U.S. government securities), and are sufficiently liquid to meet reasonably foreseeable redemptions.
TexPool transacts at a net asset value of $1.00 per share, and maintains a weighted average maturity of 60 days
or less and a weighted average life of 120 days or less. TexPool has a redemption notice period of one day and
investors may redeem daily. TexPool's authority may only impose restrictions on redemptions in the event of a
general suspension of trading on major securities markets, general banking moratorium, or national state of
emergency that affects TexPool's liquidity.
Note 4: Receivables
Amounts recorded as receivable for the primary government as of September 30, 2025 are as follows:
Capital Debt Service Nonmajor Utility Nonmajor
General Projects Fund Governmental Fund Proprietary Total
Property taxes $ 106,699 $ - $ 35,764 $ - $ - $ - $ 142,463
Sales taxes 1,003,892 - - - - - 1,003,892
Accounts 458,475 37,564 - 1,125 5,133,063 257,724 5,887,951
Interest - - - - 14,379 - 14,379
Due from other governments - - - 55,566 - - 55,566
Lease receivable 323,416 - - - - - 323,416
Less: Allowance - - - - (682,466) - (682,466)
Totals $ 1,892,482 $ 37,564 $ 35,764 $ 56,691 $ 4,464,976 $ 257,724 $ 6,745,201
The utility fund accounts receivable include unbilled charges for services rendered at September 30, 2025.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
51
Note 5. Capital, Lease and Subscription Assets
The following is a summary of changes in capital assets for governmental activities for the year ended September
30, 2025:
Governmental Activities
Beginning Adjustments/Ending
Balance Additions Deletions Transfers Balance
Capital Assets, not Being
Depreciated/Amortized
Land $ 5,185,089 $ 16,911,817 $ - $(1,436,513) $ 20,660,393
Construction in progress 77,004,026 22,220,788 - (3,129,572) 96,095,242
Total Capital Assets, not Being
Depreciated/Amortized 82,189,115 39,132,605 - (4,566,085) 116,755,635
Capital, Lease and Subscription Assets,
Being Depreciated/Amortized
Park improvements 17,077,304 - - 508,629 17,585,933
Buildings 41,132,177 36,582 - 1,664,726 42,833,485
Furniture and fixtures 1,176,231 - - - 1,176,231
Streets and drainage 89,443,261 15,499,971 - 956,217 105,899,449
Machinery and equipment 7,626,433 551,288 - - 8,177,721
Lease assets - vehicles 2,970,002 651,078 (834,148) - 2,786,932
Subscription assets - software
subscriptions 748,411 272,721 (78,947) - 942,185
Total Capital, Lease and Subscription
Assets Being Depreciated/Amortized 160,173,819 17,011,640 (913,095) 3,129,572 179,401,936
Less Accumulated Depreciation/
Amortization for
Park improvements 4,131,150 892,845 - - 5,023,995
Buildings 1,904,806 2,066,455 - - 3,971,261
Furniture and fixtures 135,665 117,627 - - 253,292
Streets and drainage 23,682,956 4,785,497 - - 28,468,453
Machinery and equipment 3,642,240 930,876 - - 4,573,116
Lease assets - vehicles 1,506,978 608,534 (834,148) - 1,281,364
Subscription assets - software
subscriptions 63,790 142,984 (78,947) - 127,827
Total Accumulated Depreciation/
Amortization 35,067,585 9,544,818 (913,095) - 43,699,308
Total Capital, Lease and Subscription
Assets Being Depreciated/Amortized, Net 125,106,234 7,466,822 - 3,129,572 135,702,628
Governmental Activities Capital, Lease
and Subscription Assets, Net $ 207,295,349 $ 46,599,427 $ - $(1,436,513) $ 252,458,263
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
52
Depreciation and amortization expense was charged to governmental functions as follows:
Governmental Activities
General government $ 97,658
Culture and recreation 973,229
Community services 20,976
Public safety 1,030,876
Public works 7,422,079
Total Depreciation and Amortization Expense -
Governmental Activities $ 9,544,818
The following is a summary of changes in capital assets for business-type activities for the year ended September
30, 2025:
Beginning Adjustments/
Balance Additions Deletions Transfers Ending Balance
Business-Type Activities
Capital assets, not being
depreciated/amortized
Land $ 10,292,844 $ 225,000 $ - $ 1,436,513 $ 11,954,357
Construction in progress 33,742,937 61,976,581 - (686,988) 95,032,530
Total capital assets, not being
depreciated/amortized 44,035,781 62,201,581 - 749,525 106,986,887
Capital, lease and
subscription assets, being
depreciated/amortized
Furniture and fixtures 5,620 16,014 - - 21,634
Buildings and
improvements 900,597 151,500 - - 1,052,097
Machinery and equipment 3,157,749 1,250,954 - - 4,408,703
Lease assets - vehicles 1,092,354 - (354,878) - 737,476
Subscription assets -
software subscriptions 78,947 - (78,947) - -
Water treatment system 44,396,415 12,395,638 - - 56,792,053
Stormwater drainage
system 45,758,813 11,553,717 - - 57,312,530
GTUA water
improvements 17,189,179 - - - 17,189,179
GTUA sewer
improvements 939,796 - - - 939,796
Water and sewer system 62,282,320 10,193,085 - 686,988 73,162,393
Total capital, lease and
subscription assets being
depreciated/amortized 175,801,790 35,560,908 (433,825) 686,988 211,615,861
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
53
Beginning Adjustments/Ending
Balance Additions Deletions Transfers Balance
Less accumulated
depreciation/amortization for
Furniture and fixtures 5,620 1,601 - - 7,221
Buildings and improvements 911,705 338,529 - - 1,250,234
Machinery and equipment 1,145,844 199,802 - - 1,345,646
Lease assets - vehicles 551,191 156,949 (354,878) - 353,262
Subscription assets -
software subscriptions 52,632 26,315 (78,947) - -
Water treatment system 8,370,729 2,440,536 - - 10,811,265
Stormwater drainage system 6,710,416 2,039,854 - - 8,750,270
GTUA water improvements 6,619,585 249,500 - - 6,869,085
GTUA sewer improvements 880,208 25,728 - - 905,936
Water and sewer system 11,454,684 1,470,765 - - 12,925,449
Total accumulated
depreciation/amortization 36,702,614 6,949,579 (433,825) - 43,218,368
Total capital, lease and
subscription assets being
depreciated/amortized, net 139,099,176 28,611,329 - 686,988 168,397,493
Business-Type Activities
Capital, Lease and
Subscription Assets, Net $ 183,134,957 $ 90,812,910 $ - $ 1,436,513 $ 275,384,380
Depreciation and amortization expense was charged to business-type functions as follows:
Water and sewer $ 6,949,579
Total Depreciation and Amortization Expense - Business-Type Activities $ 6,949,579
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
54
The following is a summary of changes in capital assets for the discretely presented component units for the year
ended September 30, 2025:
Beginning Adjustments/
Balance Additions Deletions Transfers Ending Balance
Community Development Corporation
Capital assets, not being
depreciated/amortized
Land $ 3,955,385 $ - $ - $ - $ 3,955,385
Total capital assets, not being
depreciated/amortized 3,955,385 - - - 3,955,385
Community Development Corporation
Capital Assets, Net $ 3,955,385 $ - $ - $ - $ 3,955,385
Beginning Adjustments/
Balance Additions Deletions Transfers Ending Balance
Economic Development Corporation
Capital assets, being depreciated/
amortized
Buildings and improvements $ 661,828 $ - $ - $ - $ 661,828
Total depreciable assets 661,828 - - - 661,828
Less accumulated depreciation for
Buildings and improvements 487,305 32,731 - - 520,036
Total accumulated depreciation 487,305 32,731 - - 520,036
Economic Development Corporation
Capital Assets, Net $ 174,523 $(32,731) $ - $ - $ 141,792
Beginning Adjustments/
Balance Additions Dispositions Transfers Ending Balance
Housing Finance Corporation
Capital assets, not being
depreciated/amortized
Land $ 1,443,404 $ - $ - $ - $ 1,443,404
Total capital assets, not being
depreciated/amortized 1,443,404 - - - 1,443,404
Housing Finance Corporation
Capital Assets, Net $ 1,443,404 $ - $ - $ - $ 1,443,404
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
55
Remaining commitments under related construction contracts for general government and utility construction
projects at year end were as follows:
Approved Stored and
Construction Completed to Remaining
Projects Activity Type Budget Date Commitment
CP - Ferguson Parkway General Government $ 2,110,254 $ 2,093,254 $ 17,000
Fire Engine No.3 General Government 1,500,000 1,483,120 16,880
Community Library General Government 22,000,000 19,190,246 2,809,754
Municipal Complex Plaza General Government 3,800,000 2,148,002 1,651,998
Draxxon Drone Trailer General Government 270,244 - 270,244
Bryant Park Improvements General Government 928,000 180,326 747,674
Slayter Creek Park Facility Improvements General Government 1,557,750 96,834 1,460,916
Trails - Pecan Grove Trail General Government 1,500,500 1,497,293 3,207
Anna Crossing Park General Government 5,256,440 439,722 4,816,718
Natural Springs Park - Dog Park Irrigation General Government 175,000 4,800 170,200
Wayfinding Signs General Government 79,290 50,285 29,005
Hurricane Creek Wastewater Treatment Plant Utility 100,000,000 70,763,281 29,236,719
Hurricane Creek Line Interceptor North Utility 18,522,594 7,698,641 10,823,953
Throckmorton Lift Station Utility 558,800 27,000 531,800
Leonard Avenue General Government 4,200,000 4,015,926 184,074
Riggins Street Pavement & Drainage Improvements General Government 551,368 - 551,368
Gateway Signs on US 75 General Government 54,970 16,729 38,241
SH 5 Utility Relocation - Project A Utility 3,489,023 2,255,699 1,233,324
FM455 Water Line Utility 4,727,100 1,088,137 3,638,963
SH 5 Utility Relocation - Project B Utility 1,500,000 509,677 990,323
Quail Creek Run Water Line Utility 457,946 - 457,946
Collin Pump Station Ground Storage Tank No. 2 Utility 12,079,888 10,142,781 1,937,107
4th Street Pavement Improvements Utility 571,702 - 571,702
Rosamon Parkway Improvement General Government 13,850,000 - 13,850,000
Total $ 199,740,869 $ 123,701,753 $ 76,039,116
The remaining commitments above will be primarily financed through completion of construction with the
resources of the capital projects funds, supplemented by the general fund and issuance of debt, as needed.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
56
Note 6: Long-term Liabilities
The following is a summary of changes in the City's total long-term liabilities for the year ended September 30,
2025. In general, the City uses the general and debt service funds to liquidate governmental long-term liabilities.
Amounts Due
Beginning Ending Within One
Balance Additions Reductions Balance Year
Governmental Activities
Bonds, notes and other payables:
General obligation refunding
bonds $ 8,478,000 $ - $(529,000) $ 7,949,000 $ 1,240,000
General obligation bonds 47,190,000 - (780,000) 46,410,000 549,000
Combination tax and revenue
certificates of obligation 40,595,000 29,575,000 (240,000) 69,930,000 250,000
Combination tax and revenue
refunding bonds 265,000 - (25,000) 240,000 25,000
Arbitrage liability - 1,466,260 - 1,466,260 -
Financed purchases 413,561 - (96,852) 316,709 101,084
Lease liability 1,607,426 651,078 (523,519) 1,734,985 528,524
Subscription liability 26,306 - (26,306) - -
Unamortized premiums 4,731,604 881,899 (280,918) 5,332,585 -
Total bonds, notes and other payables, net 103,306,897 32,574,237 (2,501,595) 133,379,539 2,693,608
Other liabilities:
Compensated absences 1,445,821 138,185 - 1,584,006 158,401
Net pension liability 2,122,439 - (278,434) 1,844,005 -
Total other postemployment
benefit liability 101,174 7,457 - 108,631 -
Total Governmental Activities $ 106,976,331 $ 32,719,879 $(2,780,029) $ 136,916,181 $ 2,852,009
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
57
Amounts Due
Beginning Ending Within One
Balance Additions Reductions Balance Year
Business-Type Activities
Bonds, notes and other payables:
Combination tax and revenue
certificates of obligation $ 78,770,000 $ 52,700,000 $(1,310,000) $ 130,160,000 $ 1,660,000
Combination tax and revenue -
refunding bonds 4,987,000 - (645,000) 4,342,000 492,000
General obligation refunding bonds 2,820,000 - (20,000) 2,800,000 25,000
Arbitrage liability - 1,882,719 - 1,882,719 -
Financed purchases 704,902 - (182,193) 522,709 186,607
Lease liability 585,489 - (138,093) 447,396 134,311
Subscription liability 26,306 - (26,306) - -
Unamortized premiums 2,079,870 1,567,820 (209,149) 3,438,541 -
Total bonds, notes and other
payables, net 89,973,567 56,150,539 (2,530,741) 143,593,365 2,497,918
Other liabilities:
Compensated absences 225,377 - (21,430) 203,947 20,395
Net pension liability 404,111 - (53,013) 351,098 -
Total other postemployement
benefit liability 19,252 1,419 - 20,671 -
Total Business-Type Activities $ 90,622,307 $ 56,151,958 $(2,605,184) $ 144,169,081 $ 2,518,313
Amounts Due
Beginning Ending Within One
Balance Additions Reductions Balance Year
Component Units - CDC
Bonds, notes and other
payables:
Sales tax revenue bonds $ 2,270,000 $ - $(135,000) $ 2,135,000 $ 150,000
Notes payable 2,105,650 2,359,136 (2,455,650) 2,009,136 133,331
Sales tax notes payable 1,712,354 - (75,564) 1,636,790 80,617
Total bonds, notes and other
payables, net 6,088,004 2,359,136 (2,666,214) 5,780,926 363,948
Other liabilities:
Compensated absences 19,639 1,022 - 20,661 2,066
Net pension liability 60,962 - (7,998) 52,964 -
Total other postemployment -
benefit liability 2,906 214 - 3,120 -
Total Component Units - CDC $ 6,171,511 $ 2,360,372 $(2,674,212) $ 5,857,671 $ 366,014
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period
and, accordingly, are not reported as fund liabilities in the governmental funds. The governmental activities
compensated absences, total OPEB liability, and net pension liability are generally liquidated by the general fund.
Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when
due.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
58
Long-term debt at year end was comprised of the following debt issues:
Description Interest Rates Balance
Governmental Activities
General obligation refunding bonds
Series 2014B 2.23 - 2.40% $ 214,000
Series 2021 2.00-5.00% 7,735,000
Total general obligation refunding bonds 7,949,000
General obligation bonds
Series 2022 4.00-5.00% 31,480,000
Series 2023 4.00-5.00% 14,930,000
Total general obligation bonds 46,410,000
Combination tax and revenue certificates of obligation
Series 2018 3.00-4.00 % 29,760,000
Series 2024 4.00-6.00% 10,835,000
Series 2025 5.00% 29,335,000
Total combination tax and revenue certificates of obligation 69,930,000
Combination tax and revenue refunding bonds
Series 2017 2.00 - 4.00 % 240,000
Total combination tax and revenue refunding bonds 240,000
Financed purchases
2018 Pierce Enforcer Fire Apparatus 3.86% 159,600
2024 Servers 4.90% 157,109
Total financed purchases 316,709
Total Governmental Activities Long-Term Debt $ 124,845,709
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
59
Description Interest Rates Balance
Business-Type Activities
Combination tax & revenue certificates of obligation
Series 2014 2.00 - 3.65 % $ 3,315,000
Series 2022 4.00 - 5.00 % 62,570,000
Series 2024 4.00 - 6.00 % 11,575,000
Series 2025 5.00% 52,700,000
Total combination tax & revenue certificates of obligation 130,160,000
Combination tax and revenue refunding bonds
Series 2014A 3.15 - 3.60% 332,000
Series 2017 2.00 - 4.00 % 4,010,000
Total combination tax and revenue refunding bonds 4,342,000
General obligation refunding bonds
Series 2021 2.00-5.00 % 2,800,000
Total general obligation refunding bonds 2,800,000
Financed purchases
2017 AMI Meters 2.00% 289,640
2021 Sewer Cleaner Truck 3.73% 233,069
Total financed purchases 522,709
Total Business-Type Activities Long-Term Debt $ 137,824,709
Description Interest Rates Balance
Component Units
Sales Tax Revenue Bonds
CDC - Sales Tax Revenue Bonds - Series 2012B 3.30% $ 870,000
CDC - Sales Tax Revenue Bonds - Series 2016 1.90% - 4.50% 1,265,000
Total sales tax revenue bonds 2,135,000
Notes payable
CDC - Notes Payable 5.15% - 6.88% 2,009,136
CDC - Sales Tax Notes Payable 6.25% 1,636,790
Total notes payable 3,645,926
Total CDC Long-Term Debt $ 5,780,926
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
60
The annual requirements to amortize general obligation bonds, certificates of obligation outstanding, and sales tax
revenue bonds at year end were as follows:
Governmental Activities
General Obligation Refunding Combination Tax and
Bonds & General Obligation Revenue Certificates of Combination Tax and
Year Ending Bonds Obligation Revenue Refunding Bonds
September 30,Principal Interest Principal Interest Principal Interest
2026 $ 1,789,000 $ 2,306,263 $ 250,000 $ 1,698,428 $ 25,000 $ 9,100
2027 2,035,000 2,219,925 435,000 1,724,000 75,000 7,100
2028 2,025,000 2,131,650 810,000 1,708,125 75,000 4,100
2029 2,125,000 2,034,650 870,000 1,683,125 65,000 1,300
2030 2,235,000 1,925,650 1,700,000 1,653,750 - -
2031-2035 12,990,000 7,812,750 9,815,000 7,261,475 - -
2036-2040 16,305,000 4,484,234 12,260,000 5,344,125 - -
2041-2045 11,430,000 1,417,866 20,650,000 2,874,700 - -
2046-2050 3,425,000 186,519 23,140,000 579,500 - -
Total $ 54,359,000 $ 24,519,507 $ 69,930,000 $ 24,527,228 $ 240,000 $ 21,600
Business-Type Activities
Combination Tax and Combination Tax and
Revenue Certificates of Revenue Refunding General Obligation
Obligation Certificates of Obligation Refunding Bonds
September 30,Principal Interest Principal Interest Principal Interest
2026 $ 1,660,000 $ 6,102,835 $ 492,000 $ 163,176 $ 25,000 $ 134,725
2027 2,295,000 5,904,006 370,000 146,600 330,000 125,850
2028 2,395,000 5,803,306 380,000 131,600 355,000 108,725
2029 2,510,000 5,690,994 565,000 112,700 375,000 90,475
2030 2,620,000 5,566,170 605,000 89,300 395,000 71,225
2031-2035 17,665,000 25,604,161 1,930,000 116,600 1,320,000 89,875
2036-2040 26,485,000 20,228,109 - - - -
2041-2045 33,065,000 13,641,509 - - - -
2046-2050 41,465,000 5,247,084 - - - -
Total $ 130,160,000 $ 93,788,174 $ 4,342,000 $ 759,976 $ 2,800,000 $ 620,875
CDC
Year Ending Sales Tax Revenue Bonds Sales Tax Notes Payable Notes Payable
September 30,Principal Interest Principal Interest Principal Interest
2026 $ 150,000 $ 86,013 $ 80,617 $ 104,871 $ 133,331 $ 100,950
2027 170,000 81,050 86,008 99,479 138,887 95,394
2028 190,000 75,390 91,760 93,728 144,819 89,462
2029 210,000 68,950 97,896 87,591 101,151 83,130
2030 235,000 61,730 104,443 81,044 107,911 76,370
2031-2035 905,000 178,515 636,808 290,630 597,723 287,607
2036-2040 275,000 27,675 539,258 63,578 785,314 110,460.00
Total $ 2,135,000 $ 579,323 $ 1,636,790 $ 820,921 $ 2,009,136 $ 843,373
Total matured and unmatured bonds outstanding related to special assessment and special tax districts are
$72,636,000 at September 30, 2025. The City acts as an agent for the property owners in collecting special
assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, when appropriate,
and are not an obligation of the City. The City is not liable for repayment of the special district bonds, and
accordingly, they are not reflected in accompanying basic financial statements. Cash held on deposit and
corresponding amounts payable for the districts are reported in the Public Improvement District Custodial Fund.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
61
In fiscal year 2025, the City issued $82,275,000 of Combination Tax and Revenue Certificates of Obligation bonds,
Series 2025 dated July 8, 2025 with a premium of approximately $2.4 million bearing an interest rate of 5.0%. The
Bonds will be used for the purpose of i) constructing acquiring an equipping a new police station; ii) acquiring,
constructing, installing, and equipping additions, improvements, extensions, and equipment for the City's sewer
system, including the Hurricane Cree Regional Wastewater Treatment Plant and related infrastructure
improvements, and the acquisition of land and interest in land as necessary therefor; and iii) legal, fiscal and
engineering fees in connection with such projects.
In fiscal year 2025, the CDC refinanced its outstanding note. The new notes were issued in the form of two
different series. $1,442,382 of Sales Tax Note, Series A was issued on September 12, 2025 bearing an interest
rate of 5.15%. $916,754 of Sales Tax Note, Series B was issued on September 12, 2025 bearing an interest rate
of 6.88%. The refinancing was to achieve debt savings, and the CDC also paid a lump sum payment of $500,000
on the Series B note to reduce the principal balance.
Financed Purchases
On November 28, 2016, the City entered into a financed purchase to finance the acquisition of water meters which
is payable from the Utility Fund.
On October 9, 2018, the City entered into a lease agreement as lessee for financing the acquisition of a fire
apparatus which is payable from the General Fund. This lease agreement qualifies as a financed purchase for
accounting purposes and, therefore, has been recorded at the present value of their future minimum lease
payments as of the inception date.
On October 13, 2020, the City entered into a finance agreement for the acquisition of a Vactor Combination Sewer
Cleaner Truck. The financed purchase is payable from the Utility Fund.
On February 3, 2023, the City entered into a financed purchase to finance the acquisition of servers which is
payable from the General Fund.
The assets acquired through financed purchases as of September 30, 2025 are as follows:
Governmental Activities Business-type Activities
Assets
Fire apparatus $ 485,068 $ -
Servers 250,000 -
Water meters - 1,340,010
Sewer cleaner truck - 441,360
Less: Accumulated depreciation (430,682)(1,042,947)
Total $ 304,386 $ 738,423
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
62
The future minimum lease obligations and the net present value of these minimum lease payments as of
September 30, 2025 are as follows:
Year Ending September 30,Governmental Activities Business-type Activities
2026 $ 114,933 $ 201,214
2027 114,933 201,214
2028 114,933 52,035
2029 - 52,035
2030 - 52,035
2031-2032 - -
Total minimum future lease payments 344,799 558,533
Less:amount representing interest (28,090)(35,824)
Present value of minimum lease payments $ 316,709 $ 522,709
Lease Liability
The City has entered into multiple lease agreements as lessee. The leases allow the right-to-use vehicles over the
term of the lease. The City is required to make monthly payments at its incremental borrowing rate or the interest
rate stated or implied within the leases.
The lease rate, term and ending lease liability are as follows:
Interest Rate Lease Term in Years Ending Balance
Governmental Activities
Vehicles Various 5 $ 1,734,985
Total Governmental Activities $ 1,734,985
Business-Type Activities
Vehicles Various 5 $ 447,396
Total Business-Type Activities $ 447,396
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
63
The future principal and interest lease payments as of fiscal year end are as follows:
Year Ending September 30,Governmental Activities Business-type Activities
2026 $ 647,898 $ 164,396
2027 579,431 158,494
2028 460,077 128,919
2029 263,269 65,194
2030 50,203 -
Total minimum future lease payments 2,000,878 517,003
Less: amount representing interest (265,893)(69,607)
Present value of minimum lease payments $ 1,734,985 $ 447,396
The value of the lease assets as of the end of the current fiscal year was $2,786,932 with accumulated
amortization of $1,281,364 for the governmental activities, and $737,476 with accumulated amortization of
$353,262 for the business-type activities.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
64
Note 7. Interfund Balances and Activity
Interfund balances during the year were as follows:
Receivable Fund Payable Fund Amounts
General Fund Nonmajor Governmental Funds $ 141,650
Total $ 141,650
Interfund balances for the Nonmajor Governmental Fund is created by short-term deficiencies in cash position in
the individual fund. It is anticipated that the balances will be repaid in one year or less.
Transfers between funds during the year were as follows:
Transfers Out Transfers In Amounts Reason
General Fund Capital Projects Fund $ 3,925,000 Future infrastructure investments
PID Capital Projects Funds Nonmajor Governmental Funds 208,739 PID fees earned during the year
Total $ 4,133,739
Note 8. Defined Benefit Pension Plan
Plan Description
The City and one of its component units participate as one of over 900 plans in the defined benefit cash-balance
plan administered by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for employees of Texas
participating cities. The TMRS Act places the general administration and management of TMRS with a six-
member, Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State of Texas.
TMRS issues a publicly available Annual Comprehensive Financial Report (Annual Report) that can be obtained at
tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of
the City, within the options available in the state statutes governing TMRS.
At retirement, the member’s benefit is calculated based on the sum of the member’s contributions with interest,
the city-financed monetary credits with interest, and their age at retirement and other actuarial factors. The retiring
member may select one of seven monthly benefit payment options. Members may also choose to receive a
portion of their benefit as a lump sum distribution in an amount equal to 12, 24 or 36 monthly payments, which
cannot exceed 75% of the total member contributions and interest. The plan provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS and with the actuarial
constraints also in the statutes.
