R-2022-058 - 2/24/2022 RESOLUTION NO. R-2022-058
WHEREAS,the City of'Round Rock's Annual Comprehensive Financial Report("Report")for the
fiscal year ended September '10, 2021 has been submitted to the City Council, and
WHEREAS,the City Council desires to acknowledge the receipt and acceptance of the attached
Report,Now"therefore
BE IT RESOLVED BY THE COUNCIL CSF THE CITY OF ROUND ROCK, TEXAS,
That the City of Round Rock's Annual Comprehensive Financial Report,for the fiscal year ended
September 30, 2021, attached hereto as I-I'xhibit "'A" and incorporated herein, is hereby received and
accepted.
The City Council hereby finds and declares that written notice of the date, hour,place and subject
of the meeting at which this Resolution was adopted was posted and that such i-neeting was open to (lie
public as required by law at all times during which this Resolution and the subject matter hereof were
discussed, considered and formally acted upon, all as required by the Open Meetings Act., Chapter 551,
Texas Government Code, as amended.
RESOLVED this 24th day of February, 2022.
CRAIGOR J N Mayor
I o
City of�Zoun( Ick, Texas
M IT'I ST:
M A iAN SIMCS, dty Clerk
U 112.202122 4M1-91444.1134
EXHIBIT.
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ROUND ROCK �mw.
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City of Round Rock, Texas
Annual Comprehensive Financial Report
Fiscal Year Ended September 30, 2021
ELECTED OFFICIAL
Craig Morgan, Mayor
Rene Flares, Mayor Pro-Tem
Michelle Ly, Council Member
Matthew Baker, Council Member
Frank Ortega, Council Member
Kristin Stevens, Council Member
Hilda Montgomery, CouncilMember
MANAGEMENT STAFF
Laurie Hadley
City Manager
Bryan Williams
Assistant City Manager
:Brooks Bennett
Assistant City Manager
OFFICIAL ISSUING REPORT
Susan L. Morgan, CPA
Chief Financial Officer
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TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal 1
City Organizational Chart 9
Certificate of Achievement for Excellence in Financial Reporting 10
FINANCIAL SECTION:
Independent Auditors'Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government Wide Financial Statements:
Statement of Net Position 30
Statement of Activities 32
Fund Financial Statements:
Governmental Funds:
Balance Sheet 34
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 36
Statement of Revenues,Expenditures and Changes in
Fund Balances 38
Reconciliation of the Statement of Revenues,Expenditures and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities 40
Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual-General Fund 41
Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual—Round Rock Transportation and Economic
Development Corporation Fund 42
Proprietary Funds:
Statement of Net Position 44
Statement of Revenues, Expenses.and Changes in Net Position 46
Statement of Cash Flows 47
Notes to the Financial Statements 49
Required Supplementary Information
Texas Municipal Retirement System(TMRS) Plan-Schedule of Changes in the Net
Pension Liability and Related Ratios 94
Texas Municipal Retirement System(TMRS)Plan-Schedule of Contributions 96
Schedule of Changes in the Total OPEB Liability and Related Ratios 98
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds:
Combining Balance Sheet- Nonmajor Governmental Funds 100
Combining Statement of Revenues,Expenditures and Changes in
Fund Balances-Nonmajor Governmental Funds 102
TABLE OF CONTENTS
Schedules of Revenues,Expenditures and Changes in Fund Balances—
Budget arid Actual:
General Fund 106
Debt Service Fund 110
onmajor Special Revenue Funds:
Community Development Block Grant 111
Hotel-Motel Occupancy Tax 112
Hotel-Motel Occupancy Venue Tax 113
Innovation and Development 114
Library and Recreational 115
Public Safety 116
Public Education&Government 117
Roadway Impact Fees 118
STATISTICAL SE TION(UNAUDITED):
Financial Trends.
et Position by Component—Last Ten Fiscal Years 120
hanges in Net Position—Last Ten Fiscal Years 122
Fund Balances of Governmental Funds—Last Ten Fiscal Years 126
Changes in Fund Balances of Governmental Funds—Last Ten Fiscal Years 128
RevenueCapacity:
Actual and Taxable Assessed Value of Property—Last Ten Fiscal Years 130
Property Tax Rates—Direct and Overlapping Governments
Per$100 of Assessed Value—Last Ten Fiscal Years 131
Principal Property Taxpayers—Current Year and Nine Years Ago 132
Property Tax Levies and Collections—Last Ten Fiscal Years 133
Sales Tax and Ad Valorem Tax-Last Ten Fiscal Years 134
xable Sales by Category—Last Ten Calendar Years 136
otel Taxpayers 138
otel Occupancy Tax Collection History by Quarter—Last Ten Fiscal Years 139
Debt Cap city:
atios of Outstanding Debt by Type—Last Ten Fiscal Years 140
Patios of Net General Bonded Debt Outstanding to Assessed Value and Net
Bonded Debt Per Capita—Last Ten Fiscal Years 141
Computation of Direct and Overlapping Governmental Activities Debt 142
Legal Debt Margin Information—Last Ten Fiscal Years 144
Condensed Utility Statement of Operations-Last Ten Fiscal Years 146
Demographic and Economic Information:
emographic and Economic Statistics—Last Ten Fiscal Years 149
rincipal Employers—Current Year and Nine Years Ago 150
Operating Information:
Il-Time Equivalent City Government Employees by Function—Last
Ten Fiscal Years 151
Aerating Indicators by Function—Last Ten Fiscal Years 152
Capital Asset Statistics by Function—Last Ten Fiscal Years 154
op Ten Water Customers 156
Water and Sewer Retail Rates 157
TABLE OF CONTENTS
SINGLE AUDIT SECTION:
Schedule of Expenditures of Federal Awards 159
Notes to Schedule of Expenditures of Federal Awards 160
Independent Auditors'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 161
Independent Auditors'Report on Compliance for Each Major Federal Program
and on Internal Control Over Compliance Required by the Uniform Guidance 163
Schedule of Findings and Questioned Costs 165
Summary Schedule of Prior Audit Findings 166
Corrective Action Plan 167
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Mayor Co,trnciLmernbers City Manager
Craig Morgan L1'rc h llce Ly Laurie Haid(ey
Matthew Baker
Frank:ink C7rrwr;g a
uROUND ROCK TEXAS Mayor Pro-Tem i ristin Steveris City Attorney
A1IMmm'rbq"a"TRATmC7N (Terre Flores IA lda Mai-rtg ol mney btelr6'ramr
February,7, 2022
Honorable Mayor and Members of the City Council
City of Round Rock,Texas
The Annual Comprehensive Financial Report of the City of Round Rack,Texas for the fiscal year ended September 30,2021,
is submitted herewith. This report has been prepared by the City's Flnance Department and responsibility for both the
accuracy of the presented data and the completeness and fairness of the presentation, including ail disclosures, rests with
the City.We believe the data is accurate in all material aspects and is presented in a manner designed to clearly state the
financial position and results of operations of the City as measured by the financial activity of its various funds. All
dm'sclosures have been included to enable the reader to gain the maximum understanding of the City's financial affairs.
The City Charter requires all annual audit of the hooks of account,financial records,and transactions of all departments of
the City by independent certified public accountants selected by the City Council.
Whitley Penn, L.L.P'., Certified Public Accountants, have issued an unmodified ("clear7") opinion on the City of Round Rock's
f nancual statements for the year ended September 30,2021.The independent auditors" report is located at the front of the
financial section of this report
Management's discussion and analysis(MD&A)call be found irnmediatelyfollowiing the report of the independent.auditors.
Mlle MD&A is a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it.
Citv of Round Rork Profile
The City of Round Rock, establiished in '1851, is a municropal corporation incorporated under Article XI Section 5 of the
Colistin fiinn oF the State of Texas Home Rule Arnerrrfrr'rent .The City operates under a Council-Manager form of government
with six council members and a mayor,The City Manager is appointed by the City Council and is responsible to them for
managing and administering all City affairs.
The Chief Financial Officer is appointed by the City Manager and is responsible for supervising the operations of the Finance
Department.This department maintains all accounting records of the City.
The financial reporting entity(the government) includes all the funds of the primary government(the City of Round Rock
as IPegally defined) as well as its component units. Component units are legally separate entflties for which the primary,
government is financially accountable. The C'it'y provides a full range of services which include police and fire protection,
park's and library,construction,and maintenance of infrastructure, planning and community development, convention and
tourism activities, and general administrative services. In addition, the City owns and operates a water, wastewater and
stortvnwater utility system and a golf course.These activities are included in the accompanying financial staternents. Blended
component units, although legally separate entities, are in substance part of the primary government's operations and
included as part of the primary government. Accordingly, Round Rock Transportation and Economic Development
Corporation(RRTEDC) revenues are reported in a special revenue fund of the City.
CITY OF ROUND ROCK 22!1 Last trV'wn Snr=yet, ROUnd Rock,,"I exas'78664
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Annual budgets are legally adopted for the General Fund, Special Revenue Funds, Debt Service Fund, and the Proprietary
Funds, Capital Projects Funds have no binding annual budget. Project-length financial plans are adopted for all capital
projects;accordingly, no comparison of budget to actual is presented in the financial statements.
Budgetary control is maintained at the department level by the encumbrance of estimated purchase amounts prior to the
release of purchase orders to vendors. Purchase orders which result in an overrun of balances are not released until
additional appropriations are made available.
Significant(.earl Economic Events
Strategic
Along with the entire Central Texas region, the Clty has experienced tremendous population growth over tine past several
years which has led to an increased demand for city services.To adequately prepare for the effect of this activity on the
City, much effort noes into planning and funding infrastructure and service programs. Each .Iararrary, Council reviews the
City's successes and challenges and refines both the short-term and long-team strategic goals for the City„These goals set
the direction for the allocation of staff and financial resources and are the basis for the development of the following years
budget.
The goals and objectives identified by Council rmo,st recently are:
Financially Sound City Providing High Value Services
* Diversify City revenues to support defined City services and service levels
* Expand tile City tax lase through economic expansion and diversity
* Maintain responsible financial reserves consistent with City financial policies and national',
standards
Maintain City facilities, equupment,and apparatus
Develop, update, and use long-range organization and strategic master planning
Hire and retain top-quality, diverse City workforce dedicated to serving the Round Rock
community
City Infrastructure:Today and For Tomorrow
* Maintain responsible potable water use by City customers,City facilities and parks
Invest in City infrastructure to support future community growth and economic
development
* Expand water reuse systern throughout the City where feasible
* Improve mobility throughout the City and the region
Upgrade and expand rands
* Upgrade and expand drainage and stormwater system
"The Sports Capi=tal of Texas" for Tourism and Residents
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* Expand sports facilities(Sports Center/'Multipurpose Complex)to support tourism
* Increase number of tournaments: regional and national
• Develop and maintain additional sports fields - practice, games, sports tourism
• Upgrade the quality and maintenance of current Oty sports facilities
• Vncrease revenues from sports tourism/convention for the benefit of residents and the
local economy
• Expand conventions/conferences
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Great Community to Live
• Expand and diversify the local business and job opportunities for residents
• Redevelop older commercial areas and corridors
• Expand and maintain quality-of-life amenities for residents
lmo • Build a community where people prefer to live
• Diversify hou,ing opportunities
• Expand education campuses and programs
URI - Expand medical/healthcare businesses
Authentic Downtown- Exciting:Community Destination
• Increase public and commercial use of Brushy Creek
• Expand housing OpPOr1LAnitie5:townhomes, apartments, condos
• Develop The Depot and Tower Project
• Increase Downtown connectivity
• Provide safe, convenient, lighted parking
• More attractive,aesthetically pleasing Downtown
Sustainable Neighborhoods
. Maintain reputation as a safe city
* Upgrade older housing stock:exterior and interior
# Ensure homes and commercial areas comply with City codes
- Increase neighborhood connectivity through streets and trails
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- Increase effectiveness of homeowner associations/neighborhood associations
- Repair and Upgrade neighborhood infrastructure-, streets, sidewalks, utilities, fences,
streetscape's
- Upgrade neighborhood parks and open spaces
The budget adopted for fiscal year 2022 reflects a fiscally responsible approach to improving the City's infrastructure and
meets current demands while maintaining the City's strong financial position.This includes restoring the budget reductions
adopted for fiscal year 2021 in response to the pandemic, in addition to new programs and new positions being approved.
Economy
Round Rock has experienced robust economic growth despite the lingering pandernic. As the largest city in Williamson
County, and part of the Austin Metropolitan Statistical Area(MSA), Round Rock is a key part of one of the fastest growing
regions in Texas and the country. Prom 2012 to the projected population for 2022, the City of Round Rock will have
experienced a 10-year popOation growth of 21,4%, Our long-range population estimates predict this increase continuing
at a growth rate of around 2% per year for the foreseeable future.The state's strong economy, low unemployment rate,
and low rate of overall taxation continues to draw new residents and businesses into Central "Texas.
The Population for 2030 is projected to be over 158,000 within the City limits and over 215,000 in Greater Round Rock,
which includes the City limits and the City's extraterritorial jurisdiction (ETJ).While most of the long-range growth will likely
occur in northeast Round Rock where there are still large tracts of land that could be developed into additional
n6ighborhoods, Population density will likely increase across the City as residential development continues for single family
townhornes, multifamily apartments, and senior living facilities. The City is planning and preparing for this population
growth to ensure the high-quality services Round Rock residents have come to expect are expanded to serve residents of
today and of tomorrow,
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Round Rock continues to gain recognition for the value of the high-quality services provided to our residents.Below area
few of our most r cent accolades:
• Ranked nu ber 3 by Milkeninstitute.org as one of the"Best Performing Cities"
• Ranked nu ber 25 by Money.com as one of the"Best Places to Live in America"
• Ranked nu Tiber 14 by Niche.com as one of the"Best Cities to Buy a House in America"
• Ranked nu Tiber 11 by SmartAsset.com as one of the"Most Recession-Resistant Cities"
• Ranked nu Tiber 9 by SmartAsset.com as one of the"Most Livable Mid-Sized Cities"
• Awarded t e"Leading the Way Award"by ETC Institute,an award that recognizes local governments for outstanding
achievement in the delivery of services to residents
• The American Planning Association (APA)Texas Chapter named Round Rock 2030, the City's comprehensive plan,
the Best Comprehensive Plan in the state of Texas and awarded the City of Round Rock the"Community of the Year
Award"
Economic Deve!)pment
The City underst nds that diversification of Round Rock's economy is a key to financial stability. The long-standing
partnership between the City and Round Rock Chamber continues to attract new development to the City.The funding is
leveraged with the Chamber Momentum Fund to create a public/private partnership for economic development priorities.
This partnership continues to yield new prospects through an inspired approach to economic development for Round Rock.
Round Rock's economy has become stronger and more diverse because of a variety of business relocations bringing capital
investment,job opportunities, and new residents to the City. Emerson Process Management opened its $70 million,
282,000 square-foot international headquarters and technology center in January 2014 for its automation systems and
project services usinesses which help customers operate facilities in fields like oil and gas. TECO-Westinghouse is
the largest manufacturer of electric motors in North America. Cargill Meat Solutions acquired ProPortion Foods LLC, a
Los Angeles-based food service company, which relocated its office, food processing, storage, and warehouse facility
to the City in 2016,bringing in at least 400 full-time jobs.
Dell is the larges employer in Round Rock with an estimated 13,000 employees in 2021.Since Dell relocated its global
headquarters to tound Rock in 1994, the economic impact to the City has been transformative. Dell remains the City's
largest sales taxpayer with continued sales tax receipts projected to continue to grow into fiscal year 2022. Due to the
company's comn iitment to Round Rock, the employment opportunities they offer, and the property tax and sales tax
revenues they ge ierate,Dell remains a major driver to the City's economy.
Over the next fi years, new economic development projects will reshape Round Rock's economy by diversifying the
economy and bn iging in new residents and visitors. The City entered into an agreement with Mark IV Capital for The
District on Febru 3ry 14,2019.The planned $200 million project will be a live,work,and play community located near the
intersection of 4 35 and SH 45. The initial plans for the development include 1 million square-feet of office space,
approximately 90 multifamily residential units,a hotel,a high-end grocery store,and retail/restaurant space.This mixed-
use development will be a great opportunity for continued growth and diversification of the City's economy.
Amazon has opened a new delivery station in Round Rock with an estimated 600 employees in fiscal year 2021.The 32-
acre site is located at the Chisholm Trail Center near 1-35 and Old Settlers Boulevard and is comprised of three industrial
buildings. The la ger building is 180,550 square-feet and is used as the campus distribution center. The smaller two
buildings total 2 0,970 square-feet and are used as parking for employees and delivery vehicles.The delivery station has
created hundred of local jobs.
Triple Temp Col Storage LLC will be operating a new cold storage and manufacturing facility in southwest Round Rock
which started co struction July 2021. The facility will be 125,000 square-feet on a 10-acre site near Bratton Lane and
expected to gen ate 60 new jobs with salaries averaging$60,000 a year.The new facility will also serve as an incubator for
entrepreneurs to create new food products and take them to market.This cold storage and incubator will be the first to
market in the Au tin-Round Rock area.
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East/West Manufacturing opened a new 43,000 square-foot facility in Round Rock in November 2021. East/West
manufactures electronics and will relocate 30 jobs and create 30 new jobs over five years with the average salary being
$50,000 a year.The company will invest$5 million into the new facility with an additional $650,000 in business personal
property.
A new Embassy Suites Hotel and Conference Center is being built for$20 million on about 6-acres of land near Bass Pro
Shops and the Round Rock Premium Outlets.The project will bring a 160-room hotel with at least 14,000 square-feet of
convention and meeting space and will generate at least 60 jobs.
United Parcel Service(UPS)opened a new facility in Round Rock in late 2018.This$70 million regional distribution center
is 225,000 square-feet and is located on 50-acres of land near SH 45 and A.W.Grimes Boulevard.The new center employs
more than 300 people with an annual average salary of at least$50,000.
Kalahari Resorts and Conventions made its debut in Round Rock on November 12,2020,as planned,with an estimated
1,000 employees in 2021. The Round Rock location represents its fourth family resort and convention center. The
authentically African-themed Kalahari Resorts and Convention Center features 975 well-appointed guest rooms,full-service
amenities, fully equipped fitness centers, on-site restaurants, unique retail shops, state-of-the-art 150,000 square-foot
conference center,and a 200,000 square-foot indoor/outdoor water park.This opens up new opportunities for Round Rock
and will provide substantial property tax revenues and diversify the local economy and available employment opportunities.
Round Rock also has several higher education facilities, many of which focus on healthcare disciplines.These institutions
of higher leaming include the Texas State University, Austin Community College, and Texas A&M Health Science
Center.Texas State University opened its newest building,Willow Hall,on May 24,2018.This$67.5 million,107,000 square-
foot facility is home to the university's departments of communication disorders, physical therapy, and respiratory care
which moved from the university's San Marcos campus as the university continues to consolidate the College of Health
Professionals here in Round Rock. The 87th Texas Legislature, during its third special session in October 2021, passed
Senate Bill 52 authorizing$3.3 billion in tuition revenue bonds for the construction of public university and health institution
projects.Texas State University will receive an allocation from those funds for Esperanza Hall,the fourth academic building
for the College of Health Professions on the Round Rock Campus.
Austin Community College celebrated the opening of a $33 million, 45,000 square-foot expansion of its Round Rock
campus on September 26, 2018.The new expansion features the college's third state-of-the-art ACCelerator with more
than 140 computers,advanced science labs,classrooms,and a social staircase where students can gather to relax or study.
The new.expansion made room for the enrollment of an additional 1,000 students.
Round Rock will become the new home of Ametrine,Inc.,a camouflage systems manufacturer relocating from Maryland.
Ametrine will bring 140 new jobs with an average salary of$75,000 a year to a 4Q000 square-foot facility where they hope
to continue to grow the presence of the defense industry.The company will invest an estimated $8.6 million in business
personal property and real property improvements and must sign a lease at the facility for at least 10 years.
Switch, Inc., the exascale technology infrastructure corporation,will locate its Fifth Prime data center campus in Round
Rock.Switch will build a 1.5 million square-foot campus of highly resilient Tier 50 data center space next to Dell.This new
campus will be called"The Rock"and will continue with Switch's industry-leading commitment to sustainability by powering
this facility with 100 percent renewable energy. Switch, Dell, and FedEx are working together to develop exascale multi-
cloud edge infrastructure services to bring computer,storage,and connectivity to the network edge,and help customers
overcome performance barriers for latency-sensitive applications.
Kingslsle Entertainment, Inc., a digital technology company known for online role-playing games, will relocate its
headquarters to Round Rock to expand its footprint in the City.The relocation comes after Kingslsle was acquired by Media
and Games Invest. The company will lease a 33,000 square-foot facility for a minimum of three years to serve as its
consolidated central office. It will invest a minimum of $500,000 in real property improvements and business personal
property and create 150 diverse primaryjabs.
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Relevant Financial Policies
Accounting S st m and Controls
The General Fund Reserve Policy remains at 25%of operating expenditures.The City's Concentration Risk Fund,a separate
account to provic a additional surety on the City's highest sales tax remitters, remains in place. Working capital in the
Water/Wastewater Utility Fund is maintained at 33%of operating expenditures.Balances in excess of the above levels are
earmarked for fut ire uses or reduced to the target levels over an appropriate length of time.
In developing anc evaluating the City's accounting system,consideration is given to the adequacy of internal accounting
controls. Internal ccounting controls are designed to provide reasonable, but not absolute,assurance regarding:(1)the
safeguarding of i ssets against loss from unauthorized use or disposition and (2) the reliability of financial records for
preparing finarick I statements and maintaining accountability for assets.The concept of reasonable assurance recognizes
that:(1)the cost c f a control should not exceed the benefits likely to be derived and(2)the evaluation of costs and benefits
requires estimates and judgments by management.
All internal contr I evaluations occur within the above framework.We believe that the City's internal accounting controls
adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
Long-Term Fina icial
The City uses a 5 year planning model for the General Fund which projects revenues and expenditures over a long-term
period using assumptions about economic conditions and future spending scenarios.This model is developed internally
and focuses on the anticipated future funding necessary to meet the City's strategic goals.
The model takes a comprehensive approach to evaluating the long-term needs for property tax rates and other revenues
to provide for the maintenance and operations of the General Fund.The City's General Fund relies heavily on sales tax as a
revenue source. he sales tax is a less stable revenue source than the property tax but provides the taxpayers with more
discretion and a lower property tax rate. Due to this type of revenue makeup, the City estimates sales tax revenues
conservatively and introduces new programs somewhat more cautiously until projected revenue levels are attained.The
City is also more attentive to the health of its economy because of the reliance upon commerce to produce the sales tax.
The City's econo y is expected to generate approximately$84.4 million in sales tax revenue for fiscal year 2022, net of
sales tax rebates paid to Dell, Bass Pro Shops, and Kalahari Resorts and Conventions in accordance with economic
development agreements in effect.This amount includes the 0.5%or$22 million in additional sales and use tax for roads
and economic development.The remaining 1.5% is projected to generate $62.4 million for general operations, property
tax reduction,anc capital projects.
Dell continues to e a key driver for both the Round Rock and Central Texas region.To ensure good overall financial stability
for the City,a con entration risk account has been established to mitigate the City's annual net exposure to declining sales
tax from any single sales taxpayer that represents more than 5%of the City's net General Fund revenues.In fiscal year 2019,
the City Council a Jopted new financial policies to create balanced and reliable ongoing revenues by limiting Dell sales tax
revenues in the C.eneral Fund to not exceed 20%of budgeted sales tax revenues, with any excess being deposited to a
capital projects ft rid. In fiscal year 2021,as part of the fiscal year 2022 budget adoption process,City Council adopted a
revision to this fin ncial policy that further reduces reliance on Dell sales tax performance.The not-to-exceed 20%will drop
to 15%by fiscal y ar 2024.
The City sets utili y rates based on the cost of service,establishing an equitable rate structure for total cost recovery.The
utility rate model as updated during 2021 and the results showed no water rate increases were needed for the next several
years.The City's astewater rates are decreasing 8.8%in fiscal year 2022.The utility rate model showed the cost of service
for wastewater had decreased from the prior study projections due to the cost savings in taking over operations at the
regional wastewater plant. The Utility Fund continued to show cost savings by reducing its power costs, improving
operations, and lowering interest payments by refinancing its debt in prior years for both water and wastewater utility
services.
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The City planned ahead to ensure its utility system will serve the future citizens of Round Rock.With multiple contracts in
place with the Brazos River Authority,the City has secured its water supply through expected buildout in 2050.Water from
Lake Georgetown and Stillhouse Hollow Lake,in the Brazos River Basin,provide water to the City's current 52 million gallons
per day(MGD)water treatment plant.The City also secured water from Lake Travis in the Lower Colorado River Basin. In
order to treat water from Lake Travis,the City partnered with the cities of Cedar Park and Leander to form the Brushy Creek
Regional Utility Authority (BCRUA).The BCRUA system will ultimately pump and treat 105.6 MGD which meets all three
cities'supply needs through buildout.A deep-water intake and underground raw waterline tunnel are anticipated to start
construction in the summer of 2022 with projected completion in 2027.The City's cost share in the project is budgeted at
$73.5 million.
In 2009, in order to provide the most cost-effective wastewater services,the City partnered with the cities of Cedar Park
and Austin to purchase the Brushy Creek Regional Wastewater System (BCRWWS). The system is currently undergoing
improvements to increase capacity to collect and treat up to 30 MGD of wastewater.The City's portion will be approximately
20.1 MGD and will serve Round Rock through 2035. The City assumed operational control of the BCRWWS effective
October 1,2018.This has increased efficiencies with no net cost increase.
In December 2017, the City's Utility System and BCRUA both received an upgraded rating to AAA, the highest rating of
creditworthiness,from Standard and Poor's(S&P).This raised rating reflects the stability of the City's utility system.S&P
also noted that the system had good financial management policies and practices. In October 2018, the City's General
Obligation(GO)bonds also received an upgraded rating to AAA;this rating was affirmed in April 2021.Round Rock is one
of only eight(8)cities in Texas with AAA ratings for both GO and Utility debt.The upgrade"reflect(ed] Round Rock's very
strong economy and maintenance of a strong financial position ... (and)very strong management, with strong financial
policies and practices",according to S&P.
Prospects for the Future
As we look to the future,there are several key initiatives in process now that will shape the development of Round Rock
for the next decade.The City is leveraging available resources to attract industries from across the globe to strengthen its
property tax and sales tax bases.Significant investment in the medical industry including several state-of-the-art medical
facility expansions,combined with the impact of multiple higher education centers,will provide community development
and unlimited opportunities. Not only will these initiatives shape the physical development of the City, but they will also
influence the knowledge base and creativity found in the community.
In June 2020,the Round Rock City Council adopted Round Rock 2030 as its comprehensive plan for the next decade.The
nationally recognized award-winning plan was crafted over two years, with extensive community input.The Round Rock
2030 establishes a set of land use and development policies, including a Future Land Use Map and location criteria for
specific land uses. With the City's natural commercial attractiveness, a strong economic development plan and a
strengthening economy,projections for the future remain positive.
Awards and Acknowledgments
The Government Finance Officers Association of the United States and Canada(GFOA)awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Round Rock,Texas for its annual comprehensive financial report for the
fiscal year ended September 30,2020.This was the thirty-fifth consecutive year that the City has achieved this prestigious
award.To be awarded a Certificate of Achievement,a government must publish an easily readable and efficiently organized
annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.We believe that our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
In addition,the City of Round Rock also received the GFOA's Distinguished Budget Presentation Award for its annual budget
document for the fiscal year beginning October 1, 2020.To qualify for the Distinguished Budget Presentation Award,the
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government's budget document had to be judged proficient as a policy document, a finan6al plan, an operations
guide, and a communications device.
Additionally, the GFOA awarded the City a Certificate of outstanding Achievement in Popular Annual Financial
Reporting for the;fiscal year ended 'September 30, 2020.. This award recognizes the City's ability to extract information
from their annual comprehensive financial report to produce high quallity popular annual financial reports specificaIlly
designed to be readily accessible and easily understandable to the general public and other interested parties without
a background in public finance and then to recognize individual governments that are successful in achieving that goal.
During fiscal year,2021, GFOA awarded the City the "Triple Crown" award which recognized ROUnd pock for receiving aH
three GFOA awards for fiscal year 2010; the Certificate of Achievement for Excellence in Financial Reporting Award;
the Distinguished, Budget Presentation Award; and the Certificate of Outstanding Achievement in Popular Annual
Financial Deport.
The City's investment policy was awarded the Certificate of Distinction by the Government Treasurers' Organization of
Texas (G.i"O..l.) in January 2020. This is the second consecutive period the. City has received this distinction. This
certification recognizes the investrnent policy for meeting strict criteria in safeguarding the City's investments and is good
for a two-year period.
The City of Round Rock has earned all five Transparency Stares from the Texas Comptroller's Office recognizing the City's
efforts to make information on the City's traditional finances, debt obligations, public pensions, economic developrnent,.
and contracts and procurement transparent and readily available.The City of Round Rock is one of only 12 cities in Texas
to earn all five stars.
The presentation of this report on a timely basis could not be accomplished without the efficient and dedicated services
of the entire staff of the Finance Department, We would like to express our appreciation to all members of the
Department who assisted and contributed to its presentation. Acknowledgment is also given to Whitley Penn, L.L.P. for
their valuable assistance in production of the report. We would also Irke tothank the Mayor and Council mernbers for
their commitmen,i in planning and conducting the financial operations of the City in a responsible and progressive
manner.
Respectfully submitted,
n/� r
Laurie Hadley
City Manager
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Susan L. Morgan, CPA
Chief Financial Officer
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8
CITY 4F ROUND ROCK, TEXAS
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September 30, 2020
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|NDEPEN DENT AUDITORS'REPORT
Tothe Honorable Mayor and
Members ofCity[ouncH
City ofRound Rock,Texas
Report omthe Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of C|h/ of Round Rock, Texas (the
"City"), as of and for the year ended September 30, 2021, and the related notes to the financial statements,which
collectIvely comprise the City's basic financial statements as listed in the table of contents,
Management's Responsibility for the Financial Statements
Management is responsible for the pir*pnration and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of intern:a| control relevant 1nthe preparation and fair presentation of financial
statements that are free from material misstatement,whether due fraud or error,
Auditor's Responsibility
Our responslbi|ity is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States ofAmerIca and the standards
applicable to finmndw| audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States, Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are freer of material misstaternent.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend onthe amditor'sjudgment,including the assessment ofthe
risks of mnatedaX misstatement of the financial statements, whether due to fraud or error, In making those risk
assessments,the auditor considers internal control relevant to the entity's preparation and falr presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectIveness of the entity's internal control. Accordingly, weexpress no
such opWom, An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as weUl as evaXaating the overall
presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
l�
( GLOBAL�m
To the Honora le Mayor and
Members of City Council
City of Round R Dck,Texas
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 30,2021,and the respective changes in financial position,
the respective budgetary comparison statements for the General Fund and the Round Rock Transportation and
Economic Development Corporation Fund, and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supp! mentary Information
Accounting principles generally accepted in the United States of America require that management's discussion
and analysis,arid pension information, and other post-employment benefits information, 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 cf the financial reporting for placing the basic financial statements in an appropriate operational,
economic, or Iristorical context. We have applied certain limited procedures to the required supplementary
information in accorclance 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 Jnformatin
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Ci Lys basic financial statements. The introductory section,combining and individual fund statements
and schedules, and statistical section are presented for the purposes of additional analysis and are not a required
part of the basid financial statements. The schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by U.S. Office of Management and Budget ("OMB"); Title 2 U.S Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards(Uniforin Guidance),and is also not a required part of the basic financial statements.
The combining and individual fund statements and schedules and schedule of expenditures of federal awards are
the responsibilfty of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, combir Ing and individual fund statements and schedules and schedule of expenditures of federal awards
are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductorf 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.
12
To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 7,2022,on our
consideration of the City's internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
WIf41eyZ.
Austin,Texas
February 7,2022
13
ti�
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
The discussion and analysis of the City of Round Rock's financial performance provides an overview and analysis of the
City's financial activities for the fiscal year ended September 30, 2021. It should be read in conjunction with the
accompanying transmittal letter and the accompanying basic financial statements.
Financial Highlights
• The assets and deferred outflows of resources of the City of Round Rock exceeded its liabilities and deferred inflows of
resources at September 30, 2021, by$1,040,613,589 (net position).Of this amount, $742,363,304(71.3%) is invested in
capital assets. Net position restricted for specific purposes totals $104,523,279 (10.0%). The remaining amount,
$193,727,006(18.7%)(unrestricted net position) may be used to meet the City's ongoing obligations to its citizens and
creditors.
• The City of Round Rock's total net position increased by$60,646,113.The increase can be attributed to$36.6 million of
operating and capital grants and contributions from both governmental and business-type activities,as well as increases
in general revenues.Year over year, property taxes increased $3.4 million, sales tax increased $12.0 million, and Hotel
Occupancy Tax(HOT)increased$6.9 million.Sales tax increased due to increases in the retail trade and utilities sales tax
categories. Retail sales tax was up 20.4% from the prior year.The increase in HOT is primarily due to the opening of
Kalahari Resorts&Conventions in November 2020.
• As of the close of the current fiscal year,the City of Round Rock's governmental funds reported combined ending fund
balances of$251,420,475,an increase of$91,904,271 in comparison to the prior year.The increase is due in part to$78.5
million of bonds being issued in fiscal year 2021,along with $27.4 million more revenue compared to fiscal year 2020.
This increase can be attributed to increased sales, property, and HOT taxes and charges for services.This is in addition
to a $28.9 million decrease in current year expenditures compared to last year.The decrease in expenditures is mostly
related to capital projects. Unassigned fund balance of$58,913,029, or 23.4%of the total fund balance, is available for
spending at the government's discretion.
• At the end of the current fiscal year,the unassigned fund balance for the General Fund was$58,913,029,or 51.1%of the
total General Fund expenditures. The City's fund balance policy requires the General Fund's fund balance to be a
minimum of 25%of expenditures,or$28,817,593.The General Fund's total fund balance was$59,290,439,which is 26.4%
more than the fund balance policy requirement.
• The City of Round Rock's total debt increased by$56,305,000 during the current fiscal year.The change can be attributed
to the issuance of certificates of obligation bonds,limited tax notes,and sales tax revenue bonds,along with the offset
of regularly scheduled debt principal retirements as more fully described in Note IV(F)to the financial statements.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Round Rock's basic financial statements.
The City's basic financial statements comprise of three components: (1) government-wide financial statements, (2) fund
financial statements,and (3) notes to the financial statements.This report also contains other supplementary 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 Round
Rock's finances,in a manner similar to a private-sector business.
The statement of net position presents information on all of the City's assets,deferred outflows of resources,liabilities,and
deferred inflows of resources with the difference reported as net position.Over time,increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City of Round Rock is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the most recent fiscal
year.All changes in net position are reported as soon as the underlying event giving rise to the change occurs,regardless
of the timing of related cash flows.Thus,revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods(e.g.,unavailable tax revenues and earned but unused vacation leave).
15
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
Both governmen wide financial statements distinguish functions of the City of Round Rock that are principally supported
by taxes and irate governmental revenues(governmental activities)from other functions that are intended to recover all or
a significant port on of their costs through user fees and charges(business-type activities).The governmental activities of
the City include g eneral government,public safety,public works,and culture and recreation.The business-type activities of
the City of Round Rock include water,sewer and stormwater utility,and a golf course.
