R-2023-056 - 2/23/2023 RESOLUTION NO. R-2023-056
WHEREAS,the City of Round Rock's Annual Comprehensive Financial Report("Report")for the
fiscal year ended September 30, 2022 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 OF THE CITY OF ROUND ROCK,TEXAS,
That the City of Round Rock's Annual Comprehensive Financial Report for the fiscal year ended
September 30, 2022, attached hereto as Exhibit "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 meeting was open to the
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 23rd day of February, 2023.
X A /
CRAIG RG ayor
City o ound?/1
Texas
ATTEST:AdA iA R , �
MEAGAN S NKS, City Clerk
0112.20232;48824307-6688
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EXHIBIT
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ROUND ROCK TEXAS
City of Round Rock, Texas
Annual Comprehensive Financial Report
Fiscal Year Ended September 30, 2022
ELECTED OFFICIALS
Craig Morgan, Mayor
Rene Flores, Mayor Pro-Tem
Michelle Ly, Council Member
Matthew Baker, Council Member
Frank Ortega, Council Member
Kristin Stevens, Council Member
Hilda Montgomery, Council Member
MANAGEMENT STAFF
Laurie Hadley
City Manager
Brooks Bennett
Assistant City Manager
Bryan Williams
Assistant City Manager
OFFICIAL ISSUING REPORT
Susan L. Morgan, CPA
Chief Financial Officer
.............
4��61
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal 1
City Organizational Chart 10
Certificate of Achievement for Excellence in Financial Reporting 11
FINANCIAL SECTION:
Independent Auditors' Report 13
Management's Discussion and Analysis 17
Basic Financial Statements
Government Wide Financial Statements:
Statement of Net Position 32
Statement of Activities 34
Fund Financial Statements:
Governmental Funds:
Balance Sheet 36
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 38
Statement of Revenues, Expenditures and Changes in
Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities 42
Statement of Revenues, Expenditures and Changes in Fund Balance—
Budget and Actual—General Fund 43
Statement of Revenues, Expenditures and Changes in Fund Balance—
Budget and Actual—Round Rock Transportation and Economic
Development Corporation Fund 44
Proprietary Funds:
Statement of Net Position 46
Statement of Revenues, Expenses and Changes in Net Position 48
Statement of Cash Flows 49
Notes to the Financial Statements 51
Required Supplementary Information
Texas Municipal Retirement System (TMRS) Plan—Schedule of Changes in the Net
Pension Liability and Related Ratios 100
Texas Municipal Retirement System(TMRS) Plan—Schedule of Contributions 102
Schedule of Changes in the Total OPEB Liability and Related Ratios 104
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds:
Combining Balance Sheet—Nonmajor Governmental Funds 106
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—Nonmajor Governmental Funds 108
TABLE OF CONTENTS
Schedules of Revenues, Expenditures and Changes in Fund Balances—
Budget and Actual:
General Fund 112
Debt Service Fund 116
Nonmajor Special Revenue Funds:
Community Development Block Grant 117
Hotel-Motel Occupancy Tax 118
Hotel-Motel Occupancy Venue Tax 119
Innovation and Development 120
Library and Recreational 121
Public Safety 122
Public Education&Government 123
Roadway Impact Fees 124
STATISTICAL SECTION (UNAUDITED):
Financial Trends:
Net Position by Component—Last Ten Fiscal Years 126
Changes in Net Position—Last Ten Fiscal Years 128
Fund Balances of Governmental Funds—Last Ten Fiscal Years 132
Changes in Fund Balances of Governmental Funds—Last Ten Fiscal Years 134
Revenue Capacity:
Actual and Taxable Assessed Value of Property—Last Ten Fiscal Years 136
Property Tax Rates—Direct and Overlapping Governments
Per$100 of Assessed Value—Last Ten Fiscal Years 137
Principal Property Taxpayers—Current Year and Nine Years Ago 138
Property Tax Levies and Collections—Last Ten Fiscal Years 139
Sales Tax and Ad Valorem Tax—Last Ten Fiscal Years 140
Taxable Sales by Category—Last Ten Calendar Years 142
Hotel Taxpayers 144
Hotel Occupancy Tax Collection History by Quarter—Last Ten Fiscal Years 145
Debt Capacity:
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years 146
Ratios of Net General Bonded Debt Outstanding to Assessed Value and Net
Bonded Debt Per Capita—Last Ten Fiscal Years 147
Computation of Direct and Overlapping Governmental Activities Debt 148
Legal Debt Margin Information—Last Ten Fiscal Years 150
Condensed Utility Statement of Operations—Last Ten Fiscal Years 152
Demographic and Economic Information:
Demographic and Economic Statistics—Last Ten Fiscal Years 155
Principal Employers—Current Year and Nine Years Ago 156
Operating Information:
Full-Time Equivalent City Government Employees by Function—Last
Ten Fiscal Years 157
Operating Indicators by Function—Last Ten Fiscal Years 158
Capital Asset Statistics by Function—Last Ten Fiscal Years 160
Top Ten Water Customers 162
Water and Wastewater Retail Rates 163
TABLE OF CONTENTS
SINGLE AUDIT SECTION:
Schedule of Expenditures of Federal Awards 165
Notes to Schedule of Expenditures of Federal Awards 166
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 167
Independent Auditors' Report on Compliance for Each Major Federal Program
and on Internal Control Over Compliance Required by the Uniform Guidance 169
Schedule of Findings and Questioned Costs 172
Summary Schedule of Prior Audit Findings 173
Corrective Action Plan 174
"mob
Mayor Councilmembers City Manager
Craig Morgan Michelle Ly Laurie Hadley
Matthew Baker
Frank Ortega
ROUND ROCK TEXAS Mayor Pro-Tern Kristin Stevens City Attorney
ADMINISTRATION Rene Flores Hilda Montgomery Stephanie L. Sandre
February 6, 2023
To the Honorable Mayor, Members of City Council,and Citizens
City of Round Rock,Texas
The Annual Comprehensive Financial Report of the City of Round Rock, Texas for the fiscal year ended September 30,
2022, is submitted herein.This report has been prepared by the City's Finance Department and responsibility for both
the accuracy of the presented data and the completeness and fairness of the presentation, including all 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 disclosures have been included to enable the reader to gain the maximum understanding of the
City's financial affairs.
The City Charter requires an annual audit of the books 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 ("clean") opinion on the City of Round
Rock's financial statements for the year ended September 30, 2022.The independent auditors' report is located at the
front of the financial section of this report.
Management's discussion and analysis (MD&A) can be found immediately following the report of the independent
auditors. The MD&A is a narrative introduction, overview, and analysis to accompany the basic financial statements.
This letter of transmittal is designed to complement the MDBtA and should be read in conjunction with it.
City of Round Rock Profile
The City of Round Rock, established in 1851, is a municipal corporation incorporated under Article Xl, Section 5 of the
Constitution of the State of Texas (Home Rule Amendment). 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 legally defined) as well as its component units. Component units are legally separate entities for which the
primary government is financially accountable. The City provides a full range of services which include police and fire
protection, parks 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 stormwater utility system and a golf course. These activities are included in the accompanying
financial statements. 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 221 East Main Street,Round Rock,Texas 78664
[P]512.218.5401 .[F] 512.218.7097.roundrocktexas.gov
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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 monitored at the department level by the encumbrance of estimated purchase amounts prior to the
release of purchase orders to vendors;however,the level of control at which expenditures may not exceed the budget is
at the fund level. Purchase orders which result in an overrun of balances are not released until additional
appropriations are made available.
Significant Local Economic Events
Strategic Goals
Along with the entire Central Texas region, the City has experienced tremendous population growth over the 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 goes into planning and funding infrastructure and service programs. Each January, Council reviews the
City's successes and challenges and refines both the short-term and long-term 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
year's budget.
The goals and objectives identified by Council most recently are:
Financially Sound City Providing High Value Services
• Diversify City revenues to support defined City services and service levels
• Expand the City tax base through economic expansion and diversity
• Maintain responsible financial reserves consistent with City financial policies and national
standards
• Maintain City facilities,equipment,and apparatus
oil • 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 used by City customers,City facilities and parks
• Invest in City infrastructure to support future community growth and economic
development
• Expand water reuse system throughout the City where feasible
• Improve mobility throughout the City and the region
• Upgrade and expand roads
Upgrade and expand drainage and stormwater system
"The Sports Capital of Texas"for Tourism and Residents
• 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 City sports facilities
• Increase 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
• • Build a community where people prefer to live
• Diversify housing opportunities
• Expand education campuses and programs
• Expand medical/healthcare businesses
Authentic Downtown- Exciting Community Destination
• Increase public and commercial use of Brushy Creek
• Expand housing opportunities: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
• Increase effectiveness of homeowner associations/neighborhood associations
A • Repair and upgrade neighborhood infrastructure: streets, sidewalks, utilities, fences,
streetscapes
• Upgrade neighborhood parks and open spaces
The budget adopted for fiscal year 2023 reflects a fiscally responsible approach to improving the City's infrastructure and
meets current demands while maintaining the City's strong financial position.
Economv
Round Rock has experienced robust economic growth in recent years.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. From 2013 to the projected population for 2023, the City of Round Rock will have experienced 10-year
population growth of 25%. Our long-range population estimates predict this increase continuing at a growth rate of
around 2.5% 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 161,000 within the City limits and over 229,000 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
neighborhoods, population density will likely increase across the City as residential development continues for single
family townhomes, 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 are
a few of our most recent accolades:
• Ranked number 2 by Milkeninstitute.org as one of the"Best Performing Cities"
• Ranked number 14 by SmartAsset.com as one of the"Safest Cities in America"
• Ranked number 18 by Niche.com as one of the"Best Cities to Buy a House in America"
• Ranked number 19 by Niche.com as one of the"Best Cities to Raise a Family in America"
• Ranked number 25 by Money.com as one of the"Best Places to Live"
• Awarded the "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 Development
The City understands that diversification of Round Rock's economy is a key to financial stability. The long-standing
partnership between the City and the Round Rock Chamber of Commerce 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.
Strong Local Base
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, a global engineering, technology, and
software company, opened its $70 million, 282,000 square-foot international headquarters in January 2014. In February
2022, the City approved an economic development agreement for Emerson's $9 million expansion plan which is to
include 50 to 60 additional employees by the end of the agreement.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-timejobs.
Round Rock is home to Dell's global headquarters with an estimated 12,000 employees in 2022. Since Dell relocated its
global headquarters to Round 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 2023. Because
of the company's commitment to Round Rock, the employment opportunities they offer, and the property tax and sales
tax revenues they generate, Dell remains a major driver to the City's economy.
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 fifty acres of land near SH 45 and A.W.Grimes Boulevard.The new center
employs more than 500 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, with an estimated 700
employees in 2022. 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 resort has presented new opportunities for Round
Rock and has provided substantial sales and hotel occupancy tax revenues, as well as diversify the local economy and
available employment opportunities.
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Amazon opened a new delivery station in Round Rock in 2021 and has an estimated 650 employees.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 larger building is 180,SS0 square-feet and is used as the campus distribution center. The smaller two buildings total
260,970 square-feet and are used as parking for employees and delivery vehicles. The delivery station has created
hundreds of local jobs.
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 opened May 3, 2022, on nearly 6 acres of land near Bass Pro
Shops and the Round Rock Premium Outlets. The hotel features 180 rooms with over 17,000 square-feet of beautiful
event space with a grand ballroom for up to 600 guests. Embassy Suites Hotel and Conference Center has generated 77
jobs as of June 2022.
Round Rock is 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 40,000 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.
Triple Temp Cold Storage LLC will be operating a new cold storage and manufacturing facility in southwest Round Rock
which started construction July 2021. The facility will be 125,000 square-feet on a 10-acre site near Bratton Lane and
expected to generate 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 Austin-Round Rock area, strategically located in central Texas along the 1-35 corridor.Triple Temp Cold
Storage LLC is set to be completed late in fiscal year 2023.
On the Horizon
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.
Over the next five years, new economic development projects will reshape Round Rock's economy by diversifying the
economy and bringing in new residents and visitors. The City entered into an agreement with Mark IV Capital for The
District on February 14, 2019, and proposed changes to development will be located near the intersection of 1-35 and
SH45. Revised plans for the development show the District is comprised of two to three million square-feet of office
space, 1,600 luxury multifamily residential units, 230,000 square-feet of lifestyle retail and hospitality space, walkable
amenities, and open green space. This mixed-use development will be a great opportunity for continued growth and
diversification of the City's economy.
Sabey Data Centers (SDC), a premier colocation data center provider, broke ground on July 20, 2022, on a new, 40-acre
data center campus in Round Rock; it's the company's first location in Texas. The new campus will provide up to
72-megawatt power capacity, supported by Sabey's industry-leading commitments to reliability, security, connectivity,
and sustainability. In addition, Sabey's new campus will feature its latest innovations that maximize available data center
space while shrinking its construction footprint. SDC will construct its data center on property formerly occupied by a
Sears call center.The facility will consist of two buildings housing a data storage. Once completed, the facility's operation
will bring 20 primary jobs to the area. The company will invest an estimated $185 million in real property improvements
and $5 million in business personal property.
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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 primaryjobs.
Valex Corporation, a leading manufacturer of ultra-high purity process components used in the semiconductor,TFT/LCD
and solar industries, will open its first Texas facility in Round Rock. The company currently operates three manufacturing
locations in California, Korea, and China. The manufacturing company will invest a minimum of $5 million in property
improvements and $7 million in new equipment to an existing 60,000 square-foot facility in the Crystal Park business
development.
Higher Education and Healthcare
Round Rock also has several higher education facilities, many of which focus on healthcare disciplines.These institutions
of higher learning include the Texas State University, Austin Community College, and Texas A&M Health Science
Center. Texas State University opened its newest building, Willow Hall, in May 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.The hall will be 81,651 square-feet
with an estimated total project cost of$52.4 million and will include classrooms, labs, and offices to support the College
of Health Professions.
Austin Community College (ACC) celebrated the opening of a $33 million, 45,000 square-foot expansion of its Round
Rock campus in September 2018, featuring the college's third state-of-the-art ACCelerators, advanced science labs,
classrooms, and made room for the enrollment of an additional 1,000 students. In November 2022, a bond proposition
was passed that includes the next expansion of the campus for skilled trades, advanced manufacturing,and health science
programs.
In January 2023, Baylor Scott & White announced a $220 million expansion of their Round Rock facilities to include a
neonatal intensive care unit, expanded labor and delivery department, additional operating rooms, cardiac
catheterization, interventional radiology and testing laboratories, expanded emergency department, and other facility
support,as well as more patient beds. The expansion is expected to be completed in 2026.
Relevant Financial Policies
Accounting System and Controls
The General Fund Reserve Policy remains at 25% of operating expenditures. The City's Concentration Risk Fund, a
separate account to provide 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 future uses or reduced to the target levels over an appropriate length of time.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting
controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for
preparing financial statements and maintaining accountability for assets.The concept of reasonable assurance recognizes
that: (1) the cost of 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 control 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.
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Long-Term Financial Planning
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 revenues 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. Sales tax is a less stable revenue source than property tax but provides the taxpayers with
more discretion and a lower property tax rate. Because of this 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 sales tax.
The City's economy is expected to generate approximately $108.7.million in sales tax revenue for fiscal year 2023, net of
sales tax incentives 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% in additional sales and use tax for roads and economic
development. The remaining 1.5% is projected to generate $78.2 million for general operations, property tax reduction
and capital projects.
