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CITY OF UVALDE Uvalde, Texas

COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Fiscal Year Ended

September 30, 2013

Prepared by:

City of Uvalde Finance Department

This Page Left Blank Intentionally.

INTRODUCTORY SECTION

i

CITY OF UVALDE

Uvalde, Texas


For The Fiscal Year Ended September 30, 2013

TABLE OF CONTENTS

PAGE

INTRODUCTORY SECTION Table of Contents ......................................................................................................................................

i – iv

Directory of Officials ................................................................................................................................

v

Letter of Transmittal .................................................................................................................................

vi – ix

Organizational Chart .................................................................................................................................

x

Certificate of Achievement for Excellence in Financial Reporting ..........................................................

xi

FINANCIAL SECTION Independent Auditors’ Report ..................................................................................................................

1-3

Management’s Discussion and Analysis...................................................................................................

4-13

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements

Statement of Net Position .....................................................................................................................

14

Statement of Activities .........................................................................................................................

15-16

Governmental Fund Financial Statements

Balance Sheet – Governmental Funds..................................................................................................

17-18

Reconciliation of the Governmental Funds Balance Sheet to the

Statement of Net Position .................................................................................................................

19

Statement of Revenues, Expenditures, and Changes in Fund Balance –

Governmental Funds .........................................................................................................................

20-21

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,

and Changes in Fund Balances to the Statement of Activities ..........................................................

22 Proprietary Fund Financial Statements

Statement of Net Position – Proprietary Funds ....................................................................................

23-24

Statement of Revenues, Expenses, and Changes in Fund Net Assets –

Proprietary Funds ............................................................................................................................

25

Statement of Cash Flows – Proprietary Funds .....................................................................................

26 Fiduciary Funds

Statement of Fiduciary Net Position – Fiduciary Funds .......................................................................

27

Notes to Financial Statements ...................................................................................................................

28-57

(Continued)

ii

CITY OF UVALDE

Uvalde, Texas



TABLE OF CONTENTS

PAGE

FINANCIAL SECTION (Continued) REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Revenues, Expenditures, and Changes in Fund Balance –

Budget and Actual (GAAP Budgetary Basis) – General Fund .........................................................

58

Schedule of Funding Progress Texas Municipal Retirement System ...................................................

59

NON-MAJOR GOVERNMENTAL FUND STATEMENTS, BUDGET SCHEDULES,

AND CAPITAL ASSET SCHEDULES

Combining Balance Sheet – Nonmajor Governmental Funds ..............................................................

60-62

Combining Statement of Revenues, Expenditures, and

Changes in Fund Balance – Nonmajor Governmental Funds ...........................................................

63-65

Combining Statement of Changes in Assets and Liabilities – All Agency Funds ................................

66 Statements of Revenues, Expenditures, and Changes in Fund Balance –

Budget and Actual

Hotel/Motel Tax ...................................................................................................................................

67

Police Forfeiture Fund ..........................................................................................................................

68

Debt Service .........................................................................................................................................

69

Capital Assets Used in the Operation of Governmental Funds

Comparative Schedules By Source ......................................................................................................

70

Schedule by Function and Activity ......................................................................................................

71

Schedule of Changes by Function and Activity ...................................................................................

72

STATISTICAL SECTION

Financial Trend Information

Net Assets by Component – Last Nine Fiscal Years ................................................................................

73-74

Changes in Net Position – Last Nine Fiscal Years ...................................................................................

75-78

Fund Balances of Governmental Funds – Last Ten Fiscal Years .............................................................

79-80

Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ............................................

81-82

(Continued)

iii

CITY OF UVALDE

Uvalde, Texas



TABLE OF CONTENTS

PAGE

STATISTICAL SECTION (Continued)

Revenue Capacity Information

Assessed Value and Estimated Actual Value of Taxable Property –

Last Ten Fiscal Years ...........................................................................................................................

83 Principal Property Taxpayers – Current Year and Nine Years Ago .........................................................

84

General Governmental Tax Revenues By Source .....................................................................................

85

General Governmental Revenues By Source – Last Ten Fiscal Years .....................................................

86

Taxable Sales by Category – Last Nine Calendar Years ..........................................................................

87-88

Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ............................................................

89

Property Tax Rates Direct and Overlapping – Last Ten Fiscal Years ......................................................

90

Property Tax Levies and Collections – Last Ten Fiscal Years .................................................................

91

Debt Capacity Information

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ..................................................................

92-93

Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .....................................................

94

Direct and Overlapping Governmental Activities Debt – As of September 30, 2011 ..............................

95

Legal Debt Margin Information – Last Ten Fiscal Years .........................................................................

96-97

Pledged-Revenue Coverage – Last Ten Fiscal Years ...............................................................................

98

Demographic and Economic Information

Demographics and Economic Statistics – Last Ten Years ........................................................................

99

Principal Employers – Current Year and Nine Years Ago .......................................................................

100

Operating Information

Full-Time-Equivalent City Government Employees by Function/Program –

Last Ten Fiscal Years ................................................................................................................................

101-102 Operating Indicators by Function/Program – Last Ten Fiscal Years ........................................................

103-104

Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ....................................................

105-106

(Continued)

iv

CITY OF UVALDE

Uvalde, Texas



TABLE OF CONTENTS

PAGE

SINGLE AUDIT SECTION Report on Internal Control Over Financial Reporting and on Compliance and

Other Matters Based on an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards ............................................................................

107-108 Report on Compliance with Requirements Applicable to Each Major Program and

Internal Control Over Compliance in Accordance with OMB Circular A-133 ..................................

109-110 Schedule of Findings and Questioned Costs .............................................................................................

111-114

Schedule of Expenditures of Federal Awards and Related Notes ............................................................

115

Summary Schedule of Prior Year Audit Findings ....................................................................................

116

v

City of Uvalde, Texas Directory of Officials

FY 2012-2013

Mr. J Allen Carnes

Mayor First Term Began: May 2008

Current Term Expires: May 2014

Mr. Rogelio M. Munoz Mr. Jesse Rodriguez Mr. Ernest “Chip W. King, III

District 3-Mayor Pro Tem District 1-Councilmember District 5-Councilmember First Term Began: May 2008 First Term Began: May 2008 First Term Began: May 2013 Current Term Expires: May 2014 Current Term Expires: May 2014 Current Term Expires: May 2014

Mr. John H. Flores, Jr. Mr. Stephen Balke

District 2-Councilmember District 4-Councilmember First Term Began: May 2012 First Term Began: May 2012

Current Term Expires: May 2016 Current Term Expires: May 2016

Jennifer E. Garver Joe A. Cardenas

City Manager Assistant City Manager Hired July 2009 Hired August 1998

Uvalde Texas P.O. BOX 799, 78802-0799

(830) 278-3315 FAX: (830) 591-2685

vi

CITY OF UVALDE

March 31, 2014

To the Honorable Mayor, Council Members, and Citizens of the City of Uvalde, Uvalde, Texas:

State law requires that every general-purpose local government publish at the close of each fiscal

year a complete set of financial statements presented in conformity with Generally Accepted

Accounting Principles (GAAP) and audited in accordance with generally accepted auditing

standards by a firm of licensed certified public accountants. Pursuant to that requirement, we

hereby issue the Comprehensive Annual Financial Report of the City of Uvalde for the Fiscal

Year Ended September 30, 2013.

This report consists of management's representations concerning the finances of the City of

Uvalde. Consequently, management assumes full responsibility for the completeness and

reliability of all of the information presented within this report. To provide a reasonable basis

for making these representations, management has established a comprehensive internal control

framework that is designed to monitor and protect the government's assets from loss, theft, or

misuse and to compile sufficient reliable information for the preparation of the City of Uvalde's

financial statements in conformity with GAAP. Because the cost of internal controls should not

outweigh their benefits, the City of Uvalde'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. As management, we assert that, to the best of our

knowledge and belief, this financial report is complete and reliable in all material aspects.

The City of Uvalde's financial statements have been audited by Garza/Gonzalez & Associates, 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 of Uvalde for the fiscal year ended

September 30, 2013, are free of material misrepresentation. 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 concluded, based upon the audit, that there was a reasonable basis for rendering an

unqualified opinion that the City of Uvalde's financial statements for the fiscal year ended

September 30, 2013, are fairly presented in conformity with GAAP. The independent auditor's

report is presented as the first component of the financial section of this report.

vii

GAAP requires that management provide a narrative introduction, overview, and analysis to

accompany the basic financial statements in the form of Management's Discussion and Analysis

(MD&A). This letter of transmittal is designed to complement MD&A and should be read in

conjunction with it. The City of Uvalde's MD&A can be found immediately following the report

of the independent auditors.

The City of Uvalde, was incorporated in 1889, and is located in the southwest part of the state,

which is considered to be one of the top growth areas in the state, and one of the top growth

areas in the country. The City of Uvalde currently occupies a land area of 5.177 square miles

and serves a population of approximately 15,751. The City of Uvalde is empowered to levy a

property tax on both real and personal properties located within its boundaries. It also is

empowered by state statute to extend its corporate limits by annexation, which occurs

periodically when deemed appropriate and necessary by the governing council.

The City of Uvalde has operated under the council-manager form of government since 1934.

Policy-making and legislative authority are vested in governing council consisting of the mayor

and five council members. The governing council is responsible, among other things, for

passing ordinances, adopting the budget, appointing committees, and hiring both the city

manager and city attorney. The city manager is responsible for carrying out the policies and

ordinances of the governing council, for overseeing the day-to-day operations of the city, and for

appointing the heads of various departments. The city council is composed of the Mayor and

five (5) Council Members. The Mayor is elected to serve a two-year term and is elected at each

biennial, city general election. The Mayor is elected by the entire city population, while the five

(5) Council members are each elected by their respective district as a result of a special election

held in 2008. Places 1, 3, and 5 became single member districts in 2010, and places 2 and 4

became single member districts in 2012. Council members are elected to serve four-year

staggered terms, with places 1, 3, 5 and 2 and 4 respectively, alternating every two years on even

numbered years.

The City of Uvalde provides a full range of services, including police and fire protection; the

construction and maintenance of streets, alleys, and other infrastructure; and recreational

activities and cultural events. Water, sewer, gas and sanitation services are provided by the City

of Uvalde and are included in the enterprise section of the City’s financial statements.

The annual budget serves as the foundation for the City of Uvalde's financial planning and

control. All departments of the City of Uvalde were required to submit their requests for

appropriation to the city manager on or before May 20, 2013. The city manager used these

requests as the starting point for developing a proposed budget. The city manager then presented

this proposed budget to the council for review and comment prior to the month of June. The

council is then required to hold public hearings on the proposed budget and to adopt a final

budget by no later than September 30, 2013, the close of the City of Uvalde's fiscal year.

The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g.,

police). Department heads are allowed to make transfers of appropriations within

interdepartmental line items. Transfers of appropriations between departments, however, require

the special approval of the city manager and of the governing council. 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

viii

on page 58 as part of the required supplementary information. For governmental funds, other

than the general fund, with appropriated annual budgets, this comparison is presented in the

governmental fund subsection of this report, which starts on page 60. Also included in the

governmental fund subsection are project-length budget-to-actual comparisons for each

governmental fund for which a project-length budget has been adopted.

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

Uvalde operates.

Local economy. The City of Uvalde currently enjoys a favorable economic environment and

local indicators point to continued stability. The principal industries within the county include

agriculture, tourism, manufacturing of asphalt & limestone paving materials, food processing,

aviation services and retail establishments. The community's economic development and

revitalization efforts are strong and continue to pay dividends in the form of expansion of

existing businesses, new businesses, increased tourism and moderate population growth. As a

portion of the population ages, Uvalde continues to increasingly become an area for retirees. It’s

good hospital, health care facilities, climate, abundance of recreational activities, quality of life

and low cost of living makes this city an ideal place for citizens of all ages, incomes, and walks

of life.

The following are ten-year goals established by the City of Uvalde:

1. Implement the comprehensive street improvement and maintenance plan with voter

approval and identify funding sources to support the program and related debt payments.

2. Develop a separate capital equipment budget to plan for future capital needs in all

departments, including heavy equipment, fleet vehicles and all other major capital

outlays. Establish capital fund accounts to aid in the future purchase of capital needs and

identify funding mechanisms.

3. Continue to upgrade aging infrastructure in city utility systems as follows:

a. Reinstate water meter replacement program to upgrade the 5,400 plus water

meters and 3,000 plus gas meters to ensure accurate readings;

b. Replace all existing steel gas pipe with PVC pipe;

c. Refurbish old clarifier at wastewater treatment plant;

4. Install a 3rd elevated water tower (500,000 gallon) to serve the North/Northeast portion

of Uvalde.

5. Identify and implement technologies that can assist the city in providing more efficient

service deliver and better data collection and storage. Network all city facilities.

6. Begin the permitting process to acquire permits for additional cells at the landfill.

7. Reconstruct Airport Boulevard to include widening of the road with curbing and a

sidewalk on one side and extend Garner Field Airport runway by 1,000 feet.

8. Upgrade all cart paths at the Uvalde Memorial Golf Course from asphalt to concrete and

create a linkage from the East side of the Leona River to the Golf Course.

9. Identify areas for annexation that would benefit the City.

ix

Awards and Acknowledgements: The City of Uvalde, Texas will submit this report (CAFR) to

the Government Finance Officers Association (GFOA) to be considered for a Certificate of

Achievement for Excellence in Financial Reporting award. This report satisfies both GAAP and

applicable legal requirements. A Certificate of Achievement is valid for a period of one year

only. We believe that our current CAFR continues to meet the Certificate of Achievement

Program's requirements and we are submitting it to the GFOA to determine its eligibility for a

certificate.

In addition, the city has also submitted to the GFOA's Distinguished Budget Presentation Award

for its annual budget document for fiscal year ended September 30, 2013. In order to qualify for

the Distinguished Budget Presentation Award, the government's budget document was judged to

be proficient in several categories, including as a policy document, a financial plan, an

operations guide, and a communications device. The Distinguished Budget Presentation Award

was received for the City’s budget for the year ended September 30, 2013.

The preparation of this report would have not been possible without the efficient and dedicated

services of the entire staff of the Finance and Administration department. We would like to

express our appreciation to all members of the department who assisted and contributed to the

preparation of this report. Credit, must also be given to the Mayor and Council Members for

their unfailing support for maintaining the highest standards of professionalism in the

management of the City of Uvalde's finances.

Respectfully Submitted,

Jennifer E. Garver

City Manager

Mayor

City Council

City Attorney

Municipal Prosecutor

Municipal Judge

City Manager

Assistant City

Manager

Building Official

Permit Clerks

Code Enforcement

Official

Code Enforcement

Assistant

Municipal Court Clerk

Information Technology

Main Street Manager

Main Street Asst.

Director of Utilities

Water Superintendant

Water Foreman

Water Utility Workers

Gas Supervisor

Gas Crew Leader

Gas Utility Workers

Sewer Supervisor

Sewer Plant Operator

Sewer Utility Workers

Landfill Supervisor

Landfill Spotters

Landfill Labor Collection

Drivers

Recycling Coordinator

Recyling Assistant

Utility Office Manager

Utility Office Clerks

Meter Readers

Director of Public Works

Facilities/

Maint. Foreman

Custodians

Street Foreman

Street Labor

Lead Mechanic

Shop Mechanic

Service Center Clerk

Director of Parks &

Recreation

Golf Pro Shop

Parks Supervisor

Civic Center Labor

Parks Labor

Cemetery Labor

Golf Labor

Swimming Pool

Seasonal Workers

Finance Director (VACANT)

Comptroller Accounts Payable

Clerk

Budget Director

Payroll Clerk

Purchasing Agent

City Secretary

Human Resources

Asst. to CM

Volunteer Fire Chief (Elected

Annually)

Volunteer Firefighters

City of Uvalde Paid Firefighters

Fire Marshal

Organizational Chart

Elected Officials

Appointed Officers

Leadership Team

Department Heads

City Staff

Outside Services

x

City Manager

Chief of Police

Assistant Chief of Police

Lieutenant - Professional Standards

Animal Control Officers

Lieutenant - Uniform Patrol

Division

Sergeants

Corporals

Patrol Officers & Student

Resource

Communication Director/Asst.

to Lt.

Communication Supervisor

Dispatchers

Lieutenant - Criminal

Investigations

Detectives

Records Clerk

Crossing Guards

Administrative Assistant

Evidence Technician

Appointed Officers

Leadership Team

Department Heads

City Staff

Uvalde Police Department Organizational Chart

xi

FINANCIAL SECTION

2

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, the business-type activities, each major

fund, and the aggregate remaining fund information of the City as of September 30, 2013, and the

respective changes in financial position and, where applicable, cash flows thereof, for the year then

ended in conformity 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 and Analysis and Budgetary Comparison Information and the Schedule of

Funding Progress, as listed in the table of contents, 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 financial statements. The introductory section, combining and

individual nonmajor fund financial statements, statistical section, budget schedules and capital asset

schedules, are presented for purposes of additional analysis and are not a required part of the basic

financial statements. The accompanying schedule of expenditures of federal awards is presented for

purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133,

Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of

the financial statements.

The combining and individual nonmajor fund financial statements, budget schedules, and capital asset

schedules and the schedule of expenditures of federal awards are the responsibility of management and

were derived from and relate directly to the underlying accounting and other records used to prepare the

financial statements. Such information has been subjected to the auditing procedures applied in the

audit of the financial statements and certain additional procedures, including comparing and reconciling

such information directly to the underlying accounting and other records used to prepare the financial

statements or to the financial statements themselves, and other additional procedures in accordance with

auditing standards generally accepted in the United States of America. In our opinion, the information

is fairly stated in all material respects in relation to the financial statements as a whole.

The introductory and statistical sections 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 or provide any

assurance on them.

CITY OF UVALDE

Uvalde, Texas

MANAGEMENT’S DISCUSSION AND ANALYSIS

4

Our discussion and analysis of the City of Uvalde, Texas’ financial performance provides an overview

of the City’s financial activities for the fiscal year ended September 30, 2013. Please, read it in

conjunction with the City’s audited financial statements, which begin on page 14.

FINANCIAL HIGHLIGHTS

Total net position of the City increased by $2,956,341 in 2013. Of this increase, $1,926,176 (or

65%) was contributed by the Business-Type Activities.

The Government’s total net position of governmental activities increased by $1,030,165. In FY

2012 the increase was $226,232.

The ending combined Governmental Funds’ fund balance totaled $5,099,359. The fund

balance increased $543,131 from the prior year of $4,556,228. The significant increase was

attributed to the General Fund balance increase of $477,399.

The fund balance in the General Fund as of September 30, 2013 is $2,723,022. Unassigned

fund balance is $2,669,600. This amount is sufficient to fund approximately one hundred and

twenty-one (121) days of operations.

OVERVIEW OF THE FINANCIAL STATEMENTS

The City of Uvalde, Texas’ basic financial statements are comprised of three components: 1)

government-wide financial statements, 2) fund financial statements, and 3) notes to the financial

statements. This report also contains other supplemental information in addition to the basic financial

statements themselves.

Government-wide financial statements: The government-wide financial statements are designed to

provide readers with a broad overview of the City of Uvalde finances in a manner similar to a private-

sector business.

The statement of net position presents information on all of the City of Uvalde’s assets and liabilities,

with the difference between the two reported as net position. Over time, increase or decrease in net

position may serve as a useful indicator of whether the financial position of the City is improving or

declining.

CITY OF UVALDE

Uvalde, Texas


5

The statement of activities presents information showing how the government’s net position changed

during the most recent fiscal year. All changes in net position are reported as soon as the underlying

event giving raise to the change occurs, regardless of the timing of related cash flows. Thus, revenues

and expenses are reported in this statement for some items that will only result in cash flows in future

fiscal periods (e.g., uncollected taxes and earned but unused sick leave).

Both of the government-wide financial statements distinguish functions of the City of Uvalde, Texas

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, health and welfare, bond interest and fiscal agent fees, and

culture and recreation. The business-type activities of the City include Utility Fund (Water, Sewer,

and Gas), Sanitation fund, and Airport fund.

The government-wide financial statements include only the City of Uvalde, Texas itself (known as the

primary government). The government-wide financial statements can be found on pages 14-16.

