HomeMy WebLinkAboutRes 2023-04-1426 Accepting FY2022 Audit ReportCITY OF ANNA, TEXAS
RESOLUTION NO. 42(0
A RESOLUTION ACCEPTING THE FISCAL YEAR 2022 FINANCIAL AUDIT OF THE
CITY OF ANNA.
WHEREAS, the City of Anna, Texas ("the City") is committed to principles and
practices of open and fair government that honors the public trust; and
WHEREAS, Article 7 Section 7.18 of the City's Home -Rule Charter ("the Charter")
requires an annual independent audit of all accounts of the City by a certified public
accountant.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The above -referenced recitals are incorporated herein as if set forth in full for all
purposes.
Section 2. Audit Accepted
The City Council has hereby accepted the FY 2022 audit attached hereto as Exhibit 1.
PASSED by the City Council of the City of Anna, Texas, on this the 25'h day of April,
2023.
THE CITY OF
Anna
City of Anna, Texas
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
nna
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
City of Anna, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Prepared by
The Finance Department
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Annual Comprehensive Financial Report or distributed
For the Fiscal Year Ended September 30, 2022
Table of Contents
Page
Introductory Section
Letter of Transmittal v
GFOA Certificate of Achievement x
Organizational Chart A
List of Elected Officials and Management xii
Financial Section
Independent Auditor's Report 3
Management's Discussion and Analysis 7
Basic Financial Statements
Government -Wide Financial Statements:
Statement of Net Position
19
Statement of Activities
20
Fund Financial Statements:
Balance Sheet - Governmental Funds
22
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
23
Statement of Revenues, Expenditures, and Changes in Fund Balances
24
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
25
Proprietary Fund Financial Statements
Statement of Net Position - Proprietary Fund
26
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund
28
Statement of Cash Flows - Proprietary Fund
29
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position - Custodial Fund
31
Statement of Fiduciary Revenues, Expenses, and Changes in Net Position - Custodial Fund
30
Notes to the Financial Statements
33
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget (GAAP Basis) and Actual - General Fund 73
Schedule of Changes in Net Pension Liability and Related Ratios -
Texas Municipal Retirement System (TMRS) 74
Schedule of Employer Contributions to Pension Plan -TMRS 75
Schedule of Changes in Total OPEB Liability and Related Ratios —TMRS 76
Schedule of OPEB Contributions — TMRS 77
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet - Nonmajor Governmental Funds 81
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds 83
Balance Sheet -Community Development Corporation 85
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position - Community Development Corporation 86
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Annual Comprehensive Financial Report or distributed
For the Fiscal Year Ended September 30, 2022
Table of Contents - Continued
Page
Combining and Individual Fund Financial Statements and Schedules - Continued
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Community Development Corporation
87
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of the Governmental Funds to the Statement of Activities - Comm. Development Corporation
88
Balance Sheet- Economic Development Corporation
89
Reconciliation of the Governmental Fund Balance Sheet to
the Statement of Net Position - Economic Development Corporation
90
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Economic Development Corporation
91
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of
the Governmental Fund to the Statement of Activities - Economic Development Corporation
92
Balance Sheet - Housing Finance Corporation
93
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Housing Finance Corporation
94
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Community Development Corporation
95
Economic Development Corporation
96
Debt Service Fund
97
Grant Fund
98
Statistical Section (Unaudited)
Financial Trends
Net Position by Component
103
Changes in Net Position
104
Fund Balances of Governmental Funds
106
Changes in Fund Balances of Governmental Funds
107
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property
108
Direct and Overlapping Property Tax Rates
109
Principal Property Taxpayers
110
Property Tax Levies and Collections
III
Debt Capacity
Ratios of Outstanding Debt by Type
112
Ratios of General Bonded Debt Outstanding
113
Direct and Overlapping Governmental Activities Debt
114
Pledged -Revenue Coverage
115
Demographic and Economic Information
Demographic and Economic Statistics
116
Principal Employers
117
Operating Information
Full -Time Equivalent City Government Employees by Function/Program
118
Operating Indicators by Function/Program
119
Capital Asset Statistics by Function/Program
120
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Introductory Section
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
iv
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
Anna
April XX, 2023
To the Honorable Mayor and City Council, City Manager,
Citizens of the City of Anna:
The Comprehensive Annual Financial Report (CAFR) of the City of Anna, Texas, for the fiscal
year ended September 30, 2022 including the independent auditor's report, is hereby submitted in
accordance with the provisions of Section 10.3 of the City Charter. Also, 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, 2022.
This report is published to provide the Mayor and City Council, city staff, our citizens,
representatives of financial institutions, our bondholders and other interested parties with
detailed information concerning the financial condition and activities of the City. 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 City of Anna's financial statements have been audited by Weaver and Tidwell, L.L.P., a firm
of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City for the fiscal year ended September
30, 20222, 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 statement presentation. The independent auditor's report is presented as the first
component of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis to accompany the basic
financial statements. This letter of transmittal is designed to complement the MD&A and should
be read in conjunction with it.
m
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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 15.6 square miles and services approximately 20, 243residents. 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 Judge. The Council is elected on a non -partisan basis.
Council members serve three-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; solid waste collection/disposal; 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 and
community development corporation, which are reported separately with the City of Anna's
financial statements. Additional information on these legally separate entities can be found in the
Notes to the Financial Statements. The City currently has 147.0 budgeted full-time equivalent
positions.
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 would maintain current
services and new requests for appropriations separately to the City Manager. The City Manager
and Finance Director then use these requests as the starting point for developing a proposed
budget. The City Manager and Finance Director then presents a proposed budget to Council for
review no later than August 15th. The Council is required to hold public hearings on the
proposed budget and to adopt the final budget no later than September 201h.
The appropriated budget is prepared by fund and department (e.g., police). The City Manager
may authorize transfers of appropriations within a department and between departments within a
fund and within major line -item categories. Increases or decreases of appropriations to a fund,
however, require special approval of the City Council in the form of an Ordinance formally
amending the adopted budget.
vi
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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 basic financial statement for the governmental funds. For
other governmental funds with appropriated annual budgets, this comparison is presented in the
governmental fund subsection of the report.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of
Anna operates.
Local Economy
The City of Anna's economic outlook continues to improve due to the overall improvement in the
economy and continued residential and commercial growth. This is evidenced by local economic
indicators such as a significant increase in tax appraisal values, the increase in residential building
permits, and continued sales tax growth. Residential construction activity remains strong in the
City of Anna. In FY 2022, the City received 1,059 residential building permit applications. In
addition, Starbucks, Whataburger, Chick-fil-a, Salsa Tex Mex, Sunview Cafe, a surgery center, and
a free-standing emergency room opened in FY 2020.
The Anna Economic Development Corporation (EDC) works in cooperation with the Community
Development Corporation to coordinate efforts that expand the city's business tax base with a
focus on creating primary jobs within the City of Anna. The corporations have provided
incentives that resulted in much of the retail development that has occurred in Anna since 2008.
The EDC was instrumental in recruiting Brookshires Grocery Company, CVS pharmacy,
McDonalds, and Walmart. The EDC owns and operates Inc -Cube, a small business incubator
located in our downtown. The corporations cooperatively purchased an 85-acre tract of land at
the northeast corner of State Highway 5 and the Collin County Outer Loop with the intent of
developing a business park. This property was sold in FY 2022 for the development of a proposed
Caterpillar dealership and complementary businesses.
Anticipated growth is expected to continue for the north Collin County region. This has improved
the overall connectivity and mobility to and within Anna, but also will bring continued growth
and new development.
Long —Term Financial Planning
The City's fund balance/operating position concept continues to be an important factor in policy
decisions. The City's Financial Policy states that the City's target unassigned fund balance is an
amount equal or greater than 40% of annual general fund operating expenditures. The City's
ending unassigned fund balance for fiscal year 2022 reflected a fund balance of 57.0% of total
expenditures, well above the stated goal. These resources allow the City to avoid disruptions in
services during economic downturns and to ensure that there will adequate liquid resources to
serve as a financial cushion against the potential shock of unanticipated events.
vii
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Major Initiatives
At the end of the 2021-22 fiscal year, the City of Anna had a number of major projects in progress. The City
Council and City staff continue to work to ensure completion of ongoing projects that will provide
infrastructure improvements to the City of Anna. During 2021-22, the City met with governmental partners
including Collin County, TxDOT and the North Central Texas Council of Governments (NCTCOG) to
review the City's transportation priorities and to discuss opportunities to partner on future projects. City
staff has been holding quarterly meetings with TXDOT to discuss transportation needs throughout the City.
The City also continues to use developer incentives/agreements to improve other critical roadways within
the City.
In FY 2022, the City issued $34.0 million in general obligation bonds and $65.0 million in Certificates of
Obligation to construct new City facilities and a new wastewater treatment facility. Additional City
facilities are needed in order to continue to expand, provide quality services to the citizens, as approved by
the voters in a May 2021 bond referendum. Fire station No. 2 will be built on the west side of US-75 to serve
new residential and commercial growth on that side of the freeway. A new library/community center will
be constructed as part of the municipal campus adjacent to City Hall and Fire Station #1 to help anchor the
new downtown. This was accomplished while decreasing the overall tax rate for FY 2023. The debt service
portion of the tax rate was set at 0.143217 and the operations and maintenance portion of the tax rates was
reduced from 0.452631 down to 0.396533. This reduction in the property tax rate was accomplished through
planning, a sound financial plan, and growth in the overall property tax base. The City continues to be less
reliant on residential property taxes as sales tax revenues continue to increase and the City broadens its
commercial tax base.
Additional information related to the capital improvement projects and funding for those
improvements is located in the Five -Year Capital Improvements Plan located in the City's annual
budget book.
Other Information
Fund Accounting: The City's accounting system is organized and operated on a "fund basis."
Each fund is a distinct, self -balancing entity. A description of the various major funds and fund
types is contained in the Notes of the financial statements. A description of each individual non -
major fund is contained at the beginning of its related combined financial statement.
Basis of Accounting: 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.
Internal Control: Management of the City 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.
viii
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subjecl to final review and possible
revision and should not be relied upon
or distributed
Budgetary Control: Each year, on or before September 201h, the City Council adopts an annual
operating budget for the ensuing fiscal year. The operating budget includes anticipated revenues
and expenditures for the General Fund, Special Revenue Funds, the Debt Service Fund, and
Proprietary Funds. The budget is a planning device that defines the type, quality, and quantity of
City goods and services that will be provided to our citizens. The budget is also a control device
that serves as a system of "checks and balances" between levels of City government. The
budgetary system ensures that individual departments contain their expenditures within
limitations set by the City management, and that City management contains expenditures for the
entire City within limitations set by the City Council. After adoption, the City Manager may
authorize transfers of appropriations within a department and between departments within a
fund and within major line -item categories. Increases or decreases of appropriations to a fund;
however, require special approval of the City Council in the form of an Ordinance formally
amending the adopted budget.
Acknowledgements
The presentation of this report could not have been accomplished without the efficient and
dedicated services of the entire staff of the Finance Department and all department head directors.
We would like to express our appreciation to all members of the departments who assisted and
contributed to the preparation of this report. We would also like to thank the Mayor and the City
Council for their continued interest and support for maintaining the highest standards of
professionalism in the management of the City of Anna financial operations.
Respectfully submitted,
Alan Guard
Finance Director
ix
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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, 2021
Executive Director/CEO
x
CITY OF ANNA
ORGANIZATION CHART
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
t arty Mbnagtx < a tiflw.,
XI
City of Anna, Texas
Elected Officials and Management
September 30, 2022
City Council
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Nate Pike
Mayor
Kevin Toten
Place 1
Pete Cain
Place 2
Stan Carver II
Place 3
Randy Atchley
Place 4 - Deputy Mayor Pro -Tern
Danny Ussery
Place 5
Lee Miller
Place b - Mayor Pro-Tem
Management
Jim Proce, ICMA-CM
City Manager
Ryan Henderson
Assistant City Manager
Clark McCoy
City Attorney
Carrie Land
City Secretary
Alan Guard
Finance Director
Terri Doby
Budget Manager
Dean Habel
Chief of Police
Ray Isom
Fire Chief
Greg Peters, PE
Director of Public Works
Ross Altobelli
Director of Development Services
Stephanie Beitelschies
Director of Human Resources
Joey Grisham
Economic Development Director
Marc Marchand
Director of Neighborhood Services
xii
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Financial Section
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Independent Auditor's Report
The Honorable Mayor
and Members of the City Council of the
City of Anna, Texas
Report on the Financial Statements
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 (the City), as of and for the year ended September 30, 2022, 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 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, 2022, 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) and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. 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.
Emphasis of Matter
As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2022, the
City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our
opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City's 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 twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
The Honorable Mayor
or distributed
and Members of the City Council of the
City of Anna, Texas
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 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 and the required supplementary information, as listed in the
table of contents, 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 auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion 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.
The Honorable Mayor
and Members of the City Council of the
City of Anna, Texas
Supplementary Information
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying 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.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such 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 auditing standards
generally accepted in the United States of America. In our opinion, the accompanying 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.
Other Information Included in the Annual Comprehensive Financial Report (ACFR)
Management is responsible for the other information included in the ACFR. The other information
comprises the introductory section and statistical section but does not include the financial statements
and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether
a material inconsistency exists between the other information and the 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April XX,
2023 on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City's internal control over financial reporting and compliance.
(Firm Name)
Dallas, Texas
April XX, 2023
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
nna
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Management's Discussion and Analysis or distributed
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, 2022. We encourage readers to consider the information presented here in
conjunction with additional information contained in this report.
Financial Hiahliahts
• The City's total combined net position was $198,470,627 at September 30, 2022. Of this,
$10,546,664 (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 $29,392,124. The increase is primarily a result
of an increase of Charges for Services of $10,890,250.
• On a government -wide basis, the City's total liabilities increased by $8,383,472. The increase in
liabilities is primarily a result of increased payables due to contractors for PID capital projects.
• At the close of the current fiscal year, the City's governmental funds reported combined fund
balances of $37,285,741 a decrease of $7,140,202. This decrease is largely due to an increase
in capital outlay.
• As of the end of the year, the unassigned fund balance of the General Fund was $9,949,599 or
57% 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 inflows of
resources, deferred outflows 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).
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Both of the government -wide financial statements distinguish functions of the cE#f *Mare 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 economic development. 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 some 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 thirteen 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, PID Capital Projects Fund, and Grant 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. General
Fund budget amendments increased revenue by $571,330 and expenditures by $191,030. The increase
in revenues was related to re -estimates for sales taxes and license and permit fees due greater than
expected performance during the pandemic. The increase in expenditures was primarily due to
increased public safety costs associated with the response to the pandemic.
Proorietary Funds
The City's proprietary fund is an 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 an
enterprise fund to account for its water, sewer, and sanitation operations. All activities associated with
providing such services are accounted for in this fund, including administration, operation,
maintenance, debt service, capital improvements, meter maintenance, billing and collection. The
City's intent is that costs of providing the services to the general public on a continuing basis is
financed through user charges in a manner similar to a private enterprise.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Proprietary financial statements provide the some type of information as the govi-W hg181ht-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information
for the Utility Fund, which is considered to be a major fund of the City.
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 two component units. The Anna
Economic Development Corporation and Anna Community Development Corporation are discretely
presented component units.
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. Because the City did not budget for the major special revenue fund, Grant Fund, there is not
a budget in RSI related to it. 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 $198,470,627 as of September 30, 2022, in the primary
government.
The largest portion of the City's net position, $131,724,339, reflects its investments in capital assets (e.g.,
land, park improvements, buildings, furniture and fixtures, streets, drainage, machinery and equipment,
etc.), less any debt used to acquire those assets that are 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.
N
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
The following table reflects the condensed Statement of Net Position: or distributed
Governmental Business -Type Total
Activities Activities Primary Government
2022 2021 2022 2021 2022 2021
Current and other assets
$ 31,387,255
$22,367,483
$ 7,513,945
$ 8,101,636
$ 38,901,200
$ 30,469,119
Restricted assets
18,648,412
31,159,401
36,531,071
23,680,099
55,179,483
54,839,500
Capital assets, net
119,111,148
96,862,712
70,145,270
63,059,041
189,256,418
159,921,753
Total assets
169.146.815
150.389,596
114,190,286
94,840,776
283,337,101
245,230,372
Deferred outflows of resources
Current liabilities
Noncurrent liabilities
Total liabilities
Deferred inflows of resources
Net position
1,252,567 923,867 317,366 325,312 1,569.933 1,249,179
12,328,122 7,334,140 6,470,969 2,533,418 18,799,091 9,867,558
44,741,231 44,094,467 20,105,036 21,299,860 64,846,267 65,394,327
57,069,353 51,428,607 26,576,005 23,833,278 83,645,358 75,261,885
2,681,233 2,079,606 109,816 59,557 2,791,049 2,139,163
Net investment in capital assets
81,252,418
65,539,991
50,471,921 41,835,760
131,724,339
107,375,751
Restricted
19,668,553
18,360,546
36,531,071 23,680,099
56,199,624
42,040,645
unrestricted
9,727,825
13,904,713
818,839 5,757,394
10,546,664
19,662,107
Total net position
$110,648,796
$ 97,805,250
$87,821,831 $ 71,273,253 $198,470,627
$ 169,078,503
Statement of Activities:
The following table provides
a summary of the City's changes in net position:
Governmental Business -type
Total
Activilies Activities
PrinaryGovernment
2022
2021 2022 2021
2022
2021
Revenues:
Program revenues:
Charges for services
$ 13,506.981
$ 7,799,632 $28,539,413 $23,356,512
$ 42046,394
$ 31,156,144
Operating grants and contributions
75,963
527,376 - -
75,963
527,376
Capital grants and contributions
8,977,439
30,267,739 4,125,890 7,732,066
13,103,329
37,999,805
General revenues:
Property taxes
10,239,322
8.714,860 - -
10,239,322
8,714,860
Sales taxes
3,847,911
2,929,876 - -
3,847,911
2,929,876
Franchise and local taxes
888,723
726,006 - -
888,723
726,006
I nvestment income
244,855
123,643 236,664 93,145
481,519
216,788
Other revenue
189.079
62,859 - -
189,079
62,959
Gain on sale of assets
-
- - -
-
-
Total revenues
37,970,273
51,151,991 32,901,967 31,181,723
70,872,240
82,333,714
Expenses:
General government
5,226,176
3,538746 - -
5,226,176
3,538,746
Public safety
9,915,219
6,221,473 - -
9,915,219
6,221.473
Culture and recreation
2,550,873
2,053,933 - -
2,550,873
2,053,933
Public works
4,739.396
4.169,132 - -
4,739,386
4,169,132
Comrunity services
1,211,897
1,198.530 - -
1,211,897
1,198,530
Interest and fiscal charges
1.483,176
2,212316 - -
1.483,176
2,212316
Water, sewer, & sanitation
-
- 16.353.389 13.462.054
16,353,389
13,462054
Total expenses 25,126,727 19,394,130 16,353.389 13,462.054 41,480,116 32,856,184
Change in net position 12,843,546 31.757,861 16,548,578 17,719,669 29,392.124 49.477,530
Net position, beginning 97,805,250 66,047,389 71,273253 53,553,584 169,078,503 119,600,973
Net position, ending $110,648,796 $97,805,250 $87,821,831 $71,273,253 $198,470,627 $169,078,503
UN
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Graphic presentations of selected data from the summary tables are displayeIdcb6k9Wto assist in the
analysis of the City's activities.