City of Anna, Texas
Notes To Basic Financial Statements
September 30, 2025
65
The plan provisions are adopted by City were as follows:
2025
Employee deposit rate 7.00%
Matching ratio (City to employee)2 to 1
Years required for vesting 5
Service requirement eligibility 60/5, 0/20
(expressed as age/years of service)100% Repeating
Updated service credit Transfers
Annuity increase (to retirees)70% of CPI Repeating
Employees Covered by Benefit Terms
At the December 31, 2024 valuation and measurement date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 24
Inactive employees entitled to but not yet receiving benefits 107
Active employees 187
Total 318
Contributions
Member contribution rates in TMRS are either 5%, 6% or 7% of the Member’s total compensation, and the City
matching percentages are either 100%, 150% or 200%, both as adopted by the governing body of the city. Under
the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the
Entry Age Normal (EAN) actuarial cost method. The city’s contribution rate is based on the liabilities created from
the benefit plan options selected by the city and any changes in benefits or actual experience over time.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The
contribution rates for the City were 14.25% and 14.60% in calendar years 2024 and 2025, respectively. The City’s
contributions to TMRS for the year ended September 30, 2025, were $2,459,758, and were equal to the required
contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2024, and the Total Pension Liability
(TPL) used to calculate the NPL was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The total pension liability in the December 31, 2024 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 2.75% per year, adjusted down for population declines, if any
Investment rate of return 6.75%, net of pension plan investment expense, including inflation
City of Anna, Texas
Notes To Basic Financial Statements
September 30, 2025
66
Salary increases are based on a service-related table. Mortality rates for active members are based on the
PUB(10) mortality tables with 110% of the Public Safety table used for males and 100% of the General Employee
table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019
Municipal Retirees for Texas mortality tables. Male rates are multiplied by 103% and female rates are multiplied by
105%. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by the
most recent Scale MP-2021 to account for future mortality improvements. For disabled annuitants, the same
mortality tables for healthy retirees are used with a 4-year set-forward for males and a 3-year set- forward for
females. In addition a 3.5% and 3.0% minimum mortality rate is applied, for males and females, respectively, to
reflect the impairment for younger members who become disabled. The rates are projected on a fully generational
basis by the most recent Scale MP-2021 to account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS
over the four-year period from December 31, 2018 to December 31, 2022. The assumptions were adopted in 2023
and first used in the December 31, 2023 actuarial valuation. The post-retirement mortality assumption for Annuity
Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and
dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital
appreciation as well as as the production of income to satisfy the short-term and long-term funding needs of
TMRS.
The long-term expected rate of return on pension plan investments was determined by best estimate ranges of
expected returns for each major asset class. The long-term expected rate of return is determined by weighting the
expected return for each major asset class by the respective target asset allocation percentage.The target
allocation and best estimates of the expected return for each major asset class in fiscal year 2025 are
summarized in the following table:
Long-term Expected
Real Rate of Return
Asset Class Target Allocation (Arithmetic)
Global Equity 35.0%7.10%
Core Fixed Income 6.0%5.00%
Non-Core Fixed Income 6.0%6.80%
Hedge Funds 5.0%6.40%
Private Equity 13.0%8.50%
Private Debt 13.0%8.20%
Real Estate 12.0%6.70%
Infrastructure 6.0%6.00%
Other Private Markets 4.0%7.30%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that member and employee contributions will be made at the rates specified
in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to
make all projected future benefit payments of current active and inactive members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the Total Pension Liability.
City of Anna, Texas
Notes To Basic Financial Statements
September 30, 2025
67
Changes in Net Pension Liability
At September 30, 2025, the City reported the following changes in net pension liability.
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension Liability
Liability (a)Position (b)(a) - (b)
Balance at December 31, 2023 $ 19,755,190 $ 17,228,640 2,526,550
Changes for the year:
Service cost 2,962,866 - 2,962,866
Interest 1,423,984 - 1,423,984
Difference between expected and actual
experience 187,129 - 187,129
Contributions - employer - 2,081,894 (2,081,894)
Contributions - employee - 1,022,685 (1,022,685)
Net investment income (loss) - 1,812,646 (1,812,646)
Benefit payments, including refunds of employee
contributions (427,876)(427,876) -
Administrative expense - (11,530) 11,530
Other changes - (269) 269
Net changes 4,146,103 4,477,550 (331,447)
Balance at December 31, 2024 $ 23,901,293 $ 21,706,190 $ 2,195,103
At September 30, 2025, the component unit reported the following changes in net pension liability.
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension Liability
Liability (a)Position (b)(a) - (b)
Balance at December 31, 2023 $ 551,795 $ 490,833 $ 60,962
Changes for the year:
Service cost 71,489 - 71,489
Interest 34,358 - 34,358
Difference between expected and actual
experience 4,515 - 4,515
Contributions - employer - 50,233 (50,233)
Contributions - employee - 24,676 (24,676)
Net investment income (loss) - 43,736 (43,736)
Benefit payments, including refunds of employee
contributions (10,324)(10,324) -
Administrative expense - (278) 278
Other changes - (7) 7
Net changes 100,038 108,036 (7,998)
Balance at December 31, 2024 $ 651,833 $ 598,869 $ 52,964
Of the ending net pension liability balance, $2,195,103 and $52,964 was allocated to the primary government and
the discretely presented component unit, Community Development Corporation, respectively.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
68
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate
The following presents the net pension liability/(asset) of the City and its component unit, calculated using the
discount rate of 6.75%, as well as what the City and its component unit’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%)
than the current rate:
1% Decrease in 1% Increase in Discount
DIscount Rate (5.75%)Discount Rate (6.75%)Rate (7.75%)
City's net pension liability/(asset) $ 6,756,922 $ 2,195,103 $(1,422,590)
Component unit's net pension liability/(asset) 163,033 52,964 (34,325)
Total $ 6,919,955 $ 2,248,067 $(1,456,915)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in a separately-issued TMRS
financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended September 30, 2025, the City recognized pension expense of $2,400,937 and the component
unit recognized pension expense of $57,931.
At September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual economic experience $ 572,505 $ 27,212
Changes in actuarial assumptions 19,456 -
Difference between projected and actual investment earnings - 332,949
Contributions subsequent to the measurement date 1,792,708 -
Total $ 2,384,669 $ 360,161
At September 30, 2025, the component unit reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual economic experience $ 13,814 $ 657
Changes in actuarial assumptions 467 -
Difference between projected and actual investment earnings - 8,033
Contributions subsequent to the measurement date 43,255 -
Total $ 57,536 $ 8,690
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
69
$1,835,963 reported as deferred outflows of resources related to pensions resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability for the year ending
September 30, 2026. Of the deferred outflows of resources total, $2,384,669 and $57,536 was allocated to the
primary government and discretely presented component unit, respectively. Of the deferred inflows of resources
total, $360,161 and $8,690 was allocated to the primary government and discretely presented component unit,
respectively. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
Fiscal Year City Component Unit
2026 $ 155,652 $ 3,756
2027 253,221 6,110
2028 (133,775)(3,228)
2029 (80,010)(1,931)
2030 29,518 712
Thereafter 7,194 172
Total $ 231,800 $ 5,591
Note 9. Other Postemployment Benefits Plan
Plan Description
The City contributes to a single-employer defined benefit OPEB plan, the group-term life insurance plan known as
the SDBF. This is a voluntary program administered by the Texas Municipal Retirement System (TMRS) in which
the City elected, by ordinance, to provide group term life insurance coverage to active and retired members. The
City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before
November 1 of any year to be effective the following January 1. As the SDBF covers both active and retiree
participants, with no segregation of assets, the SDBF is considered to be an unfunded OPEB plan (i.e. no assets
are accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement No. 75).
Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s
annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month
of death). The death benefit for retirees is considered another postemployment benefit (OPEB) and is a fixed
amount of $7,500.
Contributions
The member City contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation. The rate is based on the mortality and service experience of all employees covered by the SDBF and
the demographics specific to the workplace of the City. The funding policy for the SDBF program is to assure that
adequate resources are available to meet all death benefit payments for the upcoming year. As such, contributions
fund the covered active member and retiree deaths on a pay-as-you-go basis. Due to the SDBF being considered
an unfunded OPEB plan, benefit payments are treated as being equal to the City’s yearly contributions for retirees.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
70
At the December 31, 2024 valuation and measurement date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 19
Inactive employees entitled to but not yet receiving benefits 12
Active employees 187
Total 218
Accounting Policy
An irrevocable trust has not been established that meets the criteria in paragraph 4 of GASB Statement No. 75.
Therefore, the plan is not accounted for as a trust fund. The plan does not issue a separate financial report.
Actuarial Assumptions
Significant methods and assumptions used in the December 31, 2024 actuarial valuation are as follows:
Inflation 2.5% per year
Salary increases 3.60% to 11.85% including inflation
Discount rate 4.08% as of December 31, 2024 (3.77% as of December 31, 2023)
Retirees' share of benefit related costs $0
Administrative expenses All administrative expenses are paid through the Pension Trust and
accounted for under reporting requirements under GASB Statement No.
68
Rates - services retirees 2019 Municipal Retirees of Texas Mortality Tables. Male rates are
multiplied by 103% and female rates are multiplied by 105%. The rates
are projected on a fully generational basis by the most recent Scale
MP-2021 (with immediate convergence).
Mortality rates - disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year
set-forward for males and a 3 year set-forward for females. In addition,
a 3.5% and 3% minimum mortality rate will be applied to reflect the
impairment for younger members who become disabled for males and
females, respectively. The rates are projected on a fully generational
basis by the most recent Scale MP-2021 (with immediate convergence)
to account for future mortality improvements subject to the floor.
Note: The actuarial assumptions used in the December 31, 2024 valuation were based on the results of an
actuarial experience study for the period December 31, 2022.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
71
Total OPEB Liability
The City and the discretely presented component unit, Community Development Corporation, total OPEB liability
of $132,422 was measured as of December 31, 2024, and was determined by an actuarial valuation as of that
date. The total OPEB liability and related information are as follows for the City and the component unit at
September 30, 2025:
Total OPEB
Total OPEB Liability -
Liability - City Component Unit Total
Balance at December 31, 2023 $ 120,426 $ 2,906 $ 123,332
Changes for the year:
Service cost 18,992 459 19,451
Interest on Total OPEB Liability 4,870 118 4,988
Difference between expected and actual experience (4,728)(114)(4,842)
Changes of assumptions or other inputs (8,798)(213)(9,011)
Benefit payments (1,460)(36)(1,496)
Net changes 8,876 214 9,090
Balance at December 31, 2024 $ 129,302 $ 3,120 $ 132,422
Of the ending total OPEB liability, $129,302 and $3,120 was allocated to the primary government and discretely
presented component unit, respectively.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended September 30, 2025, the City recognized OPEB expense of $17,344 and the component unit
recognized OPEB expense of $420.
At September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related
to OPEB from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual experience $ 4,482 $ 28,637
Changes in actuarial assumptions and other inputs 23,484 52,700
Contributions made subsequent to the measurement date 13,508 -
Total $ 41,474 $ 81,337
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
72
At September 30, 2025, the component unit reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected and actual experience $ 108 $ 691
Changes in actuarial assumptions and other inputs 567 1,272
Contributions made subsequent to the measurement date 326 -
Total $ 1,001 $ 1,963
Benefit payments subsequent to the measurement date and before fiscal year-end of $13,834 will be recognized
as a reduction of the total OPEB liability in the year ending September 30, 2026. Of the deferred outflows of
resources total, $41,474 and $1,001 was allocated to the primary government and discretely presented
component unit, respectively. Of the deferred inflows of resources total, $81,337 and $1,963 was allocated to the
primary government and discretely presented component unit, respectively.
Other amounts reported as deferred outflows related to OPEB will be recognized in OPEB expense as follows:
Fiscal Year City Component Unit
2026 $(6,643) $(160)
2027 (6,898)(166)
2028 (6,498)(157)
2029 (10,129)(244)
2030 (11,597)(280)
Thereafter (11,606)(281)
Total $(53,371) $(1,288)
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate of 3.77%, as well as
what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point
lower (2.77%) or 1-percentage-point higher (4.77%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(2.77)%(3.77)%(4.77)%
City $ 160,683 $ 129,302 $ 105,512
Component Unit 3,884 3,120 2,550
$ 164,567 $ 132,422 $ 108,062
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
73
Note 10. Villages of Hurricane Creek Public Improvement District
On November 13, 2018, the City of Anna City Council approved Ordinance No. 2018-01-506 authorizing the
creation of a Public Improvement District. The Hurricane Creek Public Improvement District consists of
approximately 368.20 acres within the jurisdictions of the city. This district was created in accordance with Chapter
372.003 of the Texas Local Government Code, as amended.
On March 28, 2019 the City of Anna City Council approved the issuance and sale of two Special Assessment
Revenue Bonds in the amounts of $7,735,000 and $3,535,000 known as Hurricane Creek Public Improvement
District Improvement Area #1 Project and Hurricane Creeks Public Improvement District Improvement Major
Improvement Area Project, respectively. These bonds were authorized in order to finance the projects benefiting
the entire Hurricane Creek Public Improvement District including certain roadway, water, sewer, and drainage
improvements.
On December 13, 2022, the City issued $10,550,000 of Special Assessment Revenue Bonds, Series 2022 known
as Hurricane Creek Public Improvement District Improvement Area #2 Project. Proceeds of these bonds will be
used to finance the projects benefiting Improvement Area #2 of the Hurricane Creek Public Improvement District.
Note 11. Sherley Tract Public Improvement District
On December 8, 2020, the City of Anna City Council approved Ordinance No. 2020-12-839 authorizing the
creation of a Public Improvement District. The Sherley Tract Public Improvement District consists of approximately
289.751 acres located in the extraterritorial jurisdiction of the city. This district was created in accordance with
Chapter 372.003 of the Texas Local Government Code, as amended.
On July 13, 2022, the City of Anna City Council approved the issuance and sale of two Special Assessment
Revenue Bonds in the amounts of $9,400,000 and $2,896,000 known as Sherley Tract Public Improvement
District No. 2 Improvement Area #1 Project and Sherley Tract Public Improvement District No. 2 Major
Improvement Area Project, respectively. These bonds were authorized in order to finance the projects benefiting
the entire Sherley Tract Public Improvement District No. 2 including certain roadway, water, sewer, and drainage
improvements.