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 financial-

related legal requirements. All of the funds of the City can be divided into three categories:

governmental funds, proprietary funds, and fiduciary 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 evaluating a government’s near-term

financing requirements.

Because the focus of governmental funds is narrower than the government-wide financial statements, it

is useful to compare the information presented for the 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.

CITY OF UVALDE

Uvalde, Texas


6

The City of Uvalde maintains several individual governmental funds. Information is presented

separately in the governmental fund balance sheet and in the governmental fund statement of revenue,

expenditures, and changes in fund balance for the General fund, Debt Service, and the Capital Projects

fund, which are considered to be major funds. Data from the other governmental funds are combined

into a single, aggregated presentation. Individual fund data for each of these non-major governmental

funds is provided in the form of combining statements elsewhere in this report.

The City of Uvalde adopts an annual appropriated budget for its General Fund, Debt Service Fund

Hotel/Motel, and Police Forfeiture funds. A budgetary comparison statement has been provided for the

General Fund, Hotel/Motel, Police Forfeiture and Debt Service Fund to demonstrate compliance with

this budget.

The basic governmental fund financial statements can be found on pages 17-22 of this report.

Proprietary Funds: The City of Uvalde maintains one type of proprietary fund. Enterprise funds are

used to report the same functions presented as a business-type activities in the government-wide

financial statements. The City of Uvalde uses enterprise funds to account for its Utility (Water, Sewer,

and Gas), Sanitation, and Airport activities.

Proprietary funds provide the same type of information as the government-wide financial statements,

only in more detail. The proprietary fund financial statements provide separate information for the

Utility fund, the Sanitation fund, and the Airport fund, each of which are considered to be major funds

of the City of Uvalde, Texas.

The basic proprietary fund financial statements can be found on pages 23-26 of this report.

Notes to the Financial Statements. The notes provide additional information that is essential to a full

understanding of the data provided in the governmental-wide and fund financial statements. The notes

to the financial statements can be found on pages 28-57 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report

also presents certain required supplementary information concerning the City’s progress in funding its

obligations to provide pension benefits to its employees. Required supplemental information can be

found on pages 58-59 of this report.

The combining statements referred to earlier in connection with non-major governmental funds is

presented immediately following the required supplementary information on pensions. Combining and

individual fund statements and schedules can be found on pages 60-66 of this report.

CITY OF UVALDE

Uvalde, Texas


7

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of a government’s financial position. In the case

of the City of Uvalde assets exceeded liabilities by $28,615,424 at the close of the year.

The largest portion of the City’s net position (nearly 70 percent) reflects its net investment in capital

assets (e.g. land, building, machinery, infrastructure, and equipment), less any related debt used to

acquire those assets that is still outstanding. The City of Uvalde uses these capital assets to provide

services to the 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 capital assets

themselves can not be used to liquidate these liabilities.

Activities Activities

2013 2012 2013 2012 2013 2012

Current & Other Assets 6,743,162$ 6,732,245$ 6,728,497$ 4,222,334$ 13,471,659$ 10,954,579$

Capital Assets 16,069,703 16,060,483 23,375,465 24,550,398 39,445,168 40,610,881

Total Assets 22,812,865$ 22,792,728$ 30,103,962$ 28,772,732$ 52,916,827$ 51,565,460$

Long-Term Liabilities 8,570,223$ 9,094,768$ 14,267,003$ 14,782,111$ 22,837,226$ 23,876,879$

Other Liabilities 669,711 1,155,195 794,466 874,304 1,464,177 2,029,499

Total Liabilities 9,239,934$ 10,249,963$ 15,061,469$ 15,656,415$ 24,301,403$ 25,906,378$

Net Investment in Capital

Assets 7,918,932$ 7,681,162$ 10,810,803$ 12,300,857$ 18,729,735$ 19,982,019$

Restricted 2,236,898 1,149,100 1,268,769 1,676,281 3,505,667 2,825,381

Unrestricted 3,417,101 3,712,503 2,962,921 (860,821) 6,380,022 2,851,682 Total Net Position 13,572,931$ 12,542,765$ 15,042,493$ 13,116,317$ 28,615,424$ 25,659,082$

Governmental Business-Type

Total

Net Position

An additional portion of the City of Uvalde’s net position (12%) represents resources that are subject

to external restrictions on how they may be used. The remaining balance of unrestricted net position

(22%) may be used to meet the governments’ on going obligations to citizens and creditors. At the end

of the current fiscal year the City reported a positive balance in the governmental activities and a

positive balance in the business-type activities.

There was a decrease in unrestricted net position reported in connection with the City of Uvalde’s’

governmental activities. During the current fiscal year, the government’s unrestricted net position

decreased by $295,402. The City’s net investment in capital assets for governmental activities totaled

$7,918,932, an increase of $237,770 over the prior year. This increase was attributed to an increase in

construction related projects funded by previously issued Certificate of Obligations for City projects.

CITY OF UVALDE

Uvalde, Texas


8

Change in Net Position

2013 2012 2013 2012 2013 2012

Revenues:

Program Revenues:

Charges for Services 865,523$ 846,929$ 10,323,934$ 7,883,390$ 11,189,457$ 8,730,319$

Operating Grants and Contribution 530,788 112,302 21,927 1,286,188 552,715 1,398,490

General Revenues:

Maintenance and Operations 3,219,823 2,828,989 - - 3,219,823 2,828,989

Taxes

Sales Taxes 2,663,942 2,472,197 - - 2,663,942 2,472,197

Franchise Taxes 642,316 656,515 - - 642,316 656,515

Other Taxes 505,815 497,514 - - 505,815 497,514

Unrestricted Investment Earnings 42,828 52,049 27,018 38,540 69,846 90,589

Grants and Contributions Not

to Specific Programs 14,600 12,500 - - 14,600 12,500

Miscellaneous 354,237 337,501 436,254 252,244 790,491 589,745

Total Revenues 8,839,872 7,816,496 10,809,133 9,460,362 19,649,005 17,276,858

Expenses

General Administration 1,448,998 1,287,606 - - 1,448,998 1,287,606

Public Safety 4,094,734 4,024,670 - - 4,094,734 4,024,670

Public Transportation 1,503,894 1,282,871 - - 1,503,894 1,282,871

Culture and Recreation 2,335,706 1,966,105 - - 2,335,706 1,966,105

Health and Welfare 64,250 155,816 - - 64,250 155,816

Conservation and Development - 14,093 - - - 14,093

Interest and Fiscal Charges 282,766 285,599 - - 282,766 285,599

Water - - 5,248,655 4,736,955 5,248,655 4,736,955

Sanitation - - 1,941,304 1,721,707 1,941,304 1,721,707

Airport - - 449,431 279,041 449,431 279,041

Total Expenses 9,730,348 9,016,760 7,639,390 6,737,703 17,369,738 15,754,463

Change in Net Position Before

Transfers (890,476) (1,200,264) 3,169,743 2,722,659 2,279,267 1,522,395

Transfers 1,975,000 1,375,000 (1,975,000) (1,375,000) - -

Change in Net Position 1,084,524 174,736 1,194,743 1,347,659 2,279,267 1,522,395

Net Position - Beginning 12,542,766 12,316,533 13,116,317 12,876,676 25,659,083 25,193,209

Prior Period Adjustments (54,359) 51,497 731,433 (1,108,018) 677,074 (1,056,521)

Net Position at September 30, 2013 13,572,931$ 12,542,766$ 15,042,493$ 13,116,317$ 28,615,424$ 25,659,083$


Activities Activities Total

CITY OF UVALDE

Uvalde, Texas


9

Expenses Program Revenues2013 2012 2013 2012

Expenses

General Administration 1,448,998$ 1,287,606$ 144,144$ 146,238$

Public Safety 4,094,734 4,024,670 374,934 442,352

Public Works 1,503,894 1,282,871 6,955 4,422

Culture and Recreation 2,335,706 1,966,105 870,278 334,491

Health and Welfare 64,250 155,816 - -

Conservation and Development - 14,093 - 31,728

Bond Interest 281,966 284,400 - -

Fiscal Agent Fees 800 1,200 - -

9,730,348$ 9,016,761$ 1,396,311$ 959,231$

2013 2013 2012 2012

Revenues % Revenues %

Revenue by Source

Governmental Activities 865,523$ 10% 846,929$ 11%

Operating Grants and Contribution 530,788 6% 112,302 1%

Maintenance and Operations Taxes 3,122,361 35% 2,744,766 35%

Sales Taxes 2,663,942 30% 2,472,197 32%

Franchise Taxes 642,316 7% 656,515 8%

Other Taxes 505,815 6% 497,514 6%

Unrestricted Investment Earnings 42,828 0% 52,049 1%

Penalty and Interest 97,462 1% 84,223 1%

Grants and Contributions Not

Restricted to Specific Programs 14,600 0% 12,500 0%

Miscellaneous 354,237 4% 337,501 4%

8,839,872$ 100% 7,816,496$ 100%

Expense and Program Revenue - Governmental Activites

For the most part, expenses closely paralleled the prior year levels or were slightly higher than the

previous year. The largest increase occurred in supplies. Some of the reasons for the increased

expenses in supplies were increased repairs and maintenance to the water and sewer systems.

CITY OF UVALDE

Uvalde, Texas


10

Business-Type Activities

Business-type activities increased the City of Uvalde, Texas’ net position by $1,194,743. The increase

in the business-type activities was due mainly to higher billings and collections for the Utility and

Sanitation funds.

Expenses Program Revenues Grants2013 2012 2013 2012 2013 2012

Utilities 5,248,655$ 4,736,955$ 7,718,596$ 5,697,533$ -$ -$

Sanitation 1,941,304 1,721,707 2,605,338 2,185,857 15,000 -

Airport 449,431 279,041 - - 6,927 1,286,188

Total Business-Type Activities 7,639,390$ 6,737,703$ 10,323,934$ 7,883,390$ 21,927$ 1,286,188$

2013 2013 2012 2012

Revenues % Revenues %

General Revenue by Source

Unrestricted Investment Earnings 27,018$ 6% 38,540$ 8%

Miscellaneous 436,254 94% 252,244 54%

463,272$ 100% 290,784$ 63%

Expense and Program Revenue - Business-Type Activites

FUND FINANCIAL ANALYSIS

As noted earlier, the City of Uvalde uses fund accounting to ensure and demonstrate compliance with

finance-related legal requirements.

Governmental funds. The focus of the City of Uvalde’s governmental funds is to provide

information on 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 a government’s net resources available for spending at the end of the

fiscal year.

As of the end of the current fiscal year, the City of Uvalde’s governmental funds reported a combined

ending fund balance of $5,099,359, an increase of $543,131 from the prior year. Approximately

ninety-eight (98) percent constitutes unassigned fund balance, which is available for spending at the

government’s discretion. The remainder of fund balance is restricted to indicate that is not available

for new spending because it has already been reserved for debt and capital construction.

CITY OF UVALDE

Uvalde, Texas


11

The General fund is the chief operating fund of the City of Uvalde. At the end of the current fiscal

year, unassigned fund balance for the General fund was $2,669,600. As a measure of the General

fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to

total expenditures. Unassigned fund balance represents approximately 33 percent of total general fund

expenditures.

During the current fiscal year, the unassigned fund balance of the City of Uvalde’s General fund

increased by $481,241.

The Debt Service Fund ended the year with a fund balance of $1,056,664, which represents an increase

of $182,262 for the year. Although property tax revenues received during the year were lower than

budgeted, no transfers were necessary which contributed to a positive net change in fund balance.

The Capital Projects Fund saw a reduction from fund balance of $66,757 due to completion of the

SSgt. Willie De Leon Civic Center renovation project.

Proprietary funds

The City of Uvalde’s Proprietary funds provide the same type of information found in the

governmental-wide financial statements, but in more detail. Unrestricted net position of the Utility

fund at the end of the year were $1,904,227 and that for the Sanitation fund amounted to $747,628.

The increase in net position for all proprietary funds was $1,926,176. Utility fund net position

increased by $1,351,745, Sanitation fund increased by $818,301 and Airport net position decreased by

$(243,870). Other factors concerning the finances of these three funds have already been addressed in

the discussion of the City of Uvalde’s business-type activities.

General Fund Budgetary Highlights

Each year the City of Uvalde spends a significant amount of time developing the annual budget. Staff

analyzes both prior year actual results and the needs for the upcoming year in order to determine the

final budget. Throughout the year, the budget is also amended to reflect changes in expectations for

revenues and expenses based on actual results during the year. The original and the final budget figures

reflect the differences between the two budgets.

Actual revenues and expenses compared to the budget reflect more favorable results than anticipated.

Actual revenues were $69,196 more than budgeted. Actual expenditures were $336,132 less than

budgeted. Transfers from the general fund to other funds were exactly as budgeted. The budget

projected an increase in fund balance of $266,840 while the final actual result was an increase of

$468,061 to General Fund Balance as of 9/30/2013.

CITY OF UVALDE

Uvalde, Texas


12

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The City of Uvalde’s net investment in capital assets for its governmental and business type activities

as of September 30, 2013 amounts to $39,445,168. This investment in capital assets includes land,

building and system, improvements, machinery and equipment, park facilities, roads, highways, and

bridges. The City’s investment in capital assets for the current year decreased by approximately (3%).

The decrease was attributed an increase in depreciation expense.

Activities Activities

2013 2012 2013 2012 2013 2012

Land 884,245$ 884,245$ 3,364,461$ 3,364,462$ 4,248,706$ 4,248,707$

Construction in Progress 801,914 4,500,061 - 1,648,579 801,914 6,148,640

Buildings 2,653,906 2,747,104 2,526,987 894,031 5,180,893 3,641,135

Improvements Other than

Buildings 5,937,397 1,658,789 16,413,224 17,341,016 22,350,621 18,999,805

Machinery and Equipment 476,239 588,170 1,070,793 1,302,310 1,547,032 1,890,480

Infrastructure 5,316,002 5,682,114 - - 5,316,002 5,682,114

Total 16,069,703$ 16,060,483$ 23,375,465$ 24,550,398$ 39,445,168$ 40,610,881$

Capital Assets

(net of depreciation)


Total

Additional information on the City of Uvalde, Texas’s capital assets can be found in note IV.D on page

42-44 of this report.

Long-term Debt

At the end of the current fiscal year, the City of Uvalde had total bonded debt outstanding of

$19,695,000. Of this amount, $6,545,000 comprises debt solely backed by the full faith and credit of

the City of Uvalde, Texas (the “City”). The remainder of the City’s debt is comprised of certificates of

obligation backed by the full faith and credit of the City and further secured by a lien on and pledge of

the net revenues of the City’s utility system.

2013 2012 2013 2012 2013 2012

Bonded Debt 8,115,000$ 8,500,000$ 11,580,000$ 12,845,000$ 19,695,000$ 21,345,000$

Outstanding DebtCertificate of Obligations and Revenue Bonds

Governmental Business-TypeTotalActivities Activities

CITY OF UVALDE

Uvalde, Texas


13

The City of Uvalde’s total bonded debt decreased by $1,650,000 during the current fiscal year.

The City of Uvalde Texas and its Utility fund maintain an “A/stable” rating from Standard and Poor’s.

Additional information on the City of Uvalde, Texas’ long-term debt can be found in note IV.G on

pages 47 to 49.

ECONOMIC FACTORS AND NEXT FISCAL YEAR’S BUDGET AND RATES

One of the large economic factors affecting the City of Uvalde has been the Eagle Ford Shale oil and

gas exploration and production. Although to-date no exploration and production has occurred in the

City or Uvalde County, the City is positioned as the largest city nearest too some of the activity and

has benefited from geographic proximity to the Eagle Ford Shale. This has resulted in a positive

financial effect on the City’s sales taxes, businesses, hotel and motels, and real estate.

Water and the continuing drought have also been a large economic factor in the City of Uvalde. The

City is working towards a permit for alternate source water and continuing to study both sources of

water and the current utility rate structure. Conservation efforts continue to be a key factor in any

future water plans.

During the 2014 budget year, the primary factors affecting the budget continue to be public safety;

replacement of aging infrastructure, and investment in capital assets. The City had a very slight

decrease in total property taxes of $.0044 over the prior year levy. This was a result of a decrease in

the maintenance and operations tax levy of $0.0126. The maintenance and operations tax adopted was

the effective rate and it was slightly less than last year’s rate due to an increase in taxable value of

properties on the City’s tax rolls. At the same time, the interest and sinking portion of ad valorem

taxes increased by $0.0079 in order to meet current year debt payment obligations.

REQUEST FOR INFORMATION

This financial report is designated to provide a general overview of the City of Uvalde, Texas’ finances

for all those with an interest in the government’s finances. Questions concerning any of the

information provided in this report or requests for additional financial information should be addressed

to the Finance Department, City of Uvalde, P.O. Box 799, Uvalde, Texas 78802.

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements

CITY OF UVALDESTATEMENT OF NET POSITION

SEPTEMBER 30, 2013

GovernmentalActivities Activities

TypeBusiness

Total

Primary Government

ASSETS3,917,4944,569,888 8,487,382Cash and Cash Equivalents $ $ $

175,0001,004,837 1,179,837Investments - Current1,987,932972,760 2,960,692Receivables (net of allowance for uncollectibles)

696,000- 696,000Due from Others(142,230)142,230 -Internal Balances

49,17453,422 102,596Inventories45,12725 45,152Deferred charges

Capital Assets:3,364,461884,245 4,248,706 Land

-5,316,002 5,316,002 Infrastructure, net2,526,9872,653,906 5,180,893 Buildings, net

16,413,2245,937,397 22,350,621 Improvements other than Buildings, net1,070,793476,239 1,547,032 Machinery and Equipment, net

-801,914 801,914 Construction in Progress

Total Assets 22,812,865 30,103,962 52,916,827

LIABILITIES343,390622,017 965,407Accounts Payable58,24947,694 105,943Accrued Interest Payable

392,827- 392,827Other Current LiabilitiesNoncurrent Liabilities

863,406579,486 1,442,892 Due Within One Year13,403,5977,990,737 21,394,334 Due in More Than One Year

Total Liabilities 9,239,934 15,061,469 24,301,403

NET POSITION10,810,8037,918,932 18,729,735Net Investment in Capital Assets

Restricted for:1,268,7691,056,664 2,325,433 Restricted for Debt Service

-144,055 144,055 Restricted for Capital Projects-1,036,179 1,036,179 Restricted for Endowment

2,962,9213,417,101 6,380,022Unrestricted Net Position

Total Net Position 13,572,931 15,042,493 28,615,424$ $ $

The notes to the financial statements are an integral part of this statement.

