HomeMy WebLinkAboutRes 2018-03-419 Financial Audit AcceptanceCITY OF ANNA, TEXAS
RESOLUTION NO. 4019 -b3- q% I
A RESOLUTION ACCEPTING THE FISCAL YEAR 2017 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 honor 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 2017 audit attached hereto as Exhibit 1.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the
27th day of March 2017.
ATTEST: APPROVED:
Carrie L. Smith, City Secretary Nate Pike, Mayor
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The City of Anna
111 N. Powell Parkway I Anna, TX 75409
972-924-3325 1 www.annatexas.gov
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THE CITY OF
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COMPREHENSIVE
ANNUAL FINANCIAL REPORT
of the
City of Anna, Texas
For the Year Ended
September 30, 2017
Prepared by
Dana Thornhill
Finance Director
Sheila Alexander
Accountant II
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City of Anna, Texas
TABLE OF CONTENTS
September 30, 2017
INTRODUCTORY SECTION Page
Letter of Transmittal i
Organizational Chart vi
List of Elected Officials and Management vii
FINANCIAL SECTION
Independent Auditor's Report
1
Management's Discussion and Analysis
4
Basic Financial Statements:
Government -wide Financial Statements
Statement of Net Position
14
Statement of Activities
15
Fund Financial Statements:
Balance Sheet - Governmental Funds
16
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
17
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
18
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
Of Governmental Funds to the Statement of Activities
19
Statement of Net Position - Proprietary Fund
20
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund
22
Statement of Cash Flows - Proprietary Fund
23
Notes to the Financial Statements
25
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget (GAAP Basis) and Actual - General Fund
64
Schedule of Changes in Net Pension Liability and Related Ratios -
Texas Municipal Retirement System
65
Schedule of Employer Contributions to Pension Plan -
Texas Municipal Retirement System
66
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor
Governmental Funds
Balance Sheet- Community Development Corporation
Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net
Position - Community Development Corporation
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Community Development Corporation
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of
Governmental Fund to the Statement of Activities - Comm. Development Corporation
Balance Sheet - Economic Development Corporation
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Economic Development Corporation
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Fund to the Statement of Activities - Economic Development Corporation
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Community Development Corporation
Economic Development Corporation
STATISTICAL SECTION
Financial Trends:
Net Position by Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Debt Capacity:
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Pledged -Revenue Coverage
68
71
74
75
76
77
78
79
80
81
82
83
87
88
90
91
92
93
94
95
Demographic and Economic Information
Demographic and Economic Statistics 100
Principal Employers 101
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program 102
Operating Indicators by Function/Program 103
Capital Asset Statistics by Function/Program 104
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INTRODUCTORY SECTION
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THE CITY OF
manna
March 27, 2018
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, 2017, 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, 2017.
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 Lafollett and Abbott PLLC. 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, 2017, 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 compliment MD&A and should be
read in conjunction with it.
i
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 13,625 residents. The City
of Anna is empowered to levy a property tax on both real and personal properties located
within its boundaries. It also is empowered by state statue to extend its corporate limits by
annexation, which occurs periodically when deemed appropriate by the governing body.
The City of Anna operates under a home rule charter adopted in 2005, with a Council -Manager
form of government. Policy -making and legislative authority are vested in the City Council
consisting of the Mayor and six Council members. The City Council is responsible for, among
other things, passing ordinances, resolutions, and regulations governing the City as well as
adopting the budget which serves as the foundation for financial planning and control. The
City Council appoints the City Manager, who has full responsibility for carrying out the policies
and ordinances of the City Council, for overseeing the day-to-day operations of the government
and appointing the heads of the various departments. The City Council also appoints the City
Attorney, City Secretary, and Municipal 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 employees 79.5 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
ii
a fund; however, require special approval of the City Council in the form of an Ordinance
formally amending the adopted budget.
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 2017, the City received 440 single family building permit
applications. The City currently has 2,079 new residential lots under development and another
1,751 residential lots in the planning or design phase. A 120-unit multi -family apartment
complex is also currently being developed.
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.
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
ill
amount equal or greater than 25% of annual general fund operating expenditures. The City's
ending unassigned fund balance for fiscal year 2017 reflected a fund balance of 73.5% 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.
Major Initiatives
At the end of the 2016-17 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. US
75 and FM 455, which are both TxDOT projects, are currently under construction with
FM 455 nearing completion. During 2016-2017, 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. The City also continues to use developer
incentives/agreements to improve other critical roadways within the City.
In addition, for the past several years, the City of Anna has been studying alternatives
for the construction of a new buildings and facilities as we continue to grow. In 2017,
the City continued to work with an architectural firm hired by the City to continue to
evaluate the needs of the City, and develop several conceptual designs of a new City
Hall. The City has purchased a 4.1-acre tract of land located at the southeast corner of
Fifth Street and Powell Parkway (SH 5). The property's size and proximity to existing
City buildings make it an ideal location for the long-term expansion and construction of
a City Hall. The City continues to plan for the construction of a new city hall within the
next two years.
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.
Budgetary Control: Each year, on or before September 20t", 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.
Furthermore, the work of the independent auditors from Lafollett and Abbott, PLLC, is greatly
appreciated.
Respectfully submitted,
107, U WN I �Mjl �
Dana Thornhill
Finance Director
u
City Organization Chart
vi
City of Anna, Texas
ELECTED OFFICIALS AND MANAGEMENT
Vacant
Justin Burr
Rene Martinez
John Beazley
Vacant
Nathan Bryan
Lee Miller
Philip Sanders
Dana Thornhill
Kenny Jenks
Tim Gothard
Carrie Smith
Joseph Johnson
Maurice Schwanke
Jessica Perkins
September 30, 2017
City Council
Mayor
Place 1- Mayor Pro Tem
Place 2
Place 3
Place 4
Place 5
Place 6 - Deputy Mayor Pro Tem
Management
City Manager
Finance Director
Police Chief
Fire Chief
City Secretary
Public Works Director
Director of Planning and Development
Assistant to the City Manager/
Economic Development Officer
vii
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FINANCIAL SECTION
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Susan La Follett, CPA — Partner
Rod Abbott, CPA — Partner
and Abbott PLLC
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the City Council of the
City of Anna, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the aggregate 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, 2017, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes 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.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements 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, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
1
LaFollett and Abbott PLLC
PO Box 717 - Tom Bean, TX - 75489
903-546-6975 • www.lafollettcpa.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Anna, Texas, as of September 30, 2017, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion on pages 4-13, the Schedule of Revenues, Expenditures, and Changes
in Fund Balances — Budget and Actual — General Fund on page 64, the Schedule of Employer
Contributions to Pension Plan — TMRS on page 66, and the Schedule of Changes in Net Pension
Liability and Related Ratios — Last 10 years on page 65 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section on pages i-
vii, combining and individual fund financial statements and schedules on pages 68-83, and the
statistical section on pages 87-104 are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The introductory section, combining and
individual fund financial statements and schedules, and statistical section have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and
accordingly, we do not express an opinion on them or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March
27, 2018, on our consideration of the City's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City of Anna, Texas internal control over financial reporting and compliance.
Tom Bean, Texas
March 27, 2018
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MANAGEMENT'S DISCUSSION
AND ANALYSIS
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City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
September 30, 2017
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, 2017. We encourage readers to consider the information
presented here in conjunction with additional information contained in this report.
Financial Highlights
The City's total combined net position was $52,426,322 at September 30, 2017. Of this,
$6,774,517 (unrestricted net position) may be used to meet the City's ongoing obligations
to its citizens and creditors.
At the close of the current fiscal year, the City's governmental funds reported combined
fund balances of $5,963,636, an increase of $2,484,433.
As of the end of the year, the unassigned fund balance of the General Fund was
$3,741,504 or 61% of total General Fund expenditures.
The City had an overall increase in net position of $13,855,711. The increase is primarily
a result of $9,788,695 of capital grants and contributions.
On a government -wide basis, the City's total liabilities decreased by $1,459,195.
Overview of the Financial Statements
The discussion and analysis provided here are 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.
4
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
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).
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through
user fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, culture and recreation, and 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 and proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in assessing a
government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government -wide financial
statements. By doing so, readers may better understand the long-term impact of the
government's near -term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
5
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
The City maintains thirteen individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund, which is considered to be a
major fund. 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.
Proprietary Funds
The City's proprietary funds are all 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 these funds, 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.
Proprietary financial statements provide the same type of information as the government -wide
financial statements, only in more detail. The proprietary fund financial statements provide
separate information for the utility funds, all of which are considered to be major funds of the
City.
Component Units
The City maintains the accounting and financial statements for two component units. The Anna
Economic Development Corporation and Anna Community Development Corporation, which
are discreetly 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.
0
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
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
asset and related ratios and schedule of employer contributions for the Texas Municipal
Retirement System. 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 is $52,426,322 as of September 30, 2017, in
the primary government.
The largest portion of the City's net position, $37,755,346, 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.
The following table reflects the condensed Statement of Net Position:
2017
2016
Governmental Business -Type Governmental Business -Type
Activities Activities Total Activities Activities Total
Current and
other assets
$ 6,830,809
$ 5,770,692
$12,601,501
$ 6,588,249
$ 3,242,149
$ 9,830,398
Restricted assets
13,251
6,407,402
6,420,653
19,580
7,349,941
7,369,521
Capital assets, net
23,588,968
43,412,757
67,001,725
18,671,866
38,116,329
56,788,195
Total Assets
30,433,028
55,590,851
86,023,879
25,279,695
48,708,419
73,988,114
Deferred Outflows of
Resources
401,599
280,733
682,332
402,311
302,507
704,818
Other liabilities
1,273,090
3,686,574
4,959,664
1,812,477
3,074,569
4,887,046
Long-term liabilities
3,665,840
25,434,805
29,100,645
5,648,586
24,983,872
30,632,458
Total Liabilities
4,938,930
29,121,379
34,060,309
7,461,063
28,058,441
35,519,504
Deferred Inflows of
Resources
163,387
56,194
219,581
151,679
52,497
204,176
Net Position:
Net investment
in capital assets
20,398,968
17,356,378
37,755,346
13,466,866
12,787,858
26,254,724
Restricted
1,489,057
6,407,402
7,896,459
1,550,067
7,349,941
8,900,008
Unrestricted
3,844,285
2,930,232
6,774,517
3,052,331
762,189
3,814,520
Total Net Position
—$ 25,732,310
$ 26,694,012
$52,426,322
$ 18,069,264
$ 20,899,988
$38,969,252
7
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
Statement of Activities:
The following table provides a summary of the City's changes in net position:
For the Year Ended September 30, 2017
For the Year Ended September 30, 2016
Total
Total
Governmental
Business -Type
Primary
Governmental
Business -Type
Primary
Activities
Activities
Government
Activities
Activities
Government
Revenues
Program revenues:
Charges for services
$ 2,295,832
$ 9,805,662
$12,101,494
$ 1,301,767
$ 7,523,193
$ 8,824,960
Operating grants and contributions
351,482
-
351,482
333,948
-
333,948
Capital grants and contributions
6,489,958
3,298,737
9,788,695
-
776,416
776,416
General revenues:
Property taxes
4,619,461
-
4,619,461
3,973,028
-
3,973,028
Sales taxes
1,203,749
1,203,749
1,542,309
1,542,309
Franchise and local taxes
505,571
505,571
447,498
447,498
Investment income
26,199
63,607
89,806
31,816
69,608
101,424
Other revenue
56,327
69,610
125,937
166,773
29,193
195,966
Intergovernmental
185,392
-
185,392
-
-
-
Total Revenues
15,733,971
13,237,617
28,971,588
7,797,139
8,398,410
16,195,549
Expenses
General government
1,405,085
1,405,085
1,393,256
1,393,256
Public safety
3,062,333
3,062,333
2,727,997
2,727,997
Culture and recreation
665,430
665,430
584,676
584,676
Public works
1,502,775
1,502,775
1,261,514
1,261,514
Community services
904,227
904,227
690,842
690,842
Economic and Comm. Development
-
-
146,929
146,929
Inerest and fiscal charges
132,434
132,434
174,446
1,173,240 1,347,686
Water, sewer, & sanitation
-
7,443,593 7,443,593
-
6,198,112 6,198,112
Total Expenses
7,672,284
7,443,593 15,115,877
6,979,660
7,371,352 14,351,012
Change in Net Position
Before Transfers 8,061,687 5,794,024 13,855,711 817,479 1,027,058 1,844,537
Transfers
108,556
(108,556)
Total Transfers
- -
-
108,556
(108,556) -
Change in Net Position
8,061,687 5,794,024
13,855,711
926,035
918,502 1,844,537
Beginning Net Position
18,069,264 20,899,988
38,969,252
17,143,229
19,981,486 37,124,715
Prior Period Adjustment
(398,641) -
(398,641)
-
- -
Ending Net Position $
25,732,310 $ 26,694,012
$ 52,426,322
$ 18,069,264
$ 20,899,988 $ 38,969,252
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
Graphic presentations of selected data from the summary tables are displayed below to assist in
the analysis of the City's activities.
Governmental Activities - Revenues
Grants and Sales Taxes
o Intergovernmental
Contributions 81u 1%
44%
Investment Incon
0%
Property Taxes
29%
ranchise and
Local Taxes
3%
Charges for
Services
15%
OtherRevenue
For the year ended September 30, 2017, revenues from governmental activities totaled
$15,733,971. Grants and contributions, property taxes, and charges for services are the City's
largest revenue sources. Property tax increased by $646,433 or 16% when compared to 2016 due
to an increase in overall assessed property values. Grants and contributions increased from $0
in 2016 to $6,489,958 mostly due to $6,343,251 in contributed capital relating to streets and
drainage. This graph shows the governmental function expenses of the City:
Public V
19°G
Culture ar
Recreatioi
9%
Governmental Activities -Expenses
Community
Services
12%
General
Government
18%
0
ablic Safety
40%
t and Fiscal
Charges
2%
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
For the year ended September 30, 2017, expenses for governmental activities totaled $7,672,284.
This represents an increase of $692,624 or 9.9% from the prior year. The City's largest functional
expense is public safety of $3,062,333 which increased by $334,336.
Public works totaled $1,467,800 as of year-end for an increase of $241,261 or 19.1% due to street
rehabilitation projects and advanced paving. Community services increased by $213,385 or 31%
due to an increase in permit fees for Bureau Veritas.
Business -type activities are shown comparing operating costs to revenues generated by related
services.
Business -Type Activities - Revenues and Expenses
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000, 000
M Expenses
M Charges for
Services
For the year ended September 30, 2017, charges for services by business -type activities totaled
$9,805,662. This is an increase of $2,282,469, or 30%, from the previous year. This increase
directly relates to an increase in the usage/service counts and growth within the City. Expenses
totaled $7,443,593, which was an increase of only $72,241, or 1%.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance -
related legal requirements.
Governmental Funds - The focus of the City's governmental funds is to provide information of
near -term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unassigned fund balance may serve
as a useful measure of the City's net resources available for spending at the end of the year.
10
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
As of the end of 2017, the General Fund reflected a total fund balance of $4,495,040. Of this,
$12,768 is considered restricted for parks and $180,377 is committed for revenue stabilization.
$560,391 is also committed for capital projects. Unassigned fund balance totaled $3,714,504 as of
year-end. The General Fund saw a significant increase in property taxes when compared to the
prior year. This directly relates to an increase in property values.
The Debt Service Fund had an ending fund balance of $15,583 at year-end for an increase of
$12,735. Total principal and interest expenditures incurred during the year were $328,000 and
$97,376, respectively.
There was an overall increase in governmental fund balances of $2,484,433 from the prior year.
The increase was primarily related to increases in revenues.
Proprietary Funds - The City's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
GENERAL FUND BUDGETARY HIGHLIGHTS
There was a total positive revenue variance of $487,479 and a positive expenditure variance of
$561,942 for the year. Other financing sources (uses) had an overall negative budget variance of
$1,399. This positive revenue variance was primarily the result of more than anticipated licenses
and permit fees due to new development within the City. This fund had an overall positive
budget versus actual variance of $1,048,022. Several supplemental budget amendments were
made during the year.
CAPITAL ASSETS
As of the end of the year, the City's governmental activities funds had invested $23,588,968 in a
variety of capital assets and infrastructure, net of accumulated depreciation. Depreciation is
included with the governmental capital assets as required by GASB Statement No. 34. The
City's business -type activities funds had invested $43,412,757 in a variety of capital assets and
infrastructure, net of accumulated depreciation.