Dell continues to be a key driver for both Round Rock and the Central Texas region. To ensure good overall financial
stability for the City, a concentration risk account has been established to mitigate the City's annual net exposure to
declining sales tax from any single sales taxpayer.Therefore, any single taxpayer that represents more than 15%of total
budgeted sales tax revenue, net of incentives will be limited to 16% in FY 2023 and 15% thereafter in the General Fund,
with excess being recognized in the General Self-Financed Construction Fund. In fiscal year 2022,the City Council adopted
new financial policies to cap the sales tax reliance in the General Fund. Any expected or realized sales tax in the General
Fund will not exceed 45% of the operating budget. Any amount above 45% will be recognized in the General
Self-Financed Construction Fund for pay-as-you-go one-time capital expenditures of projects.
The City sets utility rates based on the cost of service, establishing an equitable rate structure for total cost recovery.The
utility rate model was updated during 2021 and the results showed no water rate increases were needed for the next
several years. The City's wastewater rates decreased, and the new rates went into effect February 1, 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.
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
contract was awarded in the summer of 2022 is on schedule to start construction and projected to be completed in 2027.
The City's cost share in the project is budgeted at$84.7 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. The City assumed operational control of the BCRWWS effective October 1, 2018. This has
increased efficiencies with no net cost increase.
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In December 2017,the City's Utility System and BCRUA both received an upgraded bond 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 2022. 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, 2021. This was the thirty-sixth 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 report
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, 2021. To qualify for the Distinguished Budget Presentation
Award, the government's budget document had to be judged proficient as a policy document, a financial 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, 2021. This award recognizes the City's ability to extract information from their
annual comprehensive financial report to produce high quality popular annual financial reports specifically 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 2022, GFOA awarded the City the "Triple Crown" award which recognized Round Rock for receiving all
three GFOA awards for fiscal year 2020: 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
Report.
The City's investment policy was awarded the Certificate of Distinction by the Government Treasurers' Organization of
Texas (GTOT) in June 2022. This is the third consecutive period the City has received this distinction. This certification
recognizes the investment policy for meeting strict criteria in safeguarding the City's investments and is good for a
two-year period.
8
The City of Round Rock has earned all five Transparency Stars 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 development,
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 like to thank the Mayor and Council members for
their commitment in planning and conducting the financial operations of the City in a responsible and progressive
manner.
Respectfully submitted,
o6alv-4i�
Laurie Hadley
City Manager
Susan L. Morgan,CPA
Chief Financial Officer
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9
CITY OF • ROCK,
CITY ORGANIZATIONAL
Citizens of Round Rock
Mayor 8r City Council
Municipal Judge City Attorney
City Manager
Assistant City Manager Assistant Crty Manager
tea.
Finance City Clerk
General Services Cotttmunicatiorts&
Accourmrg&Treasury Records Management Marketing
Bolding CanstruRion Arts&Culture .: `'�
Budget Human Resources �
Facility Maintenance Sodal Media&
Muniopal Court �WeBness Digital Content
Vehicle MaintenanrP
F,any Video ProducGat
Purdtasirg �i✓ Employee Services '�
Tralu{tortation ���Eves$ t
Utiity Bung Safety&Risk Marragematt� Marlrnting
Admirrstrabon Ornlatlon TecMology
Police Department HRLS&Remrds
Transportation
Plan.r l&Ergir 1 1 I Office of the Chef Orgarrzational �Servres
Development
Transit/PubGc i
Transportation Patrol System Operations
Fire Department
Construction
Inspection Services Traini Geospadal Services
ng Fire Prevention
Project Management
4.` Cr�rrnall ;� Library
bon Fire Administration
Street Mantenance
rt Services Admnistratian
`�Po Fire Operations
Traffic Signs&Sgnals
Special Operations Home6artd Security& TecMical Services
Emergency Management>�
DtiGtieS>7<Fmirortrnal Community Risk PtblicSennces I
4
Services Planning& Reduction!CRU G
FDevHopment Services
Planning&Engineering Youth Services
Permits&Inspections Sptxtt Management
Water/Wastevrater TOtrlSm
TreamteM AduR Servioess-�
CurrerR De�,elopment Sports Center
Operations Maintenance
Ling Range Planning Convention&Yartars Parks&ReCreatlOn
&Zoning Bureau
Water Conservation
Admnistration
Forest Creels Gorr Oub
Sdid Waste&Recycirg Community Et
10
Neighborhood Services Parts
Dell Diarnord
��� Canm&Neighborhood
MarrxJerrrerrt Services Adrn�stration Recreation Cetrters
Multipurpose Complex --
Code EnforowneM At
LegLSlitlOn
Neighborhood Services Forestry
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Round Rock
Texas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2021
P. 7r�
Executive Director/CEO
11
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Austin Office
on 3600 N.Capital of Texas Hwy.
ldg
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w h i t l e y p e n ri• Bustin,Texas
8
Austin,Texas 78746
737.931.8200 Main
whitleypenn.com
INDEPENDENT AUDITORS'REPORT
To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Report on the Audit of the Financial Statements
Opinions
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 City of Round Rock, Texas (the
"City'),as of and for the year ended September 30, 2022, and the related notes to the financial statements,which
collectively comprise the City's basic financial statements,as listed in the table of contents.
In our opinion,the accompanying financial statements 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, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards,issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America,and for the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate,that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter
eL
wE ARE A�INDEPENDENT MEMBER of
THE GLOBAL ADVISORY
AND ACCOUNTING NETWORK 13
To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control.Accordingly,no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management,as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that
we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion
and analysis, 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 is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
14
To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining and individual fund statements and schedules and
schedule of expenditures of federal awards, as required by Title 2 U.S Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented
for purposes of additional analysis and are not a required part of the basic financial statements. Such information
is the responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining 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.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and
we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated February 6,2023, 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.
w -fia y L c p
Austin,Texas
February 6,2023
is
*
ov
16
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
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, 2022. 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, 2022, by $1,136,925,222 (net position). Of this amount, $735,501,769 (64.7%) is
invested in capital assets. Net position restricted for specific purposes totals $146,217,511 (12.9%). The remaining
amount, $255,205,942 (22.4%) (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$96,311,633. The increase can be attributed to $62.3 million
of operating and capital grants and contributions from both governmental and business-type activities. Grants and
contributions increased $25.7 million compared to the previous year due in part to pass-through funds from Texas
Department of Transportation (TxDOT), as well as other infrastructure contributions.Total general revenues increased
$17.5 million. Year over year, property taxes increased $2.4 million, sales tax increased $14.0 million, and Hotel
Occupancy Tax(HOT) increased $4.1 million. Sales tax increased due to increases in the retail trade, general services,
and food sales tax categories. Retail sales tax was up $3.3 million or 10.5%from the prior year.The increase in HOT is
primarily due to the continuing success of Kalahari Resorts & Conventions with FY 2022 being its first full year of
operations.
• As of the close of the current fiscal year, the City of Round Rock's governmental funds reported combined ending
fund balances of$314,418,691,an increase of$62,998,216 in comparison to the prior year.The increase is due in part
to $76.5 million of bonds being issued in fiscal year 2022, along with $32.4 million more revenue compared to fiscal
year 2021. This increase in revenues can be attributed to increased sales, property, and HOT taxes and offset by a
decrease in investment and other revenues.This is in addition to a $56.7 million increase in current year expenditures
compared to last year.The increase in expenditures is mostly related to capital projects. Unassigned fund balance of
$48,267,275,or 15.4%of the total fund balance is available for spending at the government's discretion.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $48,267,275, or 38.3%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$31,465,880. The General Fund's total fund balance, $48,652,842, is 54.6% more
than the fund balance policy requirement.
• The City of Round Rock's total debt increased by $58,158,961 during the current fiscal year. The change can be
attributed to the issuance of general obligation and general obligation refunding bonds, certificates of obligation,
limited tax notes, and a state infrastructure bank loan, 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 is intended to serve as an introduction to the City of Round Rock's basic financial statements.
The City's basic financial statements comprise 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.
17
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
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).
Both of the government-wide financial statements distinguish functions of the City of Round Rock that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to
recover all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the City include general government, public safety, public works, and culture and recreation.
The business-type activities of the City of Round Rock include water,wastewater,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 or objectives. The City of Round Rock, like other local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two
categories:governmental funds and proprietary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on the near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact
of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City of Round Rock maintains 13 individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in
fund balances for the General Fund, the Debt Service Fund, the Round Rock Transportation and Economic Development
Corporation (RRTEDC) 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 an annual appropriated budget for its General Fund. A budgetary comparison statement has been
provided for the General Fund to demonstrate compliance with the budget.
Proprietary funds
The City of Round 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 water,wastewater, and stormwater utility and for its golf course.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various
functions.The City uses an internal service fund to account for its self-funded health insurance program and funding of its
18
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
other post-employment benefits (OPEB) liability as of September 30, 2022. 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, wastewater, and stormwater utility
and for the golf course. The water, wastewater, and stormwater utility is considered a major fund of the City. Since the
Golf Course Fund 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 a full understanding of 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 OPEB benefits to its
employees. Required supplementary information can be found beginning on page 100 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$1,136,925,222 as of September 30, 2022.
The largest portion of the City's net position, $735,501,769 (64.7%) reflects its investments in capital assets (e.g., land,
buildings and improvements, improvements other than buildings, machinery and equipment, right-to-use lease assets,
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, $146,217,511 (12.9%) represents resources that are subject to external
restriction on how they may be utilized. Restricted net position increased $41.7 million, or 39.9%, compared to the prior
year. Restricted net position for the governmental activities increased $39.6 million, a direct result of the City's issuance
of general obligations bonds to fund the new library, certificates of obligation for road projects, limited tax notes for
vehicles and equipment, and state infrastructure bank loan to widen Gattis School Road. The $2.1 million increase in
restricted net position for business-type activities is a result of an increase in utility impact fees collected, which can be
used to reimburse impact fee eligible capital project costs. The remaining balance is unrestricted net position of
$255,205,942 which may be used to meet the City's ongoing obligations to citizens and creditors.
As of September 30, 2022, and 2021, 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.
19
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
Net Position
(in thousands)
Governmental Business-Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Current and other assets $ 362,014 $ 289,473 $ 242,007 $ 241,771 $ 604,021 $ 531,244
Capital assets 754,672 696,336 398,172 377,927 1,152,844 1,074,263
Total assets 1,116,686 985,809 640,179 619,698 1,756,865 1,605,507
Deferred outflows of resources 19,760 17,204 6,268 5,941 26,028 23,145
Long term liabilities 434,339 391,986 70,716 75,914 505,055 467,900
Other liabilities 80,010 64,694 39,731 46,942 119,741 111,636
Total liabilities 514,349 456,680 110,447 122,856 624,796 579,536
Deferred inflows of resources 18,631 7,482 2,541 1,020 21,172 8,502
Net position:
Net investment in capital assets 402,306 432,349 333,196 310,014 735,502 742,363
Restricted 132,351 92,773 13,866 11,751 146,217 104,524
Unrestricted 68,809 13,729 186,397 179,998 255,206 193,727
Total net position $ 603,466 $ 538,851 $ 533,459 $ 501,763 $ 1,136,925 $ 1,040,614
Total Net Position
Governmental&Business-Type Activities
(in millions)
$1,200
$1,000 ■ Unrestricted
$800 05000do ■ Restricted
$600 Net investment
in capital assets
$400
$200
2018 2019 2020 2021 2022
20
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
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 30,2022,with comparisons to the previous year.
Changes in Net Position
(in thousands)
Governmental Business-Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services $ 12,087 $ 11,000 $ 71,093 $ 64,125 $ 83,180 $ 75,125
Operating grants and
contributions 4,802 4,262 - - 4,802 4,262
Capital grants and contributions 23,442 10,055 34,040 22,289 57,482 32,344
General revenues:
Property taxes 70,551 68,187 - - 70,551 68,187
Franchise taxes 7,430 6,808 7,430 6,808
Sales tax 104,397 90,407 104,397 90,407
Hotel occupancy tax 15,128 11,003 15,128 11,003
Public service taxes 1,021 868 - - 1,021 868
Investment earnings and other 11,176 12,651 95 2,364 11,271 15,015
Total revenues 250,034 215,241 105,228 88,778 355,262 304,019
Expenses:
General government 41,211 35,906 - - 41,211 35,906
Public safety 67,534 64,976 67,534 64,976
Public works 40,068 43,589 40,068 43,589
Culture and recreation 30,668 26,874 30,668 26,874
Interest on long-term debt 11,293 10,264 - - 11,293 10,264
Water and wastewater utility - - 63,886 58,063 63,886 58,063
Golf course - - 4,291 3,700 4,291 3,700
Total expenses 190,774 181,609 68,177 61,763 258,951 243,372
Increases in net position before
transfers 59,260 33,632 37,051 27,015 96,311 60,647
Transfers 5,355 5,196 (5,355) (5,196) - -
Increase in net position 64,615 38,828 31,696 21,819 96,311 60,647
Net position-beginning 538,851 500,023 501,763 479,944 1,040,614 979,967
Net position-ending $ 603,466 $ 538,851 $ 533,459 $ 501,763 $ 1,136,925 $ 1,040,614
Governmental Activities
During the current fiscal year, governmental activities increased the City's net position by $64,615,566 or 67.1% 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 3.5% due primarily to $381 million in new taxable
property and a 2.5% increase in the property tax rate. The fiscal year 2022 tax rate of $0.397000 is 2.4% above the
no-new-revenue rate of$0.387441. Property tax makes up 33.6%of total general revenues.
• Sales tax collections of $104.4 million increased 15.5%, compared to prior year. Dell remains one of the City's top
sales taxpayers for fiscal year 2022. Retail trade sales tax was 10.5% higher than collections in the prior year. This
growth combined with strong underlying growth in other City businesses led to the increase in sales tax collections.
21
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
• Hotel occupancy tax(HOT) revenues totaled $15.1 million compared to $11.0 million in the prior year, up 37.5%from
the prior year.The increase is due in part to the Kalahari Resorts and Conventions,which opened in November 2020.
With no COVID-19 restrictions, more people are traveling and taking vacations. Hotel rooms numbers totaled 4,862
in FY 2022,an increase of 320 rooms or 7%as compared to FY 2021.
• Charges for services increased $1.1 million, or 9.9% over the prior year. The increase, in part, can be attributed to
culture and recreation which saw an increase in demand for services and increased participation in programming.
• Grants and contribution revenues increased $13.9 million over the prior year. This increase is due to reimbursement
of COVID-19 eligible expenses from Coronavirus Response & Relief Supplemental Appropriations Act (CRRSA) and
the American Rescue Plan Act (ARPA) from the U.S. Department of Transportation, as well as capital related
contributions.
• Unrestricted investment earnings and other general revenues decreased $1.5 million.The decrease can be attributed
to a one-time contractual billing correction and market conditions with a sudden change in interest rates resulting in
unrealized investment losses.All investments are held to maturity so no losses will be realized.
Revenues by Type-Governmental Activities
Sales taxes
41.8%� Hotel occupancy tax
6.1%
Public service taxes
0.4%
/ Investment earnings
4.4%
Charges for services
Franchise taxes ;`,` Operating grants and
3.0% contributions
''yA 1.9%
Property Lazes—
28 2% Capital grants and
contributions
9.4%
Expenses
Expenses for governmental activities for the City totaled $190,773,818 for the year ended September 30, 2022. Significant
factors are listed below:
• General government costs increased $5.3 million from $35.9 million in 2021 to $41.2 million in 2022, an increase of
14.8%. The increase can be attributed to an increase in economic development incentive payments and increased
salary costs.The City provided its employees with two cost of living adjustments totaling 7%this year.