Note 12. AnaCapri Public Improvement District
On April 12, 2022, the City of Anna City Council approved Resolution No. 2022-04-1140 authorizing the creation of
a Public Improvement District. The AnaCapri Public Improvement District consists of approximately 279.554 acres
located within the corporate limits of the city. This district was created in accordance with Chapter 372.003 of the
Texas Local Government Code, as amended.
On September 12, 2023, the City of Anna City Council approved the issuance and sale of Special Assessment
Revenue Bonds in the amount of $20,343,000 known as AnaCapri Public Improvement District Improvement Area
#1 Project. These bonds were authorized to finance the projects benefiting Improvement Area #1 of the AnaCapri
Public Improvement District including certain roadway, water, sewer, and drainage improvements.
City of Anna, Texas
Notes to the Financial Statements
September 30, 2025
74
Note 13. The Woods at Lindsey Place Public Improvement District
On February 14, 2023, the City of Anna City Council approved Resolution No. 2023-02-1378 authorizing the
creation of a Public Improvement District. The Woods at Lindsey Place Public Improvement District consists of
approximately 198.006 acres located within the corporate limits of the city. This district was created in accordance
with Chapter 372.003 of the Texas Local Government Code, as amended.
On September 12, 2023, the City of Anna City Council approved the issuance and sale of Special Assessment
Revenue Bonds in the amount of $7,419,000 known as The Woods at Lindsey Place Public Improvement District
Improvement Area #1 Project. These bonds were authorized to finance the projects benefiting Improvement Area
#1 of The Woods at Lindsey Place Public Improvement District including certain roadway, water, sewer, and
drainage improvements.
Note 14. Meadow Vista Public Improvement District
On September 26, 2023, the City of Anna City Council approved Resolution No. 2023-09-1558 authorizing the
creation of a Public Improvement District. The Meadow Vista Public Improvement District consists of
approximately 223.154 acres located within the corporate limits of the city. This district was created in accordance
with Chapter 372.003 of the Texas Local Government Code, as amended.
On June 9, 2024, the City of Anna City Council approved the issuance and sale of Special Assessment Revenue
Bonds in the amount of $12,806,000 known as the Meadow Vista Public Improvement District Improvement Area
#1 Project. These bonds were authorized to finance the projects benefiting Improvement Area #1 of the Meadow
Vista Public Improvement District including certain roadway, water, sewer, and drainage improvements.
Note 15. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; and natural disasters for which the City participates along with approximately 2,800 other entities in
the Texas Municipal League's Intergovernmental Risk Pools (the "Pool"). The Pool purchases commercial
insurance at group rates for participants in the Pool. The City has no additional risk or responsibility to the Pool,
outside of the payment of insurance premiums. The City has not significantly reduced insurance coverage or had
settlements that exceeded coverage amounts for the past three years.
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Required Supplementary Information
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City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund
For the Year Ended September 30, 2025
76
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Property taxes $ 13,093,602 $ 13,093,602 $ 12,936,501 $(157,101)
Sales taxes 5,220,000 5,220,000 6,632,670 1,412,670
Charges for services 1,000,000 1,000,000 1,898,270 898,270
License and permits 4,757,000 4,757,000 4,514,425 (242,575)
Fines and forfeitures 400,000 400,000 566,224 166,224
Franchise and local taxes 1,030,000 1,030,000 1,537,055 507,055
Investment income 800,000 800,000 839,636 39,636
Other revenues - - 189,630 189,630
Intergovernmental - - 57,380 57,380
Contributions and donations - - 4,750 4,750
Total Revenues 26,300,602 26,300,602 29,176,541 2,875,939
Expenditures
Current
General government 6,770,349 6,770,349 7,433,148 (662,799)
Culture and recreation 2,135,046 2,135,046 2,809,671 (674,625)
Community services 706,174 706,174 1,343,904 (637,730)
Public safety 13,706,860 13,706,860 14,233,820 (526,960)
Public works 2,938,847 2,938,847 1,285,245 1,653,602
Debt service
Principal - - 646,677 (646,677)
Interest and fiscal charges - - 149,443 (149,443)
Capital outlay - - 944,263 (944,263)
Total Expenditures 26,257,276 26,257,276 28,846,171 (2,588,895)
Excess (Deficiency) of Revenues
Over (Under) Expenditures 43,326 43,326 330,370 287,044
Other Financing Sources (Uses)
Transfers out (800,000)(800,000)(3,925,000)(3,125,000)
Issuance of leases and subscriptions - - 651,078 651,078
Proceeds from sale of capital assets - - 151,494 151,494
Total Other Financing Sources (Uses)(800,000)(800,000)(3,122,428)(2,322,428)
Net Change in Fund Balance (756,674)(756,674)(2,792,058)(2,035,384)
Beginning Fund Balance 17,681,023 17,681,023 17,681,023 -
Ending Fund Balance $ 16,924,349 $ 16,924,349 $ 14,888,965 $(2,035,384)
City of Anna, Texas
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios - TMRS
Last Ten Measurement Periods
77
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total Pension Liability
Service cost $ 3,034,355 $ 2,575,484 $ 2,179,066 $ 1,689,215 $ 1,282,488 $ 1,008,055 $ 860,365 $ 698,771 $ 608,067 $ 527,867
Interest 1,458,342 1,217,083 973,142 789,622 665,239 546,834 464,692 398,225 343,924 309,015
Changes of benefit terms - - - - - - - - - -
Differences between expected
and actual experience 191,644 (41,017) 633,772 301,846 31,578 294,521 13,331 (9,109)(60,518)(110,141)
Change of assumptions - 28,396 - - - 47,825 - - - 19,349
Benefit payments, including refunds
of employee contributions (438,200)(432,148)(308,348)(305,245)(374,666)(185,961)(204,657)(163,326)(101,394)(109,637)
Net change in total pension liability $ 4,246,141 $ 3,347,798 $ 3,477,632 $ 2,475,438 $ 1,604,639 $ 1,711,274 $ 1,133,731 $ 924,561 $ 790,079 $ 636,453
Total pension liability - beginning $ 20,306,985 $ 16,959,187 $ 13,481,555 $ 11,006,117 $ 9,401,478 $ 7,690,204 $ 6,556,473 $ 5,631,912 $ 4,841,833 $ 4,205,380
Total Pension Liability - Ending (a) $ 24,553,126 $ 20,306,985 $ 16,959,187 $ 13,481,555 $ 11,006,117 $ 9,401,478 $ 7,690,204 $ 6,556,473 $ 5,631,912 $ 4,841,833
Plan Fiduciary Net Position
Contributions - employer $ 2,132,127 $ 1,835,718 $ 1,497,200 $ 1,240,283 $ 927,155 $ 747,632 $ 618,080 $ 516,066 $ 442,230 $ 386,733
Contributions - employee 1,047,361 913,292 772,327 616,181 460,616 356,743 298,589 249,306 217,388 194,478
Net investment income (loss) 1,856,382 1,610,122 (938,459) 1,300,777 631,955 991,697 (175,951) 641,130 257,535 4,915
Benefit payments, including refunds
of employee contributions (438,200)(432,148)(308,348)(305,245)(374,666)(185,961)(204,657)(163,326)(101,394)(109,637)
Administrative expense (11,808)(10,163)(8,072)(5,991)(4,073)(5,580)(3,389)(3,315)(2,902)(2,992)
Other (276)(71) 9,632 41 (158)(168)(176)(169)(156)(148)
Net change in plan fiduciary net position 4,585,586 3,916,750 1,024,280 2,846,046 1,640,829 1,904,363 532,496 1,239,692 812,701 473,349
Plan fiduciary net position - beginning 17,719,473 13,802,723 12,778,443 9,932,397 8,291,568 6,387,205 5,854,709 4,615,017 3,802,316 3,328,967
Plan Fiduciary Net Position - Ending (b) $ 22,305,059 $ 17,719,473 $ 13,802,723 $ 12,778,443 $ 9,932,397 $ 8,291,568 $ 6,387,205 $ 5,854,709 $ 4,615,017 $ 3,802,316
Net Pension Liability - Ending (a)-(b) $ 2,248,067 $ 2,587,512 $ 3,156,464 $ 703,112 $ 1,073,720 $ 1,109,910 $ 1,302,999 $ 701,764 $ 1,016,895 $ 1,039,517
Plan fiduciary net position as a percentage of total
pension liability 90.84%87.26%81.39%94.78%90.24%88.19%83.06%89.30%81.94%78.53%
Covered payroll $ 14,962,305 $ 13,047,032 $ 11,033,246 $ 8,802,581 $ 6,580,234 $ 5,096,334 $ 4,265,561 $ 3,561,515 $ 1,194,348 $ 2,778,260
Net Pension Liability as a Percentage
of Covered Payroll 15.02%19.83%28.61%7.99%16.32%21.78%30.55%19.70%85.14%37.42%
City of Anna, Texas
Required Supplementary Information
Schedule of Employer Contributions to Pension Plan - TMRS
Last Ten Fiscal Years
78
2024 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined
contribution $ 2,459,758 $ 2,030,652 $ 1,772,903 $ 1,434,265 $ 1,094,001 $ 906,255 $ 701,932 $ 592,188 $ 490,248 $ 444,631
Contributions in relation
to the actuarially
determined contribution 2,459,758 2,030,652 1,772,903 1,434,265 1,094,001 906,255 701,932 592,188 490,248 444,631
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Covered payroll $ 16,952,596 $ 14,297,097 $ 12,629,182 $ 10,388,515 $ 7,764,378 $ 6,373,692 $ 4,798,511 $ 4,086,822 $ 3,396,686 $ 3,140,567
Contributions as a
percentage of covered payroll 14.51%14.20%14.04%13.81%14.09%14.22%14.63%14.49%14.43%14.16%
1. GASB 68, paragraph 81.2.b requires that the data in this schedule be presented as of the City's fiscal year as opposed to the time period covered by the
measurement date.
City of Anna, Texas
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios - TMRS
Last Eight Measurement Periods
79
2024 2023 2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service cost $ 19,451 $ 18,266 $ 28,686 $ 24,647 $ 16,451 $ 9,173 $ 8,958 $ 6,767
Interest (on the Total
OPEB Liability) 4,988 4,643 3,205 3,019 2,584 2,306 1,996 1,716
Change of benefit terms - - - - - - - -
Differences between
expected and actual
experience (4,842)(10,576)(15,859)(10,814) 11,180 (964)(3,622) -
Changes in assumptions
or other inputs (9,011) 6,143 (68,636) 6,365 23,878 18,247 (5,341) 5,334
Benefit payments (1,496)(1,305)(2,207)(1,761)(658)(510) - -
Net change in total
OPEB liability 9,090 17,171 (54,811) 21,456 53,435 28,252 1,991 13,817
Total OPEB liability -
beginning $ 123,332 $ 106,161 $ 160,972 $ 139,516 $ 86,081 $ 57,829 $ 55,838 $ 42,021
Total OPEB Liability - Ending 1 $ 132,422 $ 123,332 $ 106,161 $ 160,972 $ 139,516 $ 86,081 $ 57,829 $ 55,838
Covered-employee
payroll $ 14,962,305 $ 13,047,032 $ 11,033,246 $ 8,802,581 $ 6,580,234 $ 5,096,334 $ 4,265,563 $ 3,561,515
Total OPEB liability as a percentage
of covered-employee payroll 0.89%0.95%0.96%1.83%2.12%1.69%1.36%1.57%
1. This schedule is presented to illustrate the requirement to show information for 10 years. However,
recalculations of prior years are not reported in accordance with the standard of GASB 74/75 and should not be
shown here. Therefore, only years for which the new GASB statements have been implemented have been shown
and ultimately ten years will be presented.
2. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan; therefore,
no plan fiduciary net position and related ratios are reported in the above schedule.
City of Anna, Texas
Required Supplementary Information
Schedule of OPEB Contributions - TMRS
Last Eight Fiscal Years
80
2025 2024 2023 2022 2021 2020 2019 2018
Actuarially determined
contribution $ 20,838 $ 22,874 $ 1,592 $ 2,078 $ 7,636 $ 8,286 $ 6,238 $ 4,496
Contributions in relation
to the actuarially
determined contribution 20,838 22,874 1,592 2,078 7,636 8,286 6,238 4,496
Contribution deficiency
(excess) $ - $ - $ - $ - $ - $ - $ - $ -
Covered-employee
payroll $ 16,952,596 $ 14,297,097 $ 12,629,182 $ 10,388,515 $ 7,764,378 $ 6,373,692 $ 4,798,511 $ 4,086,822
Contributions as a
percentage of covered-
employe payroll 0.12%0.16%0.01%0.02%0.10%0.13%0.13%0.11%
1. This schedule is presented to illustrate the requirement to show information for 10 years. However,
recalculations of prior years are not reported in accordance with the standard of GASB 74/75 and should not be
shown here. Therefore, only years for which the new GASB statements have been implemented have been shown
and ultimately ten years will be presented.
This Page Left Intentionally Blank
Combining and Individual Fund
Financial Statements
and Schedules
This Page Left Intentionally Blank
Nonmajor Governmental Funds
Special Revenue Funds Descriptions
Roadway Impact Fee Service Area 1
Accounts for revenue and expenditures from developer impact fees for future strategic roadway improvements for
service area 1.