14

CITY OF UVALDESTATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2013

Expenses ServicesCharges for

ContributionsGrants andOperating

Program Revenues

Primary Government:

GOVERNMENTAL ACTIVITIES:144,1441,448,998 -General Government $ $ $344,1464,094,734 30,788Public Safety

6,9551,503,894 -Public Works-64,250 -Health and Welfare

370,2782,335,706 500,000Culture and Recreation-281,966 -Bond Interest-800 -Fiscal Agent's Fees

9,730,348 865,523 530,788Total Governmental Activities:

BUSINESS-TYPE ACTIVITIES:7,718,5965,248,655 - Utility Fund2,605,3381,941,304 15,000 Sanitation Fund

-449,431 6,927 Airport Fund7,639,390 10,323,934 21,927Total Business-Type Activities:

TOTAL PRIMARY GOVERNMENT: 17,369,738 11,189,457 552,715$ $ $

General Revenues:Taxes:

Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt ServiceSales TaxesFranchise TaxesOther TaxesPenalty and Interest

Grants and Contributions Not RestrictedMiscellaneous RevenueInvestment Earnings

Transfers In (Out)Total General Revenues and Transfers

Net Position - Beginning


Net Position--EndingPrior Period Adjustment


15

Net (Expense) Revenue and

Activities ActivitiesBusiness-type

TotalGovernmental

Changes in Net PositionPrimary Government

-(1,304,854) (1,304,854)$ $ $-(3,719,800) (3,719,800)-(1,496,939) (1,496,939)-(64,250) (64,250)-(1,465,428) (1,465,428)-(281,966) (281,966)-(800) (800)

(8,334,037) - (8,334,037)

2,469,941- 2,469,941679,034- 679,034

(442,504)- (442,504)

- 2,706,471 2,706,471

(8,334,037) 2,706,471 (5,627,566)

-2,165,862 2,165,862-956,499 956,499-2,663,942 2,663,942-642,316 642,316-505,815 505,815-97,462 97,462-14,600 14,600

436,254354,237 790,49127,01842,828 69,846

(1,975,000)1,975,000 -9,418,561 (1,511,728) 7,906,833

1,084,52412,542,766

13,572,931$

1,194,74313,116,317

15,042,493$

2,279,26725,659,083

28,615,424$(54,359) 731,433 677,074

16

Governmental Fund Financial Statements

CITY OF UVALDEBALANCE SHEET

GOVERNMENTAL FUNDSSEPTEMBER 30, 2013

GeneralFund Fund

Debt ServiceFund

ProjectsCapital

ASSETS1,056,664 2,966,724 364,263 Cash and Cash Equivalents $ $ $

- - - Investments - Current113,442 254,757 - Taxes Receivable

(5,355)(12,714) - Allowance for Uncollectible Taxes (credit) - 620,608 - Receivables (Net) - 377,653 - Special Assessments Receivable, net - - - Intergovernmental Receivables - 151,349 - Due from Other Funds - 53,422 - Inventories - 25 - Deferred Charges

Total Assets 4,411,824 1,164,751 364,263 $ $ $

LIABILITIES - 176,673 220,208 Accounts Payable $ $ $ - 220,777 - Wages and Salaries Payable - 55,189 - Compensated Absences Payable - - - Due to Other Funds

108,087 1,236,163 - Deferred Revenues

Total Liabilities 1,688,802 108,087 220,208

FUND BALANCES

Nonspendable Fund Balance: - 53,422 - Inventories - - - Endowment Principal

Restricted Fund Balance: - - 144,055 Capital Acquisiion and Contractural Obligation

1,056,664 - - Retirement of Long-Term DebtAssigned Fund Balance:

- - - Other Assigned Fund Balance - 2,669,600 - Unassigned Fund Balance

Total Fund Balances 2,723,022 1,056,664 144,055

$ 4,411,824 $ 1,164,751 $ 364,263 Total Liabilities and Fund Balances


17

OtherFunds Funds

GovernmentalTotal

182,237 4,569,888 $ $1,004,837 1,004,837

- 368,199 - (18,069)

36 620,644 - 377,653

1,986 1,986 - 151,349 - 53,422 - 25

1,189,096 7,129,934 $ $

4,359 401,240 $ $ - 220,777 - 55,189

9,119 9,119 - 1,344,250

13,478 2,030,575

- 53,422 1,036,179 1,036,179

- 144,055 - 1,056,664

139,439 139,439 - 2,669,600

1,175,618 5,099,359

$ $ 7,129,934 1,189,096

18

CITY OF UVALDERECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE

STATEMENT OF NET POSITIONSEPTEMBER 30, 2013

5,099,359$Total Fund Balances - Governmental Funds

16,069,703Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds. The net effect of including the beginning balances for capital assets (net of depreciation) and additions and reductions to capital assets in the governmental activities is to increase net position.

(8,562,728)Long-term liabilities, including bonds payable are not due and payable in the current period, and, therefore are not reported as liabilities in the funds. The net effect of this consolidation is to (decrease) net position.

350,130Property Taxes Receivable unavailable to pay for current period expenditures are deferred in the funds (net of allowance). The net effect of the current year property taxes receivable is to increase net position.

616,467Court Fines Receivable are unavailable to pay for current period expenditures and are therefore deferred in the funds. The net effect is to increase net position.

13,572,931$Net Position of Governmental Activities


19

CITY OF UVALDESTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2013

FundGeneral

FundDebt Service

FundProjectsCapital

REVENUES:Taxes:

2,200,635 972,122 -Property Taxes $ $ $2,663,942 - -General Sales and Use Taxes

626,392 - -Franchise Tax17,140 - -Other Taxes69,489 27,973 -Penalty and Interest on Taxes77,677 - -Licenses and Permits14,600 - 500,000Intergovernmental Revenue and Grants

573,481 - -Charges for Services200,622 - -Fines

6,956 - -Special Assessments29,744 11,315 578Investment Earnings74,486 - -Rents and Royalties

272,070 - 50Other Revenue

Total Revenues 6,827,234 1,011,410 500,628

EXPENDITURES:Current:

1,351,558 - -General Government3,918,301 - -Public Safety1,017,420 - 5,380Public Works

64,250 - -Health and Welfare1,592,814 - -Culture and Recreation

Debt Service:78,289 500,000 -Bond Principal5,572 324,348 -Bond Interest

- 800 -Fiscal Agent's FeesCapital Outlay:

173,778 - 878,995Capital Outlay

Total Expenditures 8,201,982 825,148 884,375

Excess (Deficiency) of Revenues Over (Under) Expenditures

(1,374,748) 186,262 (383,747)

OTHER FINANCING SOURCES (USES): - - 115,000Capital-related Debt Issued (Certificate of Oblig)

2,044,800 - 201,990Transfers In(201,990) - -Transfers Out (Use)

Total Other Financing Sources (Uses) 1,842,810 - 316,990

Net Change in Fund Balances 468,062 186,262 (66,757)Fund Balance - October 1 (Beginning) 2,245,623 870,402 210,812Prior Period Adjustment 9,337 - -

Fund Balance - September 30 (Ending) $ 2,723,022 $ 1,056,664 $ 144,055


20

OtherFunds Funds

GovernmentalTotal

3,172,757-$ $2,663,942-

642,31615,924505,815488,67597,462-77,677-

545,38830,788573,481-207,4106,788

6,956-42,8281,19174,486-

279,7507,630

550,996 8,890,268

1,356,5835,0253,962,79144,4901,022,800-

64,250-2,014,572421,758

578,289-329,920-

800-

1,052,773-

471,273 10,382,778

79,723 (1,492,510)

115,000-2,256,1529,362(281,152)(79,162)

(69,800) 2,090,000

9,923 597,4901,229,391 4,556,228

(63,696) (54,359)

$ 1,175,618 $ 5,099,359

21

CITY OF UVALDERECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2013

597,490$Total Net Change in Fund Balances - Governmental Funds

1,607,931Current year capital outlays and long-term debt principal payments are expenditures in the fund financial statements, but they should be shown as increases in capital assets and reductions in long-term debt in the government-wide financial statements. Capital outlays $1,079,721; current year bond payments $500,000; Lease/Loan Payments $94,189;bond premium(discount) amortization expense $39,889; interst payable $9,132 and proceeds from USDA certificates of obligation of $(115,000) The net effect of removing the 2013 capital outlays and debt principal payments is to increase the change in net position.

(1,070,501)Depreciation is not recognized as an expense in governmental funds since it does not require the use of current financial resources. The net effect of the current year's depreciation is to (decrease) the change in net position.

(50,396)Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reproted in the Statement of Activities when earned. The net effect of these reclassifications and recognitions is to (decrease) net position.

1,084,524$ Change in Net Position of Governmental Activities


22

Proprietary Fund Financial Statements


PROPRIETARY FUNDSSEPTEMBER 30, 2013

Business-Type Activities - Enterprise Funds

TotalUtility Sanitation Airport EnterpriseFund Fund Fund Funds

ASSETSCurrent Assets:

2,795,8691,121,625 - 3,917,494Cash and Cash Equivalents $ $ $ $-175,000 - 175,000Investments - Current

578,4251,263,054 146,453 1,987,932Accounts Receivable-Net of Uncollectible Allowance-- 696,000 696,000Due from Others-215,412 - 215,412Due from Other Funds-49,174 - 49,174Inventories-45,127 - 45,127Prepaid Items

2,869,392 3,374,294 842,453 7,086,139Total Current AssetsNoncurrent Assets:

Capital Assets:322,1762,946,133 96,152 3,364,461Land Purchase and Improvements25,760365,614 3,400,668 3,792,042Buildings

(21,205)(224,369) (1,019,481) (1,265,055) Accumulated Depreciation - Buildings5,745,37321,397,898 5,098,488 32,241,759Improvements other than Buildings

(2,273,755)(11,530,785) (2,023,995) (15,828,535) Accumulated Depreciation - Other Improvements4,879,6522,134,957 591,241 7,605,850Machinery and Equipment

(4,162,902)(1,902,707) (469,448) (6,535,057) Accumulated Depreciation - Machinery & Equipment13,186,741 4,515,099 5,673,625 23,375,465Total Noncurrent Assets

Total Assets 16,056,133 7,889,393 6,516,078 30,461,604


23


PROPRIETARY FUNDSSEPTEMBER 30, 2013


TotalUtility Sanitation Airport EnterpriseFund Fund Fund Funds

LIABILITIESCurrent Liabilities:

96,682125,352 55,114 277,148Accounts Payable22,69343,549 - 66,242Wages and Salaries Payable12,48320,734 - 33,217Compensated Absences Payable

-- 357,642 357,642Due to Other Funds20,91620,703 16,630 58,249Accrued Interest Payable

-- 50,026 50,026Notes Payable - Current280,000405,000 - 685,000Bonds Payable - Current95,163- - 95,163Capital Leases Payable - Current94,235298,592 - 392,827Other Current Liabilities

913,930 622,172 479,412 2,015,514Total Current LiabilitiesNonCurrent Liabilities:

3,315,0005,880,000 1,700,000 10,895,000Bonds Payable - Noncurrent-- 686,661 686,661Notes Payable - Noncurrent

(66,666)(229,990) (35,463) (332,119)Unamortized Premiums (Discounts) on Bonds186,350- - 186,350Capital Leases Payable - Noncurrent

1,967,705- - 1,967,705Other Noncurrent Liabilities5,650,010 5,402,389 2,351,198 13,403,597Total Noncurrent Liabilities

Total Liabilities 6,563,940 6,024,561 2,830,610 15,419,111

NET POSITION712,2916,826,110 3,272,402 10,810,803Net Investment in Capital Assets404,913761,856 102,000 1,268,769Restricted for Debt Service747,6281,904,227 311,066 2,962,921Unrestricted Net Position

Total Net Position 9,492,193 1,864,832 3,685,468 15,042,493$ $ $ $


24

CITY OF UVALDESTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2013


UtilityFund Fund

SanitationFund

AirportFunds

EnterpriseTotal

OPERATING REVENUES:-4,176,590 - 4,176,590Charges for Water Services $ $ $ $-1,415,143 - 1,415,143Charges for Gas Services-2,126,863 - 2,126,863Charges for Sewerage Service

2,605,338- - 2,605,338Sanitation Charges for Services-- 188,220 188,220Rents and Royalties

67,785169,835 10,414 248,034Other Revenue

Total Operating Revenues 7,888,431 2,673,123 198,634 10,760,188

OPERATING EXPENSES:698,3451,099,542 - 1,797,887Personnel Services - Salaries and Wages186,349373,134 - 559,483Personnel Services - Employee Benefits74,381209,581 500 284,462Purchased Professional & Technical Services4,94922,094 2,585 29,628Purchased Property Services

107,604732,459 1,757 841,820Other Operating Expenses275,4821,591,169 27,142 1,893,793Supplies442,090794,761 296,950 1,533,801Depreciation

Total Operating Expenses 4,822,740 1,789,200 328,934 6,940,874Operating Income (Loss) 3,065,691 883,923 (130,300) 3,819,314

NON-OPERATING REVENUES (EXPENSES):15,000- 6,927 21,927Grants25,1821,836 - 27,018Investment Earnings

(152,104)(425,915) (120,497) (698,516)Interest Expense - Non-OperatingTotal Non-operating Revenue (Expenses) (424,079) (111,922) (113,570) (649,571)

Income (Loss) Before Transfers 2,641,612 772,001 (243,870) 3,169,743

(125,000)(1,850,000) - (1,975,000)Transfers Out

Change in Net PositionTotal Net Position - October 1 (Beginning)Prior Period AdjustmentTotal Net Position - September 30 (Ending)

791,6128,140,448

560,133$ 9,492,193

647,0011,046,531

171,300$ 1,864,832

(243,870)3,929,338

-$ 3,685,468

1,194,74313,116,317

731,433$ 15,042,493


25

CITY OF UVALDE

Statement of Cash Flows

Proprietary Funds

For The Year Ended September 30, 2013

Business Type Activities - Enterprise Funds

Total

Utility Sanitation Airport Enterprise

Fund Fund Fund Funds

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from Customers and Users 7,664,085$ 2,497,011$ 142,269$ 10,303,365$

Payments to Suppliers (2,562,686) (448,816) (264,664) (3,276,166)

Payments to Employees (1,462,726) (881,398) - (2,344,124)

Net Cash Provided/(Used) by Operating Activities 3,638,673 1,166,797 (122,395) 4,683,075

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Operating Grant - 15,000 6,927 21,927

Transfers to other funds (1,850,000) (125,000) (365,716) (2,340,716)

Net Cash Provided/(Used) by Non-Capital and Related

Financing Activities (1,850,000) (110,000) (358,789) (2,318,789)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Principal Payment on Bonds, Notes and Capital Leases (720,924) (350,071) (58,329) (1,129,324)

Proceeds from Notes payable - - 710,231 710,231

Interest and Fiscal Charges (449,664) (153,455) (102,000) (705,119)

Purchases of Capital Assets (181,548) (108,605) (68,718) (358,871)

Net Cash Provided/(Used) by Capital and

Related Financing Activities (1,352,136) (612,131) 481,184 (1,483,083)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of Investments (175,000) - - (175,000)

Interest Received 1,836 25,182 - 27,018

Net Cash Provided/(Used) by Investment Activities (173,164) 25,182 - (147,982)

Net Increase/(Decrease) in Cash Equivalents 263,373 469,848 - 733,221

Cash and Cash Equivalents - October 1 858,252 2,326,021 - 3,184,273

Cash and Cash Equivalents - September 30 1,121,625$ 2,795,869$ -$ 3,917,494$

Reconciliation of Operating Income (Loss) to Net Cash

Provided/(Used) By Operating Activities:

Operating Income/(Loss) 3,065,691$ 883,923$ (130,300)$ 3,819,314$

Adjustments to Reconcile Operating Income to

Net Cash Provided (Used) by Operating Activities:

Depreciation 794,761 442,090 296,950 1,533,801

Decrease (Increase) Accounts Receivable (248,085) (176,112) (56,365) (480,562)

Decrease(Increase in Prepaid Items (45,127) - - (45,127)

Decrease(Increase in Intergovernmental Receivable - - 24,000 24,000

Decrease (Increase) in Inventory 897 - - 897

Increase (Decrease) in Sales Tax Payable (2,932) - - (2,932)

Increase (Decrease) in Accounts Payable 39,779 90,775 (256,680) (126,126)

Increase (Decrease) in Accrued Wages 2,426 (1,319) - 1,107

Increase (Decrease) in Compensated Absences 7,524 4,615 - 12,139

increase (Decrease) other liabilities - (110,021) - (110,021)

Increase(Decrease) in Customer Meter Deposits 23,739 32,846 - 56,585

Total Adjustments 572,982 282,874 7,905 863,761

Net Cash Provided by Operating Activities 3,638,673$ 1,166,797$ (122,395)$ 4,683,075$

The accompanying notes to financial statements form an integral part of this statement.

26

Fiduciary Funds


FIDUCIARY FUNDSSEPTEMBER 30, 2013

AgencyFunds

ASSETS16,625Cash and Cash Equivalents $

Total Assets 16,625$

LIABILITIES16,625Due to Others $

Total Liabilities 16,625$


27

CITY OF UVALDE

Uvalde, Texas

NOTES TO FINANCIAL STATEMENTS

September 30, 2013

28

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. REPORTING ENTITY

The City of Uvalde, Texas, was incorporated in 1889, and adopted its Home Rule Charter on

September 18, 1934. The City operates under a charter, Manager-Council type of government

and provides the following services: public safety (fire, ambulance, and law enforcement),

public works (streets), culture and recreation, legal, election functions, and general

administrative services.

B. BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE STATEMENTS AND

FUND FINANCIAL STATEMENTS

The government-wide financial statements (i.e., the statement of net position and the statement

of activities) report information on all of the nonfiduciary activities of the City. Governmental

activities, which normally are supported by taxes and intergovernmental revenues, are reported

separately from business-type activities, which rely to a significant extent on fees and charges

for support.

The statement of activities demonstrates the degree to which the direct expenses of a given

function or segments are offset by program revenu `. Direct expenses are those that are clearly

identified with a specific function or segment. 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, 2) grants and contributions that are

restricted to meeting the operational or capital requirements of a particular function or

segment. Taxes and other items not properly included among program revenues are reported

instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and

fiduciary funds, even though the fiduciary funds are excluded from the government-wide

financial statements. Major individual governmental and major individual enterprise funds are

reported as separate columns in the fund financial statements.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

29

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL

STATEMENT PRESENTATION

The government-wide financial statements are reported using the economic resources

measurement focus and the accrual basis of accounting, as are the proprietary fund and

fiduciary fund financial statements. Revenues are recorded when earned and expenses are

recorded when a liability is incurred, regardless of the timing of related cash flows. Property

taxes are recognized as revenues in the year for which they are levied. Grants and similar

items are recognized as revenue as soon as all eligibility requirements imposed by the provider

have been met.

Governmental fund financial statements are reported using the current financial resources

measurement focus and the modified accrual basis of accounting. Revenues are recognized as

soon as they are both measurable and available. Revenues are considered, to be available

when they are collectible within the current period or soon enough thereafter to pay liabilities

of the current period. For this purpose, the government considers revenues to be available if

they are collected within 60 days of the end of the current fiscal period. Expenditures

generally are recorded when a liability is incurred, as under accrual accounting. However, debt

service expenditures, are recorded only when payment is due. Compensated absences

expenditures are recognized when the benefits are earned by employees.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period

are all considered to be susceptible to accrual and so have been recognized as revenues of the

current fiscal period. Only the portion of special assessments receivable due within the current

fiscal period is considered to be susceptible to accrual as revenue of the current period. All

other revenue items are considered to be measurable and available only when cash is received

by the government.

The government reports the following major governmental funds:

The general fund is the government's primary operating fund. It accounts for all financial

resources of the general government, except those required to be accounted for in another fund.

The general fund is a budgeted fund.

The capital project fund accounts for the finanical resources to be used for activities approved

under the 2009 Series Certificate of Obligations.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

30


The debt service fund accounts for accumulation of resources and for payment of debt principal

and interest. The primary source is local property taxes levied for debt service. The debt

service fund is a budgeted fund.

The government reports the following major proprietary funds:

The utility fund accounts for the activities of the government's water, sewer, and gas

distribution operations.

The sanitation fund accounts for the activities of the government's sanitary operations.

The airport fund accounts for the activities of the government's airport operations.

Additionally, the government reports the following fund types:

The permanent trust funds are used to report resources that are legally restricted to the

extent that only earnings, not principal, may be used for purposes that support the

government programs. Earnings for the year ended September 30, 2013 totaled $1,067

and are considered unrestricted for use.

The agency fund accounts for resources held for others in a custodial capacity. The City

accounts for the police holding fund as an agency fund.

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 and other

charges between the government's water and sewer function and various other functions of the

government. Elimination of these charges would distort the direct costs and program revenues

reported for the various functions concerned.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

31


Proprietary funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and

delivering goods in connection with a proprietary fund's principal ongoing operations. The

principal operating revenues of the enterprise funds are charges to customers for sales and

services. The enterprise funds also recognize as operating revenue the portion of tap fees

intended to recover the cost of connecting new customers to the system. Operating expenses

for enterprise funds and internal service funds include the cost of sales and services,

administrative expenses, and depreciation on capital assets. All revenues and expenses not

meeting this definition are reported as nonoperating revenues and expenses. Under the full

accrual method of accounting revenues are recorded when earned and expenses are recorded at

the time liabilities are incurred.

D. ASSETS, LIABILITIES, AND NET POSITION OR EQUITY

1. Deposits and Investments

The City's cash and cash equivalents consist of cash on hand, demand deposits, and short-

term investments with original maturities of three months or less from the date of

acquisition.

State statutes authorize the government to invest in obligations of the U.S. Treasury.