Major capital asset events during the current year include the following:
Street contributions of $6,343,251 relating to paving and drainage
Water & Sewer improvements totaling $3,102,187
Construction in progress for various water and sewer projects totaling $2,008,487
More detailed information about the City's capital assets is presented in note IV. C to the
financial statements.
11
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
LONG-TERM DEBT
At the end of the current year, the City had total bonds, contractual obligations, and capital
leases outstanding of $29,177,760. During the year, the City made payments on long-term debt
totaling $1,905,500. More detailed information about the City's long-term liabilities is presented
in note IV. D to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The economy continues to be strong for the City of Anna and the North Central area. Focused
on having a balanced community, the City takes a proactive approach to economic
development with its business recruitment efforts, as well as continued development of
residential housing options. In addition, the City conservatively manages its budget. The fiscal
year 2016-17 budget reflects the commitment of the City Council and staff to preserve and
enhance the quality of existing services to our citizens 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. In 2016, the City saw
existing property values increase just over 13% and over $35,000,000 in new value was added
the tax roll. Again, in 2017, the City saw existing property values increase just over 14% and
approximately $65,000,000 in new 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 that additional value will be added to the tax roll as a result of new construction
in the near term.
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, 2018 was 13,625.
The City has forecasted the construction of approximately 250 new single-family homes during
the 2018 fiscal year. There are currently several residential developments either in design or
under construction that will add 2,079 single family lots to our inventory over the next 12 to 36
months.
Of course, with the growth in population comes a proportional increase in demand for
municipal services that are funded primarily by property taxes. In order to fund the FY 2018
budget, the City adopted a tax rate of $0.601288 per $100 valuation which is a decrease from the
tax rate adopted in FY 2017. This marks the 4th year in row that the City Council has been able
12
City of Anna, Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A), Continued
September 30, 2017
to decrease the City property tax rate. When compared with other cities in our area, the City of
Anna still has one of lowest per -capita property tax levies.
Rapid population growth has also resulted in significant investment over the past 10 to 15 years
in the City's water and sewer system. Currently the Water and Sewer Fund holds just over
$23.4 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 refundings 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 belong 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 2018. 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. This increased water
consumption coupled with an increase in the price of water supplied from NTMWD has
resulted in a 52.4% increase in the budgeted cost for treated surface water.
The City of Anna's budget continues to be impacted by moderately strong growth and by
conservative fiscal management. The 2017-2018 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, 111 N.
Powell Parkway, Anna, Texas 75409.
13
FINANCIAL STATEMENTS
(This page intentionally left blank.)
City of Anna, Texas
STATEMENT OF NET POSITION
September 30, 2017
Primary Government
Governmental Business -Type Component Units
Activities Activities Total CDC EDC
Assets
Current assets:
Cash and cash equivalents $
6,120,668
$ 4,538,396
$ 10,659,065 $ 472,345 $ 327,424
Investments
123,884
123,884
247,767 - -
Receivables, net
586,257
1,089,034
1,675,291 238,664 131,517
Inventories
-
19,378
19,378 - -
Total Current Assets
6,830,809
5,770,692
12,601,501 111,010 458,941
Restricted assets:
Restricted cash and pooled investments
GTUA prepaid reserves
Capital assets:
13,251 4,510,117 4,523,368 - -
- 1,897,285 1,897,285 - -
Non -depreciable
2,550,155
5,911,114
8,461,269 2,757,904
215,637
Net depreciable capital assets
21,038,813
37,501,643
58,540,456 -
286,272
23,602,219
49,820,159
73,422,378 7757,904
501,909
Total Assets
30,433,028
55,590,851
86,023,879 3,468,914
960,850
Deferred Outflows of Resources
Deferred loss on bond refunding
-
151,220
151,220 -
-
Pension contributions
288,949
91,247
380,196 -
-
Pension investment earnings
112,650
38,266
150,916 -
-
Total Deferred Outflows of Resources
401,599
280,733
682,332 -
-
Liabilities
Current liabilities:
Accounts payable and
other liabilities
Accrued salaries
Customer deposits
Due to other governments
Accrued compensated absences
Accrued interest payable
Current portion of long-term debt
Unclaimed property
759,250
922,957
1,682,207
1,553 102,201
51,684
16,651
68,334
- -
-
800,624
800,624
-
-
5,962
5,962
- -
145,842
26,328
172,170
- -
10,897
1,048,424
1,059,321
15,498 -
297,000
865,629
1,162,629
204,000 -
8,417
-
8,417
- -
1,273,090
3,686,574
4,959,663
221,051 102,201
Noncurrent liabilities:
Due in more than one year 2,893,000 25,190,750 28,083,750 3,295,000 Net pension liability 772,840 244,055 1,016,895 - -
3,665,840 25,434,805 29,100,645 3,295,000 -
Total Liabilties 4,938,930 29,121,378 34,060,308 3,516,051 102,201
Deferred Inflows of Resources
Pension (gains) losses 163,387 56,194 219,581 -
Total Deferred Inflows of Resources 163,387 56,194 219,581
Net Position
Net investment in capital assets
Restricted for:
Water and sewer improvements
Capital projects and other
GTUA deposits
20,398,968 17,356,378 37,755,346 (741,096) 501,909
- 4,510,117 4,510,117 - -
1,489,057 - 1,489,057 - -
- 1,897,285 1,897,285 -
Commumty and economic development - - - 693,958 356,740
Unrestricted 3,844,285 2,930,232 6,774,517 - -
Total Net Position $ 25,732,310 $ 26,694,012 $ 52,426,322 $ (47,138) $ 858,649
See Notes to Financial Statements.
14
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Functions/Programs Expenses
Primary government:
Governmental activities:
City of Anna, Texas
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2017
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Primary Government Component Units
Operating Capital Community Economic
Charges for Grants and Grants and Governmental Business -type Development Development
Services Contributions Contributions Activities Activities Total Corporation Corporation
General government
$ 1,405,085
$ 136,465 $
- $ -
$ (1,268,620) $
- $ (1,268,620)
Culture and recreation
665,430
553,511
-
(111,919)
- (111,919)
Community services
904,227
1,173,516
- -
269,289
- 269,289
Public safety
3,062,333
49,950
351,482 -
(2,660,901)
- (2,660,901)
Public works
1,502,775
382,390
- 6,489,958
5,369,573
- 5,369,573
Interest and fiscal charges
132,432
-
- -
(132,432)
- (132,432)
Total governmental activities
7,6721283
2,295,832
351,482 6,489,958
1,464,989
- 1,464,989
Business -type activities:
Water and Sewer - operating
7,443,593
9,805,662
- 3,298,737
-
5,660,806 5,660,806
Total business -type activities
7,443,593
9,805,662
- 3,298,737
-
5,660,806 5,660,806
Total primary government
15,115,876
12,101,494
351,482 9,788,695
1,464,989
5,660,806 7,125,795
Component Units:
Community Development Corporation
Economic Development Corporation
Total Component Units
See Notes to Financial Statements.
390,399 - - -
876,350 12,133 - -
$ 1,266,748 $ 12,133 $ - $ -
General revenues:
$ (390,399) $ -
(864,217)
(390,399) (864,217)
Property taxes
4,619,461
-
4,619,461
-
-
Sales taxes
1,203,749
-
1,203,749
674,037
241,060
Franchise and local taxes
505,571
-
505,571
-
-
Investment interest
26,199
63,607
89,807
1,676
1,978
Other Revenue
56,327
69,610
125,937
-
23,733
Intergovernmental
185,392
-
185,392
725,000
-
Total General Revenues
6,596,699
133,218
6,729,916
1,400,713
266,771
Change in Net Position
8,061,687
5,794,024
13,855,711
1,010,315
(597,445)
Beginning Net Position
18,069,264
20,899,988
38,969,252
-
-
Prior period adjustments
(398,641)
-
(398,641)
(1,057,453)
1,456,094
Ending Net Position
$ 25,732,310
$ 26,694,012
$ 52,426,322
$ (47,138) $
858,649
15
City of Anna, Texas
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2017
Nonmaj or
Total
Debt
Governmental
Governmental
General
Service
Funds
Funds
Assets
Cash and cash equivalents
$
3,816,757
$
483,007
$
1,820,904
$
6,120,668
Investments
123,884
-
-
123,884
Receivables, net
569,401
11,886
4,970
586,257
Due from other funds
605,859
-
467,424
1,073,283
Restricted cash
13,251
-
-
13,251
Total Assets
$
5,129,152
$
494,893
$
2,293,298
$
7,917,344
Liabilities
Accounts payable
$
368,838
$
-
$
69,478
$
438,316
Accrued liabilities
155,986
-
164,948
320,934
Accrued salaries
51,684
-
-
51,684
Unclaimed property
8,417
-
-
8,417
Due to other funds
-
467,424
605,859
1,073,283
Total Liabilities
584,925
467,424
840,285
1,892,634
Deferred Inflows of Resources
Unavailable revenue:
Property tax
49,187
11,886
-
61,073
Total Deferred Inflows of
Resources
49,187
11,886
-
61,073
Fund Balances
Committed for:
Revenue stabilization
180,377
-
-
180,377
Capital projects
560,391
-
-
560,391
Restricted for:
Parks
12,768
-
-
12,768
Debt service
-
15,583
-
15,583
Public saftey
-
-
95,590
95,590
Municipal court
-
-
18,805
18,805
Capital projects
-
-
1,346,312
1,346,312
Unassigned
3,741,504
-
(7,694)
3,733,811
Total Fund Balances
4,495,040
15,583
1,453,013
5,963,636
Total Liabilities, Deferred
Inflows, and Fund Balances
$
5,129,152
$
494,893
$
2,293,298
$
7,917,344
See Notes to Financial Statements.
16
City of Anna, Texas
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS
September 30, 2017
Fund Balances - Total Governmental Funds $ 5,963,636
Adjustments for the Statement of Net Position:
Capital assets used in governmental activities are not current financial
resources and, therefore not reported in the governmental funds.
Capital assets - non -depreciable 2,550,155
Capital assets - net depreciable 21,038,813
Other long-term assets are not available to pay for current -period expenditures
and, therefore, are deferred in the governmental funds. 61,073
Deferred outflows or resources, represent a consumption of net position that
applies to a future period(s) and is not recognized as an outflow of resources
(expenditure).
Pension contributions 288,949
Pension investment earnings 1121650
Deferred inflows of resources, represent an acquisition of net position that
applies to a future period(s) and so will not be recognized as inflow of resources
(revenue) until that time.
Pension (gains) losses (163,387)
Some liabilities, including bonds payable and deferred charges, are not reported
as liabilities in the governmental funds.
Accrued interest payable (10,897)
Non -current liabilities due in one year (297,000)
Non -current liabilities due in more than one year (2,893,000)
Net pension liability (772,840)
Compensated Absences (145,842)
Net Position of Governmental Activities $ 25,732,310
17
City of Anna, Texas
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended September 30, 2017
Nonmaj or Total
Debt Governmental Governmental
Revenues
Property tax $
3,731,880 $
897,740 $
- $
4,629,620
Sales tax
1,203,749
-
-
1,203,749
Franchise and local taxes
505,571
-
-
505,571
Intergovernmental
185,392
-
-
185,392
Charges for services
129,197
-
977,423
1,106,620
Contributions and donations
351,482
-
-
351,482
License and permits
1,115,294
-
-
1,115,294
Fines and forfeitures
73,918
-
-
73,918
Investment income
18,845
2,043
5,311
26,199
Other revenue
80,806
-
37,126
117,932
Total Revenues
7,396,134
899,783
1,019,860
9,315,777
Expenditures
Current:
General government
1,204,165
-
17,188
1,221,353
Police department
1,721,746
-
-
1,721,746
Municipal court
115,543
-
2,772
118,315
Fire department
977,551
-
-
977,551
Ambulance
143,173
-
-
143,173
Park
323,349
-
8,900
332,249
Streets
429,128
-
34,652
463,780
Development and animal control
902,552
-
-
902,552
Debt Service:
Principal
-
328,000
-
328,000
Interest and fiscal charges
-
97,376
-
97,376
Capital outlay
294,697
271,277
565,974
Total Expenditures
6,111,904
425,376
334,789
6,872,069
Excess (Deficiency) of Revenues
Over (Under) Expenditures
1,284,230
474,407
685,071
2,443,708
Other Financing Sources (Uses)
Transfers in
-
-
585,209
585,209
Transfers (out)
(117,785)
(467,424)
-
(585,209)
Bond Proceeds
-
850,000
-
850,000
Debt Issuance Costs
-
(23,350)
-
(23,350)
Payment to Escrow
-
(820,899)
-
(820,899)
Proceeds from sold assets
8,601
-
26,373
34,974
Total
(109,184)
(461,672)
611,582
40,726
Net Change in Fund Balances
1,175,045
12,735
1,296,653
2,484,433
Beginning fund balances (restated)
3,319,995
2,848
156,360
3,479,203
Ending Fund Balances $
4,495,040 $
15,583 $
1,453,013 $
5,963,636
See Notes to Financial Statements.
In
City of Anna, Texas
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2017
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances - total governmental funds $ 2,484,433
Governmental funds report capital outlay as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. Capital contributions are
only recognized on the statement of activities.
Capital outlay 565,974
Depreciation expense (1,652,757)
Capital contributions 6,489,958
Net effect of capital disposals and transfers (131,727)
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.
(Increases) in compensated absences (6,358)
Increases in accrued interest (11,707)
Pension expense (14,288)
Various other reclassification and eliminations are necessary to convert from
the modified accrual basis of accounting to accrual basis of accounting. This
includes the realization of changes in deferred revenues from the prior year
and other items. 10,159
The principal payments on long-term debt (e.g., bonds, leases, certificates of
obligation) are current financial (uses) for the governmental funds. These
payments are recognized as a reduction of long-term debt for the Statement of
Activities:
Principal payments 328,000
Change in Net Position of Governmental Activities $ 8,061,687
See Notes to Financial Statements.
19
City of Anna, Texas
STATEMENT OF NET POSITION
PROPRIETARY FUND (Page I of 2)
September 30, 2017
Utility
Fund
Assets
Current Assets
Cash and cash equivalents $
4,538,396
Certificates of deposit
123,884
Receivables, net
1,089,034
Inventories
19,378
Total Current Assets
5,770,692
Noncurrent Assets
Restricted cash and pooled investments
4,510,117
GTUA prepaid reserves
1,897,285
Capital assets:
Non -depreciable
5,911,114
Net depreciable capital assets
37,501,643
Total Noncurrent Assets
49,820,159
Total Assets
55,590,851
Deferred Outflows of Resources
Deferred loss on bond refunding
151,220
Pension investment earnings
38,266
Pension contributions
91,247
Total Deferred Outflows of Resources
280,733
20
City of Anna, Texas
STATEMENT OF NET POSITION
PROPRIETARY FUND (Page 2 of 2)
September 30, 2017
Liabilities
Current Liabilities
Accounts payable
Salaries payable
Other liabilties
Bond interest payable
Due to other governments
Customer deposits
Accrued compensated absences
Current portion of long-term debt
Noncurrent Liabilities
Due in more than one year
Net pension liability
Deferred Inflows of Resources
Pension (gains) losses
Net Position
Net investment in capital assets
Restricted for:
GTUA deposits
Water and sewer improvements
Unrestricted
See Notes to Financial Statements.
Total Current Liabilities
Total Noncurrent Liabilities
Total Liabilities
Total Deferred Inflows of Resources
Total Net Position
Utility
Fund
$ 882,951
16,651
40,006
1,048,424
5,962
800,624
26,328
865,629
3,686,574
25,190,750
244,055
25,434,805
29,121,378
56,194
56,194
17,356,378
1,897,285
4,510,117
2,930,232
$ 26,694,012
21
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City of Anna, Texas
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended September 30, 2017
Operating Revenues
Water
Sewer
Sanitation
Inspection fees
Installation and tap fees
Groundwater production fees
Total Operating Revenues
Operating Expenses
Depreciation
Personnel services
North Texas M.W.D. and GTUA water costs
Contracted services
Sanitation contract
Reimbursed developer fees
Utilities
Supplies
Other expenses
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses)
Investment income
Gain on sold capital assets
Interest expense
Other revenue
Developer and impact fees
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers and Capital Contributions
Transfers in
Transfers (out)
Contributed capital
See Notes to Financial Statements.