Other income
Property taxes
26.97%
Charges for
services 35.57
Governmental Activities - Revenues
Investment
income 0.64%
Grants and
Sales
taxes
10.1317
Franchise and
local taxes 2.34%
For the year ended September 30, 2022, revenues from governmental activities totaled $37,970,273.
Capital grants and contributions, property taxes, and charges for services are the City's largest revenue
sources. Capital grants and contributions decreased by $24,896,476 or 66% when compared to prior
year mainly due to a decrease in contributed capital relating to streets and drainage. Property taxes
increased by $1,524,462 or 17% due to an increase in overall assessed property values. Charges for
services increased by $10,890,250 or 34% mainly due to an increase in building permit activity, and
water and sewer sales. The following graph shows the governmental function expenses of the City:
Governmental Activities - Expenses
Cultureand
recreation89
General
government
Public safety 379E
For the year ended September 30, 2022, expenses for governmental activities totaled $25,126,727. This
represents an increase of $5,932,597 or 31% from the prior year. The City's largest increase was in
general government of $6,164,344 or 174%, due to add in explanation here.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Public safety expenses increased $3,205,224 or 52%, due to costs associated vvlti'isirised staffing in
Police and Fire to address increased calls for service and ramping up to become the primary
ambulance provider in the city.
Business -type activities are shown comparing operating costs to revenues generated by related
services.
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
Business -Type Activities - Revenues and Expenses
■ Charges for
Services
For the year ended September 30, 2022, charges for services by business -type activities totaled
$28,539,413. This is an increase of $5,182,901 or 22% from the previous year. This increase in revenues is
directly related to an increase in water (2.36%) and sewer rates (25.77%) and an increase of more than
1000 new customers. Expenses totaled $16,353,389, which was an increase of $2,891,335, or 21% due to
increase purchases of sewer service from the North Texas Municipal Water District (NTMWD), and water
purchases from the Greater Texoma Utility Authority (GTUA). In addition, the Public Works Department
continued to make progress on several I&I projects during FY 2021 to aid in resolving that issue. The City
will continue to complete I&I projects in FY 2022 in order to minimize the amount of rainfall the City is
treating through the City's sewer system.
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 theyear.
As of September 30, 2022, the General Fund reflected a total fund balance of $9,963,033. Of this,
$13,354 is considered restricted for parks. Unassigned fund balance totaled $9,949,599 as of year-end.
The General Fund saw a significant increase in property taxes when compared to the prior year.
12
This directly relates to the addition of new properties
values.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
to the tax roll, as well a4rdgtdh&6ose in property
The Capital Projects Fund had an ending fund balance of $7,581,206 at year-end or a decrease of
$11,855,195 due to an increase in payments for current capital projects, primarily the new fire station
and City Hall.
The Debt Service Fund had an ending fund balance of $82,294 at year-end for an increase of $12,189
due primarily to an increase in property assessed valuation.
The PID Capital Projects Fund had an ending fund balance of $7,971,782 at year-end, a decrease of
$4,706,101 from the previous year. The increase in fund balance was primarily due to increase in the PID
fees paid in the current year.
The Grant Fund had an ending fund balance of $13,299 at year-end, an increase of 12,850 from the
previous year.
The Park Development Fund, previously a nonmajor governmental fund, had a fund balance of
$5,245,454, or an increase of $2,530,982, due to charges for services during the year that exceeded
expenditures, leading to this increase in fund balance.
The Road Capital Development Agreement Fund, also previously a nonmajor governmental fund, had
a fund balance of $217,093, which was a decrease of $103,759.
Proprietary Funds - The City's proprietary funds provide the some 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 $119,111,148 in a variety of
capital assets and infrastructure, net of accumulated depreciation and amortization. The City's
business -type activities had invested $70,145,270 in a variety of capital assets and infrastructure, net of
accumulated depreciation and amortization.
Major capital asset events during the current year include the following:
Construction in progress for the Municipal Complex and Fire Station totaling $6,368,363.
More detailed information about the City's capital assets is presented in Note 5 to the financial
statements.
LONG-TERM DEBT
At September 30, 2022, the City had total bonds, contractual obligations, right -to -use lease liability, and
financed purchases outstanding of $62,706,249. During the year, the City made payments on long-term
debt totaling $2,568,709. More detailed information about the City's long-term liabilities is presented in
Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The economy remains strong for the City of Anna and the North Texas region. The City continues to
focus on economic development and working toward providing a balanced community. The City is
taking a more proactive and aggressive approach to economic development with its business
recruitment efforts, as well as continued development of residential housing options. In addition, the
City continues to conservatively manage its budget.
13
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
The fiscal year 2022-2023 budget reflects the commitment of the City Counkwil:fi0ftteAaff to focus on
enhancing the quality of existing services to our neighbors and respond to our city's continuing growth
and development, while maintaining a strong financial position.
Since property values stabilized in 2013 following the 2008-2011 housing recession, the City has
continued to see healthy increases in the value of existing properties. For the tax year 2021, the City
saw existing property values increase just over 10.497o and $169,100,661 in new value was added to the
tax roll. Again, for the 2022 tax year, the City saw existing property values increase just over 16% and
$301,947,063 in value was added to the tax roll. We remain cautiously optimistic that we will
experience modest, but slowing, appreciation in the value of existing properties and additional value
will continue to be added to the tax roll, as a result of new residential and commercial construction in
the near term. There are currently eight multifamily developments under construction in Anna
representing over 2,000 units and over $400 million in capital investment, and a new 30,000 square foot
medical office building housing over ten medical specialists will be completed in the summer of 2023.
Megatel is also under construction on a 2.3-acre crystal lagoon project that will include over 2,000
single-family homes, 600 multifamily units, and over 50,000 square feet of entertainment/commercial
space.
The City Council decreased the FY 2022 tax rate from the FY 2021 rate of $.591288 per $100 in valuation
to $.5830 per $100 in valuation, above the "no -new -revenue -rate" ($.569415) but below the "voter -
approval -rate" ($.58656). Senate Bill 2 compresses the capability of a local government to generate
revenue and provide services by lowering the tax rate a city can adopt without a mandatory election.
SB 2 also changes the way property tax rates are calculated, make changes to the appraisal process,
and reduce the previously called "rollback rate" of 8% to a new rate of 3.5% or "the voter -approval
rate". This tax rate is the maximum a City can set the tax rate above the "effective tax rate", now
known as the "no -new -revenue rate", without voter approval. This bill will tremendously impact
growing cities such as Anna into the future.
As the City begins to see the impact of the reduction of the amount of property tax a city can levy,
sales tax will become increasingly important for growing communities. Sales tax was up approximately
22% in FY 2022 largely due to the continued growth of retail commercial property and population in the
City. A 15.0% increase over the FY 2022 estimated total of $5.72 million is budgeted for sales tax for FY
2023. In FY 2020, Starbucks, Chick-fil-A, Whataburger, Salsa TexMex, and Sunview Cafe opened. Along
with Walmart and people staying close to home during the pandemic, the City has seen the full impact
of the sales tax from these retail establishments since FY 2021. In addition to these, a total of 53 new
businesses have opened in Anna including other recognized retail establishments such as Panda
Express, Dairy Queen, Pizza Hut, Jersey Mikes, Popeye's Chicken, Fuzzy's Tacos, and opening in April
2023, Chili's.
The growth in both sales tax and taxable value of real property corresponds to a significant increase in
residential growth and population over the past 36 months. According to the most recent population
estimates published by the North Central Texas Council of Governments, the City of Anna population as
of January 1, 2021 was 17,814. However, the population is believed to be well above this estimate due
to the number of new utility accounts established and single-family permits which have been issued.
The City made a significant effort to reach out to its neighbors to encourage them to complete the 2020
Census to receive a more accurate population count. As a result, Anna had a response rate in excess
of 60%, higher than the DFW rate and overall Texas response rate. Reflecting the City's continued high
growth in population will be key to attracting additional commercial and retail businesses the City lacks
and needs in order to sustain the City into the future to provide the funding for expenditures needed in
a rapidly growing community.
Furthermore, with the growth in population comes a proportional increase in demand for municipal
services that are funded primarily by property taxes. As stated previously, in order to fund the FY 2021
budget, the City adopted a tax rate of $0.583 per $100 valuation which is lower than the tax rate
adopted in FY 2020. When compared with other cities in our area, the City of Anna has one of lowest
per -capita property tax levies.
14
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Rapid population growth has also resulted in significant investment over the 19U040t0d 15 years in the
City's water and sewer system. Currently the Water and Sewer Fund holds just over $19.7 million in
outstanding debt. The City has worked closely with our financial advisors, Hilltop Securities, to develop a
sound debt management plan for the Water and Sewer Fund. Over the past several years, in order to
appropriately manage this debt, the City and Hilltop Securities developed a plan to take advantage of
call dates and pursue advance refunding of the City's outstanding debt. Every effort has been made to
minimize the present value costs to the City.
The City of Anna, along with the cities of Melissa, Van Alstyne, and Howe, belongs to a strategic alliance
called the Collin Grayson Municipal Alliance (CGMA). The alliance (CGMA) purchases treated surface
water from the North Texas Municipal Water District (NTMWD) through a contract with the Greater
Texoma Utility Authority (GTUA). The CMGA purchases a minimum take or pay (MT/P) allocation of
water through GTUA from NTMWD. Currently, each city is responsible for the percentage of the total
MT/P amount that corresponds to the total amount of water each city uses.
This treated surface water supplements the City's water supply especially during the summer months
when water consumption is highest. As our population has grown and water demand has increased, we
have been required to increasingly supplement our well water with treated surface water. As we have
forecasted consumption and production of our wells, it appears that the CGMA as a group will likely
exceed the MT/P allocation in FY 2023. When this happens, MT/P amount will reset at the new
consumption level, and the City of Anna will be responsible for the cost of all the water we consume
above the current MT/P amount.
Due to this continued increase in water cost, treatment and transportation cost, the growing needs for
infrastructure improvements and additions, as well as staffing needs for a growing community, the City
worked with a water rate consultant in FY 2020. As a result, the City Council has adopted the rate model
and approved a rate increase for FY 2021, FY 2022, and FY 2023 as well as a long-range rate plan and
capital improvement model. Actual increases will have to be approved each year by City Council as
part of the annual budget process.
The City of Anna's budget continues to be impacted by both moderately strong growth and
conservative fiscal management. The 2022-2023 budget reflects the efforts of the governing body and
city staff to address the need to provide services to support our growing community.
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 City Finance Director, 120 W. 7th Street, Anna, Texas
75409.
15
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subjecl to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
nna
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Basic Financial Statements
17
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
nna
um
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Statement of Net Position or distributed
September 30, 2022
Primary Government
Component Units
Community
Economic
Housing
Governmental
Business -type
Development
Development
Finance
Activities
AcffvlBes
Total
Corporation
Corporation
Corporation
ASSETS
Cash and cash equivalents
$ 27,781,508
$ 2.965.588
$ 30,747,096
$ 7,796,303
$ 982,909
$ 634,607
Investments
2,IXI0,000
2,000,000
4,000.000
-
5.000,000
-
Receivables, net
1.564,351
2.426,942
3,991,293
415,588
16.580
Due from other governments
41,396
-
41.396
-
-
Internal balances
-
-
-
-
-
-
Prepods
-
-
-
-
-
-
Inventories
-
121.415
121,415
-
-
-
Restricted assets:
Restricted cash and cash equivalents
16S42.112
35.7055%
52,247,670
-
-
Restricted investments
2,106,300
-
2.106,300
-
-
-
G1UAprepoidreserves
-
825.513
825,513
-
-
-
Capital assets:
Non -depreciable
57,474,917
7,973.195
65,448,112
-
40,346
1,443,404
Net depreciable capital assets
61,636,231
62,172,075
123.808,306
-
187,422
-
Total assets
169.146,815
114,190,286
293,337,101
8,211,891
6.227,257
2,078.011
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on bond refunding
-
69,488
69,488
-
-
-
Defenedoutflows- pension
1,213,475
240,142
1,453,617
43,878
-
-
Defenedoutflows -OPEB
39,092
7,736
46,828
1,413
-
-
Total defamed outflows ofresources
1,252,567
317,366
1,569,933
45,291
-
-
LIABILITIES
Accounts payable and other liabilities
6,269,009
4,848,605
11,117,614
17.080
7,302
60
Accrued liabiffies
1,329,163
-
1,329,163
3,944
-
Accrued salaries
309,227
68,368
377.595
12,547
-
-
Customerdeposits
-
1,450,286
1,450,286
-
-
-
Unearned revenue
4,227,138
-
4,227,136
-
-
93,750
Due to other governments
-
-
-
-
-
-
Accruedinterestpayable
193,585
103,710
297,295
11,939
-
-
Noncurrent liabilities:
Due within one year
567,700
f,247,783
1,815,483
100000
-
-
Due inmore than one year
44,173,531
18,857,253
63,030,784
2,433,299
-
-
Totalliabilities
57,069,353
26,576,005
83,645,358
2,578,809
7,302
93,810
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - leases
511,279
-
511,279
-
-
-
Deferred inflow s-land lease
1,615,036
1.615,036
1,433,684
Deferred inflows - pension
542,764
107,411
650,175
19,625
-
-
Deferred inflows -OPEB
12,154
2.405
14,559
439
-
-
Total deferred inflows ofresources
2,681.233
109,816
2,791,049
20DU
-
1,433,684
NETPOSNION
Net investment in capitol assets
81,252,418
50,471,921
131,724,339
-
227.768
1,443,404
Restricted for:
Water and sewer improvements
-
35,705,5%
35.705,558
-
-
-
Capital projects
19,215,321
-
19.215,321
-
-
-
GTUAdeposits
-
825,513
825,513
-
-
-
Culture and recreation
13,434
-
13,434
-
-
-
PubBc safety
426,499
-
426.499
-
-
-
Federal grants
13.299
-
13,299
-
-
-
Community and econonic development
-
-
-
5,658309
5,992.187
(892,887)
Unrestricted
9.727,825
818,8664
39
10,546,
-
-
-
TOTAL NET POSITION
$ 110,648,796
$ 87,821.831
$ 198,470,627
$ 5.658,309
$ 6.219,955
$ 550.517
The Notes to Financial Statements are an integral part of this statement.
19
City of Anna, Texas
Statement of Activities
For the Fiscal Year Ended September 30, 2022
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Program Revenues
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
contributions
Capital
Grants and
contributions
PRIMARY GOVERNMENT
Governmental activities:
General government
$
5,226,176
$
6,708,288
$ -
$ 8,977,439
Culture and recreation
2,550,873
2,835,400
-
-
Community services
1.211,897
674,627
-
-
Public safety
9.915,219
14,473
75,963
-
Public works
4,739,386
3,274,193
-
-
Interest and fiscal charges
1,483,176
-
-
-
Total governmental activities
25,126,727
13,506,981
75,963
8,977,439
Business -type activities:
Water and sewer
16,353,389
28,539,413
-
4,125,890
Total business -type activities
16,353,389
28,539,413
-
4,125,890
TOTAL PRIMARY GOVERNMENT
$
41,480,116
$
42,046,394
$ 75,963
$ 13,103,329
Component units
Governmental activities:
Community Development Corporation
$
1,398,398
$
-
$ -
$ -
Economic Development Corporation
85,329
-
-
-
1,483,727
-
-
-
Business -type activities:
Housing Finance Corporation
17,705
565,970
-
-
Total component units
$
1,501,432
$
565,970
$ -
$ -
General revenues:
Property taxes
Sales taxes
Franchise and local taxes
Investment income
Miscellaneous revenue
Gain on sale of capital assets
Total general revenues
Change in net position
Net position, beginning
NET POSITION, ENDING
The Notes to Financial Statements are an integral part of this statement.