Investments for the government are reported at fair value, based on publicly quoted prices

or the best available estimate.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

32


2. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements

outstanding at the end of the fiscal year are referred to as either "due to/from other funds"

(i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-

current portion of interfund loans). All other outstanding balances between funds are

reported as "due to/from other funds." 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, as reported in the fund financial statements, are offset by a fund

balance reserve account in applicable governmental funds to indicate that they are not

available for appropriation and are not expendable available financial resources.

3. Property Taxes

Property is appraised and a lien on such property becomes enforceable as of January 1,

subject to certain procedures for rendition, appraisal, appraisal review and judicial review.

Traditionally, property taxes are levied October 1, of the year in which assessed or as soon

thereafter as practicable. Taxes are due and payable when levied since that is when the

City bills the taxpayers. The City begins to collect the taxes as soon as the taxpayers are

billed. The appraisal of property values is performed by the Uvalde County Appraisal

District for the City.

4. Inventories

All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of

governmental funds are recorded as expenditures when consumed rather than when

purchased.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

33


5. Restricted Net Position

The restricted net position in the proprietary funds at September 30, 2013 totaled

$1,268,769 for debt service.

The restricted net position in the governmental activities at September 30, 2013 totaled

$1,056,664 for debt service, $144,055 for construction and $1,036,179 for endowment

principal.

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 two years. Such assets are recorded at

historical cost or estimated historical cost if purchased or constructed. Donated capital

assets are recorded at estimated fair market value at the date of donation.

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.

Major outlays for capital assets and improvements are capitalized as projects are

constructed. Interest incurred during the construction phase of capital assets of business-

type activities is included as part of the capitalized value of the assets constructed.

Property, plant, and equipment of the primary government are depreciated using the

straight line method over the following estimated useful lives:

Assets Years

Buildings 50

Building Improvements 20

Public Domain Infrastructure 50

System Infrastructure 30

Vehicles and Equipment 5

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

34


7. Compensated Absences

It is the government's policy to permit employees to accumulate earned but unused

vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave

since the government does not have a policy to pay any amounts when employees separate

from service with the government. All vacation pay is accrued when incurred in the

government-wide and proprietary fund financial statements. A liability for these amounts

is reported in governmental funds only if they have matured, and the benefits have been

earned by employees. Compensated absences are generally liquidated by the general fund,

utility fund and sanitation fund and are presented as current liabilities since all leave is

required to be taken by the end of the calendar year.

8. Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fund

financial statements, long-term debt and other long-term obligations are reported as

liabilities in the applicable governmental activities, business-type activities, or proprietary

fund type statement of net position. Bond premiums and discounts, as well as issuance

costs, are deferred and amortized over the life of the bonds using the effective interest

method. Bonds payable are reported net of the applicable bond premium or discount.

Bond issuance costs are reported as deferred charges and amortized over the term of the

related debt.

In the fund financial statements, governmental fund types recognize bond premiums and

discounts, as well as bond issuance costs, during the current period. The face amount of

debt issued is reported as other financing sources. Premiums received on debt issuances

are reported as other financing sources while discounts on debt issuances are reported as

other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds

received, are reported as debt service expenditures.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

35


9. 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 either a commitment

(committed fund balance) or an assignment ( assigned fund balance).

Nonspendable

Amounts not available for appropriation or legally earmarked for a specific use. Examples

include inventories, prepaid items, and deferred expenditures.

Restricted

Amounts that have been legally separated for a specific purpose; such as, grants, capital

acquisition from bond proceeds and long-term debt.

Committed

Amounts that require Council action to be used for a specific purpose; such as, construction

improvements not funded by bond proceeds. Formal action by City Council, which

consists of majority approval of an ordinance, to commit funds must occur prior to fiscal

year end and can only be modified or removed by the same formal action. Once adopted,

the limitaion imposed by the ordinance remains in place until a similar action is taken (the

adoption of another ordinance) to remove or revise the limitation.

Assigned

Amounts that do not require Council approval but are intended to be used for a specific

purpose, as determined by an official or body to which the Council has delegated authority;

such as, the Finance Director or City Manager. The governing council (council) has by

resolution authorized the Finance Director or City Manager 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. These amounts do not meet the criteria to be classified as restricted or committed.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

36


Unassigned

Residual amount in the general fund that is available to finance operating expenditures. In

other funds, this classification is used only to report a deficit balance resulting from

overspending for specific purposes for which amounts had been restricted, committed, or

assigned.

10. Spending Order

Fund balance amounts that are restricted, committed, or assigned are considered to have

been spent when an expenditure is incurred for the respective purpose. If an expenditure is

incurred that meets the criteria in more than one fund balance category, then the City

considers that fund balance is relieved in the following order: restricted, committed,

assigned, and then unassigned.

11. Deficit Fund Balance

The Joint Drug enforcement grant and the Local Border Security Program reported deficit

fund balance of $332 and $6,801, respectively. As of September 30, 2013 the City plans to

finance the deficit with transfers from the General Fund.

12. Restricted/Unrestricted Resources

Under the terms of grant agreements, the City funds certain programs by a combination of

specific cost-reimbursement grants and general revenues. Thus, when program

expenditures are incurred, there are both restricted and unrestricted resources available to

finance the program. It is the City’s policy to first apply cost-reimbursement grant

(restricted) resources to such programs and then general revenues.

13. Estimates

The preparation of the financial statements in conformity with generally accepted

accounting principles requires management to make estimates and assumptions that affect

certain reported amounts and disclosures. Accordingly, actual results could differ from

those estimates. Management’s estimates were considered for depreciation, estimated

useful lives, and allowance for doubtful accounts.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

37

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL

STATEMENTS

Explanation of certain differences between the governmental fund balance sheet and the

government-wide statement of net assets.

The governmental fund balance sheet includes reconciliation between fund balance - total

governmental funds and net assets - governmental activities as reported in the government-wide

statement of net assets. One element of that reconciliation explains that long-term liabilities,

including bonds payable, are not due and payable in the current period and therefore are not

reported in the funds. The details of this $8,562,728 reconciling item are as follows:

Capital Leases Payable $ 16,425 Loans Payable

153,450

Bonds Payable

8,345,159

Accrued Interest Payable

47,684

$ 8,562,728

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

The governmental fund balance sheet includes reconciliation between fund balance - total

governmental funds and net assets – governmental activities as reported in the government-wide

statement of net assets. One element of that reconciliation explains that Property taxes receivable

unavailable to pay for current period expenditures are deferred in the funds. The details of this

$350,130 difference are as follows:

Property Taxes Receivable $ 368,199 Allowance for Doubtful Accounts

(18,069)

Net

$ 350,130

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

38

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)

The governmental fund balance sheet includes reconciliation between fund balance – total

governmental funds and net assets – governmental activities as reported in the government-wide

statement of net assets. One element of that reconciliation explains that other long-term assets are

not available to pay for current period expenditures are deferred in the funds. The details of this

$616,467 difference are as follows:

Court Fines Receivable $ 3,823,982 Allowance for Doubtful Accounts

(3,207,515)

Net

$ 616,467

Budgetary Information

The City Manager has been authorized by the council to prepare the budget. The budget is

adopted on budgetary basis in conformity with generally accepted accounting principles for the

general fund, debt service fund, hotel/motel fund and the police foreiture fund. After the budget is

prepared, it is reviewed by the City Council. The budget is adjusted by the City Council if desired.

Then a final budget is prepared by the City Manager. A public hearing is held on the budget by the

City Council. Before determining the final budget, the City Council may increase or decrease the

amounts requested by the various departments or citizens. Amounts finally budgeted may not

exceed the estimate of revenues and available cash. Appropriations lapse at year end.

When the budget is adopted by the City Council, the City Manager is responsible for monitoring

the expenditures of the various departments of the City to prevent expenditures from exceeding

budgeted appropriations and for keeping the members of the City Council advised of the

conditions of the various funds and accounts.

The appropriated budget is prepared by fund, function, and department. The government's

department heads may make transfers of appropriations within a department. Transfers of

appropriations between departments require the approval of the council. The legal level of

budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is

the department level. The council made supplemental budgetary appropriations throughout the

year. The governmental funds that have legally adopted budget are general fund, debt service

fund, hotel/motel tax, and police forefeiture fund.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

39

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase

orders, contracts) outstanding at year end are reported as reservations of fund balances and do not

constitute expenditures or liabilities because the commitments will be re-appropriated and honored

during the subsequent year.

Excess of Expenditures over Appropriations

For the year ended September 30, 2013, expenditures exceeded appropriations as follows:

Debt Service Fund – $43,281 excess in interest expense.

Police Forfeiture Fund – $5,063 excess in the public safety function due to operating costs

higher than anticipated.

General Fund – $98 excess in City Countil/Mayor’s office due to higher disbursements

than anticipated; $3,989 in debt service function due to interest costs higher than

anticipated.

IV. DETAILED NOTES ON ALL FUNDS

A. DEPOSITS AND INVESTMENTS

Legal and Contractual Provisions Governing Deposits and Investments

The Public Funds Investment Act (Government Code Chapter 2256) contains specific

provisions in the areas of investment practices, management reports and establishment of

appropriate policies. Among other things, it requires the City to adopt, implement, and

publicize an investment policy. That policy must address the following areas: (1) safety of

principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable

risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio

investments, (7) maximum average dollar-weighted maturity allowed based on the stated

maturity date for the portfolio, (8) investment staff quality and capabilities, (9) and bid

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

40

IV. DETAILED NOTES ON ALL FUNDS (Continued)

solicitation preferences for certificates of deposit. Statutes authorize the City to invest in (1)

obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas; (2) certificates

of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase

agreements, (6) bankers acceptances, (7) Mutual Funds, (8) Investment pools, (9) guaranteed

investment contracts, (10) and common trust funds. The Act also requires the City to have

independent auditors perform test procedures related to investment practices as provided by the

Act. The City is in substantial compliance with the requirements of the Act and with local

policies.

Policies Governing Deposits and Investments

In compliance with the Public Funds Investment Act, the City has adopted a deposit and

investment policy. That policy addresses the following risks:

a. Custodial Credit Risk – Deposits: in the case of deposits, this is the risk that in the event of

a bank failure, the government's deposits may not be returned to it. The City is not exposed

to custodial credit risk for its deposits are either covered by depository insurance and/or are

collateralized.

b. Custodial Credit Risk – Investments: The City’s general investment policy is to apply the

prudent-person rule: Investments are made as a prudent person would be expected to act,

with discretion and intelligence, to seek reasonable income, preserve capital, and, in

general, avoid speculative investments. The City’s investments in the bonds of U.S.

agencies were rated AAA by Standard & Poor’s and Fitch Ratings, and Aaa by Moody’s

Investors Service.

c. Interest-rate Risk – In accordance with its investment policy, the government manages its

exposure to declines in fair values by limiting the weighted average maturity of its

investment portfolio to less than twelve months.

d. Concentration of Credit Risk – The City places no limit on the amount the City may invest

in any one issuer. At year end all of the City’s investments consist of Certificates of

Deposits with maturities of twelve months.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

41


B. RECEIVABLES

Receivables as of year end for the government’s individual major funds and nonmajor funds

including the applicable allowances for uncollectible accounts, are as follows:

General Debt Service Other Enterprise Funds

Fund Fund Nonmajor Utility Sanitation Airport Total

Receivables

Taxes 254,757$ 113,442$ -$ -$ -$ -$ 368,199$

Accounts 4,141 - 36,000 1,496,357 688,766 146,453 2,371,717

Fines 616,467 - - - - - 616,467

Special Assessments 377,653 - - - - - 377,653

Gross Receivables 1,253,018 113,442 36,000 1,496,357 688,766 146,453 3,734,036

Less: Allowance

for Uncollectibles (390,367) (5,355) - (233,303) (110,341) - (739,366) Net Total Receivables 862,651$ 108,087$ 36,000$ 1,263,054$ 578,425$ 146,453$ 2,994,670$

C. DEFERRED REVENUES

Governmental funds report deferred revenue in connection with receivables for revenues that

are not considered to be available to liquidate liabilities of the current period. Governmental

funds also defer revenue recognition in connection with resources that have been received, but

not yet earned. Deferred revenues at Septembert 30, 2013 consisted of the following:

General

Fund

Debt Service

Funds

Total

All Funds Property Taxes

$ 242,043

$ 108,087

$ 350,130

Municipal Court Fines

616,467

-

616,467

Special Assesments

377,653

-

377,653

Total Deferred Revenue

$ 1,236,163

$ 108,087

$ 1,344,250

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

42


D. CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2013 was as follows:

Beginning EndingBalances Balances

October 1, September 30,2012 Additions Deductions 2013

Governmental Activities:Capital Assets, not being Depreciated:Land 884,245$ -$ -$ 884,245$ Construction in Progress 4,500,061 922,910 (4,621,057) 801,914

Total Capital Assets, not being Depreciated 5,384,306 922,910 (4,621,057) 1,686,159

Capital Assets, being Depreciated:Building and Improvements 4,869,910 - - 4,869,910 Improvements other than Buildings 3,964,091 4,648,458 - 8,612,549 Machinery, Equipment and Vehicles 4,101,059 129,410 (38,781) 4,191,688 Infrastructure 10,673,970 - - 10,673,970

Total Capital Assets, being Depreciated 23,609,030 4,777,868 (38,781) 28,348,117

Less Accumulated Depreciation for:Building and Improvements (2,122,806) (93,198) - (2,216,004) Improvements other than Buildings (2,305,302) (369,850) - (2,675,152) Machinery, Equipment and Vehicles (3,512,889) (241,341) 38,781 (3,715,449) Infrastructure (4,991,856) (366,112) - (5,357,968) Total Accumulated Depreciation (12,932,853) (1,070,501) 38,781 (13,964,573) Total Capital Assets Depreciated, Net 10,676,177 3,707,367 - 14,383,544

Total Capital Assets, Net 16,060,483$ 4,630,277$ (4,621,057)$ 16,069,703$

(Continued)

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

43


Beginning Ending

Balances Balances

October 1, September 30,

2012 Additions Deductions 2013

Business Type Activities:

Capital Assets, not being Depreciated:

Land 3,364,461$ -$ -$ 3,364,461$

Construction in Progress 1,648,579 60,218 (1,708,797) -

Total Capital Assets, not being Depreciated 5,013,040 60,218 (1,708,797) 3,364,461

Capital Assets, being Depreciated:

Building and Improvements 2,083,245 1,708,797 - 3,792,042

Improvements other than Buildings 32,215,024 26,735 - 32,241,759

Machinery, Equipment and Vehicles 7,333,933 271,917 - 7,605,850

Total Capital Assets, being Depreciated 41,632,202 2,007,449 - 43,639,651

Less Accumulated Depreciation for:

Building and Improvements (1,189,215) (75,840) - (1,265,055)

Improvements other than Buildings (14,874,011) (954,524) - (15,828,535)

Machinery, Equipment and Vehicles (6,031,624) (503,433) - (6,535,057)

Total Accumulated Depreciation (22,094,850) (1,533,797) - (23,628,647)

Total Capital Assets Depreciated, Net 19,537,352 473,652 - 20,011,004

Total Capital Assets, Net 24,550,392$ 533,870$ (1,708,797)$ 23,375,465$

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

44


Depreciation expense was charged to functions/programs of the primary government as

follows:

Governmental Activities

General Administration $ 92,415

Public Safety 131,943

Public Works 481,094

Culture and Recreation 362,846

Public Facilities 2,203

Total Depreciation Expense – Governmental Activities $ 1,070,501

Business Type Activities

Water and Sewer $ 794,758

Sanitation 442,090

Airport 296,949

Total Depreciation Expense – Business Type Activities $ 1,533,797

E. INTERFUND BALANCES AND TRANSFERS

Receivable Fund Amount Payable Fund

General Fund $ 142,230 Airport Fund

Utility Fund 215,412 Airport Fund

General Fund 9,119 Non-Major Governmental Fund

$ 366,761

The interfund balances at year end consist of payables from the airport fund to the general and

utility fund. The nonmajor governmental fund payables consist of reimbursements to the

general fund for grant subsidized expenditures related to the local border security program and

joint drug enforcement grant.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

45


The interfund transfers during the year consisted of the following amounts:

Transfers In

Transfers

General

Fund

Capital

Projects

Fund

Non-Major

Governmental

Funds

Transfers out:

General Fund $ - $ 201,990 $ -

Non-Major Governmental Fund 69,800 - 9,362

Utility Fund 1,850,000 - -

Sanitation Fund 125,000 - -

$ 2,044,800 $ 201,990 $ 9,362

F. LEASES

Operating Leases

The City leases equipment under non-cancelable operating leases. Total payments for such

leases were $35,741 for the year ended September 30, 2013. The future minimum lease

payments for these leases are as follows:

Year Ending

September 30,

Amount

2014 $ 15,417

2015 7,067

2016 3,479

2017 569

Total $ 26,532

Capital Leases

The City has entered into a lease agreement with Frost Bank as lessee for financing the

acquisition of two reel master golf course mowers. The City has also financed the acquisition

of two garbage trucks and one roll-off truck through the Sanitation Fund with Frost bank.

These lease agreements qualify as capital leases for accounting purposes and, therefore, have

been recorded at the present value of their future minimum lease payments as of the inception

date.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

46


The assets acquired through capital leases are as follows:

Governmental

Activities

Sanitation

Fund

Asset:

Vehicles, Machinery & Equipment $ 64,684 $ 545,886

Less: Accumulated Depreciation (37,733) (325,335)

Total $ 26,951 $ 220,551

The future minimum lease obligations and the net present value of these minimum lease

payments as of September 30, 2013, are as follows:

Year Ending

September 30,

Governmental

Activities

Sanitation

Fund

2014 $ 16,967 $ 103,371

2015 - 105,153

2016 - 81,350

2017 - 6,382

Total minimum lease payments 16,967 296,256

Less: amount representing interest (542) (14,744)

Present value of minimum lease payments $ 16,425 $ 281,513

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

47


G. LONG-TERM DEBT

Certificates of Obligation Bonds & Revenue Bonds

The City issued certificates of obligation to provide funds for the acquisition and construction

of major capital facilities. Certificates of Obligation have been issued for both governmental

and proprietary activities. The amounts outstanding as of September 30, 2013 are as follows.

Description

Maturity

Date Rates

Amount

Outstanding

9/30/13


Series 2006 General Obligation Bonds 2/01/2018 3.75% $ 1,260,000

Series 2009 Certificates of Obligation 2/01/2029 4.0%-4.45% 4,355,000

Series 2012 Certificates of Obligation 2/01/2051 3.25% 2,500,000

Total Governmental Activities $ 8,115,000

Business Type Activities – Utility

Series 2005 Certificates of Obligation 2/01/2028 3.75%-4.5% $ 110,000

Series 2006 General Obligation Bonds 2/01/2020 3.75% 950,000

Series 2007 Certificates of Obligation 2/01/2023 4.375% 1,225,000

Series 2010 Certificates of Obligation 2/01/2025 2.0%-4.0% 1,055,000

Series 2013 General Obligation Refunding Bonds 2/01/2028 2.0%-3.5% 2,945,000

6,285,000

Business Type Activities – Sanitation

Series 2006 General Obligation Bonds 2/01/2020 3.75% 1,390,000

Series 2010 CO’s 2/01/2030 2.0%-4.0% 2,205,000

3,595,000

Business Type Activities – Airport

Series 2012 CO’s 2/01/2032 6.0% 1,700,000

Total Business Type Activities $ 11,580,000

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

48


General Obligation Bonds

On May 28, 2013, the City of Uvalde issued $2,945,000 General Obligation Refunding Bonds

Series 2013 with an interest rate of 2.00%-3.50% and a final maturity date of February 1, 2028.

The bonds are being issued to refund a portion of the City’s currently outstanding Certificates

of Obligation Series 2005 and to pay certain costs of issuance relating to the bonds. As a

result, $3,040,000 of the Series 2005 CO’s are considered to be defeased and the liability has

been removed from the business type activities column on the statement of net position.

Although the advance refunding resulted in an accounting loss of $125,941 for the year ended

September 30, 2013, the City’s gross debt service savings was $430,810 with a net present

value savings of $371,161.