• Public safety program costs including police and fire department activities totaled about $67.5 million, or 35.4% of
total expenses for governmental activities. Total costs increased 3.9% over the prior year, due largely to personnel
costs relating to Fire overtime due to deployments and salary increases.
• Public works program costs decreased $3.5 million, or 8.1%,compared to prior year.The decrease is a result of lower
capital-related expenses. The prior year had higher capital-related expenses relating to the Kalahari Resorts and
Convention Center project.
• Culture and recreation increased $3.8 million from $26.9 million in 2021 to $30.7 million, or 14.1%, in 2022. This
increase is due to increased salary expenses, in addition to the expansion and increased expenses associated with
special events.
22
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
Expenses-Governmental Activities
(in thousands)
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,$_ ,.
General Public safety Public works Culture and Interest on
government recreation long-term debt
■2022 ■2021
Business-Type Activities
Business-type activities increased the City's net position by$31,696,067 or 32.9%of the total growth in the net position of
the City over the prior year. This increase can be attributed to $34.0 million in capital grants and contributions.
Additionally, charges for services were up $7.0 million, which is offset with an increase in expenses by $6.4 million over
the prior year. Key factors for the increase in net position are as follows:
Revenues
The City's water, wastewater, and stormwater utility continues to show increases in the number of customers and
operating revenues. Planned uses of impact fees and rate revenues have allowed current rates to remain stable while still
providing adequate times coverage of utility bonded debt service.
Revenues- Business-Type Activities
Capital grants and
contributions
32.3%
Charges for
services
67.6%
_. Investment
earnings
0.1%
23
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
Comparative data for the past two fiscal years is presented as follows:
2022 2021
Operating revenues $ 67,225,390 $ 60,578,478
Operating income 5,832,830 5,169,141
Income available for debt service 28,163,395 28,112,944
Annual debt service 6,062,631 6,073,581
Coverage 4.65 4.63
Expenses
Expenses of the business-type activities increased $6.4 million over the prior year. For the water and wastewater fund,this
is primarily due to capital contributions by the City for its share of the Phase 2 Deep Water Intake Project at BCRUA.The
golf course had higher operating costs due to an increase in demand.
Expenses- Business-Type Activities
(in thousands)
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$_
Water and wastewater utility Golf course
■2022 ■2021
Financial Analysis of the Government's Funds
As noted earlier, the City of Round Rock uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
For the fiscal year ended September 30, 2022, the City's governmental funds reported combined ending fund balances of
$314,418,691. This is an increase of$63.0 million, or 25.1%over the prior year. Unassigned fund balance is $48,267,275,
or approximately 15.4% of the total fund balance amount, is available for spending at the City's discretion. $3,852,615 is
assigned to culture and recreation while $66,107,312 of the fund balance is committed to either capital projects or special
revenue projects/programs.The remainder of fund balance is restricted or non-spendable to indicate that it is not
24
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
available for new spending because it has already been restricted to 1) pay debt service of$7,041,411, 2) fund authorized
construction of$171,116,800, 3)other restricted purposes of$17,629,099 or 4) non-spendable of$404,179.
Fund Balance Type- Governmental Funds
Committed
21.0%
Restricted Assigned
62.3% IV
1.2%
Unassigned
15.4%
- Nonspendable
0.1%
The General Fund is the primary operating fund of the City. At the close of the current fiscal year, fund balance of the
General Fund reached $48,652,842, of which $48,267,275, or 99.2% of the total amount is unassigned. To measure the
general fund's liquidity, it is useful to compare unassigned fund balance to total general fund expenditures. Unassigned
fund balance represented 38.3%of total general fund expenditures.
During the current fiscal year,the fund balance of the General Fund decreased by$10,637,S97 due to a budgeted transfer
to the General Self-Financed Construction Fund for one-time capital projects. The General Fund's total revenues
exceeded the budget by $1,649,692. The City continues to budget revenues conservatively 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$4,658,982 at the end of the fiscal year, all of which is restricted for the
payment of debt service. Fund balance decreased during the year by $860,184. Debt service expenditure requirements
increased by$1,267,716 during the fiscal year and were adequately funded by the debt service portion of the property tax
rate.
The fund balance of the RRTEDC Fund was $111,882,213, an increase of $35,806,562 compared to the prior year. The
increase can be attributed to $9.9 million additional grant revenues over last year plus $27 million for a state
infrastructure bank loan,offset by$14.2 million increase in capital project expenditures over the prior year.
The fund balance of the Debt-Financed Capital Projects Fund was $61,778,334, an increase of$9,510,929 compared to the
prior year. This is a result of the issuance of general obligation bonds for the new library, issuance of certificates of
obligation for road improvement and expansion projects, and the issuance of limited tax notes for vehicles and
equipment replacement, offset by costs incurred on road and expansion projects during the fiscal year.
The fund balance of the Self-Financed Construction Fund was $59,887,320, an increase of $22,743,459 compared to the
prior year. The increase is the result of budgeted transfers for authorized projects approved by City Council and excess
sales tax revenues of$17.7 million.The City has a policy that Dell sales tax receipts, net of incentive, exceeding 1 S% of
25
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
budgeted General Fund revenues, is deposited in the General Self-Financed Construction Fund for pay-as-you-go,
one-time capital expenditures. The increase in revenues is offset by an increase of $7.7 million in capital project
expenditures.
Enterprise Funds
The City's enterprise fund statements provide the same type of information found in the government-wide financial
statements, but in more detail. At the end of the fiscal year, total net position of the enterprise funds totaled
$531,972,108, an increase of$31,748,949 over the prior year. Unrestricted net position of the funds totaled $184,909,806
at September 30,2022. The unrestricted net position represented 34.8%of the enterprise funds'total net position.
The Water and Wastewater Fund's net position increased $29,701,652 over the prior year due to a $S.8 million increase in
charges for service revenues and increases in infrastructure and impact fee contributions, $2.4 million and $6.4 million
respectively. Operating revenues totaled $67,225,390, compared to $60,578,478 in the prior year due to increased water
and wastewater service sales resulting from a very dry summer and customer growth. Operating expenses were
$61,392,560, an increase of $5,983,223 over the prior year. The increase is a result of increased salaries, chemical costs,
emergency repairs, and a pipeline inspection.
The Golf Course Fund ended the year with a net position of $11,914,029. Operating revenues totaled $3,920,614, an
11.8%increase for the year compared to $3,506,792 in the prior year. The increase is due to an increase in green fees and
increased rounds played. Operating expenses were $4,290,526, which is $590,678 higher than the previous year. The
increase can be attributed to higher costs for grounds maintenance at the course and equipment.
General Fund Budgetary Highlights
Two budget amendments were taken to City Council for the General Fund for the year ended September 30, 2022. The
first budget amendment added two (2) full-time equivalents (FTE) to create a Community Enhancement Team under the
Community and Neighborhood Services department. The budget amendment also added funds for street sweeping
services, as well as increasing funds for the rising operating costs related to the Community and Neighborhood Services
department. The second budget amendment was for higher costs in the Parks and Recreation Department's personnel
and operating expenditures related to increased attendance and events. The higher costs were offset by increased Park
and Recreation fee revenues.
Capital Assets and Debt Administration
Capita!Assets
The City of Round Rock's investment in capital assets for its governmental and business-type activities as of September
30, 2022, amounted to $1,152,843,909 (net of accumulated depreciation/amortization). This investment includes land,
buildings and improvements (including infrastructure), machinery and equipment, right-to-use lease assets, and
construction in progress.
Major capital asset events for the year ended September 30, 2022, included the following:
Downtown Improvements
• Construction was substantially completed on the Northeast Downtown Improvements project with $10.2 million spent
to date.
• Construction is nearing completion on the new Downtown Parking Garage with $11.5 million spent to date.
Facility Improvements
• City facility improvements were completed at a cost of$1.1 million. Of the $1.1 million, $813,000 was spent on HVAC
improvements.
26
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
• Information technology infrastructure upgrades were completed at a cost of$1.3 million.Of the$1.3 million, $504,000
was spent on security camera upgrades.
• Construction was completed on the new Dell Diamond Marquee Sign at a cost of$535,000.
• Design is underway on the new Fire Station#1 with $350,000 spent to date.
• Construction is underway for the new library with $28.4 million spent to date. Of this $28.4 million, $23.2 million was
funded from the 2014 and 2022 General Obligation(GO) bonds.
Park Improvements and Trails
• Construction was completed on the new Kinningham House at a total cost of$2.5 million.
• Construction was completed on the Old Settlers Park Yonders Point Flag Plaza at a total cost of$404,000.
• Expansion of other citywide trails is underway with $7.2 million spent to date. Of this $7.2 million, $5.6 million was
funded from the 2014 and 2017 GO bonds.
• Additional park and facility improvements were completed at a cost of$1.8 million.
Transportation Improvements
• Major arterial, signal, and road projects for transportation are underway and at various stages of completion.
Completed projects totaled $10.9 million while construction in progress at year-end approximated $49.9 million.
• Various neighborhood street improvement projects were completed at a cost of$5.0 million.
• Developers contributed $8.7 million for transportation infrastructure improvements.
Water,Wastewater,and Stormwater Improvements
• Various water pump station improvements were completed at a cost of$1.2 million.
• Various water and wastewater system improvement projects were completed and placed in service at a cost of$14.3
million and similar projects were in progress with $5.7 million spent to date.
• The City completed a stormwater project in the Chisholm Valley neighborhood at a cost of$1.8 million.
• Various additional stormwater improvement projects are in process with $1.6 million spent to date.
• Developers contributed $18.9 million for water,wastewater,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 and 70% complete
with $14.1 million spent to date by the City.
Capital Assets
(in thousands)
Governmental Business-Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Land $ 116,588 $ 114,073 $ 10,916 $ 8,483 $ 127,504 $ 122,556
Buildings and improvements 1,022,181 987,211 627,420 581,135 1,649,601 1,568,346
Machinery and equipment 94,034 89,892 21,698 17,574 115,732 107,466
Right-to-use lease assets 547 - 214 - 761 -
Accumulated depreciation/amortization (571,511) (537,865) (274,513) (252,515) (846,024) (790,380)
Construction in progress 92,833 43,025 12,437 23,250 105,270 66,275
Total $ 754,672 $ 696,336 $ 398,172 $ 377,927 $ 1,152,844 $ 1,074,263
Additional information on the City of Round Rock's capital assets can be found in Note IV(E)to the financial statements.
27
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
Long-Term Debt
At the end of the current fiscal year, the City of Round Rock had total debt outstanding of$460,133,030.Of this amount,
$319,914,619 comprises debt backed by the full faith and credit of the City. The remainder of the City's debt is secured
solely by specified revenue sources(i.e., revenue bonds).
During the current fiscal year, the City of Round Rock's total debt increased by $58,158,961. Regularly scheduled debt
principal was retired during 2022. The City issued general obligation refunding bonds, series 2022, which resulted in
reduced debt service payments of $10,161,561 and an economic gain of $8,228,594. The City also issued $26,570,000
combination tax and limited revenue certificates of obligation, series 2022, $20,985,000 general obligation bonds, series
2022, $1,900,000 limited tax notes, series 2022, and a $27,000,000 state infrastructure bank loan. Details of the refunding
and new bond issues can be found in Note IV(F) (4)to the financial statements.
Long-Term Debt
(in thousands)
Governmental Business-Type
Activities Activities Total
2022 2021 2022 2021 2022 2021
General obligation bonds $ 162,165 $ 131,555 $ $ $ 162,165 $ 131,555
Certificates of obligation 148,300 140,250 148,300 140,250
Limited tax notes 6,915 6,400 6,915 6,400
Hotel tax revenue bonds 7,375 8,065 7,375 8,065
Sales tax revenue bonds 42,320 44,670 - 42,320 44,670
State infrastructure bank
loan 27,000 - - 27,000 -
Notes payable 2,132 4,169 - - 2,132 4,169
Leases 403 - 133 536 -
Water and wastewater
revenue bonds - - 63,390 66,865 63,390 66,865
Total $ 396,610 $ 335,109 $ 63,523 $ 66,865 $ 460,133 $ 401,974
The City of Round Rock benefits substantially in reduced interest costs 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 cover the debt service on over $3.0 billion of bonds. Of the maximum tax rate for debt service of
$1.50, the City uses $0.1321, or 8.8%. Of $70,241,994 levied in property taxes for the fiscal year ended September 30,
2022, 99.70%of taxes levied were collected during the fiscal year. The City is conservative in how it issues debt and has
adopted a "pay as you go" philosophy by using excess cash funds to fund current projects and issuing debt only when
deemed necessary.
Additional information on the City's long-term debt can be found in Note IV(F)to the financial statements.
28
I
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2022
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 2022-2023 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
2022-2023 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
• Inflation impacting both wage and operating costs
Revenue assumptions, in general for fiscal year 2022-2023, 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 $108.7 million in sales tax revenue for fiscal year 2023. This
amount includes the 0.5%, or $30.5 million, in additional sales and use tax for roads and economic development. The
remaining 1.5%is projected to generate$78.2 million for general operations, property tax reduction,and capital projects.
The fiscal year 2023 certified taxable property value for Round Rock is $21.7 billion, an increase of 22.6%from last year's
$17.7 billion. The adopted property tax rate for fiscal year 2023 is $0.342000 per $100 of valuation. The tax rate is an
increase of 1.6 cents over the no-new-revenue rate of $0.326408, and well below the voter approval rate of $0.363244.
The 1.6 cents increase over the no-new-revenue tax rate allows the City to provide additional funding for public safety,as
well as,the payment of GO bond debt for the new Library. With an adopted rate of$0.342000,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 rate increases for retail water, wastewater, or stormwater budgeted for fiscal year
2023. 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.
29
Olog..Roy
...
30
BASIC FINANCIAL STATEMENTS
31
CITY OF ROUND ROCK, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 18,588,135 $ 19,238,860 $ 37,826,99S
Investments 134,835,331 152,886,129 287,721,460
Receivables(net of allowance for uncollectibles)-
Property taxes 525,259 - 525,259
Accounts and other 13,7S6,S60 19,983,745 33,740,305
Accrued interest 480,106 2,149,406 2,629,512
Intergovernmental - 4,286,553 4,286,553
Grants 6,317,633 - 6,317,633
Interfund (1,486,979) 1,486,979 -
Inventories 286,018 634,700 920,718
Prepaid items 430,661 615,772 1,046,433
Restricted assets-
Cash and cash equivalents 5S,710,995 3,734,125 59,445,120
Investments 129,546,737 12,118,911 141,665,648
Property tax receivable 376,607 - 376,607
Accounts and other 2,300,469 - 2,300,469
Accrued interest 347,032 38,496 385,528
Investment in joint venture - 24,833,187 24,833,187
Capital assets-
Land and construction in progress 209,420,952 23,353,220 232,774,172
Capital assets, net of accumulated
depreciation/amortization 545,250,889 374,818,848 920,069,737
Total assets 1,116,686,405 640,178,931 1,756,865,336
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refundings 623,944 3,694,158 4,318,102
Deferred outflows related to pensions 16,370,285 2,196,507 18,566,792
Deferred outflows related to OPEB 2,765,466 377,110 3,142,576
Total deferred outflows of resources 19,759,695 6,267,775 26,027,470
The accompanying notes are an integral part of this financial statement.