Change in Net Position
Beginning net position
Ending Net Position
Utility
Fund
$ 3,989,269
2,338,775
911,084
690,730
234,712
59.692
1,558,201
1,126,838
889,388
808,423
741,474
532,000
418,993
343,516
71.428
b,4W,261
1,734,001
63,607
19,081
(953,332)
50,530
1,581,400
761,286
2,495,287
467,424
(467,424)
3,298,737
5,794,024
20,899,988
$ 26,694,012
22
City of Anna, Texas
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Page 1 of 2)
For the Year Ended September 30, 2017
Operating Activities:
Receipts from customers and users
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
Capital and Related Financing Activities:
Proceeds from sold assets
Developer contributions
Cash from restricted capital improvements accounts
Cash paid for acquisition and construction of capital assets
Interest paid on long-term debt
Principal payments on debt
Net cash provided (used) by capital and related financing activities
Non -capital and Related Financing Activities
Net cash provided (used) by non -capital and related financing activities
Investing Activities:
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, October 1
Cash and cash equivalents, September 30
See Notes to Financial Statements.
Utility
Fund
$ 8,178,754
(3,056,388)
(1,550,933)
3,571,434
19,081
1,581,400
1,044,415
(2,237,106)
(879,302)
(772,500)
(1,244,012)
63,607
63,607
2,391,029
2,147,367
$ 4,538,396
23
City of Anna, Texas
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Page 2 of 2)
For the Year Ended September 30, 2017
Reconciliation of Operating Income to Net Cash Provided
(Used) by Operating Activities:
Operating income (loss) $
1,734,001
Adjustments to reconcile operating income to net cash provided (used)
by operating activities:
Depreciation expense
1,558,201
Decrease (increase) in accounts receivable
(126,922)
Decrease (increase) in inventories
(9,483)
Increase (decrease) in accounts payable
325,221
Increase (decrease) in other liabilities
1,734
Increase (decrease) in customer deposits
81,415
Increase (decrease) in accrued compensated absences
7,268
Net cash provided by operating activities $
3,571,434
Non -cash capital activities:
Contributions of capital assets
Capital assets acquired through capital leases
See Notes to Financial Statements.
$ 3,298,737
$ 1,340,010
24
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City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Anna, Texas (the "City") is a home rule charter city that operates under a council
manager form of government. 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 accounting policies of the City conform to generally accepted accounting principles (GAAP)
applicable to government units. The following is a summary of the more significant accounting
policies.
A. Description of 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 non -fiduciary activities of the
primary government and its component units. Governmental activities, which normally are
supported by taxes, intergovernmental revenues, and other non -exchange transactions,
are reported separately from business -type activities, which rely to a significant extent on
fees and charges to external customers for support. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary
government is financially accountable.
B. Reporting Entity
The City is an independent political subdivision of the State of Texas governed by an
elected council and is considered a primary government for financial reporting purposes as
its activities are not considered a part of any other governmental or other type of reporting
entity. 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 Anna Economic Development Corporation ("EDC") and Anna
Community Development Corporation ("CDC'), although legally separate, are considered
part of the reporting entity. No other entities have been included in the City's 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
25
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
separately elected governing body; it is legally separate; and 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.
Discretely Presented Component Units
Anna Economic Development Corporation
The Anna Economic Development Corporation is governed by a board of seven directors,
all of whom are appointed by the City Council at its will. The 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. The EDC is presented discretely because the criteria
for blended presentation was not met. Separately audited financial statements are not
issued.
Anna Community Development Corporation
The Anna Community Development Corporation is governed by a board of seven
directors, all of whom are appointed by the City Council at its will. The 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. The CDC is presented
discretely because the criteria for blended presentation was not met. Separately audited
financial statements are not issued.
C. Basis of Presentation — Government -Wide and Fund Financial Statements
While separate government -wide and fund financial statements are presented, they are
interrelated. The governmental activities column incorporates data from governmental
funds while business -type activities incorporate data from the government's enterprise
funds. Separate financial statements are provided for governmental funds and the
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 government's water and transit
functions and various other functions of the government. Elimination of these charges
26
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
would distort the direct costs and program revenues reported for the various functions
concerned.
The fund financial statements provide information about the government's funds,
including its blended component units. 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.
The City reports the following major governmental funds:
General Fund
The General Fund is the main operating fund of the City and is used to account for all
financial transactions not properly includable 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.
Debt Service Fund
The City accounts for the accumulation of financial resources for the payments of
principal, interest and related costs on general long-term debt paid primarily from
taxes levied by the City. The fund balance of the Debt Service Fund is restricted
exclusively for debt service expenditures.
Proprietary Fund Types
Proprietary funds are used to account for activities that are similar to those often found in the
private sector. All assets, liabilities, equities, revenues, expenses, and transfers relating to the
City's business activities are accounted for through proprietary funds. The measurement
focus is on determination of net income, financial position, and cash flows. Proprietary funds
distinguish operating revenues and expenses from non -operating items. Operating revenues
include charges for services. Operating expenses include costs of materials, contracts,
personnel, and depreciation. All revenues and expenses not meeting this definition are
reported as non -operating revenues and expenses. Proprietary fund types follow GAAP
prescribed by the Governmental Accounting Standards Board (GASB) and all financial
Accounting Standards Board's standards issued prior to November 30, 1989. Subsequent to
this date, the City accounts for its enterprise funds as presented by GASB. The government
reports the following major enterprise fund:
27
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Utility 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.
Additionally, the government reports the following non -major fund types:
Capital Projects Fund
Accounts for the acquisition and construction of governmental -type assets from
expenditures of debt proceeds, capital grants, or other sources restricted for
governmental type asset acquisition.
Special Revenue Funds
The City accounts for resources restricted to, or designated for, specific purposes in a
Special Revenue Fund. These funds consist of the child safety fund, police seizure
fund, police training fund, court security fund, court technology fund, PEG capital
fund, park construction fund, fire department capital improvement fund, roadway
impact fee service area one, and road capital developer agreements fund.
During the course of operations the government 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
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
funds included in business -type activities are eliminated so that only the net amount is
included as transfers in the business -type activities column.
D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. Measurement focus refers to what is being measured and basis of
accounting refers to when transactions are recorded in the financial records and reported
on the financial statements and relates to the timing of the measurement made, regardless
of the measurement focus applied.
The government -wide statements and fund financial statements for proprietary funds are
reported using the economic resources measurement focus and the accrual basis of
accounting. The economic resources measurement focus means all assets and liabilities
(whether current or non -current) are included on the statement of net position and the
operating statements present increases (revenues) and decreases (expenses) in total net
position. Under the accrual basis of accounting, revenues are recognized in the accounting
period in which they are earned and become measurable, and expenses in the accounting
period in which they are incurred and become measurable. Proprietary fund equity
consists of net position. Proprietary fund -type operating statements present increases (i.e.,
revenues) and decreases (i.e., expenses) in net total position.
All governmental funds are reported using the current financial resources measurement
focus and are accounted for using the modified accrual basis of accounting. Under the
modified accrual basis of accounting, revenues are recognized in the accounting period
when they are susceptible to accrual (i.e., when they are measurable and available).
Measurable means the amount of the transaction can be determined and available means
collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, 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.
E. 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 disclosure of contingent assets and liabilities
29
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
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.
F. Assets, Liabilities, Deferred Inflows/Outflows, and Net Position/Fund Balance
1. Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand
deposits 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.
In accordance with GASB Statement No. 31, Accounting and Reporting for Certain
Investments and External Investment Pools, the City reports all investments at fair value,
except for "money market investments" and "2a7-like pools." Money market
investments, which are short-term highly liquid debt instruments that may include
U.S. Treasury and agency obligations, are reported at amortized costs. Investment
positions in external investment pools that are operated in a manner consistent with
the SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexSTAR, are
reported using the pools' share price.
The City has adopted a written investment policy regarding the investment of its
funds as defined in the Public Funds Investment Act, Chapter 2256, of the Texas
Governmental Code.
In summary, the City is authorized to invest in the following:
Direct obligations of the U.S. Government
Fully collateralized certificates of deposit and money market accounts
Statewide investment pools
2. Fair Value
As of September 30, 2017, The City has applied Governmental Accounting Standards
Board ("GASB") Statement No. 72, Fair Value Measurement and Application. GASB
Statement No. 72 provides guidance for determining a fair value measurement for
reporting purposes and applying fair value to certain investments and disclosures
related to all fair value measurements.
30
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
3. Receivables and Interfund Transactions
Transactions between funds that are representative of lending/borrowing
arrangements outstanding at the end of the year are referred to as either "interfund
receivables/payables"(i.e., the current portion of interfund loans) or "advances to/from
other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds" in the fund
financial statements. If the transactions are between the primary government and its
component unit, these receivables and payables are classified as "due to/from
component unit/primary government." Any residual balances outstanding between
the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances."
Advances between funds are offset by a fund balance reserve account in the applicable
governmental fund to indicate they are not available for appropriation and are not
expendable available financial resources.
All trade receivables are shown net of any allowance for uncollectible amounts.
4. Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior
January 1 for all real and business personal property in conformity with Subtitle E,
Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if
not paid before February 1 of the year following the year in which imposed. Penalties
are calculated after February 1 up to the date collected by the government at the rate of
6% for the first month and increased 1% per month up to a total of 12%. Interest is
calculated after February 1 at the rate of 1% per month up to the date collected by the
government. Under state law, property taxes levied on real property constitute a lien
on the real property which cannot be forgiven without specific approval of the State
Legislature. The lien expires at the end of twenty years. Taxes levied on personal
property can be deemed uncollectible by the City.
5. Inventories and Prepaid Items
The costs of governmental fund type inventories are recorded as expenditures when
the related liability is incurred, (i.e., the purchase method). The inventories are valued
at the lower of cost or fair using the first-in/first-out method. Certain payments to
vendors reflect costs applicable to future accounting periods (prepaid expenditures)
are recognized as expenditures when utilized.
31
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
6. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable
governmental or business -type activities columns in the government -wide financial
statements. Capital assets are defined by the government, as assets with an initial
individual cost of more than $5,000 and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of
donation. Major outlays for capital assets and improvements are capitalized as projects
are constructed.
Interest costs incurred in connection with construction of enterprise fund capital assets
are capitalized when the effects of capitalization materially impact the financial
statements.
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.
Property, plant, and equipment of the primary government, as well as the component
units, are depreciated using the straight-line method over the following estimated
useful years.
Depreciable Life
Asset Cateaory in Years
Buildings
20 years
Water & Sewer System infrastructure
35 years
Equipment
3-20 years
Streets
20 years
7. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies
to a future period(s) and so will not be recognized as an outflow of resources (expense/
expenditure) until then.
An example is a deferred charge on refunding reported in the government -wide
statement of net position. A deferred charge on refunding results from the difference
32
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
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.
In addition to liabilities, the statement of financial position 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 that
applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The government has only one type of item, which arises only
under a modified accrual basis of accounting that qualifies for reporting in this
category. Accordingly, the item, unavailable revenue, is reported only in the
governmental funds balance sheet. The governmental funds report unavailable
revenues from property taxes and fines and forfeitures. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become
available. Deferred inflows of resources can also occur at the government wide level
due to differences between investment gains and losses realized on pension
investments compared to assumption used within the pension actuarial valuation
model.
8. Net Position Flow Assumption
Sometimes the government 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 statements, a flow assumption must be made about
the order in which the resources are considered to be applied.
It is the government's policy to consider restricted - net position to have been depleted
before unrestricted - net position is applied.
9. Fund Balance Flow Assumptions
Sometimes the government 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 government'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.
33
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
10. 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
government itself can establish limitations on the use of resources through non -
spendable (non -spendable fund balance), restricted (restricted fund balance),
commitment (committed fund balance), assignment (assigned fund balance), and
unassigned (unassigned fund balance).
The non -spendable fund balance classification includes inventories, prepaids, long-
term loans and notes receivable, and property held for resale (unless the proceeds are
restricted, committed, or assigned).
The restricted fund balance classification includes amounts that can be spent only for
the specific purposes stipulated by constitution, external resource providers, or
through enabling legislation.
The committed fund balance classification includes amounts that can be used only for
the specific purposes determined by a formal action of the government's highest level
of decision -making authority. The governing council is the highest level of decision -
making authority for the government that can, by adoption of an ordinance prior to
the end of the fiscal year, commit fund balance.
Once adopted, the limitation imposed by the ordinance remains in place until a similar
action is taken (the adoption of another ordinance) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the
government for specific purposes but do not meet the criteria to be classified as
committed. The governing body (council) has by resolution authorized the finance
director to assign fund balance. The council may also assign fund balance as it does
when appropriating fund balance to cover a gap between estimated revenue and
appropriations in the subsequent year's appropriated budget. 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 is 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.
34
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
11. 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.
There is no liability for unpaid accumulated sick leave as the City will not pay any
unused amounts when employees separate from service 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.
12. Long -Term Obligations
In the government -wide financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable governmental activities
statement of net position. The long-term debt consists primarily of bonds payable and
accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund
financial statements until due. The debt proceeds are reported as other financing
sources, net of the applicable premium or discount and payments of principal and
interest reported as expenditures. In the governmental fund types, issuance costs, even
if withheld from the actual net proceeds received, are reported as debt service
expenditures. However, claims and judgments paid from governmental funds are
reported as a liability in the fund financial statements only for the portion expected to
be financed from expendable available financial resources.
Long-term debt and other obligations, financed by proprietary funds, are reported as
liabilities in the appropriate funds. For proprietary fund types, bond premiums
discounts and issuance costs are deferred and amortized over the life of the bonds
using the effective interest method, if material. Bonds payable are reported net of the
applicable bond premium or discount.
35
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
13. Pensions
For purposes of measuring the net pension liability (asset), deferred outflows of
resources and deferred inflows of resources related to pensions, and pension expense,
information about the Fiduciary Net Position of the Texas Municipal Retirement
System (TMRS) and additions to/deductions from TMRS's Fiduciary Net Position have
been determined on the same basis as they are reported by TMRS. For this purpose,
plan contributions are recognized in the period that compensation is reported for the
employee, which is when contributions are legally due. Benefit payments and refunds
are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
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. Proprietary Funds Operating and Non -operating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from non -operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations.
The principal operating revenues of the Utility Fund are 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. All
revenues and expenses not meeting this definition are reported as non -operating
revenues and expenses.
36
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
II. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental fund balance sheet and the
government -wide statement of net position.
The governmental fund balance sheet includes reconciliation between fund balance -total
governmental funds and net position -governmental activities as reported in the government -
wide statement of net position. One element of that reconciliation explains that long-term
liabilities, including bonds, are not due and payable in the current period and, therefore,
are not reported in the funds. Reconciling items have been presented on the balance sheet
of governmental funds in the basic financial statements.
B. Explanation of certain differences between the governmental fund statement of
revenues, expenditures, and changes in fund balances and the government -wide statement
of activities.
The governmental fund statement of revenues, expenditures, and changes in fund
balances includes a reconciliation between net changes in fund balances - total
governmental funds and changes in net position of governmental states that, "the issuance
of long-term debt (e.g., bonds) 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. Also, governmental funds report the effect of
premiums, discounts, and similar items when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities. A reconciliation has been
presented in the basic financial statements.
III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Annual budgets are adopted on a basis consistent with generally accepted accounting
principles (GAAP) for the General, Debt Service, 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.
37
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
IV. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
As of September 30, 2017, the City had the following investments:
Investment Type
Certificates of deposit
External investment pools
Average Maturity
Fair Value (Years)
$ 247,767 0.11
264,899 0.12
Total fair value $ 512,666
Portfolio weighted average maturity 0.12
Interest rate risk In accordance with its investment policy, the City manages its exposure to
declines in fair values by limiting the weighted average of maturity not to exceed five
years; structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations; monitoring credit ratings of portfolio position to
assure compliance with rating requirements imposed by the Public Funds Investment Act;
and invest operating funds primarily in short-term securities or similar government
investment pools.
Credit risk The City's investment policy limits investments to obligations of the United
States, State of Texas, or their agencies and instrumentalities with an investment quality
rating of not less than "A" or its equivalent, by a nationally recognized investment rating
firm. Other obligations must be unconditionally guaranteed (either express or implied) by
the full faith and credit of the United States Government or the issuing U.S. agency and
investment pools with an investment quality not less than AAA or AAA-m, or equivalent,
by at least one nationally recognized rating service.
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 to it. State statutes require that all
deposits in financial institutions be insured or fully collateralized by U.S. government
obligations or its agencies and instrumentalities or direct obligations of Texas or its
agencies and instrumentalities that have a fair value of not less than the principal amount
of the deposits. The City's investment policy requires funds on bank deposit at the
depository bank to be collateralized by securities with a collective fair value (fair value of
the principal and accrued interest) of at least 102%. As of September 30, 2017, the fair
value of pledged securities and FDIC exceeded bank balances.
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
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 it will seek to safekeeping securities at financial institutions, avoiding
physical possession.