Annual debt service requirements to maturity for the Certificates of Obligation debt are as

follows:

Governmental Activities Business-Type Activities

Year Ending

September 30, Principal Interest Principal Interest

2014 $ 460,000 $ 317,614 $ 685,000 $ 475,050

2015 475,000 299,433 760,000 449,738

2016 500,000 280,214 790,000 422,350

2017 515,000 260,195 810,000 393,056

2018 540,000 239,153 840,000 362,613

2019 – 2023 1,520,000 982,789 4,090,000 1,299,041

2024 – 2028 1,880,000 617,093 2,715,000 570,608

2029 – 2033 665,000 307,920 890,000 89,000

2034 – 2038 345,000 243,688 - -

2039 – 2043 405,000 178,063 - -

2044 – 2048 480,000 100,625 - -

2049 – 2053 330,000 15,663 - -

TOTALS $ 8,115,000 $ 3,842,450 $ 11,580,000 $ 4,061,456

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

49


Notes Payable

In prior years, the City secured 4 interest free capital and economic development notes from

the Texas Department of Housing and Community Affairs, due in monthly installments. The

City also entered into a finance contract on August 25, 2009 for the purpose of financing a

street sweeper. The amount financed by the City totalled $115,793 and is due in 4 equal

annual installments of $32,000 beginning February 15, 2010. The annual interest rate is

4.98%.

During the year, the City entered into a loan agreement with the Texas Department of

Agriculture for $710,231. This loan is an interest-free loan and the proceeds were used to

construct improvements at the City airport. The loan is payable in 240 monthly installments

maturing in September 2032.

Purpose Amount


$ 153,450


736,687

Total

$ 890,137

The following are annual principal payments due:

Year Ending

September 30,

Amount

2014 $ 97,898

2015 80,604

2016 75,026

2017 75,026

2018 70,351

2019 – 2023 180,000

2024 – 2028 180,000

2029 – 2033 131,232

$ 890,137

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

50


H. CHANGES IN LONG-TERM DEBT

Changes in Long-Term

Debt

Beginning

Balance Additions Reductions

Ending

Balance

Due Within

One Year


Bonds and Certificates of

Obligation Payable $ 8,500,000 $ 115,000 $ (500,000) $ 8,115,000 $ 460,000

Bond Issuance Cost (Net of

unamortized discount) 270,048 - (39,889) 230,159 -

Loan Payable 231,739 - (78,289) 153,450 47,872

Capital Leases 32,325 - (15,900) 16,425 16,425

Compensated Absences 60,656 59,258 (64,725) 55,189 55,189

9,094,768 174,258 (698,803) 8,570,223 579,486


Bonds and Certificates of

Obligation Payable 12,845,000 2,945,000 (4,210,000) 11,580,000 685,000

Bond Issuance Cost (Net of

unamortized discount) (729,599) (72,454) 146,821 (655,232) -

Bonds Premium 106,128 229,451 (12,465) 323,114 -

Loan Payable 84,785 710,231 (58,329) 736,687 50,026

Capital Leases 376,994 - (95,481) 281,513 95,163

Accrued Post-Closure 2,077,725 - (110,020) 1,967,705 -

Compensated Absences 21,078 57,856 (45,717) 33,217 33,217

14,782,111 3,870,084 (4,385,192) 14,267,003 863,406

Grand Total $ 23,876,879 $ 4,044,342 $ (5,083,995) $ 22,837,226 $ 1,442,892

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

51

V. OTHER INFORMATION

A. COMMITMENTS AND CONTINGENCIES

State and Federal Programs

Amounts received or receivable from grant agencies are subject to audit and adjustment by

grantor agencies. Any disallowed claims, including amounts already collected, may constitute

a liability of the applicable funds. 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 financial statements for such

contingencies.

Legal Proceedings

From time to time, the City is a defendant in legal proceedings relating to its operations as a

City. In the best judgment of the City’s management, the outcome of any present legal

proceedings will not have any material adverse effect on the financial condition of the City.

Accordingly, no provision for losses has been recorded in the accompanying financial

statements for such contingencies.

Construction commitments

At September 30, 2013, the outstanding commitments under construction contracts were

$269,973.

B. 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 carries commerical

insurance. The City has not had any significant reductions in insurance coverage from

coverage in the prior year, and there were no settlements exceeding insurance coverage for

each of the past three fiscal years.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

52

V. OTHER INFORMATION (Continued)

C. PENSION PLAN

Plan Description

The City provides pension benefits for all of its eligible full-time employees through a non-

traditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal

Retirement System (TMRS), an agent multiple-employer public employee retriement system.

The plan provisions that have been adopted by the City are within the options available in the

governing state statutes of TMRS.

TMRS issues a publicly available comprehensive annual financial report that includes financial

statements and required supplementary information (RSI) for TMRS; the report also provides

detailed explanations of the contributions, benefits and actuarial methods and assumptions used

by the System. This report may be obtained by writing to TMRS, P.O. Box 149153, Austin,

TX 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS’

website at www.TMRS.com.

The plan provisions are adopted by the governing body of the City, within the options available

in the state statutes governing TMRS. Plan provisions for the City were as follows:

Plan Year 2012 Plan Year 2013

Employee deposit rate 5.0% 5.0%

Matching ratio (city to employee) 1.5 to 1 1.5 to 1

Years required for vesting 5 5

Service retirement eligibility (expressed as

age / years of service)

60/5,0/20

60/5,0/20

Updated Service Credit

100% Repeating,

Transfers

100% Repeating,

Transfers

Annuity Increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating

http://www.tmrs.com/

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

53


Contributions

Under the state law governing TMRS, the contribution rate for each city is determined annually

by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the

normal cost contribution rate and the prior service cost contribution rate, which is calculated to

be a level percent of payroll from year to year. The normal cost contribution rate finances the

portion of an active member’s projected benefit allocated annually; the prior service

contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the

applicable period for that city. Both the normal cost and prior service contribution rates

include recognition of the projeted impact of annually repearting benefits, such as Updated

Service Credits and Annuity Increases.

The City contributes to the TMRS Plan at an actuarially determined rate. Both the employees

and the City make contributions monthly. Since the City needs to know its contribution rate in

advance for budgetary purposes, there is a one-year delay between the actuarial valuation that

serves as the basis for the rate and the calendar year when the rate goes into effect. The annual

pension cost and net pension obligation/(asset) are as follows:

(Continued)

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

54


Schedule of Actuarial Liabilities and Funding Progress

Actuarial Valuation Date 12/31/2012

Actuarial Cost Method Projected Unit Cost

Amortization Method Level Percent of Payroll

Inflation Rate 3.0%

Investment Rate at Return 7.0%

Projected Salary Increase Varies by Aged Service

Single Amortization Period 26.9 years; Closed Period

Asset Valuation Method 10 years smoothed Market

Actuarial Value of Assets $ 10,998,872

Actuarial Accrued Liability $ 12,326,274

Percentage Funded 89.2%

Unfunded (Over-Funded) Actuarial Accrued Liability (UAAL) $ 1,327,402

Annual Covered Payroll $ 5,005,199

UAAL as a Percentage of Covered Payroll 26.5%

Net Pension Obligation (NPO) at the Beginning of Period -

Annual Pension Cost:

Annual Required Contribution (ARC) $ 352,863

Interest on NPO -

Adjustment to ARC -

Contributions Made $ 352,863

Increase in NPO -

NPO at the End of the Period -

Trend Information for the Retirement Plan for the Employees of the City of Uvalde, Texas.

Accounting

Year

Ending

Annual

Pension

Cost (APC)

Percentage

of APC

Contributed

Net

Pension

Obligation

9/30/2010 $ 227,042 100% $ -

9/30/2011 $ 245,971 100% $ -

9/30/2012 $ 352,863 100% $ -

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

55


The required schedule of funding progress immediately following the notes to the financial

statements presents multiyear trend information about whether the actuarial value of plan

assets is increasing or decreasing over time relative to the actuarial accrued liability for

benefits.

D. SUPPLEMENTAL DEATH BENEFITS FUND

TMRS also administers and the City participates in a cost sharing multiple-employer defined

benefit group term life insurance plan known as the Supplemental Death Benefits Fund

(SDBF). This ia a voluntary program in which participating municipalities may elect, by

ordinance, to provide group-term life insurance coverage (“supplemental death benefits”) for

their active members and/or retirees. 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. This is a separate trust administred by the TMRS Board of

Trustees. TMRS issues a publicly available Comprehensive Annual Financial Report (CAFR)

that includes financial and supplementary information for the SDBF. That report may be

obtained from the TMRS website at www.tmrs.com.

Benefits

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 the12-

month period preceding the month of death). The death benfit for retirees is considered a

postemployment benefit other than pension (OPEB or other postemployment benefit) and is a

fixed amount of $7,500.

Contributions

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.

http://www.tmrs.com/

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

56


TMRS records indicate the following amounts being contributed by the City of Uvalde as

employer contributions for the following fiscal years ending:

Accounting

Year

Ending

Supplemental

Death

Benefits

9/30/2010 $ 17,543

9/30/2011 $ 9,576

9/30/2012 $ 9,260

E. MUNICIPAL SOLID WASTE LANDFILL

GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill (MSWLF) Closure

and Post Care Costs, applies to any state or local governmental unit that includes a MSWLF in

its financial reporting entity and that is required by local, state, or federal laws or regulations to

incur closure or post closure care costs. The Statement was issued primarily as a result of the

EPA RULE, Solid Waste Disposal Facility Criteria, which established closure or capping

requirements for all MSWLF's that receive waste after October 9, 1991. The rule also

established 30-year post closure care requirements for MSWLF's that accepted solid waste

after October 9, 1993. Owners and operators are obligated to perform certain closing and post

closure monitoring and maintenance functions as a condition for the right to operate in the

current period. For example, when a landfill stops accepting waste (i.e., closure), it must be

covered to keep liquid away from the buried waste; and once the landfill is closed (i.e., post

closure), the owner is responsible during the next 30 years for maintaining the final cover,

monitor groundwater and methane gas, and managing leachate.

The City has reported $1,967,705 as landfill closure and post closure care liability at

September 30, 2013. This represents the cumulative amount reported to date based on the use

of 49% of the estimated capacity of the landfill. The City will recognize the remaining

estimated closure and post closure costs of $2,054,590 as the remaining estimated capacity is

filled.

Actual cost may be higher due to inflation, changes in technology, or changes in laws and

regulations. The City used 1.5% of the landfill's capacity in the current year. The landfill's

approximate remaining life is 14.0 years. The City meets the financial assurance requirements

for closure and post closure by maintaining a bond rating of BAA issued by Standard & Poor's.

CITY OF UVALDE

Uvalde, Texas


September 30, 2013

57

VI PRIOR PERIOD ADJUSTMENTS

Prior period adjustments were as follows:

Governmental

Activities

Business-Type

Activities

Reflect transfer of expenditures from Water Conservation

Special Revenue fund to Utility Fund. $ 51,497 $ (51,497)

Reflect General Fund Activity in the Local Border

Security Program. 9,337 -

Reflect revenues earned in the prior year in the Utility Fund. - 496,437

Reflect revenues earned in the prior year in the Sanitation

Fund. - 171,300

$ (54,359) $ 731,433

VII. SUBSEQUENT EVENTS

In October, 2013 the City issued ‘City of Uvalde, Texas Tax Notes, Series 2013’ in the aggregate

principal amount of $ 895,000. The Tax Notes are to finance the costs of paying contractual

obligations to be incurred for (1) renovating, equipping and improving the existing Issuer-owned

Opera House; (2) renovating, equipping, asbestos removal, and improving the existing City Hall;

(3) constructing, renovating, equipping and improving the existing City Parks and recreational

facilities, including the construction of a new skate park and municipal swimming pool

improvements; (4) purchasing public safety vehicles and renovating, equipping, improving, and

enlarging existing Public Safety Building office space; (5) purchasing equipment and vehicles for

various City departments; and (6) the payment of professional services related to the design,

construction, landscaping, and financing of the aforementioned projects. The Tax Notes mature in

2015 at an interest rate of 0.750%.

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - (GAAP Budgetary Basis) - GENERAL FUND


Variance With

Budgeted Amounts Final Budget -

Actual Over

Original Final Amounts (Under)

REVENUES

Taxes - Property 2,271,000$ 2,255,250$ 2,270,124$ 14,874$

Taxes - Sales 2,600,000 2,663,950 2,663,942 (8)

Taxes - Franchise 637,000 626,385 626,392 7

Taxes - Other 15,000 17,140 17,140 -

Licenses and Permits 69,600 74,090 77,677 3,587

Intergovernmental 15,000 15,000 14,600 (400)

Charges for Services 565,850 598,850 628,685 29,835

Fines and Forfeitures 215,000 196,500 200,622 4,122

Interest 20,000 26,775 29,744 2,969

Miscellaneous Revenues 165,005 284,098 298,307 14,209

Total Revenues 6,573,455 6,758,038 6,827,234 69,196

EXPENDITURES

Current Expenditures

City Council/Mayor 15,100 11,900 11,998 (98)

General Government 686,260 723,673 694,468 29,205

Permits 186,415 187,615 177,917 9,698

Non-Departmental 779,541 759,166 736,320 22,846

Police Department/Animal Control 3,082,274 3,054,079 3,020,872 33,207

Fire Department 381,560 416,765 409,419 7,346

Municipal Court 114,850 154,850 143,535 11,315

Code Enforcement 237,210 208,210 189,990 18,220

Streets 1,189,233 1,120,713 1,073,002 47,711

Culture and Recreation

Parks 547,115 584,997 517,170 67,827

Golf 621,995 646,055 610,275 35,780

Swimming Pool 143,500 136,000 126,986 9,014

Opera House/Main Street Program 186,395 155,664 134,593 21,071

Civic Center 116,889 127,889 109,051 18,838

Public Facilities

Cemeteries 157,150 170,665 162,524 8,141

Debt Service

Principal Retirement 78,290 78,290 78,289 1

Interest and Fiscal Chargers 1,383 1,583 5,572 (3,989)

Total Expenditures 8,525,160 8,538,114 8,201,982 336,132

Excess/(Deficiency) of Revenues Over/(Under) Expenditures (1,951,705) (1,780,076) (1,374,749) 405,328

OTHER FINANCING SOURCES/(USES)

Sale of Assets 5,000 2,115 - (2,115)

Operating Transfers In 1,979,000 2,044,800 2,044,800 -

Operating Transfers Out - (201,990) (201,990) -

Total Other Financing Sources (Uses) 1,984,000 2,046,915 1,842,810 (2,115)

Net Changes in Fund Balances 32,295 266,840 468,061 403,213

Fund Balances - Beginning 1,878,724 1,823,659 2,254,960 431,301

Fund Balances - Ending 1,911,019$ 2,090,499$ 2,723,021$ 632,523$

58

CITY OF UVALDE

Uvalde, Texas

Schedule of Funding Progress

Texas Municipal Retirement System

September 30, 2013

ANALYSIS OF FUNDING PROGRESS

Actuarial Unfunded Annual UAAL as a

Actuarial Actuarial Accrued Liability Funded AAL Covered Percentage

Valuation Value of Assets (AAL) Ratio (UAAL) Payroll of PayrollDate (a) (b) (a/b) (b-a) (c) ((b-a)/c)

12/31/10 9,767,471$ 11,651,641$ 83.8% 1,884,170$ 4,700,657$ 40.1%

12/31/11 10,340,208$ 12,090,312$ 85.5% 1,750,104$ 4,880,365$ 35.9%

12/31/12 10,998,872$ 12,326,274$ 89.2% 1,327,402$ 5,005,199$ 26.5%

Historical trend information about the Texas Municipal Retirement System (TMRS), an agent multiple-employer defined

benefit pension plan, is presented as supplementary information. It is intended to help users assess the plan’s funding status

on an on-going basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with

other comparable retirement systems

59

NON-MAJOR GOVERNMENTAL FUND STATEMENTS,

BUDGET SCHEDULES, AND CAPITAL ASSET SCHEDULES

COMBINING STATEMENTS OF NON-MAJOR

GOVERNMENTAL FUNDS

Nonmajor Governmental Funds

Special Revenue Funds

Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular

purposes.

Hotel/Motel Tax Fund Accounts for the accumulation of resources from the Hotel/Motel Tax

Assessment levied by the City. These monies are to be spent to promote the

progress, development or growth of the City within the guidelines set forth on

disposition or revenues collected under the authority of the Texas Hotel

Occupancy Tax Act.

Police Forfeiture Fund Accounts for local confiscated funds adjudicated to the City. These funds are

limited to law enforcement purposes.

Federal Forfeiture Fund Accounts for federal confiscated funds adjudicated to the City. These funds are

limited to law enforcement purposes.

Water Conservation Fund Accounts for reimbursements received on Edwards Aquifer Authority

management fees that are designated by Mayor and Council for conservation

projects.

Municipal Court

Technology Fund Accounts for proceeds and expenditures relating to a Municipal Court fee charge

assessed to defendants upon conviction of a misdemeanor offense as allowed

under Article 102.0172 of the Texas Code of Criminal Procedure.

Municipal Court

Bldg Security Fund Accounts for proceeds and expenditures relating to a Municipal Court Building

Security fee charge assessed to defendants upon conviction of a misdemeanor

offense as allowed under Article 102.0172 of the Texas Code of Criminal

Procedure.

Joint Drug

Enforcement Grant Accounts for proceeds and expenditures related to a grant from the Drug

Enforcement administration to purchase equipment and pay overtime to interdict

drugs.

Local Border Security Program Accounts for the proceeds from the Texas Department of Public Safety (Texas

Rangers Division) to pay for overtime salaries and surveillance monitoring for

police officers.

Cable Franchise Program Accounts for franchise tax fees collected under Senate Bill 1087. Resources will

be used for allowable expenditures.

Permanent Funds

Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal,

may be used for purposes that support the reporting government’s programs.

Uvalde Cemetery Accounts for Endowment Care proceeds from the sales of Old Uvalde cemetery lots.

Earnings may be used for maintenance and improvements of cemetery.

Hillcrest Cemetery Accounts for Endowment Care proceeds from the sales of Hillcrest cemetery lots.

Earnings may be used for maintenance and improvements of cemetery.

Municipal Parks Accounts for an endowment for City parks. Earnings may be used for maintenance

and improvements of city parks.