32
Governmental Business-Type
Activities Activities Total
LIABILITIES
Accounts payable $ 18,801,266 $ 20,428,358 $ 39,229,624
Accrued payroll 3,106,724 423,882 3,530,606
Unearned revenue 23,185,264 11,855,003 35,040,267
Accrued interest payable 2,034,259 404,439 2,438,698
Customer deposits - 2,047,252 2,047,252
Due within one year
Bonds, notes, leases,compensated absences 32,881,867 4,571,979 37,453,846
Due in more than one year
Net pension liability 22,840,714 3,114,644 25,955,358
Total OPEB liability 19,841,461 2,705,654 22,547,115
Bonds, notes, leases,compensated absences 391,657,051 64,895,768 456,552,819
Total liabilities 514,348,606 110,446,979 624,795,585
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 17,573,936 2,396,445 19,970,381
Deferred inflows related to OPEB 1,057,423 144,195 1,201,618
Total deferred inflows of resources 18,631,359 2,540,640 21,171,999
NET POSITION
Net investment in capital assets 402,305,527 333,196,242 735,501,769
Restricted for-
Debt service 5,383,886 38,580 5,422,466
Capital projects 109,338,466 13,827,480 123,165,946
Hotel-motel tax 15,269,909 - 15,269,909
Public safety 887,046 - 887,046
General government 1,472,144 - 1,472,144
Unrestricted 68,809,157 186,396,785 255,205,942
Total net position $ 603,466,135 $ 533,459,087 $ 1,136,925,222
33
CITY OF ROUND ROCK,TEXAS
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General government $ 41,210,815 $ 2,962,085 $ 4,791,178 $ -
Public safety 67,534,584 1,705,859 8,167
Public works 40,067,607 873,899 - 23,320,593
Culture and recreation 30,667,820 6,544,740 2,755 121,808
Interest on long-term debt 11,292,992 - - -
Total governmental activities 190,773,818 12,086,583 4,802,100 23,442,401
Business-type activities:
Water and wastewater utility 63,886,112 67,172,508 - 31,627,192
Golf course 4,290,895 3,920,614 - 2,413,139
Total business-type activities 68,177,007 71,093,122 34,040,331
Total primary government $ 258,950,825 $ 83,179,705 $ 4,802,100 $ 57,482,732
The accompanying notes are an integral part of this financial statement.
34
Net(Expense) Revenue and Changes in Net
Position
Primary Government
Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:
General government $ (33,457,552) $ $ (33,457,552)
Public safety (65,820,558) (65,820,558)
Public works (15,873,115) - (15,873,115)
Culture and recreation (23,998,517) - (23,998,517)
Interest on long-term debt (11,292,992) - (11,292,992)
Total governmental activities (150,442,734) - (150,442,734)
Business-type activities:
Water and wastewater utility 34,913,588 34,913,588
Golf course 2,042,858 2,042,858
Total business-type activities 36,956,446 36,956,446
Total primary government (150,442,734) 36,956,446 (113,486,288)
General revenues:
Taxes:
Property taxes, levied for general purpose 47,018,818 - 47,018,818
Property taxes, levied for debt service 23,532,242 23,532,242
Franchise taxes 7,429,827 7,429,827
Sales taxes 104,397,185 104,397,18E
Hotel occupancy tax 15,128,191 - 15,128,191
Public service taxes 1,020,842 - 1,020,842
Unrestricted investment earnings and other 11,176,19S 94,621 11,270,816
Transfers 5,355,000 (5,355,000) -
Total general revenues and transfers 215,058,300 (5,260,379) 209,797,921
Change in net position 64,615,566 31,696,067 96,311,633
Net position-beginning 538,850,569 501,763,020 1,040,613,589
Net position-ending $ 603,466,135 $ 533,459,087 $ 1,136,925,222
35
CITY OF ROUND ROCK,TEXAS
GOVERNMENTAL FUNDS BALANCE SHEET
SEPTEMBER 30, 2022
Round Rock
Transportation
and Economic
General Debt Service Development
Fund Fund Corporation Fund
ASSETS
Cash and cash equivalents $ 6,473,185 $ $ 48,751
Investments 46,956,717 353,769
Receivables(net of allowance for uncollectibles) -
Property taxes, including interest and penalties 525,259 -
Accounts and other 8,675,044 1,233,094
Accrued interest 223,872 1,207
Interfund 7,357 -
Grants 465,905 - 5,817,816
Inventories 286,018 -
Prepaid items 99,549 - -
Restricted assets-
Cash and cash equivalents - 4,666,339 33,187,978
Investments - 75,508,566
Receivables-
Property taxes, including interest and penalties 376,607 -
Sales tax - 2,300,469
Accrued interest - - 319,592
Total assets $ 63,712,906 $ 5,042,946 $ 118,771,242
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES
Liabilities-
Accounts payable $ 7,960,127 $ - $ 6,320,709
Accrued payroll 3,024,596 - -
Interfund payables - 7,357 -
Unearned revenue 3,550,082 - 568,320
Total liabilities 14,534,805 7,357 6,889,029
Deferred inflows of resources-
Unavailable revenue-property taxes 525,259 376,607
Total deferred inflows of resources 525,259 376,607 -
Fund balances-
Nonspendable 385,567 - -
Restricted-debt service - 4,658,982 2,382,429
Restricted-authorized construction - - 109,096,057
Restricted-hotel-motel tax - - -
Restricted-public safety - -
Restricted-general government - - -
Committed -general government - - -
Committed -capital projects funds - - 403,727
Committed -culture and recreation - - -
Assigned -culture and recreation - - -
Unassigned 48,267,275 - -
Total fund balances 48,652,842 4,658,982 111,882,213
Total liabilities,deferred inflows of resources and
fund balances $ 63,712,906 $ 5,042,946 $ 118,771,242
The accompanying notes are an integral part of this financial statement.
36
Debt-Financed Self-Financed Other Total
Capital Projects Construction Governmental Governmental
Fund Fund Funds Funds
$ 163,097 $ 7,402,245 $ 3,090,059 $ 17,177,337
1,183,520 53,714,532 22,389,314 124,597,852
- - - 525,259
- - 1,098,422 11,006,560
4,214 126,583 90,547 446,423
- - - 7,357
33,912 6,317,633
- - 286,018
18,612 - 118,161
16,758,224 1,098,454 55,710,995
46,067,244 7,970,927 129,546,737
- - 376,607
- - 2,300,469
26,210 - 1,230 347,032
$ 64,221,121 $ 61,243,360 $ 35,772,865 $ 348,764,440
$ 2,442,787 $ 1,356,040 $ 206,904 $ 18,286,567
- - 82,128 3,106,724
- - - 7,357
- - 7,924,833 12,043,235
2,442,787 1,356,040 8,213,865 33,443,883
- - - 901,866
- - - 901,866
18,612 - - 404,179
- - - 7,041,411
60,427,503 - 1,593,240 171,116,800
- - 15,269,909 15,269,909
- 887,046 887,046
- - 1,472,144 1,472,144
- - 1,077,519 1,077,519
1,332,219 59,887,320 1,923,472 63,546,738
- - 1,483,055 1,483,055
3,852,615 3,852,615
- - - 48,267,275
61,778,334 59,887,320 27,559,000 314,418,691
$ 64,221,121 $ 61,243,360 $ 35,772,865 $ 348,764,440
37
CITY OF ROUND ROCK,TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Total Fund Balances-Governmental Funds $ 314,418,691
Amounts reported for Governmental Activities in the Statement of Net Position are different
because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds. These assets consist of:
Land $ 116,587,882
Construction in progress 92,833,070
Building and improvements 1,022,181,093
Equipment 94,034,523
Right-to-use lease assets 546,644
Accumulated depreciation/amortization (571,511,371)
Total capital assets $ 754,671,841 754,671,841
Deferred amounts on refundings are deferred outflows of resources and, therefore, are not
reported in the funds. 623,944
Contributions to the pension plan after the measurement date are deferred outflows of resources
and,therefore,are not reported in the funds. 8,664,071
Pension actuarial losses(gains)are deferred outflows(inflows)of resources and,therefore,are not
reported in the funds. (9,867,722)
Contributions to the OPEB plan after the measurement date are deferred outflows of resources
and,therefore,are not reported in the funds. 504,646
OPEB actuarial losses (gains) are deferred outflows (inflows) of resources and, therefore, are not
reported in the funds. 1,203,397
Property tax revenues 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. 901,866
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 activities in the Statement of Net Position. 9,992,782
Unearned revenue associated with long-term economic development agreements are not a
current financial resource and,therefore,are not reported in the funds. (11,142,029)
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 funds as an expenditure,and not as a receivable. 2,750,000
Accrued interest payable in the governmental funds are not recognized because they are not paid
within the prescribed time period after year end. (2,034,259)
Some long-term liabilities are not due and payable in the current period and,therefore, are not
reported in the funds. They are detailed in Note III(A). (467,221,093)
Net Position of Governmental Activities $ 603,466,135
The accompanying notes are an integral part of this financial statement.
38
39
CITY OF ROUND ROCK,TEXAS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2022
Round Rock
Transportation
and Economic
Debt Development
General Service Corporation
Fund Fund Fund
Revenues-
Taxes and franchise,
including interest and penalties $ 112,789,493 $ 23,393,952 $ 29,116,181
Licenses, permits and fees 2,619,840 - -
Charges for services 5,308,795
Fines and forfeitures 1,143,039 -
Intergovernmental 4,177,384 11,487,619
Hotel occupancy tax - -
Contributions - - 1,616,159
Investment and other 1,694,181 107,138 (434,371)
Total revenues 127,732,732 23,501,090 41,785,588
Expenditures-
Current-
General government 26,055,869 - -
Public safety 64,353,318 -
Public works 16,878,535 2,177,738
Culture and recreation 18,575,796 - -
Debt service-
Principal retirement - 19,650,222 -
Interest and fiscal charges - 12,133,701 -
Issuance costs - 778,091 91,850
Capital projects - - 40,420,293
Total expenditures 125,863,518 32,562,014 42,689,881
Excess(deficiency)of revenues
over expenditures 1,869,214 (9,060,924) (904,293)
Other financing sources(uses) -
Issuance of debt - - 27,000,000
Issuance of refunding bonds - 79,860,000 -
Issuance of premium - - -
Payment to refunded bond escrow agent - (79,078,568) -
Transfers in 6,455,000 7,419,308 23,478,840
Transfers out (18,961,811) - (13,767,985)
Total other financing sources(uses) (12,506,811) 8,200,740 36,710,855
Net change in fund balances (10,637,S97) (860,184) 35,806,562
Fund balances,October 1,2021 59,290,439 5,519,166 76,075,651
Fund balances,September 30,2022 $ 48,652,842 $ 4,658,982 $ 111,882,213
The accompanying notes are an integral part of this financial statement.
40
Debt-Financed Self-Financed Other Total
Capital Projects Construction Governmental Governmental
Fund Fund Funds Funds
$ - $ 17,678,902 $ 183,753 $ 183,162,281
- - 339,502 2,959,342
- - 2,620,992 7,929,787
- 237,859 1,380,898
- 9,151,399 24,816,402
- - 15,128,191 15,128,191
- 44,593 1,624,563 3,285,315
90,949 1,416,762 (95,750) 2,778,909
90,949 19,140,257 29,190,509 241,441,125
- - 9,321,762 35,377,631
- 64,353,318
- - 19,056,273
- 5,441,912 24,017,708
- 19,650,222
- 12,133,701
642,367 - - 1,512,308
29,465,951 16,740,420 949,097 87,575,761
30,108,318 16,740,420 15,712,771 263,676,922
(30,017,369) 2,399,837 13,477,738 (22,235,797)
49,455,000 - - 76,455,000
- - 79,860,000
2,642,581 - 2,642,581
- - - (79,078,568)
11,300,548 20,526,331 856,938 70,036,965
(23,869,831) (182,709) (7,899,629) (64,681,965)
39,528,298 20,343,622 (7,042,691) 85,234,013
9,510,929 22,743,459 6,435,047 62,998,216
52,267,405 37,143,861 21,123,953 251,420,475
$ 61,778,334 $ 59,887,320 $ 27,559,000 $ 314,418,691
41
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, 2022
Net Change in Fund Balances-Total Governmental Funds $ 62,998,216
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the cost of those assets is allocated over their estimated useful lives and
reported as depreciation/amortization expense. This is the amount by which capital
outlays exceeded depreciation/amortization. They are detailed in Note III (B). 49,393,648
The net effect of various miscellaneous transactions involving capital assets (i.e. sales,
disposals,and donations) is to increase net position. They are detailed in Note III (B). 8,540,070
Property tax revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. 236,633
The issuance of long-term debt (i.e. 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 premiums, discounts, and similar items when debt is first
issued, 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 related items. They are detailed in Note III (B). (60,306,984)
Governmental funds report repayment of lease principal as an expenditure. In contrast,
the Statement of Activities treats such repayments as a reduction in long-term liabilities. (293)
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. These are detailed in Note III (B) and include:
Pension costs, net 5,032,964
OPEB costs, net (1,S76,240)
Interest and employee expense 480,996
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 governmental activities. (183,444)
Change in Net Position of Governmental Activities $ 64,615,566
The accompanying notes are an integral part of this financial statement.
42
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Taxes and franchise,
including interest and penalties $ 111,335,701 $ 111,530,161 $ 112,789,493 $ 1,259,332
Licenses, permits and fees 1,690,650 1,690,650 2,619,840 929,190
Charges for services 3,909,000 4,646,000 5,308,795 662,795
Fines and forfeitures 970,000 970,000 1,143,039 173,039
Intergovernmental 2,496,529 2,496,529 4,177,384 1,680,855
Investment and other 4,749,700 4,749,700 1,694,181 (3,055,519)
Total revenues 125,151,580 126,083,040 127,732,732 1,649,692
Expenditures-
Current-
General government 28,189,073 27,752,059 26,055,869 1,696,190
Public safety 65,505,537 65,744,726 64,353,318 1,391,408
Public works 22,191,496 17,862,039 16,878,535 983,504
Culture and recreation 17,434,446 18,593,188 18,575,796 17,392
Total expenditures 133,320,552 129,952,012 12S,863,S18 4,088,494
Excess(deficiency)of revenues
over expenditures (8,168,972) (3,868,972) 1,869,214 5,738,186
Other financing sources(uses) -
Transfers in 6,455,000 6,4S5,000 6,455,000 -
Transfers out (13,500,000) (18,961,811) (18,961,811)
Total other financing sources(uses) (7,045,000) (12,506,811) (12,506,811) -
Net change in fund balances $ (15,213,972) $ (16,375,783) (10,637,597) $ 5,738,186
Fund balance,October 1,2021 59,290,439
Fund balance,September 30,2022 $ 48,652,842
The accompanying notes are an integral part of this financial statement.