20
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Net (Expense) Revenue
and Changes in Net Position
Primary Government
Component Units
Community Economic Housing
Governmental Business -type
Development Development Finance
Activities Activities Total
Corporation Corporation Corporation
$ 10,459,551 $
- $ 10,459,551
284,527
- 284,527
(537,270)
- (537,270)
(9,824,783)
- (9,824,783)
(1,465,193)
- (1,465,193)
(1,483,176)
- (1,483,176)
(2,566,344)
- (2,566,344)
- 16,311,914
- 16,311,914
16,311,914
16,311,914
(2,566,344) 16,311,914
13,745,570
$ (1,398,398) $ - $
(85,329) _
(1,398,398) (85,329)
548,265
(1,398,398)
(85,329)
548,265
10,239,322
-
10,239,322
-
-
-
3,847,911
-
3,847,911
2,308,746
-
-
888,723
-
888.723
-
-
-
244,855
236,664
481,519
15,109
25,620
2,252
189,079
-
189,079
-
8,166
-
-
-
-
2,857,748
5,565,652
-
15,409,890
236,664
15,646,554
5,181,603
5,599,438
2,252
12,843,546
16,548,578
29,392,124
3,783,205
5,514,109
550,517
97,805,250
71,273,253
169,078,503
1,875,104
705,846
$ 110,648,796
$ 87,821,831
$ 198,470,627
$ 5,658,309
$ 6,219,955 $
550,517
Oil
City of Anna, Texas
Balance Sheet - Governmental Funds
September 30, 2022
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Capital
Debt Service
PID Capital
General Fund
Projects
Fund
Projects
ASSETS
Cash and cash equivalents
$
7,777,357
$
1,862,177
$
82,294
$ -
Investments
2,000,000
-
-
-
Receivables, net
1,529,594
-
22,204
10,941
Due from other governments
-
41,396
-
-
Prepaids
-
-
-
-
Restricted cash
522,043
8,004,504
-
7,960,841
Restricted investments
-
-
-
2,106,300
TOTAL ASSETS
$
11,828,994
$
9,908,077
$
104,498
$ 10,078,082
LIABILITIES
Accounts payable and other liabilities
$
968,345
$
997,708
$
$ 2,106,300
Accrued liabilities
-
1,329,163
-
-
Accrued salaries
300,342
-
Unearned revenue
-
-
-
Totalliabilities
1,268,687
2,326,871
2,106,300
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - propertytaxes
85,995
-
22,204
-
Deferred inflow - leases
511,279
-
-
Total deferred inflows of resources
597,274
-
22,204
-
FUND BALANCES
Restricted for:
Culture and recreation
13,434
-
-
Debt service
-
-
82,294
-
Public safety
-
-
-
-
Federal grants
-
-
-
-
Capital projects
-
6,278,129
-
7,971,782
Assigned for:
Capital projects
-
1,303,077
-
-
Unassigned
9,949,599
-
-
-
Total fund balances
9,963,033
7,581,206
82,294
7,971,782
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES
$
11,828,994
$
9,908,077
$
104,498
$ 10,078,082
The Notes to Financial Statements are on integral part of this statement.
22
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Park
Road Capital
Total
Development
Development
Nonmajor
Governmental
Grant Fund
Fund
Agreement Fund
Governmental
Funds
$ 3,736,221
$
5,377,315
$ 2,290,328
$
6,655,816
$
27,781,508
-
-
-
-
2,000,000
1,612
1,564,351
-
41,396
-
-
-
54,724
16,542,112
-
-
-
2,106,300
$ 3,737,833
$
5,377,315
$ 2,290,328
$
6,710,540
$
50,035,667
$ 399
$
122,976
$ 2,073,235
$
46
$
6,269,009
-
-
-
-
1,329,163
-
8,885
-
309,227
3,724,135
-
503,003
4,227,138
3,724,534
131,861
2,073,235
503,049
12,134,537
108,199
511,279
619,478
13,434
82,294
- - - 426,499 426,499
13,299 - - - 13,299
- 5,245,454 217,093 5,780,992 25,493,450
1,303,077
- - 9,949,599
13,299 5,245,454 217,093 6,207,491 37,281,652
$ 3,737,833 $ 5,377,315 $ 2,290,328 $ 6,710,540 $ 50,035,667
23
City of Anna, Texas
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
September 30, 2022
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities are not current financial resources and,
therefore not reported in the governmental funds.
Capital assets - non -depreciable
Capital assets - net depreciable
Other long-term assets are not available to pay for current -period expenditures and,
therefore, are deferred in the governmental funds.
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
Deferred outflows - OPEB
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 - land lease
Deferred inflows - pension
Deferred inflows - OPEB
Some liabilities, including bonds payable and accrued interest, are not reported as
liabilities in the governmental funds.
Accrued interest payable
General obligation bonds
Certificates of Obligation
Combination tax and revenue refunding bonds
Unamortized premiums
Financed purchases
Right -to -use lease liability
Net pension liability
Total OPEB liability
Compensated absences
NET POSITION OF GOVERNMENTAL ACTIVITIES
The Notes to Financial Statements are an integral part of this statement.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
$ 37,281,652
57,474,917
61,636,231
NFdF39
1,213,475
39,092
(1,615,036)
(542,764)
(12,154)
(193,585)
(9,243,000)
(30,210,000)
(335,000)
(1,980,979)
(302,059)
(895,262)
(569,758)
(130,442)
(1,074,731)
$ 110,648,796
24
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
manna
25
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Statement of Revenues, Expenditures, and Changes or distributed
in Fund Balances - Governmental Funds
For the Fiscal Year Ended September 30, 2022
Capital
Debt Service
PID Capital
General
Projects
Fund
Projects
REVENUES
Property taxes
$ 8,004,989
$ -
$ 2,079,794
$
Sales taxes
3,847,911
-
-
-
Charges for services
285,779
-
-
-
License and permits
5,752,179
-
-
-
Fines and forfeitures
241,274
-
-
-
Franchise and local taxes
888,723
-
-
Investment income
90,387
29,779
4,344
44,711
Other revenues
151,464
-
-
250
Intergovernmental
47,640
-
Contributions and donations
3,050
-
Total revenues
19,313,396
29,779
2,084,138
44,961
EXPENDITURES
Current:
General government
5,040,143
57,014
-
-
Culture and recreation
1,345,005
-
-
Community services
1,145,841
-
-
-
Public safety
7,432,334
14,432
-
-
Public works
777,565
3,318
-
Debt service:
Principal
44,001
-
506,000
Interest and fiscal charges
13,358
-
1,565,949
-
Capital outlay
1,666,327
12,102,617
-
4,751,062
Total expenditures
17,464,574
12,177,381
2,071,949
4,751,062
Excess (deficiency) of revenues
over(under)expenditures
1,848,822
(12,147,602)
12,189
(4,706,101)
OTHER FINANCING SOURCES (USES)
Transfers in
-
292,407
-
Transfers out
-
-
Right -to -use lease proceeds
1,541,966
-
-
-
Total other financing sources (uses)
1,541,966
292,407
-
-
Netchangeinfundbalances
3,390,788
(11,855,195)
12,189
(4,706,101)
FUND BALANCES, BEGINNING OF YEAR
6,572,245
19,436,401
70,105
12,677,883
FUND BALANCES, END OF YEAR
$ 9,963,033
$ 7,581,206
$ 82,294
$ 7,971,782
The Notes to Financial Statements are an integral part of this statement.
26
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Park
Road Capital
Nonmajor
Total
Development
Development
Governmental
Governmental
Grant Fund
Fund
Agreement Fund
Funds
Funds
$
$
$
$ 46,340
$ 10,131,123
-
3,847,911
-
3,473,645
87,860
3,657,590
7,504,874
-
-
-
-
5,752,179
-
-
-
8,654
249,928
-
-
-
888,723
10,949
24,535
8,381
31,769
244,855
-
1,094
-
36,271
189,079
25,273
-
-
-
72,913
-
-
3,050
36,222
3,499,274
96,241
3,780,624
28,884,635
-
-
-
3,172
5,100,329
687,330
226
2,032,561
-
-
-
-
1,145,841
23,372
-
-
28,213
7,498,351
-
-
-
3,600
784,483
550,001
- - - 1,579,307
- 280,962 74,962 18,875,930
23,372 968,292 - 110,173 37,566,803
12,850
2,530,982
96,241
3,670,451
(8,682,168)
-
-
-
3,021
295,428
(200,000)
(95,428)
(295,428)
-
-
-
-
1,541,966
-
-
(200,000)
(92,407)
1,541,966
12,850
2,530,982
(103,759)
3,578,044
(7,140,202)
449
2,714,472
320,852
2,633,536
44,425,943
$ 13,299
$ 5,245,454 $
217,093
$ 6,211,580
$ 37,285,741
27
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Reconciliation of the Statement of Revenues, Expenditures and Changexifistributed
Fund Balances of Governmental Funds to the Statement of Activities
September 30, 2022
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (7,140,202)
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 16,846,083
Depreciation expense (4,523,193)
Amortization expense (671,018)
Capital contributions 8,977,439
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 (665,333)
I ncrease in accrued interest 2,739
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. 272,312
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. (31,195)
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. 3,469
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.
Right -to -use lease proceeds
(1,541,966)
Amortization of debt premium
117,706
Gengeral, certificate of obligation, and revenue bond principal payments
506,000
Lease principal payments
646,704
Financed purchase payments
44,001
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 12,843,546
The Notes to Financial Statements are an integral part of this statement.
m
City of Anna, Texas
Statement of Net Position
Proprietary Fund
September 30, 2022
ASSETS
Current assets
Cash and cash equivalents
Certificates of deposit
Receivables, net
Inventories
Total current assets
Noncurrent assets
Restricted cash and pooled investments
GTUA prepaid reserves
Capital assets
Non -depreciable
Net depreciable capital assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on bond refunding
Deferred outflows - pension
Deferred outflows - OPEB
Total deferred outflows of resources
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Utility Fund
$ 2,965,588
2,000,000
2,426,942
121,415
7,513,945
35,705,558
825,513
7,973,195
62,172,075
106,676,341
114,190,286
69,488
240,142
7,736
317.366
The Notes to Financial Statements are an integral part of this statement.
0
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas
Subject to final review and possible
Statement of Net Position - Continued
revision and should not be relied upon
or distributed
Proprietary Fund
September 30, 2022
Utility Fund
LIABILITIES
Current liabilities
Accounts payable
$ 4,771,121
Salaries payable
68,368
Other liabilities
77,484
Bond interest payable
103,710
Customer deposits
1,450,286
Revenue bonds payable - current
1,074,000
Financed purchases - current
173,783
Compensated absences - current
-
Total current liabilities 7,718,752
Noncurrent liabilities
Revenue bonds payable
17,479,676
Financed purchases
882,848
Compensated absences
226,520
Right -to -use lease liability
129,642
Net pension liability
112,753
Total OPEB liability
25,814
Total noncurrent liabilities 18,857,253
Total liabilities 26,576,OD5
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 107.411
Deferred inflows - OPEB 2,405
Total deferred inflows of resources 109,816
NET POSITION
Net investment in capital assets
50,471,921
Restricted for:
GTUA deposits
825,513
Water and sewer improvements
35,705,558
Unrestricted
818,839
TOTAL NET POSITION $ 87,821,831
30
City of Anna, Texas
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Fund
For the Fiscal Year Ended September 30, 2022
OPERATING REVENUES
Water
Sewer
Sanitation
Stormwater
Service charges
Connection fees
Developer and impact fees
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Personnel services
Contracted services
Repairs and maintenance
Supplies
Utilities
Depreciation
Other expenses
Total operating expenses
Operating income
NONOPERATING REVENUES (EXPENSES)
Investment income
I nterest expense
Total nonoperating revenues (expenses)
Income before capital contributions
Contributed capital
Change in net position
Net position, beginning of year
NET POSITION, END OF YEAR
The Notes to Financial Statements are an integral part of this statement.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subjecl to final review and possible
revision and should not be relied upon
or distributed
Utility Fund
$ 8,195,633
5,225,164
2,041,254
6,443
1,872,187
564,190
10,289,594
344,948
28,539,413
2,400,565
8,556,811
1,081,779
240,897
432,930
2,680,565
155,418
15,548,965
12,990,448
236,664
(804,424)
(567,760)
12,422,688
4,125,890
16,548,578
71,273,253
$ 87,821,831
31
City of Anna, Texas
Statement of Cash Flows - Proprietary Fund
For the Fiscal Year Ended September 30, 2022
OPERATING ACTIVITIES
Receipts from customers and users
Payments to suppliers
Payments to employees
Net cash provided by operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets
I nterest and fees paid on long-term debt
Principal payments on debt, financed purchases, and right -to -use lease liability
Net cash used in capital and related financing activities
INVESTING ACTIVITIES
Sale of investment securities
Interest received
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and cash equivalents
Restricted cash and cash equivalents
The Notes to Financial Statements are an integral part of this statement.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Utility Fund
$
28,204,236
(6,694,596)
(2,326,619)
19,183,021
(5,640,904)
(788,136)
(1,334,336)
(7,633,734)
(2,000,000)
236,664
(1,763,336)
9,785,951
28,885,195
$
38,671,146
$
2,965,588
35,705,558
$
38,671,146
ll
City of Anna, Texas
Statement of Cash Flows - Proprietary Fund - Continued
For the Fiscal Year Ended September 30, 2022
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to cash
provided by operating activities:
Depreciation expense
Changes in assets and liabilities
Accounts receivable
I nv entories
Deferred outflows - pension and OPEB
Deferred inflows - pension and OPEB
Net pension and total OPEB liability
Accounts payable
Salaries payable
Customer deposits
Accrued compensated absences
NET CASH PROVIDED BY OPERATING ACTIVITIES
NON -CASH CAPITAL ACTIVITIES
Contributions of capital assets
The Notes to Financial Statements are an integral part of this statement.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Utility Fund
$ 12,990,448
2,680,565
(497,420)
20,090
855
50,259
(116,212)
3,753,149
12,962
162,243
126,082
$ 19,183,021
$ 4,125,890
33
City of Anna, Texas
Statement of Fiduciary Net Position
Custodial Fund
September 30, 2022
ASSETS
Cash and cash equivalents -restricted
Receivables, net
Total assets
LIABILITIES
Accounts Payable
Total liabilities
NET POSITION
Restricted for PI D debt service
Total net position
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
PID Custodial
Fund
$ 2,183,378
8,030
2,191,408
11,600
11,600
2,179,808
2,179,808
The Notes to Financial Statements are an integral part of this statement.
34
City of Anna, Texas
Statement of Fiduciary Revenues, Expenses, and Changes
in Net Position - Custodial Fund
September 30, 2022
ADDITIONS
Contributions
Investment earnings
Other income
Total additions
DEDUCTIONS
Contract services
Principal
Interest and Fiscal charges
Total deductions
CHANGE IN NET POSITION
NET POSITION - beginning
NET POSITION - ending
The Notes to Financial Statements are an integral part of this statement.
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
PID Custodial
Fund
$ 1,178,068
11,575
8,030
1,197,673
145,289
165,000
1,281,314
1,591,603
(393,930)
2,573,738
$ 2,179,808
35
City of Anna, Texas
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies
A. Reporting Entity
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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
special revenue fund of the City. The members of the PFC's board of seven directors 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.
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 component units of the City and are
included in the basic financial statements:
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.
36
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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. 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. Adding the creation of the EDC, CDC, and HFC to the resources currently
available significantly increases the City's ability to assist 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 organization is such that exclusion would
cause the City's financial statements to be misleading or incomplete. Separate financial statements are
not issued for the EDC or the CDC.
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 and internal service
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.
Rf1
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Notes to Financial Statements or distributed
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, 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 capital projects fund is considered a major fund for
reporting purposes.
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 the Hurricane Creeks PID.
The grant fund is used to account for proceeds and expenditures relating to all grants.
The park development fund is used to account for park development fees from developer
agreements or the subdivision ordinance in support of the City's parks master plan.
The road capital development agreement Fund is used to account for negotiated developer
agreements for road and street impact fees.
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, federal police seizure fund, public facility corporation, Tax Increment Zone Number 2 (TIRZ #2)
and other special revenue fund.
The City reports the following enterprise fund:
The Utility Fund is used to account for the provision of water, sewer, and 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.
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.
m
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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 and internal service funds) are eliminated so
that only the net amount is included as internal balances in the 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 right -to -use lease liabilities are reported as other financing sources.
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.
39
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
F.Assets, Liabilities, Deferred Oufflows/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, balances
in local government investment pools, and short-term investments with original maturities of three
months or less from the date of acquisition. For the purpose of the statement of cash flows, the
proprietary fund types consider temporary investments with maturity of three months or less when
purchased to be cash equivalents.
The City maintains pooled cash and investment accounts. Each fund whose monies are deposited in
the pooled cash and investment accounts has equity therein, and interest earned on the investment of
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 Inferfund 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
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.
40
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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.
Interest costs incurred during the construction phase of capital assets of business -type activities
acquired with tax-exempt debt is included as part of the capitalized value of the assets constructed.
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:
Estimated
Asset Description Useful Life
Buildings
20 years
Water and sewer system
35years
Equipment
3-20 years
Streets
20 years
Deferred Ouff►ows/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 position 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 charge on refunding bonds 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 other postemployment benefit liabilities result from
differences in projected and actual earnings on plan investments, 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 projected and actual earnings differences on investments,
which are amortized on a closed basis over a 5-year period, and 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 position (or fund balance) that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has
the following items that qualify for reporting in this category:
In the governmental funds balance sheet:
• Unavailable revenues from property taxes and grants are deferred and recognized as an inflow
of resources in the period that the amounts become available.
• Related to lessor arrangements, lease revenue is deferred and recognized as revenue over the
life of the lease term.
41
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subjecl to final review and possible
revision and should not be relied upon
or distributed
In the government -wide and proprietary fund statements of net DOsltlon:
Deferred inflows related to net pension and 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 plan, except for projected and actual earnings differences on investments,
which are amortized on a closed basis over a 5-year period.
6. Compensated Absences
The City maintains formal programs for vacation and sick leave. Eligible employees are granted
vacation pay benefits in varying amounts to specified maximums depending on tenure with the City.
The City's personnel policy permits its eligible employees to accumulate earned but unused vacation
pay benefits.
Compensation for accrued sick leave is paid upon separation up to maximum benefits in varying
amounts, depending on tenure with the City.