Further, all trades, where applicable, are executed by delivery versus payment to ensure
that securities are deposited in the City's safekeeping account prior to the release of funds.
S. Receivables
The following comprise receivable balances of the primary government at year end:
Debt
General Service
Nonmajor Utility
Total
Property taxes
$ 49,187 $ 11,886
$ - $ -
$ 61,073
Sales tax
245,590 -
- 7,077
252,667
Other
138,284 -
- -
138,284
Accounts
136,339 -
4,970 1,261,931
1,403,240
Allowance
- -
- (179,974)
(179,974)
$ 569,400 $ 11,886
$ 4,970 $1,089,034
$1,675,290
39
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
C. Capital Assets
A summary of changes in governmental activities capital assets for the year end was as
follows:
Capital assets, not being depreciated
Land
Construction in progress
Total capital assets not being depreciated
Capital assets, being depreciated
Park improvements
Buildings
Furniture and fixtures
Streets and drainage
Machinery and equipment
Total capital assets being depreciated
Less accumulated depreciation
Park improvements
Buildings
Furniture and fixtures
Streets and drainage
Machinery and equipment
Total accumulated depreciation
Net capital assets being depreciated
Total Capital Assets
Beginning
Decreases/
Ending
Balances
Increases
Reclasses
Balances
$ 1,671,786
$ 20,266
$ 677,899
$ 2,369,951
777,768
180,205
(777,768)
180,205
2,449,554
200,471
(99,869)
2,550,156
5,468,124
192,707
-
5,660,831
1,646,775
-
-
1,646,775
69,897
-
-
69,897
17,535,528
6,343,251
-
23,878,779
2,885,359
309,003
(36,402)
3,157,960
27,605,683
6,844,961
(36,402)
34,414,242
1,466,948
292,241
-
1,759,189
496,592
87,700
-
584,292
69,898
-
-
69,898
7,933,002
991,642
-
8,924,644
1,805,590
281,173
(49,356)
2,037,407
11,772,030
1,652,756
(49,356)
13,375,430
15,833,653
5,192,205
12,954
21,038,812
$ 18,283,207
$ 5,392,676
$ (86,915)
$ 23,588,968
Depreciation was charged to governmental functions as follows:
Streets
$1,039,425
Parks
332,955
Police department
152,059
Fire department
73,798
General government
51,912
Development and animal control
2,607
Total Governmental Activities Depreciation Expense
$1,652,756
40
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
A summary of changes in business -type activities capital assets for the year end was as
follows:
Beginning Decreases/ Ending
Balances Increases Reclasses Balances
Capital assets, not being depreciated
Land
$ 808,658
$ 97,988
$ -
$ 906,646
Construction in progress
3,420,570
2,008,487
(424,589)
5,004,468
Total capital assets not being depreciated
4,229,228
2,106,475
(424,589)
5,911,114
Capital assets, being depreciated
Furniture and fixtures
5,620
-
-
5,620
Buildings and improvements
486,244
-
-
486,244
Equipment
1,706,090
130,631
(62,265)
1,774,456
Water treatment system
7,896,576
1,536,560
(314)
9,432,822
GTUA water improvements
17,118,710
-
-
17,118,710
GTUA sewer improvements
939,796
-
-
939,796
Water and sewer system
17,898,455
3,102,187
403,678
21,404,320
Total capital assets being depreciated
46,051,491
4,769,378
341,099
51,161,968
Less accumulated depreciation
Furniture and fixtures
5,620
-
-
5,620
Buildings and improvements
147,622
23,567
-
171,189
Equipment
995,270
220,840
(62,266)
1,153,844
Water and sewer system
11,015,878
1,313,794
-
12,329,672
Total accumulated depreciation
12,164,390
1,558,201
(62,266)
13,660,325
Net capital assets being depreciated
33,887,101
3,211,177
403,365
37,501,643
Total Capital Assets
$ 38,116,329
$ 5,317,652
$ (21,224)
$ 43,412,757
Depreciation was charged to business -type functions as follows:
Water and sewer $1,558,201
Total Business -type Activities Depreciation Expense $1,558,201
D. Long-term Debt
The following is a summary of changes in the City's total governmental long-term
liabilities for the year ended. In general, the City uses the Debt Service Fund to liquidate
governmental long-term liabilities.
41
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
One Year
Governmental Activities:
Bonds, notes, and other payables:
General obligation bonds
$ 1,563,000
$ 850,000
$ (268,000)
$ 2,145,000
$ 127,000
Certificates of obligation
1,910,000
-
(865,000)
1,045,000
170,000
3,473,000
850,000
(1,133,000)
3,190,000
297,000
Other liabilities:
Compensated absences
139,484
6,358
-
145,842
145,842
Net pension liability
779,638
-
(6,798)
772,840
-
Total Governemental Activities
$ 4,392,122
$ 856,358
$ (1,139,798)
$ 4,108,682
$ 442,842
Long-term liabilities due in more than one year
Beginning
Balance
Business -type Activities:
Bonds, notes, and other payables:
Contract revenue bonds
$ 8,997,500
Contract revenue refunding bonds
1,895,000
TWDB state participation agreement
2,168,750
Combination tax & revenue
certificates of obligation
8,160,000
Combination tax & revenue
refunding b onds
4,199,000
Capital leases
-
Premium
76,243
25,496,493
Other liabilities:
$ 3,665,840
Ending Due within
Additions Reductions
Balance
One Year
$ - $ (457,500)
$ 8,540,000
$ 431,250
- (100,000)
1,795,000
105,000
- -
2,168,750
-
- (150,000)
8,010,000
155,000
- (65,000)
4,134,000
52,000
1,340,010 -
1,340,010
122,379
- (7,624)
68,619
7,624
1,340,010 (780,124)
26,056,379
873,253
Compensated absences 19,060 7,268 - 26,328 26,328
Net pension liability 259,879 - (15,824) 244,055 -
Total Business -type Activities $ 25,775,432 $1,347,278 $ (795,948) $ 26,326,762 $ 899,581
Long-term liabilities due in more than one year $ 25,427,181
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. Interest on long-term debt is not accrued in governmental funds, but
rather is recognized as an expenditure when due.
42
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Primary government long-term debt at year end was comprised of the following debt
issues:
Governmental Activities:
Interest Rates Orig. Balance Current Balance
General Obligation Bonds
Series 2014B General Obligation Refunding Bond 0.3% to 2.395% 1,462,000 1,356,000
Series 2016 General Obligation Refunding Bond 2.0% 850,000 789,000
Total General Obligation Bonds $ 2,312,000 2,145,000
Certificates of Obligation
2006 Combination Tax & Limited Surplus Revenue
Certificates of Obligation 3.5% to 5.25%
4.28% (to 15% on
2009 Tax & Revenue Certificate of Obligation 02/15/2018)
Total Certificates of Obligation
2,480,000 405,000
900,000 640,000
$ 3,380,000 1,045,000
Total Governmental -Type Activities Debt
$ 5,692,000
3,190,000
Business -type Activities:
Interest Rates
Orig. Balance
Current Balance
Contract Revenue Bonds
2005 GTUA Contract Revenue Bond
4.42%
$ 2,885,000
$ 1,795,000
Series 2006 GTUA Contract Revenue Bonds (12 &15)
2.95% to 3.75%
2,125,000
1,150,000
Series 2007 GTUA Contract Revenue Bonds
3.07% to 5.57%
760,000
485,000
2007 GTUA Contract
3.07% to 5.57%
1,105,000
715,000
2007 GTUA Contract
2.95% to 4.10%
2,325,000
1,500,000
2007 GTUA Contract
3.07% to 5.62%
3,365,000
3,010,000
2008 GTUA Contract
2.29% to 5.74%
540,000
345,000
CGMA Pipeline Project Phase 1
2.29% to 5.74%
700,000
435,000
CGMA Pipeline Project Phase H
2.67% to 5.62%
1,250,000
900,000
Total Contract Revenue & Revenue Reefunding Bonds
$ 15,055,000
$ 10,335,000
Capital Leases
2017 AMI Meter Leases
2.00%
1,340,010
1,340,010
Total Capital Leases
$ 1,340,010
1,340,010
TWDB State Participation Agreement
CGMA Pipeline Project Phase 11 5.68% to 5.83% 2,168,750 2,168,750
Total TWDB State Participation Agreement $ 2,168,750 2,168,750
Combination Tax & Revenue Certificates of Obligation
2012 Combination Tax & Revenue Certificates of Obligation 1.5% to 2.5% 4,210,000 3,970,000
2014 Combination Tax & Revenue Certificates of Obligation 2.0% to 2.65% 4,180,000 4,040,000
Total Combination Tax & Revenue Certificates of Obligation $ 8,390,000 8,010,000
Combination Tax & Revenue Refunding Bonds
2009 Combination Tax & Revenue Refunding Bond 4.28% (to 15% on 4,165,000 1,705,000
12/15/2018)
2014A Refunding Bonds 2.11% 2,598,000 2,429,000
Total Combination Tax & Revenue Refunding Bonds $ 6,763,000 4,134,000
Total Business -type Activities Debt $ 33,716,760 25,987,760
43
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
The annual requirements to amortize the primary government debt issues outstanding at
year ending were as follows:
Governmental -type Activities:
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Total
General Obligation Bonds
Principal Interest
127,000
96,000
107,000
259,000
265,000
285,000
286,000
306,000
313,000
101,000
42,442
40,512
38,782
35,538
30,689
25,189
19,112
12,556
5,573
1,010
Certificates of Obligation
Principal Interest
170,000
180,000
185,000
50,000
50,000
50,000
55,000
55,000
60,000
60,000
65,000
65,000
72,296
94,925
82,675
72,750
65,250
57,750
49,875
41,625
33,000
24,000
14,625
4,875
$ 2,145,000 $ 251,402 $ 1,045,000 $ 613,646
General obligation bonds are direct obligations of the City for which its full faith and
credit are pledged. Repayment of general obligation bonds are from taxes levied on all
taxable property located within the City. The City is not obligated in any manner for
special assessment debt.
44
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Business -type Activities:
Contract Revenue
Bonds
Principal
Interest
2018
$ 431,250 $
418
2019
463,750
400
2020
581,250
380
2021
608,750
354
2022
631,250
326
2023
665,000
297
2024
687,500
266
2025
740,000
233
2026
778,750
197
2027
662,500
159
2028
492,500
125
2029
325,000
99
2030
345,000
80
2031
363,750
61
2032
382,500
40
2033
87,500
18
2034
92,500
13
2035
97,500
8
2036
103,750
2
2037
-
2038
-
2039
-
2040
-
Total
$ 8,540,000 $
3,487
,948
,680
,587
,582
,779
,500
,363
,422
,679
,734
,331
,035
,647
,153
,605
,968
,910
,571
,915
,405
Contract Revenue Refunding Bonds
Principal
Interest
$ 105,000
$ 79,339
105,000
74,698
110,000
70,056
210,000
65,195
210,000
55,913
220,000
46,631
230,000
36,907
235,000
26,741
245,000
16,354
60,000
5,525
65,000
2,873
$ 1,795,000
$ 480,232
TWDB State Participation Agreement
Principal
Interest
$ -
$ 125,206
-
125,206
-
125,206
-
125,206
-
125,206
-
125,206
-
125,206
-
125,206
95,000
125,206
100,000
119,810
106,250
114,080
112,500
107,992
118,750
101,545
125,000
94,741
133,750
87,578
140,000
79,915
148,750
71,823
156,250
63,225
166,250
54,194
176,250
44,584
185,000
34,397
197,500
23,612
207,500
12,097
$ 2,168,750
$ 2,136,441
45
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Business -type Activities Cont.
2018 $
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Total $
Combination Tax & Revenue Combination Tax & Revenue
Certificates of Obligation Refunding Bonds Water Meter Capital Lease
Principal Interest Principal Interest Principal Interest
155,000 $
233,238 $
52,000 $
235,604 $
122,379 $
26,800
160,000
230,088
270,000
323,863
124,826
24,353
160,000
226,888
595,000
293,931
127,323
21,856
170,000
223,388
487,000
247,589
129,869
19,310
170,000
219,588
510,000
207,700
132,466
16,713
175,000
215,300
524,000
165,338
135,116
14,063
210,000
210,000
544,000
120,953
137,818
11,361
245,000
203,663
565,000
74,177
140,574
8,605
420,000
193,413
587,000
25,101
143,386
5,793
735,000
175,750
-
-
146,253
2,926
765,000
153,650
-
-
-
790,000
130,738
-
-
-
815,000
106,801
-
-
-
840,000
81,830
-
-
-
870,000
55,999
-
-
-
905,000
29,183
-
-
-
425,000
7,756
-
-
-
-
8,010,000 $
2,697,269 $
4,134,000 $
1,694,254 $
1,340,010 $
151,780
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.
46
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
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.
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.
E. Deferred Charges on Refunding
Deferred charges resulting from the issuance of series 2014 tax and revenue refunding
bonds have been recorded as deferred outflows of resources and are being amortized to
interest expense over the shorter of either the remaining term of the refunded debt or the
refunding bonds. The current year balance for business -type activities totaled $151,220.
Current year amortization expense for business -type activities totaled $16,802.
F. Customer Deposits
The City had customer deposits of $800,624 in the Utility Fund as of year-end. The City
requires a refundable deposit for all new utility customers. This amount will be returned
to the customer when utility service is discontinued and all outstanding utility expenses
are paid.
47
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
G. Fund Balances and Restricted Net Position
Governmental -Type Fund Balances
The City authorized the City Administrator to designate certain fund balances as assigned.
Excluding unassigned fund balances, the following describes the City's fund balance
classifications at September 30, 2017:
Restricted Fund Balances
All fund balances in spendable form for the Capital Projects, Debt Service, and Special
Revenue funds are restricted for the intended purpose of these funds. Restricted Fund
Balances of $13,251 for the General Fund represents assets restricted by law or by
agreements with third parties.
Committed Fund Balances
The City Council has committed $180,377 of General Fund fund balance for 2017 revenue
stabilization in the event of budget shortfalls. This contingency amount must be expended
in accordance with Section 7.08 of the Anna City Charter. City Council also committed
$560,391 of the General Fund balance for purposes of completing projects and purchases
of tools and equipment.
Negative Fund Balances
The Capital Projects Fund has a $7,693 negative fund balance at September 30, 2017. The
City's annual budget is adopted and amended as necessary to ensure any negative fund
balances are only temporary in nature. The City expects both fund balances to become
positive during fiscal year 2018 with reimbursement made to them by other funds and/or
third parties.
H. Interfund Transactions
The compositions of interfund due to/from balances as of the year ended September 30,
2017 were as follows:
Due From:
Due to: Debt Service Water & Sewer Nonmajor Total
General $ - $ - $ 605,859 $ 605,859
Water & Sewer 467,424 - - 467,424
Nonmajor - 467,424 - 467,424
$ 467,424 $ 467,424 $ 605,859 $ 1,540,707
:'
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Interfund balances resulted from the timing difference between the dates that (1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are
recorded in the accounting system, and (3) payments between funds are made. All
balances are expected to be paid in the subsequent year.
Transfers between the primary government funds during the 2017 year were as follows:
Transfer in:
General
Transfer out:
Water & Sewer Debt Service
Total
Nonmajor $ 117,785 $ 467,424 $ - $ 585,209
Water & Sewer - - 467,424 467,424
$ 117,785 $ 467,424 $ 467,424 $ 1,052,633
Amounts transferred between funds relate to amounts collected by the governmental and
enterprise funds for various capital expenditures and principal and interest payments.
IV. OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets, errors and omissions; and natural disasters for which the City
participates along with more than 2,800 other entities in the Texas Municipal League's
Intergovernmental Risk Pools. 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 which
exceeded coverage amounts for the past three years.
The City uses a number of approaches to decrease risks and protect against losses to the
City, including internal practices, employee training, and a code of ethics, which all
employees are required to acknowledge.
The City owns and operates motor vehicles and may provide such vehicle to employees
for business use during the course and scope of their employment. The City is insured as
to its own property losses, and the liability of loss to others.
49
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
B. Contingent Liabilities
Amounts received or receivable from granting agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any disallowed
claims, including amounts already collected, may constitute a liability of the applicable
funds. The amounts of expenditures which may be disallowed by the grantor cannot be
determined at this time although the City expects such amounts, if any, to be immaterial.
Liabilities are reported when it is probable that a loss has occurred and the amount of the
loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported. Claim liabilities are calculated considering the effects of
inflation, recent claim settlement trends, including frequency and amount of payouts, and
other economic and social factors.