43
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues -
Sales tax $ 21,959,250 $ 21,959,250 $ 29,116,181 $ 7,156,931
Intergovernmental 22,730,996 22,730,996 11,487,619 (11,243,377)
Contributions 12,161,282 12,161,282 1,616,159 (10,545,123)
Investment and other 300,000 300,000 (434,371) (734,371)
Total revenues 57,151,528 57,151,528 41,78S,S88 (15,365,940)
Expenditures-
Current-
Public works 10,936,476 10,936,476 2,177,738 8,758,738
Debt Service-
Issuance costs - 91,8S0 91,850 -
Capital projects 40,420,293 40,420,293 40,420,293 -
Total expenditures 51,356,769 51,448,619 42,689,881 8,758,738
Excess(deficiency)of revenues
over expenditures 5,794,759 5,702,909 (904,293) (6,607,202)
Other financing sources(uses) -
Issuance of debt - - 27,000,000 27,000,000
Transfers in 2,035,197 2,035,197 23,478,840 21,443,643
Transfers out (1,100,000) (13,767,985) (13,767,985) -
Total other financing sources(uses) 935,197 (11,732,788) 36,710,855 48,443,643
Net change in fund balances $ 6,729,956 $ (6,029,879) 35,806,562 $ 41,836,441
Fund balance, October 1, 2021 76,075,651
Fund balance, September 30, 2022 $ 111,882,213
The accompanying notes are an integral part of this financial statement.
44
45
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Business-Type Activities Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
ASSETS
Current assets:
Cash and cash equivalents $ 18,966,217 $ 272,643 $ 19,238,860 $ 1,410,798
Investments 152,309,783 576,346 152,886,129 10,237,479
Receivables (net of allowance for
uncollectibles of$1,049,338) -
Accounts and other 19,878,745 105,000 19,983,745 -
Accrued interest 2,147,925 1,481 2,149,406 33,683
Intergovernmental 4,286,S53 - 4,286,553 -
Inventories 634,700 - 634,700 -
Prepaid items 467,024 148,748 615,772 312,500
Total current assets 198,690,947 1,104,218 199,795,165 11,994,460
Noncurrent assets:
Restricted cash,cash equivalents,
and investments:
Impact fees 7,389,434 - 7,389,434
Construction 6,399,550 - 6,399,S50
Customer deposits 2,025,472 - 2,025,472 -
Revenue bond covenant accounts 38,580 - 38,580 -
Restricted accrued interest 38,496 - 38,496 -
Investment in joint venture 24,833,187 - 24,833,187 -
Capital assets:
Land and construction in progress 19,048,906 4,304,314 23,353,220 -
Capital assets being depreciated/amortized 367,963,698 6,855,150 374,818,848 -
Total capital assets(net of accumulated
depreciation/amortization of$274,513,125) 387,012,604 11,159,464 398,172,068 -
Total noncurrent assets 427,737,323 11,159,464 438,896,787 -
Total assets 626,428,270 12,263,682 638,691,952 11,994,460
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refundings 3,694,158 - 3,694,158 -
Deferred outflows related to pensions 2,196,507 - 2,196,507 -
Deferred outflows related to OPEB 377,110 - 377,110 -
Total deferred outflows of resources 6,267,775 - 6,267,775 -
The accompanying notes are an integral part of this financial statement.
46
Business-Type Activities Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
LIABILITIES
Current liabilities:
Accounts payable $ 20,210,309 $ 218,049 $ 20,428,358 $ 514,699
Accrued payroll 423,882 - 423,882 -
Accrued benefit obligations 630,234 - 630,234 -
Unearned revenue 11,855,003 - 11,855,003 -
Accrued interest 404,439 - 404,439 -
Customer deposits 2,047,252 - 2,047,252 -
Lease payable 1,434 78,903 80,337 -
Bonds payable 3,861,408 - 3,861,408 -
Total current liabilities 39,433,961 296,952 39,730,913 514,699
Noncurrent liabilities:
Net pension liability 3,114,644 - 3,114,644 -
Total OPEB liability 2,705,654 2,705,654
Accrued benefit obligations 167,531 - 167,531
Lease payable 373 52,701 53,074 -
Bonds payable 64,675,163 - 64,675,163 -
Total noncurrent liabilities 70,663,365 52,701 70,716,066 -
Totalliabilities 110,097,326 349,653 110,446,979 514,699
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 2,396,445 - 2,396,445 -
Deferred inflows related to OPEB 144,195 - 144,195 -
Total deferred inflows of resources 2,540,640 - 2,540,640 -
NET POSITION
Net investment in capital assets 322,168,381 11,027,861 333,196,242 -
Restricted for:
Debt service 38,580 - 38,580 -
Capital projects 13,827,480 - 13,827,480 -
Unrestricted 184,023,638 886,168 184,909,806 11,479,761
Total net position $ 520,058,079 $ 11,914,029 531,972,108 $ 11,479,761
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. 1,486,979
Net position of business-type activities $ 533,459,087
47
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30, 2022
Business-Type Activities Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
Operating revenues-
Charges for services $ 60,923,212 $ 3,920,614 $ 64,843,826 $ 15,727,327
Licenses, permits,and fees 6,302,178 - 6,302,178 -
Total revenues 67,225,390 3,920,614 71,146,004 15,727,327
Operating expenses-
Personnel services 13,633,693 - 13,633,693 -
Contractual services 18,392,887 3,667,199 22,060,086 3,049,629
Supplies 1,810,064 1,168 1,811,232 -
Repair and maintenance 2,424,329 379 2,424,708 1,867
Heat, light and power 2,891,204 58,984 2,950,188 4,908
Claims expense - - - 12,960,388
Depreciation and amortization 22,240,383 562,796 22,803,179 -
Total operating expenses 61,392,560 4,290,526 65,683,086 16,016,792
Operating income(loss) 5,832,830 (369,912) 5,462,918 (289,465)
Nonoperating revenues (expenses) -
Investment and other revenues 90,182 4,439 94,621 53,139
Interest and fiscal charges (2,493,552) (369) (2,493,921) -
Total nonoperating
revenues(expenses) (2,403,370) 4,070 (2,399,300) 53,139
Income before contributions
and transfers 3,429,460 (365,842) 3,063,618 (236,326)
Contributions and transfers-
Contributions- impact fees 10,874,007 10,874,007
Contributions- infrastructure 18,891,783 - 18,891,783
Contributions-other 1,861,402 2,413,139 4,274,541
Transfers out (5,355,000) - (5,355,000) -
Total contributions and transfers 26,272,192 2,413,139 28,685,331 -
Change in net position 29,701,652 2,047,297 31,748,949 (236,326)
Net position,October 1,2021 490,356,427 9,866,732 11,716,087
Net position,September 30,2022 $ 520,058,079 $ 11,914,029 $ 11,479,761
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 (52,882)
Change in net position of business-type activities $ 31,696,067
The accompanying notes are an integral part of this financial statement.
48
CITY OF ROUND ROCK, TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2022
Business-Type Activities- Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
Cash flows from operating activities:
Cash received from customers $ 72,133,543 $ 3,890,614 $ 76,024,157 $ 1,848,140
Cash received from other funds for services provided - - 13,879,187
Cash payments to suppliers for goods and services (39,963,132) (3,722,545) (43,685,677) (16,580,247)
Cash payments to employees for services (13,969,977) - (13,969,977)Net cash provided (used) by
operating activities 18,200,434 168,069 18,368,503 (852,920)
Cash flows from noncapital financing activities:
Transfers to other funds (5,355,000) - (5,355,000)Net cash provided (used) by noncapital
financing activities (5,355,000) (5,355,000)
Cash flows from capital and related
financing activities:
Proceeds from sale of capital assets 65,215 65,215
Proceeds from ARPA grant 6,427,502 6,427,502 -
Acquisition and construction of capital assets (21,355,554) (21,992) (21,377,546) -
Investment in joint venture (7,743,143) - (7,743,143) -
Liability associated with right-to-use assets 1,807 131,604 133,411 -
Acquisition of right-to-use assets (4,107) (210,355) (214,462) -
Principal paid on revenue bonds (3,806,408) - (3,806,408) -
Interest paid on revenue,certificates of
obligation bonds,&leases (2,204,822) (369) (2,205,191) -
Contributions 1,861,402 - 1,861,402 -
Impact fees 10,874,007 - 10,874,007 -
Net cash provided (used) by capital and
related financing activities (11 S,884,1 01) (101,112) (15,985,213) -
Cash flows from investing activities:
Sale(purchase)of investments (23,319,048) (116,825) (23,435,873) (920,082)
Investment and other income - 3,166 3,166 25,285
Net cash provided (used) by
investing activities (23,319,048) (113,659) (23,432,707) (894,797)
Net increase(decrease) in cash and cash
equivalents (26,357,715) (46,702) (26,404,417) (1,747,717)
Cash and cash equivalents at beginning of year 49,058,327 319,345 49,377,672 3,158,515
Cash and cash equivalents at end of year $ 22,700,612 $ 272,643 $ 22,973,255 $ 1,410,798
(CONTINUED)
The accompanying notes are an integral part of this financial statement.
49
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2022
Business-Type Activities- Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
Reconciliation of Cash and Cash Equivalents
to Proprietary Fund Statement of Net Position
Cash and cash equivalents $ 18,966,217 $ 272,643 $ 19,238,860 $ 1,410,798
Restricted assets-
Cash and cash equivalents 3,734,39S - 3,734,39S -
Cash and cash equivalents $ 22,700,612 $ 272,643 $ 22,973,255 $ 1,410,798
Reconciliation of operating income (loss)to
net cash provided (used) by operating activities
Operating income(loss) $ 5,832,830 $ (369,912) $ 5,462,918 $ (289,465)
Adjustments to reconcile operating income
(loss)to net cash provided (used) by operating
activities:
Depreciation&amortization 22,240,383 562,796 22,803,179 -
Provision for bad debts 165,931 - 165,931 -
(Increase)decrease in:
Receivables 4,588,875 (30,000) 4,558,875 -
Customer deposits (154,406) (154,406) -
Inventory (76,615) (76,615) -
Other assets (36,905) (148,748) (185,653) (225,000)
Pension related deferred outflows (486,372) - (486,372)
OPEB related deferred outflows (102,184) - (102,184)
Increase(decrease) in:
Accounts payable (14,176,722) 153,933 (14,022,789) (338,455)
Customer deposits 153,347 - 153,347
Accrued payroll 135,089 135,089
Pension related deferred inflows 1,461,004 1,461,004 -
OPEB related deferred inflows 59,391 59,391 -
Net pension liability (1,660,946) (1,660,946) -
Total OPEB liability 257,734 - 257,734 -
Total adjustments 12,367,604 537,981 12,905,585 (563,455)
Net cash provided(used) by operations $ 18,200,434 $ 168,069 $ 18,368,503 $ (852,920)
NOTES:
Noncash capital and related financing activities:
In fiscal year 2022,the Water and Wastewater Fund had $18,891,783 in capital assets contributed, recognized a change
of($2,959,296) in fair value of investments,and a change of$7,743,143 in joint venture net position.
The accompanying notes are an integral part of this financial statement.
50
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Round Rock,Texas(the City) is a municipal corporation incorporated under Article Xl,Section 5 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 wastewater 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 economic development by the improvement of the City's
transportation system and payment of economic development incentives, covered under local government code.
The City Council maintains budgetary control for 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.
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NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Governmental 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.
The government-wide statement of activities demonstrates the degree to which the direct expenses of a
functional category (police, fire, public works, etc.) are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function. Program revenues include 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function
or segment, 2) grants and contributions that are restricted to meeting the operational requirements of a
particular function or segment, 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 revenues. In addition, the government-wide statement of activities reflects
depreciation and amortization expense on the City's capital assets, including infrastructure.
The net cost (by function or business-type activity) is normally covered by general revenue (property, sales or
franchise taxes,intergovernmental revenues, interest income,etc.).
The government-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 Financial Statements
Separate fund based financial statements are provided for governmental funds and proprietary funds. Major
individual 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 Statement No. 34 sets forth minimum criteria for the determination of major funds(i.e., funds
whose revenues, expenditures/expenses, assets, or liabilities are at least 10% of corresponding totals for all
governmental or enterprise funds and at least 5% of the aggregate amount for all governmental and enterprise
funds). The major governmental 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. The 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 proprietary fund financial statements. The net income (loss) of the Internal Service Fund is allocated
between governmental and business-type activities. Because the principal users are the City's governmental
activities, financial statements 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
Governmental funds are those through which most governmental functions of the City are financed. The
acquisition, 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:
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NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 Block 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 incentives, are not to exceed 20% of budgeted sales tax revenues in the General
Fund. Dell sales tax receipts, net of incentives, 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 cap
was 17% for fiscal year 2022. 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.
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NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
D. PROPRIETARY FUND TYPES
The Proprietary Funds are used to account for the City's ongoing organizations and activities that are similar to
those found 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
contributions and transfers, net position and cash flows.The City maintains both Enterprise Funds and an Internal
Service Fund.
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
depreciation) 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 Wastewater 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 Health Insurance Fund, which is used to account for the activities of the City's
Self-Funded Health Insurance program.
E. NON-CURRENT GOVERNMENTAL ASSETS/LIABILITIES
GASB Statement 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
governmental activities column in the government-wide statement of net position.
F. BASIS OF ACCOUNTING
Government-wide Statements
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of 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
requirements imposed by the grantor/provider have been met.
Fund Financial Statements
In the fund financial statements, all governmental funds are accounted for using a modified accrual basis of
accounting. Governmental funds use the current financial resources measurement focus. Under this basis,
revenues are recognized in the accounting period in which they become measurable and available. Expenditures
are recognized 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 thereafter 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, 2022
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 Wastewater
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/amortization 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
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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.
H. INVESTMENTS
All investments 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 City 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. INVENTORIES AND PREPAID ITEMS
Inventories of supplies for all funds are valued at cost. Cost is determined on the first-in, first-out method. The
consumption method is used to account for inventories. Under the consumption method, an expenditure is
recognized when inventory items are used.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items (other current assets) in both the government-wide and fund financial statements. The consumption
method is used to account for prepaids such as postage, while equipment is recognized as an expenditure when
the equipment is received.
J. JOINT VENTURE
Joint venture represents the City's equity interest calculated in accordance with the agreement for the Brushy
Creek 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
of its participating share of the joint venture's change in net position.
K. CAPITAL ASSETS
Capital assets are stated at historical cost, except for intangible right-to-use lease assets. Maintenance and
repairs are charged to operations as incurred. Improvements 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
equipment with a useful life of at least five(5)years and $50,000 and greater with a useful life of at least ten (10)
years for other asset categories. Donated capital assets, donated works of art, and similar items are reported at
acquisition value rather than fair value. Intangible assets follow the same capitalization policies as tangible
capital assets and are reported with tangible assets in the appropriate capital asset class.
Public domain capital assets (infrastructure) have been capitalized. Infrastructure consists of certain
improvements other than buildings, including roads, curbing, gutters, streets and sidewalks, and stormwater
systems.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
In the government-wide statements, depreciation and amortization of plant, equipment, and the right-to-use
leased equipment classified by functional components is provided 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
Right-to-use leased assets 5- 7 years
When capital assets are retired or otherwise disposed of,a gain or loss on disposal of assets is recognized.
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 and amortization 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.
A loan from the State Infrastructure Bank has been received to fund transportation improvements. The loan will
be repaid from revenues of the Round Rock Transportation and Economic Development Corporation.
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.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Lease principal and interest expenditures on lease liabilities, are recognized based on specific accounting rules
applicable, when payment is due. General capital asset acquisitions, including entering into contracts giving the
City right-to-use leased assets, are reported as expenditures while issuance of financing through leases are
reported as other financing sources in governmental funds.