The estimated amount of accrued vacation and sick pay benefits that is expected to be liquidated
with expendable available financial resources is reported as an expenditure and a fund liability of the
governmental fund that will pay it upon maturity. Amounts of accrued vacation pay benefits that are
not expected to be liquidated with expendable available financial resources are maintained
separately and represent a reconciling item between the fund and government -wide presentations.
7. 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
shorted 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, variable payments fixed in substance or that depend on an index or a rate, purchase
option price that the City is reasonably certain to exercise, lease incentives receivable from the
lessor, 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 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.
EPA
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Lessor
The City is a lessor for nonconcellable 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 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, variable payments from the lessee that are fixed in substance or that
depend on an index or a rate, residual value guarantee payments from the lessee that are fixed
in substance, 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.
8. Long -Term Obligations
The government -wide financial statements and proprietary fund type fund financial statements report
long-term debt and other long-term liabilities in the applicable governmental activities, business -type
activities, or proprietary fund type statement of net position. Bond premiums and discounts are
amortized over the life of the bonds using the effective interest method, if material. 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.
43
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
9. 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 some 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.
10. Other Postemployment Benefits (OPEB)
The City offers one OPEB plan, a 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.
11. 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.
12. 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.
13. 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.
44
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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.
14. 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.
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 b% 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.
45
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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 on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
H. GASB Pronouncements implemented by the City
GASB Statement No. 87, Leases. This Statement was issued in June 2017 and increases the usefulness of
governmental financial statements by requiring recognition of certain lease assets and liabilities for
leases that previously were classified as operating leases and recognized as inflows of resources or
outflows of resources based on the payment provisions of the contract. The requirements of this
Statement were effective for reporting periods beginning after June 15, 2021. The City has
implemented this Statement in fiscal year 2022.
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, Debt Service, Grant and Utility Funds. 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.
Budgetary Variances
Expenditures exceeded appropriations during fiscal year 2022 in the following funds/functions:
General Fund
o General government ($957,365)
Grant Fund
o Public safety ($13,497)
Park Development Fund
o Culture and recreation ($164,601)
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, 2022, with collateral required by state statutes. At year-end, the carrying
amount of the City's deposits (including component units and fiduciary funds) was $71,828,907 and the
bank balance was $71,989,833. 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.
46
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Cash and cash equivalents as of September 30, 2022 consist of and are classified in the accompanying
financial statements as follows:
Statement of net position:
Primary government:
Cash and cash equivalents $ 35,600,951
Restricted cash and cash equivalents 47,393,815
Total primary government 82,994,766
Fiduciary Fund:
Cash and cash equivalents 2,183,378
Component units:
Cash and cash equivalents
9,413,819
Total cash and investments
$
94,591,963
Cash on hand
$
2,000
Deposits with financial institution
71,828,907
Investment pools / money market
22,761,056
Total cash and investments
$
94,591,963
As of September 30, 2022, the City had the following investments:
Texas CLASS
TexPool
Money market accounts
Total
Weighted
Average
Maturity
Value
(Years)
$ 1,869,287
0.0849
19,662,818
0.0658
1,228,951
$ 22,761,056
Interest rate risk
Interest rate risk is the risk that changes in interest rates 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.
47
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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, 2022, 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, 2022,
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.
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 is included in cash
equivalents, and its investments in certificates of deposit, which are measured based on cost. These
instruments are exempt from categorization within the fair value hierarchy.
W
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
TexPool
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
The following comprise receivable balances of the primary government as of September 30, 2022:
Capital Debt Service PID Capital
General Projects Fund Projects Grant Fund Utility Fund Total
Property taxes
$ 85,995 $ - $
22,204 $ - $ - $ -
$ 108,199
Sales taxes
692,646 -
- - - -
692,646
Accounts
233,174 -
- - 1,612 2,790,497
3,025,283
Interest
6.500 -
- 10,941 - 20,879
38,320
Intergovernmental
- 41,396
- - - -
41,396
Lease receivable
511,279 -
- - - -
511,279
Less: Allowance
- -
- - - (384,434)
(384,434)
Totals
$ 1,529,594 $ 41,396 $
22,204 $ 10,941 $ 1,612 $ 2,426,942
$ 4,032,689
49
City of Anna, Texas
Notes to Financial Statements
Note 5. Capital Assets
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The following is a summary of changes in capital assets for governmental activities for the year ended
September30, 2022:
Beginning Adjustments / Ending
Balance Additions Dispositions Transfers Balance
Governmental activities:
Capital assets, not being depreciated/amortized:
Land
$ 3,978.343
$ - $
- $ - $ 3,978,343
Construction in progress
36,812,195
15,065,254
- - 51,877,449
Total capital assets, not being
depreciated/amortized
40,790,538
15,065,254
- - 55,855,792
Capital assets, being depreciated/amortized:
Park inprov ements
6.185,471
-
- - 6,185,471
Buildings
1,542,758
-
- - 1,542,758
Furniture and fixtures
33,911
-
- - 33,911
Streets and drainage
67,358,810
8,977,439
- - 76,336,249
Machinery and equipment
4,570,077
238,863
- - 4,808,940
Right -to -use leased assets - vehicles
-
1.541,966
- - 1,541,966
Total capital assets being depreciated/amortized
79,691,027
10,758268
- - 90,449,295
Less accumulated depreciation/amortization for:
Park improvements
2,946,005
319,724
- - 3,265,729
Buildings
741,430
79,411
- - 820.841
Furniture and fixtures
28.500
714
- - 29,214
Streets and drainage
17,039,095
3,607,912
- - 20,647,007
Machinery and equipment
2,863,823
515,433
- - 3,379,256
Right -to -use leased assets - vehicles
-
671.018
- - 671,018
Total accumulated depreciation/amortization
23,618,953
5,194,212
- - 28.813,065
Total capital assets being depreciated/amortized, net
56,072,174
5,564,056
- - 61.636,230
Governmental activities capital assets, net
$ 96,862,712
$ 20.629.310 $
- $ - $ 117,492,022
Depreciation expense was charged to governmental functions as follows:
Governmental activities:
General government $ 717,297
Culture and recreation 461,204
Community services 9,939
Public safety 488,522
Public works 3,517,250
Total depreciation/amortization expense -
governmental activities $ 5,194,212
50
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The following is a summary of changes in capital assets for business -type activities for the year ended
September 30, 2022:
Business -type activities:
Capital assets, not being depreciated/amortized:
Land
Construction in progress
Total capital assets, not being
depreciated/omtorlized
Capital assets, being depreciated/amortized:
Furniture and fixtures
Buildings and improvements
Machinery and equipment
Right -to -use leased assets - vehicles
Water treatment system
GTJA water improvements
CILIA sewer improvements
Water and sewer system
Total capital assets being deprecioted/amortized
Less accumulated depreciation/amortization for:
Furniture and fixtures
Buildings and improvements
Machinery and equipment
Right -to -use leased assets - vehicles
Water treatment system
GW A water improvements
GTUA sewer improvements
Water and sewer system
Total accumulated depreciation/amortization
Total capital assets being depreciated/amortized, net
Business -type activities capital assets, net
Beginning
Adjustments / Ending
Balance Additions Dispositions
Transfers Balance
$ 1,260,143 $ 100,000 $ -
$ - $ 1.360.143
1.559,197 5.053,855 -
- 6,613.052
2,819,340 5,153,855 - - 7,973,195
5,620
- -
- 5,620
486244
- -
- 486,244
2,370,368
362,064 -
- 2,732,432
-
305,573 -
- 305,573
23.178,054
1,918,345 -
- 25,096,399
17,189,179
- -
- 17,189,179
939,796
- -
- 939,796
38,437,907
2,207,545 -
- 40.645,452
82,607,168 4,793,527 - - 87,400,695
5,620
-
- - 5,620
267,423
25,533
- - 292,956
1.847,203
109,343
- - 1,956,546
-
180,587
- - 180,587
5,022,965
711,073
- - 5,734,038
5,610,690
509,895
- - 6,120,585
800,786
27,966
- - 828,752
8,812,780
1.296,755
- - 10,109,535
22,367,467
2.861.152
- - 25,228,619
60,239,701
1.932,375
- - 62,172,076
$ 63,059,041 $
7,086,230 $
- $ - $ 70,145271
Depreciation expense was charged to business -type functions as follows:
Water and sewer
Total depreciation/amortization expense -
business -type activities
$ 2,861,152
$ 2,861,152
51
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The following is a summary of changes in capital assets for component units for the year ended
September 30, 2022:
Beginning
Ending
Balance
Additions Dispositions
Balance
Community Development Corporation:
Capital assets, not being depreciated:
Land
$ 2,757,904
$ (2,757,904) $ -
$ -
Total capital assets, not being depreciated
2,757,904
(2.757,904) -
-
Community Development Corporation capital assets, net
$ 2,757,904
$ (2,757,904) $ -
$ -
Beginning
Ending
Balance
Additions Dispositions
Balance
Economic Development Corporation:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Depreciable assets:
Buildings and improvements
Furniture and fixtures
Total depreciable assets
Less accumulated depreciation for:
Buildings and improvements
Furniture and fixtures
Total accumulated depreciation
Total depreciable assets, net
Economic Development Corporation capital assets, net
$ 90,346 $ (50,000) $ - $ 40,346
90,346 (50,000) - 40,346
366,589 - - 366,589
13,871 - - 13,871
380,460 - - 380,460
166,621 18,459 - 185,080
6,566 1,391 - 7,957
173,187 19,850 - 193,037
207,273 (19,850) - 187,423
$ 297,619 $ (69,850) $ - $ 227,769
52
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Remaining commitments under related construction contracts for general government and utility
construction projects at year end were as follows:
Projects
Opinion
U nit
Sherley Park Improvements
General government
Johnson Park Improvements
General government
City Hall/Municipal Complex
General government
Ferguson Parkway
General government
Rosamond Parkway Extension
General government
Hockberry Drive Reconstruction
General government
Aerial/Ladder Fire Truck
General government
Community Library
General government
Fire Station No. 2
General government
Skate Park
General government
Foster Crossing Road
General government
Taylor Boulevard
General government
Hurricane CreekPlD - MIA
General government
Hurricane CreekPlD -IA#I
General government
Sherley Tract - M I A
General government
Sherley Tract - I A # 1
General government
US 75 Utility Relocation - Phase 2
General government
East Fork Regions Sewer
Utility
Oak Ridge Sewer
Utility
Throckmortion Creek Trunk Sewer Expansion U tility
State Highway 5 Utility Relocation
Utility
Collin Pump Station Upgrade
Utility
Slayter Creek Park Improvements
General government
Bryant Park Improvements
General government
Community Recreation Center
General government
Hurricane Creek Regional WWTP
Utility
Total
Approved
Construction
Budget
Stored and
Completed
To Date
Remaining
Commitment
$ 787,838
$ 432,625
$ 355,213
625,000
489,314
135,686
30,910,000
30,772,558
137,442
2,092,188
380,083
1,712,105
7,771,929
1,797,782
5,974,147
1,460,000
197,625
1,262,375
1,660,000
1,619,969
40,031
22,010,000
416,883
21,593,117
11,000,000
11,645
10,988,355
1,982,125
-
1,982,125
989,065
989,065
-
1,229,860
181,359
1,048,501
2,408,234
2,082,377
325,857
6,474,557
6,432,227
42,330
2,259, 650
1,009,812
1,249,838
11,664,656
5,060,020
6,604,636
128,058
107,064
20,994
954,857
764,648
190,209
63,730
35,273
28,457
335,732
210,041
125,691
338,692
163,107
175,585
3,616,213
729,955
2,886,258
5,804,567
74,934
5,729,633
864,000
113,857
750,143
15,580,000
-
15,580,000
85,000,000
2,451,542
82,548,458
$ 218,010,951
$ 56,523,764
$ 161,487,187
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.
53
City of Anna, Texas
Notes to Financial Statements
Note 6. Long-term Liabilities
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The following is a summary of changes in the City's total long-term liabilities for the year ended
September 30, 2022. In general, the City uses the general and debt service funds to liquidate
governmental long-term liabilities.
Amounts
Beginning
Ending
Due Within
Balance
Additions
Reductions
Balance
One Year
Governmental activities:
Bonds, notes and other payables:
General obligation bonds
$ 9,494,000
$ -
$ (251,000)
$ 9,243,000
$ 272,000
Certificates of obligation
30,425,000
-
(215,000)
30,210,000
215,000
Combination tax and revenue refunding bonds
375,000
-
(40,000)
335.000
35,000
Financed purchases
346,060
-
(44,001)
302,059
45.700
Right -to -use lease liability
-
1,541.966
(646.704)
895.262
-
Unarnortizedprerriums
2,098.685
-
(117.706)
1.980,979
-
Total bonds, notes and other payables, net
42,738,745
1.541.966
(1,314,411)
42,966,300
567.700
Other liabifities:
Compensated absences
409,398
941,673
(276,3401
1,074,731
-
Net pension liability
837,502
-
(267,7441
569,758
-
Total other postemployment benefit liability
108,822
21,620
-
130,442
-
Total governmental activities
$ 44.094.467
$ 2,505,259
$ (1,858.4951
$ 44,741,231
$ 567,700
Amounts
Beginning
Ending
Due Within
Balance
Additions
Reductions
Balance
One Year
Business -type activities:
Bonds, notes and other payables:
Contract revenue bonds
$ 2,858,333
$ -
$ (299,583)
$ 2,558,750
$ 320,000
TWDB participation agreement
2,168,750
-
-
2,168,750
-
Combination tax and revenue certificates of obligation
61605.000
-
(90.000)
6,515,000
100.000
Combination tax and revenue refunding bonds
6,925.000
-
(635,000)
6,290,000
654.000
Financed purchases
1,228,121
-
(171,490)
1,056.631
173,783
Right -to -use lease liability
-
305.573
(175.931)
129,642
-
Unamortizedprerriums(discounts)
1,159,439
-
(138,263)
1,021,176
-
Total bonds. notes and other payables, net
20,944,643
305,573
(1,510,267)
19,739,949
1.247,783
Other liabifities:
Compensated absences
100,438
169,875
(43.793)
226.520
-
Net pension liability
225,481
-
(112,728)
112,753
-
Total other postemployment benefit liability
29,298
-
(3,484)
25,814
-
Total business -type activities
$ 21,299,860
$ 475,448
$ (1,670272)
$ 20,105,036
$ 1,247,783
Amounts
Beginning
Ending
Due Within
Balance
Additions
Reductions
Balance
One Year
Component Units - CDC:
Bonds, notes and other payables:
Sales tax revenue bonds
$ 2,645,000
$ -
$ (160,000)
$ 2,485,000
$ 160,000
Other liabilities:
Compensated absences
13,958
18.204
(9.1831
22,979
-
Net pension liability
10,737
9,865
20,602
-
Total other postemployment benefit liability
1,395
3,322
-
4,717
-
54
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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, 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.
Long-term debt at year end was comprised of the following debt issues:
Interest
Description Rates Balance
Governmental activities:
General obligation refunding bonds
Series 2014B 0.30 - 2.40 % $ 833,000
Series 2021 2.00-5.00 % 8,410,000
Total general obligation bonds 9,243,000
Certificates of obligation
Series 2018 3.00 - 4.00 % 30,210,000
Total certificates of obligation 30,210,000
Combination tax and revenue refunding bonds
Series 2017 2.00 - 4.00 % 335,000
Total certificates of obligation 335,000
Financed purchases
2018 Pierce Enforcer 3.86% 302,059
Total financed purchases 302,059
Total governmental activities long-term debt $ 40,090,059
55
City of Anna, Texas
Notes to Financial Statements
Description
Business -type activities:
Contract revenue and revenue refunding bonds
Series 2006 GTUA Contract Revenue Bonds (12 &15)
2007 GTUA Contract
CGMA Pipeline Project Phase I
CGMA Pipeline Project Phase III
Total contract revenue and revenue refunding bonds
TWDB state participation agreement
CGMA Pipeline Project Phase II
Total TWDB state participation agreement
Combination tax & revenue certificates of obligation
Series2014
Series2021
Total combination tax & revenue certificates of obligation
Combination tax and revenue refunding bonds
Series2014A
Series2017
Total combination tax and revenue refunding bonds
Financed purchases
2017 AMI Meters
Total financed purchases
Total business -type activities long-term debt
Component units:
Sales Tax Revenue Bonds
CDC - Sales Tax Revenue Bonds - Series 2012E
CDC - Sales Tax Revenue Bonds - Series 2016
Total CDC long-term debt
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Interest
Rates Balance
2.95 - 3.75 %
$ 555,000
2.95 - 4.10 %
900,000
2.29 - 5.74 %
270,000
2.67 - 5.62 %
833,750
2,558,750
5.68 - 5.83 % 2,168,750
2,168,750
2.00 - 2.65 % 3,655,000
2.00-5.00 % 2,860,000
6,515,000
2.11 % 1,260,000
2.00 - 4.00 % 5,030,000
6,290,000
2.00% 1,056,631
$ 18,589,131
3.30% $ 1,185,000
1.9% - 4.57 1,300,000
$ 2,485,000
49
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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
Year Ending
GO Bonds
CO Bonds
Combination Tax and Revenue
September 30,
Principal Interest
Principal
Interest
Principal
Interest
2023
$ 272,000 $
284,159
$ 215,000
$ 1.242.950
$ 35,000
$ 12,700
2024
493,000
270,817
235.000
1,233,950
35,000
11,300
2025
529,000
250,886
240,000
1,224,450
25,000
10,100
2026
549,000
229,488
250,000
1,214,650
25,000
9,100
2027
1,500,000
902,750
3,885,000
5,662,875
215,000
12,500
2028-2032
1,755,000
555,750
6,605,000
4,438,100
-
-
2033-2037
1,965,000
345,200
7,110,000
3,032,000
-
-
2038-2042
2,180,000
124,650
7,995,000
1,559,900
-
-
2043-2047
3,675,000
148,500
-
-
2048
-
-
-
-
-
-
Totals $ 9,243,000 $ 2,963,700 $ 30,210,000 $ 19,757,375 $ 335,000 $ 55,700
Business -type Activities
Year Ending 1WDB State Participation Combination Tax and Revenue
Contract Revenue Bonds Agreement Certificates of Obligation
September 30, Principal Interest Principal Interest Principal Interest
2023
$ 320,000 $
118,496 $
- $
125,206
$ 100,000 $
265,838
2024
332,500
105,503
-
125,206
135,000
261,913
2025
355,000
91,820
-
125,206
165,000
257,013
2026
378,750
76,879
95,000
125,206
340,000
248,200
2027
708.750
227,781
562,500
538,167
3,640,000
835.456
2028-2032
463,750
68.107
745,000
356,734
2,135,000
107,338
2033-2037
-
-
766,250
114,690
-
-
Totals
$
2,558,750
$
688,586 $ 2,168,750
Year Ending
Combination Tax and
Revenue
September 30,
Principal
Interest
2023
$
654,000
$
232,313
2024
649,000
208,528
2025
645,000
184,452
2026
492,000
163,176
2027
2,550,000
544,800
2028-2032
1,300,000
52,000
Totals
$
6,290,000
$
1,385,269
$ 1,510,415 $ 6,515,000 $ 1,975,756
57
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Year Ending Combination Tax and Revenue
September30, Principal Interest
2023
$ 100,000 $
93,865
2024
115,000
90,278
2025
135,000
86,013
2026
150,000
81,050
2027
1,065,000
303,908
2028-2032
780,000
105,203
2033-2037
140,000
3,150
Totals $ 2,485,000 $ 763,467
Total matured and unmatured bonds outstanding related to special assessment and special tax districts
are $23,101,000 at September 30, 2022. 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. 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.