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 Dr objectives.The City of Round Rock,like other local governments,uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into two
categories:governmental funds and proprietary funds.
Governmental ftinds
Governmental fu ds are used to account for essentially the same functions reported as governmental activities in the
government-wicif financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on the near-term inflows and outflows of spendable resources,as well as on balances of spendable
resources availabl a at the end of the fiscal year.Such information may be useful in evaluating a government's near-term
financing requirements.
Since the focus o governmental funds is more narrow than that of the government-wide financial statements, it is useful
to compare the in ormation presented for governmental funds with similar information presented for governmental activities
in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the
City's near-term f nancing decisions.Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenc itures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental fun s and governmental activities.
The City of Rourid Rock maintains 13 individual governmental funds. Information is presented separately in the
governmental fur ds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in
fund balances for the General Fund,the Debt Service Fund,the Round Rock Transportation and Economic Development
Corporation(RRT DC)Fund,the Debt-Financed Capital Projects Fund,and the Self-Financed Construction Fund,all of which
are considered to be major funds.Data from the other eight(8)governmental funds are combined into a single,aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in the report.
The City adopts a i annual appropriated budget for its General Fund.A budgetary comparison statement has been provided
for the General FL nd to demonstrate compliance with the budget.
Proprietary fun
The City of Roun I Rock maintains two different types of proprietary funds. Enterprise funds are used to report the same
functions presented as business-type activities in the government-wide financial statements.The City uses enterprise funds
to account for its Arater,sewer,and stormwater utility,and for its golf course.
Internal service fu ds are an accounting device used to accumulate and allocate costs internally among the City's various
functions.The Ci r uses an internal service fund to account for its self-funded health insurance program and funding of its
other post-employment benefits (OPEB) liability as of September 30, 2021.The net income (loss) of the Internal Service
Fund is allocated between governmental and business-type 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 water,sewer,and stormwater utility,and for
the golf course.The water,sewer and stormwater utility is considered a major fund of the City.Since the Golf Course Fund
16
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
is the only remaining enterprise fund,it is presented separately even though it does not meet the criteria of a major fund
in GASB Statement No.34.The Internal Service Fund is a single presentation in the proprietary fund financial statements.
Notes to the Financial Statements
The notes provide additional information that is essential to fully understanding the data provided in the government-wide
and fund financial statements.
Other Information
The combining statements, referred to earlier, in connection with nonmajor governmental funds and individual fund
schedules are presented immediately following the notes to the financial statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary
information concerning the City's progress in funding its obligation to provide pension and OPER benefits to its employees.
Required supplementary information can be found beginning on page 94 of this report.
Government-wide Financial Analysis
Net position is a useful indicator of a government's financial position. For the City of Round Rock, assets and deferred
outflows of resources exceeded liabilities and deferred inflows of resources by$1,040,613,589 as of September 30,2021.
The largest portion of the City's net position, $742,363,304 (71.3%) reflects its investments in capital assets (e.g., land,
buildings and improvements,improvements other than buildings,machinery and equipment and construction in progress),
less any debt used to acquire those assets that is still outstanding.The City uses these capital assets to provide services to
its citizens,consequently,these assets are not available for future spending.Although the City's investment in 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 cannot be used to liquidate these liabilities.
An additional portion of the City's net position, $104,523,279 (10.0%) represents resources that are subject to external
restriction on how they may be utilized.Restricted net position increased $64.7 million,or 162.7%,compared to the prior
year.Restricted net position for the governmental activities increased$69.3 million,a direct result of the City's issuance of
bonds to reimburse the City for contributions towards the Kalahari Convention Center and onsite and offsite improvements.
The$4.6 million decrease in restricted net position for business-type activities is a result of$0.5 million in drainage revenue
bonds being liquidated on eligible projects and $3.8 million in utility impact fees used to reimburse impact fee eligible
capital project costs.The remaining balance is unrestricted net position of$193,727,006 which may be used to meet the
City's ongoing obligations to citizens and creditors.
As of September 30,2021,and 2020,the City was able to report positive balances in all three categories of net position,
both for the City as a whole,as well as for its separate governmental and business-type activities.
17
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
Net Position
(in thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Current and other assets $ 289,473 $ 194,482 $ 241,771 $ 218,756 $ 531,244 $ 413,238
Capital assets 696,33,6 685,504 377,927 365,583 1,074,263 1,051,087
Total assets 985,809 879,986 619,698 584,339 1,605,507 1,464,325
Deferred outflows of resources 17,204 16,692 5,941 6,044 23,145 22,736
Long terra liabilities 391,986 326,622 75,914 79,542 467,900 406,164
Other liabilities 64,694 61,732 46,942 29,764 111,636 91,496
Total liabilities 456,680 388,354 122,856 109,306 579,536 497,660
Deferred inflows Of resources 7,482 8,302 1,020 1,132 8,502 9,434
Net position:
Net investrnent in capitaV assets 432,349 442,969 310,014 294,760 742,363 737,729
Restricted 92,773 23,472 11,751 16,315 104,524 39,787
Unrestricted 13,729 33,582 179,998 168,869 193,727 202,451
Total net position $ 538,851 $ 500,023 $ 501,763 $ 479,944 1,040,,614 $ 979,967
Total Net Position
Governmental & Business-Type Activities
(in millions)
$1.,200
$1,obo
o Unrestricted
�� i ��
$800 rIil Restricted'!
1
$600 Net investnient
in,capital assets
$400
$200
2017 2018 2019, 2020 2021
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
Analysis of Changes in Net Position
The table below summarizes the changes in the City's net position from its activities for the fiscal year ended
September 30,2021,with comparisons to the previous year.
Changes in Net Position
(in thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services $ 11,000 $ 10,998 $ 64,125 $ 63,495 $ 75,125 $ 74,493
Operating grants and
contributions 4,262 3,742 - - 4,262 3,742
Capital grants and contributions 10,055 9,464 22,289 18,444 32,344 27,908
General revenues:
Property taxes 68,187 64,745 - - 68,187 64,745
Franchise taxes 6,808 7,060 - - 6,808 7,060
Sales tax 90,407 76,362 - - 90,407 78,362
Hotel occupancy tax 11,003 4,112 - - 11,003 4,112
Public service taxes 868 621 - - 868 621
Investment earnings and other 12,651 9,082 2,364 4,011 15,015 13,093
Total revenues 215,241 188,186 88,778 85,950 304,019 274,136
Expenses:
General government 35,906 27,468 - - 35,906 27,468
Public safety 64,976 64,152 - - 64,976 64,152
Public works 43,589 38,606 - - 43,589 38,606
Culture and recreation 26,874 26,356 - - 26,874 26,356
Interest on long-term debt 10,264 9,382 - - 10,264 9,382
Water and sewer utility - - 58,063 54,000 58,063 54,000
Golf course - - 3,700 2,819 3,700 2,819
Total expenses 181,609 165,964 61,763 56,819 243,372 222,783
Increases in net position before
transfers 33,632 22,222 27,015 29,131 60,647 51,353
Transfers 5,196 4,058 (5,196) (4,058) - -
Increase in net position 38,828 26,280 21,819 25,073 60,647 51,353
Net position-beginning 500,023 473,743 479,944 454,871 979,967 928,614
Net position-ending $ 538,851 $ 500,023 $ 501,763 $ 479,944 $1,040,614 $ 979,967
Governmental Activities
During the current fiscal year,governmental activities increased the City's net position by$38,827,913,or 64.0%of the total
increase in the net position of the City over the prior year.Key factors for the increase in net position are as follows:
Revenues
• Amounts received for property taxes increased from last year by 5.3% primarily due to an increase in taxable assessed
value from$14.6 billion for fiscal year 2020 to$15.4 billion for fiscal year 2021.The fiscal year 2021 tax rate of$0.439000
19
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
is 3.2% above the no-new-revenue rake (formerly known as the "effective tax rate"), $0.425550. Property tax makes up
35.9`"r�of total general revenues.
• Sales tax collections of $90.4 million increased 15.4%, compared to prior year. Dell remains one of the City's top sales
taxpayers for fiscal year 2021. Retail trade sales tax was 20.4`"/ Richer than collections in the prior year. This growth
cornbined with strong underlying growth in other city businesses led to the increase in sales tax collections.
• HOT revenues totaled $11.0 million compared to $4.1 million in the prior year.This large increase is primarily due to the
opening of Kalahari Resorts and Conventions in November 2020. Prior year HOT revenues were down due to COViD-19.
• Charges for services remained flat. General government charges for services decreased $1.7 million due to increased
contract and claims expense in the self-funded health insurance fund"while cultLrre and recreation charges for services
increased $1.7 million, the result of COVID-19 restrictions being lifted, and the City's recreation programs, facilities" and
rental's resumed normal operations.
e Grants and contribution revenues increased $1.1 rrrillion over the prior year.This increase is clue to reimbursement of
CC7WD-19 eligitAe expenses from Coronavirus Relief Funds (CARES) and Coronavirus Response 8r Relief SLipp lemental
Appropriations Act (CRRSA,)from the U.S.Department of Transportation„as well as capital related contributions,
• Unrestricted investment earnings and other general revenues increased $3.6 million, a direct result of sales tax and HOT
rebates from the State offset by a decrease in investinent income of$1.8 million compared to the prior year.
Revenues by Type- Governmental Activities
Sales taxes
4M% hgotei oeeu,pancy tax
5,t%
i�'f6!�r'P � uufl lllni
Public service taxes
0A%
Investnient earnings
5.9%A
Charges for services
Franchise taxes..,�� � � � �I�,��;�%��� „_. Operating grants
rD and contributions
" capital grants
Property taxes r�'a �, ����,,� and contributions
313% 4.7%,
Expenses
Expenses for governmental activities for the City totaled $181,608,760 for the year ended September 30, 2021. Significant
factors are listed below
• General government costs increased $8.4 million from$27.5 million in 2020. to$35.9 million in 2021,an increase of 30.7`x,.
The increase can be attributed to an increase in economic development incentive payments, increased capital related
expenses, and bond issuance costs.
• Public safety prograrn costs including police and fire department activities totaled about$65.0 million, or 35.8%of total
expenses for governmental activities. Total costs Increased 1.3%, over the prior year, due largely to personnel costs
relating to Fire overtime due to deployments, COVIE1.19,and the winter storm.
20
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
e Public works program costs increased $5.0 million,or 12.9%,compared to prior,year.The increase is a result of increased
capital-related expenses, specifically expenses related to the Kalahari Resorts and Convention Center project that are not
considered the City's assets.
a Culture and recreation increased $0.5 million from $26.4 million in 2020 to $26.9 million, or 2,0%, in 2021. This increase
is due to the increase in demand for recreational services from the prior summer.
Expenses - Governmental Activities
(in thousands)
"'M
52D,000 I
Goneal Pobfik iafety Public w(raks CjAkure and Irrytemst Gn
gu,e......em recrva6on Ion lerr u debt
.2021 (it 20 0
..............................................—-—-—
Business-Type Activities
Business-type activities increased the City's,net position by$21,818,200 or 36.0%of the total growth in the net position of
the City over the prior year.This increase was due to $223 rnillion in caipitai grants and contributions.Additionafly, charges
for services were LIP$0.6 million and expenses increased $4.9 million over the prior year.Key factors for the increase in net
position are as follows:
Revenues
The City's water, sewer and storunwater utility continues to show increases in the nurnber of customers and operating
revenues.Scheduled uses of irnpact fees received have allowed current rates to remain stable while stili providing adequate
times coverage of utility bonded debt service.Comparative data:for the past two fiscal years is presented as follows:
2021 2020
Operating revenues $ 60,578,478 $ 60,389,659
Operating income 5,169,141 9,199,641
Income available for debt service 28,112,944 32,687,905
Annual debt service 6,073,581 6,082,481
Coverage 4.63 5.37
21
�
CITY OFROUND ROCK, TEXAS
� M4NAGiEMENTS DISCUSSION AND ANALYSIS
� SEPTEMBER 30, 20211
� Revenues-Business-TypeA^tivitiey
Capital grants
|
and
� �covtribudons
25.1%
Cllarj.,,e»fn,
� se,rmces .
� 72.2%
|nvestnient
earnings
2.7%
�
Expenses
Expenses of the busiuess-typeactivities increased $4.9 million over the prior year. The increase is a result ufwater and
s1ormwatercapital projects that were delayed,due to the pandennic and an increase in operating costs for she golf course.
Empenses- Business-Type Activities
(in thousands)
530 000
x 202 wr,2020
Financial A | | fthe Government's Funds,
As rioted earlier,tl,le Oty of Round Rock uses fund aCCOUnting to ensure and demonstrate compliance with fina rice..related
legal requirements.
Governmental Funds,�
The focus of ovenmema| funds is to provide information on neer-tenni inflows, ourOows 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 fisca;
year.
For the fiscal year nded September30, 2021' the City's governmental funds reported combined ending bnd balances of
$251'420,475, This isanincrease of$919million, or57.61/6over the prior year, Umass[gnadbndbalance iy $S8.913.029. o/
�
�
22
�
CITY OF ROUND ROCK,TEXAS
MANAGiE|NENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
app/mximaxa|y2I4136 of the total fund balance amount, isavailable for spending at the City's discretion. $2'496,916 is
assigned ioculture and recreation while $43^621'361 ofthe fund balance iycommitted tneither capita|projects orspecial
revenue projects/programs,The remainder of fund baUance is restricted or non-spenclable to in6cate that it is not available
for new spending because it has already been committed to (1) pay debt service of $7,901.595. (2) fund authorized
construction of$124,312,278, (])other restricted purposes of$12.39Z.088o/(1) non-spendable of$1^783'208.
Fund Balance Type - Governmental Funds
Committed
' 173%
Assigned
l0%
Restricted
Unassigned
57.5% _ ~
23.5%
-- - won,nemoan:e
03%
The General Fund is the chief operating fund of the City. At the cVose of the curncnt fiscal year, the fund balance of the
General Fund reached $59'290,439. of which $58,913,029. or 99.49&, of the total amount is unassigned. To measure the
general fund's Hquidity, it isuseful 10compare unassigned fund balance tototal general fund expenditures. Unassigned
fund ha[amcerepresented 51.|96oftotal ganmmUfundexpenditures.
During the current fiscal year, the fund ba�amceo[the General Fund decreased by$5B'457due toabudgeted transfer to
the Self-Financed Construction Fund for one-tir"ne,capital projects.The General Fund's total revenues exceeded the budget
by $2.425.029. The City continues to budget revenues consemativeiy but With the continued Population growth and
increase in property values, the property taxes, and sales tax revenues continue to surpass budgeted projections,
The Debt Service Fund had a total fund balance of$S,S19,166 at the end of the fiscal year,ah of which is restricted for the
payment of debt set-vice. The net increase in fund balance during the year was $439,07S. Debt service expenditure
requirements increased by$11,976,090 during the fiscal year and were adequately funded by the debt service pot-tion of the
property tax rate.
The fund balance ofthe RKTEQ[ Fund was $76'87S.651' anincrease of $66313'517compared Vothe prior year. In fiscal
year 2020, the City contributed towards the Kalahari Convention Center and onsite and offsite improvements to
accommodate the Kalahari Resorts and Conventions. The City's contributions, totaling $70.0 mRNi0n, were reimbursed in
the current fiscal year from debt proceeds.
The fund balance of the Debt-Financed Capital Projects Fund was $49,146,230, an increase of$1,772,544 compared to the
prior year.This is a reSUlt of the issuance of certificates of obligation bonds for road improvernent and expansion Projects,
offset bycosts incurred onroad and expansion projects during the 6scaUyea�
The fund balance ofthe Self-Financed Construction Fund was $40,2GS.O36. amincrease of $20,OOi|33 compared to the
prior year. The increase is the esmft of budgeted transfers for authorized projects approved by [ig/ Council and excess
saUes tax revenues of$16.0 million.The City has a policy that sales tax received from DeU, net ofrebate, are not to exceed
20% of budgeted uaXes tax revenues in the Geoer^U Fund. Any excess funds will be deposited in the Self-Financed
Construction Fund for pay-asyuu-ga' one-timecapita| expenditures or projects,
23
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
Enterprise Fund
The City's enterprise fund statements provide the same type of information found in the government-wide financial
statements,but ir more detail.At the end of the fiscal year,total net position of the enterprise funds totaled$500,223,159,
an increase of S21,778,3111 over the prior year. Unrestricted net position of the funds totaled $178,458,445 at
September 30,2021.The unrestricted net position represented 35.7%of the enterprise funds'total net position.
The Water and Sewer Fund's net position increased $21,970,391 over the prior year due to infrastructure and impact fee
contributions. O rating revenues totaled $60,578,478, compared to $60,389,659 in the prior year. Operating expenses
were $55,409,337, an increase of $4,219,319 over the prior year.The increase is a result of consulting and engineering
services related tc regional water and stormwater projects that were delayed due to the pandemic.This includes completion
of an updated water and wastewater masterplan that will project the future capital water and wastewater needs of the
Utility Departmer t for the next five years.
The Golf Course Fund ended the year with a net position of$9,866,732.Operating revenues totaled $3,506,792,a 30.7%
increase for the year, compared to $2,684,066 in the prior year. Rounds of golf played increased to 57,336 compared to
52,053 in the prio year.With the COVID-19 pandemic still a real threat in fiscal year 2021,golf is an activity that can easily
be played while maintaining social distancing. Operating expenses were $3,699,848, which is $881,359 higher than the
previous year.ThE increase in golf rounds played increased the amount of maintenance costs for the course and equipment.
General Fund Budgetary Highlights
One budget amer dment was taken to City Council for the General Fund for the year ended September 30,2021.The budget
amendment added one (1) full time equivalent (FTE) to help meet immediate staffing needs for the Library's new
bookmobile program. The budget amendment also restored COVID-19 budget cuts for Library, Parks and Recreation,
Police,and Trans ortation to help meet their operating needs.The amendment also transferred $5.3 million to the Self-
Financed Construction Fund for several delayed commitments: Kinningham House, Parks and Recreation holiday
decorations, Planiiing and Development Services software replacement,automated external defibrillators in Fire Services,
and restoring the Facility Maintenance and Information Technology replacement funds.
Capital Assets and Debt Administration
Capitai Assets
The City of Round Rock's investment in capital assets for its governmental and business-type activities as of September 30,
2021, amounted to $1,074,263,064 (net of accumulated depreciation). This investment includes land, buildings and
improvements,irr provements other than buildings(including infrastructure), machinery and equipment,and construction
in progress.
Major capital asse events for the year ended September 30,2021,included the following:
Downtown Im ro amen
• Construction is inderway on the Northeast Downtown Improvements project with$6.2 million spent to date.
• Construction is inderway on the new Downtown Parking Garage with$4.4 million spent to date.
• Construct4wsmpleted on the Downtown Streetscape Improvements project at a cost of$2.8 million.
Fa ili I r• Constructompleted on the new Fire Station#3 at a cost of$6.3 million.Of the$6.3 million spent, $5.9 million
was funded from the 2017 General Obligation(GO)bonds.
• Construction is underway for the new library with $12.8 million spent to date. Of this $12.8 million, $1.5 million was
funded from the 2014 GO bonds.
24
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
Kalahari Convention Center and Road Improvements
• Construction was completed on the Kalahari family resort,water park,and convention center with$40.0 million spent by
the City on the convention center.
• Onsite roadway improvements were completed at a cost of$15.0 million.
• Offsite roadway improvements were completed at a cost of$15.0 million.
Park Improvements and Trails
• Design is underway on the new Kinningham House with$154,000 spent to date.
• Construction was completed on the Old Settlers Park Yonders Point at a cost of$811,000.
• Expansion of other city-wide trails is underway at an estimated cost of$19.6 million with$6.8 million spent to date.Of
this$6.8 million,$5.2 million was funded from the 2014 and 2017 GO bonds.
• Neighborhood park improvements, upgrades to comply with the American with Disabilities Act (ADA), and facility
improvements are underway and at various stages of completion. Completed projects totaled $669,000 while
construction in progress at year-end approximated $403,000. Of the $669,000 in completed projects, $134,000 was
funded from the 2017 GO bonds.
Transportation Improvements
• Major arterial,signal,and road projects for transportation are underway and at various stages of completion.Completed
projects totaled$13.0 million while construction in progress at year-end approximated$25.5 million.
• Various neighborhood street improvement projects were completed at a cost of$3.3 million.
• Developers contributed$6.2 million for transportation infrastructure improvements.
Water.Wastewater,and Stormwater Improvements
• Various water pump station improvements were completed at a cost of$7.6 million and similar projects were in progress
with$122,000 spent to date.
• Various water and wastewater line improvement projects were completed and placed in service at a cost of$5.8 million
and similar projects were in progress with$5.5 million spent to date.
• The City completed stormwater projects in the Greenfield and Oak Bluff neighborhoods at a cost of$2.1 million.
• Various additional stormwater improvement projects are in process with$1.2 million spent to date.
• Developers contributed$12.5 million for water,sewer,and stormwater system infrastructure improvements.
• The City has partnered with the cities of Cedar Park, Austin, and Leander on the Brushy Creek Regional Wastewater
Treatment Plant Expansion project with estimated completion in 2023.Construction is underway with$9.2 million spent
to date by the City.
Capital Assets
(in thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Land $ 114,073 $ 110,451 $ 8,483 $ 8,453 $ 122,556 $ 118,904
Buildings and improvements 987,211 912,287 581,135 552,090 1,568,346 1,464,377
Machinery and equipment 89,892 89,079 17,574 18,380 107,466 107,459
Accumulated depreciation (537,865) (518,217) (252,515) (232,351) (790,380) (750,568)
Construction in progress 43,025 91,904 23,250 19,011 66,275 110,915
Total $ 696,336 $ 685,504 $ 377,927 $ 365,583 $ 1,074,263 $ 1,051,087
Additional information on the City of Round Rock's capital assets can be found in Note IV(E)to the financial statements.
25
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
Long-Term Deb
At the end of the current fiscal year,the City of Round Rock had total debt outstanding of$397,805,000.Of this amount,
$278,205,000 con iprises debt backed by the full faith and credit of the City.The remainder of the City's debt is secured
solely by specifiec revenue sources(i.e.,revenue bonds).
During the currer t fiscal year, the City of Round Rack's total debt increased by $56,305,000. Regularly scheduled debt
principal was retir d during 2021.The City issued venue tax and hotel occupancy tax revenue refunding bonds,series 2021,
which resulted in reduced debt service payments of$1,268,548 and an economic gain of$821,993.Additionally, the City
issued combinati n tax and limited revenue certificates of obligation, series 2021A — $27,460,000; series 20218 —
$13,745,000;and eries 2021C—$13,810,000.The City also issued$2,770,000 limited tax notes,series 2021 and$20,695,000
senior lien sales lax revenue bonds, taxable series 2021. Details of the refunding and new bond issues can be found in
Note IV(F)(4)tot a financial statements.
Long-Term Debt
(in thousands)
Governmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020
General obligati n bonds $ 131,555 $ 141,220 $ - $ - $ 131,555 $ 141,220
Certificates of ot ligation 140,250 88,025 - - 14Q250 88,025
Limited tax note 6,400 4,500 - - 6,400 4,500
Hotel tax revenu bonds 8,065 9,780 - - 8,065 9,780
Sales tax revenue bonds 44,670 27,785 - - 44,670 27,785
Water and waste Nater
revenue bonds - - 66,865 7Q190 66,865 70,190
Total $ 330,940 $ 271,310 $ 66,865 $ 70,190 $ 397,805 $ 341,500
The City of Round Rock benefits substantially in reduced interest casts resulting from the bond rating by Standard&Poor's
of AAA for both General Obligation and the Utility Revenue bonds.
There is no direct debt limitation in the City Charter or under state law.The City operates under a Home Rule Charter
(Article XI,Section 5,Texas Constitution),approved by the voters,that limits the maximum tax rate,for all City purposes to
$2.50 per$100 assessed valuation.Administratively,the Attorney General of the State of Texas will permit allocation of up
to$1.50 of the$2.50 maximum tax rate for general obligation debt service.The revenues from this maximum tax rate would
be sufficient to co ier the debt service on over$2.6 billion of bonds.Of the maximum tax rate for debt service of$1.50,the
City uses$0.1427,or 9.5%.Of$68,133,164 levied in property taxes for the fiscal year ended September 30,2021,99.69%of
taxes levied were ollected during the fiscal year.The City is conservative in how it issues debt and has adopted a"pay as
you go"philosopt y by using excess cash funds to fund current projects and issuing debt only when deemed necessary.
Additional informi ition on the City's long-term debt can be found in Note IV(F)to the financial statements.
26
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2021
Economic Factors and Next Year's Budgets and Rates
The development of the City's budget is guided by several factors including the Council's Strategic Goals, prevailing
economic conditions,and the continuing need to provide basic and improved customer services for a growing population.
The fiscal year 2021-2022 budget adopted by the City Council adheres to the City's financial policies and preserves the
City's strong financial position while providing excellent levels of service. During the creation of the 2021-2022 budget
process the City Manager and Executive team focused on various budget drivers in the decision-making process.
• Addressing Council's Strategic Goals
• Meeting the demands of growth with additions to maintain service levels
• Biennial citizen survey results
• Debt payments for new programs
• Competitive employee compensation and benefits
• Maintenance of parks,facilities,and streets
• Compliance with financial policies
Revenue assumptions,in general for fiscal year 2021-2022,are expected to follow the growth curve of new jobs,population,
retail sales activity,and new housing developments.
The City's economy is expected to generate approximately $84.4 million in sales tax revenue for fiscal year 2022. This
amount includes the 0.5% or $22.0 million in additional sales and use tax for roads and economic development. The
remaining 1.5%is projected to generate$62.4 million for general operations,property tax reduction,and capital projects.
The fiscal year 2022 certified taxable property value for Round Rock is$17.7 billion,an increase of 14.9%from last year's
$15.4 billion.The adopted property tax rate for fiscal year 2022 is$0.397000 per$100 of valuation.The tax rate is an increase
of 1.0 cent over the no-new-revenue rate of$0.387441,and well below the voter approval rate of$0.426786.The 1.0 cent
increase over the no-new-revenue tax rate allows the City to provide the planned additional funding for roads.With an
adopted rate of$0.397000,the City continues to have one of the lowest tax rates in Central Texas and is among the lowest
rates in the state for medium-sized cities.
The Water and Wastewater Utility operations are funded primarily through user fees.The City's utility infrastructure and
service delivery systems have been carefully planned and have sufficiently met demand for a growing customer base.Water
sales are conservatively estimated using customer base projections,while at the same time taking into account changing
weather conditions.Water conservation and drought contingency programs continue to help the City conserve existing
water sources.There are no utility rate increases budgeted for fiscal year 2022.The City has not increased water rates since
October 2018 and wastewater has not increased since 2016.
Requests for Information
This financial report is designed to provide citizens,taxpayers,customers,investors,and creditors with a general overview
of the City's finances and to show the City's accountability for the money it receives.If you have questions about this report
or need additional financial information,contact the Chief Financial Officer,City of Round Rock,221 East Main Street,Round
Rock,Texas 78664.
27
28
BASIC FINANCIAL STATEMENTS
29
CITY OF ROUND ROCK,TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30,2021
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 34,266,566 $ 43,868,331 $ 78,134,897
Investments 101,057,682 134,442,639 235,500,321
Receivables(net of Ilowance for uncollectibles)-
Property taxes 430,365 - 430,365
Accounts and other 11,606,916 25,820,728 37,427,644
Accrued interest 72,822 1,389,830 1,462,652
Intergovernmental - 3,008,445 3,008,445
Grants 1,890,636 - 1,890,636
Interfund (1,539,861) 1,539,861 -
Inventories 285,779 558,085 843,864
Prepaid items 1,584,929 430,119 2,015,048
Restricted assets-
Cash and cash equivalents 39,540,855 5,509,341 45,050,196
Investments 97,759,939 8,108,548 105,868,487
Property tax receivable 238,317 - 238,317
Accounts and other 2,225,691 - 2,225,691 .
Accrued interest 51,919 4,637 56,556
Investment in joint venture - 17,090,044 17,090,044
Capital assets-
Land and construction in progress 157,097,376 31,733,372 188,830,748
Capital assets,net of accumulated depreciation 539,238,334 346,193,982 885,432,316
Total assets 985,808,265 619,697,962 1,605,506,227
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refundings 2,384,306 3,956,055 6,340,361
Deferred outflows re ated to pensions 12,803,561 1,710,135 14,513,696
Deferred outflows re ated to OPEB 2,016,120 274,926 2,291,046
Total deferred outflows of resources 17,203,987 5,941,116 23,145,103
The accompanying n tes are an integral part of this financial statement.
30
Governmental Business-Type
Activities Activities Total
LIABILITIES
Accounts payable $ 14,877,091 $ 34,451,147 $ 49,328,238
Accrued payroll 2,682,518 354,715 3,037,233
Unearned revenue 18,043,041 5,427,501 23,470,542
Accrued interest payable 2,095,533 431,272 2,526,805
Customer deposits - 1,892,846 1,892,846
Due within one year
Bonds,notes,leases,compensated absences 26,995,630 4,384,562 31,380,192
Due in more than one year
Net pension liability 35,020,987 4,775,590 39,796,577
Total OPEB liability 17,951,408 2,447,920 20,399,328
Bonds,notes,leases,compensated absences 339,013,682 68,690,260 407,703,942
Total liabilities 456,679,890 122,855,813 579,535,703
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 6,859,903 935,441 7,795,344
Deferred inflows related to OPEB 621,890 84,804 706,694
Total deferred inflows of resources 7,481,793 1,020,245 8,502,038
NET POSITION
Net investment in capital assets 432,348,991 310,014,313 742,363,304
Restricted for-
Debt service 6,044,379 209,605 6,253,984
Capital projects 74,336,411 11,540,796 85,877,207
Hotel-motel tax 10,222,462 - 10,222,462
Public safety 735,896 - 735,896
General government 1,433,730 - 1,433,730
Unrestricted 13,728,700 179,998,306 193,727,006
Total net position $ 538,850,569 $ 501,763,020 $ 1,040,613,589
31
CITY OF ROUND ROCK,TEXAS
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2021
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmentalactivities:
General government $ 35,906,343 $ 2,824,567 $ 4,207,076 $ -
Public safety 64,975,588 1,396,999 10,405 -
Public works 43,588,532 970,763 - 10,054,791
Culture and r creation 26,874,261 5,807,940 44,346 -
Interest on long-term debt 10,264,036 - - -
Total gove mental activities 181,608,760 11,000,269 4,261,827 1Q054,791
Business-type ctivities:
Water and sewer utility 58,063,832 60,618,367 - 22,288,498
Golf course 3,699,848 3,506,792 - -
Total business-type activities 61,763,680 64,125,159 - 22,288,498
Total primary government $ 243,372,440 $ 75,125,428 $ 4,261,827 $ 32,343,289
The accompanyi ig notes are an integral part of this financial statement.
32
Net(Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:
General government $ (28,874,700) $ - $ (28,874,700)
Public safety (63,568,184) - (63,568,184)
Public works (32,562,978) - (32,562,978)
Culture and recreation (21,021,975) - (21,021,975)
Interest on long-term debt (10,264,036) - (10,264,036)
Total governmental activities (156,291,873) - (156,291,873)
Business-type activities:
Water and sewer utility - 24,843,033 24,843,033
Golf course - (193,056) (193,056)
Total business-type activities - 24,649,977 24,649,977
Total primary government (156,291,873) 24,649,977 (131,641,896)
General revenues:
Taxes:
Property taxes, levied for general purpose 43,462,519 - 43,462,519
Property taxes,levied for debt service 24,724,843 - 24,724,843
Franchise taxes 6,808,434 - 6,808,434
Sales taxes 90,406,552 - 90,406,552
Hotel occupancy tax 11,003,127 - 11,003,127
Public service taxes 867,626 - 867,626
Unrestricted investment earnings and other 12,650,685 2,364,223 15,014,908
Transfers 5,196,000 (5,196,000) -
Total general revenues and transfers 195,119,786 (2,831,777) 192,288,009
Change in net position 38,827,913 21,818,200 60,646,113
Net position-beginning 500,022,656 479,944,820 979,967,476
Net position-ending $ 538,850,569 $ 501,763,020 $ 1,040,613,589
33
CITY OF ROUND ROCK,TEXAS
GOVERNMENTAL FUNDS BALANCE SHEET
SEPTEMBER 30,2021
Round Rock
Transportation
and Economic
Development
General Debt Service Corporation
Fund Fund Fund
ASSETS
Cash and cash equiva ents $ 16,412,191 $ - $ 99,746
Investments 48,392,275 - 304,216
Receivables(net of all Dwance for uncollectibles)-
Property taxe;,including interest and penalties 43Q365 - -
Accounts and other 7,858,390 - 156,295
Accrued inter st 42,330 - 210
Interfund - 10,882 -
Grants 489,495 - 1,074,621
Inventories 285,779 - -
Prepaid items 91,631 - -
Restricted assets-
Cash and cash equivalents - 5,508,284 19,249,635
Investments - 56,785,062
Receivables-
Property taxes,including interest and penalties - 238,317 -
Sales tax - - 2,225,691
Accrued interest - - 43,791
Total as ets $ 74,002,456 $ 5,757,483 $ 79,939,267
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES
Liabilities-
Accounts pay ble $ 8,873,552 $ - $ 3,687,348
Accrued payr II 2,629,525 - -
Interfund pay bles 1Q882 - -
Unearned rev nue 2,771,141 - 176,268
Total liabilities 14,285,100 - 3,863,616
Deferred inflows of resources-
Unavailable revenue-property taxes 426,917 238,317 -
Total de erred inflows of resources 426,917 238,317 -
Fund balances-
Nonspendabl 377,410 - -
Restricted-d bt service - 5,519,166 2,382,429
Restricted-a thorized construction - - 73,285,672
Restricted-h tel-motel tax - - -
Restricted-p iblic safety - - -
Restricted-general government - - -
Committed-general government - - -
Committed-capital projects funds - - 407,550
Committedculture and recreation - - -
Assigned—culture and recreation - - -
Unassigned 58,913,029 - -
Total fund balances 59,290,439 5,519,166 76,075,651
Total liabilities,deferred inflows of resources and
fund balances $ 74,002,456 $ 5,757,483 $ 79,939,267
The accompanying n tes are an integral part of this financial statement
34
Debt-Financed Self-Financed Other Total
Capital Projects Construction Governmental Governmental
Fund Fund Funds Funds
$ - $ 9,910,511 $ 4,685,603 $ 31,108,051
29,235,308 13,808,486 91,740,285
- - 430,365
- 952,231 8,966,916
11,944 12,509 66,993
- - 1 Q882
326,520 1,890,636
- - 285,779
1,405,798 - 1,497,429
13,317,346 - 1,465,590 39,54Q855
36,651,489 - 4,323,388 97,759,939
- - - 238,317
- - 2,225,691
7,032 - 1,096 51,919
$ 49,975,867 $ 4Q563,561 $ 25,575,423 $ 275,814,057
$ 829,637 $ 100,136 $ 533,264 $ 14,023,937
- - 52,993 2,682,518
- - 10,882
- 198,389 3,865,213 7,011,011
829,637 298,525 4,451,470 23,728,348
- - - 665,234
- - 665,234
1,405,798 - 1,783,208
- - - 7,901,595
49,146,230 - 1,880,376 124,312,278
- - 10,222,462 10,222,462
- - 735,896 735,896
- - 1,433,730 1,433,730
- - 881,812 881,812
- 38,859,238 1,989,706 41,256,494
- 1,483,055 1,483,055
2,496,916 2,496,916
- - - 58,913,029
49,146,230 40,265,036 21,123,953 251,420,475
$ 49,975,867 $ 40,563,561 $ 25,575,423 $ 275,814,057
35
CITY OF ROUND ROCK,TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
YEAR ENDED SEPTEMBER 30,2021
Total Fund Bala es-Governmental Funds $ 251,420,475
Amounts reportec for Governmental Activities in the Statement of Net Position are different
because:
Capital assets use in governmental activities are not financial resources and,therefore,are
not reported in th e funds.These assets consist of:
Land $ 114,072,773
Constructio i in progress 43,024,603
Building an improvements 987,211,249
Equipment 89,892,372
Accumulated depreciation (537,865,287)
Total capital assets $ 696,335,710 696,335,710
Deferred amount on refundings are deferred outflows of resources and,therefore,are not
reported in the fu ids. 2,384,306
Contributions to he pension plan after the measurement date are deferred outflows of
resources and,th refore,are not reported in the funds. 7,797,415
Pension actuarial osses(gains)are deferred outflows(inflows)of resources and,therefore,
are not reported ii i the funds. (1,853,757)
Contributions to the OPEB plan after the measurement date are deferred outflows of
resources and,the refore,are not reported in the funds. 527,421
OPEB actuarial los es(gains)are deferred outflows(inflows)of resources and,therefore,are
not reported in the funds. 866,809
Property tax reveriues collected in advance of the fiscal year to which they apply are
recorded as deferred inflows of resources in the funds and recognized as revenue of the
period to which they apply. 665,233
Internal service funds are used by management to charge the costs of self-funded insurance
to individual funds.The assets and liabilities of the internal service funds are included in
governmental acti Mies in the Statement of Net Position. 10,176,226
Unearned revenue associated with long-term economic development agreements are not
a current financial resource and,therefore,are not reported in the funds. (11,032,029)
Long-term receivable from the Crow Group Series,LLC for a forgivable loan associated with
an economic development project is not a current financial resource and, therefore,was
reported in the fui ids as an expenditure,and not as a receivable. 2,640,000
Accrued interest rayable in the governmental funds are not recognized because they are
not paid within th prescribed time period after year end. (2,095,533)
Some long-term Ii 3bilities are not due and payable in the current period and,therefore,are
not reported in the funds.They are detailed in Note III(A). (418,981,707)
Net Position of Governmental Activities $ 538,850,569
The accompany ng notes are an integral part of this financial statement.