M. ACCRUED BENEFIT OBLIGATIONS
Unpaid Compensated Absences
Regular full-time employees and regular part-time employees who are normally scheduled to work at least
twenty(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.
• Payment of the compensation is probable.
• The amount can be reasonably estimated.
All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. A
liability for these amounts is reported in governmental funds only if they have matured, 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 &
Associates, the City's third-party actuary, in compliance with GASB Statement No. 75,Accounting and Financial
Reporting 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 liability is obtained from TMRS through a report prepared for the City by TMRS' consulting
actuary,Gabriel Roeder Smith&Company, in compliance with GASB Statement No.75.
The governmental funds typically used to liquidate other post-employment benefit liabilities are the General,
Hotel-Motel Occupancy Tax, Hotel-Motel Occupancy Venue Tax,and Library and Recreational Funds.
N. TRANSACTIONS BETWEEN FUNDS
Short-term 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
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
operations of both governmental and proprietary funds. Nonrecurring or non-routine transfers of equity
between funds -for 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. Exceptions to this rule are cost reimbursement transactions between the enterprise fund and various
other functions 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.
0. NET POSITION
Net position 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/amortization, 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 either externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments or imposed by law through state statute.
Certain bond proceeds, as well as resources set aside for their 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.
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 but are neither restricted or committed. Assignments are made 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
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 operating 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 assets 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.
• OPEB and pension contributions after measurement date - These contributions are deferred and
recognized in the following fiscal year.
• Difference 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 OPEB liabilities.
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized
as an inflow of resources(revenue) until that time. Reported as a deferred inflow for the City both for OPEB and
pension are the difference 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 and wastewater tap-in fees (connection fees) represent reimbursement of the costs incurred to perform
the connection of the respective utilities. These fees are recorded as operating revenue at the time of service.
The impact fee substantially exceeds the cost of connection to the water and wastewater system and is therefore
viewed as a contribution. Effective with the implementation of GASB Statement No.33, impact fees are recorded
as contributions in the Enterprise Fund.
The City adopted a roadway impact fee ordinance in March 2019. Roadway impact fees are intended to recover
the incremental 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
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 preparation 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
OPEB liability are based on assumptions about events far into the future. Accordingly, actual results could differ
from those estimates.
U. PENSIONS
For purposes of measuring the net pension liability, pension related deferred outflows and inflows of resources,
and pension 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 employee, which is when contributions are legally due. Benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Information regarding the City's 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.
V. NEW AND FUTURE FINANCIAL REPORTING REQUIREMENTS
The GASB has issued the following statements which became effective for fiscal year 2022, as well as statements
that are effective in future fiscal years, but the City implemented early.
GASB Statement No. 87, "Leases"—The objective of this Statement is to better 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 2020"— The objectives of this Statement are to enhance comparability in
accounting and financial reporting and to improve the consistency of authoritative literature by addressing
practice issues that have been identified during implementation and application of certain GASB Statements.
GASB 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 of an IBOR due to
global 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)ceased to exist at the end of 2021.
GASB Statement 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.
61
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
84, and a supersession of GASB Statement No.32"—The primary objectives of this Statement are to (1) increase
consistency and comparability related to the reporting of fiduciary component units in circumstances in which a
potential component unit does not have a governing board and the primary government performs the duties
that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain
defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and
employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary
component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and
comparability of the accounting 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.
The GASB has issued the following statements which will become effective for fiscal year 2023:
GASB Statement No. 96, "Subscription-Based Information Technology Arrangements"- This Statement provides
guidance on the accounting and financial reporting for subscription-based information technology
arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2)
establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding
subscription liability, (3) provides the capitalization criteria for outlays other than subscription payments,
including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent
relevant, the standards for SBITAs are based on the standards established in Statement No. 87,Leases,as
amended.
GASB Statement No 99, "Omnibus 2022"-The objectives of this Statement are to enhance comparability in
accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1)
practice issues that have been identified during implementation and application of certain GASB Statements and
(2)accounting and financial reporting for financial guarantees.
GASB Statement No. 100, "Accounting for Changes and Error Corrections"- an Amendment of GASB Statement
No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements
for accounting changes and error corrections to provide more understandable, reliable, relevant,consistent, and
comparable information for making decisions or assessing accountability.Statement No. 100 is effective October
1, 2023 for the City and will be implemented early, if applicable.
GASB Statement No. 101, "Compensated Absences"-The objective of this Statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences.That objective is achieved by aligning the recognition and measurement guidance under
a unified model and by amending certain previously required disclosures. This Statement amends the existing
requirement to disclose the gross increases and decreases in a liability for compensated absences to allow
governments to disclose only the net change in the liability (as long as they identify it as a net change). In
addition, governments are no longer required to disclose which governmental funds typically have been used to
liquidate the liability for compensated absences.
62
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
11. STEWARDSHIP,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.
63
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 $ 111,335,701 $ 194,460 $ 111,530,161
Licenses, permits and fees 1,690,650 - 1,690,650
Charges for services 3,909,000 737,000 4,646,000
Fines and forfeitures 970,000 - 970,000
Intergovernmental 2,496,529 - 2,496,529
Investment and other 4,749,700 - 4,749,700
Total revenues 125,151,580 931,460 126,083,040
Expenditures-
Current-
General government 28,189,073 (437,014) 27,752,059
Public safety 65,505,537 239,189 65,744,726
Public works 22,191,496 (4,329,457) 17,862,039
Culture and recreation 17,434,446 1,158,742 18,593,188
Total expenditures 133,320,552 (3,368,540) 129,952,012
Excess(deficiency)of revenues
over expenditures (8,168,972) 4,300,000 (3,868,972)
Other financing sources(uses) -
Transfers in 6,455,000 - 6,455,000
Transfers out (13,500,000) (5,461,811) (18,961,811)
Total other financing sources(uses) (7,045,000) (5,461,811) (12,506,811)
Net change in fund balances $ (15,213,972) $ (1,161,811) $ (16,375,783)
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, 2022, 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 $ 46,538,000
Self-Financed Construction Fund 2,181,000
Debt-Financed Capital Projects Fund 6,259,000
Nonmajor Funds
Special revenue funds $ 279,000
64
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 and therefore are not reported in the funds."The details of this difference are as follows:
Bonds and certificates payable- public placement $ 331,335,000
Plus:Issuance premium (amortized against interest expense) 18,195,210
Less: Issuance discount(amortized against interest expense) (36,237)
Bonds and certificates payable- private placement 35,740,000
State infrastructure bank loan 27,000,000
Notes payable 2,132,040
Right-to-use lease payable 402,579
Net pension liability 22,840,714
Compensated absences 9,770,326
Total OPEB liability 19,841,461
Net adjustment to reduce fund balance-total governmental funds
to arrive at net position-governmental activities $ 467,221,093
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE
STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation of net changes in fund balances — total governmental funds to changes in net position of
governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains that "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/amortization expense."The details of this difference are as follows:
Capital outlay $ 86,316,796
Depreciation/amortization expense (36,923,148)
Net adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ 49,393,648
Another element of the reconciliation states that"The net effect of various miscellaneous transactions involving
capital assets(i.e.sales,disposals,and donations) is to increase net position." The details of this difference are as
follows:
Donations $ 8,672,222
Reclassifications,disposals,and transfers (132,152)
Net adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ 8,540,070
65
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Another element of the reconciliation states that "The issuance of long-term debt (i.e., 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 $ (129,315,000)
Premiums received on issuance of debt- public placement (2,642,581)
Remove premiums on refunded bonds 4,902,783
Issuance of State Infrastructure Bank Loan (27,000,000)
Debt payments/refundings- public placement 88,590,000
Debt payments/refundings- private placement 4,590,000
Deferred amount on refunding - public placement (1,469,215)
Notes payments 2,037,029
Net adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ (60,306,984)
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 $ 12,180,273
Increase in deferred outflows related to pensions 3,566,724
Increase in deferred inflows related to pensions (10,714,033)
Net adjustment to increase net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ 5,032,964
Increase in total OPEB liability $ (1,890,053)
Increase in deferred outflows related to OPEB 749,346
Increase in deferred inflows related to OPEB (43S,S33)
Net adjustment to decrease net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ (1,576,240)
Change in compensated absences $ (437,906)
Amortization of bond premium/discount- public placement 1,148,648
Change in accrued interest- public placement 52,560
Change in accrued interest- private placement 8,841
Amortization of deferred amount on refunding - public placement (242,778)
Amortization of deferred amount on refunding - private placement (48,369)
Net adjustment to increase net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ 480,996
66
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
IV. DETAILED NOTES ON ALL FUNDS
A. CASH AND INVESTMENTS
Cash and investments at September 30, 2022, reconciled to the statement of net position amounts for cash and
cash equivalents and investments is as follows:
Cash in banks $ 34,483,593
Investments 492,175,630
Total cash and investments $ 526,659,223
Statement of net position presentation:
Cash and cash equivalents $ 37,826,995
Investments 287,721,460
Restricted assets-
Cash and cash equivalents 59,445,120
Investments 141,665,648
Total cash and cash equivalents and investments $ 526,659,223
At September 30,2022,the carrying amount of deposits was a debit balance of$34,483,593, including $1,826,190
in outstanding checks, and the respective bank balances totaled $36,309,783.The City's bank balances were fully
insured or collateralized with securities held by the City's agent in the City's name and/or letters of credit.
Investments
All investments 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.
Weighted
Average
Carrying Fair Maturity
Amount Value (Days)
U.S.Government Securities $ 300,067,003 $ 300,067,003 278
Municipal Bonds 14,997,6S3 14,997,653 4
Certificates of Deposit 114,322,455 114,322,455 40
State Investment Pools 62,788,519 62,788,519 3
$ 492,175,630 $ 492,175,630
Portfolio weighted average maturity 325
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 for identical assets; level 2 inputs are significant other observable inputs; and Level 3 inputs are
significant unobservable inputs. As of September 30, 2022, the City has the recurring fair value measurements
for U.S. Government securities of $300,067,003 valued using quoted prices for similar assets in active markets
(level 2 inputs).
67
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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, 2022,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, 2022,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 2022 were in the aforementioned categories.
68
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Local Government Investment Pools
As of September 30, 2022, 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 $55,245,568 invested in TexPool,
$201,831 invested in TexSTAR,and $7,341,120 in TexasDAILY at September 30, 2022.
TexPool is a public funds investment pool created by the Texas Treasury Safekeeping Trust Company to provide
a safe environment 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
cooperative 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-administrator 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 assets 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 and TexasDAILY Select of the Texas Range Investment Program (Program).
Texas Range Investment Program was established by the Common Investment Contract in conformity with
Chapters 791 (Interlocal Cooperation Act) and 2256 (PFIA) of the Texas Government Code. An elected
Advisory Board is responsible for the overall management of the Program, including formation and
implementation of its investment and operating policies. The Program's investment advisor and
administrator is PFM Asset Management, LLC.
TexasDAILY is a money market portfolio with daily liquidity that is rated AAAmmf by Fitch. 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.
TexasDAILY Select invests in the full range of PFIA permitted investments and is rated AAAmmf by Fitch.
TexasDAILY Select's investment objectives are to earn the highest income consistent with preserving principal
and maintaining liquidity,and to maintain a stable 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.
69
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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
established 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 the 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 2021 tax roll. The tax rate, based on total taxable
assessed valuation of $17,670,723,796 was $0.397000 on each $100 valuation and was allocated to the General
Fund and Debt Service Fund at$0.264862 and $0.132138, respectively.
Property taxes receivable as of September 30,2022,were as follows:
General Debt Service
Fund Fund Total
Current year levy $ 123,669 $ 60,911 $ 184,580
Prior years'levies 406,896 319,500 726,396
530,565 380,411 910,976
Less-allowance for uncollectible taxes (5,306) (3,804) (9,110)
$ 525,259 $ 376,607 $ 901,866
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 30,2022,were as follows:
Receivable Fund Payable Fund Receivable Payable
General Fund Debt Service Fund $ 7,357 $ 7,357
Governmental Funds $ 7,357 $ 7,357
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.
70
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Governmental Funds Transfers In Transfers Out
General Fund -
Water and Wastewater Fund $ 5,355,000 $ -
Self-Financed Construction Fund - 18,961,811
RRTEDC Fund 1,100,000 -
6,455,000 18,961,811
Debt Service Fund -
RRTEDC Fund 1,367,437 -
Nonmajor Governmental Funds 6,051,871 -
7,419,308 -
RRTEDC Fund -
General Fund - 1,100,000
Debt Service Fund - 1,367,437
Self-Financed Construction Fund 182,709 -
Debt-Financed Capital Projects Fund 23,296,131 11,300,548
23,478,840 13,767,98S
Debt-Financed Capital Projects Fund -
Self-Financed Construction Fund - 573,700
RRTEDC Fund 11,300,548 23,296,131
11,300,548 23,869,831
Self-Financed Construction Fund -
General Fund 18,961,811 -
RRTEDC Fund - 182,709
Debt-Financed Capital Projects Fund 573,700 -
Nonmajor Governmental Funds 990,820
20,526,331 182,709
Other Governmental Funds-
Debt Service Fund - 6,051,871
Self-Financed Construction Fund - 990,820
RRTEDC Fund - -
Nonmajor Governmental Funds 856,938 856,938
856,938 7,899,629
Subtotal of Governmental Funds 70,036,965 64,681,965
Proprietary Funds
Water and Wastewater Fund -
General Fund - 5,355,000
- 5,355,000
Total Transfers $ 70,036,965 $ 70,036,965
71
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 30,2022
Total City's Interest
ASSETS
Cash and cash equivalents $ 2,816,431 $ 742,004
Accounts receivable 1,269,398 20,872
Restricted investments 132,727,984 13,292,185
Capital assets 192,603,142 65,082,269
Total assets 329,416,955 79,137,330
DEFERRED OUTFLOWS OF RESOURCES 11,824,408 4,607,620
LIABILITIES
Accounts payable 11,110,592 3,171,407
Retainage payable 433,748 127,685
Due to partner cities 656,964 322,962
Current portion of bonds payable 10,370,000 2,290,000
Accrued bond interest payable 1,285,979 323,127
Total current liabilities 23,857,283 6,235,181
Noncurrent portion of bonds payable 269,459,742 52,676,S82
Total liabilities 293,317,02E 58,911,763
NET POSITION $ 47,924,338 $ 24,833,187
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For the Year Ended September 30,2022
Total City's Interest
Operating revenues $ 3,463,968 $ 656,136
Interest expense (7,146,279) (1,710,717)
Other operating expenses (7,532,183) (2,079,731)
Other income(expense) (2,916,529) (563,807)
Changes in Net Position (14,131,023) (3,698,119)
Net position,October 1,2021 35,066,495 17,090,044
Contribution of capital, net 26,988,866 11,441,262
Net position,September 30, 2022 $ 47,924,338 $ 24,833,187
72
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
E. CAPITAL ASSETS
Capital asset activity for the year ended September 30,2022,was as follows:
October 1,
2021 Additions/ Retirements/ September 30,
(restated) Completions Adjustments 2022
Governmental Activities:
Capital assets not being depreciated/amortized:
Land $ 114,072,773 $ 2,515,109 $ $ 116,587,882
Construction in progress 43,024,603 83,584,793 (33,776,326) 92,833,070
Total capital assets not being depreciated/
amortized 157,097,376 86,099,902 (33,776,326) 209,420,952
Capital assets being depreciated/amortized:
Buildings and improvements 987,211,249 35,094,844 (125,000) 1,022,181,093
Equipment 89,892,372 7,570,598 (3,428,447) 94,034,523
Right-to-use lease assets(1) 546,644 - 546,644
Total capital assets being depreciated/
amortized 1,077,650,265 42,665,442 (3,553,447) 1,116,762,260
Less accumulated depreciation/amortization for:
Buildings and improvements 468,364,246 29,149,125 (115,625) 497,397,746
Equipment 69,501,041 7,774,023 (3,305,670) 73,969,394
Right-to-use lease assets 144,231 144,231
Total accumulated depreciation/amortization 537,865,287 37,067,379 (3,421,295) 571,511,371
Total capital assets being depreciated/
amortized,net 539,784,978 5,598,063 (132,152) 545,250,889
Governmental activities capital assets,net $ 696,882,354 $ 91,697,965 $ (33,908,478) $ 754,671,841
Business-Type Activities:
Capital assets not being depreciated/amortized:
Land $ 8,483,349 $ 2,432,663 $ - $ 10,916,012
Construction in progress 23,250,023 21,931,815 (32,744,630) 12,437,208
Total capital assets not being depreciated/
amortized 31,733,372 24,364,478 (32,744,630) 23,353,220
Capital assets being depreciated/amortized:
Buildings and improvements 581,134,786 46,284,930 627,419,716
Equipment 17,573,775 4,928,653 (804,633) 21,697,795
Right-to-use lease assets(1) 214,462 - 214,462
Total capital assets being depreciated/
amortized 598,923,023 51,213,583 (804,633) 649,331,973
Less accumulated depreciation/amortization for:
Building and improvements 239,106,817 20,435,707 259,542,524
Equipment 13,407,762 2,286,710 (804,633) 14,889,839
Right-to-use lease assets - 80,762 80,762
Total accumulated depreciation/amortization 252,514,579 22,803,179 (804,633) 274,513,125
Total capital assets being depreciated/
amortized,net 346,408,444 28,410,404 374,818,848
Business-type activities capital assets,net $ 378,141,816 $ 52,774,882 $ (32,744,630) $ 398,172,068
(1)The implementation of GASB Statement No.87, Leases, resulted in restatement of the beginning capital asset
balances for reporting the right-to-use asset associated with leases, effective fiscal year 2022 for the City.