CITY OF UVALDECOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2013

MotelTaxFund Fund

ForfeiturePolice

FundForfeiture

Federal

FundConservation

Water

ASSETS

12,053 74,234 - - $ $ $ $Cash and Cash Equivalents

- - - - Investments - Current

- 36 - - Receivables (Net)

- - - - Intergovernmental Receivables

Total Assets 74,270 12,053 - - $ $ $ $

LIABILITIES

- 22 - - $ $ $ $Accounts Payable

- - - - Due to Other Funds

Total Liabilities 22 - - -

FUND BALANCES

Nonspendable Fund Balance: - - - - Endowment Principal

Assigned Fund Balance:12,053 74,248 - - Other Assigned Fund Balance

Total Fund Balances 74,248 12,053 - -

Total Liabilities and Fund Balances 74,270 12,053 - - $ $ $ $


60

CourtTechnology

FundSecurityCourt

GrantEnforcementJoint Drug

ProgramSecurity

Local Border CableFranchise

Fund

NonmajorSpecial

Revenue Funds

PermanentHillcrest

Trust

PermanentCemetary

Trust

Total

Fund

27,108- 146,55815,821 17,342 - 34,883 796$ $ $ $ $ $ $ $-- -- - - 507,834 473,566-- 36- - - - --- 1,986- - 1,986 - -

15,821 17,342 1,986 - 27,108 148,580 542,717 474,362$ $ $ $ $ $ $ $

-- 22- - - - 4,337$ $ $ $ $ $ $ $-6,801 9,119- - 2,318 - -

- - 2,318 6,801 - 9,141 - 4,337

-- -- - - 542,717 470,025

27,108(6,801) 139,43915,821 17,342 (332) - -

15,821 17,342 (332) (6,801) 27,108 139,439 542,717 470,025

15,821 17,342 1,986 - 27,108 148,580 542,717 474,362$ $ $ $ $ $ $ $

61

CITY OF UVALDECOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDSSEPTEMBER 30, 2013

PermanentMuni. Parks

Trust FundsGovernmental

NonmajorTotal

ASSETS

182,237-Cash and Cash Equivalents $ $1,004,83723,437Investments - Current

36-Receivables (Net)1,986-Intergovernmental Receivables

Total Assets 23,437 1,189,096$ $

LIABILITIES

4,359-Accounts Payable $ $9,119-Due to Other Funds

Total Liabilities - 13,478

FUND BALANCES

Nonspendable Fund Balance:1,036,17923,437 Endowment Principal

Assigned Fund Balance:139,439- Other Assigned Fund Balance

Total Fund Balances 23,437 1,175,618

Total Liabilities and Fund Balances 23,437 1,189,096$ $


62

CITY OF UVALDECOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2013

MotelTaxFund Fund

ForfeiturePolice

FundForfeiture

Federal

FundConservation

Water

REVENUES:Taxes:

-- - -Franchise Tax $ $ $ $-488,675 - -Other Taxes-- - -Intergovernmental Revenue and Grants-- - -Fines

124- - -Investment Earnings7,630- - -Other Revenue

Total Revenues 488,675 7,754 - -


-- - -General Government5,063- - -Public Safety

-418,908 - -Culture and Recreation Total Expenditures 418,908 5,063 - -


2,69169,767 - -

OTHER FINANCING SOURCES (USES): 9,362- - -Transfers In

(8,292)(69,800) (1,070) -Transfers Out (Use) Total Other Financing Sources (Uses) (69,800) 1,070 (1,070) -

Net Change in Fund Balance (33) 3,761 (1,070) -

Fund Balance - October 1 (Beginning) 74,281 8,292 1,070 63,696Prior Period Adjustment -

Fund Balance - September 30 (Ending)

- - (63,696)

$ 74,248 $ 12,053 $ - $ -


63

CourtTechnology

Fund FundSecurityCourt

GrantEnforcementJoint Drug

ProgramSecurity

Local Border PermanentHillcrest

Trust

PermanentCemetary

Trust

TotalNonmajor

SpecialRevenue Funds

CableFranchise

Fund

-- - - --15,92415,924$ $ $ $ $ $ $ $-- - - --488,675--- - 30,788 --30,788-

4,4282,360 - - --6,788--- - - 481567124--- - - --7,630-

2,360 4,428 - 30,788 481567549,92915,924

-- - - --5,0255,0251,100406 332 37,589 --44,490-

-- - - 2,850-418,908-406 1,100 332 37,589 2,850-468,4235,025

1,954 3,328 (332) (6,801) 10,899 81,506 567 (2,369)

-- - - --9,362--- - - --(79,162)-

- - - - --(69,800)-

1,954 3,328 (332) (6,801) 10,899 11,706 567 (2,369)

13,867 14,014 - - 16,209 191,429 542,150 472,394- - - - - (63,696) - -

$ 15,821 $ 17,342 $ (332) $ (6,801) $ 27,108 $ 139,439 $ 542,717 $ 470,025

64

CITY OF UVALDECOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2013

PermanentMuni. Parks

Trust FundsGovernmental

NonmajorTotal

REVENUES:Taxes:

15,924-Franchise Tax $ $488,675-Other Taxes30,788-Intergovernmental Revenue and Grants6,788-Fines1,19119Investment Earnings7,630-Other Revenue

Total Revenues 19 550,996


5,025-General Government44,490-Public Safety

421,758-Culture and Recreation Total Expenditures - 471,273


79,72319

OTHER FINANCING SOURCES (USES): 9,362-Transfers In

(79,162)-Transfers Out (Use) Total Other Financing Sources (Uses) - (69,800)

Net Change in Fund Balance 19 9,923

Fund Balance - October 1 (Beginning) 23,418 1,229,391Prior Period Adjustment -

Fund Balance - September 30 (Ending)

(63,696)

$ 23,437 $ 1,175,618


65

CITY OF UVALDECOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

ALL AGENCY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2013

BALANCEOCTOBER 1

2012 ADDITIONS

DEDUCTIONS

2013SEPTEMBER 30

BALANCE

POLICE HOLDING TRUST FUNDAssets:

9,25415,371 8,000Cash and Cash Equivalents 16,625$ $ $ $

Liabilities:9,25415,371 8,000Due to Others 16,625$ $ $ $

TOTAL AGENCY FUNDSAssets:

9,25415,371 8,000Cash and Cash Equivalents 16,625$ $ $ $

Liabilities:9,25415,371 8,000Due to Others 16,625$ $ $ $


66

Statements of Revenues, Expenditures, and Changes in Fund Balance

– Budget and Actual

CITY OF UVALDE

HOTEL/MOTEL TAX


BUDGET AND ACTUAL - (GAAP Budgetary Basis)


Variance with


Actual Over


REVENUES

Taxes

Interest 500$ 500$ -$ (500)$

Occupancy Tax 379,000 500,000 488,675 (11,325)

Total Revenues 379,500 500,500 488,675 (11,825)

EXPENDITURES

Current Expenditures

Culture and Recreation 325,000 428,500 418,908 9,592

TOTAL EXPENDITURES 325,000 428,500 418,908 9,592


Transfers Out (54,000) (71,500) (69,800) (1,700)

Total Other Financing Sources (Uses) (54,000) (71,500) (69,800) (1,700)

Net Changes in Fund Balances 500 500 (33) 533

Fund Balances - Beginning 74,281 74,281 74,281 -

Fund Balances - Ending 74,781$ 74,781$ 74,248$ (533)$

67

CITY OF UVALDE


BUDGET TO ACTUAL - (GAAP Budgetary Basis)


Variance with


Actual Over


REVENUES

Taxes -$

Interest Earnings 500$ 80$ 124$ 44$

Miscellaneous - - 1,311 1,311$

Forfeitures 7,500 6,315 6,319 4

Total Revenues 8,000 6,395 7,754 1,359

EXPENDITURES

Public Safety 7,000 - 5,063 (5,063)

Total Expenditures 7,000 - 5,063 (5,063)

OTHER FINANCING SOURCES (USES)

Transfers In - 9,350 9,362 (12)

Transfers Out - (8,275) (8,292) 17

Total Other Financing Sources (Uses) - 1,075 1,070 5

Net Changes in Fund Balances 1,000 7,470 3,761 (3,699)


Fund Balances - Ending 9,292$ 15,762$ 12,053$ (3,709)$

POLICE FORFEITURE FUND

68

CITY OF UVALDE

DEBT SERVICE


BUDGET AND ACTUAL - (GAAP Budgetary Basis)


Variance with


Actual Over


REVENUES

Taxes - Property 875,000$ 983,550$ 1,000,095$ 16,545$

Interest 3,500 8,500 11,315 2,815

Total Revenues 878,500 992,050 1,011,410 19,360

EXPENDITURES

Debt Service

Principal Retirement 500,000 500,800 500,000 800

Interest 248,820 281,067 324,348 (43,281)

Miscellaneous - - 800 (800)

Total 748,820 781,867 825,148 43,281


Transfers In - - - -

Transfers Out - - - -

Total Other Financing Sources (Uses) - - - -

Net Changes in Fund Balances 129,680 210,183 186,262 (23,921)


Fund Balances - Ending 1,000,082$ 1,080,585$ 1,056,664$ (23,921)$

69

Capital Assets Used in the Operation of Governmental Funds

CITY OF UVALDE

CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

COMPARATIVE SCHEDULES BY SOURCE

SEPTEMBER 30, 2013 and 2012

2013 2012

Governmental Funds Capital Assets

Land 884,245$ 884,245$

Buildings 4,869,910 4,869,910

Improvements other than Buildings 8,612,549 3,964,091

Machinery and Equipment 4,191,688 4,101,059

Construction in Progress 801,914 4,500,061

Infrastructure 10,673,970 10,673,970

Total Governmental Funds Capital Assets 30,034,276 28,993,336

Investments in Governmental Funds Capital Assets by Source

General Fund 9,877,879 5,100,011

Capital Projects Funds (Bonds) 14,236,170 17,973,098

Grants 5,920,227 5,920,227

Total Governmental Funds Capital Assets 30,034,276$ 28,993,336$

70

CITY OF UVALDE


SCHEDULE BY FUNCTION AND ACTIVITY

SEPTEMBER 30, 2013

Construction Improvements Machinery

in Other Than and

Land Progress Buildings Buildings Equipment Infrastructure Total

Function and Activity

General Administration

City Council/Mayor -$ -$ -$ -$ 19,540$ -$ 19,540$

City Hall - - 12,218 184,880 20,386 - 217,484

General Government 151,010 - 2,961,390 67,441 394,744 - 3,574,585

General Services - - - - 10,621 - 10,621

Economic Development - - - 9,000 - - 9,000

Permits - - - - - - -

Public Safety

Police Department/Animal Control - - 254,676 27,871 1,449,535 - 1,732,082

Fire Department 25,483 - 64,064 98,829 855,452 - 1,043,828

Code Enforcement - - - - 44,045 - 44,045

Municipal Court - - - - 8,189 - 8,189

Public Works

Streets 578,328 - 22,366 988,877 844,583 10,673,970 13,108,125


Parks 27,999 164,204 - 1,474,799 171,335 - 1,838,336

Golf 81,425 - 213,304 881,920 284,057 - 1,460,706

Swimming Pool - - 15,000 70,000 - - 85,000

Opera House 20,000 - 863,119 94,551 17,502 - 995,172

Museum - - - - - - -

Civic Center - 637,710 463,773 4,702,565 33,629 - 5,837,677

Public Facilities

Cemeteries - - - 11,817 38,069 - 49,886

884,245$ 801,914$ 4,869,910$ 8,612,549$ 4,191,688$ 10,673,970$ 30,034,276$

71

CITY OF UVALDE


SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY

SEPTEMBER 30, 2013

October 1, 2012 Additions Deductions September 30, 2013

Function and Activity

General Administration

City Council/Mayor 19,540$ -$ -$ 19,540$

City Hall 217,484 - - 217,484

General Government 3,605,060 - - 3,605,060

General Services 10,621 - - 10,621

Economic Development 9,000 - - 9,000

Permits - - - -

Public Safety

Police Department/Animal Control 1,763,782 7,081 38,781 1,732,082

Fire Department 1,043,828 - - 1,043,828

Code Enforcement 27,694 - - 27,694

Municipal Court 8,189 - - 8,189

Public Works

Streets 13,025,944 79,308 - 13,105,252


Parks 1,764,516 62,571 - 1,827,087

Golf 1,460,706 - - 1,460,706

Swimming Pool 85,000 - - 85,000

Opera House 995,170 - - 995,170

Museum - - - -

Civic Center 4,914,768 5,543,966 4,621,057 5,837,677

Public Facilities

Cemeteries 42,034 7,852 - 49,886

28,993,336$ 5,700,778$ 4,659,838$ 30,034,276$

72

STATISTICAL SECTION

CITY OF UVALDE, TEXAS

Statistical Section Overview

The statistical section is organized in five sections:

Financial Trends Compiles information reported in the Comprehensive Annual

Financial Report over the past ten years. Information for

Government Wide statements are only available back to 2004

when the City implemented GASB 34 reporting. These

schedules report how the City’s financial position has changed

over time.

Revenue Capacity Information Provides information regarding the City’s major own-source

revenue (property taxes) and the stability/growth of that revenue.

Debt Capacity Information Provides information on the City’s outstanding debt, the City’s

ability to repay the debt, and its ability to issue additional debt if

needed.

Demographic and Economic

Information Provides information regarding the City’s socioeconomic

environment; specifically, its taxpayers, employers, and the changes

to those groups over the past ten y ears if possible.

Operating Information Provides information on the City’s employees, operations of the

City, and facilities.

Financial Trend Information

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Net Position by Component

Last Ten Fiscal Years

(accrual basis of accounting)

(unaudited )

2004 2005 2006 2007


Net Investment in Capital Assets 5,096,148$ 5,253,423$ 5,210,655$ 5,410,988$

Restricted for Debt Service 515,752 599,400 839,983 473,084

Restricted for Construction - - - -

Restricted for Permanent Trust - - - -

Restricted for Federal Programs - - - -

Restricted for Endownment - - - -

Unrestricted 1,026,657 1,353,607 1,976,086 2,321,907

Total Governmental Activities Net Position 6,638,557$ 7,206,430$ 8,026,724$ 8,205,979$

Business-type Activities

Invested in Capital Assets, Net of Related Debt 3,765,095$ 2,545,117$ 3,101,322$ 5,140,096$

Restricted for Debt Service - 3,740,406 1,274,355 2,993,153

Unrestricted 839,129 (1,933,529) 1,786,099 (404,923)

Total Business-type Activities Net Position 4,604,224$ 4,351,994$ 6,161,776$ 7,728,326$

Primary Government

Net Investment in Capital Assets 8,861,243$ 7,798,540$ 8,311,977$ 10,551,084$

Restricted for Debt Service 515,752 4,339,806 2,114,338 3,466,237

Restricted for Permanent Trust - - - -

Restricted for Federal Programs - - - -

Restricted for Construction - - - -

Restricted for Endownment - - - -

Unrestricted 1,865,786 (579,922) 3,762,185 1,916,984

Total Primary Government Net Position 11,242,781$ 11,558,424$ 14,188,500$ 15,934,305$

73

Uvalde, Texas

Fiscal Year

2008 2009 2010 2011 2012 2013

5,536,671$ 5,769,325$ 3,184,285$ 7,132,929$ 7,681,162$ 7,918,932$

630,934 439,431 877,838 789,620 870,402 1,056,664

- 17,254 4,110,648 2,496,589 210,812 144,055

- - 1,011,003 - - -

- - - 4,190 4,190 -

- - - - - 1,036,179

2,089,742 3,921,819 2,850,642 1,893,215 3,776,199 3,417,101

8,257,347$ 10,147,829$ 12,034,416$ 12,316,543$ 12,542,765$ 13,572,931$

6,112,629$ 8,598,388$ 7,617,090$ 10,833,257$ 12,300,857$ 10,810,803$

2,006,137 1,131,129 1,649,691 1,839,634 1,676,281 1,268,769

1,129,549 (722,697) 604,739 203,785 (860,821) 2,962,921

9,248,315$ 9,006,820$ 9,871,520$ 12,876,676$ 13,116,317$ 15,042,493$

11,649,300$ 14,367,713$ 10,801,375$ 17,966,176$ 19,982,019$ 18,729,735$

2,637,071 1,570,560 2,527,529 789,620 2,546,683 2,325,433

- - 1,011,003 - - -

- - - 1,843,824 4,190 -

- 17,254 4,110,648 2,496,589 210,812 144,055

- - - - - 1,036,179

3,219,291 3,199,122 3,455,381 2,097,000 2,915,378 6,380,022

17,505,662$ 19,154,649$ 21,905,936$ 25,193,209$ 25,659,082$ 28,615,424$

74

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Changes in Net Position



(unaudited)

2004 2005 2006 2007

Expenses


General Government 1,742,133$ 1,800,866$ 2,124,464$ 2,060,115$

Public Safety 2,325,152 2,211,513 2,520,787 2,975,175

Public Works 1,060,822 859,572 891,503 865,666

Culture and Recreation 1,327,029 1,319,880 1,275,257 1,423,751

Health and Welfare 105,291 111,773 93,344 85,585

Conservation and Development 96,807 96,396 111,779 110,147

Bond Interest, Fees & Issuance Costs - - - -

Capital Projects 212,293 33,940 - -

Interest and Fiscal Charges 233,329 178,397 209,285 260,520

Total Governmental Activities Expenses 7,102,856 6,612,337 7,226,419 7,780,959

Business-type activities

Utility Fund 3,576,938 4,210,601 4,433,235 4,129,355

Sanitation Fund 1,554,422 1,708,647 1,443,371 1,441,207

Airport Fund 198,299 251,962 183,954 180,799

Total Business-type Activities Expenses 5,329,659 6,171,210 6,060,560 5,751,361

Total Primary Government 12,432,515$ 12,783,547$ 13,286,979$ 13,532,320$

Program Revenues

Charges for Services

General Government 11,837$ 94,897$ 178,565$ 183,370$

Public Safety 152,605 204,931 117,924 136,007

Culture and Recreation 430,101 499,405 469,312 401,514

Health & Welfare 20,766 - 34,830 39,581

Public Works 44,574 64,267 56,105 63,828

Operating Grants - - - -

Total Government Activities Revenue 659,883 863,500 856,736 824,300

Business-type activities:

Charges for services:

Utility Fund 5,134,290 5,553,621 6,824,268 6,734,365

Sanitation Fund 1,606,093 1,670,890 1,753,341 1,869,457

Operating Grants and Contributions - - 218,589 -

Airport Fund 112,532 153,243 124,838 118,843

Capital Grants and Contributions - - - -

Total Business-type Activities Revenue 6,852,915 7,377,754 8,921,036 8,722,665

Total Primary Government Program Revenue 7,512,798$ 8,241,254$ 9,777,772$ 9,546,965$

(Continued)

75

Fiscal Year

2008 2009 2010 2011 2012 2013

2,161,363$ 2,578,214$ 1,440,531$ 1,409,432$ 1,287,606$ 1,448,998$

3,298,628 3,357,436 3,676,508 4,097,088 4,024,670 4,094,734

952,164 1,017,133 1,184,235 1,169,339 1,282,871 1,503,894

1,345,928 1,495,755 1,838,118 1,799,114 1,966,105 2,335,706

89,384 92,530 183,765 143,491 155,816 64,250

92,020 - 15,537 - 14,093 -

- 84,494 357,028 322,107 284,400 281,966

- - - - - -

93,954 - - 1,200 1,200 800

8,033,441$ 8,625,562$ 8,695,722$ 8,941,771$ 9,016,761$ 9,730,348$

4,628,770 4,027,322 4,539,050 4,545,509 4,736,955 5,248,655

1,458,397 1,676,694 1,728,381 2,306,386 1,721,707 1,941,304

195,820 185,781 137,520 155,234 279,041 449,431

6,282,987 5,889,797 6,404,951 7,007,129 6,737,703 7,639,390

14,316,428$ 14,515,359$ 15,100,673$ 15,948,900$ 15,754,464$ 17,369,738$

188,921$ 254,352 263,620 146,585 146,238 144,144

522,208 260,079 231,949 309,617 361,778 344,146

348,533 359,885 324,217 328,351 334,491 370,278

47,954 39,660 30,328 33,361 - -

62,099 - - - 4,422 6,955

- - - 126,582 112,302 530,788

1,169,715 913,976 850,114 944,496 959,231 1,396,311

6,932,337 6,745,725 6,922,530 6,902,193 5,697,533 7,718,596

1,985,376 1,990,877 1,961,180 2,226,810 2,185,857 2,605,338

- - - - 1,286,188 21,927

110,818 - - - - -

- - 393,982 - - -

9,028,531 8,736,602 9,277,692 9,129,003 9,169,578 10,345,861

10,198,246$ 9,650,578$ 10,127,806$ 10,073,499$ 10,128,809$ 11,742,172$

76

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Changes in Net Position



(unaudited)

2004 2005 2006 2007

Net (Expense)/Revenue

Governmental Activities (6,442,973)$ (5,748,837)$ (6,369,683)$ (6,956,659)$

Business-type Activities 1,523,256 1,206,544 2,860,476 2,971,304

Total Primary Government Net Expenses (4,919,717)$ (4,542,293)$ (3,509,207)$ (3,985,355)$

General Revenue and Other Changes in Net Position


Taxes

Property Taxes 1,897,059$ 2,085,176$ 2,247,756$ 2,247,756$

Sales Taxes 1,784,533 1,983,672 1,941,801 1,941,801

Franchise Taxes 551,552 752,019 623,213 623,213

Other Taxes 199,528 252,361 155,301 155,301

Penalty and Interest - - - -

Licenses and Permits - 40,515 45,705 45,705

Investment Earnings 14,462 56,614 77,156 77,156

Grants and Contribution - - - -

Gain on Sale of Capital Assets - - - -

Specific Programs 55,803 24,664 15,800 15,800

Miscellaneous 289,056 419,785 353,194 353,194

Transfers 1,524,717 1,675,988 1,675,988 1,675,988

Total Governmental Activities 6,316,710 7,290,794 7,135,914 7,135,914

Business-type Activities

Unrestricted Investment Earnings 48,191 253,474 267,409 267,409

Grants and Contributions 17,752 - - -

Miscellaneous - - 3,999 3,999

Sale of Capital Assets - - - -

Transfers (1,524,717) (1,675,988) (1,676,163) (1,676,163)