Contractual Obligations with Greater Texoma Utility Authority
Under the terms of long term water supply and sewer service contracts between the City and Greater
Texoma Utility Authority (GTUA), the City recognizes that GTUA has an undivided ownership interest in
the City's water system and sewer collection and treatment facility equivalent to the percentage of the
total cost of the facility provided by GTUA through the issuance of GTUA bonds.
The City has a contractual obligation to make payments specified by the contract to GTUA to pay the
principal and interest on the bonds, maintain a Reserve Fund for the security and payment of bonds
similarly secured, pay the administrative and overhead expenses of GTUA directly attributable to the
bonds, and pay any extraordinary expenses incurred by GTUA in connection with the bonds. Under
terms of the contracts the City's obligation to make payments to GTUA, as well as GTUA's ownership
interest in the facilities terminates, when all of GTUA's bonds issued in connection with construction of
the facilities have been paid in full, are retired, and are no longer outstanding.
Collin Grayson Municipal Alliance Transmission Water Pipeline
in 2004, the City, along with the City of Van Alstyne, Howe, and Melissa, formed a group called the
Collin Grayson Municipal Alliance ("CGMA"). CGMA entered into a long-term contractual obligation
with GTUA for the purpose of providing funds for the construction of a transmission water pipeline that
will provide water to CGMA cities. The cost of the pipeline is being funded in four phases.
F%3
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Each CMGA city was required to make payments to GTUA in an amount equivalent to 25% of the total
obligation to cover their portion of the cost of the obligation until the pipeline project was completed.
As water continues to flow to each CGMA city, the City shall be charged it's percentage or fraction
share of debt service on the obligation based upon the amount of water to be paid by the City under
its water contract (i.e. the greater of its minimum take -or -pay amount or the actual amount of water
taken) divided by the total amount of water to be paid by all CGMA cities. The sum of the four (4)
fractional amounts shall always equal 100% of the debt service on the contractual obligation with
GTUA. The billing rates for each City will be calculated to provide funds necessary to cover the
contractual obligation, interest, repairs, maintenance, and production costs.
At the end of the contractual obligation with GTUA, the City will own an undivided interest in the
transmission water pipeline based on the percentage of water it utilized and paid for during the
contract term. The contract will expire and the transfer of ownership will occur during the fiscal year
ended September 30, 2040, as long as no new debt is issued.
Financed Purchases
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 November 28, 2016, the City entered into a financed purchase to finance the acquisition of water
meters which is payable from the utility fund.
The assets acquired through financed purchases as of September 30, 2022 are as follows:
Governmental Business -type
Activities Activities
Assets:
Fire apparatus $ 485,068 $ -
Water meters - 1,340,010
Sewer cleaner truck 441,360
Less: Accumulated depreciation (184,421) (666,252)
Total $ 300,647 $ 1,115,118
59
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The future minimum lease obligations and the net present value of these minimum lease payments as of
September 30, 2022 are as follows:
Year Ending Governmental Business -type
September30, Activities Activities
2023
$ 57,349 $
201,214
2024
57,349
201,214
2025
57,349
201,214
2026
57,349
201,214
2027-2028
114,698
355,913
Total minimum future lease payments 344,094 1,160,769
Less: amount representing interest (42,035) (104,138)
Present value of minimum lease payments $ 302,059 $ 1,056,631
Right -to -Use 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 Liability at Lease Term Ending
Rate Commencement in Years Balance
Governmental activities
Vehicles Various $ 1,541,966 5 $ 895,262
Total governmental activities $ 895,262
Business -type activities
Vehicles Various 305,573 5 $ 129,641
Total business -type activities $ 129,641
M
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The future principal and interest lease payments as of fiscal year end are as follows:
Fiscal Year Governmental Business -Type
Ending Activities Activities
2023
$ 363,560 $
64,027
2024
270,927
38,862
2025
212,309
23,861
2026
154,867
17,108
2027
86,881
11,442
Total minimum lease payments
Less: amount representing interest
Present value of minimum
lease payments
1,088,544 155,300
(193,282) (25,658)
$ 895,262 $ 129,642
The value of the right -to -use leased assets as of the end of the current fiscal year was $1,541,966 with
accumulated amortization $671,018 for the governmental activities, and $305,573 with accumulated
depreciation of $180,587 for the business -type activities.
Note 7. Interfund Balances and Activity
1. Interfund Receivables and Payables
Interfund balances consist of short-term lending/borrowing arrangements that have resulted primarily
from expenditures that are paid by one fund and then charged back to the appropriate other fund.
Additionally, some lending/borrowing may occur between two or more governmental funds due to
earned revenues not being received from outside agencies until the subsequent year. There were no
interfund balances as of September 30, 2022.
2. Interfund Transfers
Transfers between funds during the year were as follows:
Transfers Out Transfers In Amounts
Nonmajor Funds Capital Projects Fund $ 292,407
Nonmajor Funds Nonmajor Funds 3,021
Totals $ 295,428
Transfers to the capital project fund were for the road project.
M
City of Anna, Texas
Notes to Financial Statements
Note B. Other Information
A. Risk Management
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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.
Note 9. Defined Benefit Pension Plan
Plan Description
The City and three of its component units participate as one of 901 plans in the nontraditional, joint
contributory, hybrid defined benefit agent multiple -employer pension plan administered by the Texas
Municipal Retirement System (TMRS). TMRS, an agency created by the State of Texas and administered
in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (TMRS Act) is an agent
multiple -employer retirement system for municipal employees in the State of Texas. The TMRS Act places
the general administration and management of the System with a six -member Board of Trustees.
Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not
fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax -qualified plan
under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available annual
comprehensive financial report (ACFR) that can be obtained at www.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 City were as follows:
Employee deposit rate
Matching ratio (City to employee)
Years required for vesting
Service requirement eligibility
(expresed as age/years of service)
Updated service credit
2021
7.00%
2 to 1
60/5, 0/20
75% Repeating,
Transfers
2020
7.00%
2 to 1
60/5,0/20
75% Repeating,
Transfers
Annuity increase (to retirees) 70%of CPI Repeating 707.of CPI Repeating
62
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Employees Covered by Benefit Terms
At the December 31, 2021 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 18
Inactive employees entitled to but not yet receiving benefits 64
Active employees 129
Total 211
Contributions
Member contribution rates in TMRS are either 5%, 6% or 7% of the member's total compensation, and
the city matching ratios are either 1:1(1 to 1), 1.5:1 (1 '/2 to 1) or 2:1 (2 to 1), 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 14.09% and 13.57% in calendar years 2021 and 2022,
respectively. The City's contributions to TMRS for the year ended September 30, 2022, were $1,240,283,
and were equal to the required contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2021, 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, 2021 actuarial valuation was determined using the
following actuarial assumptions:
I nflation 2.5% per year
Overall payroll growth 2.7597 per year, adjusted down for population declines, if any
Investment rate of return 6.757., net of pension plan investment expense, including inflation
Salary increases are based on a service -related table. Mortality rates for active members are based on
the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table
used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender -distinct
2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries
are projected on a fully generational basis by Scale UMP to account for future mortality improvements.
For disabled annuitants, the same mortality tables for healthy retirees is used with a 4- year set -forward
for males and a 3-year set -forward for females. In addition, a 3.5% and 3.07o 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 Scale LIMP to account for
future mortality improvements subject to the floor.
r1K
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The actuarial assumptions were developed primarily from the actuarial investigation of the experience
of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted
in 2019 and first used in the December 31, 2019 actuarial valuation. The post -retirement mortality
assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study
covering 2019 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 the production of income in order 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 using a building-
block method in which best estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
In determining their best estimate of a recommended investment return assumption under the various
alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean
(aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative)
with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return
for each major asset class in fiscal year 2022 are summarized in the following table:
Long-term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity
35.07
7.557.
Core Fixed Income
6.07
2.00%
Non -Core Fixed Income
20.0%,
5.68%
Other public and private markets
12.0%
7.22%
Real Estate
12.0%
6.85%
Hedge funds
5.07
5.357
Private Equity
10.07
10.007
Total
100.07
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.
64
City of Anna, Texas
Notes to Financial Statements
Changes in Net Pension Liability
Balance at December 31. 2019
Changes for the year:
Service cost
Interest
Change of benefit terms
Difference between expected and actual
experience
Changes of assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other changes
Netchanges
Balance at December 31. 2020
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 11,006,117 $ 9,932,397 $ 1,073,720
1,689,215 - 1,689,215
789,622 - 789,622
301,846 301,846
1,240,283 (1,240,283)
- 616,181 (616,181)
- 1,300,777 (1,300,777)
(305,245) (305,245) -
(5,991) 5,991
41 (41)
2,475,438 2,846,046 (370,608)
$ 13,481,555 $ 12,778,443 $ 703,112
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City and its component units, 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
Discount Rate
(5.75%)
1 % Increase in
Discount Rate Discount Rate
(6.75%) (7.75%)
Net pension liability (asset) $ 3,201,058 $ 703,112 $ (1,278,774)
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, 2022, the City recognized pension expense of $1,080,502.
65
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between expected and
actual economic experience
$ 423,102
$ 12,167
Changes in actuarial assumptions
24,256
-
Difference between projected and
actual investment earnings
-
657,633
Contributions subsequent to the
measurement date
1,050,136
-
Totals
$ 1,497,494
$ 669,800
$1,050,136 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, 2022. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2022
$ (31,304)
2023
(137,802)
2024
(25,684)
2025
(63,788)
2026
36,136
Thereafter
-
Totals $ (222,442)
Note 10. 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 I of any year to be effective the following January 1.
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. 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).
m
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Contributions
The member city contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. 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. The intent is not to pre -fund retiree term life insurance during
employees' entire careers.
At the December 31, 2021 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees currently receiving benefits 13
Inactive employees entitled to but not yet receiving benefit 9
Active employees 129
Total
151
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, 2021 actuarial valuation are as follows:
Inflation 2.5% per year
Salary increases 3.5% to 11.5% including inflation
Discount rate 1.84% as of December 31, 2021
Source: Fidelity Index's "20-Year Municipal GO AA Index'
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.
Mortality rates -service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected
on a fully generational basis with Scale UMP
Mortality rates -disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year set-forwarc
for males and a 3 year set -forward for females. In addition, o 3.5% and 31,
minimum mortality rate will be applied to reflect the impairment for younc
members who become disabled for males and females, respectively. Th<
rates are projected on a fully generational basis by Scale U M P to accour
for future mortality improvements subject to the floor.
Note: The actuarial assumptions used in the December 31, 2021 valuation were based on the results of
an actuarial experience study for the period December 31, 2014 to December 31, 2018.
Total OPEB Liability
The City's total OPEB liability of $160,972 was measured as of December 31, 2021, and was determined
by an actuarial valuation as of that date.
67
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
The total OPEB liability and related information are as follows for the City at September 30, 2022:.
Total OPEB
Liability
Balance at December 31, 2020
$ 139,516
Changes for the year:
Service cost
24,647
Interest on Total OPEB Liability
3,019
Change of benefit terms
-
Difference between expected and actual experience
(10,814)
Changes of assumptions or other inputs
6,365
Benefit payments
(1,761)
Net changes
21,456
Balance at December 31, 2021
$ 160,972
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2022, the City recognized OPEB expense of $32,803.
At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Differences between expected
and actual experience
Changes in actuarial assumptions
and other inputs
Contributions made subsequent
to the measurement date
Totals
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 8,544 $ 12,090
38,151 2,908
1,546
$ 48,241 $ 14,998
Benefit payments subsequent to the measurement date and before fiscal year-end of $1,546 will be
recognized as a reduction of the total OPEB liability in the year ending September 30, 2023.
Other amounts reported as deferred outflows related to OPEBs will be recognized in OPEB expense as
follows:
Year Ending
September 30
2023 $
5,137
2024
5,137
2025
5,137
2026
5,008
2027
4,747
Thereafter
6,531
Totals $ 31,697
m
City of Anna, Texas
Notes to Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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 1.84%, 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 (0.847.) or 1-percentage-point higher (2.84%) than the current discount rate:
1 % Decrease in
1 % Increase in
Discount Rate Discount Rate Discount Rate
(1.00%) (2.00%) (3.00%)
206,799 $ 160,972 $ 126,475
Note 11. 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.
Note 12. 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 13. Anna Capri 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 Anna Capri Public Improvement District consists of
approximately 279.554 acres located within the corporate city limits of the City. This district was created
in accordance with Chapter 372.003 of the Texas Local Government Code, as amended.
m
City of Anna, Texas
Notes to Financial Statements
Note 14. Subsequent Events
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
On September 1, 2022, the City issued $64,845,000 in Combination Tax and Revenue Certificates of
Obligations, Series 2022. Proceeds from the sale of the Certificates will be used for acquiring,
constructing, installing, and equipping additions, improvements, extensions, and equipment for the
City's sewer system, including wastewater treatment plant and related infrastructure improvements and
the acquisition of land and interests in land as necessary therefor. As of September 30, 2022 no sales
had been made or proceeds received. On October 11, 2022, the City closed on $32,465,000 in General
Obligation Bonds, Series 2022.
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 Humcan Creek
Public Improvement District.
70
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
nna
FAI
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Required Supplementary Information
72
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Schedule of Revenues, Expenditures, and Changes or distributed
in Fund Balance - Budget and Actual
General Fund
For the Year Ended September 30, 2022
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
REVENUES
Property taxes
$ 8,015,000
$ 8,015,000
$ 8,004,989
$ (10,011)
Sales taxes
2,760,000
3,296,370
3,847,911
551,541
Charges for services
154,700
154,700
285,779
131,079
License and permits
3,625,000
3,659,960
5,752,179
2,092,219
Franchise and local taxes
485,000
485,000
888,723
403,723
I nvestment income
30,000
30,000
90,387
60,387
Other revenues
16,300
16,300
151,464
135,164
Intergovernmental
48,395
48,395
47,640
(755)
Fines and forfeitures
90,000
90,000
241,274
151,274
Contributions and donations
-
3,050
3,050
Total revenues
15,224,395
15,795,725
19,313,396
3,517,671
EXPENDITURES
Current:
General government
4,082,778
4,082,778
5,040,143
(957,365)
Culture and recreation
1,382,826
1,382,826
1,345,005
37,821
Community services
1,241,433
1,276,393
1,145,841
130,552
Public safety
7,579,707
7,623,277
7,432,334
190,943
Public works
864,651
864,651
777,565
87,086
Debt service
Principal
44,001
44,001
44,001
-
Interest and fiscal charges
13,358
13,358
13,358
Capital outlay
-
22,500
1,666,327
(1,643,827)
Total expenditures
15,208,754
15,309,784
17,464,574
(2,154,790)
Excess (deficiency) of revenues
over (under) expenditures
15,641
485,941
1,848,822
1,362,881
OTHER FINANCING SOURCES (USES)
Transfers out
(400,000)
(900,000)
- 900,000
Total other financing sources (uses
(400,000)
(900,000)
- 900,000
Net change in fund balance
(384,359)
(414,059)
1,848,822 2,262,881
Beginning fund balance
6,572,245
6,572,245
6,572,245 -
ENDING FUND BALANCE $
6,187,886 $
6,158,186 $
8,421,067 $ 2,262,881
Notes to Schedule
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
73
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to Mal review and possible
revision and should not be relied upon
Schedule of Changes in the Net Pension Liability or distributed
and Related Ratios -TMRS
Last Eight Measurement Periods
2021
2020
2019
2018
2017
2016
2015
2014
TOTAL PENSION LIABILITY
Service cost
$ 1,689,215
$ 1,282,433
$
1,008,055
$ 860.365
$
698,771
$ 608,067
$
527,867
$ 429,268
Interest
789.622
665,239
S46.834
464,692
398,225
343,924
309,015
277,884
Changes of benefit terns
-
-
-
-
-
Differences between expected
and actual experience
301,89
31,578
294,521
13.331
(9.1091
(60,518)
(110,141)
(173.824)
Change of assumptions
-
-
47M
-
-
-
19,349
-
Benefit payments, Including refunds
of employee contribution
(305,2451
(374.666)
(185,961)
(204,657)
(163,3261
(101,3941
(109,637)
(166,160)
Net change in total pension liability
2,475.438
I,E04.639
1,711,274
1,133,731
924,561
790.079
636.453
367.168
Total pension Lab8ly-beginning
II.006,117
9,401.478
7.690,204
6,556,473
54631,912
4,841,833
4.205,380
3,838.212
TOTAL PENSION LIABILITY-ENDING(a)
$ 13,481.555
$ 11,006,117
$
9.401,478
$ 7.690,2D4
$
6,556,473
$ 5.631,912
$
4,841,833
$ 4,215.380
PLAN NDUCIARY NET POSITION
Contributions - employer
$ 1.240.283
$ 927,155
$
747,632
$ 618,030
$
516,066
$ 442,230
$
386,733
$ 270.279
Contributions -employee
616,181
460b16
356,743
298,589
249,306
217,388
194,478
170,293
Net investment incone lloss)
1.300,777
631,955
"1.697
(175,9511
641,130
257,S35
4,915
165.488
Benefit payments, including refunds
of employee contnbufions
(305,2451
(374,666)
(185.961)
(204.657)
(163,326)
(101.3941
(109.637)
(166,160)
Adninalrative expense
(5.9911
(4,073)
(5,580)
13.3891
(3,3151
(2.902)
(2,992)
(1.727)
Other
41
(158)
(168)
(1761
(1691
(I56)
(148)
(142)
Net change in plan fiduciary net posilior
2.84d046
1.640,829
1.904.363
532.496
1,239,692
812,701
473.349
438,031
Plan fiduciary net positon- beginning
9,932,397
8.291,568
6.387,205
5,854.709
4,615,017
3,802,316
3.328,967
2,890.936
PLAN NDUCIARY NET POSITION - ENDING(b)
$ 12,778.443
$ 9.932,397
$
8,291,568
$ 6,387,20S
$
5,854.709
$ 4,615,017
$
38(YL316
$ 3,328.967
NET PENSION LIABILITY - ENDING (a)-(b)
$ 703.112
$ 1.073,721
$
1.109,910
$ 1.302999
$
701,764
$ 1.016.895
$
1,039.517
$ 876,413
Plan fiduciary net position as a
percentage of total pension liability
95%
90%
88%
83%
89%
82%
79%
79%
Coveredpayro0
$ 8.E02.531
$ 6583234
$
5,096.334
$ 4.265,561
$
3,S61,515
$ 1,194.348
$
2778,260
$ 2.432.756
Net pension liability as a
percentage of covered payroll
8%
16%
22%
31%
20%
85%
37%
36%
Notes to Schedule
I. Rtis schedule is presented to illustrate the requirement to show informfion for ten years. However, until a
fug fen -yea trend Is canpled, only avoiloble infaaction is shown.