The City participates in grant programs which are governed by various rules and
regulations of the grantor agencies. Costs charged to the respective grant programs are
subject to audit and adjustment by the grantor agencies; therefore, to the extent that the
City had not complied with the rules and regulations governing the grants, refunds of any
money received may be required and the collectability of any related receivable may be
impaired. In the opinion of the City, there are no significant contingent liabilities relating
to compliance with the rules and regulations governing the respective grants; therefore, no
provision has been recorded in the accompanying basic financial statements for such
contingencies.
C. Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage consisting of complex regulations
with respect to issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations
deal with the investment of tax-exempt bond proceeds at an interest yield greater than the
interest yield paid to bondholders. Generally, all interest paid to bondholders can be
retroactively rendered taxable if applicable rebates are not reported and paid to the
Internal Revenue Service at least every five years for applicable bond issues. Accordingly,
there is the risk that if such calculations are not performed correctly, a substantial liability
to the City could result. The City does not anticipate that it will have an arbitrage liability
and reviews the estimate for this potential liability annually. The City will also engage an
arbitrage consultant to perform the calculations in accordance with Internal Revenue
Service's rules and regulations if indicated.
50
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
D. Defined Benefit Pension Plans
Texas Municipal Retirement System
1. Plan Description
The City of Anna, Texas participates as one of 860 plans in the nontraditional, joint
contributory, hybrid defined benefit pension plan administered by the Texas Municipal
Retirement System (TMRS). TMRS is an agency created by the State of Texas and
administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government
Code (the TMRS Act) as an agent multiple -employer retirement system for 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
comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
2. 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 benefit is calculated as if the sum of the employee's contributions, with
interest, and the city -financed monetary credits with interest were used to purchase an
annuity. Members may choose to receive their retirement benefit in one of seven payments
options. Members may also choose to receive a portion of their benefit as a Partial Lump
Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot
exceed 75% of the member's deposits and interest.
51
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Plan provisions for the City were as follows:
Employee deposit rate
Matching ratio (City to employee)
Years required for vesting
Service retirement eligibility
(expressed as age/years of service)
Updated service credits
Annuity increase (to retirees)
Employees covered by benefit terms
Plan Year 2016 Plan Year 2017
7%
2to1
5
60/5, 0/20
7%
2to1
5
60/5, 0/20
100% Repeating transfers 100% Repeating transfers
70% of CPI 70% of CPI
At the December 31, 2016 valuation and measurement date, the following employees were
covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 6
Inactive employees entitled to but not yet receiving benefits 28
Active employees 59
Total 93
3. Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross
earnings, and the City matching percentages are either 100%, 150%, or 200%, both as
adopted by the governing body of the City. Under the state law governing TMRS, the
contribution rate for each city is determined annually by the actuary, using the Entry Age
Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated
amount necessary to finance the cost of benefits earned by employees during the year,
with an additional amount to finance any unfunded accrued liability. Employees for the
City of Anna, Texas were required to contribute 7% of their annual gross earnings during
the fiscal year. The contribution rates for the City of Anna, Texas were 14.24% and 14.49%
in calendar years 2016 and 2017, respectively. The City's contributions to TMRS for the
year ended September 30, 2017, were $490,248, and were equal to the required
contributions.
52
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
4. Net Pension Liability (Asset)
The City's Net Pension Liability (Asset) was measured as of December 31, 2016, and the
Total Pension Liability (TPL) used to calculate the Net Pension Liability (Asset) was
determined by an actuarial valuation as of that date.
Actuarial assumptions
The Total Pension Liability in the December 31, 2016 actuarial valuation was determined
using the following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
Investment Rate of Return 6.75% net of pension plan investment expense, including inflation
Salary increases were based on a service -related table. Mortality rates for active members,
retirees, and beneficiaries were based on the gender -distinct RP2000 Combined Healthy
Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%.
The rates are projected on a fully generational basis by scale BB to account for future
mortality improvements. For disabled annuitants, the gender -distinct RP2000 Disabled
Retiree Mortality Table is used, with slight adjustments.
Actuarial assumptions used in the December 31, 2016, valuation were based on the results
of actuarial experience studies. The experience study in TMRS was for the period January
1, 2010 through December 31, 2014, first used in the December 31, 2016 valuation. Healthy
postretirement mortality rates and annuity purchase rates were updated based on a
Mortality Experience Investigation Study covering 2009 through 2011, and dated
December 31, 2013. These assumptions were first used in the December 31, 2013 valuation,
along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions
are reviewed annually. No additional changes were made for the 2016 valuation.
The long-term expected rate of return on pension plan investments is 6.75%. The pension
plan's policy in regard to the allocation of invested assets is established and may be
amended by the TMRS Board of Trustees. 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
53
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. The target allocation and
best estimates of arithmetic real rates of return for each major asset class are summarized
in the following table:
Asset Class
Domestic Equity
International Equity
Core Fixed Income
Non -Core Fixed Income
Real Return
Real Estate
Absohtte Return
Private Equity
Total
Discount Rate
Target Allocation
17.5%
17.5%
10.0%
20.0%
10.0%
10.0%
10.0%
5.0%
100.00%
Long -Term Expected Real
Rate of Return (Arithmetic)
4.55%
6.35%
1.00%
4.15%
4.15%
4.75%
4.00%
7.75%
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 employee and employer
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 employees. 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.
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount
rate of 6.75%, as well as what the City's net pension liability (asset) 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 5.75%
$2,014,242
Current Single Rate
Assumption 6.75%
$1,016,895
1% Increase
7.75 %
$221,503
54
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Changes in the Net Pension Liability (Asset)
Balance at 12/31/2015
Changes for the year:
Service Cost
Interest
Difference between expected and
actual experience
Changes of assumptions
Contributions - employer
Contributions - employee
Net Investment income
Benefit payments, including
refunds of emp. contributions
Adminstration expense
Other changes
Net Changes
Balance at 12/31/2016
Pension Plan Fiduciary Net Position
Total Pension Plan Fiduciary Net Net Pension
Liability (a) Position (b) Liability (a) - (b)
$ 4,841,835 $ 3,802,318 $ 1,039,517
608,067 - 608,067
343,924 343,924
(60,518) (60,518)
442,230 (442,230)
217,388 (217,388)
257,535 (257,535)
(101,394) (101,394) -
(2,902) 2,902
- (156) 156
790,079 812,701 (22,622)
$ 5,631,914 $ 4,615,019 $ 1,016,895
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.
5. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
For the year ended September 30, 2017, the City recognized pension expense of $488,714.
At September 30, 2017, 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
Difference between projected and investment earnings $ 150,916 $ -
Difference between expected and actual economic experience - 219,581
Contributions subsequent to the measurement date 380,196 -
Total $ 531,112 $ 219,581
6101
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
The City reported $380,196 as deferred outflows of resources related to pensions resulting
from contributions subsequent to the measurement date that will be recognized as a
reduction of the net pension liability for the year ending September 30, 2018. Other
amounts reported as deferred outflows and inflows of resources related to pensions will
be recognized in pension expense as follows:
Year ended December 31
2018 $
7,709
2019
7,709
2020
334
2021
(45,288)
2022
(28,986)
Thereafter
(10,145)
$
(68,666)
E. Other Postemployment Benefit
The City also participates in the cost sharing multiple -employer defined benefit group -
term life insurance plan operated by the Texas Municipal Retirement System (TMRS)
known as the Supplemental Death Benefits Fund (SDBF). The City elected, by ordinance,
to provide group term life insurance coverage to both current and retired employees. The
City may terminate coverage under and discontinue participation in the SDBF by
adopting an ordinance before November 1 of any year to be effective the following
January 1.
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); retired employees are insured for
$7,500; this coverage is an "other postemployment benefit," or OPEB.
The 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.
The City's contributions to the TMRS SDBF for the years ended 2017, 2016 and 2015 were
$3,891, $4,083, and $3,182, respectively, which equaled the required contributions each
year.
56
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
F. Restatement
The City has restated beginning net position for governmental -type activities and
beginning governmental fund balances due to a change in the presentation of component
units from a blended presentation to a discrete presentation:
Governmental -type
Activities
Prior year ending net position as reported $ 18,069,264
Change in EDC/CDC presentation (blended to discrete) (398,641)
Restated beginning net position $ 17,670,623
Prior year ending fund balances as reported
Change in EDC/CDC presentation (blended to discrete)
Restated beginning fund balances
G. New Accounting Pronouncements
Governmental Funds
$ 5,029,270
(1,550,067)
$ 3,479,203
The City has adopted the following Governmental Accounting Standards Board (GASB)
statements, as required:
1. GASB Statement No. 72, Fair Value Measurement and Application
2. GASB Statement No. 77, Tax Abatement Disclosures (early implementation FY 2016)
3. GASB Statement No. 80, Blending Requirements for Certain Component Units — an
amendment of GASB Statement No. 14.
4. GASB Statement No. 82, Pension Issues — an amendment of GASB No. 67, No. 68, and
No. 73.
GASB has also issued the following statements, which may have a material effect on the
City's financial statements once implemented. The City will be analyzing the effects of
these pronouncements and plans to adopt them by their effective date, or as they become
applicable to the City:
1. GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans, effective starting with fiscal year ending June 30, 2017, if
applicable.
2. GASB Statement No. 78, Pensions Provided through Certain Multiple -Employer Defined
Benefit Pension Plans, effective starting with fiscal year ending December 31, 2016, if
applicable.
57
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
3. GASB No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pension, effective starting with fiscal year ending June 30, 2018, if applicable.
4. GASB No. 81, Irrevocable Split -Interest Agreements, effective starting with the fiscal
year ending December 31, 2017, if applicable.
H. Subsequent Events
On November 15, 2017, the City issued $7,630,000 Combination Tax and Revenue
Refunding Bonds, Series 2017. There is a net premium of $783,045 and $1,165,720 from
reserve funds from the related refunded GTUA bonds, less 51,079 of discounts and
$144,329 of issuance costs for a net total of $9,382,357 forwarded to Regions Bank escrow
accounts. The proceeds will be utilized for refunding all of the GTUA Contract Revenue
Bonds Series 2005, 2007A, 2007B, 2007C, and Series 2008. The Series 2017 bonds have
interest rates varying from 1.15% to 4%. The City's obligation for Series 2017 under the
contract expires with the retirement of the obligation at the maturity date of February 15,
2033.
There were no other material subsequent events through March 27, 2018, the date the
financial statements were available to be issued.
I. Anna Community Development Corporation
In accordance with GASB Statement No. 14, the Financial Reporting Entity, as amended
by GASB Statement No. 39, the Anna Community Development Corporation is a
discretely presented component unit on the combined financial statements. The
Community Development Corporation ("CDC') was incorporated on June 30, 2011. The
corporation is governed by a seven member board appointed by and serving at the
pleasure of the City Council. The funding for CDC occurs by the City transferring 25% of
sales tax revenues collected by the City. The purpose of the CDC is for the purpose of
promoting projects to enhance the community. The 4B tax proceeds may be spent on land,
building, equipment, facilities, expenditures, targeted infrastructure, and improvements
throughout the City.
1. Stewardship, Compliance and Accountability
a. Finance -Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note
Disclosures," violations of finance -related legal and contractual provisions, if any, are
reported below, along with actions taken to address such violations.
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
b. Deficit Fund Balance or Fund Net Position of Individual Funds
Following are funds having deficit fund balances or fund net position at year end, if
any, along with remarks which address such deficits:
Violation
The government -wide net position of the CDC is a deficit ($47,138).
Action taken
The deficit will decrease as the CDC receives future sales tax revenue and reduces
long-term debt balances.
2. Financial Statement Amounts
a. Deposits and Investments
Cash and cash equivalents as of September 30, 2017 consist of and are classified in the
accompanying financial statements as follows:
Cash and cash equivalents $ 472,345
Total fair value $ 472,345
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits or
will not be able to recover collateral securities that are in the possession of an outside
party. The Public Funds Investment Act and the City's Investment Policy do not
contain legal or policy requirements that would limit the exposure to custodial credit
risk for deposits or investments, other than the following provisions for deposits. The
Public Funds Investment Act requires that a financial institution secure deposits made
by state or local governmental units by pledging securities in an undivided collateral
pool held by a deposit regulated under state law (unless so waived by the
governmental unit). The fair value of the pledged securities in the collateral pool must
equal at least the bank balance less the FDIC insurance at all times.
As of September 30, 2017, CDC had the following investment: None
59
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
b. Receivables
Receivables as of year-end for the CDC were $238,664, $147,354 representing sales tax
owed from the State and $91,310 representing local business loans. No allowances for
uncollectible accounts have been recorded at September 30, 2017.
c. Capital Assets
Capital assets, not being depreciated
Land
Total capital assets not being depreciated
Total Capital Assets
d. Long -Term Obligations
Beginning Decreases/ Ending
Balances Increases Reclasses Balances
$ - $ 2,757,904 $
- 2.757.904
- �, 2.7.57.904
- 2.7.57.904
$ - $ 2,757,904 $ - $ 2,757,904
Beginning
Ending
Due within
Balance
Additions Reductions
Balance
One Year
Sales Tax revenue Bonds $ 1,732,000
$1,850,000 $ (83,000)
$ 3,499,000
$ 204,000
Sales Tax Revenue Bonds
CDC - Sales Tax Revenue Refunding Bonds - Series 2012A
3.25%
396,000
69,000
CDC - Sales Tax Revenue Bonds - Series 2012B
3.30%
1,655,000
1,580,000
CDC - Sales Tax Revenue Bonds - Series 2016
19% to 45%
1,850,000
1,850,000
Total Sales Tax Revenue Bonds
$
3,901,000
3,499,000
e. Litigation
Management is not aware of any pending or threatened litigation involving the CDC.
f. Subsequent Events
The CDC has evaluated all events or transactions that occurred after September 30,
2017 up through March 27, 2018, the date the financial statements were available to be
issued. During this period, management was unaware of any subsequent events
requiring disclosure.
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
J. Anna Economic Development Corporation
In accordance with GASB Statement No. 14, the Financial Reporting Entity, as amended
by GASB Statement No. 39, the Anna Economic Development Corporation is a discretely
presented component unit on the combined financial statements. The Economic
Development Corporation ("EDC") was incorporated in June 30, 2011. The corporation is
governed by a seven member board appointed by and serving at the pleasure of the City
Council. Until it ceased in May of 2017, funding for EDC occurred by the City transferring
25% of sales tax revenues collected by the City. The purpose for which the EDC is
organized and may issue or incur bonds or other obligations on behalf of the City for the
promotion and development of commercial, industrial and manufacturing enterprises,
promotion, development and expansion of business enterprises, and to promote and
encourage employment and public welfare.
1. Stewardship, Compliance and Accountability
a. Finance -Related Legal and Contractual Provisions
In accordance with GASB Statement No. 38, "Certain Financial Statement Note
Disclosures," violations of finance related legal and contractual provisions, if any, are
reported below, along with actions taken to address such violations:
NONE
2. Financial Statement Amounts
a. Deposits and Investments
Cash and cash equivalents as of September 30, 2017 consist of and are classified in the
accompanying financial statements as follows:
Cash and cash equivalents $ 327,424
Total fair value $ 327,424
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover its deposits or
will not be able to recover collateral securities that are in the possession of an outside
party. The Public Funds Investment Act and the City's Investment Policy do not
contain legal or policy requirements that would limit the exposure to custodial credit
risk for deposits or investments, other than the following provisions for deposits. The
61
City of Anna, Texas
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2017
Public Funds Investment Act requires that a financial institution secure deposits made
by state or local governmental units by pledging securities in an undivided collateral
pool held by a deposit regulated under state law (unless so waived by the
governmental unit). The fair value of the pledged securities in the collateral pool must
equal at least the bank balance less the FDIC insurance at all times.
As of September 30, 2017, EDC had the following investment: None
b. Receivables
Receivables as of year-end for the EDC were $131,517 representing local business
loans. No allowances for uncollectible accounts have been recorded at September 30,
2017.
c. Capital Assets
Beginning
Decreases/
Ending
Balances
Increases
Reclasses
Balances
Capital assets, not being depreciated
Land
$ 96,914
$ -
$ -
$ 96,914
Construction in progress
-
118,723
-
118,723
Total capital assets not being depreciated
96,914
118,723
-
215,637
Capital assets, being depreciated
Buildings
366,589
-
-
366,589
Furniture and fixtures
-
13,871
-
13,871
Total capital assets being depreciated
366,589
13,871
-
380,460
Total accumulated depreciation
$ 74,844
$ 19,344
$ -
$ 94,188
Net capital assets being depreciated
291,745
(5,473)
-
286,272
Total Capital Assets
$ 388,659
$ 113,250
$ -
$ 501,909
d. Subsequent Events
The EDC has evaluated all events or transactions that occurred after September 30,
2017 up through March 27, 2018, the date the financial statements were available to be
issued. During this period, management was unaware of any subsequent events
requiring disclosure.