Roadway Impact Fee Service Area 2
Accounts for revenue and expenditures from developer impact fees for future strategic roadway improvements for
service area 2.
State Police Seizure Fund
Accounts for state revenues generated from property seized in connection with illegal activity once the property is
forfeited after prosecution that can only be used in accordance with applicable state laws.
Fire Department Capital Improvement Fund
Accounts for fees negotiated with developers in support of the Anna Fire Department for fire capital projects.
Park Development Fund
Accounts for park development fees from developer agreements or the subdivision ordinance in support of the
City’s parks master plan.
Grant Fund
Accounts for the proceeds and expenditures relating to all grants.
Road Capital Development Agreement Fund
Accounts for negotiated developer agreements for road and street impact fees.
Tax Increment Reinvestment Zone Numbers 2, 3, 4, 5, and 6
Accounts for financing resources to pay for infrastructure costs to facilitate the mixed-use development projects.
PID Fee Fund
Accounts for the proceeds and expenditures relating to various PID agreements.
Other Special Revenue Fund
Accounts for all other miscellaneous restricted funds not described in other special revenue funds.
82
83
City of Anna, Texas
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2025
Roadway
Impact Fee
SVC Area 1
Roadway
Impact Fee
SVC Area 2
State Police
Seizure Fund
Fire Dept.
Capital Impr.
Fund
Park
Development
Fund
Assets
Cash and cash equivalents $8,073,161 $1,432,725 $16,469 $105,746 $4,246,949
Receivables, net -----
Prepaids ----74,734
Restricted cash -----
Total Assets $8,073,161 $1,432,725 $16,469 $105,746 $4,321,683
Liabilities
Accounts payable and other liabilities $191,278 $530,415 $-$-$113,870
Accrued salaries ----4,914
Due to other funds -----
Total Liabilities 191,278 530,415 --118,784
Fund Balances (Deficit)
Nonspendable
Prepaids ----74,734
Restricted for
Public safety --16,469 105,746 -
Capital projects 7,881,883 902,310 --4,128,165
Unassigned -----
Total Fund Balances (Deficit)7,881,883 902,310 16,469 105,746 4,202,899
Total Liabilities and Fund Balances
(Deficit)$8,073,161 $1,432,725 $16,469 $105,746 $4,321,683
84
Grant Fund
Road Capital
Development
Agreement
Fund TIRZ 2 TIRZ 3 TIRZ 4 TIRZ 5 TIRZ 6 PID Fee Fund
$-$3,303,455 $-$-$-$-$-$3,277,638
55,566 -------
--------
--572,370 195,011 222,687 21,112 279,225 986,813
$55,566 $3,303,455 $572,370 $195,011 $222,687 $21,112 $279,225 $4,264,451
$-$2,820,543 $-$-$-$-$-$25,146
--------
141,650 -------
141,650 2,820,543 -----25,146
--------
--------
-482,912 572,370 195,011 222,687 21,112 279,225 4,239,305
(86,084)-------
(86,084)482,912 572,370 195,011 222,687 21,112 279,225 4,239,305
$55,566 $3,303,455 $572,370 $195,011 $222,687 $21,112 $279,225 $4,264,451
This Page Left Intentionally Blank
85
City of Anna, Texas
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2025
Other Special
Revenue
Fund
Total
Nonmajor
Governmental
Funds
Assets
Cash and cash equivalents $350,139 $20,806,282
Receivables, net 1,125 56,691
Prepaids -74,734
Restricted cash -2,277,218
Total Assets $351,264 $23,214,925
Liabilities
Accounts payable and other liabilities $-$3,681,252
Accrued salaries -4,914
Due to other funds -141,650
Total Liabilities -3,827,816
Fund Balances (Deficit)
Nonspendable
Prepaids -74,734
Restricted for
Public safety 351,264 473,479
Capital projects -18,924,980
Unassigned -(86,084)
Total Fund Balances (Deficit)351,264 19,387,109
Total Liabilities and Fund Balances
(Deficit)$351,264 $23,214,925
86
City of Anna, Texas
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
For the Year Ended September 30, 2025
Roadway
Impact Fee
SVC Area 1
Roadway
Impact Fee
SVC Area 2
State Police
Seizure Fund
Fire Dept.
Capital Impr.
Fund
Park
Development
Fund
Revenues
Property taxes $-$-$-$-$-
Charges for services 2,546,559 1,186,571 -17,200 1,626,602
Fines and forfeitures -----
Investment income (loss)165,075 53,719 311 6,248 127,818
Other revenues ----2,776
Intergovernmental -----
Total Revenues 2,711,634 1,240,290 311 23,448 1,757,196
Expenditures
Current
General government -----
Culture and recreation ----1,155,012
Public safety --500 15,690 -
Public works 196,213 424,512 ---
Capital outlay -1,107,878 -138,256 489,096
Total Expenditures 196,213 1,532,390 500 153,946 1,644,108
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,515,421 (292,100)(189)(130,498)113,088
Other Financing Sources (Uses)
Transfers in -----
Sale of general capital assets ----24,800
Total Other Financing Sources (Uses)----24,800
Net Change in Fund Balances 2,515,421 (292,100)(189)(130,498)137,888
Fund Balances (Deficit), Beginning of
Year 5,366,462 1,194,410 16,658 236,244 4,065,011
Fund Balances (Deficit), End of Year $7,881,883 $902,310 $16,469 $105,746 $4,202,899
87
Grant Fund
Road Capital
Development
Agreement
Fund TIRZ #2 TIRZ #3 TIRZ #4 TIRZ #5 TIRZ #6
$-$-$388,519 $128,996 $217,803 $5,654 $146,039
-------
-------
(37,435)87,814 -----
-------
51,173 ------
13,738 87,814 388,519 128,996 217,803 5,654 146,039
5,000 ------
-------
1,222 ------
36,934 -246,560 135 9,438 --
-------
43,156 -246,560 135 9,438 --
(29,418)87,814 141,959 128,861 208,365 5,654 146,039
-------
-------
-------
(29,418)87,814 141,959 128,861 208,365 5,654 146,039
(56,666)395,098 430,411 66,150 14,322 15,458 133,186
$(86,084)$482,912 $572,370 $195,011 $222,687 $21,112 $279,225
This Page Left Intentionally Blank
88
City of Anna, Texas
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
For the Year Ended September 30, 2025
PID Fee Fund
Other Special
Revenue Fund
Total
Nonmajor
Governmental
Funds
Revenues
Property taxes $-$-$887,011
Charges for services --5,376,932
Fines and forfeitures -15,140 15,140
Investment income (loss)84,494 8,156 496,200
Other revenues 2,106,300 48,126 2,157,202
Intergovernmental --51,173
Total Revenues 2,190,794 71,422 8,983,658
Expenditures
Current
General government 51,745 3,258 60,003
Culture and recreation --1,155,012
Public safety --17,412
Public works --913,792
Capital outlay --1,735,230
Total Expenditures 51,745 3,258 3,881,449
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,139,049 68,164 5,102,209
Other Financing Sources (Uses)
Transfers in 208,739 -208,739
Sale of general capital assets --24,800
Total Other Financing Sources (Uses)208,739 -233,539
Net Change in Fund Balances 2,347,788 68,164 5,335,748
Fund Balances (Deficit), Beginning of
Year 1,891,517 283,100 14,051,361
Fund Balances (Deficit), End of Year $4,239,305 $351,264 $19,387,109
City of Anna, Texas
Balance Sheet - CDC
Community Development Corporation
September 30, 2025
89
Anna Community
Development
Corporation
ASSETS
Cash and cash equivalents $ 12,489,582
Receivables, net 602,900
Prepaid expenses 12,194
Total Assets $ 13,104,676
LIABILITIES
Accounts payable $ 182,018
Accrued liabilities 10,171
Total Liabilities 192,189
FUND BALANCES
Restricted for:
Community Development 12,912,487
Total Fund Balances 12,912,487
Total Liabilities and Fund Balances $ 13,104,676
City of Anna, Texas
Reconciliation of the Balance Sheet
to the Statement of Net Position - CDC
Community Development Corporation
September 30, 2025
90
Total Fund Balance $ 12,912,487
Amounts reported in the statement of net position are different because:
Capital assets reported in the government-wide financials are not financial resources and,
therefore, are not reported in the fund financial statements. 3,955,385
The following deferred outflows of resources and deferred inflows of resources are not
reported in the fund financial statements:
Deferred outflows of resources - OPEB 1,001
Deferred outflows of resources - pension 57,536
Deferred inflows of resources - OPEB (1,963)
Deferred inflows of resources - pension (8,690)
Long-term liabilities, including bonds and notes payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
Long-term liabilities consist of:
Sales tax revenue bonds (2,135,000)
Notes payable (2,009,136)
Sales tax notes payable (1,636,790)
Compensated absences (20,661)
Accrued interest payable (34,027)
Total OPEB liability (3,120)
Net pension liability (52,964)
Total Net Position $ 11,024,058
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balance - CDC
Community Development Corporation
For the Year Ended September 30, 2025
91
Anna Community
Development
Corporation
Revenues
Sales taxes $ 3,979,602
Contributions 27
Investment income 596,854
Miscellaneous 16,950
Total Revenues 4,593,433
Expenditures
Current:
Community and economic development 1,515,497
Debt service:
Principal retirement 917,329
Interest and fiscal charges 297,033
Total Expenditures 2,729,859
Excess of Revenues Over Expenditures 1,863,574
Other Financing Sources (Uses)
Issuance of notes payable 2,359,136
Payment to escrow agent for refunded notes payable (1,748,885)
Total Other Financing Sources 610,251
Change in Fund Balance 2,473,825
Fund Balance, Beginning of Year 10,438,662
Fund Balance, End of Year $ 12,912,487
City of Anna, Texas
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities - CDC
Community Development Corporation
For the Year Ended September 30, 2025
92
Net Change in Fund Balance $ 2,473,825
Amounts reported in the statement of activities are different because:
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing
debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt
principal is an expenditure in the governmental funds, but repayment reduces long-term liabilties in
the Statement of Net Position
Principal payments on bonds and notes payable 917,329
Payment to escrow agent for refunded notes payable 1,748,885
Notes payable issued (2,359,136)
Some expenses reported in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in the fund financial statements.