74
City of Anna, Texas
Schedule of Employer Contributions to Pension Plan - TMRS
Last Eight Years
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
2022
2021
2020
2019
2018
2017
2016
2015
Actuarially detendned contribution $
1,434,265
$
1,094,001
$
906,255
$ 701,932
$
592,188
$
490,248
$ 444,631
$ 353.170
Contributions in relation to the
actuarially determined contribution
1,434,265
1,094,001
906,255
701,932
592,188
490,248
444,631
353.170
ConhibuXon deficiency (excess) $
-
$
-
$
-
$ -
$
$
-
$ -
$ -
Covered parrot $
10,388,515
$
7.764.378
$
6,373,692
$ 4,798,511
$
4,086,822
$
3,396,686
$ 3,140.567
$ 2,881,090
Contributions as a percentage of
covered payroll
13.81%
14.09%
14.22%
14.63%
14.49%
14.43%
14.16%
12.26%
Noteslo Schedule
I.1his schedule Is presented to illustrate the requirement to show information for ten years. However, until a full
terryeor trend is compiled, only available information is shown.
2. GAS9 68, paragraph 81.2.b requires that the data in Ihis schedule be presented as of the City's fiscal year as
opposed to the time period covered by the measurement date.
75
City of Anna, Texas
Schedule of Changes in Total OPEB
Liability and Related Ratios - TMRS
Last Five Measurement Periods
TOTAL OPEB LIABILITY
Service cost
Interest (on the Total OPEB Liability)
Change of benefit tears
Differences between expected and actual experience
Changes in assumptions or other imputs
Benefit payments
Net change in total OPEB liability
Total OPEB liability- beginning
TOTAL OPEB LIABILITY - ENDING (a)
Covered -employee payroll
Total OPEB liability as a percentage of covered -employee payroll
Notes to Schedule
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
2021 2020 2019 2018 2017
$ 24,647 $ 16,451 $ 9,173 $ 8,958 $ 6,767
3,019 2,584 2,306 1,996 1,716
(10,814) 11,180 (964) (3,622) -
6,365 23,878 18,247 (5,341) 5,334
(1,761) (658) (510) - -
21,456 53,435 28,252 11991 13,817
139,516 86,081 57,829 55,838 42,021
$ 160,972 $ 139,516 $ 86,081 $ 57,829 $ 55,838
$ 8,802,581 $ 6,580,234 $ 5,096,334 $ 4,265,563 $ 3,561,515
1.83% 2.12% 1.69% 1.367. 1.57%
I. 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 standards of GASS 74175 and
should not be shown here. Therefore, only years for which the new GASS statements hove been
implemented have been shown and ultimately ten years will be presented.
76
City of Anna, Texas
Schedule of OPEB Contributions - TMRS
Last Five Fiscal Years
Actuarially determined contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered-emplyee payroll
Contributions as a percentage of
covered -employee payroll
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
2022 2021 2020 2019 2018
$ 2,078 $ 7,636 $ 8,286 $ 6,238 $ 4,496
2,078 7,636 8,286 6,238 4,496
10,388,515 7,764,378 6,373,692 4,798,511 4,086,822
0.02% 0.10% 0.13% 0.13% 0.11%
Notes to Schedule
1. This schedule is presented to illustrate the requirement to show for 10 years. However, recalculations of prior
years are not reported in accordance with the standards of GASB 74/75 and should not be shown here.
Therefore, onlyyears for which the new GAS8 statements have been implemented will be shown and ultimately
ten years will be presented.
2. GASB 75 paragraph 57 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 dote.
77
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Combining and Individual Fund
Financial Statements and Schedule
m
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
nna
79
Nonmajor Governmental Funds
Special Revenue Funds
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
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.
Federal Police Seizure Fund
Accounts for federal 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 federal laws.
Public Facility Corporation Fund
Created for the purpose of assisting the City
facilities. The APFC provides for the acquisition,
and furnishings of public facilities in the City.
in financing, refinancing, or providing public
construction, rehabilitation, renovation, repair,
Fire Department Capital Improvement Fund
Accounts for voluntary fees negotiated with developers in support of the Anna Fire
Department for fire capital projects.
Tax Increment Reinvestment Zone Number 2 (TIRZ #2) Fund
Accounts for financing resources to pay for infrastructure costs to facilitate the mixed -use
development project.
Other Special Revenue Fund
Accounts for all other miscellaneous restricted funds not described in other special revenue
funds.
FRI
City of Anna, Texas
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 20222
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Roadway
Roadway
Federal
Impact Fee
Impact Fee
State Police
Police Seizure
Public Facility
SVC Area 7
SVC Area 2
Seizure Fund
Fund
Corporation
ASSETS
Cash and cash equivalents
$ 3,353,936
$ 1,995,328
$ 9,673
$ 3,039
$ 880,053
Receivables, net
-
-
-
-
-
Restricted cash
-
-
-
-
-
Total assets
$ 3,353,936
$ 1,995,328
$ 9,673
$ 3,039
$ 880,053
LIABILITIES
Accounts payable and other liabilities $
Retainage payable
Accrued liabilities
Accrued salaries
Unearned revenue
Due to other funds
Total liabilities
FUND BALANCES
Restricted for:
Public safety
Capital projects
Unassigned
3,353,936 1,995,328
9,673 3,039
503,003
503,003
377,050
Total fund balances 3,353,936 1,995,328 9,673 3,039 377,050
TOTAL LIABILITIES AND FUND BALANCES $ 3,353,936 $ 1,995,328 $ 9,673 $ 3,039 $ 880,053
91
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Fire Dept. Total Nonmajor
Capital lmpr. Other Special Governmental
Fund TIRZ#2 Revenue Fund Funds
$ 268,538 $ - $ 145,249 $ 6,655,816
- 54,724 - 54,724
$ 268,538 $ 54,724 $ 145,249 $ 6,710,540
$ - $ 46 $ - $ 46
503,003
- 46 - 503,049
268,538 - 145,249 426,499
- 54,678 - 5,780,992
268,538 54,678 145,249 6,207,491
$ 268,538 $ 54,724 $ 145,249 $ 6,710,540
M.
City of Anna, Texas
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 20222
REVENUES
Property taxes
Charges for services
Fines and forfeitures
Investment income
Other revenue
Total revenues
EXPENDITURES
Current:
General government
Culture and recreation
Community Sew ices
Public safety
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing (uses)
Net change in fund balances
Fund balances, beginning of year
FUND BALANCES, END OF YEAR
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Roadway
Roadway
Federal
Impact Fee
Impact Fee
State Police
Police Seizure
Public Facility
SVC Area 7
SVC Area 2
Seizure Fund
Fund
Corporation
2,457.453
695,840
-
-
383,397
16,865
10,942
57
18
1,342
-
-
146
-
2,474,318
706,782
203
18
384,739
3,600
-
3,600
2,474,318
706,782
203
18
381,139
3,021
(81,514) (10,893) (3,021) - -
(81,514) (10,893) (3,021) 3,021 -
2,392,804 695,889 (2,818) 3,039 381,139
961,132 1,299,439 12,491 - -
$ 3,353,936 $ 1,995,328 $ 9,673 $ 3,039 $ 381,139
m
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Fire Dept.
Total Nonmajor
Capital lmpr.
Other Special
Governmental
Fund
TIRZ#2
Revenue Fund
Funds
$ -
$ 46,340
$ -
$ 46,340
120,900
-
-
3,657,590
-
-
8,654
8,654
1,395
-
1,150
31,769
120
-
36,005
36,271
122,415
46,340
45,809
3,780,624
- 3,172 3,172
226 - 226
3,600
28,213 - - 28,213
11,998 - 62,964 74,962
40,211 226 66,136 110,173
82,204 46,114 (20,327) 3,670,451
3,021
(95,428)
- - - (92,407)
82,204 46,114 (20,327) 3,578,044
186,334 8,564 165,576 2,633,536
$ 268,538 $ 54,678 $ 145,249 $ 6,211,580
M
City of Anna, Texas
Balance Sheet
Community Development Corporation
September 30, 20222
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Anna Community
Development
Corporation
ASSETS
Cash and cash equivalents
$ 7,796,303
Receivables, net
415,588
Restricted cash
-
TOTAL ASSETS
$ 8,211,891
LIABILITIES
Accounts payable $ 17,080
Accrued liabilities 3,944
Accrued salaries 12,547
Total liabilities 33,571
FUND BALANCES
Restricted for:
Community Development 8,178,320
Total fund balances 8,178,320
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES $ 8,211,891
IM
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Reconciliation of Governmental Funds Balance Sheet or distributed
to the Statement of Net Position
Community Development Corporation
September 30, 20222
FUND BALANCES -TOTAL GOVERNMENTAL FUNDS $ 8,178,320
Amounts reported for governmental activities in the statement of net position
are different because:
The following deferred outflows of resources and deferred inflows of resources
are not reported in governmental funds:
Deferred outflows of resources - OPEB
1,413
Deferred outflows of resources - pension
43,878
Deferred inflows of resources - OPEB
(439)
Deferred inflows of resources - pension
(19,625)
Long-term liabilities, including bonds 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
(2,485,000)
Compensated absences
(22,980)
Accrued interest
(11,939)
Total OPEB liability
(4,717)
Net pension liability
(20,602)
NET POSITION OF GOVERNMENTAL ACTIVITIES
$ 5,658,309
m
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Statement of Revenues, Expenditures, and Changes in Fund Balances or distributed
Community Development Corporation
For the Year Ended September 30, 20222
Anna Community
Development
Corporation
REVENUES
Sales taxes
$ 2,308,746
Contributions
156
Inv estment income
14,953
Total revenues
2,323,855
EXPENDITURES
Current:
Community and economic development
1,296,229
Debt service:
Principal retirement
160,000
Interest and fiscal charges
96,837
Total expenditures
1,553,066
Excess (deficiency) of revenues
over (under) expenditures
770,789
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets
5,615,652
Total other financing (uses)
5,615,652
Net change in fund balances
6,386,441
Fund balance, beginning of year
1,791,879
Fund balance, end of year
$ 8,178,320
0
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Reconciliation of the Statement of Revenues, Expenditures, and Change6distributed
in Fund Balances of Governmental Funds to the Statement of Activities
Community Development Corporation
For the Year Ended September 30, 20222
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of activities
are different because:
Net effect of proceeds from the sale of capital assets and gain on disposal
Current year long-term debt principal payments on tax notes payable are expenditures
in the fund financial statements but are shown as reductions in long-term debt in the
government -wide financial statements.
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.
Decrease in accrued interest
Increase in accrued compensated absences
Increase in net pension liability and related deferred inflows and outflows
Increase in total OPEB liability and related deferred inflows and outflows
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
6,386,441
(2,757,904)
160,000
657
(9,022)
5,315
(2,282)
$ 3,783,205
m
City of Anna, Texas
Balance Sheet
Economic Development Corporation
September 30, 20222
ASSETS
Cash and cash equivalents
Investments
Receivables, net
TOTAL ASSETS
LIABILITIES
Accounts payable
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Anna Economic
Development
Corporation
$ 982,908
5,000,000
16,580
$ 5,999,488
$ 7,302
Total liabilities 7,302
FUND BALANCES
Restricted for:
Econornic Development 5,992,186
Total fund balances 5,992,186
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
$ 5,999,488
IM
City of Anna, Texas
Reconciliation of Governmental Fund Balance Sheet
to the Statement of Net Position
Economic Development Corporation
September 30, 20222
FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement of net position
are different because:
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
Unavailable revenues are recognized as revenue in the statement of net position.
NET POSITION OF GOVERNMENTAL ACTIVITIES
5,992,186
227,769
6,219,955
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balance
Economic Development Corporation
For the Year Ended September 30, 20222
REVENUES
Charges for services
Investment income
Total revenues
EXPENDITURES
Current:
Community and economic development
Total expenditures
Excess of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from the sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Anna Economic
Development
Corporation
$ 8,166
25,620
33,786
65,479
65,479
(31,693)
5,615,652
5,615,652
5,583,959
408,227
$ 5,992,186
ill
DRAFT FOR DISCUSSION PURPOSES ONLY -
City of Anna, Texas Subject to final review and possible
revision and should not be relied upon
Reconciliation of the Statement of Revenues, Expenditures, and Changesdistributed
in Fund Balance of the Governmental Fund to the Statement of Activities
Economic Development Corporation
For the Year Ended September 30, 20222
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the statement
of activities are different because:
Current year capital outlays are expenditures in the fund financial statements,
but these are shown as an increase in capital assets in the government -wide
financial statements. The effect of removing the current year capital outlays is
to increase net position.