62
REQUIRED SUPPLEMENTARY INFORMATION
63
City of Anna, Texas
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended September 30, 2017
Variance with
Final Budget
Original
Positive
Budget
Final Budget
2017 Actual
(Negative)
Revenues
Property tax
$ 3,681,042
$ 3,681,042
$ 3,731,880
$ 50,838
Sales tax
750,000
1,121,040
1,203,749
82,709
Franchise and local taxes
450,900
450,900
505,571
54,671
Intergovernmental
195,670
195,670
185,392
(10,278)
Charges for services
94,250
106,900
129,197
22,297
Contributions and donations
254,297
370,097
351,482
(18,615)
License and permits
408,000
828,000
1,115,294
287,294
Fines and forfeitures
100,000
100,000
73,918
(26,082)
Investment income
-
-
18,845
18,845
Other revenue
55,006
55,006
80,806
25,800
Total Revenues
5,989,165
6,908,655
7,396,134
487,479
Expenditures
Current:
General governemnt
1,198,480
1,214,005
1,194,254
19,751
Police department
1,795,495
1,813,671
1,721,746
91,925
Municipal court
122,226
122,226
115,543
6,683
Fire department
958,161
1,015,365
970,330
45,035
Ambulance
143,173
143,173
143,173
-
Park
371,141
371,141
375,123
(3,982)
Streets
469,168
679,018
429,128
249,890
Developmental and animal control
633,231
796,948
919,684
(122,736)
Capital outlays:
322,788
518,300
242,923
275,377
Total Expenditures
6,013,863
6,673,847
6,111,905
561,942
Revenues Over (Under)
(24,698)
234,808
1,284,229
1,049,421
Other Financing Sources (Uses)
Proceeds from sold assets
10,000
10,000
8,601
(1,399)
Transfers in (out)
-
(117,785)
(117,785)
-
Total Other Financing Sources (Uses)
10,000
(107,785)
(109,184)
(1,399)
Net Change in Fund Balance
(14,698)
127,023
1,175,045
$ 1,048,022
Beginning fund balance
3,319,995
3,319,995
3,319,995
Ending Fund Balance $ 3,305,297 $ 3,447,018 $ 4,495,040
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
64
City of Anna, Texas
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS-TMRS
Year Ended Septemeber 30, 2017
Total pension liability
Service Cost
Interest
Changes of benefit terms
Difference between expected and actual experience
Change of assumptions
Benefit payments, including refunds of participant
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit payments, including refunds of employee con
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage
of Total Pension Liability
Covered Employee Payroll
Net Pension Liability as a Percentage
of Covered Employee Payroll
2016
2015
2014
$ 608,067
$ 527,867
$ 429,268
343,924
309,015
277,884
(60,518)
(110,141)
(173,824)
-
19,349
-
(101,394)
(109,637)
(166,160)
790,079
636,453
367,168
4,841,835
4,205,380
3,838,212
$ 5,631,914
$ 4,841,833
$ 4,205,380
442,230
386,733
270,279
217,388
194,478
170,293
257,535
4,915
165,488
(101,394)
(109,637)
(166,160)
(2,902)
(2,992)
(1,727)
(156)
(148)
(142)
812,701
473,349
438,031
3,802,318
3,328,967
2,890,936
$ 4,615,019
$ 3,802,316
$ 3,328,967
$ 1,016,895
$ 1,039,517
$ 876,413
82% 79% 79%
$ 1,194,348 $ 2,778,260 $ 2,432,756
85% 37% 36%
Notes to Schedule:
1. This schedule is presented to illustrate the requirement to show information for ten
years. However, until a full ten-year trend is compiled, only available information is
shown.
65
City of Anna, Texas
SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN-TMRS
For the Year Ended September 30, 2017
Actuarially Determined Contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered employee payroll
Contributions as a percentage of
covered employee payroll
2017 2016
2015
$ 380,196 $ 444,631 $ 353,170
$ 1,194,348
31.83%
$ 3,140,567
14.16%
$ 2,881,090
12.26%
NOTES TO SCHEDULE OF CONTRIBUTIONS
Valuation Date:
Notes Actuarially determined contribution
rates are calculated as of December 31
and become effective in January 13
months later.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level Percentage of Payroll, Closed
Remaining Amortization Period
29 years
Asset Valuation Method
10 Year smoothed market; 15% soft corridor
Inflation
2.50%
Salary Increases
3.50% to 10.50% including inflation
Investment Rate of Return
6.75%
Retirement Age
Experience -based table of rates that are specific to the City's
plan of benefits. Last updated for the 2015 valuation
pursuant to an experience study of the period 2010 - 2014
Mortality
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female
rates multiplied by 103% and projected on a fully
generational basis with scale BB
Other Information:
Notes There were no benefit changes during the year
COMBINING STATEMENTS AND
INDIVIDUAL FUND SCHEDULES
67
Assets
Cash and cash equivalents
Receivables, net
Due from other funds
Liabilities
Accounts payable
Accured liabilities
Due to other funds
City of Anna, Texas
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2017
Capital Roadway
Projects Impact Fee
$ 150,146 $
SVC Area 1
385,893 $
Roadway Road Capital
Impact Fee Dev. Agr.
57,020 $ 312,755
Total Assets $
617,570
$
385,893 $
57,020 $
$
19,404
$
3,123
- $
312,755
39,150
164,069
Total Liabilities
625,263
3,123
- 203,219
Fund Balances
Restricted for:
Public saftey
-
-
- -
Municipal court
-
-
- -
Capital projects
-
382,770
57,020 109,536
Unassigned
(7,693)
-
- -
Total Fund Balances
(7,693)
382,770
57,020 109,536
Total Liabilities and Fund Balances $
617,570 $
385,893 $
57,020 $ 312,755
.:
Police
Court
Court
PEG
Child Safety
Police
Seizure
Training
Security
Technology
Capital
Fund
Fund
Fund
Fund
Fund
Fund
$ 19,104
$
9,778
$
1,789
$
17,814
$
982
$
56,095
2,930
-
-
-
-
2,040
$ 22,034
$
9,778
$
1,789
$
17,814
$
982
$
58,135
$ -
$
-
$
-
$
(8)
$
-
$
-
-
879
-
-
-
-
-
879
-
(8)
-
-
22,034
8,899
1,789
-
-
-
-
-
-
17,822
982
-
-
-
-
-
-
58,135
22,034
8,899
1,789
17,822
982
58,135
$ 22,034
$
9,778
$
1,789
$
17,814
$
982
$
58,135
City of Anna, Texas
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
Park
Fire Dept.
Construction
Capital Impr.
Total
Fund
Fund
Assets
Cash and cash equivalents
$ 746,660
$ 62,868
$
1,820,904
Receivables, net
-
-
4,970
Due from other funds
-
-
467,424
Total Assets
$ 746,660
$ 62,868
$
2,293,298
Liabilities
Accounts payable
$ 7,809
$ -
$
69,478
Accured liabilities
-
-
164,948
Due to other funds
-
-
605,859
Total Liabilities
7,809
-
840,285
Fund Balances
Restricted for:
Public saftey
-
62,868
95,590
Municipal court
-
-
18,805
Capital projects
738,851
-
1,346,312
Unassigned
-
-
(7,693)
Total Fund Balances
738,851
62,868
1,453,013
Total Liabilities and Fund Balances
$ 746,660
$ 62,868
$
2,293,298
70
City of Anna, Texas
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2017
Capital
Roadway
Roadway
Road Capital
Projects
Impact Fee
Impact Fee
Dev. Agr.
Fund
SVC Area 1
SVC Area 2
Fund
Revenues
Charges for services
$ -
$ 325,391
57,000
$ -
Investment income
540
1,231
20
1,088
Other revenue
-
-
-
-
Total Revenues
540
326,622
57,020
1,088
Expenditures
Current:
Municipal court
-
-
-
-
Other
17,188
34,652
-
-
Park
-
-
-
-
Capital outlay
27,688
91,672
-
-
Total Expenditures
44,876
126,324
-
-
Revenues Over Expenditures
(44,336)
200,298
57,020
1,088
Other Financing Sources (Uses)
Transfers in
585,209
-
-
-
Proceeds from sold assets
26,372
-
-
-
Total Other Financing (Uses)
611,581
-
-
Net Change in Fund Balances
567,244
200,298
57,020
1,088
Beginning fund balances
(574,937)
182,472
-
108,448
Ending Fund Balances
$ (7,693)
$ 382,770
57,020
$ 109,536
71
Police
Court
Court
PEG
Child Safety
Police Seizure
Training
Security
Technology
Capital
Fund
Fund
Fund
Fund
Fund
Fund
$ -
$ -
$ -
$ -
$ -
$ 8,271
58
47
6
77
5
-
14,066
18,368
1,508
1,366
1,818
-
14,124
18,415
1,514
1,443
1,823
8,271
-
-
-
1,052
1,720
-
-
14,306
-
-
-
-
-
14,306
-
1,052
1,720
-
14,124
4,109
1,514
391
103
8,271
14,124
4,109
1,514
391
103
8,271
7,910
4,790
275
17,431
879
49,864
$ 22,034
$ 8,899
$ 1,789
$ 17,822
$ 982
$ 58,135
72
City of Anna, Texas
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended September 30, 2017
Park Fire Dept.
Construction Capital Impr.
Fund Fund
Revenues
Charges for services $ 548,861 $ 37,900 $
Investment income 2,051 189
Other revenue - -
Total Revenues 550,912 38,089
Expenditures
Current:
Municipal court
Other
Park
Capital outlay
Total Expenditures
Revenues Over Expenditures
Other Financing Sources (Uses)
Transfers in
Gain (loss) on sale of capital assets
Total Other Financing (Uses)
Net Change in Fund Balances
Beginning fund balances
Ending Fund Balances $
8,900
137,611
146,511
404,402
404,402
334,449
38,089
38,089
24,779
Total
977,423
5,311
37,126
1,019,860
2,772
51,840
8,900
271,277
334,789
685,071
585,209
26,372
611,581
1,296,652
156,360
738,851 $ 62,868 $ 1,453,012
73
City of Anna, Texas
BALANCE SHEET
COMMUNITY DEVELOPMENT CORPORATION
September 30, 2017
ASSETS
Cash and cash equivalents $ 472,345
Receivables (net of allowances for uncollectibles) 238,664
Total Assets 711,010
LIABILITIES
Accounts payable 1,553
Total Liabilities 1,553
Deferred Inflows of Resources
Unavailable revenue:
Local business loans 41,310
Total Deferred Inflows of Resources 41,310
FUND BALANCES
Restricted for:
Community Development 668,146
Total Fund Balances 668,146
Total Liabilities and Fund Balances $ 711,010
See Notes to Financial Statements.
74
City of Anna, Texas
RECONCILIATION OF GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
COMMUNITY DEVELOPMENT CORPORATION
September 30, 2017
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 financial
resources and, therefore, are not reported in the funds.
Accrued interest reported in the Statement of Net Position does
not require the use of current financial resources and, therefore,
is not reported in governmental funds.
Long-term debt for the fiscal year is included in the Statement
of Net Position.
Deferred revenues are removed for the Statement of Net
Position.
Net Position of Governmental Activities
See Notes to Financial Statements.
$ 668,146
2,757,904
(15,498)
(3,499,000)
41,310
$ (47,138)
75
City of Anna, Texas
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
COMMUNITY DEVELOPMENT CORPORATION
For the Year Ended September 30, 2017
REVENUES
Sales and use tax
Intergovernmental revenue
Investment income
EXPENDITURES
Current:
Community and economic development
Debt service:
Principal retirement
Interest
Capital Outlay
$ 674,037
725,000
1,676
Total Revenues 1,400,713
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Bond proceeds
Debt issuance costs
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Beginning fund balance
Ending Fund Balance
See Notes to Financial Statements.
141,176
83,000
98,697
2,757,904
3,080,777
(1,680,063)
1,850,000
(134,487)
1,715,513
35,450
632,696
$ 668,146
76
City of Anna, Texas
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES - COMMUNITY DEVELOPMENT CORPORATION
For the Year Ended September 30, 2017
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
increase capital assets in the government -wide financial statements. The effect of
removing the current year capital outlays is to increase net position.
Bond proceeds are not financing sources in the government -wide financial statements.
The net effect of the current year is to decrease net position.
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.
Increases in accrued interest:
Various other reclassification and eliminations are necessary to convert from the modified
accrual basis of accounting to accrual basis of accounting. This includes the realization of
decreases in deferred revenue from the prior year.
Change in Net Position of Governmental Activities
See Notes to Financial Statements.
$ 35,450
2,757,904
(1,850,000)
111
(15,498)
(541)
$ 1,010,315
77
City of Anna, Texas
BALANCE SHEET
ECONOMIC DEVELOPMENT CORPORATION
September 30, 2017
ASSETS
Cash and cash equivalents $ 327,424
Receivables (net of allowance for uncollectibles) 131,517
LIABILITIES
Accounts payable
Total Assets 458,941
102.201
Total Liabilities 102,201
Deferred Inflows of Resources
Unavailable revenue:
Local business loans 131,017
Total Deferred Inflows of Resources 131.017
FUND BALANCE
Restricted for:
Economic Development 225,723
Total Fund Balance 225,723
Total Liabilities, Deferred Inflows, and Fund Balance $ 458,941
See Notes to Financial Statements.
City of Anna, Texas
RECONCILIATION OF GOVERNMENTAL FUND BALANCE SHEET
TO THE STATEMENT OF NET POSITION
ECONOMIC DEVELOPMENT CORPORATION
September 30, 2017
Fund Balance- Total Governmental Funds $ 225,723
Amounts reported for governmental activities in the Statement of
Net Position are different because:
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 596,097
Accumulated depreciation has not been included in the
governmental fund financial statements. (94,188)
Deferred revenues are not included in the government -wide
financial statements. 131,017
Net Position of Governmental Activities
See Notes to Financial Statements.
$ 858,649
79
City of Anna, Texas
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT CORPORATION
For the Year Ended September 30, 2017
REVENUES
Sales and use tax
$ 241,060
Charges for services
12,133
Investment income
1,978
Total Revenues
255,171
EXPENDITURES
Current:
Community and economic development
857,006
Capital Outlay
132,594
Total Expenditures
989,599
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(734,428)
Other Financing Sources (Uses)
Other revenue
42,780
Total Other Financing Sources (Uses)
42,780
Net Change in Fund Balance
(691,648)
Beginning fund balance
917,371
Ending Fund Balance
$ 225,723
See Notes to Financial Statements.
:1
City of Anna, Texas
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUND
TO THE STATEMENT OF ACTIVITIES - ECONOMIC DEVELOPMENT CORPORATION
For the Year Ended September 30, 2017
Net change in Fund Balances - Total Governmental Funds $ (691,648)
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. 132,594
Depreciation is not recognized as an expense in governmental funds since it
does not require the use of current financial resources. Since the current
year's depreciation is zero, there is no effect on net position. (19,344)
Various other reclassification and eliminations are necessary to convert from
the modified accrual basis of accounting to accrual basis of accounting. This
includes the realization of decreases in deferred revenue from the prior year. (19,047)
Change in Net Position of Governmental Activities
See Notes to Financial Statements.