73
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Depreciation/amortization expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 3,021,281
Public safety 5,525,761
Public works 21,498,386
Culture and recreation 7,021,951
Total depreciation/amortization expense-governmental activities $ 37,067,379
Business-Type Activities:
Water and wastewater utility $ 22,240,383
Golf course 562,796
Total depreciation/amortization expense- business-type activities $ 22,803,179
Net Investment in Capital Assets
Detailed reconciliation of net investment in capital assets on the government-wide Statement of Net Position for
September 30,2022,follows:
Governmental Business-Type
Activities Activities Total
Net investment in capital assets:
Total capital assets(net of
accumulated depreciation/amortization) $ 754,671,841 $ 398,172,068 $ 1,152,843,909
Plus capital-related deferred
outflows of resources 623,944 3,694,158 4,318,102
Less capital-related long-term debt (414,768,592) (68,669,984) (483,438,576)
Plus unspent bond proceeds 61,778,334 61,778,334
Net investment in capital assets
(net of related debt) $ 402,305,527 $ 333,196,242 $ 735,501,769
74
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
F. LONG-TERM DEBT
The following is a summary of long-term debt transactions, including current portion, of the City for the year
ended September 30, 2022:
Balance
October 1, Balance
2021 Refundings/ September 30, Due within
(restated) Additions Retirements 2022 one year
Governmental Activities
Public Placement
General obligation bonds $ 126,580,000 $ 100,845,000 $ (68,965,000) $ 158,460,000 $ 11,040,000
Certificates of obligation 111,190,000 26,570,000 (17,410,000) 120,350,000 4,140,000
Hotel tax revenue bonds 8,065,000 - (690,000) 7,375,000 655,000
Sales tax revenue bonds 42,005,000 - (1,030,000) 40,975,000 1,940,000
Limited tax notes 2,770,000 1,900,000 (495,000) 4,175,000 860,000
Plus deferred amount:
For issuance premium 21,615,176 2,642,581 (6,062,547) 18,195,210 1,349,865
For issuance discount (47,353) - 11,116 (36,237) 11,116
Total Public Placement 312,177,823 131,957,581 (94,641,431) 349,493,973 19,995,981
Private Placement
General obligation bonds 4,975,000 - (1,270,000) 3,705,000 1,285,000
Certificates of obligation 29,060,000 (1,110,000) 27,950,000 1,135,000
Limited tax notes 3,630,000 (890,000) 2,740,000 900,000
Sales tax revenue bonds 2,665,000 (1,320,000) 1,345,000 1,345,000
Total Private Placement 40,330,000 - (4,590,000) 35,740,000 4,665,000
State Infrastructure Bank Loan - 27,000,000 27,000,000 -
Notes payable 4,169,069 - (2,037,029) 2,132,040 1,531,203
Leases(1) 546,644 - (144,065) 402,579 143,564
Compensated absences 9,332,420 6,690,627 (6,252,721) 9,770,326 6,546,119
Total governmental activities 366,555,956 165,648,208 (107,665,246) 424,538,918 32,881,867
Business-Type Activities
Public Placement
Revenue bonds 66,865,000 (3,475,000) 63,390,000 3,530,000
Plus deferred amount:
For issuance premium 5,477,981 (331,410) 5,146,571 331,408
Leases(1) 214,462 - (81,051) 133,411 80,337
Compensated absences 731,841 644,078 (578,154) 797,765 630,234
Total Public Placement 73,289,284 644,078 (4,465,615) 69,467,747 4,571,979
Total business-type activities 73,289,284 644,078 (4,465,615) 69,467,747 4,571,979
Total primary government $ 439,845,240 $ 166,292,286 $ (112,130,861) $ 494,006,665 $ 37,453,846
(1) The implementation of GASB Statement No. 87, Leases, resulted in restatement of the beginning debt
balances for reporting the lease payable associated with leases,effective fiscal year 2022 for the City.
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 Wastewater Fund is responsible for liquidating the liability for compensated absences in the
business-type activities.
75
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Long-term debt at September 30, 2022, 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% $ 940,000 $ $
$66,885,000 2014 GO bonds due in annual installments
of$-0-to$4,790,000 through 2039;interest at 3.0%to 5.0% 10,085,000
$32,465,000 2015 refunding bonds due in annual installments
of$-0-to$3,445,000 through 2032;interest at 4.0%to 5.0% 7,640,000
$6,995,000 2016 refunding bonds due in annual installments
of$-0-to$1,755,000 through 2032;interest at 2.0%to 4.0% 3,885,000
$28,585,000 2017 GO bonds due in annual installments
of$-0-to$1,945,000 through 2042;interest at 3.0%to 5.0% 26,980,000
$12,210,000 2019 refunding bonds due in annual installments
of$1,330,000 to$1,775,000 through 2027;interest at 3.0%to 5.0% 8,085,000
$6,980,000 2020 refunding bonds due in annual installments
of$375,000 to$2,005,000 through 2027;interest at 1.21% - 3,705,000
$79,860,000 2022 Refunding bonds due in annual installments
of$190,000 to$6,705,000 through 2039;interest at 1.16%to 2.97% 79,860,000 -
$20,985,000 2022 GO bonds due in annual installments
of$280,000 to$1,310,000 through 2047;interest at 3.63%to 5.00% 20,985,000 -
Total General Obligation Bonds 158,460,000 3,705,000
Certificates of Obligation:
$27,270,000 2014 Combination tax and limited revenue certificates
of obligation due in installments of$175,000 to$1,700,000
through 2039;interest at 2.0%to 4.0% 6,570,000
$6,915,000 2018 Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$510,000
through 2038;interest at 3.0%to 5.0% 6,370,000
$27,250,000 2019 Combination tax and revenue certificates of
obligation due in installments of$-0-to$1,740,000
through 2044;interest at 2.0%to 5.0% 25,825,000 -
$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% - 27,950,000
$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% 27,460,000 -
$13,745,000 2021 B Combination tax and limited revenue certificates
of obligation due in installments of$-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
$26,570,000 2022 Combination tax and limited revenue certificates
of obligation due in installments of$350,000 to$1,675,000
through 2047;interest at 4.0%to 5.0% 26,570,000
Total Certificates of Obligation 120,350,000 27,950,000
76
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Business-
Governmental Governmental Type
Activities Activities Activities
Public Private Public
Placement Placement Placement
Limited Tax Notes:
$4,500,000 2020 Limited tax notes due in annual installments of
$870,000 to$925,000 through 2025;interest at 1.15% $ - $ 2,740,000 $
$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% 2,275,000 -
$1,900,000 2022 Limited tax notes due in annual installments of
$325,000 to$425,000 through 2027;interest at 5.0% 1,900,000
Total Limited Tax Notes 4,175,000 2,740,000
Hotel Tax Revenue Bonds:
$4,455,000 2016 refunding bonds due in annual installments
of$30,000 to$630,000 through 2024;interest at 2.0%to 4.0% 1,815,000 - -
$5,560,000 2021 refunding bonds due in annual installments
of$75,000 to$515,000 through 2037;interest at 4.0% 5,560,000 - -
Total Hotel Tax Revenue Bonds 7,375,000 - -
Sales Tax Revenue Bonds:
$10,140,000 2017 refunding bonds due in annual installments
of$1.32 to$1.92 million through 2023;interest at 1.78% - 1,345,000
$21,310,000 2019 taxable bonds due in annual installments of$-0-
to$1.22 million through 2044;interest at 2.15%to 3.68% 20,280,000 -
$20,695,000 2021 taxable bonds due in annual installments
of$-0-to$1,010,000 through 2046;interest at 0.45%to 3.25% 20,695,000 -
Total Sales Tax Revenue Bonds 40,975,000 1,345,000
Utility System Revenue Bonds:
$8,000,000 2014 bonds due in annual installments of
$-0-to$585,000 through 2034;interest at 2.0%to 4.0% - - 5,630,000
$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% 34,185,000
$32,785,000 2017 refunding bonds due in annual installments of
$360,000 to$4,265,000 through 2039;interest at 3.0%to 5.0% 23,575,000
Total Utility System Revenue Bonds 63,390,000
Issuance premium 18,195,210 5,146,571
Issuance discount (36,237) -
State Infrastructure Bank Loan:
$27,000,000 loan due in annual installments of$0 to$1,865,000
through 2042;interest at 2.1% 27,000,000
Notes payable:
$8,881,044 notes due in semi-annual installments including interest
ranging from 1.7183%-2.9474%due in 2024.The notes payable
is funded with general revenue sources. 2,132,040 -
Leases 402,579 133,411
Compensated absences 9,770,326 797,765
Total Primary Government Debt $ 388,798,918 $ 35,740,000 $ 69,467,747
77
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
The annual requirements to amortize bonds, certificates of obligation, loan and lease debt at September 30, 2022,
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
2023 $ 15,180,000 $ 10,018,611 $ 25,198,611 $ 2,420,000 $ 550,725 $ 2,970,725
2024 13,725,000 8,973,880 22,698,880 3,285,000 514,634 3,799,634
2025 13,190,000 8,388,057 21,578,057 2,395,000 463,005 2,858,005
2026 13,530,000 7,860,099 21,390,099 3,415,000 421,875 3,836,875
2027 14,010,000 7,373,151 21,383,151 3,490,000 362,284 3,852,284
2028-2032 65,065,000 30,029,481 95,094,481 16,650,000 917,399 17,567,399
2033-2037 63,495,000 19,339,652 82,834,652 - - -
2038-2042 52,675,000 9,206,324 61,881,324 - -
2043-2047 27,940,000 2,448,100 30,388,100 - - -
$ 278,810,000 $ 103,637,355 $ 382,447,355 $ 31,655,000 $ 3,229,922 $ 34,884,922
Year Ending Limited Tax Notes
Sept.30, Public Placement Private Placement
Principal Interest Total Principal Interest Total
2023 $ 860,000 $ 195,275 $ 1,055,275 $ 900,000 $ 31,510 $ 931,510
2024 920,000 136,250 1,056,2S0 915,000 21,160 936,160
2025 965,000 95,800 1,060,800 925,000 10,638 935,638
2026 1,005,000 53,350 1,058,350 - - -
2027 425,000 21,250 446,250 - - -
$ 4,175,000 $ 501,925 $ 4,676,925 $ 2,740,000 $ 63,308 $ 2,803,308
Year Ending
Sept.30, Hotel Tax Revenue Bonds- Public Placement
Principal Interest Total
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 335,000 193,900 528,900
2028-2032 1,870,000 755,000 2,625,000
2033-2037 2,295,000 339,500 2,634,500
2038 515,000 10,300 525,300
$ 7,375,000 $ 2,270,300 $ 9,645,300
78
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Year Ending Sales Tax Revenue Bonds
Sept.30, Public Placement Private Placement
Principal Interest Total Principal Interest Total
2023 $ 1,940,000 $ 1,119,083 $ 3,OS9,083 $ 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 2,075,000 982,664 3,OS7,664 - - -
2028-2032 8,940,000 4,210,846 13,150,846 - - -
2033-2037 7,425,000 3,167,566 10,592,566 - - -
3038-2042 8,690,000 1,908,069 10,598,069 - - -
2043-2047 5,895,000 431,421 6,326,421 - - -
$ 40,975,000 $ 14,995,738 $ 55,970,738 $ 1,345,000 $ 23,941 $ 1,368,941
Year Ending
Sept.30, State Infrastructure Bank Loan
Principal Interest Total
2023 $ $ - $
2024 - -
2025 -
2026 1,340,000 567,000 1,907,000
2027 1,365,000 538,860 1,903,860
2028-2032 7,275,000 2,251,725 9,526,725
2033-2037 8,070,000 1,454,985 9,524,985
2038-2042 8,950,000 571,620 9,521,620
$ 27,000,000 $ 5,384,190 $ 32,384,190
Year Ending
Sept.30, Notes Payable
Principal Interest Total
2023 $ 1,531,203 $ 36,703 $ 1,567,906
2024 600,837 8,675 609,512
$ 2,132,040 $ 45,378 $ 2,177,418
Business-Type Activities:
Year Ending
Sept.30, Utility System Revenue Bonds
Principal Interest Total
2023 $ 3,530,000 $ 2,426,631 $ 5,956,631
2024 3,685,000 2,263,181 5,948,181
2025 3,860,000 2,092,331 5,952,331
2026 4,045,000 1,908,950 5,953,950
2027 3,350,000 1,715,100 5,065,100
2028-2032 17,915,000 7,173,744 25,088,744
2033-2037 18,645,000 4,106,163 22,751,163
'2038-2039 8,360,000 536,563 8,896,563
$ 63,390,000 $ 22,222,663 $ 85,612,663
79
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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,
2022,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. The full faith and credit of the City as well as the City's ad valorem taxing authority back general
obligation bonds.
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 23,200,000 -
Police&Fire 11/5/2013 27,400,000 27,400,000 -
$ 123,600,000 $ 123,600,000 $ -
"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 wastewater systems. The City is required by bond ordinances to pledge the net revenues of the
waterworks and wastewater 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 wastewater 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 2022, net revenues available for debt service were 4.75 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 $503,177 at September 30, 2022, is reported in the
governmental funds. Bond covenants require that the hotel tax revenues be irrevocably pledged by providing
80
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 $876,266 at September 30, 2022. This
amount is in compliance with the requirements contained in the bond's Indenture Agreement. This agreement
requires 1/2 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.