Net effect of proceeds from the sale of capital assets and gain on disposal
Depreciation is not recognized as an expense in governmental funds since it
does not require the use of current financial resources
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
$ 5,583,959
(50,000)
(19,850)
$ 5,514,109
92
City of Anna, Texas
Balance Sheet
Economic Development Corporation
September 30, 20222
ASSETS
Cash and cash equivalents
Receivables, net
Capital assets:
Non -depreciable
TOTAL ASSETS
LIABILITIES
Accounts payable
Unearned revenue
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - land lease
Total deferred inflows of resources
FUND BALANCES
Restricted for:
Economic Development
Total fund balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Anna Housing
Finance
Corporation
$ 634,607
1,443,404
$ 2,078,011
$ 60
93,750
93,810
1,433,684
1,433,684
550,517
550,517
$ 2,078,011
93
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balance
Housing Finance Corporation
For the Year Ended September 30, 20222
REVENUES
Charges for services
I nv estment income
Total revenues
EXPENDITURES
Current:
Community and economic development
Total expenditures
Excess of revenues
over expenditures
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Anna Housing
Finance
Corporation
$ 565,970
2,252
568,222
17,705
17,705
550,517
550,517
$ 550,517
94
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes
In Fund Balances - Budget and Actual
Community Development Corporation
For the Year Ended September 30, 2022
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
REVENUES
Sales and use tax
$ 1,630,000
$ 1,630,000
$ 2,308,746
$ 678,746
Contributions
-
-
156
156
I nvestment income
5,000
5,000
14,953
9,953
Total revenues
1,635,000
1,635,000
2,323,855
688,855
EXPENDITURES
Current:
Community and economic development
1,470,275
1,470,275
1,296,229
174,046
Debt Service:
Principal retirement
160,000
160,000
160,000
-
Interest and fiscal charges
167,463
167,463
96,837
70,626
Total expenditures
1,797,738
1,797,738
1.553,066
244,672
Excess (deficiency) of revenues
over (under) expenditures
(162,738)
(162,738)
770,789
933,527
Other Financing Sources (Uses)
Proceeds on the sale of capital assets
-
-
5,615,652
5,615,652
Total other financing sources (uses)
-
-
5,615,652
5,615,652
Net change in fund balance
(162.738)
(162,738)
6.386,441
6,549,179
Fund balances, beginning of year
1,791,879
1,791,879
1,791,879
-
FUND BALANCES, END OF YEAR
$ 1,629,141
$ 1,629,141
$ 8,178,320
$ 6,549,179
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
W,
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes
In Fund Balances - Budget and Actual
Economic Development Corporation
For the Year Ended September 30, 2022
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
REVENUES
Charges for services - rentals $
10,000
$ 10,000
$ 8,166
$ (1,834)
Investment income
2,000
2,000
25,620
23,620
Other income
1,500
1,500
-
(1,500)
Total revenues
13,500
13,500
33,786
20,286
EXPENDITURES
Current:
Community and economic developmen
85,800
114,155
65,479
48,676
Total expenditures
85,800
114,155
65,479
48,676
Excess (deficiency) of revenues
over (under) expenditures
(72,300)
(100,655)
(31,693)
68,962
Other Financing Sources (Uses)
Proceeds on the sale of capital assets
-
-
5,615,652
5,615,652
Total other financing sources (uses)
-
-
5,615,652
5,615,652
Net change in fund balance
(72,300)
(100,655)
5,583,959
5,684,614
Fund balances, beginning of year
408,227
408,227
408,227
-
FUND BALANCES, END OF YEAR $
335,927
$ 307,572
$ 5,992,186
$ 5,684,614
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent
with generally accepted
accounting principles (GAAP
W,
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes
In Fund Balances — Budget and Actual
Debt Service Fund
For the Year Ended September 30, 2022
REVENUES
Property taxes
I nv estment income
Total revenues
EXPENDITURES
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances, beginning of year
FUND BALANCES, END OF YEAR
Original Final
Budget Budget
$ 2,107,113 $ 2,107,113
2,500 2,500
2,109,613 2,109,613
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Final Budget
Positive
Actual
(Negative)
$ 2,079,794
$ (27,319)
4,344
1,844
2,084,138
(25,475)
520,000
520,000
506,000
14,000
1,552,613
1,552,613
1,565,949
(13,336)
2,072,613
2,072,613
2,071,949
664
37,000
37,000
12,189
(24,811)
37,000
70,105
37,000
70,105
12,189
70,105
(24,811)
$ 107,105 $
107,105 $
82,294 $
(24,811)
97
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes
In Fund Balances — Budget and Actual
Grant Fund
For the Year Ended September 30, 2022
REVENUES
Investment income
Intergovernmental
Total revenues
Original Final
Budget Budget
9,375 9,375
9,375 9,375
EXPENDITURES
Current:
General government
-
-
Public safety
9,875
9,875
Capital outlay
-
-
Total expenditures
9,875
9,875
Excess (deficiency) of revenues
over (under) expenditures
(500)
(500)
Net change in fund balance
(500)
(500)
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Variance with
Final Budget
Positive
Actual
(Negative)
$ 10,949
$ 10,949
25,273
15,898
36,222
26,847
23,372 (13,497)
23,372 (13,497)
12,850 13,350
12,850 13,350
Beginning fund balance 449 449 449 -
ENDING FUND BALANCE $ (51) $ (51) $ 13,299 $ 13,350
Notes to Schedule
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to Final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
9.1
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
Statistical Section
111r,1
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
or distributed
THE CITY OF
manna
DRAFT FOR DISCUSSION PURPOSES ONLY -
Subject to final review and possible
revision and should not be relied upon
Statistical Section or distributed
(Unaudited)
This part of the City's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and Required
Supplementary Information says about the City's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant
local revenue source, property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City provides
and the activities it performs.
Tables
1,2,3&4
5,6,7&8
9,10,11&12
13 & 14
15, 16 & 17
102
City of Anna, Texas
Net Position by Component
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
Table 1
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
GOVERNMENTAL ACTIVITIES
Net investment in capitd assets
$
81,252,418
$
65,539,991
$ 49,605,921
$
33,525,898
$ 29,892,142
$
20.398,968
$
13,466,866
$ 13,288,789
$
12,463,939
$
11,698,639
Restricted
19,668,553
18,360,546
7,417,666
10,681,098
469,607
1,489,057
1,550,067
1,781,301
1,265,399
983,464
Unrestricted
9,727,825
13,904,713
9.023,802
6,211,056
5,793,809
3.844,295
3,052,331
2,073,139
2,272,911
2427,826
TOTAL GOVERNMENTAL ACTIVITIES NET POSITION
$
110,648.796
$
91,805,250
$ 66,047,389
$
50,418,052
$ 36,155,558
$
25,732310
$
18.069,264
$ 17,143,229
$
16,002,249
$
15,109,929
BUSINESS -TYPE ACTIVITIES
Net investment in capital assets
$
50,471,921
$
41,835,760
$ 35,210,562
$
28,632,597
$ 25,064,065
$
17,356,378
$
12,878,858
$ 9,150,846
$
7,161,432
$
9,228,796
Restricted
36,531,071
23,680,099
13,578,283
9,638,637
6.761.991
6,407,402
7,349,941
10,029,856
11,632410
8,358,837
Unrestricted
818,839
5,757,394
4,764,739
3,364.464
2855.207
2,930,232
762,189
595,738
642,688
1,470,698
TOTAL BUSINESS -TYPE ACTIVITIES NET POSITION
$
87,821,831
$
71,273,253
$ 53,553,584
$
41,635,698
$ 34,681,263
$
26,694,012
$
20,990,988
$ 19,776,440
$
19,436,530
$
19,058,331
PRIMARY GOVERNMENT
Net investment in capital assets
$
131,724,339
$
107,375,751
$ 84,816,483
$
6Y,158,495
$ 54,956,207
$
37.755,346
$
26,345,724
$ 22,439,635
$
19.625,371
$
20,927,435
Restricted
56,199,624
42.040,645
20,995,949
20.319,735
7,231,598
7,896.459
8,900.008
11.811.157
12,897.809
9.342.301
Unrestricted
10,546,664
19,662,107
13,788,541
9,575,520
8,649,016
6,774,517
3,814,520
2,668,877
2,915,599
3,898,524
TOTAL PRIMARY GOVERNMENT NET POSITION $ 198,470,627 $ 169,078,503 $ 119,600,973 $ 92,053,750 $ 70,836,821 $ 52.426,322 $ 39.060,252 $ 36,919,669 $ 35,438,779 $ 34,168,260
Source: Annual Comprehensive financial Report
103
City of Anna, Texas
Changes in Net Position
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
EXPENSES
Governmental activities:
General government
Culture and recreation
Conn nityservices
Public safety
Public works
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water and sewer
Total business -type activities expenses
TOTAL PRIMARY GOVERNMENT EXPENSES
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government
Culture and recreation
Community services
Public safety
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water and sewer
Capital grants and contributions
Total business -type activities program revenues
TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES
Source: Annual Comprehensive Financial Report
Table 2
2022
2021
2D2D
2019
2018
2017
2016
2015
2014
2013
$ 5.226,176 $
3,538.746 3
2,669,302 $
1.954,083 $
1,758,159 $
1,405,0B5 $
1.393,256 $
1.058,719 $
963,243 $
885,833
2550.873
2053.933
1,172.862
877,455
799.378
665,430
584,676
573,249
432.133
303.607
1.211,897
1.198,530
1.280.415
1.289.798
810,369
904,227
690.842
558,541
619,465
560,983
9,915,219
6,221,473
5,074,735
3.972,445
3,730,871
3,062,333
2,727,997
2511,931
2,272,660
2278,515
4,739,386
4,169,132
3,176,361
4,113,592
2,013,096
1,502,775
1,261,514
1,053,123
954,932
940,941
1,483,176
2,212316
1,258,204
2,42D,375
670,789
132.433
174,446
316,079
258.663
270,057
25.126,727
19,394,130
14.631,879
14,627,748
9,782,662
7.672,283
6,832,731
6,071.642
5,501,096
5,239,936
16,353.389
13,462.054
11,152513
11.664,343
8,893,526
7,443,593
7,371,352
6,487,099
5,453.831
5.307,272
16,353,389
13,462,054
11,152,513
11,664,343
8,893,526
7,443,593
7,371,352
6,487.099
5,453,831
5,307.272
$ 41,480.116 $
32,856,184 $
25,784,392 $
26,292.091 $
18.676,188 $
15,115,876 $
14,2D4,083 $
12.558,741 $
10,954.927 $
10,547.208
$ 6,708,288 $
4,281,147 $
304,993 $
236.673 $
90,890 $
136,465 $
48,181 $
30,000 $
30,0D0 $
20,839
2835,400
1,689,000
1.404,600
900,150
315,933
553,511
117,990
63.265
71.905
63,421
674,627
182859
2,644,933
1,314,178
873,397
1,173,516
236,694
748,212
772,501
839,349
14,473
5,353
21,648
16,995
94,244
49,950
768,988
218,973
183,533
194,379
3,274,193
1,641.273
895.SB5
666,873
641,119
382,390
129,914
-
-
-
75,963
527.376
616.207
182.943
4,225
351.482
333,948
15,053
11,525
10,531
8,977,439
30,267.739
13,181,867
15,179,885
9,338,2D4
6.489.958
-
1,417,514
783.182
2,665,841
22,560,383
38,594,747
19,069,833
18,497,697
11,358,012
9,137,272
1,635.715
2.493,017
1,852,646
3,794,360
28,539,413
23.356,512
15,852.302
14,947.376
11.416,192
9.805,662
7,523.193
6,194,327
5,980,176
5,573,401
4,125,890
7,732,066
6,716,462
3,346,660
5,348,481
3,298,737
776,416
755,508
486,155
484,704
32,665.303
31,088,578
22.568,764
18,294.036
16.764.673
13.104,399
8.299.609
6.949.835
6,466.331
6,058,105
$ 55,225,686 $
69,683,325 $
41,638,597 $
36,791,733 $
28,122,685 $
22,241,671 $
9,935,324 $
9,44Z852 $
8,318,977 $
9,852,465
104
City of Anna, Texas
Changes in Net Position - Continued
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
Table 2
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
NET (EXPENSE) REVENUE
Governmental activities
$ (2,566,344)
$ 19,200,617
$
4.437.954
$
3,869.949
$
1,575.350
$
1.464.989
$
15.197.016)
$ (3,578,625)
$
(3,648,450)
$
(1,445,576)
Business -type activities
16.311,914
17.626,524
11.416,251
6.629.693
7,871,147
5,660,806
928,257
462.736
1.012500
750.833
TOTAL PRIMARY GOVERNMENT NET EXPENSE
$ 13,745,570
$ 36,827,141
$
15,854,205
$
10,499,642
$
9.446,497
$
7,125,795
$
(4,268,759)
$ (3,115,889)
$
(2.635,950)
$
(694,743)
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental activities:
Taxes:
Property taxes
$ 10,239,322
$ $714,860
$
7,929,530
$
6,728,848
$
5,579,490
$
4,619,461
$
3,973,028
$ 3,322,054
$
2,807,140
$
2,483,857
Sales taxes
3,847,911
2929,876
2,271,318
1,835,421
1,502.079
1,203,749
1.542,309
1,473,097
1,350,896
1,149,297
Franchise taxes
8B8,723
726,006
657,331
612,332
573,517
505,571
447,498
450,799
416,175
353,482
Inv estmentearnings
244,BS5
123,643
568.920
1,044,444
327,200
26,199
31,816
23.685
22,295
39,256
Gain on sale of capital assets
-
-
20,111
135,910
276.970
-
-
39,160
11,960
-
Macellaneous
189.079
62.859
70.560
84,132
314.750
241,719
166.773
316,688
140,596
39,399
1 ntergov ernmental
-
-
-
142,273
-
-
-
-
-
Transfers
-
-
(326,387)
(48,542)
159,500
-
108,556
(649)
279.707
(1,489,156)
Total governmental activities
15,409,890
12,557,244
11,191.383
10,392,545
8,875,779
6.596.699
6,269,980
5,624,834
5,028,769
2.576,135
Business -type activities:
Investment earnings
236,664
93,145
175,248
276,200
136,261
63,607
69,60E
77,064
73,451
34,636
Miscellaneous
-
-
-
-
148,148
69,610
29,193
-
-
156.127
Transfers
-
-
326,387
48,542
(159,500)
-
(108,S56)
649
(279,707)
1.489.156
Total business -type activities
236.664
93.145
501,635
324.742
124,909
133,217
19,755)
77.713
(206256)
1,679.919
TOTAL PRIMARY GOVERNMENT
$ 15,646,554
$ 12650.389
$
11,693,018
$
10,717,287
$
9,000.688
$
6,729.916
$
6,260.225
$ 5,702,547
$
4,822.513
$
4,256,054
CHANGE IN NET POSITION
Governmental activities
$ 12,843,546
$ 31,757,861
$
15,629,337
$
14,262494
$
10,451.129
$
8,061,688
$
1,072.964
$ 2.046,209
$
1,380,319
$
1,130.559
Business -type activities
16,548,578
17,719,669
11,917,886
6,954,435
7,996,056
5,794,023
918,502
540,449
806,244
2,430,752
TOTAL PRIMARY GOVERNMENT
$ 29,392124
$ 49.477,530
$
27,547,223
$
21,216.929
$
18,447,185
$
13.855,711
$
1,991,466
$ 2,586,658
$
2186.563
$
3,561,311
Source: Annual Comprehensive Financial Report
M
City of Anna, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
Table 3
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
GENERAL FUND
Nonspendable
$ - $
12,761 $
10,630 $
7,242 $
- $
- $
- $
- $
- $
-
Restricted
13,434
13,354
13,279
13,133
1Z891
12,768
19,580
523,192
394,002
232,160
Committed
-
-
-
215,932
215,932
740,768
185,78E
157,476
161,510
558,127
Assigned
-
-
-
-
-
-
-
-
144,175
-
Unassigned
9,949,599
6,545,930
6,421,607
5,705,117
4,484,943
3,741,504
3,114,627
2,617,940
2,351,029
1,830,457
TOTAL GENERAL FUND
$ 9,963,033 $
6,572,245 $
6,445,516 $
5,941,424 $
4,713,766 $
4,495,040 $
3,319,995 $
3,298,608 $
3,050,716 $
2620,744
ALL OTHER GOVERNMENTAL FUNDS
Nonspendable
$ - $
559,947 $
3,000 $
1.000 $
- $
- $
- $
- $
35,642 $
88.353
Restricted
26,015,542
31,756,237
32.669,975
40,214,505
35.295,317
1,476,290
2284,212
1,100,633
871.397
662,951
Assigned
1,103.077
5,537,514
-
-
-
-
-
-
-
-
Unassigned
-
-
(3,000)
(112.518)
-
(7,694)
1574,937)
(203,139)
(371.273)
(87,717)
TOTAL ALL OTHER GOVERNMENTAL FUNDS $ 27.118.619 $ 37,853,698 $ 32.669,975 $ 40,102.987 $ 35.295.317 $ 1,468,596 $ 1,709,275 $ 897,494 $ 535.766 $ 663,587
Source: Annual Comprehensive financial Report
City of Anna, Texas
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
Table 4
2022
2021
202D
2D19
2018
2017
2016
2015
2014
2013
REVENUES
Taxes
$ 14,867,757 $
12,363.699 $
10.898,111 $
9.166.995 $
7.592.708 $
6,338.940 $
5,965.724 $
5,241.413 $
4,571.535 $
3.999.758
Licenses, permits, and tees
5,752179
4.159.517
2,683,906
1,331.173
824,186
1,115,294
711,462
748,212
772,501
839,349
Charges for services
7,504,874
3,514,109
2488,443
1,716,265
1,113,856
1.106,62D
-
158,491
166,242
139,646
Fines and forfeitures
249,928
129.265
97,374
87.431
77,541
73,918
84,360
115,027
100,055
133,018
Intergovernmental
72.913
526,766
123,195
93,190
142,273
185,392
287,614
114,200
106,60D
1,463,43D
Investment earnings
244,855
123,643
568.920
1,044,444
32700
26.199
31,816
23.685
22,295
39,256
Other revenues
189.079
10.458,492
1.436.755
166.460
314,750
117.932
1.164,183
126,393
122.579
74.738
Contributions
3,050
4=711
475
9,82,i,637
4.225
351.482
135,949
29,085
674,398
Total revenues
28.894.635
35.606.202
18,297.179
23.429,595
10,396,739
9,315,777
8.245,159
6,663,370
5.890,892
7.363,593
EXPENDITURES
Current:
General government
5,100,329
3,388,774
2,759,964
1,918,254
1,553,102
1,339,668
1,507,324
1,181,679
1,048.004
967,299
Culture and recreation
2.032,561
1,677,459
815.030
518,696
473,477
332,249
268.538
246,808
196,502
12D,030
Community services
1,145.841
1,198,963
1,113,095
1.286.794
809,682
902,552
689,308
896,419
1,001,631
737,119
Public safety
7.498.351
5.875.398
4,827,758
3,721,752
3,649.049
2842,470
2,509.795
2182,617
1,951,681
1,964,502
Public works
784.483
1.239.676
857.730
2166.360
541,968
463,780
539,049
200,188
170.830
201,294
Debt service:
Principal retirement
550.001
546,366
537.791
426,851
342.000
328.000
779.842
466,776
415,662
430.877
Interest and fiscal changes
1,579,307
1,327,404
1,344,730
2.599,974
71,273
97,376
182.942
200,331
259,080
271,485
Bond issuance costs
-
739,177
-
-
443,009
-
38,350
-
-
Capital outlay
18.875,930
22.938,256
12,994,384
5,414,720
1,771.045
565,974
1,094.445
755,535
837,018
2,917,945
Total expenditures
37,566,8D3
38,931,473
25.250.482
18,043,401
9,654,605
6,872,069
7,571,243
6,168,703
5.880,408
7,610,551
Excess of revenues over (under) expenditures
(8.682168)
(3,325,271)
16,953.303)
5.396,194
742.134
2.443.708
673.916
494,667
1Q484
(246.958)
OTHER FINANCING SOURCES (USES)
Transfers in
295,428
3,316,912
1,979,606
121,637
1,455,713
585,2D9
298,419
335,134
316,507
1,755,532
Transfers (out)
(295,428)
(3,316,912)
(1,976,401)
(170,1791
(1,296,213)
(585,2D9)
(189,863)
(335.783)
(36,800)
(3,244,688)
Sale of capital assets
-
61,619
21,178
212,60E
700,082
34,974
17,054
65,000
11.960
-
Bond Proceeds
-
8,460,000
-
31,795,000
(23,35D)
-
1,462,000
-
-
Debt Issuance Cost
(197,353)
-
-
-
-
-
-
-
Prerrium on debt issuance
-
834.153
-
-
1.601.891
850.000
-
-
-
-
Lease issuance
1,541.966
-
-
485,068
-
-
-
-
-
-
Payments to escrow agent
-
1522.6961
-
-
053,160)
(820.899)
-
11,411,398)
-
-
Total other financing sources (uses)
1,541,966
8,635.723
24.383
649,134
33,303,313
40,725
125,610
114,953
291,667
(1,489,156)
NETCHANGE IN FUND BALANCE
$ (7,140,202) $
5.310.452 $
(6,928,920) $
6,035,328 $
34,045,447 $
2,484,433 $
799,526 $
609,620 $
302,151 $
(1,736,114)
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES
10.3%
5.6%
9.5%
23.9%
52%
6.7%
14.9%
12.3%
13.4%
15.0%
Source: Annual Comprehensive Financial Report
107
City of Anna, Texas
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years (Unaudited)
Table 5
Estimated Market Value
Fiscal
Real
Personal
Less: Tax Exempt
Total Taxable
Total Direct
Year
Property
Property
Property
Assessed Value
Tax Rate
2013
457,390,078
16,753,543
97,610,313
376,533,308
0.65033
2014
514,337,648
21,674,172
105,177,246
430,834,574
0.65033
2015
649,209,461
22,743,852
161,376,609
510,576,704
0.64900
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
Source: Collin County Appraisal District
u
City of Anna, Texas
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (Unaudited)
City Direct Rates
Overlapping Rates
Table 6
Anna
Collin County
Fiscal
Debt
Total
Independent
Collin
Community
Total
Year
Operating
Service
Direct Rate
School District
County
College District
Rate
2013
0.55937
0.09097
0.650332
1.540000
0.240000
0.086299
1.86630
2014
0.55937
0.09097
0.650332
1.540000
0.237500
0.083643
1.86114
2015
0.54583
0.10317
0.649000
1.540000
0.235000
0.081960
1.85696
2016
0.53234
0.10666
0.639000
1.670000
0.225000
0.081960
1.97696
2017
0.50658
0.12242
0.629000
1.670000
0.208395
0.081222
1.95962
2018
0.47887
0.12242
0.601288
1.670000
0.192246
0.079810
1.94206
2019
0.42812
0.16317
0.591288
1.670000
0.180785
0.081222
1.93201
2020
0.45154
0.13975
0.591288
1.568350
0.174951
0.081222
1.82452
2021
0.46705
0.11595
0.583000
1.474600
0.172531
0.081222
1.72835
2022
0.45263
0.11687
0.569500
1.460300
0.168087
0.081222
1.70961
Source: Collin County Central Appraisal District
Note: The entire City was located in Collin County and within the Anna Independent School District.