36
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37
CITY OF ROUND ROCK,TEXAS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2021
Round Rock
Transportation
Debt and Economic
General Service Development
Fund Fund Corporation Fund
Revenues-
Taxes and franchise,including interest and penalties $ 100,208,484 $ 24,647,695 $ 25,108,759
Licenses,permits,and fees 2,402,843 - -
Charges for services 4,880,297 - -
Fines and forfeitures 1,027,327 - -
Intergovernme ital 3,103,417 - 1,574,912
Hotel occu panc y tax - - -
Contributions - - 2,118,058
Investment and other 5,226,654 34,682 708,960
Total revenues 116,849,022 24,682,377 29,510,689
Expenditures-
Current-
General gove rnment 24,547,018 - -
Public safety 59,445,458 - -
Public works 15,416,404 - 1,530,260
Culture and iecreation 15,861,492 - -
Debt service-
Principal reti ement - 20,148,502 -
Interest and fiscal charges - 10,367,705 -
Issuance cos s - 174,445 335,331
Capital projects - - 26,234,042
Total expe ditures 115,270,372 30,690,652 28,099,633
Excess(deficiency)of revenues over expenditures 1,578,650 (6,008,275) 1,411,056
Other financing sources(uses)-
Issuance of de - - 20,695,000
Issuance of refunding bonds - 5,560,000 -
Issuance of pre nium - 1,100,137 -
Payment to reft nded bond escrow agent - (6,482,675) -
Transfers in 6,257,264 6,281,080 51,889,619
Transfers out (8,359,371) (11,192) (7,682,058)
Total other financing sources(uses) (2,102,107) 6,447,350 64,902,561
Net change i fund balances (523,457) 439,075 66,313,617
Fund balances,October 1,2020 59,813,896 5,080,091 9,762,034
Fund balances,September 30,2021 $ 59,290,439 $ 5,519,166 $ 76,075,651
The accompanying n tes are an integral part of this financial statement.
38
Debt-Financed Self-Financed Other Total
Capital Projects Construction Governmental Governmental
Fund Fund Funds Funds
$ - $ 16,095,932 $ 191,140 $ 166,252,010
- 140,300 2,543,143
2,212,288 7,092,585
125,663 1,152,990
6,722,578 11,400,907
- 11,003,127 11,003,127
177,740 43,138 2,338,936
186,845 898,539 205,633 7,261,313
186,845 17,172,211 20,643,867 209,045,011
- - 6,777,896 31,324,914
- 59,445,458
- 16,946,664
4,069,652 19,931,144
- 20,148,502
- - - 10,367,705
669,705 46,126 - 1,225,607
10,664,350 8,983,158 1,659,171 47,540,721
11,334,055 9,029,284 12,506,719 206,930,715
(11,147,210) 8,142,927 8,137,148 2,114,296
55,015,000 2,770,000 - 78,480,000
- - - 5,560,000
5,659,644 276,869 - 7,036,650
- - - (6,482,675)
1,833,107 9,026,277 686,192 75,973,539
(49,587,997) (214,940) (4,921,981) (70,777,539)
12,919,754 11,858,206 (4,235,789) 89,789,975
1,772,544 20,001,133 3,901,359 91,904,271
47,373,686 20,263,903 17,222,594 159,516,204
$ 49,146,230 $ 40,265,036 $ 21,123,953 $ 251,420,475
39
CITY OF ROUND ROCK,TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30,2021
Net Change in I and Balances-Total Governmental Funds $ 91,904,271
Amounts reportd for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures.However,in the statement of
activities, the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense.This is the amount by which capital outlays exceeded
depreciation.They are detailed in Note III(B). 5,119,505
The net effect o various miscellaneous transactions involving capital assets (e.g. sales,
disposals,and d nations)is to increase net position.They are detailed in Note III(B). 5,712,304
Property tax revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. 17,964
The issuance of long-term debt(e.g. bonds, leases)provides current financial resources
to the governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Also, governmental
funds report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issuel,whereas these amounts are deferred and amortized in the Statement
of Activities_This amount is the net effect of these differences in the treatment of long-
term debt and re ated items.They are detailed in Note 111(B). (64,568,806)
Some expenses i eported in the statement of activities do not require the use of current
financial resourc s and, therefore, are not reported as expenditures in governmental
funds.These are Jetailed in Note III(B)and include:
Pension costs,net 2,017,796
OPEB costs,n t (1,305,518)
Interest and employee expense (281,154)
Internal service funds are used to charge the costs of self-funded insurance to the
individual funds. The net revenue of certain activities of the internal service fund is
reported with go temmental activities. 211,551
Change in Net Position of Governmental Activities $ 38,827,913
The accompanyinc notes are an integral part of this financial statement.
40
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Taxes and franchise,
including interest and penalties $ 99,633,918 $ 100,504,918 $ 100,208,484 $ (296,434)
Licenses,permits and fees 1,493,294 1,493,294 2,402,843 909,549
Charges for services 3,891,311 3,891,311 4,880,297 988,986
Fines and forfeitures 1,047,669 1,047,669 1,027,327 (20,342)
Intergovernmental 1,706,500 1,706,500 3,103,417 1,396,917
Investment and other 5,780,301 5,780,301 5,226,654 (553,647)
Total revenues 113,552,993 114,423,993 116,849,022 2,425,029
Expenditures-
Current-
General government 25,705,376 25,096,355 24,547,018 549,337
Public safety 58,735,181 59,746,900 59,445,458 301,442
Public works 19,031,333 16,467,478 15,416,404 1,051,074
Culture and recreation 16,173,106 16,221,263 15,861,492 359,771
Total expenditures 119,644,996 117,531,996 115,270,372 2,261,624
Excess(deficiency)of revenues
over expenditures (6,092,003) (3,108,003) 1,578,650 4,686,653
Other financing sources(uses)-
Transfers in 6,107,000 6,107,000 6,257,264 150,264
Transfers out - (8,359,371) (8,359,371) -
Total other financing sources(uses),
net 6,107,000 (2,252,371) (2,102,107) 150,264
Net change in fund balances $ 14,997 $ (5,360,374) (523,457) $ 4,836,917
Fund balance,October 1,2020 59,813,896
Fund balance,September 30,2021 $ 59,290,439
The accompanying notes are an integral part of this financial statement.
41
CITY OF ROUND ROCK,TEXAS
ROUND ROCK TRANSPORTATION AND ECONOMIC DEVELOPMENT CORPORATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Sales tax $ 18,900,000 $ 18,900,000 $ 25,108,759 $ 6,208,759
Intergovernrr ental 1,219,198 1,219,198 1,574,912 355,714
Contribution - - 2,118,058 2,118,058
Investment and other 500,000 500,000 708,960 208,960
Total revenues 20,619,198 20,619,198 29,510,689 8,891,491
Expenditures-
Current-
Public works 13,418,595 13,083,263 1,530,260 11,553,003
Debt Service
Issuance cc sts - 335,331 335,331 -
Capital projects 26,234,041 26,234,042 26,234,042 -
Total expenditures 39,652,636 39,652,636 28,099,633 11,553,003
Excess(deficiency)of revenues
over a penditures (19,033,438) (19,033,438) 1,411,056 20,444,494
Other financing sources(uses)-
Issuance ofdebt - - 20,695,000 20,695,000
Transfers in 30,000,000 51,889,619 51,889,619 -
Transfers out (911,000) (7,682,059) (7,682,058) 1
Total otl er financing sources(uses) 29,089,000 44,207,560 64,902,561 20,695,001
Net chai ge in fund balances $ 10,055,562 $ 25,174,122 66,313,617 $ 41,139,495
Fund balance, ctober 1,2020 9,762,034
Fund balance,September 30,2021 $ 76,075,651
The accompany ng notes are an integral part of this financial statement.
42
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43
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30,2021
Business-Type Activities Governmental
Enterprise Funds Activities
Water and Golf Course Internal Service
Sewer Fund Fund Total Fund
ASSETS
Current assets,
Cash and cash equivalents $ 43,548,986 $ 319,345 $ 43,868,331 $ 3,158,515
Investments 133,983,118 459,521 134,442,639 9,317,397
Receivables(net of allowance for
uncollectibles of$883,407)-
Accounts and other 25,745,728 75,000 25,820,728 -
Accrued interest 1,389,622 208 1,389,830 5,829
Intergovernmental 3,008,445 - 3,008,445 -
Inventories 558,085 - 558,085 -
Prepaid items 430,119 - 430,119 87,500
Total current ass is 208,664,103 854,074 209,518,177 12,569,241
Noncurrent assets:
Restricted cash,cash equivalents,
and investments:
Impact fees 4,417,712 - 4,417,712 -
Construction 7,118,447 - 7,118,447 -
Customer deposits 1,872,125 - 1,872,125 -
Revenue bond covenant accounts 209,605 - 209,605 -
Restricted accounts receivable:
Accrued Interest 4,637 - 4,637 -
Investment injoint venture 17,090,044 - 17,090,044 -
Capital assets:
Land and constriction in progress 29,842,197 1,891,175 31,733,372 -
Capital assets b ing depreciated 339,008,383 7,185,599 346,193,982 -
Total capital arse (net of accumulated
depreciation of 252,514,579) 368,85Q580 9,076,774 377,927,354 -
Total noncurrent issets 399,563,150 9,076,774 408,639,924 -
Total assets 608,227,253 9,930,848 618,158,101 12,569,241
DEFERRED OUTFLC WS OF RESOURCES
Deferred amount on refundings 3,956,055 - 3,956,055 -
Deferred outflows elated to pensions 1,71Q135 - 1,710,135 -
Deferred outflows elated to OPEB 274,926 - 274,926 -
Total deferred ou flows of resources 5,941,116 - 5,941,116 -
The accompanying r otes are an integral part of this financial statement.
44
Business-Type Activities Governmental
Enterprise Funds Activities
Water and Golf Course Internal Service
Sewer Fund Fund Total Fund
LIABILITIES
Current liabilities:
Accounts payable $ 34,387,031 $ 64,116 $ 34,451,147 $ 853,154
Accrued payroll 354,715 - 354,715 -
Accrued benefit obligations 578,154 - 578,154 -
Unearned revenue 5,427,501 - 5,427,501 -
Accrued interest 431,272 - 431,272 -
Customer deposits 1,892,846 - 1,892,846 -
Bonds payable 3,806,408 - 3,806,408 -
Total current liabilities 46,877,927 64,116 46,942,043 853,154
Noncurrent liabilities:
Net pension liability 4,775,590 - 4,775,590 -
Total OPEB liability 2,447,920 - 2,447,920 -
Accrued benefit obligations 153,687 - 153,687 -
Bonds payable 68,536,573 - 68,536,573 -
Total noncurrent liabilities 75,913,770 - 75,913,770 -
Totalliabilities 122,791,697 64,116 122,855,813 853,154
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 935,441 - 935,441 -
Deferred inflows related to OPEB 84,804 - 84,804 -
Total deferred inflows of resources 1,020,245 - 1,020,245 -
NET POSITION
Net investment in capital assets 300,937,539 9,076,774 310,014,313 -
Restricted for.
Debt service 209,605 - 209,605 -
Capital projects 11,540,796 - 11,540,796 -
Unrestricted 177,668,487 789,958 178,458,445 11,716,087
Total net position $ 490,356,427 $ 9,866,732 500,223,159 $ 11,716,087
Reconciliation to government-wide statement of net position:
Adjustment to reflect the cumulative net profit of the internal
service fund that was allocated to enterprise fund functions. 1,539,861
Net position of business-type activities $ 501,763,020
45
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30, 2021
Business-Type Activities Governmental
Enterprise Funds Activities
Water and Golf Course Internal Service
Sewer Fund Fund Total Fund
Operating revenue.;
Charges for services $ 55,106,110 $ 3,506,792 $ 58,612,902 $ 14,796,708
Licenses,permits,and fees 5,472,368 - 5,472,368 -
Total revenues 60,578,478 3,506,792 64,085,270 14,796,708
Operating expens
Personnel services 12,896,946 - 12,896,946 -
Contractual services 16,476,180 3,098,248 19,574,428 3,190,270
Supplies 1,276,682 - 1,276,682 23,475
Repair and mainteriance 1,774,568 62,689 1,837,257 5,355
Heat,light,and pouver 2,404,405 55,416 2,459,821 5,769
Claims expense - - - 11,652,169
Depreciation 20,580,556 483,495 21,064,051 -
Total operating expenses 55,409,337 3,699,848 59,109,185 14,877,038
Operating into a(loss) 5,169,141 (193,056) 4,976,085 (80,330)
Nonoperating revenues(expenses)-
Investment and of ier revenues 2,363,247 976 2,364,223 331,770
Interest and fiscal charges (2,654,495) - (2,654,495) -
Total nonopera ing
revenues(exF enses) (291,248) 976 (290,272) 331,770
Income before ontributions
and transfers 4,877,893 (192,080) 4,685,813 251,440
Contributions and transfers-
Contributions-im act fees 8,473,363 - 8,473,363 -
Contributions-infrastructure 12,514,399 - 12,514,399 -
Contributions-other 1,300,736 - 1,300,736 -
Transfers out (5,196,000) - (5,196,000) -
Total contributions and transfers 17,092,498 - 17,092,498 -
Change in net position 21,970,391 (192,080) 21,778,311 251,440
Net position,October 1,2020 468,386,036 10,058,812 11,464,647
Net position,Sept mber 30,2021 $ 490,356,427 $ 9,866,732 $ 11,716,087
Reconciliation to government-wide statement of activities:
Adjustment to reflect the net profit of the internal
service fund that was allocated to enterprise fund functions 39,889
Change in net osition of business-type activities $ 21,818,200
The accompanying rotes are an integral part of this financial statement.
46
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30,2021
Business-Type Activities Governmental
Enterprise Funds Activities
Water and Golf Course Internal
Sewer Fund Fund Total Service Fund
Cash flows from operating activities:
Cash received from customers $ 54,084,445 $ 3,506,792 $ 57,591,237 $ 842,712
Cash received from other funds for
services provided - - - 14,007,396
Cash payments to suppliers for goods
and services (10,740,859) (3,326,789) (14,067,648) (14,212,477)
Cash payments to employees for services (12,926,646) - (12,926,646) -
Net cash provided(used)by
operating activities 30,416,940 180,003 30,596,943 637,631
Cash flows from noncapital financing activities:
Transfers to other funds (5,196,000) - (5,196,000) -
Net cash provided(used)by noncapital
financing activities (5,196,000) - (5,196,000) -
Cash flows from capital and related
financing activities:
Proceeds from sale of capital assets 70,884 - 70,884 -
Proceeds from ARPA grant 5,427,501 - 5,427,501 -
Acquisition and construction of capital assets (20,788,696) (92,688) (20,881,384) -
Investment in joint venture (242,581) - (242,581) -
Principal paid on revenue bonds (3,656,408) - (3,656,408) -
Contributions 1,313,806 - 1,313,806 -
Impact fees 8,473,363 - 8,473,363 -
Interest and fiscal charges paid (2,365,773) - (2,365,773)
Net cash provided (used)by capital and
related financing activities (11,767,904) (92,688) (11,860,592) -
Cash flows from investing activities:
Sale(purchase)of investments 2,515,106 4,086 2,519,192 192,060
Investment and other income 2,291,522 1,070 2,292,592 340,507
Net cash provided (used)by
investing activities 4,806,628 5,156 4,811,784 532,567
Net increase(decrease)in cash and cash
equivalents 18,259,664 92,471 18,352,135 1,170,198
Cash and cash equivalents at beginning of year 30,798,663 226,874 31,025,537 1,988,317
Cash and cash equivalents at end of year $ 49,058,327 $ 319,345 $ 49,377,672 $ 3,158,515
(CONTINUED)
The accompanying notes are an integral part of this financial statement.
47
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS(CONTINUED)
YEAR ENDED SEPTEMBER 30,2021
Business-Type Activities Governmental
Enterprise Funds Activities
Water and Golf Course Internal
Sewer Fund Fund Total Service Fund
Reconciliation of Cash and Cash Equivalents
to Pro rieta and Statement of Net Position
Cash and cash ec uivalents $ 43,548,986 $ 319,345 $ 43,868,331 $ 3,158,515
Restricted assets
Cash and cash equivalents 5,509,341 - 5,509,341 -
Cash and cash ec uivalents $ 49,058,327 $ 319,345 $ 49,377,672 $ 3,158,515
Reconciliation of ooeratino income loss to
net cash provic ed used by operating activities
Operating income(loss) $ 5,169,141 $ (193,056) $ 4,976,085 $ (80,330)
Adjustments to reconcile operating income
(loss)to net ca h provided by operating
activities:
Depreciation 20,580,556 483,495 21,064,051 -
Provision for bad debts 139,655 - 139,655 -
(Increase)decrease in:
Receivabl (6,825,221) - (6,825,221) 53,400
Customer leposits (174,579) - (174,579) -
Inventory (131,500) - (131,500) -
Other ass Is (3,105) - (3,105) -
Pension re ated deferred outflows (139,487) - (139,487) -
OPEB relat2d deferred outflows (19,273) - (19,273) -
Increase(decrease)in:
Accounts I iayable 11,500,160 (110,436) 11,389,724 664,561
Customer eposits 191,533 - 191,533 -
Compensa ed absences 67,427 - 67,427 -
Pension re ated deferred inflows (94,447) - (94,447) -
OPEB relat d deferred inflows (17,341) - (17,341) -
Net pensic n liability (41,220) - (41,220) -
Total OPE liability 214,641 - 214,641 -
Total adjustment 25,247,799 373,059 25,620,858 717,961
Net cash provide (used)by operations $ 30,416,940 $ 180,003 $ 30,596,943 $ 637,631
NOTES:
Noncash capital a id related financing activities:
In fiscal year 2021 the Water and Sewer Fund had$12,514,399 in capital assets contributed,recognized a change of
($264,567)in fair slue of investments,and a change of$242,581 in joint venture net position.
The accompanyin notes are an integral part of this financial statement.
48
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Round Rock,Texas(the City)is a municipal corporation incorporated under Article X1 Section of the
Constitution of the State of Texas(Home Rule Amendment).The City operates under a Council-Manager form of
government. The financial statements of the City have been prepared in accordance with generally accepted
accounting principles(GAAP) as applied to governmental units.The Governmental Accounting Standards Board
(GASB)is the standard-setting body for governmental accounting and financial reporting.The GASB periodically
updates its codification of the existing Governmental Accounting and Financial Reporting Standards which,along
with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental
units.The more significant of these accounting policies are described below,and where appropriate,subsequent
pronouncements will be referenced.
A. REPORTING ENTITY
The City provides various services and performs many different functions. These include a police force, a fire
fighting and protection force,emergency medical services,a park and recreation system,a municipal golf course,
a public library,convention and tourism support planning and zoning,and a waterworks and sewer utility system.
The City's staff provides the necessary support for the services provided.All are responsible to the Citizens of
Round Rock and are therefore included within the reporting entity.
As required by generally accepted accounting principles, these financial statements present the City and its
component unit,an entity for which the City is considered to be financially accountable.Blended component units,
although legally separate entities,are,in substance,part of the City's operations and so data from these units are
combined with data of the City.
Blended Component Unit
The Round Rock Transportation and Economic Development Corporation(RRTEDC)is a blended component unit
presented as a major special revenue fund of the City and does not issue separate financial statements. The
governing body of the RRTEDC consists of a seven-member board appointed by the City Council.The purpose of
the RRTEDC is to utilize sales tax revenues for the improvement of the City's transportation system and for
economic development purposes, covered under local government code.The City Council maintains budgetary
control of the RRTEDC.
A five-year project spending plan is presented and adopted at least annually to ensure adequate funds are
available for transportation,economic development,and other allowed uses of RRTEDC funds.This five-year plan
is reviewed by staff at least bi-annually and updates are presented to the RRTEDC board as needed for
transportation capital improvements programs,economic incentive programs,and other legally allowable projects
approved by the RRTEDC board and ratified by Council.
B. BASIS OF PRESENTATION—GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The basic financial statements include both government-wide(based on the City as a whole) and fund financial
statements.GASB Statement No.34 requires certain supplementary information. Management's Discussion and
Analysis includes an analytical overview of the City's financial activities. In addition, budgetary comparison
statements are presented that compare the adopted and amended budgets of the General Fund and the Round
Rock Transportation and Economic Development Corporation Fund with their actual results.
Government-wide Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all non-fiduciary activities of the primary government and its component unit.
49
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Governr iental activities, which are normally supported by taxes and intergovernmental revenues, are reported
separately from business-type activities,which are funded by fees and charges for services.
The City s statement of net position reports all assets,deferred outflows of resources, liabilities,deferred inflows
of resources,and net position.
Thego rnment-wide statement of activities demonstrates the degree to which the direct expenses of a functional
catego (police,fire,public works,etc.)are offset by program revenues. Direct expenses are those that are clearly
identifia le with a specific function. Program revenues include 1) charges to customers or applicants who
purchas ,use,or directly benefit from goods, services,or privileges provided by a given function or segment,2)
grants aid contributions that are restricted to meeting the operational requirements of a particular function or
segmen and 3)grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported as
general evenues. In addition,the government-wide statement of activities reflects depreciation expense on the
City's ca ital assets,including infrastructure.
The net cost (by function or business-type activity) is normally covered by general revenue (property, sales or
franchis taxes,intergovernmental revenues,interest income,etc.).
The gov rnment-wide focus is more on the sustainability of the City as an entity and the change in aggregate
financial position resulting from financial activities of the fiscal period.The focus of the fund financial statements
is on the major individual funds of the governmental and business-type categories and the component unit.Each
presentation provides valuable information that can be analyzed and compared to enhance the usefulness of the
information.
Fund Fin 3ncial Statements
Separate fund based financial statements are provided for governmental funds and proprietary funds. Major
individui I governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.An emphasis is placed on major funds within the governmental and proprietary categories.
GASB St tement No. 34 sets forth minimum criteria for the determination of major funds (i.e., funds whose
revenue expend itureslexpenses,assets,or liabilities are at least 10%of corresponding totals for all governmental
or enterr rise funds and at least 5%of the aggregate amount for all governmental and enterprise funds).The major
govern}ental funds are the General Fund,the Debt Service Fund,the Round Rock Transportation and Economic
Development Corporation Fund, the Debt-Financed Capital Projects Fund, and the Self-Financed Construction
Fund.Th nonmajor funds are combined in a separate column in the fund financial statements.
The Internal Service Fund,which provides services to the other funds of the government, is presented as part of
the prop ietary fund financial statements.The net income(loss)of the Internal Service Fund is allocated between
governmental and business-type activities.Since the principal users are the City's governmental activities,financial
stateme is of the Internal Service Fund are consolidated into the governmental column when presented at the
government-wide level.The costs of these services are reflected in the appropriate functional activity (general
government public safety,public works,etc.).
C. GOVERNMENTAL FUND TYPES
Govern ental funds are those through which most governmental functions of the City are financed. The
acquisitic n,use and balances of the City's expendable financial resources and the related liabilities(except those,
if any,which should be accounted for in proprietary funds)are accounted for through governmental funds.The
measurement focus is upon determination of financial position and changes in financial position,rather than upon
net income determination.The City maintains the following governmental fund types:
50
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
The General Fund accounts for financial resources in use for general types of operations, which are not
encompassed within other funds.The General Fund is considered a major fund in the fund financial statements.
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
There are nine (9) groups of funds within the Special Revenue Funds which account for the activities related to
grant programs, hotel-motel room taxes,transportation system improvement,and economic development sales
tax and funds designated for specific service programs.They are as follows:
Major Fund
• Round Rock Transportation and Economic Development Corporation Fund
Nonmajor Funds
• Community Development Black Grant Fund
• Hotel-Motel Occupancy Tax Fund
• Hotel-Motel Occupancy Venue Tax Fund
• Innovation&Development Fund
• Library&Recreational Fund
• Public Safety Fund
• Public Education&Government Fund
• Roadway Impact Fees Fund
The Round Rock Transportation and Economic Development Corporation Fund is considered a major fund in
the fund financial statements.It accounts for sales tax monies and donations/developer contributions received for
economic development and transportation system improvements, including maintenance and capital costs
associated with such authorized projects.
The Debt Service Fund is used to account for the accumulation of resources for, and the payment of,
governmental long-term debt principal, interest,and related costs.The Debt Service Fund is considered a major
fund in the fund financial statements.
The Capital Projects Funds are used to account for financial resources to be used for the acquisition or
construction of capital facilities(other than those financed by proprietary funds).There are two groups of funds
within the Capital Projects Fund which account for the activities related to various capital improvements projects
as follows:
Major Funds
• Debt-Financed Capital Projects Fund
• Self-Financed Construction Fund
The Self-Financed Construction Fund and the Debt-Financed Capital Projects Fund are considered major funds in
the fund financial statements.The Self-Financed Construction Fund accounts for the costs of authorized general
capital improvements and facilities.Financing is provided by general government resources,such as sales tax.Dell
sales tax receipts, net of rebate,are not to exceed 20%of budgeted sales tax revenues in the General Fund. Dell
sales tax receipts,net of rebate,in excess of 20%will be budgeted and deposited in the Self-Financed Construction
Fund for pay-as-you go one-time capital expenditures or projects. In fiscal year 2021, as part of the fiscal year
2022 budget adoption process, City Council adopted a revision to the financial policies that further reduces
reliance on Dell sales tax performance,dropping to 15%by fiscal year 2024.The Debt-Financed Capital Projects
Fund accounts for projects related to fire department facilities, parks and recreational purposes, library facilities,
police and fire training facilities, street maintenance and road construction. Financing is provided by general
obligation bonds and certificates of obligation.
51
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
D. PROPRIETARY FUND TYPES
The-Prodrietary Funds are used to account for the City's ongoing organizations and activities that are similar to
those foi nd in the private sector.These funds are accounted for using the economic resources measurement focus
and the accrual basis of accounting. The accounting objectives are the determination of income before
contribu ions and transfers,net position,and cash flows.The City maintains both Enterprise Funds and an Internal
Service F Lind.
The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises - where the intent of the governing body is that the costs (expenses including
deprecia ion)of providing goods or services to the general public on a continuing basis be financed or recovered
primarily through user charges.The City's Enterprise Funds consists of the Water and Sewer Fund,which includes
the City's stormwater program,and the Golf Course Fund.These funds are primarily supported by user charges.
The Internal Service Fund is used to account for the financing of goods or services provided by one department
or agency to other City departments or agencies on a cost-plus basis.The City's Internal Service Fund is the Self-
Funded lealth Insurance Fund,which is used to account for the activities of the City's self-funded health insurance
program.
E. NC IN-CURRENT GOVERNMENTAL ASSETS/LIABILITIES
GASB 5 3tement No. 34 eliminated the presentation of the general fixed assets and general long-term debt
account groups but provides for these records to be maintained and incorporates the information into the
governry ental activities column in the government-wide statement of net position.
F. BASIS OF ACCOUNTING
Govern ent-wide Statements
The government-wide financial statements are reported using the economic resources measurement focus and
the accnial basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of the 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
requirerr ents imposed by the grantor/provider have been met.
Fund Fi ncial Statements
In the fL nd financial statements, all governmental funds are accounted for using a modified accrual basis of
accounti ig. Governmental funds use the current financial resources measurement focus. Under this basis,
revenue are recognized in the accounting period in which they become measurable and available. Expenditures
are reco I
nized in the accounting period in which the fund liability is incurred,if measurable.
Governmental Funds
Revenue Recognition
In applying the susceptible to accrual concept under the modified accrual basis of accounting, revenues are
recorded when deemed both measurable and available.Measurable means that the amount of the transaction can
be determined. Available means the amount of the transaction is collectible within the current period or soon
enough t iereafter to be used to pay liabilities of the current period.For this purpose,the City considers revenues
to be available if they are collected within 60 days of the end of the current fiscal year.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Property tax revenues are recognized when they become available.In this case,available means when due,or past
due and receivable within the current period and collected within the current period or soon enough thereafter
to be used to pay liabilities of the current period.Such time thereafter shall not exceed 60 days.
Hotel taxes, franchise fees, and special assessments are recorded when susceptible to accrual, both measurable
and available.Sales taxes collected and held by the State at year-end on behalf of the City are also recognized as
revenue.Licenses and permits,charges for services,fines and forfeitures and other revenues(except earnings on
investments) are recorded as revenues when received in cash because they are generally not measurable until
actually received.Earnings on investments are recorded on the accrual basis in all funds.Unrealized gains or losses
on investments are also recognized in accordance with GASB Statement No.31.
In applying the susceptible to accrual concept to grant revenues, the legal and contractual requirements of the
individual grant programs are used for guidance. Monies received are generally unrestricted as to purpose of
expenditure and are revocable only for failure to comply with prescribed compliance requirements. These
resources are recognized as revenues at the time of receipt, or sooner, if the susceptible to accrual criteria are
met.
The City reports unavailable revenue on its fund financial statements.Unavailable revenues arise when potential
revenue does not meet both the "measurable" and "available" criteria for recognition in the current period.
Unearned revenues arise when the City receives resources before it has a legal claim to them, as when grant
monies are received prior to the incurrence of qualifying expenditures.In subsequent periods,when both revenue
recognition criteria are met or when the City has a legal claim to the resources,the liability for unearned revenue
is removed from the balance sheet and revenue is recognized.
Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial resources(expenditures)
rather than expenses. Most expenditures are measurable and are recorded when the related fund liability is
incurred except for unmatured principal and interest on governmental long-term debt which are recognized when
paid.Allocations of costs,such as depreciation and amortization,are not recognized in the governmental funds'
fund financial statements.
Proprietary Funds
In the fund financial statements and the government-wide statements, proprietary and agency funds utilize the
accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the accounting
period in which they are earned and become measurable. Expenses are recorded in the accounting period
incurred,if measurable.
Proprietary funds distinguish operating revenues and expenses from non-operating items.Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund's principal ongoing operations.The principal operating revenues of the Water and Sewer Fund,
the Golf Course Fund and the Internal Service Fund are charges to customers for sales and services. Operating
expenses for the Enterprise Funds and Internal Service Fund include the cost of sales and service, administrative
expenses,and depreciation on capital assets.All revenue and expenses not meeting this definition are reported
as non-operating revenues and expenses.
G. CASH AND CASH EQUIVALENTS
In accordance with GASB Statement No. 9, for reporting purposes, the City has developed a definition of cash
equivalents.Cash equivalents are demand deposit account balances,investments with the State Investment Pool,
repurchase agreements, obligations of the United States government and its agencies, commercial paper, and
certificates of deposit with original maturities of three months or less.
53
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
H. INVESTMENTS
All inves ments are presented at fair value.The fair value of U.S.Government Securities is based upon discounted
future cash flows.The fair value of the positions in the state investment pools is the same as the value of the pool
shares.
The Ciq pools excess cash of the various individual funds to purchase these investments. These pooled
investments are reported in the combined balance sheet as investments in each fund based on each fund's share
of the pooled investments.Interest income is allocated to each respective individual fund,monthly,based on their
respective share of investments in the pooled investments. The City's local government investment pools are
recorded at amortized costs as permitted by GASB Statement No. 79, Certain Investment Pools and Pool
Participants.
I. IN ENTORIES AND PREPAID ITEMS
Inventories of supplies for all funds are valued at cost. Cost is determined on the first-in, first-out method.The
consum tion method is used to account for inventories. Under the consumption method, an expenditure is
recognized when inventory items are used.
Certain rayments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in 3oth the government-wide and fund financial statements.The consumption method is used to account
for prepa ids such as postage,while equipment is recognized as an expenditure when the equipment is received.
J. JO NT VENTURE
Joint venture represents the City's equity interest calculated in accordance with the agreement for the
Brushy C reek Regional Utility Authority(BCRUA).The City's initial investment in this joint venture was recorded at
cost. The City shares in the operating results in this joint venture so the City adjusts its equity interest by the
amount f its participating share of the joint venture's change in net position.
K. CAPITALASSETS
Capital assets are stated at historical cost. Maintenance and repairs are charged to operations as incurred.
Improve ents and betterments,which extend the useful lives of assets,are capitalized.
The accounting and reporting treatment applied to the capital assets associated with a fund are determined by
the fund's measurement focus. The minimum capitalization threshold is $5,000 and greater for machinery
and equ pment with a useful life of at least five(5)years and $50,000 and greater with a useful life of at least 10
years fo other asset categories. Donated capital assets, donated works of art, and similar items are
reportec at acquisition value rather than fair value.
Public domain capital assets(infrastructure)have been capitalized.Infrastructure consists of certain improvements
other th n buildings,including roads,curbing,gutters,streets and sidewalks,and stormwater systems.
In the government-wide statements,depreciation of plant and equipment classified by functional components is
providec I by the straight-line method over their estimated useful lives.Estimated useful lives are as follows:
Buildings 40 years
Improvements to buildings 10 years
Improvements other than buildings 10-30 years
Machinery and equipment 5-7 years
When capital assets are retired or otherwise disposed of,a gain or loss on disposal of assets is recognized.
54
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
In the fund financial statements,because of the application of the current financial resources focus and the use of
modified accrual accounting for governmental funds,depreciation is only recognized for the Enterprise Funds.