Change in accrued interest payable 11,029
Change in compensated absences (1,022)
Change in net pension liability and related deferred inflows and outflows 19
Change in total OPEB liability and related deferred inflows and outflows (455)
Change in Net Position $ 2,790,474
City of Anna, Texas
Balance Sheet - EDC
Economic Development Corporation
September 30, 2025
93
Anna Economic
Development
Corporation
ASSETS
Cash and cash equivalents $ 6,529,599
Total Assets $ 6,529,599
LIABILITIES
Accounts payable $ 8,749
Total Liabilities 8,749
FUND BALANCES
Restricted for:
Economic Development 6,520,850
Total Fund Balances 6,520,850
Total Liabilities and Fund Balances $ 6,529,599
City of Anna, Texas
Reconciliation of the Balance Sheet
to the Statement of Net Position - EDC
Economic Development Corporation
September 30, 2025
94
Total Fund Balance $ 6,520,850
Amounts reported in the statement of net position are different because:
Capital assets used in and reflected in the government-wide financials are not financial
resources and, therefore, are not reported in the fund financial statements. 141,792
Total Net Position $ 6,662,642
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balances - EDC
Economic Development Corporation
For the Year Ended September 30, 2025
95
Anna Economic
Development
Corporation
Revenues
Charges for services $ 86,820
Investment income 299,210
Total Revenues 386,030
Expenditures
Current:
Community and economic development 18,737
Total Expenditures 18,737
Net Change in Fund Balance 367,293
Fund Balance, Beginning of Year 6,153,557
Fund Balance, End of Year $ 6,520,850
City of Anna, Texas
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities - EDC
Economic Development Corporation
For the Year Ended September 30, 2025
96
Net Change in Fund Balance $ 367,293
Amounts reported in the statement of activities are different because:
Depreciation is not recognized as an expense in fund financial statements since it does not
require the use of current financial resources.(32,731)
Change in Net Position $ 334,562
City of Anna, Texas
Statement of Net Position - HFC
Housing Finance Corporation
September 30, 2025
97
Anna Housing
Finance
Corporation
ASSETS
Cash and cash equivalents $ 693,642
Receivables, net 915
Capital assets:
Non-depreciable 1,443,404
Total Assets $ 2,137,961
LIABILITIES
Accounts payable $ 915
Total Liabilities 915
Deferred Inflows of Resources
Deferred inflows - land lease 1,389,944
Total Deferred Inflows of Resources 1,389,944
NET POSITION
Net investment in capital assets 1,443,404
Unrestricted (696,302)
Total Net Position 747,102
Total Liabilities, Deferred Inflows of Resources,
and Net Position $ 2,137,961
City of Anna, Texas
Statement of Revenues, Expenses, and Changes in Net Position - HFC
Housing Finance Corporation
For the Year Ended September 30, 2025
98
Anna Housing
Finance
Corporation
Operating Revenues
Charges for services $ 14,580
Investment income 30,926
Other revenues 30,300
Total Operating Revenues 75,806
Operating Expenses
Community and economic development 8,271
Total Operating Expenses 8,271
Operating Income 67,535
Change in Net Position 67,535
Net Position, Beginning of Year 679,567
Net Position, End of Year $ 747,102
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - CDC
Community Development Corporation
For the Year Ended September 30, 2025
99
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Sales and use tax $ 3,000,000 $ 3,000,000 $ 3,979,602 $ 979,602
Contributions - - 27 27
Investment earnings 40,000 40,000 596,854 556,854
Miscellaneous - - 16,950 16,950
Total Revenues 3,040,000 3,040,000 4,593,433 1,553,433
Expenditures
Current:
Community and economic development 2,280,400 2,280,400 1,515,497 764,903
Debt service:
Principal retirement 367,329 367,329 917,329 (550,000)
Interest and fiscal charges 271,412 271,412 297,033 (25,621)
Capital outlay 525,000 525,000 - 525,000
Total Expenditures 3,444,141 3,444,141 2,729,859 714,282
Excess (Deficiency) of Revenues
Over (Under) Expenditures (404,141)(404,141) 1,863,574 2,267,715
Other Financing Sources (Uses)
Issuance of notes payable - - 2,359,136 2,359,136
Payment for refunded notes payable - - (1,748,885)(1,748,885)
Total Other Financing Sources (Uses) - - 610,251 610,251
Net Change in Fund Balance (404,141)(404,141) 2,473,825 2,877,966
Fund Balance, Beginning of Year 10,438,662 10,438,662 10,438,662 -
Fund Balance, End of Year $ 10,034,521 $ 10,034,521 $ 12,912,487 $ 2,877,966
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - EDC
Economic Development Corporation
For the Year Ended September 30, 2025
100
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Charges for services $ 78,120 $ 78,120 $ 86,820 $ 8,700
Investment income 150,000 150,000 299,210 149,210
Total Revenues 228,120 228,120 386,030 157,910
Expenditures
Current:
Community and economic development 524,800 524,800 18,737 506,063
Total Expenditures 524,800 524,800 18,737 506,063
Net Change in Fund Balance (296,680)(296,680) 367,293 663,973
Fund Balance, Beginning of Year 6,153,557 6,153,557 6,153,557 -
Fund Balance, End of Year $ 5,856,877 $ 5,856,877 $ 6,520,850 $ 663,973
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Debt Service Fund
For the Year Ended September 30, 2025
101
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Property taxes $ 5,446,556 $ 5,446,556 $ 5,619,509 $ 172,953
Investment income 4,000 4,000 86,613 82,613
Total Revenues 5,450,556 5,450,556 5,706,122 255,566
Expenditures
Debt service:
Principal 1,574,000 1,574,000 1,574,000 -
Interest and fiscal charges 4,178,056 4,178,056 4,098,364 79,692
Total Expenditures 5,752,056 5,752,056 5,672,364 79,692
Net Change in Fund Balance (301,500)(301,500) 33,758 335,258
Fund Balances, Beginning of Year 455,746 455,746 455,746 -
Fund Balances, End of Year $ 154,246 $ 154,246 $ 489,504 $ 335,258
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Grant Fund
For the Year Ended September 30, 2025
102
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Intergovernmental $ - $ - $ 51,173 $ 51,173
Investment income (loss) 35,000 35,000 (37,435)(72,435)
Total Revenues 35,000 35,000 13,738 (21,262)
Expenditures
General government - - 5,000 (5,000)
Public safety - - 1,222 (1,222)
Public works - - 36,934 (36,934)
Capital outlay 2,357,871 2,357,871 - 2,357,871
Total Expenditures 2,357,871 2,357,871 43,156 2,314,715
Net Change in Fund Balance (2,322,871)(2,322,871)(29,418) 2,293,453
Fund Balances (Deficit), Beginning of Year (56,666)(56,666)(56,666) -
Fund Balances (Deficit), End of Year $(2,379,537) $(2,379,537) $(86,084) $ 2,293,453
This Page Left Intentionally Blank
Statistical Section
(Unaudited)
This Page Left Intentionally Blank
Financial Trends
This Page Left Intentionally Blank
City of Anna, Texas
01 - Net Position by Component
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
105
2025 2024 2023 2022 2021 2019 2018 2017 2016
Governmental Activities
Net investment in capital assets $ 174,798,727 $ 164,115,311 $ 111,235,486 $ 81,252,418 $ 65,539,991 $ 33,525,898 $ 29,892,142 $ 20,398,968 $ 13,466,866
Restricted 25,077,858 6,326,639 17,188,894 19,668,553 18,360,546 10,681,098 469,607 1,489,057 1,550,067
Unrestricted 12,968,386 19,713,402 13,133,603 11,163,470 13,904,713 6,211,056 5,793,809 3,844,285 3,052,331
Total Governmental Activities Net Position $ 212,844,971 $ 190,155,352 $ 141,557,983 $ 112,084,441 $ 97,805,250 $ 50,418,052 $ 36,155,558 $ 25,732,310 $ 18,069,264
Business-Type Activities
Net investment in capital assets $ 175,005,096 $ 150,095,510 $ 92,309,877 $ 50,471,921 $ 41,835,760 $ 28,632,597 $ 25,064,065 $ 17,356,378 $ 12,878,858
Restricted 23,171,175 25,893,045 24,635,697 31,677,216 23,680,099 9,638,637 6,761,991 6,407,402 7,349,941
Unrestricted (deficit) 36,255,584 14,233,939 6,802,959 5,672,694 5,757,394 3,364,464 2,855,207 2,930,232 762,189
Total Business-Type Activities Net Position $ 234,431,855 $ 190,222,494 $ 123,748,533 $ 87,821,831 $ 71,273,253 $ 41,635,698 $ 34,681,263 $ 26,694,012 $ 20,990,988
Primary Government
Net investment in capital assets $ 349,803,823 $ 314,210,821 $ 203,545,363 $ 131,724,339 $ 107,375,751 $ 62,158,495 $ 54,956,207 $ 37,755,346 $ 26,345,724
Restricted 48,249,033 32,219,684 41,824,591 51,345,769 42,040,645 20,319,735 7,231,598 7,896,459 8,900,008
Unrestricted 49,223,970 33,947,341 19,936,562 16,836,164 19,662,107 9,575,520 8,649,016 6,774,517 3,814,520
Total Primary Government Net Position $ 447,276,826 $ 380,377,846 $ 265,306,516 $ 199,906,272 $ 169,078,503 $ 92,053,750 $ 70,836,821 $ 52,426,322 $ 39,060,252
1. Source: Annual Comprehensive Financial Report
City of Anna, Texas
02 - Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
106
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
EXPENSES
Governmental Activities
General government $ 7,794,867 $ 7,229,346 $ 6,641,449 $ 5,226,176 $ 3,538,746 $ 2,669,302 $ 1,954,083 $ 1,758,159 $ 1,405,085 $ 1,393,256
Culture and recreation 5,107,609 3,396,741 3,699,579 2,550,873 2,053,933 1,172,862 877,455 799,378 665,430 584,676
Community services 1,369,545 1,019,920 1,150,424 1,211,897 1,198,530 1,280,415 1,289,798 810,369 904,227 690,842
Public safety 15,540,437 13,092,102 9,893,153 9,915,219 6,221,473 5,074,735 3,972,445 3,730,871 3,062,333 2,727,997
Public works 9,885,719 7,968,688 7,110,793 3,303,741 4,169,132 3,176,361 4,113,592 2,013,096 1,502,775 1,261,514
Interest on long-term debt 5,897,518 5,966,633 4,008,129 1,483,176 2,212,316 1,258,204 2,420,375 670,789 132,433 174,446
Total Governmental Activities Expenses 45,595,695 38,673,430 32,503,527 23,691,082 19,394,130 14,631,879 14,627,748 9,782,662 7,672,283 6,832,731
Business-Type Activities
Water and sewer 40,639,264 30,640,255 26,319,170 16,353,389 13,462,054 11,152,513 11,664,343 8,893,526 7,443,593 7,371,352
Public Facility Corporation 14,750 14,150 35,167 - - - - - - -
Total Business-Type Activities Expenses 40,654,014 30,654,405 26,354,337 16,353,389 13,462,054 11,152,513 11,664,343 8,893,526 7,443,593 7,371,352
Total Primary Government Expenses $ 86,249,709 $ 69,327,835 $ 58,857,864 $ 40,044,471 $ 32,856,184 $ 25,784,392 $ 26,292,091 $ 18,676,188 $ 15,115,876 $ 14,204,083
PROGRAM REVENUES
Governmental Activities
Charges for services:
General government $ 1,486,381 $ 8,952,357 $ 6,888,879 $ 6,708,288 $ 4,281,147 $ 304,993 $ 236,673 $ 90,890 $ 136,465 $ 48,181
Culture and recreation 1,630,677 1,724,616 1,327,100 2,835,400 1,689,000 1,404,600 900,150 315,933 553,511 117,990
Public safety 1,056,291 201,027 154,691 674,627 182,859 2,644,933 16,995 94,244 49,950 768,988
Public works 3,750,330 62,664 48,220 14,473 5,353 21,648 666,873 641,119 382,390 129,914
Community services 4,447,312 5,751,509 2,432,795 3,274,193 1,641,273 895,585 1,314,178 873,397 1,173,516 236,694
Operating grants and contributions 298,195 186,855 437,051 75,963 527,376 616,207 182,943 4,225 351,482 333,948
Capital grants and contributions 22,934,971 55,832,509 24,639,756 8,977,439 30,267,739 13,181,867 15,179,885 9,338,204 6,489,958 -
Total Governmental Activities Program Revenues 35,604,157 72,711,537 35,928,492 22,560,383 38,594,747 19,069,833 18,497,697 11,358,012 9,137,272 1,635,715
Business-Type Activities
Charges for services:
Water and sewer 41,236,899 41,482,710 30,692,985 28,539,413 23,356,512 15,852,302 14,947,376 11,416,192 9,805,662 7,523,193
Public Facility Corporation 1,455,039 - 695,620 - - - - - - -
Operating grants and contributions 797,402 - - - - - - - - -
Capital grants and contributions:
Water and sewer 33,744,438 28,909,202 21,782,213 4,125,890 7,732,066 6,716,462 3,346,660 5,348,481 3,298,737 776,416
Public Facility Corporation - - 4,225,000 - - - - - - -
Total Business-Type Activities Program Revenues 77,233,778 70,391,912 57,395,818 32,665,303 31,088,578 22,568,764 18,294,036 16,764,673 13,104,399 8,299,609
Total Primary Government Program Revenues $ 112,837,935 $ 143,103,449 $ 93,324,310 $ 55,225,686 $ 69,683,325 $ 41,638,597 $ 36,791,733 $ 28,122,685 $ 22,241,671 $ 9,935,324
107
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Net (Expense) Revenue
Governmental activities $(9,991,538) $ 34,038,107 $ 3,424,965 $(1,130,699) $ 19,200,617 $ 4,437,954 $ 3,869,949 $ 1,575,350 $ 1,464,989 $(5,197,016)
Business-type activities 36,579,764 39,737,507 31,041,481 16,311,914 17,626,524 11,416,251 6,629,693 7,871,147 5,660,806 928,257
Total Primary Government Net Expense $ 26,588,226 $ 73,775,614 $ 34,466,446 $ 15,181,215 $ 36,827,141 $ 15,854,205 $ 10,499,642 $ 9,446,497 $ 7,125,795 $(4,268,759)
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental Activities
Taxes
Property taxes $ 19,461,308 $ 16,663,266 $ 13,553,404 $ 10,239,322 $ 8,714,860 $ 7,929,530 $ 6,728,848 $ 5,579,490 $ 4,619,461 $ 3,973,028
Sales taxes 6,632,670 5,382,238 4,345,553 3,847,911 2,929,876 2,271,318 1,835,421 1,502,079 1,203,749 1,542,309
Franchise taxes 1,537,055 1,315,462 1,063,275 888,723 726,006 657,331 612,332 573,517 505,571 447,498
Grants not restricted for a specific
purpose - 3,373,552 - - - - - - - -
Unrestricted investment earnings 3,963,511 5,470,612 3,444,880 244,855 123,643 568,920 1,044,444 327,200 26,199 31,816
Gain on sale of assets 176,294 72,730 - - - 20,111 135,910 276,970 - -
Miscellaneous revenue 2,346,832 2,854,738 98,315 189,079 62,859 70,560 84,132 314,750 241,719 166,773
Intergovernmental - - - - - - - 142,273 - -
Transfers (1,436,513)(20,573,336) 3,920,200 - - (326,387)(48,542) 159,500 - 108,556
Total Governmental Activities 32,681,157 14,559,262 26,425,627 15,409,890 12,557,244 11,191,383 10,392,545 8,875,779 6,596,699 6,269,980
Business-Type Activities
Unrestricted investment earnings 4,953,020 5,017,120 4,352,474 236,664 93,145 175,248 276,200 136,261 63,607 69,608
Gain on sale of assets 8,501 - - - - - - - - -
Miscellaneous revenue 1,231,563 1,145,998 173,910 - - - - 148,148 69,610 29,193
Transfers 1,436,513 20,573,336 (3,920,200) - - 326,387 48,542 (159,500) - (108,556)
Total Business-Type Activities 7,629,597 26,736,454 606,184 236,664 93,145 501,635 324,742 124,909 133,217 (9,755)
TOTAL PRIMARY GOVERNMENT $ 40,310,754 $ 41,295,716 $ 27,031,811 $ 15,646,554 $ 12,650,389 $ 11,693,018 $ 10,717,287 $ 9,000,688 $ 6,729,916 $ 6,260,225
CHANGE IN NET POSITION
Governmental activities $ 22,689,619 $ 48,597,369 $ 29,850,592 $ 14,279,191 $ 31,757,861 $ 15,629,337 $ 14,262,494 $ 10,451,129 $ 8,061,688 $ 1,072,964
Business-type activities 44,209,361 66,473,961 31,647,665 16,548,578 17,719,669 11,917,886 6,954,435 7,996,056 5,794,023 918,502
TOTAL PRIMARY GOVERNMENT $ 66,898,980 $ 115,071,330 $ 61,498,257 $ 30,827,769 $ 49,477,530 $ 27,547,223 $ 21,216,929 $ 18,447,185 $ 13,855,711 $ 1,991,466
CIty of Anna, Texas
03 - Fund Balances, Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
108
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General Fund
Nonspendable $ 181,368 $ 21,237 $ 73,049 $ - $ 12,961 $ 10,630 $ 7,242 $ - $ - $ -
Restricted 14,627 14,357 13,832 13,434 13,354 13,279 13,133 12,891 12,768 19,580
Committed - - - - - - 215,932 215,932 740,768 185,788
Assigned - - - - - - - - - -
Unassigned 14,692,970 17,645,429 13,766,350 9,949,599 6,545,930 6,421,607 5,705,117 4,484,943 3,741,504 3,114,627
Total General Fund $ 14,888,965 $ 17,681,023 $ 13,853,231 $ 9,963,033 $ 6,572,245 $ 6,445,516 $ 5,941,424 $ 4,713,766 $ 4,495,040 $ 3,319,995
All Other Governmental Funds
Nonspendable $ 883,026 $ 720,851 $ 47,407 $ - $ 559,947 $ 3,000 $ 1,000 $ - $ - $ -
Restricted 81,471,324 70,600,589 68,596,045 26,215,542 31,756,237 32,669,975 40,214,505 35,295,317 1,476,290 2,284,212
Committed - - - - - - - - - -
Assigned - - 186,405 2,538,722 5,537,514 - - - - -
Unassigned (86,084)(56,666) - - - (3,000)(112,518) - (7,694)(574,937)
Total All Other Governmental Funds $ 82,268,266 $ 71,264,774 $ 68,829,857 $ 28,754,264 $ 37,853,698 $ 32,669,975 $ 40,102,987 $ 35,295,317 $ 1,468,596 $ 1,709,275
1. Source: Annual Comprehensive Financial Report
City of Anna, Texas
04 - Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
109
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Revenues
Taxes $ 27,612,746 $ 23,362,643 $ 18,952,228 $ 14,867,757 $ 12,363,699 $ 10,898,111 $ 9,166,995 $ 7,592,708 $ 6,338,940 $ 5,965,724
Licenses, permits, and fees 4,514,425 5,944,535 5,782,000 5,752,179 4,159,517 2,683,906 1,331,173 824,186 1,115,294 711,462
Charges for services 7,275,202 7,687,928 4,989,037 7,504,874 3,514,109 2,488,443 1,716,265 1,113,856 1,106,620 -
Fines and forfeitures 581,364 469,710 445,357 249,928 129,265 97,374 87,431 77,541 73,918 84,360
Intergovernmental 293,445 6,822,173 71,767 72,913 526,766 123,195 93,190 142,273 185,392 287,614
Investment earnings 3,963,511 5,470,612 3,444,880 244,855 123,643 568,920 1,044,444 327,200 26,199 31,816
Other revenues 2,346,832 2,854,738 747,518 189,079 10,458,492 1,436,755 166,460 314,750 117,932 1,164,183
Contributions 4,750 34,731,772 12,005,222 3,050 4,330,711 475 9,823,637 4,225 351,482 -
Total Revenues $ 46,592,275 $ 87,344,111 $ 46,438,009 $ 28,884,635 $ 35,606,202 $ 18,297,179 $ 23,429,595 $ 10,396,739 $ 9,315,777 $ 8,245,159
Expenditures
Current
General government $ 7,725,990 $ 6,470,232 $ 6,190,616 $ 5,033,727 $ 3,388,774 $ 2,759,964 $ 1,918,254 $ 1,553,102 $ 1,339,668 $ 1,507,324
Culture and recreation 4,070,299 2,688,508 3,135,470 1,984,511 1,677,459 815,030 518,696 473,477 332,249 268,538
Community development 1,343,904 1,004,656 1,132,073 1,145,841 1,198,963 1,113,095 1,286,794 809,682 902,552 689,308
Public safety 14,398,286 12,032,263 9,208,813 7,105,755 5,875,398 4,827,758 3,721,752 3,649,049 2,842,470 2,509,795
Public works 2,461,558 2,567,544 2,899,529 645,027 1,239,676 857,730 2,166,360 541,968 463,780 539,049
Principal retirement 2,220,677 1,518,974 878,037 1,196,705 546,366 537,791 426,851 342,000 328,000 779,842
Interest and fiscal changes 4,247,807 3,815,439 2,865,698 1,579,307 1,327,404 1,344,730 2,589,974 71,273 97,376 182,942
Bond issuance costs 260,038 2,348,709 1,078,957 - 739,177 - - 443,009 - -
Capital outlay 32,936,553 61,500,585 29,042,375 19,059,410 22,938,256 12,994,384 5,414,720 1,771,045 565,974 1,094,445
Total Expenditures $ 69,665,112 $ 93,946,910 $ 56,431,568 $ 37,750,283 $ 38,931,473 $ 25,250,482 $ 18,043,401 $ 9,654,605 $ 6,872,069 $ 7,571,243
Excess of Revenues Over (Under)
Expenditures $(23,072,837) $(6,602,799) $(9,993,559) $(8,865,648) $(3,325,271) $(6,953,303) $ 5,386,194 $ 742,134 $ 2,443,708 $ 673,916
Other Financing Sources (Uses)
Transfers in $ 4,133,739 $ 3,095 $ 3,945,200 $ 295,428 $ 3,316,912 $ 1,979,606 $ 121,637 $ 1,455,713 $ 585,209 $ 298,419
Transfers (out)(4,133,739)(3,095)(25,000)(295,428)(3,316,912)(1,976,401)(170,179)(1,296,213)(585,209)(189,863)
Sale of capital assets 176,294 72,730 21,070 1,615,036 61,619 21,178 212,608 700,082 34,974 17,054
Bond Proceeds 29,575,000 10,835,000 47,395,000 - 8,460,000 - - 31,795,000 (23,350) -
Premium on debt issuance 881,899 725,831 2,475,096 - 834,153 - - 1,601,891 850,000 -
SBITA inception - - 78,947 - - - - - - -
Lease inception - - 446,087 1,541,966 - - - - - -
Lease issuance 651,078 1,231,949 - - - - 485,068 - - -
Payments to escrow agent - - - - (720,049) - - (953,160)(820,899) -
Total Other Financing Sources (Uses) $ 31,284,271 $ 12,865,510 $ 54,336,400 $ 3,157,002 $ 8,635,723 $ 24,383 $ 649,134 $ 33,303,313 $ 40,725 $ 125,610
Net Change in Fund Balance $ 8,211,434 $ 6,262,711 $ 44,342,841 $(5,708,646) $ 5,310,452 $(6,928,920) $ 6,035,328 $ 34,045,447 $ 2,484,433 $ 799,526
Debt Service as a Percentage of
Noncapital Expenditures 17.6%23.7%13.7%14.9%11.7%15.4%23.9%5.2%6.7%14.9%
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Revenue Capacity
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City of Anna, Texas
05 - Assessed Value and Estimated Value of Taxable Property
Last Ten Fiscal Years (Unaudited)
111
Estimated Market Value
Fiscal Real Personal Less: Tax Exempt Total Taxable Total Direct
Year Property Property Property Assessed Value Tax Rate
2016 817,578,552 27,290,010 236,173,968 608,694,594 0.63900
2017 941,525,839 32,134,958 247,017,901 726,642,896 0.62900
2018 1,173,598,307 40,865,863 303,651,595 910,812,575 0.60129
2019 1,440,753,873 51,949,576 352,310,696 1,140,392,753 0.59129
2020 1,630,573,659 61,071,756 381,187,399 1,310,458,016 0.59129
2021 1,799,674,320 62,835,654 383,180,540 1,479,329,434 0.58300
2022 2,101,621,383 70,991,511 397,019,088 1,775,593,806 0.56950
2023 3,085,141,844 81,446,456 685,309,530 2,481,278,770 0.53975
2024 4,107,353,218 90,021,257 929,458,294 3,267,916,181 0.51072
2025 4,271,247,063 111,951,937 518,788,296 3,864,410,704 0.50720
1. Source: Collin County Appraisal District
City of Anna, Texas
06 - Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (Unaudited)
112
CIty Direct Rates Overlapping Rates
Anna Collin County
Fiscal Debt Total Independent Collin Community Total
Year Operating Service Direct Rate School District County College District Rate
2016 0.53234 0.10666 0.639000 1.670000 0.225000 0.081960 2.61596
2017 0.50658 0.12242 0.629000 1.670000 0.208395 0.081222 2.58862
2018 0.47887 0.12242 0.601290 1.670000 0.192246 0.079810 2.54335
2019 0.42812 0.16317 0.591290 1.670000 0.180785 0.081222 2.52330
2020 0.45154 0.13975 0.591290 1.568350 0.174951 0.081222 2.41581
2021 0.46705 0.11595 0.583000 1.474600 0.172531 0.081222 2.31135
2022 0.45263 0.11687 0.569500 1.460300 0.168087 0.081222 2.27911
2023 0.39653 0.14322 0.539750 1.442900 0.152443 0.081220 2.21631
2024 0.36593 0.14479 0.510720 1.257500 0.149343 0.081220 1.99878
2025 0.36021 0.14699 0.507200 1.255200 0.149343 0.081220 1.99296
1. Source: Collin County Appraisal District
2. The entire city is located in Collin County and within the Anna Independent School District.
City of Anna, Texas
07 - Principal Property Taxpayers
Current Year and Nine Years Ago (Unaudited)
113
2025 2016
Taxable Percentage of Taxable Percentage of
Assessed Total City Assessed Total City
Taxpayer Value1 Assessed Valuation Taxpayer Value2 Assessed Valuation
Parmore Anna Holdings, LLC $ 40,219,565 1.23%Bloomfield Homes, LP $ 4,980,560 0.98%
Grand Anna Owner, LLC 30,155,973 0.92%PTCAA Texas, LP 3,964,474 0.78%
Anna Village Residential, LTD 23,686,317 0.72%Brookshire Grocery Company 3,882,746 0.76%
CZ GA I, LLC 22,483,397 0.69%LGI Homes - Oak Hollow Ph 6, LLC 3,729,354 0.73%
Megatel AnaCapri, LLC 18,130,862 0.55%Anna Eagle Retail, LP 3,705,247 0.73%
Wal-Mart Real Estate Business Trust 17,832,918 0.55%ARCP CV Anna TX, LLC 3,595,881 0.70%
MM Hurricane Creek FL 1, LLC 13,930,000 0.43%Hwy 75/Anna Property, LP 2,576,513 0.50%
DR Horton-Texas, LTD 11,969,945 0.37%Windmill Self Storage, LP 2,438,688 0.48%
HPI Self Storage Anna, LLC 11,438,409 0.35%Anna Market Center, LTD 2,308,699 0.45%
Oncor Electric Devliver Co, LLC 9,759,680 0.30%Brookshire Grocery Company 2,178,518 0.43%
Total $ 199,607,066 6.11% $ 33,360,680 6.54%
1.Source: Collin County Tax Collector
2.Taxpayers are assessed on January 1, 2024 (2024 tax year) for the 2025 fiscal year.
3.Taxpayers are assessed on January 1, 2015 (2015 tax year) for the 2016 fiscal year.