E
City of Anna, Texas
Principal Property Tax Payers
Current and Nine Years Ago (Unaudited)
2022 2013
Taxable Percentage of Taxable
Assessed Total City Assessed
Taxpayer Valuation Assessed Valuation Taxpayer Value
Wal-Mart Real Estate Business Trust $
17,000,156
Bloomfield Homes LP
14,532,761
DR Horton - Texas LTD
13,568,423
Q Seminole Anna Towne Center LP
10,736,136
Oncor Electric Delivery Co. LLC
9,537,465
LGI Homes - Texas LLC
8,990,694
North Texas Surgery Real Estate LLC
8,400,000
Anna Commercial Partners LLC
7,951,127
Wal-Mart Stores Texas LLC
7,832,630
MM Anna 325 LLC
7,761,680
Table 7
Percentage of
Total City
Assessed Valuation
0.96%
Brookshire Grocery Company
$ 3,839,224
1.0217o
0.8297o
PTCAA Texas LP
3,675,844
0.9817.
0.7676
Anna Eagle Retail LP
3,420,000
0.91 %
0.60%
LI DF Northpointe I I LP
2,757,258
0.737o
0.54%
Brookshire Grocery Company
2,689,404
0.71 %
0.51 %
Hwy 75/Anna Property LP
2,400,945
0.64%
0.47%
Windmill Self Storage LP
2,339,414
0.62%
0.45%
Nicholas Ross Properties LLC
2,192,813
0.58%
0.4417o
Pilot Flying J Travel Center
2,144,445
0.57%
0.4417o
Love's Country Stores I nc.
2,268,848
0.60%
Total 106,31 1,0/2 53Y70
Source: Collin County Tax Collector
Notes: °Taxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year.
"'Taxpayers are assessed on January 1, 2012 (2012 tax year) for the 2013 fiscal year.
27,728,195 7.36%
Rol
City of Anna, Texas
Property Tax Levies and Collections
Last Ten Fiscal Years (Unaudited)
Taxes Levied
Fiscal
for the
Year
Fiscal Year
2013
2,483, 972
2014
2,851, 672
2015
3,373, 239
2016
3,966,064
2017
4,606,565
2018
5,495,607
2019
6,475, 495
2020
7,543,539
2021
8,450,578
2022
10,026, 841
Source: Collin County Tax Assessor
Collected within the
Fiscal Year of the Levy
Amount
2,420,674
2,771,670
3,290,905
3,881,905
4,541,224
5,348,790
6,354,521
7,452,202
8,580,733
10,051,645
Percentage
of Tax Levy
97.5%
9 7. 27o
97.6%
97.9%
98.6%
97.3%
98.1 %
98.8%
101.5%
100.27.
Collections
In Subsequent
Years
58,076
67,311
67,134
68,059
45,590
14,529
106,414
48,673
92,676
Table 8
Total Collections to Date
Amount
2,478,750
2,838,981
3,358,039
3,949,964
4,586,814
5,363,319
6,460,935
7,500,875
8,673,409
10,051,645
Percentage
of Tax Levy
99.8%
99.6%
99.5%
99.6%
99.6%
97.6%
99.8%
9 9. 47o
102.6%
100.27o
City of Anna, Texas Table 9
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years (Unaudited)
Governmental Activities
Business -type Activities
General
Certificates
Combination
Capital
Waterworks d.
Combination
Contract
General
Capital
Total
Percentage
Fiscal
Obligation
of
Tax 8 Revenue
Lease
Sewer System
Tax 8 Revenue
Revenue
Obligation
Lease
Primary
of Personal
Per
Year
Bonds
Obligation
Bonds 6 Certificates Payable
Revenue Bonds
Bonds & Certificates
Bonds
Bonds
Payable
Government
Income
Capita
2013
250,000
3,985,000
-
2,513,847
5,000
8,275,000
14.698,750
15,000
9,747
29.752,344
13.30%
3,179
2014
230,000
3,755,000
-
2,354,618
-
12430,000
14.2DI,250
10,000
-
32,980,868
12.58%
3,187
2015
1,615,000
2,525,000
-
2,204,882
-
12561,000
13,675,000
51000
-
32,585,882
11.90%
2,968
2016
1,563,000
2,270,000
-
1,732,000
-
IZ359,000
13,140,000
-
-
31,064,000
10.99%
2,744
2017
2,145,000
1,045,000
-
-
-
12,212619
12,503,750
-
1,340,010
29,246,379
8.63%
2,360
2018
2,018,000
32,351,142
876,409
-
-
17,195,354
5,892,500
-
1,217,631
59,551,036
16.54%
4,350
2019
1,922,000
32,253,211
615,000
429.217
-
16,388,023
5,618,750
-
1,092,805
58,319,006
14.97%
3,885
2020
1,922,000
30,820,000
615,000
398,154
-
15,817,000
5,662,500
-
940,007
56,174,661
11,27%
3,360
2021
9,753,000
30,620,000
425,000
346,060
-
11,437,000
5,378,750
-
837,379
58,797,189
10.74%
3,462
2022
9,494,000
30,425,000
375,000
387,504
-
10,660,000
5,082,500
-
637,399
57,061,403
9.24%
2,961
112
City of Anna, Texas
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years (Unaudited)
Fiscal
General Obligation
Year
Bonds
2013
250,000
2014
230,000
2015
1,615,000
2016
1,563,000
2017
2,145,000
2018
2,018,000
2019
1,922,000
2020
1,922,000
2021
9,753,000
2022
12, 364,000
Certificates of
Obligation
3,985,000
3,755,000
2,525,000
2,270,000
1,045,000
32,351,142
32,253,311
30,820,000
30,620,000
30,425,000
Combination
Tax & Revenue
Bonds & Certificate?
12,561,000
12,359,000
12,212,619
18,071, 763
17,003,023
16,432,000
11,862,000
16,432,000
11,862,000
11,035,000
Total
16,796,000
16,344,000
16,352,619
21,904,763
20,193,023
50,801,142
46,037,311
49,174,000
52,235,000
53,824,000
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Percentage of
Actual
Taxable
Value' of
Property
0.0033%
0.0027%
0.0023%
0.0024%
0.0018%
0.0039%
0.0031 %
0.0028%
0.0035%
0.0030%
Table 10
Per
Cacita2
1,530
1,444
1,320
1,600
1,345
3,038
2,584
2,429
2,932
2,659
'See the Schedule of Assessed and Estimated Actual Value of Taxable Property for property v clue data.
2Population data can be found in the Schedule of Demographic and Economic Statistics.
3Bonds are payable from levy and collecton of a direct and continuing ad valorem tax and from a pledge of surplus revenues from water and sewer.
113
City of Anna, Texas
Direct and Overlapping Governmental Activities Debt
As of September 30, 2022 (Unaudited)
GOVERNMENTAL UNIT
Debt repaid with property taxes:
Collin County
Collin College
Anna ISD
Subtotal, overlapping debt
City of Anna
TOTAL DIRECT AND OVERLAPPING DEBT
Debt
Outstanding
$ 543,645,000
498,565,000
224,477,991
Estimated
Percentage
Applicable'
1.23%
1.23%
96.49%
Table 11
Estimated
Share of
Overlapping
Debt
$ 6,686,834
6,132,350
216,598,814
229,417,997
53,824,000
$ 283,241,997
Notes: 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 Statistical. This process recognizes that, when considering the City's ability
governments that is borne to issue and repay long-teim 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.
'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.
Source: Net bonded debt and percentage of debt provided by Municipal Advisory of Texas
114
City of Anna, Texas
Pledged -Revenue Coverage
Last Ten Fiscal Years (Unaudited)
less:
Fiscal
Total
Operating
Year
Revenues*
Expensesb
2013
5,764,164
3,161,627
2014
6,053,627
3,151,655
2015
6,271,391
3,987,255
2016
8,371,878
5,137,343
2017
9,938,880
6,490,261
2018
11,700,601
6,146,505
2019
15,822,376
8,582,049
2020
16,236,344
8,243,509
2021
21,201,248
13,091,569
2022
27,975,337
15,440,362
Water Revenue Bonds
Net
Available
Revenue
2,602,537
2,901,972
2,284,136
3,234,535
3,448,619
5,554,096
7,240,327
7,992,835
8,109,679
12,534,975
Debt Service
Principal
446,279
542,247
663,250
742,000
772,500
1,015,628
1,131,810
1,162,323
1,203,119
1,028, 750
Note: °includes both operating and non -operating revenues.
bincludes operating expenses minus depreciation.
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Interest
955,154
1,054,947
1,125,983
1,056,647
1,028,814
912,272
1,903,394
929,562
759,885
783,309
Table 12
Times
Coverage
1.86
1.82
1.28
1.80
1.91
2.88
2.39
3.82
4.13
6.92
115
City of Anna, Texas
Demographic and Economic Statistics
Last Ten Fiscal Years (Unaudited)
Fiscal
Personal
Per Capita
Year
Population' Income
Personal Income
2013
9,360 223,657,200
23,895
2014
10,350 262,082,700
25,322
2015
10,980 273,808,260
24,937
2016
11,320 282,705,680
24,974
2017
12,390 338,916,060
27,354
2018
13,690 359,992,240
26,296
2019
15,010 389,614,570
25,957
2020
16,721 498, 252,358
29,798
2021
17,814 573,953,192
29,656
2022
20,243 617,736,078
30,516
Sources:
'North Central Texas Council of Governements (NCTCOG)
2State Department of Labor and homefacts.com
3Anna Independent School District
4U. S. Census Bureau American Fact Finder & North Central
Texas Council of Governments
(NCTCOG)
School
Enrollment3
Note: 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.
2,579
2,855
3,051
3,214
3,438
3,602
3,808
3,837
4,485
5,172
Table 13
Unemployment
Rate'
5.4%
4.4%
3.6%
3.8%
3.8%
3.07
2.9%
6.9%
5.6%
3.2%
W
City of Anna, Texas
Principal Employers
Current and Nine Years Ago (Unaudited)
2022
Percentage of
No.
Total City
Employer
Employees
Employment
Employer
Anna ISD
713
41.79%
Anna ISD
Walmart
412
24.1517o
Pate Rehab
Pate Rehab
162
9.50%
Brookshire's
City of Anna
152
8.91%
Bronco
Brookshire's
84
4.92%
Hurricane Creek Country Club
Bronco Manufacturing
33
1.93%
City of Anna
Hurricane Creek County Club
51
2.99%
KFC/Taco Bell
Loves Travel Stop
47
2.75%
Crow's Country Caf6
McDonalds
40
2.347o
Mudpies and Lullabies
Tri-County Vet
12
0.70%
Highland Fire Protection
Total 1,706
Source: 'Top ten employers and employee count provided by Anna Econcomic Deveopment Corporation.
Note: Data not available for 2013 at the time of this publication. The City will present this information for future years' as the
information becomes available.
No.
NIA
N/A
N/A
NIA
N/A
N/A
N/A
N/A
N/A
N/A
2013
Table 14
Percentage of
Total City
Employment
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
117
City of Anna, Texas Table 15
Full -Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years (Unaudited)
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
FUNCTION/PROGRAM
General Government and
Administration
23.0
21.0
23.5
23.5
15.5
12.5
13.5
13.5
12.5
12.5
Public Safety
59.0
51.0
37.0
33.0
28.0
24.0
22.0
21.0
18.0
18.0
Public Works
11.0
6.0
6.0
6.0
8.0
7.0
7.0
4.0
1.0
1.0
Culture and Recreation
17.5
17.9
8.4
7.0
10.0
4.0
4.0
2.0
3.0
1.0
Water and Sewer
27.0
24.0
16.0
16.0
13.0
11.0
8.0
10.0
12.0
10.0
Community Development
11.0
10.0
9.0
8.0
4.0
4.0
3.0
3.0
3.0
2.0
Economic Development
3.0
2.5
2.0
2.0
1.0
0.5
0.5
0.5
0.5
0.5
TOTAL ALL GOVERNMENT FUNDS
151.5
132.4
101.9
95.5
79.5
63.0
58.0
54.0
50.0
45.0
Source: Finance and Human Resouces Department
City of Anna, Texas
Operating Indicators by Function/Program
Last Ten Fiscal Years (Unaudited)
Table 16
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
FUNCTION/PROGRAM
General government
Building permits issued -residential
1,059
1,125
833
579
342
440
273
216
290
305
Building permits issued -commercial
16
12
11
12
11
11
4
1
5
-
Building inspections conducted (1)
21,294
16,917
5,020
15,416
14,718
16,046
9,474
7,493
1Z584
10,566
Public Safety
Police:
Physical arrests
428
325
253
357
428
337
311
309
208
197
Accidents
305
363
265
323
336
265
261
231
182
155
Traffic violations
9,946
4,739
2,824
2,421
3,153
2,404
3,962
4,235
3,491
2,539
Fire:
Emergency responses
2,284
2,286
1,851
1,783
1,703
1,502
1,234
1,256
1,065
1,070
Fires extinguished
120
100
74
81
59
19
79
62
43
41
Inspections
158
212
160
186
284
132
115
107
79
77
Highways and streets
Street resurfacing (miles)
8.5
4.2
2.5
2
1.0
0
1
-
-
-
Potholes repaired
942
1,947
2,000
1,100
1,250
940
3,900
1,600
-
-
Recreation
Reservations issued
111
162
376
156
164
92
53
59
17
-
Water and Sewer
Number of Active Accounts
9,274
8,043
7,300
5,979
5,470
5,102
4,935
4,596
4,423
4,166
Average daily consumption (gallons) wells
789,054
1,029,423
1,009,523
1,122,943
1,097,062
1,018,025
1,007,258
1,115,682
1,061,013
772,487
Average daily consumption (gallons) NTMWD
1,983,782
2,428,800
1,169,030
1,025,503
679,857
679,857
355,970
-
-
-
Source: City departments
Mote: 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.
W
City of Anna, Texas
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years (Unaudited)
2022 2021
2020
FUNCTION
Public Safety
Number of police stations
1
1
1
Number of patrol units
12
12
8
Number of fire stations
1
1
1
Streets and Grounds
Streets (miles)
130.0
130.0
100.0
Streetlights
1,200
1,200
1,090
Traffic signals
6
6
5
Recreation
Acreage
206.0
206.0
201.0
Playgrounds
5
5
4
Baseball/softball diamonds
6
6
6
Water and Sewer
Water mains (miles)
163
82
82
Fire hydrants
1,175
925
925
Sanitary Sewer (miles)
115
75
75
Storage capacity (millions of gallons)
3
3
3
Wastewater
Treatment capacity
9
9
9
Sanitary sewer (miles)
115
75
75
Storm sewers (miles)
85
65
65
Source: City Departments
Note: 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.
2019
2018
2017
2016
1
8
1
1
8
1
1
11
1
1
9
1
74
68
65
50
908
800
625
570
4
4
3
1
201
201
197
197
3
2
2
2
6
6
6
7
75
69
55
55
862
804
570
570
68
62
50
50
3
3
3
3
9
9
9
9
68
62
60
50
60
57
55
50
Table 17
2015
2014
2013
1
9
1
1
7
1
1
7
1
180
177
177
2
2
2
7
7
7
120