$ (597,445)
0
City of Anna, Texas
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT CORPORATION
For the Year Ended September 30, 2017
Final Budget
Original Positive
REVENUES
Sales and use tax $
375,000
$ 425,000
$ 674,037 $
249,037
Intergovernmental revenue
161,000
725,000
725,000
-
Investment Income
2,500
2,500
1,676
(824)
Total Revenues
538,500
1,152,500
1,400,713
248,213
EXPENDITURES
Current:
Community and economic development
157,300
165,050
141,176
23,874
Debt service:
Principal retirement
133,000
83,000
83,000
-
Interest
165,468
98,700
98,697
3
Capital Outlay
80,232
2,823,136
2,757,904
65,232
Total Expenditures
536,000
3,169,886
3,080,777
89,109
Revenues Over (Under)
2,500
(2,017,386)
(1,680,063)
337,323
Other Financing Sources (Uses)
Debt Issuance Cost
-
(135,000)
(134,487)
513
Bond Proceeds
-
1,850,000
1,850,000
-
Total Other Financing Sources Uses)
-
1,715,000
1,715,513
513
Net Change in Fund Balance
2,500
(302,386)
35,450 $
337,836
Beginning fund balance
632,696
632,696
632,696
Ending Fund Balance $
635,196
$ 330,310
$ 668,146
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
City of Anna, Texas
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
ECONOMIC DEVELOPMENT CORPORATION
For the Year Ended September 30, 2017
Final Budget
Original
Positive
Budget
Final Budget
2017 Actual
(Negative)
REVENUES
Sales and use tax $
375,000
$ 300,000
$ 241,060
$ (58,940)
Investment income
1,500
1,700
1,978
278
Charges for services - rentals
22,500
17,700
12,133
(5,567)
Other Income
-
42,780
42,780
-
Total Revenues
399,000
362,180
297,951
(64,229)
EXPENDITURES
Current:
Community and economic development
146,380
187,350
132,006
55,344
Capital Outlay
67,900
187,650
132,594
55,056
Total Expenditures
214,280
375,000
264,599
110,401
Revenues Over (Under)
184,720
(12,820)
33,352
46,172
Other Financing Sources (Uses)
Transfers (out)
161,000
(725,000)
(725,000)
-
Total Other Financing Sources (Uses)
161,000
(725,000)
(725,000)
-
Net Change in Fund Balance
345,720
(737,820)
(691,648)
$ 46,172
Beginning Balance
917,371
917,371
917,371
Ending Fund Balance $
1,263,091
$ 179,551
$ 225,723
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent
with generally accepted accounting principles (GAAP)
�3
(This page intent?nally left blank.)
STATISTICAL SECTION
STATISTICAL SECTION
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. This information has not been
audited by the independent auditor.
Contents Tables
Financial Trends 1, 2,3 & 4
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
5, 6, 7 &8
These schedules contain information to help the reader assess the City's most significant local revenue source,
property tax.
Debt Capacity
9,10,11&12
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
13&14
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
15, 16 &17
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.
1
City of Anna, Texas
NET POSITION BY COMPONENT
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
Governmental activities
Net investment in capital assets
$ 20,398,968
$ 13,466,866
$ 13,288,789
$ 12,463,939
Restricted
1,489,057
1,550,067
1,781,301
1,265,399
Unrestricted
3,844,285
3,052,331
2,073,139
2,272,911
Total governmental activities net
position
$ 25,732,310
$ 18,069,264
$ 17,143,229
$ 16,002,249
Business -type activities
TABLE 1
$ 11,698,639 $ 10,749,210 $ 11,048,398 $ 10,763,659 $ 10,579,536 $ 10,198,800
983,464 444,340 156,274 206,256 158,803 604,448
$ 15,109,929 $ 13,532,171 $ 13,841,270 $ 13,581,845 $ 13,563,841 $ 12,599,557
Net investment in capital assets
$ 17,356,378
$ 12,787,858
$ 9,150,846
$ 7,161,432
$ 9,228,796
$ 11,584,537
$ 11,657,252
$ 10,990,672
$ 9,915,584 $ 12,322,711
Restricted
6,407,402
7,349,941
10,029,856
11,632,410
8,358,837
3,809,923
3,260,968
3,125,129
3,697,045 -
Unrestricted
2,930,232
762,189
595,738
6421688
1,470,698
1,233,119
1,352,162
485,641
1,091,949 2,194,182
Total business -type activities net
position
$ 26,694,012
$ 20,899,988
$ 19,776,440
$ 19,436,530
$ 19,058,331
$ 16,627,579
$ 16,270,382
$ 14,601,442
$ 14,704,578 $ 14,516,893
Primary government
Net investment in capital assets
$ 37,755,346
$ 26,254,724
$ 22,439,635
$ 19,625,371
Restricted
7,896,459
8,900,008
11,811,157
12,897,809
Unrestricted
6,774,517
3,814,520
2,668,877
2,915,599
Total primary government net
position
$ 52,426,322
$ 38,969,252
$ 36,919,669
$ 35,438,779
Source: Comprehensive Annual Financial Report
$ 20,927,435
$ 22,333,747
$ 22,705,650
$ 21,754,331
$ 20,495,120
$ 22,521,511
9,342,301
4,254,263
3,417,242
3,331,385
3,855,848
604,448
3,898,524
3,571,740
3,988,760
3,097,571
3,917,451
3,990,491
$ 34,168,260
$ 30,159,750
$ 30,111,652
$ 28,183,287
$ 28,268,419
$ 27,116,450
87
City of Anna, Texas
TABLE 2
CHANGES IN NET POSITION
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Expenses
Governmental activities:
General government
$
1,405,085
$
1,393,256
$
1,058,719
$
963,243
$
885,833
$
1,047,147
$
979,107
$
1,091,501
$
853,302
$
813,959
Culture and recreation
665,430
584,676
573,249
432,133
303,607
290,907
264,779
200,431
115,564
34,362
Community services
904,227
690,842
558,541
619,465
560,983
530,649
412,775
274,589
435,659
376,867
Public safety
3,062,333
2,727,997
2,511,931
2,272,660
2,278,515
1,841,980
1,802,720
1,563,583
1,345,561
1,125,141
Public works
1,502,775
1,261,514
1,053,123
954,932
940,941
888,763
853,980
880,894
823,856
746,413
Economoic and community development
-
146,929
355,165
400,496
196,384
-
-
-
-
-
Interest on long-term debt
132,433
174,446
316,079
258,663
270,057
196,169
208,551
220,033
282,865
203,930
Total governmental activities expenses
7,672,283
6,979,660
6,426,807
5,901,592
5,436,320
4,795,615
4,521,912
4,231,031
3,856,807
3,300,672
Business -type activities:
Water and sewer
7,443,593
7,371,352
6,487,099
5,453,831
5,307,272
4,928,084
4,400,065
4,261,246
3,461,306
3,344,537
Total business -type activities expenses
7,443,593
7,371,352
6,487,099
5,453,831
5,307,272
4,928,084
4,400,065
4,261,246
3,461,306
3,344,537
Total primary government expenses
$
15,115,876
$
14,351,012
$
12,913,906
$
11,355,423
$
10,743,592
$
9,723,699
$
8,921,977
$
8,492,277
$
7,318,113
$
6,645,209
Program Revenues
Governmental activities:
Charges for services:
General government
$
136,465
$
48,181
$
30,000
$
30,000
$
20,839
$
97,951
$
99,065
$
130,824
$
82,604
$
35,095
Culture and recreation
553,511
117,990
63,265
71,905
63,421
10,295
9,798
5,014
1,680
92,570
Public safety
49,950
768,988
218,973
183,533
194,379
69,200
84,134
4,542
3,340
17,129
Public works
382,390
129,914
-
-
-
-
-
-
-
491
Community services
1,173,516
236,694
748,212
772,501
839,349
743,906
278,051
126,728
182,559
201,053
Economoic and community development
-
-
-
-
30,000
-
-
-
-
-
Operating grants and contributions
351,482
333,948
15,053
11,525
10,531
76,729
52,548
182,847
-
-
Capital grants and contributions
6,489,958
-
1,417,514
783,182
2,665,841
382,003
648,296
889,152
1,342,638
439,869
Total governmental activities program revenues
9,137,272
1,635,715
2,493,017
1,852,646
3,824,360
1,380,084
1,171,892
1,339,107
1,612,821
786,207
Business -type activities:
Charges for services:
Water and sewer
9,805,662
7,523,193
6,194,327
5,980,176
5,573,401
4,880,931
4,329,000
3,653,989
3,505,376
2,949,574
Operating grants and contributions
-
-
-
-
-
-
-
-
-
291,620
Capital grants and contributions
3,298,737
776,416
755,508
486,155
484,704
-
1,233,559
-
109,028
250,000
Total business -type activities program revenues
13,104,399
8,299,609
6,949,835
6,466,331
6,058,105
4,880,931
5,562,559
3,653,989
3,614,404
3,491,194
Total primary government program revenues
$
22,241,671
$
9,935,324
$
9,442,852
$
8,318,977
$
9,882,465
$
6,261,015
$
6,734,451
$
4,993,096
$
5,227,225
$
4,277,401
0
City of Anna, Texas
CHANGES IN NET POSITION (Continued)
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
TABLE 2
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Net (Expenses) Revenue
Governmental activities $ 1,464,989 $ (5,343,945) $ (3,933,790) $ (4,048,946) $ (1,611,960) $ (3,415,531) $ (3,350,020) $ (2,891,924) $ (2,243,986) $ (2,514,465)
Business -type activities 5,660,806 928,257 462,736 1,012,500 750,833 (47,153) 1,162,494 (607,257) 153,098 146,657
Total primary government net expense $ 7,125,795 $ (4,415,688) $ (3,471,054) $ (3,036,446) $ (861,127) $ (3,462,684) $ (2,187,526) $ (3,499,181) $ (2,090,888) $ (2,367,808)
General Revenues and Other Changes in Net
Position
Governmental activities:
Taxes
Property taxes
Sales taxes
Franchise taxes
Investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
$ 4,619,461
$ 3,973,028
$ 3,322,054
1,203,749
1,542,309
1,473,097
505,571
447,498
450,799
26,199
31,816
23,685
-
-
39,160
241,719
166,773
316,688
$ 2,807,140
1,350,896
416,175
22,295
11,960
140,596
Total governmental activities
6,596,699
6,269,980
5,624,834
5,028,769
Business -type activities:
Investment earnings
63,607
69,608
77,064
73,451
Gain on sale of capital assets
-
-
-
-
Miscellaneous
69,610
29,193
-
Transfers
-
(108,556)
649
(279,707)
Total business -type activities
133,218
(9,755)
77,713
(206,256)
Total primary government
$ 6,729,916
$ 6,260,225
$ 5,702,547
$ 4,822,513
$ 2,483,857
$ 2,392,504
$ 2,418,445
$ 2,407,914
$ 2,247,895
$ 2,076,426
1,149,297
522,840
537,544
438,071
384,964
348,632
353,482
363,970
333,936
358,732
314,720
227,415
39,256
25,939
26,484
15,981
19,409
98,499
-
3,339
-
-
4,326
-
39,399
162,422
135,518
56,029
66,239
-
(1,489,156)
(364,582)
(59,138)
(366,799)
100,612
-
2,576,135
3,106,432
3,392,789
2,909,928
3,138,165
2,750,972
34,636
34,450
51,375
48,480
83,302
81,870
-
5,318
-
-
-
-
156,127
-
185,569
88,842
41,901
-
1,489,156
364,582
59,138
366,799
(90,616)
-
1,679,919
404,350
296,082
504,121
34,587
81,870
$ 4,256,054
$ 3,510,782
$ 3,688,871
$ 3,414,049
$ 3,172,752
$ 2,832,842
Change in Net Position
Governmental activities $ 8,061,687 $ 926,035 $ 1,691,044 $ 979,823 $ 964,175 $ (309,099) $ 42,769 $ 18,004 $ 894,179 $ 236,507
Business -type activities 5,794,024 918,502 540,449 806,244 2,430,752 357,197 1,458,576 (103,136) 187,685 228,527
Total primary government $ 13,855,711 $ 1,844,537 $ 2,231,493 $ 1,786,067 $ 3,394,927 $ 48,098 $ 1,501,345 $ (85,132) $ 1,081,864 $ 465,034
Source: Comprehensive Annual Financial Report
0
City of Anna, Texas
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
TABLE 3
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
General Fund
Restricted
$ 12,768 $
19,580
$ 523,192
$ 394,002
$ 232,160
$ 356,686
$ 156,274
$ 206,256
$ 105,464
-
Committed
740,768
185,788
157,476
161,510
558,127
110,894
-
-
-
-
Assigned
-
-
-
144,175
-
-
52,383
-
-
88,840
Unassigned
3,741,504
3,114,627
2,617,940
2,351,029
1,830,457
2,178,670
2,097,832
2,016,980
1,859,827
1,706,011
Total general fund
$ 4,495,040 $
3,319,995
$ 3,298,608
$ 3,050,716
$ 2,620,744
$ 2,646,250
$ 2,306,489
$ 2,223,236
$ 1,965,291
$ 1,794,851
All Other Governmental Funds
Assigned $ - $ - $ - $ - $ - $
Unassigned (7,694) (574,937) (203,139) (371,273) (87,717)
Nonspendable - - - 35,642 88,353
Restricted 1,476,290 2,284,212 1,100,633 871,397 662,951
Committed - - - - -
Total all other governmental funds $ 1,468,596 $ 1,709,275 $ 897,494 $ 535,766 $ 663,587 $
Notes: The City implemented GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund
Type Definitions" in fiscal year 2011.
Source: Comprehensive Annual Financial Report
$ - $ - $ 53,340 $ 515,608
241,216 824,211 -
87,654 315,321 - - -
87,654 $ 315,321 $ 241,216 $ 877,551 $ 515,608
.E
City of Anna, Texas
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
Revenues
Taxes
Licenses, permits, and fees
Charges for services
Fines and forfeitures
Intergovernmental
Investment earnings
Other revenues
Contributions
Expenditures
Current:
General government
Culture and recreation
Community development
Public safety
Public works
Debt Service:
Principal retirement
Interest and fiscal changes
Bond issuance costs
Capital outlay
TABLE 4
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
$ 6,338,940
$ 5,965,724
$ 5,241,413
$ 4,571,535
$ 3,999,758
$ 3,282,978
$ 3,276,278
$ 3,194,899
$ 2,964,443
$ 2,614,335
1,115,294
711,462
748/212
772,501
839,349
743,906
278,051
126,728
182,559
201,053
1,106,620
-
158,491
166,242
139,646
82,834
93,932
9,556
19,770
109,699
73,918
84,360
115,027
100,055
133,018
98,446
87,877
122,947
74,727
35,095
185,392
287,614
114,200
106,600
1,463,430
126,900
91,400
51,650
629,000
60,000
26,199
31,816
23,685
22,295
39,256
25,939
26,484
15,981
19,409
98,499
117,932
1,164,183
126,393
122,579
74,738
35,522
44,119
56,029
52,990
9,771
351,482
-
135,949
29,085
674,398
458,732
290,908
747,733
278,304
370,589
Total Revenues 9,315,777
8,245,159
6,663,370
5,890,892
7,363,593
4,855,257
4,189,049
4,325,523
4,221,202
3,499,041
1,339,668
1,507,324
1,181,679
1,048,004
967,299
985,070
957,021
950,697
831,308
791,683
332,249
268,538
246,808
196,502
120,030
116,883
101,444
61,852
33,120
21,472
902,552
689,308
896,419
1,001,631
737,119
529,080
411,206
271,639
432,709
365,015
2,842,470
2,509,795
2,182,617
1,951,681
1,964,502
1,669,196
1,612,809
1,451,188
1,236,453
1,086,983
463,780
539,049
200,188
170,830
201,294
163,518
155,894
203,484
148,781
129,305
328,000
779,842
466,776
415,662
430,877
327,914
323,737
298,576
248,889
222,126
97,376
182,942
200,331
259,080
271,485
204,552
200,071
232,044
271,559
201,311
-
-
38,350
-
-
-
-
-
-
-
565,974
1,094,445
755,535
837,018
2,917,945
382,368
610,853
938,213
1,653,430
2,016,272
Total Expenditures
6,872,069
Excess of Revenues Over (Under) Expenditures
2,443,708
Other financing sources (uses)
Transfers in
585,209
Transfers (out)
(585,209)
Sale of capital assets
34,974
Debt issuance
(23,350)
Premium on debt issuance
850,000
Lease issuance
-
Payments to escrow agent
(820,899)
Total Other Financing Sources (Uses)
40,725
Net Change in Fund Balances
$ 2,484,433 $
Debt service as percentage of noncapital
expenditures
6.7%
Source: Comprehensive Annual Financial Report
7,571,243 6,168,703 5,880,408 7,610,551
673,916
4941667
10,484 (246,958)
4,378,581
476,676
4,373,035 4,407,693 4,856,249 4,834,167
(183,986) (82,170) (635,047) (1,335,126)
298,419
335,134
316,507
1,755,532
213,753
107,636
186,338
100,612
-
(189,863)
(335,783)
(36,800)
(3,244,688)
(578,335)
(166,774)
(553,138)
-
-
17,054
65,000
11,960
-
-
4,326
-
1,462,000
-
-
-
360,000
-
992,988
-
-
-
-
-
-
-
70,578
-
40,400
-
(1,411,398)
-
-
-
-
-
-
-
125,610
114,953
291,667
(1,489,156)
(364,582)
300,862
(296,222)
1,097,926
40,400
799,526
$ 609,620 $
302,151
$ (1,736,114) $
112,094 $
116,876 $
(378,392)
$ 462,879
$ (1,294,726)
14.9%
12.3%
13.4%
15.0%
13.3%
13.9%
15.3%
16.2%
15.0%
91
City of Anna, Texas TABLE 5
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years (Unaudited)
Estimated Market Value
Fiscal
Less: Tax Exempt
year
Real Property
Pesonal Property
Property
2008
$ 416,660,177
$ 9,887,344
$ 70,309,450 $
2009
461,662,187
11,461,340
86,568,085
2010
452,408,378
14,428,711
82,726,997
2011
426,150,871
14,570,908
75,476,975
2012
446,019,189
14,755,531
95,551,181
2013
457,390,078
16,753,543
97,610,313
2014
514,337,648
21,674,172
105,177,246
2015
649,209,461
22,743,852
161,376,609
2016
817,578,552
27,290,010
236,173,968
2017
$ 941,525,839
$ 32,134,958
$ 247,017,901 $
Source: Collin County Appraisal District.