City of Anna, Texas
08 - Property Tax Levies and Collections
Last Ten Fiscal Years (Unaudited)
114
Collected within the
Actual Taxes Levied Total Fiscal Year of the Levy Collections Total Collections to Date
Fiscal Levy for the Adjusted Percentage in Subsequent Percentage
Year Year Fiscal Year Adjustments Levies Amount of Tax Levy Years Amount of Tax Levy
2016 2015 3,861,771 42,805 3,904,576 3,881,905 99.4% 22,671 3,904,576 100.0%
2017 2016 4,523,301 38,846 4,562,147 4,541,224 99.5% 20,923 4,562,147 100.0%
2018 2017 5,257,566 111,610 5,369,176 5,348,790 99.6% 20,386 5,369,176 100.0%
2019 2018 6,475,495 148,602 6,624,097 6,596,608 99.6% 27,489 6,624,097 100.0%
2020 2019 7,543,539 218,798 7,762,337 7,721,972 99.5% 40,365 7,762,337 100.0%
2021 2020 8,610,384 (5,193) 8,605,191 8,580,733 99.7% 24,458 8,605,191 100.0%
2022 2021 10,000,568 74,505 10,075,073 10,051,504 99.8% 23,569 10,075,073 100.0%
2023 2022 12,562,831 731,403 13,294,234 13,249,390 99.7% 44,844 13,294,234 100.0%
2024 2023 16,689,803 (200,185) 16,489,618 16,440,075 99.7% 49,543 16,489,618 100.0%
2025 2024 19,600,144 (314,323) 19,285,821 19,242,447 99.8% - 19,242,447 99.8%
1. Source: Collin County Tax Assessor
Debt Capacity
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City of Anna, Texas
09 - Ratios of Outstanding Debt by Type
Last Ten Fiscal Years (Unaudited)
116
Governmental Activities
General Obligation
Refunding Bonds &Combination Tax and Combination Tax and Unamortized
Fiscal General Obligation Revenue Certificates Revenue Refunding Financed Premiums
Year Bonds of Obligation Bonds Purchases Leases SBITAs (discounts)
2016 1,563,000 2,270,000 - 1,732,000 - -
2017 2,145,000 1,045,000 - - - -
2018 2,018,000 30,910,000 800,000 - - 1,517,551
2019 1,922,000 30,820,000 615,000 429,217 - 1,433,211
2020 1,815,000 30,620,000 425,000 388,426 - 1,348,872
2021 9,494,000 30,425,000 375,000 346,060 - 2,098,685
2022 9,243,000 30,210,000 335,000 302,059 895,262 1,980,979
2023 56,366,000 29,995,000 300,000 506,360 1,058,207 51,752 4,243,848
2024 55,668,000 40,595,000 265,000 413,562 1,607,426 26,306 4,731,604
2025 54,359,000 69,930,000 240,000 316,709 1,734,985 - 5,332,585
Business-type Activities
Combination Contract General Unamortized Total Percentage
Fiscal Tax & Revenue Revenue Obligation Financed Premiums Primary of Personal Per
Year Bonds & Certificates Bonds Bonds Purchases Leases SBITAs (Discounts)Government Income Capita
2016 12,359,000 13,140,000 - - - - 31,064,000 10.99% 2,744
2017 14,312,750 10,335,000 - 1,340,010 - 68,619 29,246,379 8.63% 2,360
2018 16,552,000 5,892,500 - 1,217,631 - 643,354 59,551,036 16.54% 4,350
2019 15,817,000 5,615,417 - 1,094,571 - 571,023 58,317,439 14.97% 3,885
2020 15,067,000 5,325,833 - 967,248 - 498,692 56,456,071 11.33% 3,376
2021 13,530,000 5,027,083 2,870,000 1,228,121 - 1,159,439 66,553,388 12.60% 3,736
2022 12,805,000 4,727,500 2,860,000 1,056,631 129,642 1,021,176 65,566,249 10.61% 3,239
2023 76,896,000 - 2,840,000 882,849 347,336 51,752 1,473,546 175,012,650 20.10% 7,304
2024 83,757,000 - 2,820,000 704,902 585,489 26,306 2,079,870 193,280,465 18.33% 6,947
2025 134,502,000 - 2,800,000 522,709 447,396 - 3,438,541 273,623,925 20.54% 8,172
City of Anna, Texas
10 - Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
117
Percentage of
Actual
General Obligation Combination Tax and Combination Tax and Taxable
Fiscal Refunding Bonds &Revenue Certificates of Revenue Refunding Value of Per
Year General Obligation Bonds Obligation Bonds Total4 Property2 Capita3
2016 1,563,000 2,270,000 12,359,000 16,192,000 2.65% 1,430
2017 2,145,000 1,045,000 12,212,619 15,402,619 2.41% 1,243
2018 2,018,000 30,910,000 800,000 33,728,000 5.63% 2,464
2019 1,922,000 30,820,000 615,000 33,357,000 4.39% 2,222
2020 1,815,000 30,620,000 425,000 32,860,000 3.66% 1,965
2021 9,494,000 30,425,000 375,000 40,294,000 3.83% 2,262
2022 9,243,000 30,210,000 335,000 39,788,000 3.12% 1,966
2023 56,366,000 29,995,000 300,000 86,661,000 6.71% 3,617
2024 55,668,000 40,595,000 265,000 96,528,000 5.60% 3,469
2025 54,359,000 69,930,000 240,000 124,529,000 3.22% 3,652
1.Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements.
2.See the Schedule of Assessed and Estimated Actual Value of Taxable Property for property value data.
3.Population data can be found in the Schedule of Demographic and Economic Statistics.
4.Bonds are payable from levy and collection of a direct and continuing ad valorem tax and from a pledge of surplus revenues from water and
sewer.
City of Anna, Texas
11 - Direct and Overlapping Governmental Activities Debt
As of September 30, 2025 (Unaudited)
118
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable2 Debt
Governmental Unit
Debt repaid with property taxes:
Collin County $ 982,755,000 1.64% $ 16,117,182
Collin College 438,250,000 1.64% 7,187,300
Anna ISD 444,228,846 86.68% 385,057,564
Blue Ridge ISD 60,640,000 0.06% 36,384
Subtotal, overlapping debt 408,398,430
City of Anna 100% 133,379,539
Total Direct and Overlapping Debt $ 541,777,969
1. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the
outstanding debt of those overlapping by the residents and businesses of the City of Anna, TX. This process recognizes that, when considering the City's
ability governments that is borne to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into
account. However, this does not imply that every taxpayer is a resident--and therefore responsible for repaying the debt--of each overlapping
government.
2. For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and
dividing it by each unit's total taxable assessed value.
3. Source: Net bonded debt and percentage of debt provided by Municipal Advisory of Texas
City of Anna, Texas
12 - Pledged-Revenue Coverage
Last Ten Fiscal Years (Unaudited)
119
Water Revenue Bonds
Less:Net
Fiscal Total Operating Available Debt Service Times
Year Revenues1 Expenses2 Revenue Principal Interest Coverage
2016 8,371,878 5,137,343 3,234,535 742,000 1,056,647 1.80
2017 9,938,880 6,490,261 3,448,619 772,500 1,028,814 1.91
2018 11,700,601 6,146,505 5,554,096 1,015,628 912,272 2.88
2019 15,822,376 8,582,049 7,240,327 1,131,810 1,903,394 2.39
2020 16,236,344 8,243,509 7,992,835 1,162,323 929,562 3.82
2021 21,201,248 13,091,569 8,109,679 1,203,119 759,885 4.13
2022 27,975,337 15,440,362 12,534,975 1,028,750 783,309 6.92
2023 32,388,817 20,626,544 11,762,273 1,070,250 3,146,795 2.79
2024 46,800,524 21,013,713 25,786,811 1,874,000 3,289,028 4.99
2025 41,347,566 26,886,924 14,460,642 1,955,000 4,407,604 2.27
1.Includes both operating and non-operating revenues.
2.Includes operating expenses minus depreciation.
3.Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Demographic and Economic Information
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City of Anna, Texas
13 - Demographic and Economic Statistics
Last Ten Fiscal Years (Unaudited)
121
Fiscal Personal Per Capita School Unemployment
Year Population1 Income Personal Income4 Enrollment3 Rate2
2016 $ 11,320 $ 282,705,680 $ 24,974 3,214 3.8%
2017 12,390 338,916,060 27,354 3,438 3.8%
2018 13,690 359,992,240 26,296 3,602 3.0%
2019 15,010 389,614,570 25,957 3,808 2.9%
2020 16,721 498,252,358 29,798 3,837 6.9%
2021 17,814 528,291,984 29,656 4,485 5.6%
2022 20,243 617,736,078 30,516 5,172 3.2%
2023 23,960 870,706,400 36,340 5,193 3.6%
2024 27,823 1,054,185,647 37,889 5,429 3.8%
2025 34,100 1,356,600,300 39,783 6,148 4.2%
1. Sources:
1 North Central Texas Council of Governements (NCTCOG)
2 State Department of Labor and homefacts.com
3 Anna Independent School District
4 U. S. Census Bureau American Fact Finder & North Central Texas Council of Governments (NCTCOG)
2. The requirement is for 10 years worth of data. The City will present a full 10 year schedule as the information becomes available. Areas where
information could not be obtained are listed as N/A.
City of Anna, Texas
14 - Principal Employers
Current Year and Nine Years Ago (Unaudited)
122
2025 2016
Percentage of Percentage of
No.Total City No.Total City
Employer Employees Employment Employer Employees Employment
Anna ISD 1,057 1.59%Anna ISD 333 18.55%
Walmart 453 0.68%Pate Rehab 162 9.03%
City of Anna 203 0.30%Brookshire's 118 6.57%
Pate Rehab 168 0.25%Bronco 68 3.79%
Texas Roadhouse 143 0.21%City of Anna 56 3.12%
Home Depot 134 0.20%Hurricane Creek Country Club 45 2.51%
Chick-Fil-A 97 0.15%Loves Travel Shop 45 2.51%
Brookshire's 94 0.14%McDonalds 40 2.23%
Loves Travel Shop 56 0.08%Tri-County Vet 31 1.73%
McDonalds 49 0.07%Wells McCoy 26 1.45%
Total 2,454 Total 924
1. Source: Top ten employers and employee count provided by Anna Economic Development Corporation.
2. Data not available for 2015 at the time of this publication. The City will present this information for future years' as the information becomes available.
Operating Information
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City of Anna, Texas
15 - Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years (Unaudited)
124
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General Government and Administration 27.5 26.0 26.0 23.0 21.0 23.5 23.5 15.5 12.5 13.5
Public Safety 88.0 83.5 68.5 59.0 51.0 37.0 33.0 28.0 24.0 22.0
Public Works 15.0 15.0 15.0 11.0 6.0 6.0 6.0 8.0 7.0 7.0
Culture and Recreation 27.5 20.5 21.0 17.5 17.9 8.4 7.0 10.0 4.0 4.0
Water and Sewer 31.0 31.0 31.0 27.0 24.0 16.0 16.0 13.0 11.0 8.0
Community Development 11.0 11.0 11.0 11.0 10.0 9.0 8.0 4.0 4.0 3.0
Economic Development 3.0 3.0 3.0 3.0 2.5 2.0 2.0 1.0 0.5 0.5
Total All Government Funds 203.0 190.0 175.5 151.5 132.4 101.9 95.5 79.5 63.0 58.0
1. Source: Finance and Human Resources Department
City of Anna, Texas
16 - Operating Indicators by Function/Program
Last Ten Fiscal Years
125
Function/Program 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General Government
Building permits issued-residential 765 856 859 1,059 1,125 833 579 342 440 273
Building permits issued-commercial 12 33 30 16 12 11 12 11 11 4
Building inspections conducted 24,260 23,070 19,044 21,294 16,917 5,020 15,416 14,718 16,046 9,474
Public Safety
Police
Physical arrests 411 441 364 428 325 253 357 428 337 311
Accident reports 331 310 307 305 363 265 323 336 265 261
Traffic stops 9,494 8,817 11,173 9,946 4,739 2,824 2,421 3,153 2,404 3,962
Fire
Emergency responses 3,025 2,733 2,468 2,284 2,286 1,851 1,783 1,703 1,502 1,234
Fires extinguished 91 51 84 120 100 74 81 59 19 79
Inspections 1,050 889 906 158 212 160 186 284 132 115
Highways and Streets
Street resurfacing (miles) - 1.0 2.8 8.5 4.2 3 2.0 1 - 1
Potholes repaired 1,600 2,200 1,233 942 1,947 2,000 1,100 1,250 940 3,900
Recreation
Reservations issued 163 175 112 111 162 376 156 164 92 53
Water and Sewer
Number of active accounts 12,021 11,562 10,209 9,274 8,043 7,300 5,979 5,470 5,102 4,935
Average daily consumption (gallons) wells 1,316,940 1,521,000 1,179,364 789,054 1,029,423 1,009,523 1,122,943 1,097,062 1,018,025 1,007,258
Average daily consumption (gallons)
GTUA/ NTMWD 2,480,206 1,749,000 1,990,603 1,983,782 2,428,800 1,169,030 1,025,503 679,857 679,857 355,970
1. Source: City Departments
2. Some data not available for 10 years at the time of this publication. The City will present this information for future years' as the information becomes
available.
City of Anna, Texas
17 - Capital Assets Statistics by Function/Program
Last Ten Fiscal Years (Unaudited)
126
Function 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Public Safety
Number of police stations 1 1 1 1 1 1 1 1 1 1
Number of patrol units 20 17 14 12 12 8 8 8 11 9
Number of fire stations 2 2 1 1 1 1 1 1 1 1
Streets and Grounds
Streets (miles) 186.00 174.00 150.0 130.0 130.0 100 74 68 65 50
Streetlights 2,160 2,500 2,500 1,200 1,200 1,090 908 800 625 570
Traffic signals 19 10 9 6 6 5 4 4 3 1
Recreation
Acreage 295.0 246.9 206.0 206.0 206.0 201 201 201 197 197
Playgrounds 9 6 5 5 5 4 3 2 2 2
Baseball/softball diamonds 6 6 6 6 6 6 6 6 6 7
Water and Sewer
Water mains (miles) 199 187 188 163 82 82 75 69 55 55
Fire hydrants 1,753 1,452 1,476 1,175 925 925 862 804 570 570
Storage capacity (millions of gallons) 8 4 3 3 3 3 3 3 3 3
Wastewater
Treatment capacity 10 10 9 9 9 9 9 9 9 9
Sanitary sewer (miles) 142 137 126 115 75 75 68 62 60 50
Storm sewers (miles) 110 103 85 85 65 65 60 57 55 50
1. Source: City Departments
2. Some data not available for 10 years at the time of this publication. The City will present this information for future years' as the information becomes
available.
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