Total Business-type Activities (1,458,774) (1,422,514) (1,404,755) (1,404,755)

Total Primary Government 4,857,936$ 5,868,280$ 5,731,159$ 5,731,159$


Governmental Activities (126,263)$ 1,541,957$ 766,231$ 179,255$

Business-type Activities 64,482 (215,970) 1,455,721 1,566,549

Total Primary Government (61,781)$ 1,325,987$ 2,221,952$ 1,745,804$

77

Fiscal Year

2008 2009 2010 2011 2012 2013

(6,863,726)$ (7,700,150)$ (7,680,888)$ (8,006,037)$ (8,057,530)$ (8,334,037)$

2,745,544 2,846,805 2,872,741 4,433,443 2,431,875 2,706,471

(4,118,182)$ (4,853,345)$ (4,808,147)$ (3,572,594)$ (5,625,655)$ (5,627,566)$

2,128,615$ 2,342,798$ 2,907,063 3,119,198 2,744,766 3,122,361

1,905,506 2,053,717 1,937,921 2,281,800 2,472,197 2,663,942

638,421 633,713 636,269 633,040 656,515 642,316

59,277 238,330 248,435 378,745 497,514 505,815

- 82,600 83,645 84,983 84,223 97,462

208,735 - - - - -

77,744 76,345 122,071 101,099 52,049 14,600

- 11,435 14,843 14,601 12,500 354,237

- 428,994 - 20,992 - -

122,378 - - - - -

35,636 292,762 176,146 250,782 337,501 42,828

1,738,781 3,429,937 2,377,521 1,588,852 1,375,000 1,975,000

6,915,093 9,590,631 8,503,914 8,474,092 8,232,265 9,418,561

179,581 82,695 18,225 24,299 38,540 27,018

- - - - - -

- 258,942 351,255 136,266 252,244 436,254

33,647 - - -

(1,738,783) (3,429,937) (2,377,521) (1,588,852) (1,375,000) (1,975,000)

(1,525,555) (3,088,300) (2,008,041) (1,428,287) (1,084,216) (1,511,728)

5,389,538$ 6,502,331$ 6,495,873$ 7,045,805$ 7,148,049$ 7,906,833$

51,367$ 1,890,481$ 823,026 468,055$ 174,735$ 1,084,524$

1,219,989 (241,495) 864,700 3,005,156 1,347,659 1,194,743

1,271,356$ 1,648,986$ 1,687,726$ 3,473,211$ 1,522,394$ 2,279,267$

78

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Fund Balances

of Governmental Funds


(modified accrual basis of accounting)

(unaudited)

2004 2005 2006 2007

General Fund

Unreserved Designated -$ -$ -$ 160,000$

Reserved for Encumbrance - - - -

Unreserved 685,855 983,424 1,624,813 1,423,251

Nonspendable:

Inventories - - - -

Restricted Fund Balance:

Federal or State funds Grant Restriction - - - -

Capital Acquisition and Contractual Obligation - - - -

Retirement of Long-Term Debt - - - -

Unassigned Fund Balance - - - -

Total General Fund 685,855$ 983,424$ 1,624,813$ 1,583,251$

All Other Governmental Funds

Reserved 688,244$ 663,111$ 593,864$ 541,879$

Nonspendable:

Inventories - - - -

Restricted Fund Balance:

Federal or State Funds Grant Restriction - - - -

Capital Acquistion and Contractual Obligation - - - -

Other Assigned Fund Balance - - - -

Retirement of Long-Term Debt - - - -

Unassigned Fund Balance - - - -

Total All Other Govermental Funds 688,244$ 663,111$ 593,864$ 541,879$

Total Government Funds 1,374,099$ 1,646,535$ 2,218,677$ 2,125,130$

79

Fiscal Year

2008 2009 2010 2011 2012 2013

-$ -$ -$ -$ -$ -$

104,521 7,526 3,665 - - -

1,135,651 2,015,762 2,346,094 - - -

- - - 64,706 53,074 53,422

- - - 4,190 4,190 -

- - - - - -

- - - - - -

- - - 2,230,085 2,188,359 2,669,600

1,240,172$ 2,023,288$ 2,349,759$ 2,298,981$ 2,245,623$ 2,723,022$

620,024$ 6,476,840$ 6,076,066$ -$ -$ -$

- - - - 1,037,962 1,036,179

- - - - - -

- - - 2,496,589 210,812 144,055

- - - - 191,429 139,439

- - - 789,620 870,402 1,056,664

- - - 1,153,063 - -

620,024$ 6,476,840$ 6,076,066$ 4,439,272$ 2,310,605$ 2,376,337$

1,860,196$ 8,500,128$ 8,425,825$ 6,738,253$ 4,556,228$ 5,099,359$

80

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Changes in Fund Balances

of Governmental Funds


(modified accrual basis of accounting)

(unaudited)

2004 2005 2006 2007

Revenues

Taxes 4,041,624$ 4,387,430$ 5,003,278$ 4,867,974$

Licenses, fees, and permits 60,645 61,178 40,515 45,705

Intergovernmental 228,072 55,803 24,664 138,551

Intergovernmental Revenue and Grants - - - -

Charges for services 525,163 600,916 740,356 690,092

Fines and penalties 132,531 100,619 109,487 134,209

Interest Earnings 11,208 14,462 56,614 77,156

Miscellaneous 519,662 289,056 419,785 230,443

Total Revenues 5,518,905 5,509,464 6,394,699 6,184,130

Expenditures

City council/mayor 21,615 4,866 6,240 31,487

City hall 48,158 58,628 55,557 48,443

General government 308,646 357,977 353,294 491,585

Economic development 56,818 43,836 45,793 45,966

General services 51,801 54,452 55,647 54,251

Permits/ Non-departmental 1,376,068 1,409,062 1,666,239 1,737,310

Police/Animal Control 1,592,124 1,632,138 1,820,680 2,228,884

Fire department 419,643 288,726 322,911 285,054

Municipal court 184,604 201,697 209,341 249,272

Code enforcement 78,674 108,436 109,921 124,926

Streets 1,174,134 667,055 769,532 625,703

Parks 342,466 330,092 359,194 339,830

Golf 781,754 448,183 481,126 580,036

Civic center 78,848 91,172 91,075 78,063

Swimming pool 57,401 59,118 71,683 62,098

Opera house 83,790 89,708 83,062 101,544

Health 104,291 111,039 92,406 84,603

Cemeteries 90,653 95,410 94,559 92,122

Capital outlay 212,293 33,940 495,214 196,969

Debt service

Interest 202,534 181,565 215,708 260,520

Principal 345,752 541,623 198,240 235,000

Total Expenditures 7,612,067 6,808,723 7,597,422 7,953,666

Other Financing Sources (Uses):

Payment to escrow agent - - (2,766,759) -

Bond issued/lease proceeds/other 200,000 46,978 2,766,759 -

Operating transfers in (out) 1,613,565 1,524,717 1,675,988 1,675,988

Total Other Financing Sources (Uses) 1,813,565 1,571,695 1,675,988 1,675,988

Net change in fund balances (279,597)$ 272,436$ 473,265$ (93,548)$

Debt service as a percentage of

non-capital expenditures 7.41% 10.67% 5.83% 6.39%

81

Fiscal Year

2008 2009 2010 2011 2012 2013

4,965,781$ 5,394,487$ 5,641,116$ 6,310,049$ 6,672,257$ 7,082,292$

59,277 60,948 48,480 61,276 99,299 77,677

122,378 11,435 - - - -

- - 179,563 141,183.00 124,802 545,388

649,499 566,569 505,464 532,061 564,137 573,481

258,586 203,037 218,800 224,097 223,886 207,410

77,744 76,345 122,071 10,109 52,049 42,828

35,634 272,903 178,064 251,262 297,108 361,192

6,168,899 6,585,724 6,893,558 7,530,037 8,033,538 8,890,268

37,236 9,506 34,203 19,452 40,116 12,000

48,112 72,627 - - - -

419,684 533,337 696,959 743,533 633,661 694,468

49,276 49,309 15,537 324,537 - -

59,277 57,019 - - - -

1,637,734 1,746,848 913,395 808,782 693,503 1,374,537

2,661,998 2,686,235 2,934,833 3,127,747 3,042,533 3,013,791

291,738 423,413 411,015 408,619 410,787 409,419

140,662 147,299 148,378 135,980 139,237 143,535

118,158 130,625 165,780 156,084 189,244 189,990

814,420 922,723 900,302 824,696 1,105,689 1,010,045

515,607 408,548 410,642 427,777 483,097 454,600

461,406 517,029 578,885 476,725 552,838 593,309

90,013 292,906 112,643 100,022 15,741 109,051

74,218 120,102 83,734 89,158 85,728 126,986

97,823 122,418 115,378 143,844 126,479 134,593

89,384 92,280 109,160 85,769 93,566 -

92,020 102,050 104,041 116,661 133,788 154,672

194,896 212,725 2,009,359 2,103,545 5,157,710 1,052,773

93,954 141,175 355,228 292,168 274,049 330,720

185,000 195,000 384,926 598,028 572,185 578,289

8,172,616 8,983,174 10,484,398 10,983,127 13,749,951 10,382,778

- 5,000,000 - 6,515 - -

- 609,945 8,400 79,161 2,385,000 115,000

1,738,781 3,427,437 2,377,521 1,588,852 1,375,000 1,975,000

1,738,781 9,037,382 2,385,921 1,674,528 3,760,000 2,090,000

(264,936)$ 6,639,932$ (1,204,919)$ (1,778,562)$ (1,956,413)$ 597,490$

3.50% 3.83% 8.73% 10.03% 9.85% 9.74%

82

Revenue Capacity Information

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Assessed Value and Estimated Actual Value of Taxable Property


(unaudited)

Total Estimated Assessed Value

Less: Total Taxable Direct Actual As A

Fiscal Year Ended Residential Commercial Industrial Tax-Exempt Assessed Tax Taxable Percentage of

September 31, Property Property Property Property Value Rate Value Actual Value (1)

2004 253,396,450 126,698,225 42,232,742 31,272,357 391,055,060 0.4746 391,055,060 0.91

2005 254,152,990 127,076,495 42,358,832 33,858,746 389,729,571 0.4746 389,729,571 0.91

2006 275,904,994 137,952,497 45,984,166 35,231,460 424,610,197 0.4644 424,610,197 0.92

2007 289,860,129 171,261,933 22,299,101 36,340,675 447,080,488 0.4500 447,080,488 0.92

2008 313,814,369 175,539,876 17,223,035 37,958,931 468,618,349 0.4500 468,618,349 0.99

2009 345,243,901 167,670,450 28,247,224 40,195,524 500,966,051 0.5466 500,966,051 1.01

2010 342,281,096 165,095,315 26,076,721 42,401,484 491,051,648 0.5934 491,051,648 1.01

2011 345,654,051 164,857,953 29,704,945 45,948,331 494,268,618 0.5928 494,268,618 1.01

2012 342,077,219 165,397,940 29,015,532 45,148,500 491,342,191 0.6309 491,342,191 1.02

2013 344,828,923 171,660,581 29,517,108 54,393,428 491,613,184 0.6265 491,613,184 0.92

(1) Excludes tax-exempt property

Source: Uvalde County Appraisal District

83

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Principal Property Taxpayers

(amounts expressed in thousands)

Current Year and Nine Years Ago

(unaudited)

2013 2004

Percentage Percentage

Taxable of Total City Taxable of Total City

Assessed Assessed Assessed Assessed

Taxpayer Rank Value Value Rank Value Value

Wal-Mart Stores Texas LP 1 15,768$ 2.95 4 3,709$ 0.85

Williamson Dickie Mfg Co 2 10,328 1.93 - - -

First State Bank of Uvalde 3 5,512 1.03 3 4,877 1.12

Butt H.E.Groceries Company 4 4,277 0.80 1 6,485 1.49

Amistad Realty, LLC 5 3,296 0.62 - 6,485 1.49

Neutze Properties LTD 6 2,966 0.56 6 3,173 0.73

UAL 90 LLC 7 2,502 0.47 - - -

Sierra Industries 8 2,303 0.43 - - -

Martin Roy L & Associates Partners 9 2,204 0.41 - - -

UAL Plaza LLC 10 2,110 0.40 - - -

AEP Texas Central Co - - - 2 5,061 1.17

Martin Roy L & Associates Partners - - - - - -

Southwestern Bell - - - 7 3,122 0.72

Huffstutler Mark T - - - 10 2,014 0.46

B & W Investment - - - 8 2,482 0.57

Texas Cable Partners LP - - - 9 2,284 0.53

Granada Apartments - - - 5 3,255 0.75

Total 51,266$ 9.60 36,462$ 8.40

Source: Uvalde County Appraisal District.

84

CITY OF UVALDE

Uvalde, Texas

Statistical Data

General Governmental Tax Revenues By Source

(amounts expressed in thousands)

(unaudited)

Fiscal

Year Property

Ended (1) Taxes Sales Franchise Other Total

2004 1,762 1,554 554 171 4,041

2005 1,852 1,785 551 199 4,387

2006 2,085 1,983 752 252 5,072

2007 2,147 1,941 623 155 4,866

2008 2,211 1,897 638 217 4,963

2009 2,386 2,053 633 320 5,392

2010 2,734 1,937 636 332 5,639

2011 2,931 2,282 633 464 6,310

2012 2,961 2,472 656 497 6,586

2013 3,173 2,664 642 604 7,083

85

CITY OF UVALDE

Uvalde, Texas

Statistical Data

General Governmental Revenues By Source


(amounts expressed thousands)

(unaudited)

Fiscal Licenses Charges

Year and for

Ended (3) Total Taxes (1) Permits Intergovernmental Services Fines Other

2004 5,519 4,041 61 228 525 133 531

2005 5,509 4,387 61 56 601 101 303

2006 6,394 5,003 41 24 740 109 477

2007 6,184 4,868 46 138 690 134 308

2008 6,168 4,965 59 122 649 258 113

2009 6,585 5,394 60 11 566 203 349

2010 6,889 5,639 48 179 505 218 300

2011 7,615 6,310 61 141 532 224 347

2012 8,031 6,672 99 124 564 223 349

2013 8,890 7,083 78 545 573 207 404

Notes:

(1) Includes Franchise Fees and Sales Tax Revenue.

(2) Includes General and Debt Service Funds prior to 1996, for 1997 and thereafter

includes Special Revenue and Capital Projects Funds.

(3) In 1999 the City changed its fiscal year end to September 30, from June 30.

86

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Taxable Sales by Category

Last Ten Calendar Years

(unaudited)

Fiscal

2004 2005 2006 2007 2008

Accommodation/Food Services 25,394,123$ 27,269,902$ 29,691,350$ 31,825,488$ 33,598,103$

Arts/Entertainment/Recreation 2,544,592 2,726,121 3,005,931 3,304,845 3,538,883

Construction 7,389,237 8,638,414 10,761,387 12,106,165 13,006,479

Manufacturing 12,914,694 15,788,026 17,738,545 19,821,834 20,765,299

Public Administration 2,389,579 2,512,513 1,408,876 1,438,264 1,565,921

Real Estate/Rental/Leasing 4,325,314 5,044,506 6,377,989 7,027,599 7,144,564

Retail Trade 104,093,732 112,658,189 121,536,304 129,358,330 131,987,061

Wholesale Trade 15,156,816 16,302,186 20,246,942 20,773,556 23,150,291

Totals 174,208,087$ 190,939,857$ 210,767,324$ 225,656,081$ 234,756,601$

City direct sales tax rate 1% 1% 1% 1% 1%

Source: Texas Comptroller of Public Accounts

Future years will be included until ten years are shown.

(1) Only reflects 2 quarter totals due to the timing of the preparation of the schedule

87

Year

2009 2010 2011 2012 2013 (1)

33,208,389$ 34,569,171$ 37,062,879$ 30,565,006$ 15,436,236$

3,499,133 3,586,212 3,820,021 811,325 383,591

9,952,509 9,666,603 11,042,779 1,881,066 969,475

16,094,707 16,412,388 19,898,311 2,135,540 1,361,062

1,566,965 1,590,730 1,636,444 2,026,435 1,253,756

5,372,609 5,237,211 6,024,964 6,603,082 2,197,795

125,606,509 127,925,079 134,710,942 143,519,216 70,146,439

17,514,147 19,174,320 22,018,553 5,949,554 2,591,049

212,814,968$ 218,161,714$ 236,214,893$ 193,491,224$ 94,339,403$

1% 1% 1% 1% 1%

88

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Direct and Overlapping Sales Tax Rates


(unaudited)

Uvalde

County

City Uvalde Health

Fiscal Direct County Services State

Year Rate Rate Rate Rate

2004 1.00 0.50 0.50 6.25

2005 1.00 0.50 0.50 6.25

2006 1.00 0.50 0.50 6.25

2007 1.00 0.50 0.50 6.25

2008 1.00 0.50 0.50 6.25

2009 1.00 0.50 0.50 6.25

2010 1.00 0.50 0.50 6.25

2011 1.00 0.50 0.50 6.25

2012 1.00 0.50 0.50 6.25

2013 1.00 0.50 0.50 6.25

Source: Texas Controller of Public Accounts

89

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Property Tax Rates

Direct and Overlapping


(rate per $100 of assessed value)

(unaudited)

City Direct Rates Overlapping Rates

Maintenance Interest Total Southwest Total

Fiscal & Operations & Sinking Direct Uvalde Texas Junior Uvalde Overlapping

Year Rate Rate Rate CISD College County Rates

2004 0.3744 0.1002 0.4746 1.5966 0.1100 0.4385 2.1451

2005 0.3744 0.1002 0.4746 1.5966 0.1100 0.4807 2.1873

2006 0.3635 0.1009 0.4644 1.5485 0.1100 0.5433 2.2018

2007 0.3525 0.0975 0.4500 1.2417 0.1100 0.5697 1.9214

2008 0.3516 0.1028 0.4544 1.2417 0.1100 0.5662 1.9179

2009 0.3790 0.1676 0.5466 1.1697 0.1300 0.5895 2.4358

2010 0.4161 0.1773 0.5934 1.1627 0.1300 0.6167 2.5028

2011 0.4329 0.1599 0.5928 1.2427 0.1300 0.6362 2.6017

2012 0.4365 0.1944 0.6309 1.2427 0.1300 0.6360 2.6396

2013 0.4239 0.2026 0.6265 1.2427 0.1300 0.6359 2.6351


90

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Property Tax Levies and Collections


(unaudited)

Collected within the

Taxes Levied Fiscal Year of the Levy Collection (Current and Delinquent)

Fiscal for the Percentage in Subsequent Percentage

Year Fiscal Year Amount of Levy Years Amount of Levy

2004 1,735,399 1,456,879 83.95 28,357 1,485,236 85.58

2005 1,855,947 1,596,654 86.03 19,140 1,615,794 87.06

2006 1,998,885 1,718,258 85.96 53,679 1,771,937 88.65

2007 2,154,038 1,881,130 87.33 - 2,055,700 95.43

2008 2,160,027 2,048,230 94.80 115,570 2,163,800 100.15

2009 2,357,282 2,208,828 94.10 179,524 2,388,352 100.09

2010 2,769,281 2,603,009 94.31 131,877 2,734,886 98.75

2011 2,959,097 2,792,474 94.37 149,663 2,942,137 99.43

2012 2,983,597 2,829,160 94.96 138,486 2,967,646 99.46

2013 3,144,267 2,993,918 95.39 165,094 3,159,012 00.47


Total Collections in Fiscal Year

91

Debt Capacity Information

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Ratios of Outstanding Debt by Type


(unaudited)

General

Fiscal Refunding Certificates of Term Capital Obligation Revenue

Year Bonds (2) Obligations (2) Loans Leases Bonds Bonds (2)

2004 - 3,570,000 610,722 - 5,006,000 1,426,500

2005 - 3,295,000 35,645 34,625 4,753,000 1,176,500

2006 2,967,842 330,000 621,959 23,549 2,499,730 3,361,500

2007 2,315,000 470,000 434,787 12,013 - 3,260,000

2008 2,300,000 - 386,915 - - 3,235,000

2009 2,105,000 5,000,000 454,835 - - 3,210,000

2010 1,905,000 4,890,000 379,909 - - 3,180,000

2011 1,700,000 4,895,000 308,532 47,717 - 2,910,000

2012 1,485,000 7,015,000 231,739 32,325 - 2,630,000

2013 1,534,010 6,811,149 153,450 16,425 - 2,321,667

Note: Details regarding the City's outstanding debt can be found in the

notes to the financial statements.