L LONG-TERM DEBT
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 are
deferred and amortized over the life of the bonds using the effective interest method.Bonds payable is reported
net of the applicable bond premium or discount.Deferred amounts related to refundings are reported as deferred
outflow of resources and amortized over the shorter of the refunded or refunding 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.
Limited Tax Notes have been issued for the purpose of purchasing City vehicles.The notes are to be repaid from
ad valorem taxes.
Hotel Occupancy Tax Revenue Bonds were issued to fund the City's portion of the construction of a convention
center complex. The project costs were shared with a private corporation in accordance with the Master
Agreement Regarding Convention Center Development.Venue Tax and Hotel Occupancy Revenue Bonds were
issued to fund a portion of the construction of a sports center.The Hotel Occupancy Tax Revenue Bonds and
Venue Tax and Hotel Occupancy Tax Revenue Bonds are to be repaid from the hotel tax revenues.
Revenue bonds,which have been issued to fund capital projects of the Enterprise Fund,are to be repaid from net
revenues of the utility systems.
Sales tax revenue bonds have been issued to fund transportation improvements.The bonds are to be repaid from
revenues of the Round Rock Transportation and Economic Development Corporation.
Taxable sales tax revenue bonds have been issued to fund the City's portion of the construction of a convention
center facility located at Kalahari Resorts and Conventions.The bonds are to be repaid from sales tax,venue tax
and ad valorem tax generated by Kalahari Resorts and Conventions.
M. ACCRUED BENEFIT OBLIGATIONS
Unpaid Compensated Absences
Regular full-time employees and regular part-time employees who are normally scheduled to work at least 20
hours per week are eligible to accrue vacation leave. Public service employees, including the police department,
can accrue a maximum of 320 hours. Regular,full-time suppression firefighters have a maximum accrual of 656
hours,while regular,full-time administration firefighters can earn a maximum of 437 hours. Employees are paid
for the accumulated vacation upon termination. Effective January 1, 1994, sick pay does not vest for non-Civil
Service employees,therefore,a liability is only recorded for sick leave relating to Civil Service employees.
The City accrues a liability for accumulated vacation and sick leave benefits,which meet the following criteria:
• The City's obligation to fund accumulated vacation and sick leave benefits is attributable to
employees'services already rendered.
• The obligation relates to rights that vest or accumulate.
55
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
• Payment of the compensation is probable.
• The amount can be reasonably estimated.
All vaca ion pay is accrued when incurred in the government-wide and proprietary fund financial statements.A
liability ior these amounts is reported in governmental funds only if they have matured,for example,as a result
of employee resignations and retirements.
Other Post-Employment Benefits
The City provides its retirees the opportunity to maintain health insurance coverage by participating in the City's
self-insurance plan.The City reports the total liability for this plan on the government-wide and proprietary fund
financial statements.The actual cost recorded in the governmental fund financial statements is the cost of the
health benefits incurred on behalf of the retirees less the premiums collected from the retirees. Information
regarding the City's total liability for this plan is obtained through a report prepared by Holmes Murphy &
Associat s, the Citys third-party actuary, in compliance with GASB Statement No.75,Accounting and Financial
Reportin for Postemployment Benefits Other Than Pensions.
Additionally,the City participates in a defined benefit group-term life insurance plan,both for current and retired
employees,administered by the Texas Municipal Retirement System(TMRS).The City reports the total liability for
this plan on the government-wide and proprietary fund financial statements.Information regarding the City's total
OPEB Iia ility is obtained from TMRS through a report prepared for the City by TMRS'consulting actuary,Gabriel
Raeder mith&Company,in compliance with GASB Statement No.75.
The governmental funds typically used to liquidate other post-employment benefit liabilities are the General,
Hotel-M tel Occupancy Tax,Hotel-Motel Occupancy Venue Tax,and Library and Recreational Funds.
N. TR4kNSACTIONS BETWEEN FUNDS
Short-tem advances between funds are accounted for in the appropriate interfund receivable and payable
accounts.All legally authorized transfers are appropriately treated as transfers and are included in the results of
operatio is of both governmental and proprietary funds.Nonrecurring or non-routine transfers of equity between
funds — or example, contribution of capital assets to a proprietary fund or transfers of residual balances of
discontinued funds to other funds—are accounted for as transfers.
As a rule the effect of interfund activity has been eliminated from the government-wide statement of net position.
Exceptio is to this rule are cost reimbursement transactions between the enterprise fund and various other
function of the government for utilities and for reimbursement of personnel costs for employees administering
grant programs. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned.
O. NEr POSITION
Net posi ion in government-wide and proprietary fund financial statements are classified as net investment in
capital assets, restricted, and unrestricted. Net investment in capital assets consists of capital assets net of
accumulated depreciation, outstanding balances of capital-related borrowings, and capital-related deferred
outflows inflows)of resources.Net position classified as restricted are balances with constraints on resources that
are eithei externally imposed by creditors,grantors,contributors,or laws or regulations of other governments or
imposed by law through state statute.
Certain band proceeds,as well as resources set aside fortheir repayment,are classified as restricted assets because
their use is limited by bond covenants.Other assets are restricted due to City Ordinance restrictions on their use.
56
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Net position has been restricted for the excess of restricted assets over related liabilities to the extent such
restricted assets were accumulated from revenues(i.e., in some cases, restricted assets were obtained in total or
in part from the proceeds of bond sales or grants).
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first,then unrestricted resources as they are needed.
P. CLASSIFICATION OF FUND EQUITY
Governmental funds'fund balance classifications describe the relative strength of the spending constraints placed
on the purposes for which resources can be used.
Nonspendable fund balance—Nonspendable fund balances are amounts that are not in spendable form or are
legally or contractually required to be maintained intact.
Restricted fund balance— Restricted fund balances are amounts that are constrained to specific purposes by
creditors,grantors,contributors,or laws or regulations of other governments.
Committed fund balance—Committed fund balances are amounts that are committed to specific purposes by
City Council through an ordinance.Amounts cannot be used for other purposes unless the City Council takes the
same action to remove or change the constraint.The most significant commitments are for general government
in the special revenue funds and for park improvements in the capital projects funds.
Assigned fund balance —Assigned fund balances are amounts that are subject to a purpose constraint that
represents an intended use established by City Council or the City Manager as defined in the Financial Policies of
the City.
Unassigned fund balance—Unassigned fund balances are amounts that are available for any legal purposes.The
General Fund is the only fund that reports a positive unassigned fund balance amount.Other governmental funds
may report a negative unassigned fund balance if expenditures incurred for specific purposes exceeded the
amounts restricted,committed,or assigned to those purposes.
For the classification of governmental fund balances,the City considers the expenditure to be made from the most
restrictive first when more than one classification is available.
Q. MINIMUM FUND BALANCE POLICY
It is the desire of the City to maintain an adequate fund balance in the General Fund to maintain liquidity in
anticipation of economic downturns or natural disasters.The City Council has adopted a financial standard to
maintain a General Fund minimum fund balance of 90 days or 25%of annual budgeted expenditures.
R. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets,the statement of net position and/or balance sheet will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s)and so will not be recognized as an
outflow of resources(expense/expenditure)until then.The items that qualify for reporting in this category by the
City include the following:
• Deferred charges on refundings — A deferred charge on refunding results from the difference in the
carrying value of refunded debt and its reacquisition price.This amount is deferred and amortized over
the shorter of the life of the refunded or refunding debt.The deferred charge on refundings is reported in
the government-wide statement of net position.
57
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
• OPEB and pension contributions after measurement date — These contributions are deferred and
cognized in the following fiscal year.
• ifference between projected and actual investment earnings on pension assets, difference between
expected and actual economic experience on pension and OPEB assets, and changes in actuarial
assumptions used to determine the net pension and total OPER liabilities.
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate
section r deferred inflows of resources.This separate financial statement element,deferred inflows of resources,
represe is an acquisition of net position that applies to a future period(s) and so will not be recognized as an
inflow ol resources(revenue)until that time.Reported as a deferred inflow for the City both for OPEB and pension
are the c ifference in expected and actual experience and the difference arising from changes in assumptions(both
are deferred and recognized over the estimated average remaining lives of all members determined as of the
measurement date).For the governmental funds,the property tax receivable is offset by unavailable revenue and
reported as deferred inflows because this receivable will not be received within 60 days after fiscal year end.
S. TAP-IN(CONNECTION FEES)AND IMPACT FEES
Water a d sewer tap-in fees (connection fees) represent reimbursement of the costs incurred to perform the
connecti n of the respective utilities. These fees are recorded as operating revenue at the time of service.The
impact f e substantially exceeds the cost of connection to the water and sewer system and is therefore viewed as
a contri ution. Effective with the implementation of GASB Statement No. 33, impact fees are recorded as
contribu ions in the Enterprise Fund.
The City adopted a roadway impact fee ordinance in March 2019. Roadway impact fees are intended to recover
the incre ental cost of each new unit of development on the arterial and collector roadway infrastructure.Effective
January 1, 2020, assessment of roadway impact fees began but no roadway impact fees were charged for any
building permit application dated before January 1, 2021. The roadway impact fees were charged effective
January 1,2021.There are three phases in the roadway impact fee schedule.Phase 1 of the roadway impact fees
are for final plat dates prior to January 1, 2022; phase 2 is for final plat dates between January 1, 2022, and
December 31,2023;and phase 3 is for final plat dates on or after January 1,2024.
T. USE OF ESTIMATES
The prer aration of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect certain reported amounts
and disclosures. Specifically,the actuarial calculations to determine the net pension liability and total OPER liability
are based on assumptions about events far into the future. Accordingly, actual results could differ from those
estimate;.
U. PE 4SIONS
For pure ses of measuring the net pension liability, pension related deferred outflows and inflows of resources,
and pe Sion expense, City specific information about its fiduciary net position in TMRS and additions
to/deductions from the City's fiduciary net position have been determined on the same basis as they are reported
by TMRS For this purpose,plan contributions are recognized in the period that compensation is reported for the
employe a,which is when contributions are legally due. Benefit payments and refunds are recognized when due
and payable in accordance with the benefit terms.Investments are reported at fair value. Information regarding
the City' total pension liability is obtained from TMRS through a report prepared for the City by TMRS'consulting
actuary, Gabriel Roeder Smith &Company(GRS), in compliance with GASB Statement No. 68, Accounting and
Financial Reporting for Pensions—an amendment of GASB Statement No.27.
The governmental funds typically used to liquidate pension liabilities are the General,Hotel-Motel Occupancy Tax,
Hotel-Motel Occupancy Venue Tax,and Library and Recreational Funds.
58
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30"2021
V. NEW AND FUTURE FINANCIAL REPORTING REQUIREMENTS
The GASB has issued the following statements which became effective for fiscal year 2021,as well as statements
that are effective infuture fiscal years,but the City implemented early.
Statement No. 84, "Fiduciary Activities" — This Statement will enhance consistency and comparability by
establishing specific criteria for identifying activities that should be reported as fiduciary activities and clarifying
whether and how business-type activities should report their fiduciary activities.Established criteria for identifying
fiduciary activities is focused on whether a government is controlling the assets of the fiduciary activity and the
beneficiaries with whom afiduciary relationship exists.The City does not have any fiduciary activities horeport.
Statement No. 90, "Majority Equity Interests —on amendment of GASB Statements No. 14 and No. 61^ —This
Statement will improve financial reporting by providing financial statement users with essential information
presented for majority equity interests in legally separate organizations. A majority equity interest in a legally
separate organization should be reported as an investment if the government's holding of the equity interest
meets the definition of an investment.The statement also provides for improved relevance of financial statement
information for certain component units.If a government has a 100 percent equity interest it must account for its
assets,deferred outflows of resources,liabilities,and deferred inflows of resources at acquisition value at the date
the government acquired a 100 percent equity interest.The City does not have any majority equity interests to
report.
Statement No. 98, "The Annual Comprehensive Financial Report"—This Statement establishes the term Annual
Comprehensive Financial Report and its acronym A{FR. The new term and acronym replace instances of
Comprehensive Annual Financial Report and its acronym in generally accepted accounting principles for state and
local governments.
GASB Statement No. O8' 'Accounting for Interest Cost Incurred Before the End ofoConstruction Period"—The
objectives of this Statement are(1)to enhance the relevance and comparability of information about capital assets
and the cost of borrowing for a reporting period and (2)to simplify accounting for interest cost incurred before
the end of a construction period.Interest cost incurred before the end of a construction period will be recognized
as an expense in the period in which the cost is incurred for financial statements prepared using the economic
resources measurement focus.As a result interest cost incurred before the end of a construction period will not
be included in the historical cost ofu capital asset reported in m business-type activity orenterprise fund.This
statement is not applicable to the City as we do not currently capitalize interest costs incurred before the end of
construction.
The GASB has issued the following statements which will become effective for fiscal year 2022:
GASB Statement No. K7, ^Leoses^—The objective cf this Statement|s»obetter meet the information needs of
financial statement users by improving accounting and financial reporting for leases by governments.It establishes
a single model for lease accounting based on the foundational principle that leases are financings of the right to
use an underlying asset This statement increases the usefulness of governments'financial statements by requiring
recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.
GASB Statement No. 92, "Omnibus 2&20^— The objectives of this Statement are to enhance comparability in
accounting and financial reporting and to improve the consistency ofauthoritative literature by addressing
practice issues that have been identified during implementation and application of certain GASB Statements.
Statement No.93, "Replacement of Interbank Offered Rates(IBOR)"—The objective of this Statement is to address
accounting and financial reporting implications that result from the replacement ofan |8ORdue tn global
59
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
reference rate reform. This will improve the usefulness of information for users of state and local government
financial statements.The London Interbank Offered Rate(LIBOR)is expected to cease to exist at the end of 2021.
GASB St 3tement No. 97, "Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans—an Amendment of GASB Statements No.14 and No.84,
and a st persession of GASB Statement No. 32"—The primary objectives of this Statement are to (1) increase
consistei icy and comparability related to the reporting of fiduciary component units in circumstances in which a
potentia component unit does not have a governing board and the primary government performs the duties that
a govert ing board typically would perform; (2) mitigate costs associated with the reporting of certain defined
contribu ion pension plans, defined contribution other postemployment benefit (OPER) plans, and employee
benefit F lans other than pension plans or OPEB plans(other employee benefit plans)as fiduciary component units
in fiduci ry fund financial statements; and (3) enhance the relevance, consistency, and comparability of the
accounti rig and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans
(Section 457 plans)that meet the definition of a pension plan and for benefits provided through those plans.
I1.
STEWAF 1WHIP,COMPLIANCE AND ACCOUNTABILITY
A. BUDGETARY ACCOUNTING
The City follows these procedures in establishing the appropriated budget as reflected in the accompanying
financial statements:
(1) At least sixty days prior to the beginning of each fiscal year,the City Manager submits to the
City Council a proposed budget for the fiscal year beginning on the following October 1.
The operating budget, which represents the financial plan for the ensuing fiscal year,
includes proposed expenditures and the means of financing them.
(2) Public hearings are conducted at which all interested persons' comments concerning the
budget may be heard.
(3) The budget is legally enacted by the City Council through passage of an appropriation
ordinance and tax-levying ordinance not later than the final day of the last month of the
fiscal year.
(4) Formal budgetary integration is employed as a management control device during the year
for the General Fund, Special Revenue Funds, Debt Service Fund and Proprietary Funds.
Management control for the operating budget is maintained at the individual office,
department,or agency level.
(5) Annual budgets are legally adopted for the General Fund, Special Revenue Funds, Debt
Service Fund, and the Proprietary Funds. Capital Projects Funds have no binding annual
budget. Project-length financial plans are adopted for all capital projects; accordingly, no
comparison of budget to actual is presented in the financial statements.
(6) Amendments that alter total expenditures of any fund must be approved by the City Council.
Although costs are monitored on a departmental basis, the level of control at which
expenditures may not exceed the budget is at the fund level.The reported budgetary data
has been revised for amendments authorized.
(7) Any appropriation balances lapse or revert to the undesignated fund balances at the close
of each fiscal year.
60
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
The budgets of the various funds are prepared on a basis consistent with generally accepted accounting principles
as described above.The table below compares original to final budgets for the General Fund.
Amendments
Original Increase Final
Budget (Decrease) Budget
Revenues-
Taxes and franchise,
including interest and penalties $ 99,633,918 $ 871,000 $ 100,504,918
Licenses,permits and fees 1,493,294 - 1,493,294
Charges for services 3,891,311 - 3,891,311
Fines and forfeitures 1,047,669 - 1,047,669
Intergovernmental 1,706,500 - 1,706,500
Investment and other 5,780,301 - 5,780,301
Total revenues 113,552,993 871,000 114,423,993
Expenditures-
Current-
General government 25,705,376 (609,021) 25,096,355
Public safety 58,735,181 1,011,719 59,746,900
Public works 19,031,333 (2,563,855) 16,467,478
Culture and recreation 16,173,106 48,157 16,221,263
Total expenditures 119,644,996 (2,113,000) 117,531,996
Excess(deficiency)of revenues
over expenditures (6,092,003) 2,984,000 (3,108,003)
Other financing sources(uses)-
Transfers in 6,107,000 - 6,107,000
Transfers out - (8,359,371) (8,359,371)
Total other financing sources(uses) 6,107,000 (8,359,371) (2,252,371)
Net change in fund balances $ 14,997 $ (5,375,371) $ (5,360,374)
B. ENCUMBRANCES
Encumbrances represent commitments related to unperformed (executory)contracts for goods or services. For
budgetary purposes,encumbrances lapse at fiscal year-end. In accordance with the City Charter, Part I,Article 8,
Section 8.03(a)(10)—Finance Administration,a capital improvement program may be revised and extended each
year to indicate capital improvements pending or in process of construction or acquisition.Therefore, purchase
orders and contracts associated with capital improvement programs roll at the end of the fiscal year. The
encumbrances and significant commitments at September 30, 2021, associated with capital improvements for
governmental funds,not proprietary funds, in accordance with GASB Statement No. 54,"Fund Balance Reporting
and Governmental Fund Type Definitions,"are summarized below:
Major Funds
Round Rock Transportation and Economic
Development Corporation Fund $ 33,147,000
Self-Financed Construction Fund 2,128,000
Debt-Financed Capital Projects Fund 31,514,000
Nonmajor Funds
Special revenue funds $ 508,000
61
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
III.
RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS BALANCE SHEET
AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds
and net position-governmental activities as reported in the government-wide statement of net position. One
element of that reconciliation explains that"some long-term liabilities are not due and payable in the current
period a id therefore are not reported in the funds."The details of this difference are as follows:
Bonds ar d certificates payable-public placement $ 290,610,000
Plus:Is suance premium(amortized against interest expense) 21,615,176
Less:Is suance discount(amortized against interest expense) (47,353)
Bonds arid certificates payable-private placement 40,330,000
Capital I aces payable 4,169,069
Net pen ion liability 35,020,987
Compensated absences 9,332,420
Total OP:B liability 17,951,408
Net adjustment to reduce fund balance-total governmental funds
to arriv e at net position-governmental activities $ 418,981,707
B. EX LANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS STATEMENT OF
REifENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconcile 3tion of net changes in fund balances—total governmental funds to changes in netposition of governmental
activities as reported in the government-wide statement of activities.One element of that reconciliation explains
that"Go ernmental funds report capital outlays as expenditures.However, in the statement of activities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense."The details of
this difference are as follows:
Capital outlay $ 40,870,035
Deprech ition expense (35,750,530)
Net adjL stment to increase net changes in fund balances-
total c overnmental funds to arrive at changes in net position
of goi ernmental activities $ 5,119,505
Another element of the reconciliation states that"The net effect of various miscellaneous transactions involving
capital assets(e.g.,sales,disposals,and donations)is to increase net position."The details of this difference are as
follows:
Donations $ 6,184,081
Reclassifications,disposals,and transfers (471,777)
Net adjustment to increase net changes in fund balances-
total c overnmental funds to arrive at changes in net position
of governmental activities $ 5,712,304
62
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Another element of the reconciliation states that "The issuance of long-term debt (e.g., bonds, leases) provides
current financial resources to governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on
net position.Also,governmental funds report the effect of issuance costs, premiums,discounts,and similar items
when debt is first issued,whereas these amounts are deferred and amortized in the Statement of Activities."The
details of this difference are as follows:
Issuance of debt-public placement $ (84,040,000)
Premiums received on issuance of debt-public placement (7,036,650)
Debt payments/refundings-public placement 16,785,000
Debt payments/refundings-private placement 7,625,000
Deferred amount on refunding -public placement (127,32S)
Capital lease payments 2,225,169
Net adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ (64,568,806)
Another element of the reconciliation states that"Some expenses reported in the statement of activities do not
require the use of current financial resources and therefore are not reported as expenditures in governmental
funds."The details of these differences are as follows:
Decrease in net pension liability $ 302,283
Increase in deferred outflows related to pensions 1,022,901
Decrease in deferred inflows related to pensions 692,612
Net adjustment to increase net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ 2,017,796
Increase in total OPEB liability $ (1,574,028)
Increase in deferred outflows related to OPEB 141,341
Decrease in deferred inflows related to OPEB 127,169
Net adjustment to decrease net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ (1,30S,S18)
Change in compensated absences $ (508,156)
Amortization of bond premium/discount-public placement 1,360,080
Change in accrued interest-public placement (759,663)
Change in accrued interest-private placement 151,919
Amortization of deferred amount on refunding -public placement (476,965)
Amortization of deferred amount on refunding-private placement (48,369)
Net adjustment to decrease net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ (281,154)
63
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
IV. DETAILI D NOTES ON ALL FUNDS
A. CASH AND INVESTMENTS
Cash and investments at September 30,2021, reconciled to the statement of net position amounts for cash and
cash eqL ivalents and investments is as follows:
Cash in banks $ 95,681,971
Investments 368,871,930
Total cash and investments $ 464,553,901
Statement of net position presentation:
Cash and cash equivalents $ 78,134,897
Investments 235,500,321
Restricted assets-
Cash and cash equivalents 45,050,196
Investments 105,868,487
Total cash and cash equivalents and investments $ 464,553,901
At September 30, 2021, the carrying amount of deposits was a debit balance of$95,681,971, including $171,568
in outsta iding checks,and the respective bank balances totaled $95,853,539.The City's bank balances were fully
insured c r collateralized with securities held by the City's agent in the City's name and/or letters of credit.
Investments
All inves ments are presented at fair value.The fair value of U.S.Government Securities is based upon discounted
future ci sh flows.The fair value of the positions in the state investment pools is the same as the value of the pool
shares.
Weighted
Average
Carrying Fair Maturity
Amount Value (Days)
U.S.Government Securities $ 32,125,165 $ 32,125,165 635
Municipal Bonds 13,344,663 13,344,663 492
Certificates of Deposit 295,898,976 295,898,976 309
Stat Investment Pools 27,503,126 27,503,126 40
$ 368,871,930 $ 368,871,930
Po olio weighted average maturity 324
Following GASB Statement No.72, "Fair Value Measurement and Application,' the City categorizes its fair value
measurements within the hierarchy established by generally accepted accounting principles.The hierarchy is based
on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets lor identical assets;Level 2 inputs are significant other observable inputs;and Level 3 inputs are significant
unobservable inputs. As of September 30, 2021, the City has the recurring fair value measurements for U.S.
Government securities of $32,125,165 valued using quoted prices for similar assets in active markets (Level 2
inputs).
64
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Legal and Contractual Provisions Governing Deposits and Investments
The Public Funds Investment Act(PFIA)(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, and (9) bid 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)banker's acceptances,(7)mutual funds,(8)investment pools,(9)guaranteed investment contracts,
and(10)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.
In addition,the funds of the City must be deposited and invested under the terms of a contract,contents of which
are set out in the Depository Contract Law. The depository bank places approved pledged securities for
safekeeping and trust with the City's agent bank in an amount sufficient to protect City funds on a day-to-day
basis during the period of the contract.The pledge of approved securities is waived only to the extent of the
depository bank's dollar amount of Federal Deposit Insurance Corporation (FDIC) insurance and any letters of
credit that are pledged.
Policies Governing Deposits and Investments
Foreign Currency Risk—The City's deposits and investments are not exposed to foreign currency risk.
Custodial Credit Risk—The City's policy is to be collateralized.The City was fully collateralized during the year.
Interest Rate Risk—In compliance with the City's Investment Policy,as of September 30,2021,the City minimized
its interest rate risk in the portfolio by limiting the weighted average maturity to 540 days,structuring the portfolio
so that maturities meet cash requirements for ongoing operations,thereby avoiding the need to sell securities on
the secondary market prior to maturity,monitoring credit ratings of portfolio positions to assure compliance with
rating requirements imposed by PFIA, and investing operating funds primarily in short-term securities, money
market mutual funds,money market accounts,or government investment pools.
Credit Risk—In compliance with the City s Investment Policy,as of September 30,2021,the City minimized credit
risk losses due to default of security issuer or backer by limiting investments to the safest rated securities,using a
registered investment advisor to provide investment and market advice,and diversifying the investment portfolio
so that potential losses on individual securities were minimized. All the City's purchased investments in U.S.
Agencies were rated AA+ by Standard&Poor's and Moody's respectively.
Concentration Risk-The City invests in pools,certificates of deposit,money market funds, municipal bonds,and
U.S.Government Securities.State law authorizes the City to invest in obligations of the United States government
and its agencies,commercial paper,money market funds,certificates of deposit of any state or federally chartered
bank obligations of states, agencies, counties, cities, and other political subdivisions of any state not rated less
than A or equivalent.All investments made in fiscal year 2021 were in the aforementioned categories.
Local Government Investment Pools
As of September 3Q 2021, the City's investments included TexPool, TexSTAR, and Texas Term TexasDAILY
Investment Pools.The investment pools'investments are not evidenced by securities that exist in physical or book
entry form and, accordingly,do not have custodial risk.The City had $19,949,967 invested in TexPool, $200,527
invested in TexSTAR,and $7,352,632 in TexasDAILY at September 30,2021.
65
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
TexPool is a public funds investment pool created by the Texas Treasury Safekeeping Trust Company to provide
a safe a ivironment for the placement of local government funds in authorized short-term, fully collateralized
investments,authorized by the PFIA.The Texas State Comptroller of Public Accounts has oversight responsibility
for TexPool.Oversight includes the ability to significantly influence operations,designation of management,and
accountability for fiscal matters.
TexPool uses amortized cost rather than fair value to report net position to compute share prices.The fair value
of the position in TexPool is the same as the value of TexPool shares.Accordingly,the City's investments in TexPool
are stated at cost,which approximates fair value.TexPool is currently rated AAAm by Standard and Poor's.This
rating indicates excellent safety and superior capacity to maintain principal value and limit exposure to loss.
The City is invested in Texas Short Term Asset Reserve program (TexSTAR), a local government investment
coopera ive created under the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code and the
PFIA, specifically tailored to meet state and local government investment objectives of preservation of principal,
daily liquidity,and competitive yield.
TexSTAR is co-administered by J.P.Morgan Investment Management Inc.and Hilltop Securities Inc.and is overseen
by a five-member government board made up of three participants and one of each of the program's co-
adminis rator or an affiliate.The responsibility of the board includes the ability to influence operations,designation
of management and accountability for fiscal matters.TexSTAR uses amortized cost rather than fair value to report
net asses to compute share price.The fair value of the City's position in TexSTAR is the same as the value of
TexSTAR shares.
The City is also invested in TexasDAILY,a portfolio of TexasTERM Local Government Investment Pool(Pool).The
Pool was established by the Texas Term Common Investment Contract,in conformity with Chapters 791 (Interlocal
Cooperation Act) and PFIA.An elected Advisory Board is responsible for the overall management of the Pool,
including formation and implementation of its investment and operating policies.The Pool's investment advisor
and adrr inistrator is PFM Asset Management, LLC.
TexasDAILY is a money market portfolio with daily liquidity that is rated AAAm by Standard&Poor's.TexasDAILY's
investment objectives are to provide shareholders with as high a level of current income as is consistent with
stability,safety of principal,and liquidity,and to maintain a stable net asset value(NAV)of$1.00 per share.
In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the Local
Government Investment Pools do not have any limitations and restrictions on withdrawals such as notice periods
or maximum transaction amounts.These pools do not impose any liquidity fees or redemption gates.
B. PROPERTY TAXES AND RECEIVABLES
Property taxes attach as an enforceable lien on January 1.Taxes are levied on or about October 1, are due on
November 1, and are past due the following February 1. The Williamson and Travis Central Appraisal Districts
establis ed appraisal values in accordance with requirements of the Texas Legislature.
The City Council levies taxes based upon the appraised values.Williamson County and Travis County bills and
collects he City's property taxes.
The property tax rates,established in accordance with state law,were based on 100%of the net assessed valuation
of real and personal property within the City on the 2020 tax roll.The tax rate, based on total taxable assessed
valuation of$15,357,959,326 was$0.439000 on each $100 valuation and was allocated to the General Fund and
Debt Service Fund at$0.296308 and $0.142692,respectively.
66
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Property taxes receivable as of September 30,2021,were as follows:
General Debt Service
Fund Fund Total
Current year levy $ 137,817 $ 66,181 $ 203,998
Prior years'levies 296,860 174,543 471,403
434,677 240,724 675,401
Less-allowance for uncollectible taxes (4,312) (2,407) (6,719)
$ 430,365 $ 238,317 $ 668,682
Allowances for uncollectible taxes are based upon historical experience in collecting property taxes.The City is
prohibited from writing off real property taxes without specific statutory authority from the Texas Legislature.
C. INTERFUND, RECEIVABLES,PAYABLES AND TRANSFERS
Interfund receivables and payables as of September 30,2021,were as follows:
Receivable Fund Payable Fund Receivable Payable
Debt Service Fund General Fund $ 10,882 $ 10,882
Governmental Funds $ 10,882 $ 10,882
Remaining balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3)
payments between funds are made.The City reports interfund transfers between many of its funds.These routine
transfers are consistent with the activities of the funds.
Transfers are used to(1)move revenues from the fund that statute or budget requires to collect them to the fund
that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds
collecting the receipts to the debt service fund as debt service payments become due,and (3) use unrestricted
revenues collected in the general fund to finance various programs accounted for in other funds in accordance
with budgetary authorizations. A summary of transfers between funds is shown on the following page.
67
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Governmental Funds Transfers In Transfers Out
General Fund-
Water and Sewer Fund $ 5,196,000 $ -
Self-Financed Construction Fund - 8,359,371
RR EDC Fund 911,000 -
Norimajor Governmental Funds 150,264 -
6,257,264 8,359,371
DebtService Fund-
RRI EDC Fund 4,937,951 -
Noi imajor Governmental Funds 1,343,129 11,192
6,281,080 11,192
RRTE C Fund -
Ger eral Fund - 911,000
Debt Service Fund - 4,937,951
Self-Financed Construction Fund 214,940 -
Debt-Financed Capital Projects Fund 49,292,250 1,833,107
No major Governmental Funds 2,382,429 -
51,889,619 7,682,058
Debt-Financed Capital Projects Fund-
RRI EDC Fund 1,833,107 49,292,250
Self Financed Construction Fund - 295,747
1,833,107 49,587,997
Self-F nanced Construction Fund-
Ger eral Fund 8,359,371 -
Debt-Financed Capital Projects Fund 295,747 -
RRI EDC Fund - 214,940
Noi imajor Governmental Funds 371,159 -
9,026,277 214,940
Other Governmental Funds-
Ger eral Fund - 150,264
Det t Service Fund 1,343,129
Self Financed Construction Fund - 371,159
RR1 EDC Fund 2,382,429
No major Governmental Funds 686,192 675,000
686,192 4,921,981
5 btotal of Governmental Funds 75,973,539 70,777,539
Proorietary Funds
Water and Sewer Fund-
Gerieral Fund - 5,196,000
5,196,000
Total ransfers $ 75,973,539 $ 75,973,539
68
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
D. JOINT VENTURE
The City entered into a partnership with the cities of Leander and Cedar Park and formed Brushy Creek Regional
Utility Authority(BCRUA).The BCRUA has the responsibility to provide reliable,cost-effective sources of water.
The City accounts for this partnership as a joint venture.Condensed financial statements for BCRUA are shown
below.Financial statements may be obtained at the BCRUA,221 East Main Street,Round Rock,Texas,78664.