92
Total Taxable Total Direct Tax
Assessed Value Rate
356,238,071
0.57500
386,555,442
0.57500
384,110,092
0.62273
365,244,804
0.65033
365,223,539
0.65033
376,533,308
0.65033
430,834,574
0.65033
510,576,704
0.64900
608,694,594
0.63900
726,642,896
0.60129
City of Anna, Texas
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years (Unaudited)
TABLE 6
City
Direct Rates
Overlapping Rates
Anna
Collin County
Fiscal
Debt
Total
Independent
Collin
Community
Total
Year
Operating
Service
Direct Rate
School District
County
College District
Rate
2008
0.46680
0.10820
0.575000
1.481483
0.245000
0.086984
1.81347
2009
0.47946
0.09554
0.575000
1.540050
0.242500
0.086493
1.86904
2010
0.52994
0.09279
0.622733
1.540050
0.242500
0.086300
1.86885
2011
0.55423
0.09611
0.650332
1.540000
0.240000
0.086300
1.86630
2012
0.55938
0.09096
0.650332
1.540000
0.240000
0.086300
1.86630
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
0.47887
0.12242
0.601288
1.670000
0.208395
0.081222
1.95962
Source: Collin County Central Appraisal District
Note: The entire City was located in Collin County and within the Anna Independent School District.
93
City of Anna, Texas
PRINCIPAL PROPERTY TAXPAYERS
Current and Nine Years Ago (Unaudited)
Taxpayer
Wal-Mart Real Estate Business Trust
Bloomfield Homes LP
Lennar Homes of Texas Land and Construction LTD
Burnco Texas LLC
Anna Eagle Retail LP
PTCAA Texas LP
Brookshire Grocery Company
ECC CV Anna TX LLC
Hwy 75/Anna Property LP
Windmill Self Storage LP
Total
TABLE 7
2017
2008
Percentage
Percentage
of Total City
of Total City
Taxable
Assessed
Taxable
Assessed
Assessed Valuation
Valuation'
Taxpayer
AssessedValuation
Valuation
$ 14,328,427
1.60%
Anna West/2004 LTD
$ 6,703,749
2.32%
9,422,777
1.05%
Sahi-Antoinne LLC
4,217,084
1.46%
9,208,576
1.03%
Pecan Grove Lot Vendure IV
3,540,102
1.23%
5,925,758
0.66%
Wal-Mart, Inc.
2,978,500
1.03%
4,860,047
0.54%
PMR/WHM Ltd.
2,700,292
0.94%
4,484,401
0.50%
Kimball Hill Homes Dallas LP
2,630,160
0.91%
4,042,038
0.45%
RH of Texas LP
2,392,965
0.83%
3,839,191
0.43%
Southern Arcaidia Inc.
2,154,769
0.75%
3,131,871
0.35%
Love's Country Stores Inc.
2,034,152
0.70%
2,827,984
0.32%
Love's Country Stores Inc.
1,627,238
0.56%
$ 62,071,070
6.93%
$ 30,979,011
10.73%
Source: Collin County Tax Collector
Notes: 'Taxpayers are assessed on January 1, 2016 (2016 tax year) for the 2017 fiscal year.
bTaxpayers are assessed on January 1, 2007 (2007 tax year) for the 2008 fiscal year.
94
City of Anna, Texas
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years (Unaudited)
Fiscal
Year
Taxes Levied
for the
Fiscal Year
Collected within the
Fiscal year of the Levy Collections
Amount
2008
$ 2,015,950
$ 1,975,091
2009
2,207,626
2,180,429
2010
2,354,888
2,310,499
2011
2,377,486
2,330,562
2012
2,363,528
2,314,801
2013
2,453,443
2,420,674
2014
2,808,208
2,771,670
2015
3,322,835
3,290,905
2016
3,913,275
3,881,905
2017
$ 4,562,147
$ 4,541,224
Source: Collin County Tax Assessor
Percentage in Subsequent
of Tax Levy Years
Total Collections to Date
Amount
98.0% $
32,997
$ 2,008,088
98.8%
25,963
2,206,392
98.1%
42,669
2,353,168
98.0%
44,487
2,375,049
97.9%
46,689
2,361,490
98.7%
27,315
2,447,989
98.7%
30,150
2,801,820
99.0%
27,716
3,318,621
99.2%
23,645
3,905,550
99.5% $
-
$ 4,541,224
95
Percentage
of Tax Levy
99.6%
99.9%
99.9%
99.9%
99.9%
99.8%
99.8%
99.9%
99.8%
99.5%
TABLE 8
City of Anna, Texas
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years (Unaudited)
TABLE 9
Governmental Activities
Business -type Activities
General Certificates
Waterworks &
Combination
Contract
General
Total
Percentage
Fiscal
Obligation of
Other
Sewer System
Tax & Revenue
Revenue
Obligation
Other
Primary
of Personal
Per
Year
Bonds Obligation
Obligation
Revenue Bonds
Bonds & Certificates
Bonds
Bonds
Obligation
Government
Income
Capita
2008
$ 350,000 $ 3,735,000
$ 208,307
$ 28,000
$ -
$ 20,262,500
$ 37,000
$ -
$ 24,620,807
N/A
3,403
2009
330,000 4,465,000
265,785
24,000
4,165,000
16,033,750
33,000
79,532
25,316,535
N/A
3,235
2010
310,000 4,280,000
228,916
19,500
4,140,000
15,746,250
29,000
63,372
24,753,666
N/A
3,056
2011
290,000 4,435,000
979,759
15,000
4,115,000
15,428,750
24,500
46,382
25,288,009
12.98%
3,047
2012
270,000 4,215,000
2,686,726
10,000
4,090,000
15,086,250
20,000
28,526
26,377,976
13.36%
3,074
2013
250,000 3,985,000
2,513,847
5,000
8,275,000
14,698,750
15,000
9,747
29,742,597
13.30%
3,178
2014
230,000 3,755,000
2,354,618
-
12,430,000
14,201,250
10,000
-
32,980,868
12.58%
3,187
2015
1,615,000 2,525,000
2,204,882
-
12,561,000
13,675,000
5,000
-
32,585,882
11.90%
2,968
2016
1,563,000 2,270,000
1,732,000
-
12,359,000
13,140,000
-
-
31,064,000
10.99%
2,744
2017
$ 2,145,000 $ 1,045,000
$ -
$ -
$ 12,144,000
$ 12,503,750
$ -
$ 1,340,010
$ 29,177,760
8.61%
2,355
Notes: Details regarding the City's outstanding debt can be found in the notes to financial statements.
City of Anna, Texas TABLE 10
RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years (Unaudited)
Percentage of
Actual
Taxable
Fiscal
General Obligation
Certificates of
Value' of
Per
Year
Bonds
Obligation
Total
Property
Capital
2008
$ 350,000
3,735,000
$ 4,085,000
0.0012%
565
2009
330,000
4,465,000
4,795,000
0.0013%
613
2010
310,000
4,280,000
4,590,000
0.0012%
567
2011
290,000
4,435,000
4,725,000
0.0014%
569
2012
270,000
4,215,000
4,485,000
0.0013%
523
2013
250,000
3,985,000
4,235,000
0.0012%
452
2014
230,000
3,755,000
3,985,000
0.0010%
385
2015
1,615,000
2,525,000
4,140,000
0.0009%
377
2016
1,563,000
2,270,000
3,833,000
0.0008%
339
2017
$ 2,145,000
1,045,000
$ 3,190,000
0.4390%
257
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
'See the Schedule of Assessed and Estimated Actual Value of Taxable Property for property value data.
2Population data can be found in the Schedule of Demographic and Economic Statistics.
97
City of Anna, Texas
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of September 30, 2017 (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
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable'
Debt
$ 352,380,000
0.65% $
2,290,470
14,590,000
0.65%
94,835
119,240,024
77.42%
92,315,627
94,700,932
3,190,000
100%
3,190,000
97,890,932
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-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident --and therefore responsible for repaying the debt --of each overlapping government.
1 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
98
TABLE 11
City of Anna, Texas
PLEDGED -REVENUE COVERAGE
Last Ten Fiscal Years (Unaudited)
Water Revenue Bonds
Less:
Net
Fiscal
Total
Operating
Available
Debt Service
Times
Year
Revenues'
Expenses
Revenue
Principal
Interest
Coverage
2008
$ 3,573,064
$ 2,074,362
$ 1,498,702
$ 341,750
$ 166,916
2.95
2009
3,739,607
2,253,408
1,486,199
525,500
576,725
1.35
2010
3,791,310
2,498,178
1,293,132
336,000
787,293
1.15
2011
4,565,944
2,547,615
2,018,329
365,526
782,174
1.76
2012
4,920,699
2,899,257
2,021,442
416,826
906,240
1.53
2013
5,764,164
3,161,627
2,602,537
446,279
955,154
1.86
2014
6,053,627
3,151,655
2,901,972
542,247
1,054,947
1.82
2015
6,271,391
3,987,255
2,284,136
663,250
1,125,983
1.28
2016
8,371,878
5,137,343
3,234,535
742,000
1,056,647
1.80
2017
$ 9,938,880
$ 6,490,261
$ 3,448,619
$ 772,500
$ 1,028,814
1.91
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.
TABLE 12
City of Anna, Texas
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years (Unaudited)
TABLE 13
Per
Fiscal
Personal Capita
School
Unemployment
Year
Population' Income Personal Income
Enrollment3
Rate
2008
7,236 N/A N/A
N/A
4.7%
2009
7,827 N/A N/A
N/A
7.9%
2010
8,100 N/A N/A
N/A
7.0%
2011
8,300 $ 194,842,500 $ 23,475
2,339
6.9%
2012
8,580 197,374,320 23,004
2,519
5.6%
2013
9,360 223,657,200 23,895
2,579
5.4%
2014
10,350 262,082,700 25,322
2,855
4.4%
2015
10,980 273,808,260 24,937
3,051
3.6%
2016
11,320 282,705,680 24,974
3,214
3.8%
2017
12,390 $ 338,916,060 $ 27,354
3,438
3.8%
Sources:
'North Central Texas Council of Governments (NCTCOG)
2State Department of Labor and homefacts.com
3Anna Independent School District
4U. S. Census Bureau American Fact Finder & North Central Texas Council of Goveernements (NCTCOG)
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.
100
City of Anna, Texas
PRINCIPAL EMPLOYERS
Current and Nine Years Ago (Unaudited)
2017
No.
Percent of Total
Employer
Employees
City Employment
Anna ISD
333
18.55%
Pate Rehab
162
9.03%
Brookshire's
118
6.57%
Bronco
68
3.79%
City of Anna
56
3.12%
Hurricane Creek County Club
45
2.51%
Loves Travel Stop
45
2.51%
McDonalds
40
2.23%
Tri-County Vet
31
1.73%
Wells McCoy
26
1.45%
Total 924
TABLE 14
2008
No.
Percent of Total
Employees'
City Employment
Anna ISD
N/A
N/A
Pate Rehab
N/A
N/A
Bronco
N/A
N/A
City of Anna
N/A
N/A
Wells McCoy
N/A
N/A
Pilot Truck Stop
N/A
N/A
Loves Travel Stop
N/A
N/A
Sonic
N/A
N/A
Independent Bank
N/A
N/A
Texas Star Bank
N/A
N/A
0
Source: 1Top ten employers and employee count provided by Anna Econcomic Deveopment Corporation.
Note: Data not available for 2007 at the time of this publication. The City will present this information for future years' as the information
becomes available.
101
City of Anna, Texas
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTIONIPROGRAM
Last Ten Fiscal Years (Unaudited)
2017
2016
2015
2014
2013
Function / Program
General Government and Administration
12.5
13.5
13.5
12.5
12.5
Public Safety
24.0
22.0
21.0
18.0
18.0
Public Works
7.0
7.0
4.0
1.0
1.0
Culture and Recreation
4.0
4.0
2.0
3.0
1.0
Water and Sewer
11.0
8.0
10.0
12.0
10.0
Community Development
4.0
3.0
3.0
3.0
2.0
Economic Development
0.5
0.5
0.5
0.5
0.5
Total all City funds
63.0
58.0
54.0
50.0
45.0
Source: Finance and Human Resouces Department
TABLE 15
2012
2011
2010
2009
2008
13.5
12.5
12.5
12.5
12.5
16.0
16.0
16.0
14.0
13.5
1.0
1.0
1.0
1.0
1.0
2.0
2.0
2.0
1.0
-
10.0
9.0
9.0
9.0
9.0
2.0
3.0
3.0
2.5
2.5
0.5
0.5
0.5
0.5
0.5
45.0
44.0
44.0
40.5
39.0
102
City of Anna, Texas
OPERATING INDICATORS BY FUNCTIONS/PROGRAM
Last Ten Fiscal Years (Unaudited)
2017 2016 2015 2014 2013 2012 2011 2010
Function/Program
General government
Building permits issued -residential
440
273
216
290
305
351
100
26
Building permits issued -commerical
11
4
1
5
-
13
15
10
Building inspections conducted
16046
9474
7493
12584
10566
8604
3310
1183
Public Safety
Police:
Physical arrests
337
311
309
208
197
187
164
119
Accidents
265
261
231
182
155
139
129
121
Traffic violations
2404
3,962
4,235
3,491
2,539
3,694
2,342
2,069
Fire:
Emergency responses
1502
1,234
1,256
1,065
1,070
1,021
1,066
855
Fires extinguished
19
79
62
43
41
99
33
59
Inspections
132
115
107
79
77
55
34
37
Highways and streets
Street resurfacing (miles)
0.4
1
-
-
-
-
-
-
Potholes repaired
940
3,900
1,600
-
-
-
-
-
Recreation
Reservations issued
92
53
59
17
-
-
-
-
Waster and Sewer
Number of Active Accounts
5102
4935
4,596
4,423
4,166
3,720
3,104
N/A
Average daily consumption (gallons) wells
1,018,025
1,007,258
1,115,682
1,061,013
772,487
1,200,000
1,093,365
N/A
Average daily consumption (gallons) NTMWD
679,857
355,970
Source: City departments
Note: Some data not available for10 years at the time of this publication.
The City will
present this information for future years' as the information becomes available.
TABLE 16
2009 2008
30 91
7 1
1086 2645
165
137
1,942
790
68
21
102
1,044
749
72
20
N/A N/A
N/A N/A
103
City of Anna, Texas
CAPITAL ASSET STATISTICS BY FUNCTIONIPRO GRAM
Last Ten Fiscal Years (Unaudited)
TABLE 17
2017
2016
2015
2014
2013
2012
2011
2010 2009 2008
Function
Public Safety
Number of police stations
1
1
1
1
1
1
1
1 1 1
Number of patrol units
11
9
9
7
7
6
6
6 5 5
Number of fire stations
1
1
1
1
1
1
1
1 1 1
Streets and Grounds
Streets (miles)
65
50
-
-
-
-
-
- - -
Streetlights
625
570
-
-
-
-
-
- - -
Traffic signals
3
1
-
-
-
-
-
- - -
Recreation
Acreage
197.06
197.06
179.67
177.09
177.09
177.09
177.09
177.09 0 0
Playgrounds
2
2
2
2
2
2
2
2 - -
Baseball/softball diamonds
6
7
7
7
7
5
5
5 - -
Water and Sewer
Water mains
65
55
-
-
-
-
-
- - -
Fire hydrants
650
607
-
-
-
-
-
- - -
Sanitary Sewer (miles)
60
50
Storage capacity (millions of gallons)
4
3
-
-
-
-
-
- - -
Wastewater
Treatment capacity
9.1
9.1
-
-
-
-
-
- - -
Sanitary sewer (miles)
60
50
-
-
-
-
-
- - -
Storm sewers (miles)
55
50
-
-
-
-
-
- - -
Source: City Departments
Note: Some data not available for10 years at the time of this publication. The City will present this information for future years' as the information
becomes available.
104