(1) See the Schedule of Demographic and Economic Statistics for

personal income and population data.

(2) Bonded debt of both governmental and business-type activities, net of

original issuance discounts and premiums.

Business-Type ActivitiesGovernmental Activities

92

Total Percentage

Refunding Certificates of Term Capital Primary of Personal Per

Bonds (2) Obligations (2) Loans Leases Government Income Capital (1)

- 1,932,500 654,130 194,016 13,393,868 2.31 897.17

- 5,487,500 623,568 183,122 15,912,767 2.54 1,065.90

- 4,387,500 261,867 124,263 14,578,210 2.23 871.43

- 9,215,000 231,303 64,944 16,003,047 2.50 956.61

- 8,530,000 200,741 - 14,652,656 2.09 891.01

- 7,560,000 170,179 - 18,500,014 4.60 1,152.24

- 10,525,000 143,363 - 21,023,272 4.72 1,278.71

- 9,375,000 115,346 467,558 19,819,153 2.87 1,227.80

- 10,215,000 84,785 376,994 22,070,843 3.89 1,367.29

3,098,249 5,827,966 736,687 281,513 20,781,116 2.23 1,290.11


93

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Ratios of General Bonded Debt Outstanding


(unaudited)

Percentage of

Less: Amounts Actual Taxable

Fiscal Certificate of Available in Value of Per

Year Bonds (1) Obligations Debt Service Fund (2) Total Property Capita

2004 6,432,500 5,502,500 5,159 11,929,841 3.05 799

2005 5,932,500 8,782,500 26,605 14,688,395 3.78 984

2006 8,829,072 4,717,500 135,265 13,411,307 3.19 802

2007 5,575,000 9,685,000 155,346 15,104,654 3.12 903

2008 5,535,000 8,530,000 439,431 13,625,569 2.69 829

2009 5,315,000 12,560,000 439,431 17,435,569 3.22 1,060

2010 5,085,000 15,415,000 877,838 19,622,162 3.68 1,193

2011 4,610,000 14,270,000 789,620 18,090,380 3.35 1,100

2012 4,115,000 17,230,000 870,402 20,474,598 3.82 1,268

2013 6,953,926 12,639,115 1,056,664 18,536,377 3.77 1,151

Source: Current and prior year Comprehensive Annual Financial Report.

(1) Bonded debt of both governmental and business-type activities, net of

original issuance discounts and premiums.

(2) This is the amount restricted for debt service principal payments.

94

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Direct and Overlapping Governmental Activities Debt

As of September 30, 2013

(unaudited)

Estimated

Share of

Estimated Direct and

Debt Percentage Overlapping

Government Unit Outstanding Applicable Debt

Debt repaid with property taxes

Uvalde Consolidated ISD 21,819,996$ 60% 13,091,998$

Uvalde County 23,140,000 40% 9,256,000

Debt repaid with Tuition Revenues

Southwest Texas Junior College 17,745,000 0.12% 21,294

Subtotal, overlapping debt 22,369,292

City direct debt 20,781,116 100% 20,781,116

Total direct overlapping debt 43,150,408$

Source: Assessed value data used to estimate applicable percentages provided by the

Uvalde County Appraisal District. Debt outstanding provided by each governmental unit.

Fall enrollment of the College and number of enrolled students residing within the

City boundaries was provided by the SWTJC Registrar to estimate percentages.

95

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Legal Debt Margin Information


(in thousands of dollars)

(unaudited)

Fiscal

2004 2005 2006 2007

Debt Limit 91,414$ 98,229$ 106,153$ 120,855$

Total net debt applicable to limit 3,565 3,268 13,412 16,888

Legal Debt Margin 87,849$ 94,961$ 92,741$ 103,967$

Total net debt applicable to the limit

as a percentage of debt limit 3.90% 3.33% 12.63% 13.97%

Debt applicable to limit:

Bonds

Certificates of Obligations

Less: Amount set aside for repayment of general

obligation debt:

Total net applicable to limit:

Legal Debt Margin:

96

Year

2008 2009 2010 2011 2012 2013

130,602$ 135,290$ 133,363$ 135,054$ 134,123$ 122,903$

13,626 17,436 19,623 18,091 20,475 18,639

116,976$ 117,854$ 113,740$ 116,963$ 113,648$ 104,264$

10.43% 12.89% 13.97% 13.40% 15.27% 15.17%

Legal Debt Margin Calculation for Fiscal Year 2012

Assessed Value 491,613$

Debt limit 25% of assessed value of real property (Article III,

Section 52, Constitution of the State pd Texas) 122,903

Debt applicable to limit:

Bonds 3,600

Certificates of Obligations 16,095

Less: Amount set aside for repayment of general

obligation debt: 1,056

Total net applicable to limit: 18,639

Legal Debt Margin: 104,264$

97

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Pledged-Revenue Coverage


(unaudited)

Utility/

Sanitation/

Airport Less: Net

Fiscal Services Operating Available Debt Service

Year Charges Expenses Revenue Principal Interest Coverage

2004 6,852,915 4,459,306 2,393,609 977,027 394,653 1.75

2005 7,377,754 4,628,593 2,749,161 966,041 503,745 1.87

2006 8,702,447 4,698,321 4,004,126 1,030,069 381,721 2.84

2007 8,722,665 5,751,361 2,971,304 1,000,000 450,457 2.05

2008 8,958,161 6,315,907 2,642,254 995,000 750,446 1.51

2009 8,736,602 5,889,797 2,846,805 1,065,000 720,579 1.59

2010 8,883,710 6,449,317 2,434,393 1,245,000 578,828 1.33

2011 9,129,003 5,161,474 3,967,529 1,140,000 439,634 2.51

2012 7,883,390 6,737,703 1,145,687 1,170,000 508,281 0.68

2013 10,323,934 5,407,073 4,916,861 685,000 475,050 4.24

Note: Details regarding the City's outstanding debt can be found in the notes of the financial statements.

Operating expenses does not include interest, depreciation, or amortization expenses.

98

Demographic and Economic Information

CITY OF UVALDE

Uvalde, Texas

Demographics and Economic Statistics

Last Ten Years

(unaudited)

Personal Per

Income Capita

Calendar (thousands Personal Unemployment

Year Population of dollars) Income Rate

2004 14,929 580,240 38,867 7.1

2005 14,929 626,353 41,955 5.4

2006 14,929 652,448 43,703 5.1

2007 14,929 634,447 42,498 5.4

2008 14,929 711,149 47,635 4.2

2009 14,929 723,867 48,487 6.5

2010 15,783 732,187 46,391 9.3

2011 15,847 788,263 49,742 8.9

2012 16,108 859,853 53,380 7.2

2013 16,108 931,042 57,800 7.1

Source: Middle Rio Grande Workforce Board

Statistical Data

99

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Principal Employers

Current Year and Nine Years Ago

(unaudited)

2013 2004

Percentage Percentage

of Total City of Total City

Employer Rank Employees Employment Rank Employees Employment

Uvalde Consolidated ISD 1 780 10.60% 1 816 11.62%

Southwest Texas Jr. College 2 650 8.83 2 450 6.41

Agril-Link Foods - - - 9 80 1.14

Wal-Mart 3 280 3.80 - - -

HEB Foods 4 210 2.85 3 240 3.42

Williamson Dickies 5 188 2.55 4 215 3.06

Amistad Nursing Home 6 180 2.45 5 206 -

Vulcan Materials 8 150 2.04 6 150 2.14

City of Uvalde 7 160 2.17 7 148 2.11

Uvalde County 9 125 1.70 8 120 1.71

Sierra Industries 10 67 0.91 10 67 0.95

General Tire Proving Grounds - - - -

Total 2,790 27.41 2,492 20.94

Source: Middle Rio Grande Workforce Board

100

Operating Information

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Full-Time-Equivalent City Government Employees by Function/Program


(unaudited)

Full-Time-Equivalent

2004 2005 2006 2007 2008

Function/Program

General Government

General Government 7 7 7 7 7

Opera House 2 2 2 2.5 2.5

City Hall 1 1 1 1 1

Permits 3.5 3 3 4 4

General Services 2 2 2 2 2

Economic Development 1 1 1 1 1

Health Care & Walfare

Health Department 4 4 0 0 0

Parks and Recreation

Swimming Pool 0.5 0.5 0.5 0.5 0.5

Civic Center 2 2 2 2 2

Parks 9 9 9 7 7

Golf 8.5 8.5 8.5 8.5 8.5

Public Safety

Police Officers 29 29 35 38 38

Civilians 14 14 14 15.5 15.5

Fire 5 5 4 4 4

Municipal Court 2 2 2 2 2

Code Enforcement 1.5 2 2 2 2

Public Works

Cemeteries 4 4 4 4 4

Streets 12 12 11 11.5 11.5

Utility Office 4 4 4 4 4

Water 9 9 8 8 8

Gas 9 9 8 8 8

Sewer 7 7 7 7 7

Service Center 4 4 4 4.5 4.5

Landfill 5 5 4 4 4

Brush 3 3 3 3 3

Collection 6 6 6 6 6

Recycling Center 1.5 1.5 1.5 1.5 1.5

Total 156.5 156.5 153.5 158.5 158.5

*General government is a shared cost between the general fund, utility fund & sanitation fund

101

Employees as of September 30

2009 2010 2011 2012 2013

8 8.5 8.5 4.3 5.8

2.5 2.5 1.5 2 2

0.5 0 0 0 0

2 3.5 3.5 3 1.5

2* 0 0 0 0

1* 0 0 0 0

0 0 0 0 0

0.5 0.5 0.5 0.5 0.5

2 2 2 0 1.5

7 7 7 8 6.5

8.5 8.5 8.5 8.5 7.5

39 39 34 36 34

15.5 15.5 15.5 17.5 23.5

4 4 4 3 3.5

2 2 2 1.3 1

2 2 2 3 3.5

4 4 4 4 4

11.5 11.5 11.5 11.5 11.5

4* 3 3 3 14.8

8 8 8 8 7

7 7 7 7 7.5

7 8 8 8 8.5

4.5 4.5 4.5 4.5 3.5

5 5 6.5 8.3 8.97

3 3 3 3 3

6 7 7 7 6.5

1.5 1.5 1.5 1.5 2

158 (155) 157.5 153 152.9 168.07

102

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Operating Indicators by Function/Program


(unaudited)

Fiscal

2004 2005 2006 2007 2008

Function/Program

General Government

Building permits issued 403 425 666 354 362

Building inspections conducted 1120 1130 1180 1073 1086

Police

Physical Arrests 566 630 730 975 961

Traffic Violations 3115 3220 3359 4435 5515

Fire

Emergency responses 401 430 417 105 295

Fires extinguished 44 75 77 113 187

Inspections 398 430 400 60 75

Refuse Collection

Refuse Collected (tons per day) 85 98.31 100.2 97 96

Public Works

Street resurfacing (miles) 1 1.2 1.35 3.5 0

Water

New connections 56 32

Water mains breaks 102 115 123 23 29

Average daily consumption

(millions) 2627 2664 2708 2959 3801

Wastewater

Average daily sewage treatment

(mgd) 1.71 1.80 1.75 1.70 1.60

103

Year

2009 2010 2011 2012 2013

355 301 309 577 411

1420 1200 1300 1600 1600

961 989 591 736 624

3380 3350 4546 5705 3891

278 242 346 370 419

103 185 235 316 371

25 28 0 27 45

95.96 85.21 96.50 96.50 98.50

0 0 0 2.05 0

31 20 16 65 71

29 35 58 49 42

3451 3169 3823 3400 3202

1.50 1.45 1.49 1.49 1.5

104

CITY OF UVALDE

Uvalde, Texas

Statistical Data

Capital Asset Statistics by Function/Program


(unaudited)

Fiscal

2004 2005 2006 2007 2008

Function/Program

Police

Stations 1 1 1 1 1

Patrol Units 17 19 20 14 14

Fire stations 1 1 1 2 2

Refuse Collection

Collection trucks 7 7 7 7 7

Public works

Streets (miles) 76 76 76 76 76

Parks and Recreation

Acreage 163 163 163 163 163

Baseball fields 5 5 5 5 5

Tennis Courts 2 2 2 0 0

Golf Courses 1 1 1 1 1

Civic Centers 1 1 1 1 1

Swimming Pools 1 1 1 1 1

Water

Water Mains (miles) 150 150 150 150 152

Fire Hydrants 615 615 615 620 627

Storage Capacity

(millions) 2550 2550 2550 2550 2550

Wastewater

Sanitary Sewer (miles) 135 136 136 136 136

Treatment Plants 1 1 1 1 1

Treatment Capacity

(mgd) 2.5 2.5 2.5 2.5 2.5

105

Year

2009 2010 2011 2012 2013

1 1 1 1 1

22 21 22 22 23

2 2 2 2 2

7 13 13 13 13

76 76 76 76 76

163 163 163 163 163

5 5 5 5 5

0 0 0 0 0

1 1 1 1 1

1 1 1 1 1

1 1 1 1 1

153 153 153 153 153

630 630 630 630 630

2550 2550 2550 2550 2250

136 136 136 136 136

1 1 1 1 1

2.5 2.5 2.5 2.5 2.5

106

SINGLE AUDIT SECTION

CITY OF UVALDE

Uvalde, Texas

SCHEDULE OF FINDINGS AND QUESTIONED COSTS


111

SECTION I --- SUMMARY OF AUDITORS’ RESULTS

Financial Statements

Type of auditor’s report issued: Unmodified

Internal control over financial reporting:

Material weakness (es) identified?

X Yes

No

Significant deficiencies identified not considered

to be material weaknesses?

X Yes

No

Noncompliance material to financial statements noted?

Yes

X No

Federal Awards

Internal control over major programs:

Material weakness (es) identified?

Yes

X No

Significant deficiencies identified not considered

to be material weaknesses?

Yes

X No

Type of auditor’s report issued on compliance for

Major programs

Unmodified

Any audit findings disclosed that are required to be

reported in accordance with Circular A-133,

Section. 510(a)?

Yes

X No

Identification of Major Programs

CFDA Numbers(s)

Name of Federal Program or Cluster

10.780

Community Facilities Loan and Grant Program (ARRA)

Dollar threshold used to distinguish between Type A and Type B

programs:

$300,000 Auditee qualified as low-risk auditee?

Yes

X No

(Continued)

CITY OF UVALDE

Uvalde, Texas



112

SECTION II --- FINANCIAL STATEMENT FINDINGS

Finding 2013-II-1 Capital Assets

Type of Finding: Material Weakness

Criteria: An integral part of the internal control over financial reporting includes maintaining a complete

capital asset subsidiary ledger that incorporates all the details of the City’s assets, including costs, dates of

acquisition, asset descriptions, locations, and identification numbers.

Condition/Effect: As mentioned in previous years, we detected the following weaknesses with regards to

the City’s capital asset records:

The City currently tracks its capital assets using Excel spreadsheets, which is cumbersome and

contributes to the risk of errors in computing depreciation and accumulated depreciation.

The Excel schedules do not consistently include complete asset descriptions, locations,

identification/serial numbers, asset condition and related acquisition dates;

The Excel schedules are not updated during the year to reflect additions/deletions.

Capital asset policies have not been updated and approved by City Council to reflect the adoption

of capitalization thresholds, asset useful lives, depreciation methods, etc.

A number of reclassification adjustments were required as part of the audit to capture assets with

a value greater than $5,000 as asset additions on the general ledger.

Recommendation: We recommend that the City improve its internal control over capital assets. The

following should be considered:

Complete the physical inventory of capital assets with an individual cost of $5,000 or greater.

Reconcile inventory records to the financial statements.

Record all capital asset details (asset descriptions, cost, date of acquisition, etc) into the capital

asset INCODE program and compute accumulated depreciation and depreciation expense.

Review, and approve existing capital asset policies and procedures in order to strengthen internal

controls over the City’s capital assets.

CITY OF UVALDE

Uvalde, Texas



113

Corrective Action Plan: The City of Uvalde will complete the data entry of all capital assets into the

INCODE software prior to year end 9/30/14. Use of the Excel spreadsheet will be discontinued once all

capital assets have been entered into the system and the totals have been reconciled. Going forward, assets

will be added into the INCODE program as purchases are made throughout the year.

City staff will be attending training in the fall of 2014 to develop a new accounting policy and procedures

manual. The capital assets policies will be updated and incorporated into the new policy manual.

Responsible Person(s): Jennifer Garver, City Manager; Debbie Pike, Controller; LeeAnn Ortiz, Budget

Director; and Larissa Flores, Purchasing Agent

Finding 2013-II-2 – General Ledger Review and Reconciliation

Type of Finding: Significant Deficiency

Criteria: An integral part of internal control is the monthly review and reconciliation of the general ledger

balance sheet accounts. This is necessary to detect any unexpected errors and correct them in order to

provide reliable reports for decision making.

Condition/Effect: The City does not effectively review and reconcile its general ledger. During our testing,

we identified several general ledger accounts, including accounts payable, bonds payable, utility revenues

and receivables and capital expenditures that contained misstatements. As a result, a number of

adjustments were recommended as part of the audit to fairly state the account balances as of September 30,

2013. A contributing factor to this condition is that the City did not have a finance director during the year.

Recommendation: We recommend that management implement a monthly review and reconciliation

process of the general ledger account balances to strengthen controls over financial reporting. This process

will mitigate the number of errors in the general ledger and will provide management with more accurate

information to aid in decision making.

Corrective Action Plan: The City of Uvalde will develop a monthly closing schedule to ensure all items

are posted in a timely manner and that all necessary adjustments are made prior to the bank statement

reconciliation. Once the bank statement has been reconciled, the general ledger will be closed for the prior

month end so that no changes can be made. At this time, reports can be generated to review balances and

determine necessary adjusting entries.

CITY OF UVALDE

Uvalde, Texas



114

City staff will be attending the INCODE conference in April 2014 to learn what options are available for

closing general ledger periods to prevent changes be made once a month has been reconciled. In addition,

the City Manager will be attending the GFOA Spring Conference to receive updates on new governmental

accounting standards.

Responsible Person(s): Jennifer Garver, City Manager; Debbie Pike, Controller; and LeeAnn Ortiz,

Budget Director.

SECTION III --- FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

There were no federal award findings or questioned costs required to be reported in accordance with OMB

Circular A-133.

CITY OF UVALDE

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal

CFDA Pass-Through Entity Federal

Federal Grantor/Program Title Number Identifying Number Expenditures

U.S. Department of Agriculture

ARRA Community Facilities Loan and Grant Program 10.780 TX-97-01 115,000$

ARRA Community Facilities Loan and Grant Program 10.780 TX-97-01 500,000

Total U.S. Department of Agriculture 615,000

TOTAL EXPENDITURES OF FEDERAL AWARDS 615,000$

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS:

1. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City and

is presented on the modified accrual basis of accounting for amounts recorded in governmental funds and full accrual

for Business-Type Funds. The information in this schedule is presented in accordance with the requirements of OMB

Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations.” Therefore, some

amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic

financial statements.

For programs which require a local match the amount reported as expenditures does not include expenditures

paid with local matching funds.

2. The City expended $115,000 in connection with the Community Facilities Loan and Grants Program CFDA No. 10.780

funded by the U.S. Department of Agricultural (USDA). The loan is scheduled for repayment over a period not to

exceed 40 years. This program was considered a major program in the current year.

3. The City did not have any sub-recipients or non-cash awards during the year ended September 30, 2013.

115

CITY OF UVALDE

Uvalde, Texas

SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS

Year Ended September 30, 2013

116

There were no findings relative to federal awards in the prior year.

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