STATEMENT OF NET POSITION
As of September 30,2021
Total City's Interest
ASSETS
Cash and cash equivalents $ 3,184,025 $ 218,239
Prepaids 13,616 5,151
Restricted investments 17,488,531 8,096,165
Capital assets 181,901,380 62,306,636
Total assets 202,587,552 70,626,191
DEFERRED OUTFLOWS OF RESOURCES 12,570,718 4,898,435
LIABILITIES
Accounts payable 452,043 158,578
Retainage payable 702,955 187,478
Due to partner cities 1,365,433 (34,527)
Current portion of bands payable 6,580,000 2,190,000
Accrued bond interest payable 995,439 336,399
Total current liabilities 10,095,870 2,837,928
Noncurrent portion of bonds payable 169,995,905 55,596,654
Total liabilities 180,091,775 58,434,582
NET POSITION $ 35,066,495 $ 17,090,044
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION
For the Year Ended September 30,2021
Total City's Interest
Operating revenues $ 2,240,361 $ 415,399
Interest expense (5,585,304) (1,746,018)
Other operating expenses (6,229,434) (2,677,557)
Other income 22,535 15,151
Changes in Net Position (9,551,842) (3,993,025)
Net position,October 1,2020 31,980,751 16,847,463
Contribution of capital,net 12,637,586 4,235,606
Net position,September 30,2021 $ 35,066,495 $ 17,090,044
69
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
E. CA PITAL ASSETS
Capital a set activity for the year ended September 30,2021,was as follows:
October 1, Additions/ Retirements/ September 30,
2020 Completions Adjustments 2021
Govern ental Activities:
Capital assets not being depreciated:
Land $ 110,451,124 $ 3,621,649 $ - $ 114,072,773
Construction in progress 91,903,856 44,681,874 (93,561,127) 43,024,603
Total apital assets not being depreciated 202,354,980 48,303,523 (93,561,127) 157,097,376
Capital i issets being depreciated:
Buildi igs and improvements 912,286,412 85,911,162 (1Q986,325) 987,211,249
Equip ment 89,079,498 6,295,005 (5,482,131) 89,892,372
Total apital assets being depreciated 1,001,365,910 92,206,167 (16,468,456) 1,077,103,621
Less acc mutated depreciation for:
Buildi igs and improvements 451,427,635 27,682,168 (1Q745,557) 468,364,246
Equiprnent 66,789,354 8,068,362 (5,356,675) 69,501,041
Total accumulated depreciation 518,216,989 35,750,530 (16,102,232) 537,865,287
Total apital assets being depreciated,net 483,148,921 56,455,637 (366,224) 539,238,334
Gove nmental activities capital assets,net $ 685,503,901 $ 104,759,160 $ (93,927,351) $ 696,335,710
Busine -Type Activities:
Capital assets not being depreciated:
Land $ 8,452,956 $ 3Q393 $ - $ 8,483,349
Construction in progress 19,01QS36 21,985,512 (17,746,025) 23,250,023
Total apital assets not being depreciated 27,463,492 22,015,905 (17,746,025) 31,733,372
Capital 4 ssets being depreciated:
Buildi igs and improvements 552,09Q401 29,461,743 (417,358) 581,134,786
Equip ent 18,38Q242 470,269 (1,276,736) 17,573,775
Total apital assets being depreciated 57Q47Q643 29,932,012 (1,694,094) 598,708,561
Less acc i mutated depreciation for:
Buildi ig and improvements 22Q024,285 18,731,782 35Q750 239,106,817
Equip nent 12,327,116 2,332,269 (1,251,623) 13,407,762
Total accumulated depreciation 232,351,401 21,064,051 (900,873) 252,514,579
Total apital assets being depreciated,net 338,119,242 8,867,961 (793,221) 346,193,982
Business-type activities capital assets,net $ 365,582,734 $ 3Q883,866 $ (18,539,246) $ 377,927,354
70
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 2,482,391
Public safety 5,623,784
Public works 20,645,332
Culture and recreation 6,999,023
Total depreciation expense-governmental activities $ 35,750,530
Business-Type Activities:
Water and sewer utility $ 20,580,556
Golf course 483,495
Total depreciation expense- business-type activities $ 21,064,051
Net Investment in Capital Assets
Detailed reconciliation of net investment in capital assets on the government-wide Statement of Net Position for
September 30,2021,follows:
Governmental Business-Type
Activities Activities Total
Net investment in capital assets:
Total capital assets(net of
accumulated depreciation) $ 696,335,710 $ 377,927,354 $ 1,074,263,064
Plus capital-related deferred
outflows of resources 2,384,306 3,956,055 6,340,361
Less capital-related long-term
debt (316,346,892) (72,342,981) (388,689,873)
Plus unspent bond proceeds 49,975,867 473,885 50,449,752
Net investment in capital assets
(net of related debt) $ 432,348,991 $ 310,014,313 $ 742,363,304
71
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
F. LONG-TERM DEBT
The following is a summary of long-term debt transactions, including current portion, of the City for the year
ended S ptember 30,2021:
Balance Balance
October 1, Refundings/ September 30, Due within
2020 Additions Retirements 2021 one year
Goverr mental Activities
Public I lacement
Genera obligation bonds $ 134,240,000 $ - $ (7,660,000) $ 126,580,000 $ 8,815,000
Certific,ites of obligation 58,025,000 55,015,000 (1,850,000) 111,190,000 1,915,000
Hotel t x revenue bonds 9,780,000 5,560,000 (7,275,000) 8,065,000 690,000
Sales tax revenue bonds 21,310,000 20,695,000 - 42,005,000 1,030,000
Limited tax notes - 2,770,000 - 2,770,000 495,000
Plus de erred amount:
For issuance premium 15,952,285 7,036,650 (1,373,759) 21,615,176 1,159,764
For issuance discount (61,032) - 13,679 (47,353) 11,116
Total Public Placement 239,246,253 91,076,650 (18,145,080) 312,177,823 14,115,880
Private Dlacernent
General obligation bonds 6,980,000 - (2,005,000) 4,975,000 1,27QO00
Certificates of obligation 30,000000 - (940,000) 29,060,000 1,11Q000
Limited tax notes 4,500,000 - (870,000) 3,63Q000 89QOOO
Sales to revenue bonds 6,475,000 - (3,810,000) 2,665,000 1,320000
Total Private Placement 47,955,000 - (7,625,000) 40,330,000 4,590,000
Lease p irchase payable 6,394,238 - (2,225,169) 4,169,069 2,037,029
Compensated absences 8,824,264 6,42Q413 (5,912,257) 9,332,420 6,252,721
Total g vernmental
activities 302,419,755 97,497,063 (33,907,506) 366,009,312 26,995,630
Business-Type Activities
Public locemen[
Revenu bonds 70,190,000 - (3,325,000) 66,865,000 3,475,000
Plus deferred amount:
For issuance premium 5,809,389 - (331,408) 5,477,981 331,408
Compe sated absences 708,788 582,995 (559,942) 731,841 578,154
Total Public Placement 76,708,177 582,995 (4,216,350) 73,074,822 4,384,562
Total bL siness-type
activitie 76,708,177 582,995 (4,216,350) 73,074,822 4,384,562
Total pr mary
govern ent $ 379,127,932 $ 98,080,058 $(38,123,856) $439,084,134 $ 31,380,192
The General,Hotel-Motel Occupancy Tax,Hotel-Motel Occupancy Venue Tax,and Library and Recreational Funds
are responsible for liquidating the liability for compensated absences in the governmental activities and the Water
and Sew r Fund is responsible for liquidating the liability for compensated absences in the business-type activities.
72
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Long-term debt at September 30,2021,is comprised of the following:
Business-
Governmental Governmental Type
Activities Activities Activities
Public Private Public
Placement Placement Placement
General Obligation Bonds:
$8,615,000 2013 refunding bonds due in annual installments
of$455,000 to$925,000 through 2024;interest at 1.00%to 1.65% $ 1,395,000 $ - $ -
$66,885,000 2014 GO bonds due in annual installments
of$-0-to$4,790,000 through 2039;interest at 3.0%to 5.0% 6Q715,000 - -
$32,465,000 2015 refunding bonds due in annual installments
of$-0-to$3,445,000 through 2032;interest at 4.0%to 5.0% 22,580000 - -
$6,995,000 2016 refunding bonds due in annual installments
of$-0-to$1,755,000 through 2032;interest at 2.0%to 4.0% 4,59Q000 - -
$28,585,000 2017 refunding bonds due in annual installments
of$-0-to$1,945,000 through 2042;interest at 3.0%to 5.0% 27,795,000 - -
$12,21Q000 2019 refunding bonds due in annual installments
of$1,330000 to$1,775,000 through 2027,interest at 3.0%to 5.0% 9,505,000 - -
$6,98Q000 2020 refunding bonds due in annual installments
of$375,000 to$2,005,000 through 2027;interest at 1.21% - 4,975,000 -
Total General Obligation Bonds 126,58Q000 4,975,000 -
Certificates of Obligation:
$27,270,000 2014 Combination tax and limited revenue certificates
of obligation due in installments of$175,000 to$1,700000
through 2039;interest at 2.0%to 4.0% 22,98Q000 - -
$6,915,000 2018 Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$510000
through 2038,interest at 3.0%to 5.0% 6,65Q000 - -
$27,250,000 2019 Combination tax and revenue certificates of
obligation due in installments of$-0-to$1,740,000
through 2044;interest at 2.0%to 5.0% 26,545,000 - -
$30,000,000 2020 Combination tax and limited revenue certificates
of obligation due in installments of$940,000 to$3,480,000
through 2032;interest at 1.81% - 29,060,000 -
$27,460,000 2021A Combination tax and limited revenue certificates
of obligation due in installments of $-0-to$1,510,000
through 2046,interest at 2.0%to 5.0% 27,460000 - -
$13,745,000 20218 Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$740,000
through 2046;interest at 2.0%to 5.0% 13,745,000 - -
$13,810,000 2021C Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$715,000
through 2046;interest at 2.0%to 4.0% 13,810,000 - -
Total Certificates of Obligation 111,190,000 29,060,000 -
Limited Tax Motes:
$4,500,000 2020 Limited tax notes due in annual installments of
$870000 to$925,000 through 2025;interest at 1.15% - 3,630000 -
$2,770,000 2021 Limited tax notes due in annual installments of
$495,000 to$605,000 through 2026;interest at 2.0%to 4.0% 2,770,000 - -
Total Limited Tax Notes 2,77Q000 3,63Q000 -
73
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Business-
Governmental Governmental Type
Activities Activities Activities
Public Private Public
Placement Placement Placement
Hotel Tax Revenue Bonds:
$7,715,000 2012 venue tax and hotel bonds due in annual installments
of$10,000 to$590,000 through 2022;interest at 2.0%to 4.0% $ 135,000 $ - $ -
$4,455,000 2016 r funding bonds due in annual installments
of$30,000 to$1 i30,OOO through 2024;interest at 2.0%to 4.0% 2,370,000 - -
$5,560,000 2021 r funding bonds due in annual installments
of$75,000 to$5 15,000 through 2037;interest at 4.0% 5,560,000 -
Total Hotel Tax Rc venue Bonds 8,065,000 - -
Sales Tax Reven ie Bonds:
$10,140,000 2017 refunding bonds due in annual installments
of$1.32 to$1.9 million through 2023;interest at 1.78% - 2,665,000 -
$21,310,000 2019 taxable bonds due in annual installments of$_0_
to$1.22 million through 2044;interest at 2.15%to 3.68% 21,310,000 - -
$20,695,000 2021 axable bonds due in annual installments
of$-0-to$1,010,000 through 2046,interest at 0.45%to 3.25% 20,695,000 -
Total Sales Tax Revenue Bonds 42,005,000 2,665,000 -
Utility System Revenue Bonds:
$8,000,000 2014 onds due in annual installments of
$-0-to$585,00 through 2034;interest at 2.0%to 4.0% - 5,995,000
$35,185,000 2016 refunding bonds due in annual installments of
$155,000 to$3,400,000 through 2035;interest at 2.0%to 5.0% - - 34,365,000
$32,785,000 2017 refunding bonds due in annual installments of
$360,000 to$4, 65,000 through 2039,interest at 3.09!6 to 5.0% - - 26,505,000
Total Utility Syste Revenue Bonds - - 66,865,000
Issuance premiur 1 21,615,176 - 5,477,981
Issuance discoun (47,353) - -
Lease purchases ayable:
$11,131,044 leasi s due in semi-annual installments including
interest rangin from 1.325%-2.9474%due in 2024.The lease
obligation is fu.ided with general revenue sources. 4,169,069 - -
Compensated absences 9,332,420 - 731,841
Total Primary Government Debt $ 325,679,312 $ 40,330,000 $ 73,074,822
74
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
The annual requirements to amortize bonded, certificates of obligation, loan, and lease debt at September 30,
2021,including interest,are as follows:
Governmental Activities:
Year Ending General Obligation Bonds and Certificates of Obligation
Sept.30, Public Placement Private Placement
Principal Interest Total Principal Interest Total
2022 $ 10,730,000 $ 9,813,903 $ 20,543,903 $ 2,380,000 $ 586,183 $ 2,966,183
2023 13,140,000 8,960,906 22,100,906 2,420,000 550,726 2,970,726
2024 11,775,000 8,418,050 20,193,050 3,285,000 514,634 3,799,634
2025 11,825,000 7,899,481 19,724,481 2,395,000 463,005 2,858,005
2026 12,105,000 7,433,344 19,538,344 3,415,000 421,875 3,836,875
2027-2031 56,185,000 29,416,056 85,601,056 16,660,000 1,216,695 17,876,695
2032-2036 54,19Q000 17,535,125 71,725,125 3,480,000 62,988 3,542,988
2037-2041 47,58Q000 7,032,825 54,612,825 - - -
2042-2046 20,240,000 1,291,100 21,531,100 - - -
$237,770,000 $ 97,800,790 $ 335,57Q790 $ 34,035,000 $ 3,816,106 $ 37,851,106
Year Ending Limited Tax Notes
Sept.30, Public Placement Private Placement
Principal Interest Total Principal Interest Total
2022 $ 495,000 $ 122,553 $ 617,553 $ 890,000 $ 41,745 $ 931,745
2023 535,000 78,900 613,900 90Q000 31,510 931,510
2024 555,000 57,500 612,500 915,000 21,160 936,160
2025 580000 35,300 615,300 925,000 10,638 935,638
2026 605,000 12,100 617,100 - - -
$ 2,770,000 $ 306,353 $ 3,076,353 $ 3,630,000 $ 105,053 $ 3,735,053
Year Ending Sept.30, Hotel Tax Revenue Bonds-Public Placement
Principal Interest Total
2022 $ 690,000 $ 248,818 $ 938,818
2023 655,000 281,900 936,900
2024 680,000 255,200 935,200
2025 705,000 227,500 932,500
2026 320,000 207,000 527,000
2027-2031 1,800,000 828,400 2,628,400
2032-2036 2,205,000 429,500 2,634,500
2037-2038 1,010,000 40,800 1,05Q800
$ 8,065,000 $ 2,519,118 $ 10,584,118
75
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Year Ending Sales Tax Revenue Bonds
Sept.30, Public Placement Private Placement
Principal Interest Total Principal Interest Total
2022 $ 1,030,000 $ 1,258,220 $ 2,288,220 $ 1,320,000 $ 47,437 $ 1,367,437
2023 1,940,000 1,119,083 3,059,083 1,345,000 23,941 1,368,941
2024 1,970,000 1,091,684 3,061,684 - - -
2025 2,000,000 1,060,930 3,060,930 - - -
2026 2,040,000 1,023,475 3,063,475 - - -
2027-2031 9,650,000 4,439,444 14,089,444 - - -
2032-2036 7,215,000 3,378,416 10,593,416 - - -
2037-2041 8,410,000 2,186,425 10,596,425 - - -
2042-2046 7,750,000 696,282 8,446,282 - - -
$ 42,005,000 $ 16,253,959 $ 58,258,959 $ 2,665,000 $ 71,378 $ 2,736,378
Yea Ending Sept.30, Lease Purchases
Principal Interest Total
2022 $ 2,037,029 $ 78,193 $ 2,115,222
2023 1,531,203 36,703 1,567,906
2024 600,837 8,675 609,512
$ 4,169,069 $ 123,571 $ 4,292,640
Business-T a Activities:
Yea Ending Sept.30, Utility System Revenue Bonds
Principal Interest Total
2022 $ 3,475,000 $ 2,587,631 $ 6,062,631
2023 3,530,000 2,426,631 5,956,631
2024 3,685,000 2,263,181 5,948,181
2025 3,86Q000 2,092,331 5,952,331
2026 4,045,000 1,908,950 5,953,950
2027-2031 17,675,000 7,663,869 25,338,869
2032-2036 18,310,000 4,809,025 23,119,025
2037-2039 12,285,000 1,058,675 13,343,675
$ 66,865,000 $ 24,810,293 $ 91,675,293
In prior years the City defeased certain revenue and general obligation bonds by placing the proceeds of new bonds
in an irrevocable trust to provide all future debt service payments on the old bonds.Accordingly, the trust account
assets and the liability for the defeased bonds are not included in the City's financial statements.At September 30,
2021,there are no bonds outstanding which have been reported as defeased.
Bond ordinances also provide for other limitations and restrictions. The City is in compliance with all significant
limitations and restrictions contained in the various bond ordinances.
In November 2013,the voters authorized the issuance of general obligation bonds to fund capital assets of the general
government. he full faith and credit of the City as well as the City's ad valorem taxing authority back general obligation
bonds.
76
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Date Amount Amount Unissued
Purpose Authorized Authorized Issued* Balance
Fire Department 11/5/2013 $ 16,500,000 $ 16,500,000 $ -
Parks&Recreation 11/5/2013 56,500,000 56,500,000 -
Library 11/5/2013 23,200,000 1,500,000 21,700,000
Police&Fire 11/5/2013 27,400,000 27,400,000 -
$ 123,600,000 $ 101,900,000 $ 21,700,000
*"Amount issued"column is adjusted pursuant to rules used by the Texas Attorney General.
The City may incur non-voted debt payments from or secured by its levy and collection of ad valorem taxes and other
sources of revenue, including tax notes, public property finance contractual obligations, and leases for various
purposes.
Utility Revenue Bonds
Utility revenue bonds are used to finance the acquisition and construction of major capital improvements to the City's
water and sewer systems.The City is required by bond ordinances to pledge the net revenues of the waterworks and
sewer system for the retirement of its outstanding revenue bonds, including interest thereon,and is required for such
purposes to maintain debt service funds and bond reserve funds for all outstanding revenue bonds.
The debt service funds are restricted within the Enterprise Fund and require that net revenues of the City's waterworks
and sewer system,after operating and maintenance expenses are deducted,be irrevocably pledged by providing equal
monthly installments which will accumulate to the semi-annual principal and interest requirements as they become
due. For fiscal year 2021, net revenues available for debt service were 4.68 times the average annual debt service
requirement.
The bond reserve funds for revenue bond retirement are also restricted within the Enterprise Fund. The City is in
compliance with the requirement to maintain a combined reserve fund containing cash and investments in an amount
equal to the average annual principal and interest requirements of all bonds then outstanding.The City also covenants
under the bond indentures that reserve funds shall be invested in time deposits, certificates of deposit and direct or
guaranteed obligations of the United States of America.
Hotel Tax Revenue Bonds
Hotel occupancy tax revenue bonds were issued to fund the City's portion of the convention center complex.The debt
service fund for the hotel tax revenue bonds, aggregating $498,319 at September 30, 2021, is reported in the
governmental funds.Bond covenants require that the hotel tax revenues be irrevocably pledged by providing quarterly
installments,which will accumulate to the semi-annual principal and interest requirements as they become due.
The bond reserve fund for hotel tax revenue bond retirement aggregates$866,675 at September 30,2021.This amount
is in compliance with the requirements contained in the bond's Indenture Agreement This agreement requires half of
the average annual debt service requirements of the bonds in the reserve fund be deposited upon issuance of the
bonds,with quarterly installments until the required reserve is attained.
Sales Tax Revenue Bonds
Sales tax revenue bonds have been issued to fund transportation improvements.The Round Rock Transportation and
Economic Development Corporation (RRTEDC)issued the sales tax revenue bonds. RRTEDC is a blended component
unit of the City of Round Rock which collects half of 1%of the sales tax collected by the State on its behalf.Although
RRTEDC is presented as a blended component unit, none of the City's assets are pledged to payment of the bonds.
The bonds are secured solely by a pledge of the revenues of the RRTEDC.
77
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
The debt service fund for the sales tax revenue bonds,aggregating $1,638,571 at September 30,2021, is reported in
the governmental funds. Bond covenants require that RRTEDC's share of the sales tax is pledged as security for the
bonds.RRTE C provides monthly installments that accumulate to the semi-annual principal and interest requirements
as they beco a due.
A reserve fun I was not established for these bonds.RRTEDC purchased bond insurance to provide for payment of the
principal and interest requirements in the event that pledged revenues are not sufficient.
2021 Refund ingJlssuances
In May 2021, the City issued $2,770,000 Limited Tax Notes, Series 2021. The proceeds from the sale will be used to
purchase veh cies and equipment.The notes were issued with an interest rate of 2%to 4%and mature through 2026.
Additionally, n May 2021,the City issued three(3)Combination Tax and Limited Revenue Certificates of Obligation:
• Serie 2021A- $27,460,000. Proceeds from the sale of the Certificates will be used for public improvements.
The t onds were issued with an interest rate of 2.0%to 5.0%and mature through 2046.
• Series 20216 - $13,745,000. Proceeds from the sale of the Certificates were used for off-site infrastructure
relatf d to the Kalahari project to include transportation improvement projects, extending water, wastewater,
and rainage system, and extending a reuse water transmission line.The bonds were issued with an interest
rate c f 2.0%to 5.0%and mature through 2046.All debt payments will be paid from tax revenues generated by
the Kalahari project.
• Series 2021C - $13,810,000 Proceeds from the sale of the Certificates were used for on-site infrastructure
related to the Kalahari project and includes transportation improvements, and constructing, improving or
extending the City's water,wastewater, and drainage system.The bonds were issued with an interest rate of
2.0% to 4.0%and mature through 2046.All debt payments will be paid from tax revenues generated by the
Kalahari project.
In May 2021,the City also issued $20,695,000 of Senior Lien Sales Tax Revenue Bonds,Taxable Series 2021. Proceeds
were used to construct a convention center facility.The bonds were issued with an interest rate of 0.45%to 3.25%to
mature throu h 2046.
In Septembei 2021,the City issued $5,560,000 Venue Tax and Hotel Occupancy Tax Revenue Refunding Bonds,Series
2021.This debt was issued to refund $6,610,000 of Series 2012 Venue Tax and Hotel Occupancy Tax Revenue Bonds.
The bonds w re issued with an interest rate of 4.0%and mature through 2038.The refunded bonds are considered
defeased, and the debt for these bonds has been removed from the City's financial statements. This is a current
refunding and was recorded as an expenditure on the Statement of Revenues, Expenditures, and Change in Fund
Balance.
This refunding reduced the total debt service payments over the next 17 years by $1,268,548 and resulted in an
economic gain(i.e.,the difference between the present value of the debt service payments of the refunded debt and
the refunding bonds)of$821,993.
G. ACCRUED COMPENSATED ABSENCES
Changes to a crued compensated absences for the year ended September 30,2021,were as follows:
Governmental Business-Type
Activities Activities
Balance,October 1,2020 $ 8,824,264 $ 708,788
A ditions 6,420,413 582,995
Reductions (5,912,257) (559,942)
Balance,September 30,2021 $ 9,332,420 $ 731,841
78
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Accrued compensated absences due within one year were $6,252,721 for governmental activities and $578,154 for
business-type activities. Liabilities for accrued compensated absences are funded from General, Hotel-Motel
Occupancy Tax,Hotel-Motel Occupancy Venue Tax,and Library and Recreational Funds'revenues forthe governmental
activities and Water and Sewer Fund program revenues for the business-type activities.
H. RESTRICTED ASSETS
The following summarizes restricted assets by purpose at September 30,2021:
Cash Property Sales Accrued
and Cash Taxes Tax Interest
Equivalents Investments Receivable Receivable Receivable
Governmental Activities:
Debt Service Fund $ 5,508,284 $ - $ 238,317 $ - $ -
Restricted by debt covenants-
Round Rock Transportation
and Economic Development
Corporation Fund 19,249,635 56,78S,062 - 2,225,691 43,791
Debt-Financed Capital
Projects Fund 13,317,346 36,651,489 - - 7,032
Other Governmental funds 1,465,590 4,323,388 - - 1,096
Total Governmental Activities $ 39,540,855 $97,759,939 $ 238,317 $ 2,225,691 $ S1,919
Cash Accrued
and Cash Interest
Equivalents Investments Receivable
Business-Type Activities:
Water and Sewer Fund-
Impact fees $ 1,118,428 $ 3,299,284 $ -
Construction 2,309,183 4,809,264 -
Customer deposits 1,872,125 - -
Revenue bond debt service 209,605 - -
Accrued interest receivable - - 4,637
Total Business-Type Activities $ 5,509,341 $ 8,108,548 $ 4,637
V. OTHER INFORMATION
A. COMMITMENTS AND CONTINGENCIES
Tax Collections
The City has a contract with the tax offices of Williamson and Travis counties to collect City taxes and deposit monies
to the City's accounts. For this service,Williamson County was paid $10,035 and Travis County was paid $911 for the
fiscal year ended September 30,2021.
Commitments for Road Construction
The City's component unit,the Round Rock Transportation and Economic Development Corporation has entered into
various commitments with the State of Texas, Department of Transportation,and neighboring cities/counties relative
to the construction of roadways.
79
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Water SuppIV Agreements
On May 2,19 8,the City entered into the"Water Supply Contract"with the Brazos River Authority(BRA),providing the
City the right to purchase 6,720 acre-feet of water per year from Lake Georgetown.A new agreement,"System Water
Availability Agreement for Lake Georgetown"dated September 1,2001,replaced that agreement.The new agreement
revised the rz to methodology from a tiered system rate,wherein rates change based upon the City s consumption,to
a level system rate.For the fiscal year ended September 30,2021,the City's cost under this contract was$530,880.
On Septemb r 12, 1991,the City entered into the"Replacement Water Supply Agreement"with the BRA,wherein it
received the ight to purchase 8,134 acre-feet of water per year from Stillhouse Hollow Lake.Rights for an additional
10,000 acre-eet of water were acquired in the November 13, 1996, "System Water Supply Agreement". These
agreements ere replaced with the"System Water Availability Agreement for Lake Stillhouse Hollow"dated September
1,2001.Under this agreement,the City purchases 18,134 acre-feet per year at the new system rate.For the fiscal year
ended Septei nber 30,2021,the City's cost under this contract was$1,432,586.
Effective September 1, 2001, the City entered into a "System Water Availability Agreement for Colorado River Basin
Water" with the BRA, wherein it received reserved water rights for an additional 6,944 acre-feet of water. Two
subsequent agreements granted Round Rock rights to 13,984 additional acre-feet of water per year from the Colorado
River Basin.F r the fiscal year ended September 30,2021,the City's cost under these contracts was$1,666,587.
Future annua charges under the Water Supply Agreements will be based upon the system rate periodically set by the
BRA.
Regional W stewater Project
In December 2009,the cities of Round Rock,Austin and Cedar Park purchased the Brushy Creek Regional Wastewater
System (BCRWWS) assets from the Lower Colorado River Authority and entered into a Master Contract for the
Financing,Construction,Ownership and Operation of the BCRWWS.The Master Contract provided for the terms and
conditions by which the cities would jointly own and operate the BCRWWS.
In June 2010, the cities of Round Rock,Austin and Cedar Park sold a share of the BCRWWS assets to the City of Leander,
and all parties entered into the Amended and Restated Master Contract for the Financing, Construction, Ownership
and Operatioi of the Brushy Creek Regional Wastewater System,
The BCRWW treatment plant ownership is allocated based on the amount of reserved capacity each city has in the
system.The system currently has a total treatment capacity of 24.5 MGD which is sufficient to meet future projected
flows through 2023.The City of Round Rock's current reserved capacity in the system is 20.1 MGD,or 81.969'x,of total
treatment capacity.The BCRWWS East Plant is currently undergoing a 10 MGD expansion project of which 1.2 MGD
will be alloca ed to the City Round Rock. Construction is ongoing as of September 30, 2021, and is estimated for
completion ir summer 2023.
The cities of Round Rock,Austin, Cedar Park, and Leander entered into an interlocal agreement in July 2018 for the
City of Round Rock to take over operations and maintenance of the BCRWWS effective October 1, 2018. Previously,
the BCRWWS was operated by the Brazos River Authority on behalf of the cities.
The cost of the BCRWWS operation and maintenance expenses are allocated based on each city's annual flow
percentage into the system. For fiscal year ended September 30, 2021, the City of Round Rock's allocated share of
operation and maintenance expenses was 67.95%.
Other
The City is a i Jefendant in a number of lawsuits arising principally from claims against the City for alleged improper
actions by Ci employees. Total damages claimed are substantial;however,it has been the City's experience that such
80
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
actions are usually dismissed or settled for amounts substantially less than the claimed amounts. The City Attorney
estimates that the potential claims against the City not covered by various insurance policies would not materially
affect the financial condition of the City.
Arbitrage Rebate
Due to requirements of the Tax Reform Act of 1986, the City annually contracts for the computations of arbitrage
rebate requirements for the City's various bond issues.At September 30,2021,the potential rebate was calculated at
$0.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan that permits them to defer a portion of their current salary
until future years.Any contributions made to the deferred compensation plan, in compliance with Section 457 of the
Internal Revenue Code(IRC),are not available to employees until termination of employment,retirement,death or an
unforeseen emergency.A third-party administrator,Nationwide Retirement Solutions,administers contributions to the
plan. Effective January 1997, and in compliance with the provisions of the IRC Section 457(8),the plan assets are in
custodial accounts for the exclusive benefit of the plans' participants and beneficiaries. In accordance with GASB
Statement No.32,the City provides neither administrative services nor investment advice to the plans and therefore,
no fiduciary relationship exists between the City and the deferred compensation plan.
Tax Abatements
The City enters into economic development agreements designed to promote development and redevelopment within
the City,create primaryjobs,stimulate commercial activity,generate additional sales tax,and enhance the property tax
base and economic vitality of Round Rock.The City negotiates property tax,hotel occupancy tax,sales tax,and mixed
beverage tax rebates on an individual basis. Each agreement was negotiated under Chapter 380 of the Texas Local
Government Code. Under a 380 agreement, the recipient pays the total taxes due to the City,and the City rebates a
portion of the taxes paid based on the terms of the agreement.The City has a recapture clause in each agreement.
Amounts paid for the tax abatement and tax rebate programs for the year ended September 30,2021,are summarized
below.
Amount of
Tax Rebate Program Taxes Rebated
Hotel Occupancy Tax $ 91,468
Mixed Beverage Tax 102,201
Property Tax 2,422,279
Sales Tax 9,953,216
In addition to reduced taxes,the City has some agreements that include economic incentive payments.Tax revenues
were reduced as a result of the City's 380 agreements.The City is not subject to any tax abatement agreements entered
into by other governmental entities. However,the City may also act as a conduit for the refunding of state sales and
hotel occupancy taxes generated by a qualifying project under Sections 151.429(h), 351.102(b), and 351.1022 of the
Texas Tax Code,Section 2303.5055 of the Texas Government Code,and other applicable laws.
B. RISK MANAGEMENT
The City is a member of the Texas Municipal League's Intergovernmental Risk Pool(Pool).The Pool was created for the
purpose of providing coverage against risks, which are inherent in operating a political subdivision. The City pays
annual premiums to the Pool for liability,property and workers'compensation coverage and all billed premiums upon
the coverage have been paid.The City's agreement with the Pool provides that the Pool will be self-sustaining through
member premiums and will provide reinsurance contracts through commercial companies.The Pool agrees to handle
all liability, property and workers' compensation claims and provide any defense as is necessary. The Pool makes
81
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
available to the I City loss control services to assist the City in following a plan of loss control that may result in reduced
losses.The City agrees that it will cooperate in instituting any and all reasonable loss control recommendations made
by the Pool.The City has experienced no significant reductions in coverage through the Pool over the past year.There
have been nc insurance settlements exceeding Pool coverage for any of the past three years.
Self-Funded Health Insurance Fund
The City is se If-insured for medical and dental claims.The self-insurance program is maintained in the Self-Funded
Health Insurz nce Internal Service Fund. This program provides health benefit coverage in accordance with a pre-
approved plan that establishes coverage limits per employee per year with unlimited health coverage benefits.The
City purchases commercial insurance for claims in excess of a contractual City liability limit.
Additionally, ommercial insurance covers claims in excess of an aggregate amount for the City up to$1,000,000 per
plan year.Se led claims have not exceeded the commercial coverage in any of the past three fiscal years.The liability
is estimated based upon claims settled within the next month.An analysis of claims activities is presented below.
Claims and
Beginning Changes in Actual Claim Ending
Fisc 1 Year Liability Estimates Payments Liability
2 19 $ 486,782 $ 11,412,211 $ 11,313,542 $ 585,451
2 20 585,451 9,899,294 10,296,152 188,593
2 21 188,593 11,652,169 10,987,608 853,154
C. EMPLO EE RETIREMENT PLAN
Plan Description
The City pa icipates as one of 895 plans in the non-traditional, joint contributory, hybrid defined benefit plan
administered by TMRS. TMRS is an agency created by the State of Texas and administered in accordance with the
TMRS Act,Su Dtitle G,Title 8,Texas Government Code(the TMRS Act)as an agent multiple-employer retirement system
for municipal employees in the State of Texas.The TMRS Act places the general administration and management of
the System ith a six-member Board of Trustees.Although the Governor,with the advice and consent of the Senate,
appoints the Board,TMRS is not fiscally dependent on the State of Texas.TMRS'defined benefit pension plan is a tax-
qualified plari under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly available annual
comprehensive financial report(ACFR)that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Pro tided
TMRS provides retirement,disability,and death benefits.Benefit provisions are adopted by the governing body of the
City,within 0 e options available in the state statutes governing TMRS.
At retirement the benefit is calculated as if the sum of the employee's contributions,with interest,and the city-financed
monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement
benefit in one of seven payment options. Members may also choose to receive a portion of their benefit as a partial
lump sum distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the
member's de Dosits and interest.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
A summary of plan provisions for the City is as follows:
Employee deposit rate 7%
Matching ratio(City to employee) 2 to 1
Years required for vesting 5
Service retirement eligibility 20 years and any age,vested and age 60
Updated Service Credit 100%Repeating,Transfers
Annuity increase(to retirees) 70%of CPI Repeating
Supplemental death benefits for employees
and retirees Yes
Employees Covered by Benefit Terms
At the December 31, 2020, valuation and measurement date,the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 397
Inactive employees entitled to but not yet receiving benefits 437
Active employees 974
Total 1,808
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city
matching percentages are either 100%, 150%,or 200%,both as adopted by the governing body of the city.Under the
state law governing TMRS,the contribution rate for each city is determined annually by the actuary, using the entry
age normal actuarial cost method.The actuarially determined rate is the estimated amount necessary to finance the
cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued
liability.The City's contribution rate is based on the liabilities created from the benefit plan options selected by the
City and any changes in benefits or actual experience over time. Employees for the City were required to contribute
7%of their annual gross earnings during the fiscal year.The City elected to contribute for calendar years 2020 and
2021 as follows:
2020 2021
Total Retirement Rate 15.35% 15.84%
Supplemental Death Benefit 0.14 0.14
Total Combined Contribution 15.49% 15.98%
Accordingly,contributions to TMRS for the year ended September 30,2021,were$11,865,291 and were equal to the
required contributions.
Net Pension Liability
The City's net pension liability(NPL)was measured as of December 31,2020,and the total pension liability(TPL)used
to calculate the NPL was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The TPL in the December 31,2020,actuarial valuation was determined using the following actuarial assumptions:
Inflation 2.50%per year
Overall payroll growth 2.75%per year
Investment rate of return 6.75%net of pension plan investment expense,including inflation
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB (10)
mortality tables with the Public Safety table used for males and the General Employee table used forfemales. Mortality
rates for heal by retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality
tables.Ther es for actives,healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP
to account f future mortality improvements.For disabled annuitants,the same mortality tables for healthy retirees is
used with a year set-forward for males and a 3-year set-forward for females.In addition,a 3.5%and 3.0%minimum
mortality rat is applied, for males and females respectively, to reflect the impairment for younger members who
become disa ded.The rates are projected on a fully generational basis by Scale UMP to account for future mortality
improvemenis subject to the floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over
the 4-year period from December 31, 2014,to December 31, 2018.They were adopted in 2019 and first used in the
December 31,2019,actuarial valuation.The post-retirement mortality assumption for annuity purchase rates is based
on the Morta ity Experience Investigation Study covering 2009 through 2011 and dated December 31,2013.Plan assets
are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income,
in order to satisfy the short-term and long-term funding needs of TMRS.
The long-terin expected rate of return on pension plan investments was determined using a building-block method in
which best a timate ranges of expected future real rates of return(expected returns, net of pension plan investment
expense andinflation)are developed for each major asset class.These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage
and by addin 3 expected inflation.In determining their best estimate of a recommended investment return assumption
under the vi rious alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean
(aggressive) ithout an adjustment for time (conservative) and (2) the geometric mean (conservative) with an
adjustment f r time(aggressive).The target allocation and best estimates of real rates of return for each major asset
class in fiscal year 2021 are summarized in the table below:
Long-Term Expected
Target Real Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity 30.0% 5.30%
Core Fixed Income 10.0% 1.25%
Non-Core Fixed Income 20.0% 4.14%
Real Return 10.0% 3.85%
Real Estate 10.0% 4.00%
Absolute Return 10.0% 3.48%
Private Equity 10.0% 7.75%
Total 100.0%
Singte Discount Rate
The discount rate used to measure the TPL was 6.75%.The projection of cash flows used to determine the discount
rate assumed that employee and employer contributions will be made at the rates specified in statute.Based on that
assumption, he pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of urrent active and inactive employees.Therefore,the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the TPL.
84
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL.STATEMENTS
SEPTEMBER 30,2021
Changes in the Net Pension Liability
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at December 31,2019 $ 311,206,293 $ 271,066,213 $ 40,140,080
Changes for the year.
Service cost 13,315,518 - 13,315,518
Interest 21,130,343 - 21,130,343
Difference between expected and actual
experience 2,225,761 - 2,225,761
Changes of assumptions - - -
Contributions-employer - 11,366,407 (11,366,407)
Contributions-employee - 5,184,834 (5,184,834)
Net investment income - 20,602,217 (20,602,217)
Benefit payments,including refunds of
employee contributions (9,643,873) (9,643,873) -
Administrative expense - (133,140) 133,140
Other - (5,193) 5,193
Net changes 27,027,749 27,371,252 (343,503)
Balance at December 31,2020 $ 338,234,042 $ 298,437,465 $ 39,796,577
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the NPL of the City,calculated using the discount rate of 6.75%,as well as what the City's NPL
would be if it were calculated using a discount rate that is 1-percentage-point lower(5.75%) or 1-percentage-paint
higher(7.75%)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
5.75% 6.75% 7.75%
City's Net Pension Liability $ 94,216,328 $ 39,796,577 $ (4,374,727)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in a separately issued TMRS financial
report.That report may be obtained on the Internet at www.tmrs.com.
85
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL.STATEMENTS
SEPTEMBER 30,2021
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2021,the City recognized pension expense of$9,572,342.At September 30, 2021,
the City repo ed deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience $ 5,240,130 $ 32,548
Difference between projected and actual investment earnings - 7,703,447
Changes in actuarial assumptions used to determine pension liability 395,144 59,349
Pension contributions after measurement date 8,878,422 -
Total $ 14,513,696 $ 7,795,344
Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date
of$8,878,422 will be recognized as a reduction of the NPL for the measurement year ending December 31,2021 (i.e.,
recognized ir the City's financial statements September 30, 2022).Other amounts reported as deferred outflows and
inflows of res urces related to pensions will be recognized in pension expense as follows:
Measurement Net Deferred
Year Ended Outflows(Inflows)
December 31, of Resources
2021 $ (1,317,187)
2022 1,487,407
2023 (3,114,897)
2024 511,266
2025 273,341
Thereafter -
Total $ (2,160,070)
D. OTHER OST-EMPLOYMENT BENEFITS
The City participates in funding two OPER plans.One plan is the Supplemental Death Benefits Fund(SDBF)administered
by TMRS.The other is medical and prescription drug coverage offered to retirees and their dependents and is a self-
funded healtb insurance plan.
SDBF: TMRS administers a defined benefit group-term life insurance plan known as the Supplemental Death Benefits
Fund (SDBF). This is a voluntary program in which the City has elected, by ordinance, to provide group-term life
insurance coverage (supplemental death benefits) to both current and retired employees. The City may terminate
coverage unc er and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year,
to be effectiv the following January 1.The retiree portion of the SDBF is considered a single-employer plan.
Self-Funded Health Insurance: The City offers its retirees and their dependents medical,dental and vision insurance
until age 65. Medical insurance includes prescription drug coverage.The plans are the same as the active plans. The
retirees are required to make significantly higher contributions than the actives. However,these higher contributions
still do not fu ly cover the cost of the retirees on a stand-alone basis,thus generating a retiree medical liability.Once a
retiree or deF endent becomes eligible for Medicare at age 65, he/she is no longer eligible for benefits.Also, retirees
are no longei eligible if they have insurance or are eligible for insurance through another employer.This significantly
limits the nur iber of retirees on the plan, the benefits paid during the life of a retiree and consequently,the liability.
This plan is considered a single-employer defined benefit OPEB plan.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
Benefits Provided
SDBF: Payments from this fund are similar to group-term life insurance benefits and are paid to the designated
beneficiaries upon the receipt of an approved application for payment.The death benefit for active employees provides
a lump-sum payment approximately equal to the employee's annual salary(calculated based on the employee's actual
earnings for the 12-month period preceding the month of death). Retired employees are insured for $7,500; this
coverage is an"other post-employment benefit,"or OPEB.The City offers supplemental death benefits to both active
employees and retirees.
As the SDBF covers both active and retiree participants,with no segregation of assets,the SDBF is considered to be an
unfunded OPEB plan(i.e.,no assets are accumulated).
Self-Funded Health Insurance: All retirees who are eligible to receive pension benefits under the City s pension system
are eligible for OPEB.Retirees may also enroll eligible dependents under the medical,dental,and vision plan(s)in which
they participate.Eligible dependents of the retiree include a legally married spouse,children under age 26,and eligible
disabled children beyond 26 years of age,if covered prior to age 26.A surviving spouse of a deceased retiree is ineligible
to continue retiree medical, dental, and/or vision coverage.However, a surviving spouse may elect COBRA coverage
for no more than 36 months and are required to pay the entire COBRA premium plus a 2 percent administrative fee.
Employees Covered by Benefit Terms
At the December 31, 2020, valuation and measurement date, the following employees were covered by the benefit
terms:
SDBF:
Inactive employees currently receiving benefits 321
Inactive employees entitled to but not yet receiving benefits 134
Active employees 974
Total 1,429
Self-Funded Health Insurance:
Inactive employees(retirees) 36
Active employees 941
Total 977
Contributions
SDBF: The City contributes to 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 and represents 0.14%of required contributions.
The City's contributions to SDBF for the years ended 2021, 2020, and 2019 were $16,388, $14,889, and $14,528,
respectively,which equaled the required contributions each year.The funding policy for the SDBF program is to assure
that adequate resources are available to meet all death benefit payments for the upcoming year, the intent is not to
pre-fund retiree term life insurance during employees'entire careers.
The retiree-only portion of the SDBF rate was 0.05%for the year ended 2021 and 0.02%for the years ended 2020 and
2019.
Self-Funded Health Insurance: OPEB are funded on a pay-as-you-go basis.The City recognizes the cost of providing
these benefits as an expense and corresponding revenue in the Internal Service Fund (self-funded health insurance).
Medical,dental,vision,and life insurance premiums are reported in this fund.
87
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
The City is under no obligation,statutory or otherwise,to offer OPEB or to pay any portion of the cost of OPEB to any
retirees or thE it dependents.Allocation of City funds to pay OPEB or to make OPEB available is determined on an annual
basis by the City Council as part of the budget approval process.
TotalOPEB Liability
For the fiscal year ended September 30,2021,the City recognized a total OPEB liability of$20,399,328, $3,090,138 of
which was for the SDBF, and $17,309,190 for the Self-Funded Health Insurance plan. Both were measured as of
December 31 2020,and were determined by an actuarial valuation as of that date.
Actuarial As umptions
The total OPI B liability in the December 31, 2020, actuarial valuation was determined using the following actuarial
assumptions:
SDBF Self-Funded Health Insurance
Inflation 2.5% 2.5%
Salary increas s 3.5%to 11.5%including inflation 3.0%
Discount rate * 2.00% 2.75%
Healthcare cost trend rate None Getzen model(6.86%to 4.29%)
Retirees'shay of benefit- Varies based on plan elected and
related costs $0 years of service
Actuarial cost ethod*** Entry Age Normal Cost Method Entry Age Normal Cost Method
Mortality For service retirees:2019 Municipal Retirees Mortality rates were based on the RP-
of Texas Mortality Tables. The rates are 2014 Dynamic Table projected using
projected on a fully generational basis with MP-2019
scale UMP.
For disabled retirees: 2019 Municipal
Retirees of Texas Mortality Tables with a 4
year set-forward for males and 3 year set-
forward for females.In addition,a 3.5%and
3%minimum mortality rate will be applied
to reflect the impairment for younger
members who become disabled for males
and females, respectively. The rates are
projected on a fully generational basis by
Scale UMP to account for future mortality
improvements subject to the floor.
Development f claims None Retiree medical and pharmacy claims
were projected to the following fiscal
year and age-adjusted to age 65. A
composite retiree contribution was
netted out.That net age-65 cost was then
average with the trended, age-65 cost
from the prior valuation to smooth out
any fluctuations.That average then was
allocated to all pre-65 ages using the
same age factors.
**Because this plan is considered an unfunded trust under GASB Statement No.75,the relevant discount rate for calculating the total
OPER liability is 3ased on the Fidelity Index's"20-Year Municipal GO AA Index"rate as of December 31,2020.
***This method develops the annual cost of the plan in two parts: that attributable to benefits accruing in the current year,known as
the normal cost,and that due to service earned prior to the current year,known as the amortization of the unfunded actuarial accrued
liability.The normal cost and the actuarial accrued liability is calculated individually for each member.The normal cost rate for an
88
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
employee is the contribution rate which,if applied to a member's compensation throughout their period of anticipated covered service
with the municipality,would be sufficient to meet all benefits payable on their behalf.The normal cost is calculated using an entry age
based on benefit service with the current city.If a member has additional time-only vesting service through service with other TMRS
cities or other public agencies,they retain this for determination of benefit eligibility and decrement rates.The salary-weighted average
of these rates is the total normal cost rate.The unfunded actuarial accrued liability reflects the difference between the portion of
projected benefits attributable to service credited prior to the valuation date and assets already accumulated.
Specific to the self-funded health insurance plan,at the time the employee enters the plan(usually at date of hire),the
present value of future benefits is set equal to the present value of future normal costs. Instead of the normal costs
being a level dollar amount,they are set as a level percent of salary.The accrued liability then is just the present value
of past normal costs brought forward from the entry date to the measurement date.
SDBF: The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS
over the period December 31,2014,to December 31,2018.They were adopted in 2019 and first used in the December
31,2019,actuarial valuation.
Changes in the Total OPER Liability
Self-Funded
Health
SDBF Insurance Total
Balance at December 31,2019 $ 2,468,900 $ 16,141,759 $ 18,610,659
Changes for the year:
Service cost 148,032 1,405,816 1,553,848
Interest 69,727 472,779 542,506
Differences between expected and actual
experience (42,783) - (42,783)
Changes in assumptions or other inputs 461,065 - 461,065
Benefit payments (14,803) (711,164) (725,967)
Net changes 621,238 1,167,431 1,788,669
Balance at December 31,2020 $ 3,090,138 $ 17,309,190 $ 20,399,328
Sensitivity of the Total OPER Liability to Changes in the Discount Rate
The following tables present the total OPEB liability of the City,calculated using the discount rate(2%for SDBF and
2.75% for the Self-Funded Health Insurance plan), as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current
discount rate:
Current
1%Decrease Discount Rate 1%Increase
1.00% 2.00% 3.00%
SDBF $ 3,881,200 $ 3,090,138 $ 2,495,537
Current
1%Decrease Discount Rate 1%Increase
1.75% 2.75% 3.75%
Self-Funded Health Insurance $ 18,455,877 $ 17,309,190 $ 16,198,057
89
i
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL.STATEMENTS
SEPTEMBER 30,2021
The following table presents the total OPER liability of the City,calculated using the healthcare trend rate of 6.86%to
4.29%,as well as what the City's total OPEB liability would be if it were calculated using a healthcare trend rate that is
1-percentag point lower(5.86%to 3.29%)or 1-percentage-point higher(7.86%to 5.29%)than the current healthcare
trend rate:
Healthcare
1%Decrease Trend Rate 1%Increase
Self-Funded Health Insurance $ 15,487,206 $ 17,309,190 $ 19,414,093
OPER Expens a and Deterred Outflows of Resources and Deferred Inflows of Resources
For the fiscal ear ended September 30,2021,the City recognized total OPEB expense of$1,514,175,$328,447 of which
was for the SDBF,and $1,185,728 for the Self-Funded Health Insurance plan.At September 30,2021,the City reported
deferred outfl ws of resources and deferred inflows of resources related to OPEB from the fallowing sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Self- Self-
Funded Funded
Health Health
SDBF Insurance Total SDBF Insurance Total
Difference bet Afeen
expected arid actual
economic a perience $ $ $ $ 88,001 $ 175,725 $ 263,726
Changes in as umptions
and other ir puts 793,242 898,460 1,691,702 94,614 348,354 442,968
OPEB contributions after
measureme it date 26,552 572,792 599,344 - - -
Total $ 819,794 $ 1,471,252 $ 2,291,046 $ 182,615 1 524,079 $ 706,694
Deferred outfl ws of resources related to OPEB resulting from contributions subsequent to the measurement date of
$599,344 will be recognized as a reduction of the total OPEB for the measurement year ending December 31,2021 (i.e.
recognized in the City's financial statements September 30,2022).Other amounts reported as deferred outflows and
inflows of resources related to OPEB will be recognized in OPER expense as follows:
Net Deferred Outflows(Inflows)
of Resources
Measurement Self-Funded
Year Ended Health
December 31, SDBF Insurance
2021 $ 110,688 $ 120,425
2022 110,688 120,425
2023 110,688 72,350
2024 94,857 61,181
2025 104,842 -
Thereafter 78,864 -
Total $ 610,627 $ 374,381
90
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2021
E. MUNICIPAL GOLF COURSE
Management Agreement
Management of the City's golf course has been performed by a private operator in accordance with the terms of a
Management Agreement since 1989.The current Management Agreement had an initial term of three years that shall
automatically renew for two additional 1-year terms.The agreement began on January 1,2017,with the second 1-year
renewal period beginning on January 1,2021.The contract will continue automatic 1-year renewal terms unless one of
the parties chooses to terminate.Under conditions set forth in the Management Agreement,the operator shall be paid
a monthly base management fee. Additionally, the operator may earn an annual incentive management fee based
upon gross receipts of the golf course.
F. SUBSEQUENT EVENTS
Crow Group Series,LLC
On July 26, 2018, the City entered into an Economic Development Program Agreement with Crow Group Series, LLC
(Crow) to promote economic development. Crow intended to construct, develop and operate three Class A office
buildings containing a total of approximately 125,000 square feet of office, parking,and related space(the"project").
Crow is required to invest approximately$24.0 million in improvements to the property and the City provided funding
through an economic development loan for$2.2 million to defray a portion of the Project's costs.The loan is secured
by a first lien on a portion of the land to be developed.The project consists of three phases.As of December 31,2020,
Crow is in default on the agreement as Phase 2 has not been completed by the date specified in the agreement.The
City and Crow Group are in negotiations to resolve the default.
91
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CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30,2021
(UNAUDITED)
Texas Municipal Retirement System(TMRS)Plan
Schedule of Chaii iges in the Net Pension Liability and Related Ratios
Measurement pc riod ending December 31, 2014 2015 2016
Total Pension Li bilit
Service cost $ 8,066,254 $ 8,990,916 $ 9,609,823
Interest(on the otal Pension Liability) 13,330,143 14,481,391 15,065,206
Difference between expected and actual experience (50,055) (662,530) 704,655
Change of assun iptions - (1,208,085) -
Benefit payments,including refunds of employee contributions (5,231,094) (5,493,451) (5,706,408)
Net Change in Total Pension Liability 16,115,248 16,108,241 19,673,276
Total Pension Liz bility-Beginning 189,013,034 205,128,282 221,236,523
Total Pension Liability-Ending(a) $ 205,128,282 $ 221,236,523 $ 240,909,799
Plan Ficluciary Net Position
Contributions- Employer $ 7,787,328 $ 8,195,714 $ 8,302,118
Contributions- Employee 3,423,287 3,644,800 3,779,341
Net investment i 1come 8,955,552 252,867 12,021,503
Benefit payments, including refunds of employee contributions (5,231,094) (5,493,451) (5,706,408)
Administrative a pense (93,479) (154,001) (135,695)
Other (7,685) (7,607) (7,311)
Net Change in Plan Fiduciary Net Position 14,833,909 6,438,322 18,253,548
Plan Fiduciary Net Position-Beginning 156,512,946 171,346,855 177,785,177
Plan Fiduciary Net Position-Ending (b) 171,346,855 177,785,177 196,038,725
Net Pension Liability- Ending(a)-(b) $ 33,781,427 $ 43,451,346 $ 44,871,074
Plan Fiduciary Net Position as a Percentage of Total Pension
Liability 83.53% 80.36% 81.37%
Covered Payroll $ 48,839,040 $ 51,731,390 $ 53,776,289
Net Pension Liability as a Percentage of Covered Payroll 69.17% 83.99% 83.44%
Notes to Schedule.
1)No significant f actors noted to disclose.
2)No significant methods and assumptions to disclose.
3)Schedule will be built out to 10 years.
See Independent uditors' Report
94
2017 2018 2019 2020
$ 10,430,650 $ 11,165,127 $ 12,125,301 $ 13,315,518
16,360,878 17,747,611 19,262,844 21,130,343
671,908 773,706 4,071,075 2,225,761
- - 608,160 -
(7,483,495) (7,089,473) (8,347,798) (9,643,873)
19,979,941 22,596,971 27,719,582 27,027,749
240,909,799 260,889,740 283,486,711 311,206,293
$ 260,889,740 $ 283,486,711 $ 311,206,293 $ 338,234,042
$ 9,138,705 $ 9,753,253 $ 10,471,204 $ 11,366,407
4,113,985 4,406,956 4,793,245 5,184,834
27,187,574 (6,861,490) 35,438,150 20,602,217
(7,483,495) (7,089,473) (8,347,798) (9,643,873)
(140,808) (132,486) (199,970) (133,140)
(7,136) (6,921) (6,007) (5,193)
32,808,825 69,839 42,148,824 27,371,252
196,038,725 228,847,550 228,917,389 271,066,213
228,847,550 228,917,389 271,066,213 298,437,465
$ 32,042,190 $ 54,569,322 $ 40,140,080 $ 39,796,577
87.72% 80.75% 87.10% 88.23%
$ 58,533,388 $ 62,831,331 $ 68,196,291 $ 74,016,219
54.74% 86.85% 58.86% 53.77%
95
CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30,2021
(UNAUDITED)
Texas Municipal Retirement System(TMRS)Plan
Schedule of Contributions
Fiscal year endin September 30, 2015 2016 2017
Actuarially Deter fined Contribution $ 8,077,742 $ 8,507,987 $ 8,897,294
Contributions in elation to the
actuarially determined contribution 8,193,478 8,739,633 9,059,953
Contribution def ciency(excess) $ (115,736) $ (231,646) $ (162,659)
Covered payroll $ 51,159,783 $ 54,924,766 $ 57,346,696
Contributions as percentage of
covered payro 1 16.02% 15.91% 15.80%
Notes to Schedu a of Contributions
Valuation Date
Actuarially deterrr ined contribution rates are calculated as of December 31 and become effective in January, 13 months
and a day later.
Methods and Assumptions Used to Determine Contribution Rates
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll,Closed
Remaining Amort zation Period 24 years
Asset Valuation Method 10-year smoothed market; 12%soft corridor
Inflation 2.5%
Salary Increases 3.5%to 11.5%including inflation
Investment Rate cf Return 6.75%
Retirement Age Experience-based table of rates that are specific to the City's
plan of benefits. Last updated for the 2019 valuation pursuant
to an experience study of the period 2014-2018.
Mortality Post-retirement:2019 Municipal Retirees of Texas Mortality Tables.The
rates are projected on a fully generational basis with scale UMP.
Pre-retirement:PUB(10)mortality tables,with the Public Safety table used
for males and the General Employee table used for females.The rates are
projected on a fully generational basis with scale UMP.
Other Information
There were no benefit changes during the year.Schedule will be built out to ten years.
See Independent A ditors'Report
96
2018 2019 2020 2021
$ 9,582,199 $ 1Q313,421 $ 10,806,103 $ 11,542,600
9,618,245 1 Q377,168 10,635,298 11,865,291
$ (36,046) $ (63,747) $ 170,805 $ (322,691)
$ 61,743,107 $ 67,091,746 $ 68,196,291 $ 74,016,219
15.S7% 15.46% 15.60% 16.03%
97
CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30,2021
(UNAUDITED)
Schedule of Chai iges in the Total OPEB Liability and Related Ratios
Supplemental Death Benefit Fund
Measurement pe iod ending December 31, 2017 2018 2019 2020
Service Cost $ 87,800 $ 106,813 $ 102,294 $ 148,032
Interest 63,146 66,031 72,369 69,727
Changes in assur iptions or other inputs 176,033 (160,017) 438,301 461,065
Differences between expected and actual
experience - (41,694) (36,755) (42,783)
Benefit payment (11,707) (12,566) (13,639) (14,803)
Net change in to al OPEB liability 315,272 (41,433) 562,570 621,238
Total OPEB liabili y-beginning 1,632,491 1,947,763 1,906,330 2,468,900
Total OPEB liabili y-ending $ 1,947,763 $ 1,906,330 $ 2,468,900 $ 3,090,138
Covered payroll $ 58,533,338 $ 62,831,331 $ 68,196,291 $ 74,016,219
Total OPEB liability as a percentage of covered
payroll 3.33% 3.03% 3.62% 4.17%
Self-Funded Hea th Insurance
Measurement pe iod ending December 31, 2017 2018 2019 2020
Service Cost $ 837,881 $ 886,296 $ 919,177 $ 1,405,816
Interest 477,714 498,983 532,239 472,780
Changes in assumptions or other inputs 798,106 (643,572) 882,735 -
Differences be en expected and actual
experience (114,595) - (196,828) -
Benefit payments (431,570) (465,610) (597,720) (711,164)
Net change in total OPEB liability 1,567,536 276,097 1,539,603 1,167,432
Total OPEB liabili -beginning 12,758,523 14,326,059 14,602,156 16,141,759
Total OPEB liabili y-ending $ 14,326,059 $ 14,602,156 $ 16,141,759 $ 17,309,191
Covered payroll $ 58,533,338 $ 62,831,331 $ 68,196,291 $ 74,016,219
Total OPER liabilily as a percentage of covered
payroll 24.5% 23.2% 23.7% 23.4%
Notes to Schedules:
1)No assets are a cumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.75 to pay related
benefits.
2)No significant methods and assumptions to disclose.
3)Schedule will b built out to 10 years.
See IndependentAuditors'Report
98
NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Governmental Funds account for specific resources,other than major capital projects,that are restricted to
expenditures for specified purposes.
Community Development Block Grant Fund—To account for grant monies received for programs benefiting persons
of low to moderate income.
Hotel - Motel Occupancy Tax Fund—To account for the levy and use of the 7% hotel — motel bed tax received.
Proceeds from this tax are to be used toward tourism, community events, cultural enhancements, ongoing repairs,
maintenance and capital improvements to the City-owned Dell Diamond, a minor league baseball stadium and
conference center,and for promotion of the City.
Hotel- Motel Occupancy Venue Tax Fund—To account for the levy and use of the 2%hotel—motel bed venue tax
received. Proceeds from this tax are to be used toward the construction and maintenance of the sports center that
prompts tourism and promotion of the City.
Innovation and Development Fund—To account for the activities of select economic development and Chapter 384
agreements.
Library and Recreational Fund — To account for amounts received through the City's landscape ordinance,
contributions and general government resources designated for library and recreational programs of the City.
Public Safety Fund—To account for amounts received through child safety fines,court security,court technology fees,
and drug enforcement actions,some of which promote traffic safety programs.
Public Education&Government Fund—To account for amounts received for programs to provide public education
in government.
Roadway Impact Fees Fund—To account for amounts received from developers to recover the incremental cost of
each new unit of development on the arterial and collector roadway infrastructure and identify them by designated
service area.
99
CITY OF ROUND ROCK,TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2021
Community Hotel-Motel
Development Hotel-Motel Occupancy Innovation and
Block Grant Occupancy Tax Venue Tax Development
ASSETS
Cash and cash $ - $ 613,690 $ 1,754,662 $ 73,235
equivalents Investm nts - 1,810,341 5,166,839 216,038
Receivables-
Accounts and other - 740,611 211,620 -
Accrued interest - 2,431 3,444 2,049
Grants 326,520 - - -
Restricted cash - 477,471 - 375,464
Restricted invest ents - 1,408,508 - 1,107,591
Restricted accrued interest - 224 - -
Total asses $ 326,520 $ 5,053,276 $ 7,136,565 $ 1,774,377
LIABILITIES
AND FUND BALANCES
Liabilities-
Accounts payable $ 326,520 $ 23,054 $ 31,127 $ 21
Accrued payroll - 14,634 24,105 -
Unearned revenue - - - -
Total liabilities 326,520 37,688 55,232 21
Fund balances-
Restricted-authc rized construction - 1,874,459 - -
Restricted- hotel motel tax - 3,141,129 7,081,333 -
Restricted-publi safety - - - -
Restricted-gene al government - - -
Committed-general government - - - -
Committed-capital projects funds - - - -
Committed-culture and recreation - - - 1,483,055
Assigned-cultur and recreation - - - 291,301
Total func balances - 5,015,588 7,081,333 1,774,356
Total liabi ities and
fund balances $ 326,520 $ 5,053,276 $ 7,136,565 $ 1,774,377
100
Public Total Nonmajor
Library and Education& Roadway Governmental
Recreational Public Safety Government Impact Fees Funds
$ 1,690,454 $ 186,211 $ 367,351 $ - $ 4,685,603
4,982,295 549,313 1,083,660 - 13,808,486
- - - - 952,231
3,460 376 749 - 12,509
- - - - 326,520
- - 612,655 1,465,590
- - 1,807,289 4,323,388
- - - 872 1,096
$ 6,676,209 $ 735,900 $ 1,451,760 $ 2,420,816 $ 25,575,423
$ 134,499 $ 4 $ 18,030 $ 9 $ 533,264
14,254 - - - 52,993
1,450,323 - - 2,414,890 3,865,213
1,599,076 4 18,030 2,414,899 4,451,470
- - - 5,917 1,880,376
- - - 10,222,462
735,896 - - 735,896
- - 1,433,730 - 1,433,730
881,812 - - - 881,812
1,989,706 - - - 1,989,706
- - - - 1,483,055
2,205,615 - - - 2,496,916
5,077,133 735,896 1,433,730 5,917 21,123,953
$ 6,676,209 $ 735,900 $ 1,451,760 $ 2,420,816 $ 25,575,423
101
CITY OF ROUND ROCK,TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2021
Community Hotel-Motel
Development Hotel-Motel Occupancy Innovation and
Block Grant Occupancy Tax Venue Tax Development
Revenues-
Taxes and franchise $ - $ - $ - $ -
Licenses,permits and fees - - - -
Charges for services - - 1,372,042 -
Fines and forfeitures - - - -
Intergovernmenta 1,114,064 15 589 5,607,306
Hotel occupancy t x - 4,286,888 2,445,138 4,271,101
Contributions - - - -
Investment and other - 28,901 59,645 15,469
Total revenues 1,114,064 4,315,804 3,877,414 9,893,876
Expenditures-
Current-
General govern ent 896,572 - - 5,525,670
Culture and rec eation - 1,251,398 1,654,812 -
Capital projects 217,492 134,414 - -
Total expe iditures 1,114,064 1,385,812 1,654,812 5,525,670
Excess(de iciency)of
revenues over expenditures - 2,929,992 2,222,602 4,368,206
Other financing sou rces(uses)-
Transfers in - - - 11,192
Transfers out - (1,578,000) (617,780) (2,605,042)
Total other financing
sources(uses) - (1,578,000) (617,780) (2,593,850)
Net chang in fund balances - 1,351,992 1,604,822 1,774,356
Fund balances,October 1,2020 - 3,663,596 5,476,511 -
Fund balances,Sepi ember 30,2021 $ - $ 5,015,588 $ 7,081,333 $ 1,774,356
102
Total
Public Nonmajor
Library and Education& Roadway Governmental
Recreational Public Safety Government Impact Fees Funds
$ - $ - $ 191,140 $ - $ 191,140
140,300 - - - 140,300
840,246 - - - 2,212,288
- 125,663 - - 125,663
604 - - - 6,722,578
- - - - 11,003,127
43,138 - - - 43,138
58,223 26,217 11,261 5,917 205,633
1,082,511 151,880 202,401 5,917 2Q643,867
132,943 52,109 170,602 - 6,777,896
1,163,442 - - - 4,069,652
1,307,265 - - - 1,659,171
2,603,650 52,109 170,602 - 12,506,719
(1,521,139) 99,771 31,799 5,917 8,137,148
675,000 - - - 686,192
- (121,159) - - (4,921,981)
675,000 (121,159) - - (4,235,789)
(846,139) (21,388) 31,799 5,917 3,901,359
5,923,272 757,284 1,401,931 - 17,222,594
$ 5,077,133 $ 735,896 $ 1,433,730 $ 5,917 $ 21,123,953
103
CO*9.009
top
104
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
GENERAL, DEBT SERVICE
AND NONMAJOR SPECIAL REVENUE FUNDS
105
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2021
ITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,2020
Variance-
Budgeted Amounts Positive 2020
Original Final Actual (Negative) Actual
Revenues-
Taxes and franchise-
Property tax $ 44,150,000 $ 44,150,000 $ 43,431,612 $ (718,388) $ 41,849,470
Penalty and interest 82,000 82,000 90,091 8,091 114,297
Sales tax 48,330,861 49,201,861 49,201,861 - 54,209,511
Franchise 6,622,749 6,622,749 6,617,294 (5,455) 6,848,882
Bingo tax 27,000 27,000 50,538 23,538 49,074
Mixed drink tax 421,308 421,308 817,088 395,780 571,922
Total taxes and franchise 99,633,918 100,504,918 100,208,484 (296,434) 103,643,156
Licenses,permits a id fees-
Building permits 657,766 657,766 1,014,677 356,911 651,520
Other permits 40,222 40,222 39,670 (552) 46,008
Fees 795,306 795,306 1,348,496 553,190 943,164
Total licenses,permits,and fees 1,493,294 1,493,294 2,402,843 909,549 1,640,692
Charges for services-
Trash collection fees 1,210,571 1,210,571 1,292,994 82,423 1,262,420
Swimming pool fes 1,013,809 1,013,809 1,366,839 353,030 768,091
Recreation prog rE m fees 1,597,269 1,597,269 2,142,331 545,062 1,451,340
Filing and reprod i iction fees 17,999 17,999 10,949 (7,050) 16,524
Other 51,663 51,663 67,184 15,521 24,743
Total charges for services 3,891,311 3,891,311 4,880,297 988,986 3,523,118
Fines and forfeitures 1,047,669 1,047,669 1,027,327 (20,342) 1,454,794
Grants 1,706,500 1,706,500 3,103,417 1,396,917 2,317,254
Investment and of er-
Investment inco a 990,000 990,000 625,132 (364,868) 1,220,377
Other 4,790,301 4,790,301 4,601,522 (188,779) 5,027,273
Total investme t and other 5,780,301 5,780,301 5,226,654 (553,647) 6,247,650
Total revenues 113,552,993 114,423,993 116,849,022 2,425,029 118,826,664
106
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES-BUDGET AND ACTUAL(CONTINUED)
YEAR ENDED SEPTEMBER 30,2021
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,2020
Variance-
Budgeted Amounts Positive 2020
Original Final Actual (Negative) Actual
Expenditures-
Current-
General government
Executive-
Personnel services $ 15,336,997 $ 14,179,741 $ 14,089,331 $ 90,410 $ 13,902,636
Operations 9,153,334 9,822,430 9,419,139 403,291 8,617,406
Capital outlay 75,000 35,479 3,759 31,720 75,000
Total executive 24,565,331 24,037,650 23,512,229 525,421 22,595,042
Judicial-
Personnel services 1,063,305 981,965 972,497 9,468 1,006,336
Operations 76,740 76,740 62,292 14,448 86,850
Total judicial 1,140,045 1,058,705 1,034,789 23,916 1,093,186
Total general government 25,705,376 25,096,355 24,547,018 549,337 23,688,228
Public safety
Police-
Personnel services 30,554,945 3Q034,204 30,021,401 12,803 29,336,746
Operations 3,655,988 3,817,988 3,542,335 275,653 3,501,495
Capital outlay 20,432 20,432 11,310 9,122 1,431
Total police 34,231,365 33,872,624 33,575,046 297,578 32,839,672
Fire-
Personnel services 22,457,048 23,926,508 23,923,015 3,493 21,640,594
Operations 2,046,768 1,947,768 1,947,397 371 1,837,956
Total fire 24,503,816 25,874,276 25,870,412 3,864 23,478,550
Total public safety 58,735,181 59,746,900 59,445,458 301,442 56,318,222
(CONTINUED)
107
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL(CONTINUED)
YEAR ENDED SEPTEMBER 30,2021
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,2020
Variance-
Budgeted Amounts Positive 2020
Original Final Actual (Negative) Actual
Expenditures-
Current-
Public works
Administration-
Personnel servi es $ 4,871,623 $ 5,007,805 $ 4,887,707 $ 120,098 $ 4,813,350
Operations 3,342,399 3,314,399 3,198,330 116,069 2,868,486
Capital outlay - - - - 28,152
Total administra ion 8,214,022 8,322,204 8,086,037 236,167 7,709,988
Streets-
Personnel servi es 2,909,479 2,720,459 2,628,372 92,087 2,602,792
Operations 6,084,984 3,544,984 2,904,679 640,305 2,760,359
Capital outlay 136,000 136,000 124,731 11,269 65,522
Total streets 9,130,463 6,401,443 5,657,782 743,661 5,428,673
Maintenance sh p-
Personnel servi es 1,431,075 1,466,073 1,466,071 2 1,473,580
Operations 235,773 229,758 200,021 29,737 199,124
Capital outlay 20,000 48,000 6,493 41,507 19,290
Total maintenan a shop 1,686,848 1,743,831 1,672,585 71,246 1,691,994
Total public works 19,031,333 16,467,478 15,416,404 1,051,074 14,830,655
108
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL(CONTINUED)
YEAR ENDED SEPTEMBER 30,2021
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30,2020
Variance-
Budgeted Amounts Positive 2020
Original Final Actual (Negative) Actual
Expenditures-
Current-
Culture and recreation
Library-
Personnel services $ 2,543,833 $ 2,642,547 $ 2,598,651 $ 43,896 $ 2,396,599
Operations 699,422 730,045 691,976 38,069 661,343
Total library 3,243,255 3,372,592 3,290,627 81,965 3,057,942
Parks and recreation-
Personnel services 9,227,524 8,961,344 8,830,738 130,606 8,892,957
Operations 3,620,327 3,790,327 3,682,420 107,907 2,965,021
Capital outlay 82,000 97,000 57,707 39,293 98,666
Total parks and recreation 12,929,851 12,848,671 12,570,865 277,806 11,956,644
Total culture and recreation 16,173,106 16,221,263 15,861,492 359,771 15,014,586
Total expenditures 119,644,996 117,531,996 115,270,372 2,261,624 109,851,691
Excess(deficiency)of
revenues over expenditures (6,092,003) (3,108,003) 1,578,650 4,686,653 8,974,973
Other financing sources(uses)-
Transfers in 6,107,000 6,107,000 6,257,264 150,264 5,061,250
Transfers out - (8,359,371) (8,359,371) - (3,947,201)
Total other financing sources(uses) 6,107,000 (2,252,371) (2,102,107) 150,264 1,114,049
Net change in fund balances $ 14,997 $ (5,360,374) (523,457) $ 4,836,917 10,089,022
Fund balance,October 1,2020 59,813,896 49,724,874
Fund balance,September 30,2021 $ 59,290,439 $ 59,813,896
109
CITY OF ROUND ROCK,TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Taxes and franchi e $ 24,364,717 $ 24,364,717 $ 24,647,695 $ 282,978
Investment and oi her 50,000 50,000 34,682 (15,318)
Total revenue 24,414,717 24,414,717 24,682,377 267,660
Expenditures-
Debt service-
Principal retireme t 19,360,169 21,708,671 20,148,502 1,560,169
Interest and fiscal charges 9,904,424 10,367,705 10,367,705 -
Issuance costs 350,000 350,000 174,445 175,555
Total expendilures, 29,614,593 32,426,376 30,690,652 1,735,724
Excess(deficiency)of revenues
over expendi ures (5,199,876) (8,011,659) (6,008,275) 2,003,384
Other financing sot irces(uses)-
Issuance of refunc ing bonds - - 5,560,000 5,560,000
Issuance of premi m - - 1,100,137 1,100,137
Payment to refunc led bond escrow agent - (6,482,675) (6,482,675) -
Transfers in 262,500 262,500 6,281,080 6,018,580
Transfers out - - (11,192) (11,192)
Total other fin 3ncing sources(uses) 262,500 (6,220,175) 6,447,350 12,667,525
Net change in fund balances $ (4,937,376) $ (14,231,834) 439,075 $ 14,670,909
Fund balance,Octo 6er 1,2020 5,080,091
Fund balance,September 30,2021 $ S,S19,166
110
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES-BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Intergovernmental $ 1,114,064 $ 1,114,064 $ 1,114,064 $ -
Total revenues 1,114,064 1,114,064 1,114,064 -
Expenditures-
Current-
General government-
Operations 896,572 896,572 896,572 -
Capital projects 217,492 217,492 217,492 -
Total expenditures 1,114,064 1,114,064 1,114,064 -
Net change in fund balances $ - $ - - $ -
Fund balance,October 1,2020 -
Fund balance,September 30,2021 $ -
111
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
HOTEL-MOTEL OCCUPANCY TAX FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Intergovernmental
evenues-
Intergovernment I $ - $ - $ 15 $ 15
Hotel occupancy I ax 3,395,231 3,395,231 4,286,888 891,657
Investment and other 112,373 112,373 28,901 (83,472)
Total revenues 3,507,604 3,507,604 4,315,804 808,200
Expenditures-
Current-
Culture and recreation-
Personnel se ices 510,957 511,882 482,614 29,268
Operations 1,336,695 1,435,770 768,784 666,986
Capital projects - 163,514 134,414 29,100
Total expenditur s 1,847,652 2,111,166 1,385,812 725,354
Excess(deficiency)of revenues over
expenditures 1,659,952 1,396,438 2,929,992 1,533,554
Other financing sources(uses)-
Transfers out - (1,578,000) (1,578,000) -
Total other financing sources(uses) - (1,578,000) (1,578,000) -
Net change in nd balances $ 1,659,952 $ (181,562) 1,351,992 $ 1,533,554
Fund balance,October 1,2020 3,663,596
Fund balance,Septamber 30,2021 $ 5,015,588
112
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
HOTEL-MOTEL OCCUPANCY VENUE TAX FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Chargesforservices $ 1,175,000 $ 1,175,000 $ 1,372,042 $ 197,042
Intergovernmental - - 589 589
Hotel occupancy tax 1,254,835 1,254,835 2,445,138 1,190,303
Investment and other 80,938 80,938 59,645 (21,293)
Total revenues 2,510,773 2,510,773 3,877,414 1,366,641
Expenditures-
Current-
Culture and recreation-
Personnel services 1,268,068 1,236,068 1,053,986 182,082
Operations 567,873 649,873 600,826 49,047
Total expenditures 1,835,941 1,88S,941 1,6S4,812 231,129
Excess(deficiency)of revenues over
expenditures 674,832 624,832 2,222,602 1,597,770
Other financing sources(uses)-
Transfers out (367,780) (617,780) (617,780) -
Total other financing sources(uses) (367,780) (617,780) (617,780) -
Net change in fund balances $ 307,052 $ 7,052 1,604,822 $ 1,597,770
Fund balance,October 1,2020 5,476,511
Fund balance,September 30,2021 $ 7,081,333
113
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
INNOVATION AND DEVELOPMENT FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Intergovernment I - 5,607,306 5,607,306 -
Hotel occupancy lax - 4,271,101 4,271,101 -
Investment and a her - 15,469 15,469 -
Total revenues - 9,893,876 9,893,876 -
Expenditures-
Current-
General Government-
Operations - 5,525,670 5,525,670 -
Total expenditur s - 5,525,670 5,525,670 -
Excess(deficiency)of revenues over
expenditures - 4,368,206 4,368,206 -
Other financing so irces(uses)-
Transfers in - 11,192 11,192 -
Transfers out - (2,605,042) (2,605,042) -
Total other financing sources(uses) - (2,593,850) (2,593,850) -
Net change in fund balances $ - $ 1,774,356 1,774,356 $ -
Fund balance,October 1,2020 -
Fund balance,Sept mber 30,2021 $ 1,774,356
114
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
LIBRARY AND RECREATIONAL FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Licenses,permits and fees $ 35,000 $ 35,000 $ 140,300 $ 105,300
Charges for services 547,112 547,112 840,246 293,134
Intergovernmental - - 604 604
Contributions 4,000 4,000 43,138 39,138
Investment and other 247,053 247,053 58,223 (188,830)
Total revenues 833,165 833,165 1,082,511 249,346
Expenditures-
Current-
General government-
Operations 776,738 612,093 132,943 479,150
Total general government 776,738 612,093 132,943 479,150
Culture and recreation-
Personnel services 582,157 582,157 530,068 52,089
Operations 659,666 749,566 633,374 116,192
Total culture and recreation 1,241,823 1,331,723 1,163,442 168,281
Capital Projects 1,607,311 2,897,078 1,307,265 1,589,813
Total expenditures 3,625,872 4,840,894 2,603,650 2,237,244
Excess(deficiency)of revenues over
expenditures (2,792,707) (4,007,729) (1,521,139) 2,486,590
Other financing sources(uses)-
Transfers in 675,000 675,000 675,000 -
Total other financing sources(uses) 675,000 675,000 675,000 -
Net change in fund balances $ (2,117,707) $ (3,332,729) (846,139) $ 2,486,590
Fund balance,October 1,2020 5,923,272
Fund balance,September 30,2021 $ 5,077,133
115
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES-BUDGET AND ACTUAL
PUBLIC SAFETY FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Fines and forfeitu es $ 107,000 $ 107,000 $ 125,663 $ 18,663
Investment and o her 3,600 3,600 26,217 22,617
Total revenues 110,600 110,600 151,880 41,280
Expenditures-
Current-
General govern ent-
Operations 698,974 698,974 52,109 646,865
Total expenditures 698,974 698,974 52,109 646,865
Excess(deficiency)of revenues over
expenditures (588,374) (588,374) 99,771 688,145
Other financing so rces(uses)-
Transfers out - (121,159) (121,159) -
Total other fina ing sources(uses) - (121,159) (121,159) --
Net change in fund balances $ (588,374) $ (709,533) (21,388) $ 688,145
Fund balance,October 1,2020 757,284
Fund balance,September 30,2021 $ 735,896
116
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
PUBLIC EDUCATION&GOVERNMENT FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Taxes and franchise $ 220,000 $ 220,000 $ 191,140 $ (28,860)
Investment and other 11,000 11,000 11,261 261
Total revenues 231,000 231,000 202,401 (28,599)
Expenditures-
Current-
General Government-
Operations 336,000 367,706 170,602 197,104
Total expenditures 336,000 367,706 170,602 197,104
Net change in fund balances $ (105,000) $ (136,706) 31,799 $ 168,505
Fund balance,October 1,2020 1,401,931
Fund balance,September 30,2021 $ 1,433,730
117
CITY OF ROUND ROCK,TEXAS
SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL
ROADWAY IMPACT FEES FUND
YEAR ENDED SEPTEMBER 30,2021
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Investment and other $ - $ - $ 5,917 $ 5,917
Total revenues - - 5,917 5,917
Net change in fund balances $ - $ - 5,917 $ 5,917
Fund balance,Octc ber 1,2020 -
Fund balance,September 30,2021 $ 5,917
118
CITY OF ROUND ROCK,TEXAS
STATISTICAL SECTION
(UNAUDITED)
This part of the City of Round Rock's annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements,note disclosures,and supplementary information says about
the City's overall financial health.This information has not been audited by the independent auditors.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the 120
City's financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's significant 130
local revenue sources,the property and sales tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the 140
City's currently outstanding debt and the City's ability to issue additional debt in the
future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader 149
understand the environment within which the City's financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand 151
how the information contained in the City's financial report relates to the services the
City provides and the activities it performs.
Sources: Unless otherwise noted,the information in these schedules is derived from the City's annual comprehensive
financial reports for the relevant year.
119
CITY OF ROUND ROCK,TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2012 2013 2014 2015
Governmental activities-
Net investmei it in capital assets $ 252,984,681 $ 295,777,997 $ 303,977,353 $ 299,730,557
Restricted 72,780,050 42,970,091 43,974,370 48,019,726
Unrestricted 76,87Q782 74,833,175 44,713,408 53,355,360
Total governme tal activities net position $ 402,635,513 $ 413,581,263 $ 392,665,131 $ 401,105,643
Business-type ac ivities-
Net investmei it in capital assets $ 212,883,311 $ 214,178,908 $ 221,062,599 $ 228,866,895
Restricted 13,994,028 6,868,062 7,764,750 19,215,972
Unrestricted 104,985,805 116,650,981 114,901,064 110,519,279
Total business-t pe activities net position $ 331,863,144 $ 337,697,951 $ 343,728,413 $ 358,602,146
Primary government-
Net investment in capital assets $ 465,867,992 $ 509,956,905 $ 525,039,952 $ 528,597,452
Restricted 86,774,078 49,838,153 51,739,120 67,235,698
Unrestricted 181,856,587 191,484,156 159,614,472 163,874,639
Total primary government net position $ 734,498,657 $ 751,279,214 $ 736,393,544 $ 759,707,789
Source: Annual Comprehensive Financial Reports
Notes: The City h riplemented GASB Statement No.68 in 2015.As a result,net position for 2014 was restated.The City
implemented GA B Statement No.75 in 2018.As a result,net position for 2017 was restated.
120
2016 2017 2018 2019 2020 2021
$ 310,185,706 $ 356,586,425 $ 373,007,353 $ 40Q490,136 $ 442,969,195 $ 432,348,991
51,813,118 48,954,352 48,357,161 44,334,128 23,471,549 92,772,878
52,451,939 29,054,168 28,585,838 28,918,565 33,581,912 13,728,700
$ 414,450,763 $ 434,594,945 $ 449,950,352 $ 473,742,829 $ 500,022,656 $ 538,850,569
$ 234,981,264 $ 245,005,044 $ 268,467,171 $ 283,846,141 $ 294,760,377 $ 310,014,313
15,275,659 19,800,722 22,628,600 24,343,881 16,315,836 11,750,401
126,490,054 126,634,362 138,980,320 146,681,470 168,868,607 179,998,306
$ 376,746,977 $ 391,440,128 $ 430,076,091 $ 454,871,492 $ 479,944,820 $ 501,763,020
$ 545,166,970 $ 601,591,469 $ 641,474,524 $ 684,336,277 $ 737,729,572 $ 742,363,304
67,088,777 68,755,074 70,985,761 68,678,009 39,787,385 104,523,279
178,941,993 155,688,530 167,566,158 175,600,035 202,450,519 193,727,006
$ 791,197,740 $ 826,035,073 $ 880,026,443 $ 928,614,321 $ 979,967,476 $ 1,04Q613,589
121
CITY OF ROUND ROCK,TEXAS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2012 2013 2014 2015
Expenses:
Governmental activities-
General government $ 30,406,768 $ 27,923,780 $ 28,050,936 S 28,860,077
Public safety 40,944,978 41,842,363 45,283,826 45,236,987
Public works 29,295,041 31,215,489 33,537,533 33,412,841
Culture and recreation 15,069,456 15,702,435 18,024,001 19,202,557
Interest on to g-term debt 7,144,755 6,915,772 8,478,700 8,118,490
Total governmer tal activities expenses 122,860,998 123,599,839 133,374,996 134,830,952
Business-type activities-
Water and se er utility 38,842,107 42,657,792 44,605,155 46,069,705
Golf course 157,135 141,153 71,090 144,993
Total business- pe activities expenses 38,999,242 42,798,945 44,676,245 46,214,698
Total primary go ernment expenses 161,860,240 166,398,784 178,051,241 181,045,650
Program revenues:
Governmental activities-
Charges forservices-
General gc ivernment 3,104,355 2,822,715 2,559,380 2,168,842
Public safety 4,215,243 3,248,867 2,652,480 2,461,782
Public works 2,760,386 2,942,382 726,785 749,524
Culture an I recreation 2,737,969 2,844,842 3,032,109 3,288,970
Operating gri nts and contributions 1,135,386 829,367 1,042,301 1,199,574
Capital grants and contributions 9,782,214 5,310,541 S,901,038 4,234,018
Total governmental activities program revenues 23,735,553 17,998,714 15,914,093 14,102,710
Business-type activities-
Charges forservices-
Water and sewer utility 43,327,656 43,094,185 43,705,878 45,898,090
Golf cours 480,116 522,169 382,081 320,846
Capital grant and contributions 7,533,264 6,514,369 10,226,302 17,742,568
Total business-t)pe activities program revenues 51,341,036 50,130,723 54,314,261 63,961,504
Total primary government program revenues 75,076,589 68,129,437 70,228,354 78,064,214
Net(expense)re enue-
Government activities (99,125,445) (105,601,125) (117,460,903) (120,728,242)
Business-typE activities 12,341,794 7,331,778 9,638,016 17,746,806
Total primary government net expense (86,783,651) (98,269,347) (107,822,887) (102,981,436)
122
2016 2017 2018 2019 2020 2021
$ 28,434,006 $ 24,864,772 $ 23,408,887 $ 27,861,595 $ 27,467,722 $ 35,906,343
49,439,902 52,243,460 57,987,997 64,196,001 64,151,715 64,975,588
33,448,357 34,359,785 47,120,999 36,261,500 38,606,348 43,588,532
20,885,009 24,130,067 25,218,145 27,821,410 26,355,801 26,874,261
8,294,279 8,075,351 8,415,687 8,525,551 9,382,120 10,264,036
140,501,553 143,673,435 162,151,715 164,666,057 165,963,706 181,608,760
47,947,818 49,400,833 51,749,727 54,388,260 53,999,588 58,063,832
133,270 1,857,334 1,642,036 2,399,582 2,818,489 3,699,848
48,081,088 51,258,167 53,391,763 56,787,842 56,818,077 61,763,680
188,582,641 194,931,602 215,543,478 221,453,899 222,781,783 243,372,440
2,258,333 19,778,439 2,273,091 3,189,150 4,529,682 2,824,567
1,669,550 1,478,161 1,762,172 2,298,635 1,684,921 1,396,999
742,437 607,398 693,223 1,347,815 700,442 970,763
3,919,254 5,133,816 5,489,515 5,649,283 4,082,796 5,807,940
946,604 1,202,810 2,574,008 2,987,128 3,742,160 4,261,827
8,013,039 5,958,205 18,206,390 9,914,802 9,464,089 10,054,791
17,549,217 34,158,829 30,998,399 25,386,813 24,204,090 25,316,887
48,653,788 51,980,615 55,139,117 56,951,931 60,811,441 60,618,367
36Q371 733,883 299,761 1,971,887 2,684,066 3,506,792
19,607,086 15,642,381 30,495,633 21,584,780 18,443,560 22,288,498
68,621,245 68,356,879 85,934,511 80,508,598 81,939,067 86,413,657
86,170,462 102,515,708 116,932,910 105,895,411 106,143,157 111,730,544
(122,952,336) (109,514,606) (131,153,316) (139,279,244) (141,759,616) (156,291,873)
20,540,157 17,098,712 32,542,748 23,720,756 25,120,990 24,649,977
(102,412,179) (92,415,894) (98,610,568) (115,558,488) (116,638,626) (131,641,896)
(CONTINUED)
123
CITY OF ROUND ROCK,TEKAS
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2012 2013 2014 2015
General revenues and other changes
in net position:
Governmental activities-
Taxes-
Property $ 34,379,529 $ 34,979,578 $ 36,502,409 $ 39,932,573
Franchise 6,326,735 5,952,712 6,460,448 7,255,212
Sales 63,305,917 66,216,447 68,462,292 67,620,848
Hotel OCCL pancy 3,252,542 4,140,920 4,646,208 5,083,556
Public seR ice 316,320 347,846 477,606 515,778
Investment earnings and other 1,635,630 2,026,554 1,882,139 5,020,786
Transfers 2,464,967 21882,818 1,800,895 3,740,000
Total governmental activities 111,681,640 116,546,875 120,231,997 129,168,753
Business-type activities-
Investment earnings and other 772,102 1,385,847 1,397,321 866,927
Transfers (2,464,967) (2,882,818) (1,800,895) (3,740,000)
Total business- pe activities (1,692,865) (1,496,971) (403,574) (2,873,073)
Total primary government 109,988,775 115,049,904 119,828,423 126,295,680
Change in netposition:
Governmental activities 12,556,195 10,945,750 2,771,094 8,440,511
Business-type activities 10,648,929 5,834,807 9,234,442 14,873,733
Total primary government $ 23,205,124 $ 16,780,557 $ 12,005,536 $ 23,314,244
124
2016 2017 2018 2019 2020 2021
$ 44,239,067 $ 49,107,424 S 54,082,288 $ 57,396,623 $ 64,744,623 $ 68,187,362
7,175,948 7,103,548 7,140,940 7,407,178 7,060,026 6,808,434
67,340,120 64,209,719 72,861,565 75,690,767 78,361,955 90,406,552
5,407,667 5,515,163 5,714,235 6,000,447 4,111,858 11,003,127
566,712 627,164 647,243 697,835 620,996 867,626
7,957,942 8,201,944 9,024,223 12,180,534 9,081,735 12,650,685
3,610,000 3,492,871 (2,961,771) 3,698,337 4,058,250 5,196,000
136,297,456 138,257,833 146,508,723 163,071,721 168,039,443 195,119,786
1,214,674 2,289,777 3,131,444 4,772,982 4,010,588 2,364,223
(3,610,000) (3,492,871) 2,961,771 (3,698,337) (4,058,250) (5,196,000)
(2,395,326) (1,203,094) 6,093,215 1,074,645 (47,662) (2,831,777)
133,902,130 137,054,739 152,601,938 164,146,366 167,991,781 192,288,009
13,345,120 28,743,227 15,355,407 23,792,477 26,279,827 38,827,913
18,144,831 15,895,618 38,635,963 24,795,401 25,073,328 21,818,200
$ 31,489,951 $ 44,638,845 $ 53,991,370 $ 48,587,878 $ 51,353,155 $ 60,646,113
125
CITY OF ROUND ROCK,TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2012 2013 2014 2015
Nonspendable-
Inventories,pre ids and other $ 321,044 $ 375,087 $ 397,271 $ 430,821
Restricted for-
Debt service 2,301,340 2,415,427 2,278,062 2,351,780
Authorized construction 81,424,206 43,630,036 106,539,802 117,515,606
Hotel-motel tax 8,927,441 9,549,082 11,173,765 10,934,476
Public safety 937,105 1,249,246 1,050,349 1,274,293
General government - - - -
Committed to-
General govern ent 911,674 865,493 684,199 856,977
Capital projects funds 35,645,374 31,856,334 26,570,024 24,696,122
Streets and drainage 1,179,777 1,570,994 - 1,145,826
Culture and recreation 6,625 10,530 12,438 322,576
Assigned to-
Culture and recr ation 248,771 283,518 264,662 272,666
Unassigned 36,912,381 38,604,781 38,726,365 50,277,389
Total governmental funds $ 168,815,738 $ 130,410,528 $ 187,696,937 $ 210,078,532
126
2016 2017 2018 2019 2020 2021
$ 372,288 $ 232,004 $ 253,592 $ 226,190 $ 1,094,653 $ 1,783,208
2,749,645 3,88Q982 4,853,517 5,019,375 5,080,091 7,901,595
77,545,478 81,086,426 62,649,029 72,690,649 58,069,777 124,312,278
12,653,710 6,526,672 7,863,705 6,807,382 7,44Q558 1Q222,462
676,724 585,878 75Q657 1,025,501 757,284 735,896
- 1,269,075 1,268,233 1,439,377 1,401,931 1,433,730
1,081,159 124,703 232,243 883,883 1,03Q812 881,812
24,865,777 28,397,665 21,934,876 28,971,259 23,259,722 41,256,494
1,152,195 - - - - -
293,694 - - - - 1,483,055
212,080 1,004,583 1,274,658 1,638,534 1,834,073 2,496,916
52,427,796 50,090,080 53,558,920 49,498,684 59,547,303 58,913,029
$ 174,030,546 $ 173,198,068 $ 154,639,430 $ 168,200,834 $ 159,516,204 $ 251,420,475
127
CITY OF ROUND ROCK,TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2012 2013 2014 2015
Revenues-
Taxes and frau hise $ 104,318,270 $ 107,417,612 $ 111,592,909 $ 115,508,506
Licenses,permits and fees 3,094,983 3,567,437 1,243,857 1,704,374
Charges for se ices 4,198,815 4,436,779 4,645,527 4,513,428
Fines and forfeitures 2,814,987 3,208,637 2,673,670 2,451,316
Intergovernm tal 2,158,621 1,225,195 3,044,095 1,679,993
Hotel occupan y tax 3,252,543 4,14Q920 4,646,208 5,083,556
Investment and other 5,858,346 2,567,327 3,152,100 600,919
Contributions 2,635,613 3,565,842 4,783,567 7,207,478
Total revenues 128,332,178 13Q129,749 135,781,933 138,749,570
Expenditures-
General gove ment 25,332,577 23,783,735 24,375,794 23,838,520
Public safety 37,646,821 39,475,791 42,306,841 43,067,272
Public works 9,791,618 11,852,443 11,291,499 12,328,284
Culture and recreation 11,958,179 12,440,948 13,775,702 14,766,040
Capital project 39,916,082 65,523,775 38,694,239 33,476,554
Debt service-
Principal reti ement 13,040,604 12,852,059 14,395,697 13,919,366
Interest and'Fiscal charges 6,825,065 6,797,281 7,372,652 8,597,372
Payment to refunding agent - - - -
Other charges 256,373 98,630 862,888 942,596
Total expenditures 144,767,319 172,824,662 153,075,312 150,936,004
Excess of revenues
over(under)expenditures (16,435,141) (42,694,913) (17,293,379) (12,186,434)
Other financing ources(uses)-
Issuance of lease 500,000 1,000,000 1,450,000 2,000,000
Issuance of de 3t 27,295,000 8,615,000 77,350,000 70,665,000
Premium on b nds issued 1,317,881 - 6,161,887 6,369,020
Payment to rel unded bond escrow agent (20,616,784) (8,509,756) (11,682,994) (48,205,991)
Transfers in 34,447,300 49,547,722 32,984,237 27,070,865
Transfers out (31,379,109) (46,363,263) (31,683,342) (23,330,865)
Total other financing sources(uses) 11,564,288 4,289,703 74,579,788 34,568,029
Net change in fund balances $ (4,87Q853) $ (38,405,210) $ 57,286,409 $ 22,381,595
Capital outlay including amounts reported
under departme ital current expenditures $ 41,282,292 $ 67,059,266 $ 38,644,877 $ 35,385,140
Debt service as a percentage of
noncapital exper ditures 19.2% 18.6% 19.0% 19.5%
128
2016 2017 2018 2019 2020 2021
$ 119,211,433 $ 121,142,245 $ 134,637,978 $ 141,150,180 $ 150,717,481 $ 166,252,010
1,843,633 1,646,077 2,037,211 2,703,240 1,834,311 2,543,143
5,172,465 6,307,377 6,563,868 6,916,463 5,274,975 7,092,585
1,573,476 1,440,795 1,616,922 2,153,309 1,623,976 1,152,990
990,683 2,950,833 9,511,022 3,822,463 5,540,163 11,400,907
5,407,667 5,515,163 5,714,235 6,000,447 4,111,858 11,003,127
368,748 931,601 2,335,783 4,670,671 9,165,467 7,261,313
7,963,854 8,253,614 9,260,526 12,728,177 3,336,036 2,338,936
142,531,959 148,187,705 171,677,545 180,144,950 181,604,267 209,045,011
24,394,392 21,05S,932 23,744,730 22,423,018 24,841,662 31,324,914
44,388,881 47,595,884 52,839,347 56,063,867 56,494,602 59,445,458
12,062,839 12,682,503 14,748,037 15,077,947 17,290,725 16,946,664
15,078,964 17,219,700 18,513,216 20,213,897 19,022,847 19,931,144
65,414,999 63,268,686 59,809,511 90,837,258 82,350,573 47,540,721
13,463,922 13,287,160 14,325,970 17,792,363 18,296,526 20,148,502
9,641,498 8,306,767 9,244,645 8,616,675 10,243,591 10,367,705
- 10,050,443 - 13,758,972 7,010,563 -
229,245 423,510 - 967,009 276,058 1,225,607
184,674,740 193,890,585 193,225,456 245,751,006 235,827,147 206,930,715
(42,142,781) (45,702,880) (21,547,911) (65,606,056) (54,222,880) 2,114,296
2,250000 - 5,981,044 2,900,000 - -
11,45Q000 38,725,000 - 67,685,000 41,480,000 84,040,000
1,094,690 2,652,531 - 4,884,123 - 7,036,650
(12,309,895) - - - - (6,482,675)
30,552,126 31,908,470 22,678,818 42,110,430 39,495,337 75,973,539
(26,942,126) (28,415,599) (25,64Q589) (38,412,093) (35,437,087) (70,777,539)
6,094,795 44,870,402 3,019,273 79,167,460 45,538,250 89,789,975
$ (36,047,986) $ (832,478) $ (18,528,638) $ 13,561,404 $ (8,684,630) $ 91,904,271
$ 65,116,395 $ 90,020,515 $ 46,896,22S $ 87,242,801 $ 80,820,91S $ 4Q87Q03S
19.3% 20.8% 16.1% 16.7% 18.4% 18.4%
129
CITY OF ROUND ROCK,TEXAS
ACTUAL AND TAXABLE ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
Actual Assessed Value Less: Total
Taxable Total
Fiscal Peal Personal Tax Exempt Assessed Direct
Year Property Property Total Property Valuation Tax Rate
2012 $ 7,65 ,036,144 $ 850,976,608 $ 8,505,012,752 $ 408,354,355 $ 8,096,658,397 $ 0.4232
2013 7,83 ,387,397 947,316,007 8,784,703,404 493,653,067 8,291,050,337 0.4203
2014 8,19 ,046,631 1,062,520,327 9,257,566,958 567,914,523 8,689,652,435 0.4195
2015 9,19:1,035,124 1,030,331,518 10,223,366,642 589,210,216 9,634,156,426 0.4146
2016 10,04 ,964,402 1,018,628,138 11,059,592,540 567,506,618 10,492,085,922 0.4147
2017 10,93 ,482,664 1,031,249,775 11,966,732,439 639,556,585 11,327,175,854 0.4250
2018 12,01:1,959,238 1,124,094,154 13,138,053,392 686,899,632 12,451,153,760 0.4300
2019 13,17 ,805,756 1,160,970,549 14,337,776,305 738,356,451 13,599,419,854 0.4200
2020 14,02 ,511,023 1,427,644,784 15,450,155,807 802,376,438 14,647,779,369 0.4390
2021 14,76 ,011,872 1,302,409,762 16,071,421,634 713,462,308 15,357,959,326 0.4390
Source: Williams n Central Appraisal District/Travis Central Appraisal District
Notes: Property in the City is assessed each year.Property is assessed at actual value,therefore,the assessed values are
equal to actual value.Tax rates are per$100 of assessed value.
130
CITY OF ROUND ROCK,TEXAS
PROPERTY TAX RATES- DIRECT AND OVERLAPPING GOVERNMENTS
PER$100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
City Direct Rates Overlapping Rates
Round Rock Total
Debt Independent Direct and
Fiscal Operating Service Total School Williamson Special Overlapping
Year Rate Rate Direct District County Districts Rates
2012 $ 0.2751 $ 0.1481 $ 0.4232 $ 1.3350 $ 0.4877 $ 0.1148 $ 2.3607
2013 0.2830 0.1373 0.4203 1.3800 0.4890 0.1151 2.4044
2014 0.2800 0.1395 0.4195 1.3674 0.4890 0.1149 2.3908
2015 0.2628 0.1518 0.4146 1.3375 0.4865 0.1142 2.3528
2016 0.2545 0.1602 0.4147 1.3325 0.4815 0.1205 2.3492
2017 0.2719 0.1531 0.4250 1.3325 0.4765 0.1220 2.3560
2018 0.2879 0.1421 0.4300 1.3048 0.4665 0.1208 2.3221
2019 0.2981 0.1219 0.4200 1.3048 0.4590 0.1248 2.3086
2020 0.3135 0.1255 0.4390 1.2348 0.4587 0.1249 2.2574
2021 0.2963 0.1427 0.4390 1.2212 0.4587 0.1258 2.2447
Source: Williamson County Tax Office
131
CITY OF ROUND ROCK,TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2021 2012
Net %of Total Net %of Total
Assessed Net Assessed Assessed Net Assessed
Name of Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Dell Computer Holdings, LP $ 401,534,906 1 2.615 % $ 155,280,931 1 1.918 %
Kalahari Resortand Conventions 201,530,519 2 1.312 - -
CPG Round Rock,LP/
Round Rock Prt mium Outlets 167,439,916 3 1.090 130,431,679 2 1.611
Dell Computer r
rp. 93,865,287 4 0.611 57,801,317 5 0.714
2811 LA Fronte a LP/
Griffis Apartmetits 87,955,490 5 0.573 - -
Baltgem Development Corp./
La Frontera Village 87,753,234 6 0.571 75,531,830 3 0.933
CMF 15 Portfoli , LLC/
Colonial Grand Npartments 87,550,060 7 0.570 43,928,400 6 0.543
Fisher-Rosemot nt Systems,Inc. 73,200,000 8 0.477 - -
Columbia/St. vid Healthcare 66,820,000 9 0.435 61,513,369 4 0.760
Baev-Lasalle Ro nd Rock/
University Commons 63,087,625 10 0.411 - -
Inland American University
Oaks,LP - - 39,479,777 7 0.488
Oncor Electric E elivery Co. - - 39,320,400 8 0.486
Round Rock Lu>ury Apts, LTD - - 32,000,000 9 0.395
FST La Frontera,LLC - - 29,914,916 10 0.369
$ 1,330,737,037 8.665 % $ 665,202,619 8.217 %
Source: Williamsc n Central Appraisal District
132
CITY OF ROUND ROCK,TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within the
Fiscal Year of the Levy Total Collections to Date
Taxes Levied Collections
Fiscal for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2012 $ 34,255,559 $ 34,161,567 99.73 % $ 1,129 $ 34,162,696 99.73 %
2013 34,865,783 34,717,536 99.57 1,139 34,718,675 99.58
2014 36,452,223 36,281,479 99.53 1,137 36,282,616 99.53
2015 39,792,302 39,697,745 99.76 1,237 39,698,982 99.77
2016 44,063,923 43,894,949 99.62 1,520 43,896,469 99.62
2017 49,113,540 48,988,540 99.75 3,103 48,991,643 99.75
2018 53,890,399 53,775,618 99.79 (5,516) 53,770,102 99.78
2019 57,296,592 57,106,114 99.67 (9,399) 57,096,715 99.65
2020 64,708,293 64,443,984 99.59 71,599 64,515,583 99.70
2021 68,133,164 67,922,644 99.69 - 67,922,644 99.69
133
CITY OF ROUND ROCK,TEXAS
SALES TAX AND AD VALOREM TAX
LAST TEN FISCAL YEARS
Total 1% %of Equivalent 1%
Fiscal Sales Tax Ad Valorem Ad Valorem of Ad Valorem Sales Tax
Year Collected Tax Levy Tax Levy Tax Rate Population Per Capita
2012 $ 31,652,958 $ 34,255,559 92.40 % $ 0.3909 101,702 $ 311
2013 33,108,223 34,865,783 94.96 0.3993 102,349 323
2014 34,231,146 36,452,223 93.91 0.3939 103,107 332
2015 33,810,424 39,792,302 84.97 0.3509 105,405 321
2016 33,670,060 44,063,923 76.41 0.3209 106,591 316
2017 34,970,879 49,113,540 71.20 0.3087 108,353 323
2018 40,929,405 53,890,399 75.95 0.3287 112,201 365
2019 41,348,047 57,296,592 72.16 0.3040 116,120 356
2020 42,562,498 64,708,293 65.78 0.2906 118,024 361
2021 50,217,518 68,133,164 73.70 0.3270 122,827 409
Notes: The City I as adopted the Municipal Sales and Use Tax Act,Texas Tax Code,Chapter 321,which grants the City the
power to impose nd levy a 1%Local Sales and Use Tax within the City;the proceeds are credited to the General Fund and
are not pledged I o the payment of the bonds.Collections and enforcements are effected through the office of the Texas
Comptroller of P blit Accounts who remits the proceeds of the tax, after deduction of a 2% service fee, to the City
monthly.
The calculations above are only based on the 1% sales and use tax, not the 0.5% sales and use tax collected for
reduction of ad v lorem taxes and the 0.5%sales and use tax collected for transportation improvements.
134
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135
CITY OF ROUND ROCK,TEXAS
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
Calendar Retail Wholesale
Year Trade Manufacturing Services Trade Utilities
2011 $ 1,107,689,836 $ 1,095,938,383 $ 346,422,899 $ 85,234,726 $ 22,224,004
2012 1,228,352,605 985,127,289 381,294,220 99,025,592 26,448,906
2013 1,399,874,606 1,103,790,424 402,483,896 131,162,463 29,351,784
2014 1,529,469,558 1,061,444,585 432,758,149 128,755,561 34,412,553
2015 1,556,013,209 951,496,554 476,798,645 123,940,513 41,822,044
2016 1,592,542,371 905,719,610 505,372,604 141,775,154 41,190,339
2017 1,582,407,350 925,729,209 521,326,342 132,124,078 38,444,682
2018 1,766,233,513 1,022,456,613 544,823,077 144,551,512 44,328,814
2019 1,806,032,459 953,019,073 570,848,600 197,736,186 42,248,207
2020 1,782,012,610 843,382,610 523,120,666 221,749,525 24,315,005
$ 15,350,628,117 $ 9,848,104,350 $ 4,705,249,098 $ 1,406,055,310 $ 344,786,338
Source: Texas Cc mptroller of Public Accounts
Notes: Sales information is not available on a fiscal year basis.Also,due to State of Texas confidentiality rules, names of
sales tax payers are not available.The categories presented provide alternative information indicative of sales tax revenue
sources.
136
city
Direct State
Finance, Sales Tax Sales Tax Over-
Construction Insurance Total Rate Rate lapping
$ 61,286,941 $ 3,006,901 $ 2,721,803,690 2.00 % 6.25 % 8.25 %
70,736,973 2,846,478 2,793,832,063 2.00 6.25 8.25
90,125,307 2,368,176 3,159,156,656 2.00 6.25 8.25
95,799,482 2,497,918 3,285,137,806 2.00 6.25 8.25
110,293,477 2,600,258 3,262,964,700 2.00 6.25 8.25
135,370,923 2,951,985 3,324,922,986 2.00 6.25 8.25
144,818,546 2,773,206 3,347,623,413 2.00 6.25 8.25
162,271,653 2,449,613 3,687,114,795 2.00 6.25 8.25
175,871,253 2,898,780 3,748,654,558 2.00 6.25 8.25
159,456,159 3,103,437 3,557,140,012 2.00 6.25 8.25
$ 1,206,030,714 $ 27,496,752 $ 32,888,350,679
137
CITY OF ROUND ROCK,TEXAS
HOTEL TAXPAYERS
YEAR ENDED SEPTEMBER 30,2021
Total
Hotel Motel Hotel Motel Collections Number %of
Occupancy Occupancy Year Ended of Total
Taxpayer Tax Venue Tax Sept.30,2021 Rooms Collections
Kalahari Resorts&Conventions $ 4,561,699 $ 1,303,342 $ 5,865,041 975 53.30 %
Austin Marnoti North 296,379 84,679 381,058 295 3.46
Hyatt Place 229,317 65,519 294,836 138 2.68
Hilton Garden Inn 208,341 59,526 267,867 122 2.44
Holiday Inn Express N 176,059 50,303 226,362 109 2.06
Homewood Suites 173,109 49,460 222,569 115 2.02
Tru by Hilton 158,561 45,303 203,864 98 1.85
Springhill Suits 153,421 43,835 197,256 104 1.79
Element 145,570 41,591 187,161 123 1.70
Aloft 136,405 38,973 175,378 120 1.59
Holiday Inn 135,453 38,687 174,140 116 1.58
Home2 Suites 128,339 36,658 164,997 91 1.50
Courtyard Mar iott 123,855 35,387 159,243 113 1.45
Towneplace SL ites 122,760 35,074 157,834 102 1.44
Residence Inn 117,124 33,464 150,588 96 1.37
Red Roof Inn 113,554 32,444 145,998 107 1.33
La Quinta S 111,531 31,866 143,397 86 1.30
Staybridge Sui es 109,557 31,302 140,859 81 1.28
Microtel 109,490 31,283 140,773 82 1.28
Wingate Inn 102,622 29,321 131,943 100 1.20
La Quinta N 94,490 26,997 121,487 116 1.10
Holiday Inn Ex ress S 92,883 26,538 119,421 91 1.09
Hampton Inn 92,660 26,474 119,134 93 1.08
Ruby Hotel 92,418 26,405 118,823 39 1.08
Best Western 81,146 23,184 104,330 68 0.95
Comfort Suites 79,121 22,625 101,746 63 0.92
Sleep Inn 79,034 22,605 101,639 74 0.92
Extended Stay America#6030 74,171 21,192 95,363 138 0.87
Motel 74,028 21,151 95,179 60 0.87
Quality Inn 64,658 18,474 83,131 49 0.76
Country Inn 61,464 17,561 79,025 61 0.72
Woodspring Suites 59,322 16,949 76,271 121 0.69
Candlewood Suites 53,101 15,149 68,250 98 0.62
La Quinta E 44,009 12,574 56,583 99 0.51
Extended Stay America#6197 35,899 10,257 46,156 104 0.42
AVID 33,753 9,642 43,395 89 0.39
Short Term Re tals 32,613 9,323 41,936 4 0.38
Provident Crossings Retirement 73 21 94 2 0.01
$ 8,557,989 $ 2,445,138 $ 11,003,127 4,542 100.0 %
138
CITY OF ROUND ROCK,TEXAS
HOTEL OCCUPANCY TAX COLLECTION HISTORY BY QUARTER
LAST TEN FISCAL YEARS
Fiscal 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year Oct.—Dec. Jan.—Mar. Apr.—lune July—Sep. Total
2012 $ 610,280 $ 835,331 $ 1,004,705 $ 802,227 $ 3,252,543
2013 964,181 1,091,350 1,152,982 932,407 4,140,920
2014 1,071,926 1,217,483 1,271,649 1,085,150 4,646,208
2015 1,114,213 1,274,209 1,437,121 1,258,012 5,083,555
2016 1,214,093 1,354,383 1,570,064 1,269,127 5,407,667
2017 1,249,406 1,411,265 1,509,276 1,345,218 5,515,165
2018 1,365,737 1,429,006 1,637,645 1,281,847 5,714,235
2019 1,365,684 1,546,937 1,661,651 1,426,175 6,000,447
2020 1,574,968 1,289,910 483,480 763,500 4,111,858
2021 1,145,806 2,201,407 3,689,498 3,966,416 11,003,127
139
CITY OF ROUND ROCK,TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business-Type
Governmental Activities Activities
GE neral Total Percentage
Fiscal Obl gation Certificates of Other Debt Revenue Primary of Personal Per
Year Bonds Obligation Obligations Bonds Government Income Capita
2012 $ 10 ,185,000 $ 12,380,000 $62,571,173 $ 87,765,660 $ 263,901,833 8.27 % $ 2,595
2013 96,340,000 11,770,000 56,131,110 85,392,673 249,633,783 7.56 2,439
2014 15!,780,000 11,135,000 55,963,734 90,799,894 313,678,628 9.12 3,042
2015 15 ,925,000 29,675,000 56,701,818 87,827,948 329,129,766 10.00 3,123
2016 14 ,540,000 27,095,000 52,746,502 89,364,624 318,746,126 6.43 2,990
2017 17 ,615,000 26,315,000 49,477,613 86,027,443 332,435,056 6.87 3,068
2018 16 ,820,000 25,520,000 48,520,464 82,997,070 319,857,534 5.93 2,851
2019 15 ,405,000 58,870,000 68,930,433 79,510,797 358,716,230 6.08 3,089
2020 14 ,220,000 88,025,000 64,350,491 75,999,389 369,594,880 5.89 3,132
2021 13',555,000 140,250,000 84,871,892 72,342,981 429,019,873 6.16 3,493
Notes: Details rei larding the City's outstanding debt can be found in the notes to the financial statements.
See the Schedule of Demographic and Economic Statistics for personal income and population data.
140
CITY OF ROUND ROCK,TEXAS
RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Amount Ratio
Available of Net
Net in Bonded Net
Assessed Gross Debt Net Debt to Bonded
Fiscal Value(in Bonded Service Bonded Assessed Debt Per
Year Population* thousands) Debt Fund Debt Value Capita
2012 101,702 $ 8,096,658 $ 114,268,570 $ 2,301,340 $ 111,967,230 1.38 % $ 1,101
2013 102,349 8,291,050 108,241,436 2,415,427 105,826,009 1.28 1,034
2014 103,107 8,689,652 172,890,871 2,278,062 170,612,809 1.96 1,655
2015 105,405 9,634,156 203,112,523 2,351,780 200,760,743 2.08 1,905
2016 106,591 1Q492,086 195,911,354 2,749,645 193,161,709 1.84 1,812
2017 108,353 11,327,176 216,797,444 3,880,982 212,916,462 1.88 1,965
2018 112,201 12,451,154 211,532,890 4,853,517 206,679,373 1.66 1,842
2019 116,120 13,599,420 236,945,452 5,019,375 231,926,077 1.71 1,997
2020 118,024 14,647,779 255,778,105 5,080,091 250,698,014 1.71 2,124
2021 122,827 15,357,959 298,467,896 5,519,166 292,948,730 1.91 2,385
*Source: Planning Department,City of Round Rock
Note: Includes Certificates of Obligation,General Obligation Bonds, Limited Tax Notes,and Capital Leases,net of related
premiums and discounts.
141
CITY OF ROUND ROCK,TEXAS
COMF UTATION OF DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED SEPTEMBER 30,2021
Total Estimated
General Estimated Share of
Debt Percentage Overlapping
Name of Goverrinit ntal Unit Outstanding* Applicable** Debt
Debt repaid with pioperty taxes-
Williamson County $ 1,116,790,000 19.80 % $ 221,124,420
Round Rock Independent
School District 865,785,000 37.19 321,985,442
Travis County 1,054,720,000 0.24 2,531,328
Austin Communi y College 436,260,000 5.86 25,564,836
Georgetown ISD 400,265,000 0.46 1,841,219
Travis County Healthcare District 82,490,000 0.24 197,976
Subtotal,overlappi g debt 573,245,221
City direct debt 356,676,892
Total direct and overlapping debt $ 929,922,113
*Gross Debt as of September 30,2021
**The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Source: City of Rout d Rock Finance Department and Municipal Advisory of Texas(Texas MAC)
Note: Overlapping overnments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates tie portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the Cil y of Round Rock,Texas.This process recognizes that,when considering the government's ability to issue
and repay long-terrr debt,the entire debt borne by the residents and businesses should be taken into account.However,this
does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping
government.
142
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143
CITY OF ROUND ROCK,TEXAS
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2012 2013 2014 2015
Debt limit $ 1,451,372,470 $ 1,486,218,341 $ 1,557,670,054 $ 1,640,628,922
Total net debt ap licable to limit 107,568,660 101,824,573 161,006,938 178,893,220
Legal debt margi $ 1,343,803,810 $ 1,384,393,768 $ 1,396,663,116 $ 1,461,735,702
Total net debt applicable to the limit
as a percentage of debt limit 7.41% 6.85% 10.34% 10.90%
Legal Debt Mar in Calculation for Fiscal Year 2021
Total assessed value $ 15,357,959,326
Debt limit- Maximum serviceable at permitted allocation
of$1.50 per$100 of assessed value $ 2,615,352,206
Amount of debt applicable to debt limit:
Total General Dbligation Debt $ 271,805,000
Less:
Amount available in Debt Service Fund (5,519,166)
Total net debt applicable to debt limit 266,285,834
Legal debt margiii $ 2,349,066,372
There is no direct debt limitation in the City Charter or under state law.The City operates under a Home Rule Charter(Article
XI,Section 5,Texas Constitution),approved by voters in August 1977,that limits the maximum tax rate,for all City purposes,
to$2.50 per$10C assessed valuation.Administratively,the Attorney General of the State of Texas will permit allocation of
$1.50 of the$2.50 maximum tax rate for general obligation debt service.
Assuming the maximum tax rate for debt service of$1.50 on January 1, 2020, assessed valuation of $15,357,959,326 at
100%collection,I ax revenue of$230,369,390 would be produced.This revenue could service the debt on $2,615,352,206
issued as 20-year serial bonds at 5.50%(with level debt service payment).
Interest and Sinking Fund Budget Projection
General Obligation Debt Service Requirements,Fiscal Year 2022 $ 23,510,086
Tax Year 2021 Interest and Sinking Fund Tax Levy @ 99%Collection $ 24,925,540
Interest and Sinki ig Fund Balance as of September 30,2021 5,519,166
30,444,706
Estimated Balance,September 30,2022 $ 6,934,620
144
2016 2017 2018 2019 2020 2021
$ 1,786,728,268 $ 1,928,938,196 $ 2,12Q343,710 $ 2,315,885,331 $ 2,494,413,566 $ 2,615,352,206
170,530,355 193,049,018 183,486,483 205,255,625 224,164,909 266,285,834
$ 1,616,197,913 $ 1,735,889,178 $ 1,936,857,227 $ 2,11029,706 $ 2,270,248,657 $ 2,349,066,372
9.54% 10.01% 8.65% 8.86% 8.99% 10.18%
145
CITY OF ROUND ROCK,TEXAS
CONDENSED UTILITY STATEMENT OF OPERATIONS
LAST TEN FISCAL YEARS
2012 2013 2014 2015
Gross Revenue(1)
Charges for se ices $ 43,327,656 $ 43,094,185 $ 40,762,523 $ 41,880,906
Licenses,permits and fees 1,921,789 1,941,121 2,943,355 4,017,184
Interest income and other 770,977 1,385,965 1,397,259 863,900
Total 46,020,422 46,421,271 45,103,137 46,761,990
Direct Operat ng Expense(2)
Personnel services 8,599,771 8,634,094 8,939,263 9,228,272
Contracted se ices 9,913,713 14,335,824 14,200,624 14,500,269
Materials and 5 upplies 2,106,220 1,890,480 2,163,731 1,837,026
Heat,light and power 1,966,864 1,951,428 1,829,036 1,783,408
Total 22,586,568 26,811,826 27,132,654 27,348,975
Net available or Debt Service $ 23,433,854 $ 19,609,445 $ 17,970,483 $ 19,413,015
Debt Service equirements(P&I) $ 5,893,953 $ 6,101,113 $ 6,347,632 $ 6,894,788
Revenue Bon Coverage 3.98 3.21 2.83 2.82
Metered Water Customers 30,989 31,431 32,012 32,447
Metered Sewer Customers 30,3S9 30,766 31,133 31,531
Average Annual Principal and Interest Requirements,FY 2022-2040 $ 5,093,072
Coverage of Average Requirements by FY 2021 Net Revenue 5.52 times
Estimated Maximum Principal and Interest Requirements,FY 2022 $ 6,062,631
Estimated Coverage of Maximum Requirements by FY 2021 Net Revenue 4.64 times
Parity Debt Outstanding at FY 2021 $ 66,865,000
(1) Water and ewer Fund operating and non-operating revenues
(2) Water and ewer Fund operating expenses,excluding depreciation
146
2016 2017 2018 2019 2020 2021
$ 44,406,721 $ 47,769,478 $ 50,715,034 $ 51,973,150 $ 55,695,939 $ 55,106,110
4,247,067 4,211,137 4,226,721 4,828,792 4,693,720 5,472,368
1,211,532 2,284,171 3,122,041 4,772,982 4,010,185 2,363,247
49,865,320 54,264,786 58,063,796 61,574,924 64,399,844 62,941,725
9,742,128 11,871,681 10,940,702 12,809,236 12,751,829 12,896,946
15,222,355 14,854,212 16,695,290 14,844,774 13,759,401 16,476,180
2,091,331 2,504,640 2,392,415 3,385,739 2,747,862 3,051,250
1,662,779 1,618,297 1,578,540 2,188,155 2,452,847 2,404,405
28,718,593 30,848,830 31,606,947 33,227,904 31,711,939 34,828,781
$ 21,146,727 $ 23,415,956 $ 26,456,849 $ 28,347,020 $ 32,687,905 S 28,112,944
$ 5,994,842 $ 6,352,459 $ 5,444,927 $ 6,102,631 $ 6,082,481 $ 6,073,581
3.53 3.67 4.86 4.65 5.37 4.63
32,930 33,602 34,581 35,397 35,998 36,593
31,984 32,614 33,277 34,085 35,299 35,879
147
6060
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148
CITY OF ROUND ROCK,TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(2)
Per (3) (4) (3)
Fiscal (1) Personal Capita Median School Unemployment
Year Population Income Income Age Enrollment Rate
2012 101,702 $ 3,164,864,538 $ 31,119 32.0 45,000 5.9 %
2013 102,349 3,221,434,775 31,475 32.0 45,361 5.0
2014 103,107 3,282,514,452 31,836 31.7 45,924 4.2
2015 105,405 4,104,259,890 38,938 33.5 47,093 3.2
2016 106,591 4,636,495,318 43,498 33.9 47,580 3.3
2017 108,353 4,841,103,687 44,679 34.4 4B,121 3.0
2018 112,201 5,395,858,291 48,091 34.2 48,888 2.9
2019 116,120 5,896,109,120 50,776 33.7 50,345 2.6
2020 118,024 6,272,385,480 53,145 33.7 50,966 5.4
2021 122,827 6,963,431,111 56,693 33.7 48,366 3.3
Sources: (1) Planning Department,City of Round Rock
(2)U.S.Dept.of Commerce/Bureau of Economic Development,data is for Williamson County,which is
representative of the City,data for City not available.
(3)Round Rock Chamber of Commerce
(4) Round Rock Independent School District
149
CITY OF ROUND ROCK,TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2021 2012
%of Total %of Total
City City
Name of E nployer Employees Rank Employment Employees Rank Employment
Dell Technologies 13,000 1 17.58 % 10,000 1 19.47 %
Round Rock Independe t School District 6,750 2 9.13 5,750 2 11.20
City of Round Rock,Tex s 1,021 3 1.38 824 4 1.60
Kalahari Resorts&Conventions 1,000 4 1.38
Round Rock Premium Outlets 800 5 1.08
Ascension Seton Medici I Center Williamson 750 6 1.01 450 10 0.88
Baylor Scott&White Healthcare 750 6 1.01 750 5 1.46
St.David's Round Rock Medical Center 689 7 0.93 689 7 1.34
Emerson Automation S lutions 682 8 0.92 750 5 1.46
Amazon 600 9 0.81
United Parcel Services 563 10 0.76
Sears TeleServe 1,500 3 2.92
Dresser Wayne,Inc. 633 8 1.23
Texas Guaranteed Student Loan 625 9 1.22
26,605 35.99 % 21,971 42.78 %
Source: City of Round Rc ck Finance Department/Round Rock Chamber of Commerce
150
CITY OF ROUND ROCK,TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function:
General government 147 149 157 159 163 179 194 202 205 206
Public safety-
Police-
Officers 152 153 159 167 168 174 176 176 180 180
Civilians 67 68 64 67 72 74 75 78 78 78
Fire-
Firefighters&officers 124 124 129 129 132 134 149 152 153 155
Civilians 5 6 8 8 8 8 9 10 10 8
Public works-
Street&Stormwater 64 70 70 69 76 73 77 81 82 82
Shop 15 15 16 18 19 18 18 19 19 19
Culture&Recreation-
Library 29 30 31 31 31 31 31 32 33 34
Parks&Recreation 94 91 91 91 106 102 105 107 108 108
Water&Sewer Utility 127 126 128 129 128 128 131 151 151 151
Total 824 832 853 868 903 921 965 1,008 1,019 1,021
Source: City of Round Rock Finance Department
151
2015CITY OF ROUND ROCK TEXAS
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014
Police-
Arrests 6,715 6,182 5,773 4,600
Accident 4,405 4,845 6,333 2,249
indexh 2,777 2.632 2,338 2,329
thousandCrimes per 27.10 25.10 21.70 22.00
Officers 1.49 1.46 1A2 1.53
Fire-
Incident | 8,350 8,749 9,027 9.928
Priority caU 3,475 3'728 3,713 2.780
N 4,875 6.021 5.314 7,148
Priority cU 60% 60Y6 6396 56%
Public Works-
Street-
60 80 80 40
Potholes repaired annually 4,000 4,000 4,000 1.500
Signals maintained 76 79 88 84
Shop-
5.336 4,447 4,178 4,399
Number of departments served 12 12 12 12
*on-
Library-
Number of it 983'219 940135 975.291 972,094
Number f card holders 55'336 81'620 74,192 99,822
Number of library 294,768 323'384 309,167 388,625
|park acies maintained 2.035 2,036 3'045 2'045
Number f at iletic fields maintained 49 49 49 49
Number f trees planted 558 163 165 110
Number of 420,000 487,455 490,704 '
Number of - ' - 832,104
connectionWater-
313 443 360 402
Line maintenance3'279 5,600 6,734 3'317
monthlyAverage 560,281.041 549,164,150 491.936,108 505,251.158
monthlySewer-
457,967'400 409,000,000 394,000,000 385,611'068
Line feat review d for infiltration&inflow 361.784 377,783 459'128 187,464
Source: City of Rourd Rock Finance Department
*The Police Department marted using the N|8R5System inR/2U2Owmreport»othe State
"Parks and Recreation startedecomdingaUpartidpan|sina||pmgromuinRuca|Year201S
2016 2017 2018 2019 2020 2021
4,476 4,600 4,152 4,272 3,592 3,049
2,370 2,370 2,762 2,698 2,636 2,236
2,383 2,383 2,870 2,648 2,400 6,960
22.50 22.50 26.50 23.40 21.00 56.10
1.43 1.48 1.56 1.53 1.53 1.49
9,346 10,777 11,328 11,813 12,189 13,193
3,735 2,548 5,083 4,078 3,248 2,590
5,611 8,229 6,245 7,735 6,905 4,770
61% 58% 53% 79% 73% 72%
60 60 60 121 183 190
400 300 300 280 250 220
83 89 90 93 100 100
4,761 4,620 4,733 4,936 4,980 2,972
12 12 12 12 12 12
1,080,312 1,188,757 1,229,141 1,315,186 986,686 1,105,973
77,818 79,415 81,181 83,507 80,656 65,159
391,256 389,930 388,732 416,391 219,736 156,742
2,045 2,270 2,270 2,285 2,285 2,295
49 49 49 49 51 51
195 408 43 74 98 73
988,337 1,080,853 1,140,094 892,870 332,895 S13,322
480 665 911 789 534 486
3,512 3,346 3,013 1,778 2,366 2,383
536,082,308 571,062,558 612,026,451 S43,547,232 62Q080,709 622,781,309
416,357,161 425,631,471 426,330,521 410,300,487 440,156,307 498,103,453
189,418 206,675 169,579 133,098 109,080 102,296
153
CITY OF ROUND ROCK,TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2012 2013 2014 2015
Function:
Police-
Number of stations 1 1 1 1
Number of units 199 201 229 240
Fire-
Number of stations 7 7 7 7
Number of fire truck 16 16 14 16
Public Works-
Street-
Lane miles 1,200 1,250 1,250 1,250
Drainage miles 100 150 150 150
Number of street ights 5,312 6,000 6,800 5,400
Number of traffic ignals 76 79 83 84
Shop-
Repair facilities 1 1 1 1
Number of bays 19 19 19 19
Culture and Recreation-
Library-
Number of library books 195,000 150,211 154,278 156,277
Number of library facilities 1 1 1 1
Parks&Recreation-
Total park acres 2,035 2,035 2,035 2,035
Number of athleti fields 49 49 49 49
Number of parks 62 62 62 62
Number of tennis courts 23 23 25 25
Number of pools 4 4 4 4
Water-
Number of miles of water lines 585 587 601 608
Pumping stations 10 10 10 10
Tanks 20 20 19 19
Treatment capacity(millions of gallons/day) 52 52 52 52
Sewer-
Number of miles of s wer mains 422 424 432 424
Wastewater lift statioi is 12 12 12 12
Source: City of Round R ck Finance Department
154
2016 2017 2018 2019 2020 2021
1 1 1 1 1 1
259 256 261 241 252 258
7 9 9 9 9 9
15 16 16 17 17 17
1,200 1,200 1,300 1,350 1,450 1,500
150 151 200 200 333 352
5,433 5,604 5,674 5,733 5,771 5,749
83 89 90 93 100 100
1 1 1 1 2 2
13 18 18 18 21 21
257,667 213,381 225,903 230,094 227,880 228,866
1 1 1 1 1 1
2,035 2,270 2,270 2,285 2,285 2,295
49 59 59 61 61 61
62 61 61 61 61 61
25 22 21 21 21 21
4 4 4 4 4 4
615 614 651 636 667 698
10 10 10 11 11 11
19 19 19 19 19 20
52 52 52 52 61 61
427 428 461 445 467 477
12 12 12 11 11 11
155
CITY OF ROUND ROCK,TEXAS
TOP TEN WATER CUSTOMERS
YEAR ENDED SEPTEMBER 30,2021
%of Total
Water Water
Consumption Consumption
N 3me of Customer Type of Business in Gallons in Gallons
City of Georgetow ,Texas Municipality 434,634,900 5.816 %
Fern Bluff Municipal Utility District Municipal Utility District 281,819,000 3.771
Paloma Lake Municipal Utility District#1  Municipal Utility District 232,568,100 3.112
Williamson County Municipal Utility District#11 Municipal Utility District 200,765,700 2.686
Williamson County Municipal Utility District#10 Municipal Utility District 180,838,300 2.420
Chandler Creek Municipal Utility District Municipal Utility District 147,078,500 1.968
Vista Oaks Municip I Utility District Municipal Utility District 115,265,900 1.542
Kalahari Resorts& onventions Hotel 93,178,500 1.247
Round Rock Independent School District Public Schools 78,228,300 1.047
Mid America Aparti nents, LP Property Management 76,784,500 1.027
1,841,161,700 24.636 %
Source: City of Rou id Rock Finance Department
156
CITY OF ROUND ROCK,TEXAS
WATER AND SEWER RETAIL RATES
SEPTEMBER 30,2021
Water rates for retail customers inside the city limits are as follows:
Volume Rate Monthly Service Charge
Billing periods for residential: Meter Size Base Monthly Water
Four block structure for use in excess of predetermined amounts set by meter size- Serving Customer Service Charge
Block 1:$2.56 5/8 inch $ 16.52
Block 2:$3.20 3/4 inch 23.00
Block 3:$3.85 1 inch 36.32
Block 4:$5.77 1 1/2 inch 69.59
2 inch 109.51
Billing periods for commercial: 3 inch 202.68
$2.80 per 1,000 gallons of water used by all customers 4 inch 335.79
6 inch 1,046.86
Billing periods for irrigation: 8 inch 1,829.77
Four block structure for use in excess of predetermined amounts set by meter size- 10 inch 2,873.67
Block 1:$3.20 12 inch 3,526.11
Block 2:$3.85
Block 3:$5.77
Sewer rates for retail customers inside the city limits are as follows:
Volume Rate Monthly Service Charge
$3.39 per 1,000 gallons of water used by all customers* Meter Size Base Monthly Sewer
Serving Customer Service Charge
5/8 inch $ 13.27
3/4 inch 17.31
1 inch 24.82
1 1/2 inch 45.26
2 inch 69.79
3 inch 127.01
4 inch 208.75
6 inch 615.27
8 inch 1,073.67
10 inch 1,684.85
12 inch 2,066.84
*Sewer customers'volume is measured as the rate per 1,000 gallons of the lesser of a three-month winter average or actual
water use.
Source: City of Round Rock Chapter 44,Section 44-32,Code of Ordinances(2018 Edition).Amended with ordinance No.
0-2019-0379.
157
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168
CITY OF ROUND ROCK,TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30,2021
Pass-Through
Federal Grantor/Pass-Through Grantor Grant or to Non-State Direct Total
Program Title ALN* Identifying Number Entities Expenditures Expenditures
Institute of Museum and Library Services
Pass-Through from Texas State Library and Archives Commission
Grants to States 45.310 LS-246193-OLS-20 $ $ 8,962 S 8,962
Grants to States(Covid-19) 45.310 LS-246561-OLS-20 24,762 24,762
Total Institute of Museum and LIbrary Services 33,724 33,724
U.S.Department of Homeland Security
Pass-Through from Texas A&M Engineering Extension Service
National Urban Search&Rescue Response System
Tropical Cyclone Sally 97.025 20-09001 13,486 13,486
Total National Urban Search&Rescue Response System 13,486 13,486
Pass-Through from Texas A&M Engineering Extension Service
Disaster Grants-Public Assistance(Presidentially Declared Disasters)
July Tropical Weather 97.036 20-0012 14,112 14,112
August Tropical Weather 97.036 20-0013 16,697 16,697
Total Disaster Grants-Public Assistance(Presidentially Declared Disasters) 30,809 30,809
Total U.S Department of Homeland Security - 44,295 44,295
U.S.Department of Housing&Urban Development
Community Development Block Grants/Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218 B14MC480514 21,145 - 21,145
Community Development Block Grants/Entitlement Grants 14.218 B17MC480514 - 17,366 17,366
Community Development Block Grants/Entitlement Grants 14.218 B18MC480514 52,303 30,459 82,762
Community Development Block Grants/Entitlement Grants 14.218 819MC480514 59,808 169,668 229,476
Community Development Block Grants/Entitlement Grants 14.218 B20MC480514 91,359 231,071 322,430
Community Development Block Grants/Entitlement Grants(Covid-19) 14.218 82OMW480514 440,885 - 440,885
Total Community Development Block Grants/Entitlement Grants Cluster 665,500 448,564 1,114,064
Total U.S.Department of Housing&Urban Development 665,500 448,564 1,114,064
U.S.Department of Justice
Bulletproof Vest Partnership Program 16.607 FY2020 BVP Program 4,648 4,648
Pass-Through from Texas Office of the Governor,Criminal Justice Division
2019-V-2-GX-0011
Crime Victim Assistance 16.575 3756802 87,982 87,982
Total U.S.Department of Justice 92,630 92,630
U.S.Department of the Treasury
Equitable Sharing Program 21.016 TX2460500 7,073 7,073
Pass-Through from Williamson County,Texas
Wilco Forward
CARES Act Coronavirus Relief Fund(Covid-19) 21.019 Phase 11 Covid-19 384,400 384,400
Total U.S.Department of the Treasury 391,473 391,473
U.S.Department of Transportation
Federal Transit Cluster
Federal Transit Formula Grants 20.507 TX-2019-053-00 64,849 64,849
Federal Transit Formula Grants(Covid-19) 20.507 TX-2020-164-00 1,065,459 1,065,459
Federal Transit Formula Grants(Covid-19) 20.507 TX-2021-031-00 990,747 990,747
Federal Transit Formula Grants(Covid-19) 20.507 TX-2021-082-00 62,293 62,293
Total Federal Transit Cluster 2,183,348 2,183,348
Highway Planning and Construction Cluster
Pass-Through from Texas Department of Transportation
University Boulevard East(AW Grimes to SH130) 20.205 0914-05-193 1,574,912 1,574,912
Total Highway Planning and Construction Cluster 1,574,912 1,574,912
Total U.S.Department of Transportation 3,758,260 3,758,260
Total Expenditures of Federal Awards $ 665,800 S 4,768,946 S 5,434,446
*Assistance Listing Number(ALN)formerly known as Catalog of Federal Domestic Assistance(CFDA).
159
CITY OF ROUND ROCK,TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30,2021
1. BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards(SEFA)presents the activity of all applicable federal awards of the City
of Round Rock Texas. The City's reporting entity is defined in the notes of the basic financial statements. Federal
financial assi tance received directly from federal agencies as well as federal financial assistance passed through other
governmental agencies is included on the Schedule of Expenditures of Federal Awards. The information on this
schedule is presented in accordance with the requirements of Uniform Guidance,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.
2. BASIS OF AC COUNTING
The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting.Expenditures
are recognized when the related fund liability is incurred.Federal grants are considered to be earned to the extent of
expenditures made under the provision of the grant and are received on a reimbursement basis.
3. INDIRECT CC ST RATE
The City of Round Rock has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance.
4. EXPENDITURES INCURRED IN A PRIOR YEAR
Expenditures recorded in the SEFA associated with Tropical Cyclone Sally,July Tropical Weather,and August Tropical
Weather thal were passed through the Texas A&M Engineering Extension Service to the City of Round Rock from the
US.Department of Homeland Security were incurred in a prior year.
Even though the expenditures were incurred in a prior year, the final invoices were not approved for payment until
FY2021.Accc rdingly,these expenditures are being reported on the City of Round Rock's SEFA in the year they were
approved for payment,in compliance with the OMB Compliance Supplement.
160
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INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON ANAUDIT OFFINANCIAL STATEMENTS
PERFORMED |NACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Tothe Honorable Mayor and
Members ufCity Council
City ofRound Rock,Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in, Government oud/UhA Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of City of Round Rock' Texas (the
"City"'), as of and for the year ended September 30, 2021, and the related notes to the financial statements,which
collectively comprise the City's basic financial statements, and have issued our report thereon dated February 7,
2022.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (internal cuntruU) as a, basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our np|ninmo on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City's internaI4 control, Accordingly,we do not express an opinion
nnthe effectiveness ofthe City's internal control.
A deficiency in internal control exists when the design or operation of control does not a||ovv management or
enopioyeos^ in, the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. Amorerio/weakness is a deficiency, or combination of deficiencies, in internal
control,such that there is a reasonable possibility that a material misstatement of the entity's financial statements
vvd| not be prevented' or detected and corrected on a timely bas[s. As/gnifioont deficiency is a deficiency, ora
combination of deficiencies, in imtemail control that is less severe than w material weakness,yet important enough
to merit attention bythose charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
siQmificantdeficiencies. Given these limitations, during our audit vvedid not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
OHL B '"^~"~~~=^"D"°OR f°"~"" 161
To the Honorat ile Mayor and
Members of City Council
City of Round Pock,Texas
Compliance an Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, pro iding an opinion on compliance with those provisions was not an objective of our audit, and
accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other mattes that are required to be reported under Government Auditing Standards.
Purpose of thi Report
The purpose ol this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. Ibis report is an integral part of an audit performed in accordance with Government Auditing
Standards in c nsidering the entity's internal control and compliance. Accordingly, this communication is not
suitable for an other purpose.
(. k4l Pa-w LLQ=
Austin,Texas
February 7,20,12
162
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INDEPENDENT AUDITORS'REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND ONINTERNAL CONTROL OVER COMPLIANCE
REQUIRED BYTHE UNIFORM GUIDANCE
Tothe Honorable Mayor and
Members ofCity Council
City ofRound Rock,Texas
Report on Compliance for Each Major Federal Program
We have audited City ofRound Rock, Texas' (the "City") comphance with the types of re4m[rememtsdescribed in
the 011413 Compliance Supplement that could have a direct and material effect on each of the City's major federal
programs for the year ended September 30, 2021. The City's major federal programs are identified in the
summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management iuresponsible for compliance with federal statues, regulations, and the terms and conditions of its
federal awards applicable toits federal programs.
Auditor's Responsibility
Our responsibility is to express an opWon on compliance for each of the City's major federal programs based on
our audit of the types of compliance requirements referred to above, We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Tft|e 2 U.S. Code of Federal Regukzt/*ns Part 200,, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards
and the Uniform Guidance require that vva plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect un » major federal program occurred. Anaudit includes examining, onatest basis, evidence about
the City's compliance with those requirements and performing such other procedures as we considered necessary
imthe circumstances,
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However,our audit does not provide a legal determination of the City's compkance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with, the types ofcompliance requirements referred to
above that could have a direct and material effect no each of its major federal programs for the year ended
September 30, ZO21.
To the Honora le Mayor and
Members of City Council
City of Round Rock,Texas
Report on Inte nal Control Over Compliance
Management c f the City is responsible for establishing and maintaining effective internal control over compliance
with the types of compliance requirements referred to above. In planning and performing our audit of
compliance,wi, considered the City's internal control over compliance with the types of requirements that could
have a direct and material effect on each major federal program to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the Uniform Guidance,but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented,or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination oF deficiencies, in internal control over compliance with a type of compliance requirement of a
federal prograin that is less severe than a material weakness in internal control over compliance, yet important
enough to mer t attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weak esses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
The purpose o this report on internal control over compliance is solely to describe the scope of our testing of
internal cont" I over compliance and the results of that testing based on the requirements of the Uniform
Guidance.Accc rdingly,this report is not suitable for any other purpose.
Austin,Texas
February 7,2022
164
CITY OF ROUND ROCK,TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30,2021
I. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weakness(es)identified? No
Significant deficiency(ies)identified that are not considered to be
material weaknesses? None reported
Noncompliance material to the financial statements noted? No
Federal Awards
Internal controls over major programs:
Material weakness(es)identified? No
Significant deficiency(ies)identified that are not considered to be
material weaknesses? None reported
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 2 CFR 200.516(a)? None
Identification of Major Programs:
Name of Federal Program or Cluster Assistance Listing Number
Community Development Block Grants/Entitlement Grants Cluster 14.218
Federal Transit Cluster 20.507
Dollar threshold used to distinguish Between Type A
and Type B federal programs: $750,000
Auditee qualified as low-risk auditee? No
11. Financial Statement Findings
None noted
III. Federal Award Findings and Questioned Costs
None noted
165
CITY OF ROL ND ROCK,TEXAS
SUMMARYsa EDULE OF PRIOR AUDIT FINDINGS
For the Year Er ded September 30,2021
Federal regula ions, Title 2 U.S. Code of Federal Regulations §200.511 states, "The auditee is responsible for
follow-up and orrective action on all audit findings. As part of this responsibility, the auditee must prepare a
summary sche ule of prior audit findings."The summary schedule of prior audit findings must report the status of
the following:
• All audit findings included in the prior audit's schedule of findings and questioned costs and
• All audit findings reported in the prior audit's summary schedule of prior audit findings except audit findings
listedas corrected.
I.Prior Audit Findings
None noted
166
CITY OF ROUND ROCK,TEXAS
CORRECTIVE AC71ON PLAN
For the Year Ended September 30,2021
Federal regulations,Title 2 U.S. Code of Federal Regulations§200.511 states, "At the completion of the audit,the
auditee must prepare, in a document separate from the auditor's findings described in §200.516 Audit findings, a
corrective action plan to address each audit finding included in the current year auditor's reports."
The Corrective Action Plan for the year ended September 30, 2021 has been prepared to address these
requirements.
I.Corrective Action Plan
Not applicable
167
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