The debt service fund for the sales tax revenue bonds, aggregating $1,655,815 at September 30, 2022, is reported in
the governmental funds. Bond covenants require that RRTEDC's share of the sales tax is pledged as security for the
bonds. RRTEDC provides monthly installments that accumulate to the semi-annual principal and interest
requirements as they become due.
A reserve fund 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.
2022 Refunding/Issuances
In March 2022, the City issued $79,860,000 General Obligation Refunding Bonds, Taxable Series 2022. The debt was
issued to refund $48,390,000 of Series 2014 General Obligation Bonds, $15,495,000 of Series 2014 Combination Tax
and Limited Revenue Certificates of Obligation, and $11,760,000 of Series 2015 General Obligation Refunding Bonds.
The bonds were issued with an interest rate of 1.156%to 2.966%and mature through 2039. 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.
The refunding reduced the total debt service payments over the next 20 years by $10,161,561 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$8,228,594.
In May of 2022, the City issued $20,98S,000 of General Obligation Bonds, Series 2022.The bonds were issued with an
interest rate of 3.625% to 5.000% and mature through 2047. Proceeds from the sale will be used for City library
facilities and professional services including fiscal, engineering, architectural and legal fees, and other such costs
incurred in connection therewith including the costs of issuing the Bonds.
Additionally, in May 2022, the City issued $26,570,000 of Combination Tax and Limited Revenue Certificates of
Obligation, Series 2022. The certificates were issued with an interest rate of 4.000% to 5.000% and mature through
2047. Proceeds from the sale will be used for constructing, improving, extending, expanding, upgrading and/or
developing streets, roads, bridges, sidewalks, intersections, traffic signalization and other transportation improvement
projects including related waterworks, wastewater and drainage improvements, signage, landscaping, irrigation,
purchasing any necessary rights-of-way and other related transportation costs and professional services including
fiscal, engineering, architectural and legal fees, and other such costs incurred in connection therewith including the
costs of issuing the Certificates.
81
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
The City also issued $1,900,000 Limited Tax Notes, Series 2022 in May 2022. The notes were issued with an interest
rate of 5.000% and mature through 2027. The proceeds will be used to purchase City vehicles and professional
services including fiscal, engineering, architectural and legal fees, and other such costs incurred in connection
therewith including the costs of issuing the Notes.
G. LEASES PAYABLE
For the year ended September 30, 2022, the financial statements include the adoption of GASB Statement No. 87,
"Leases". The primary objective of this statement is to enhance the relevance and consistency of information about
the City's leasing activities. This statement establishes a single model for lease accounting based on the prinicple that
leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a
lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources.
The City is a lessee for noncancellable leases of equipment. The City recognizes a lease liability and an intangible
right-to-use lease asset (lease asset) in the government-wide and proprietary financial statements. The City
recognizes lease liabilities with an initial,individual value of$5,000 or more.
The commitments below represent leases that were effective prior to implementation on October 1, 2021, and the
estimated useful life represents the months remaining on those leases at implementation.
82
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Lease Accumulated Lease
Asset Value Amortization Liability
TAVCO Services, Inc., lease for the use of equipment with required $ 8,214 $ 3,606 $ 3,614
monthly fixed payments of$404 including interest at 0.5820%,with
three(3)extension options, each for 12 months. The lease liability was
initially recorded for$8,215 with an estimated useful life of 27 months.
PNC Equipment Finance, LLC, lease for the use of equipment with 96,861 36,399 60,599
required monthly fixed payments of$3,036 including interest at
0.2280%. The lease liability was initially recorded for$96,861 with an
estimated useful life of 32 months.
PNC Equipment Finance, LLC, lease for the use of equipment with 16,276 6,103 10,183
required monthly fixed payments of$510 including interest at
0.2280%.The lease liability was initially recorded for$16,276 with an
estimated useful life of 32 months.
PNC Equipment Finance LLC, lease for the use of equipment with 97,218 36,457 60,823
required monthly fixed payments of$3,047 including interest at
0.2280%. The lease liability was initially recorded for$126,979 with an
estimated useful life of 32 months.
United Site Services of Texas, Inc., lease for the use of equipment with 126,979 44,816 82,265
required monthly fixed payments of$3,750 including interest at
0.2980%.The lease liability was initially recorded for$126,979 with an
estimated useful life of 34 months.
Pitney Bowes Global Financial Services LLC, lease for the use of 43,654 14,967 28,724
equipment with required monthly fixed payments of$1,253 including
interest at 0.2980%.The lease liability was initially recorded for$43,654
with an estimated useful life of 35 months.
Dahill Office Technology Corporation, lease for the use of equipment 371,904 82,645 289,782
with required monthly fixed payments of$12,000 including interest at
0.4350%.The lease liability was initially recorded for$371,904 with an
estimated useful life of 54 months.
Totals, Right-to-use Leased Equipment $ 761,106 $ 224,993 $ 535,990
Year Ending Governmental Activities
Sept.30, Principal Interest Total
2023 $ 143,564 $ 1,352 $ 144,916
2024 134,283 809 135,092
2025 83,065 378 83,443
2026 41,667 53 41,720
$ 402,579 $ 2,592 $ 405,171
83
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Year Ending
Sept.30, Business-Type Activities
Principal Interest Total
2023 $ 80,337 $ 224 $ 80,561
2024 53,074 46 53,120
$ 133,411 $ 270 $ 133,681
H. ACCRUED COMPENSATED ABSENCES
Changes to accrued compensated absences for the year ended September 30,2022,were as follows:
Governmental Business-Type
Activities Activities
Balance,October 1,2021 $ 9,332,420 $ 731,841
Additions 6,690,627 644,078
Reductions (6,252,721) (578,154)
Balance, September 30,2022 $ 9,770,326 $ 797,765
Accrued compensated absences due within one year were $6,546,119 for governmental activities and $630,234 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 for the
governmental activities and Water and Wastewater Fund program revenues for the business-type activities.
I. RESTRICTED ASSETS
The following summarizes restricted assets by purpose at September 30, 2022:
Cash Property Sales Accrued
and Cash Taxes Tax Interest
Equivalents Investments Receivable Receivable Receivable
Governmental Activities:
Debt Service Fund $ 4,666,339 $ $ 376,607 $ - $
Restricted by debt covenants-
Round Rock Transportation
and Economic Development
Corporation Fund 33,187,978 75,508,566 2,300,469 319,592
Debt-Financed Capital
Projects Fund 16,758,224 46,067,244 - 26,210
Other Governmental funds 1,098,454 7,970,927 - 1,230
Total Governmental Activities $ 55,710,995 $ 129,546,737 $ 376,607 $ 2,300,469 $ 347,032
84
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Cash Accrued
and Cash Interest
Equivalents Investments Receivable
Business-Type Activities:
Water and Wastewater Fund-
Impact fees $ 894,982 $ 6,494,452 $
Construction 775,091 5,624,459
Customer deposits 2,025,472 -
Revenue bond debt service 38,850
Accrued interest receivable - - 38,496
Total Business-Type Activities $ 3,734,395 $ 12,118,911 $ 38,496
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 $10,547 and Travis County was paid $881 for the
fiscal year ended September 30,2022.
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.
Water Supply Agreements
On May 2, 1978, 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 rate 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, 2022, the City's cost under this contract
was$557,760.
On September 12, 1991, the City entered into the "Replacement Water Supply Agreement" with the BRA, wherein it
received the right to purchase 8,134 acre-feet of water per year from Stillhouse Hollow Lake. Rights for an additional
10,000 acre-feet of water were acquired in the November 13, 1996, "System Water Supply Agreement". These
agreements were 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 September 30, 2022,the City's cost under this contract was $1,505,122.
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. For the fiscal year ended September 30, 2022, the City's cost under these contracts was
$1,825,345.
85
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Future annual charges under the Water Supply Agreements will be based upon the system rate periodically set by the
BRA.
Regional Wastewater 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 Operation of the Brushy Creek Regional Wastewater System.
The BCRWWS 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 81.96%, of
total treatment capacity. The BCRWWS East Plant is currently undergoing a 10 MGD expansion project of which 1.2
MGD will be allocated to the City of Round Rock. Construction is ongoing and 70% complete as of September 30,
2022.The expansion is estimated for completion in 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, 2022, the City of Round Rock's allocated share of
operation and maintenance expenses was 69.05%.
Other
The City is a defendant in a number of lawsuits arising principally from claims against the City for alleged improper
actions by City employees. Total damages claimed are substantial; however, it has been the City's experience that
such 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, 2022,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 4S7
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(g),the
plan assets are in custodial accounts for the exclusive benefit of the plans' participants and beneficiaries. In
86
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 primary jobs, 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, and
sales tax rebates and incentives on an individual basis. Each agreement was negotiated under Chapter 380 of the
Texas Local Government Code. Under a 380 economic development 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 rebate and incentive programs for the year ended
September 30, 2022, are summarized below. No tax abatements were made under Chapter 312, Property
Redevelopment and Tax Abatement Act,of the Texas Local Government Code.
Rebate&Incentive Programs Amount
Hotel Occupancy Tax $ 4,870,722
Property Tax 1,483,095
Sales Tax 12,247,410
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 and numerous other coverages. 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 and other claims, including the costs of
defense, as is necessary. The Pool makes available to the 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 no insurance settlements exceeding Pool coverage
for any of the past three years.
Self-Funded Health Insurance Fund
The City is self-insured for medical and dental claims. The self-insurance program is maintained in the Self-Funded
Health Insurance 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, commercial insurance covers claims in excess of an aggregate amount for the City up to $1,000,000 per
plan year. Settled 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.
87
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
An analysis of claims activities is presented below:
Claims and
Beginning Changes in Actual Claim Ending
Fiscal Year Liability Estimates Payments Liability
2020 $ 585,451 $ 9,899,294 $ 10,296,152 $ 188,593
2021 188,593 11,652,169 10,987,608 853,154
2022 853,154 12,960,388 13,298,843 514,699
C. EMPLOYEE RETIREMENT PLAN
Plan Description
The City participates as one of 901 plans in the defined benefit cash-balance plan administered by TMRS. TMRS is a
statewide public retirement plan created by the State of Texas and administered in accordance with the Texas
Government Code, Title 8, Subtitle G (TMRS Act) as an agent multiple-employer retirement system for employees of
Texas participating cities. The TMRS Act places the general administration and management of the System with a
six-member, Governor-appointed Board of Trustees; however, TMRS does not receive any funding from the State of
Texas. TMRS issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at
www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of
the City,within the options available in the state statutes governing TMRS.
At retirement, the member's benefit is calculated based on the sum of the member's contributions with interest, the
city-financed monetary credits with interest, and their age at retirement and other actuarial factors. The retiring
member may select one of seven monthly benefit payment options. Members may also choose to receive a portion
of their benefit as a lump sum distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot
exceed 75%of the total member contributions and interest.
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
88
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Employees Covered by Benefit Terms
At the December 31, 2021, valuation and measurement date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 427
Inactive employees entitled to but not yet receiving benefits 497
Active employees 971
Total 1,895
Contributions
Member contribution rates in TMRS are either 5%, 6%, or 7% of the member's total compensation, and the city
matching ratios are either 1:1, 1.5:1 or 2:1, both as adopted by the governing body of the city. Under the state law
governing TMRS, the contribution rate for each city is determined annually by the actuary, using the entry age
normal actuarial cost method. The City's contribution rate is based on the liabilities created from the benefit plan
options selected by the City and any changes in benefits or actual experience over time.
Employees for the City were required to contribute 7% of their total compensation during the fiscal year. The City
elected to contribute for calendar years 2021 and 2022 as follows:
2021 2022
Total Retirement Rate 15.84% 15.94%
Supplemental Death Benefit 0.14 0.14
Total Combined Contribution 15.98% 16.08%
The City's contributions to TMRS for the year ended September 30, 2022, were $12,729,994 and were equal to the
required contributions.
Net Pension Liability
The City's net pension liability(NPL)was measured as of December 31,2021, and the total pension liability(TPL) used
to calculate the NPL was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The TPL in the December 31, 2021,actuarial valuation was determined using the following actuarial assumptions:
Inflation 2.50%per year
Overall payroll growth 2.75%per year, adjusted down for population declines, if any
Investment rate of return 6.75%, net of pension plan investment expense, including inflation
Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB (10)
mortality tables with the Public Safety table used for males and the General Employee table used for females.
Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of
Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational
basis by Scale UMP to account for future mortality improvements. For disabled annuitants,the same mortality tables
for healthy retirees is used with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a
3.5% and 3.0% minimum mortality rate is applied, for males and females respectively, to reflect the impairment for
younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to
account for future mortality improvements subject to the floor.
89
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2022
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over
the four-year period from December 31, 2014, to December 31, 2018. They were adopted in 2019 and first used in
the December 31, 2019, actuarial valuation. The post-retirement mortality assumption for annuity purchase rates is
based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013.
Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the
production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block method
in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation. The target allocation and best estimates of real rates of
return for each major asset class in fiscal year 2022 are summarized in the table that follows:
Long-Term Expected
Target Real Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity 35.0% 7.55%
Core Fixed Income 6.0% 2.00%
Non-Core Fixed Income 20.0% 5.68%
Other Public and Private Markets 12.0% 7.22%
Real Estate 12.0% 6.85%
Hedge Funds 5.0% 5.35%
Private Equity 10.0% 10.00%
Total 100.0%
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 member and employer contributions will be made at the rates specified in statute. Based on that
assumption, the pension plan's fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the TPL.
90
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2022
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, 2020 $ 338,234,042 $ 298,437,465 $ 39,796,577
Changes for the year:
Service cost 13,320,453 - 13,320,453
Interest 22,912,308 22,912,308
Difference between expected and actual
experience 5,600,114 - 5,600,114
Contributions-employer - 11,712,945 (11,712,945)
Contributions-employee 5,177,300 (5,177,300)
Net investment income 38,962,631 (38,962,631)
Benefit payments, including refunds of
employee contributions (10,905,346) (10,905,346) -
Administrative expense (180,015) 180,015
Other - 1,233 (1,233)
Net changes 30,927,529 44,768,748 (13,841,219)
Balance at December 31,2021 $ 369,161,571 $ 343,206,213 $ 25,955,358
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-point
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 $ 84,639,022 $ 25,955,358 $ (21,727,264)
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.
91
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2022, the City recognized a decrease to pension expense of $5,032,964. At
September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience $ 8,382,685 $ -
Difference between projected and actual investment earnings - 19,970,381
Changes in actuarial assumptions used to determine pension liability 288,636 -
Pension contributions after measurement date 9,895,471 -
Total $ 18,566,792 $ 19,970,381
Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date
of$9,895,471 will be recognized as a reduction of the NPL for the measurement year ending December 31,2022 (i.e.,
recognized in the City's financial statements September 30, 2023). Other amounts reported as deferred outflows and
inflows of resources related to pensions will be recognized in pension expense as follows:
Measurement Net Deferred
Year Ending Outflows(Inflows)
December 31, of Resources
2022 $ (1,274,404)
2023 (5,876,708)
2024 (2,250,545)
2025 (2,488,467)
2026 591,064
Thereafter -
Total $ (11,299,060)
D. OTHER POST-EMPLOYMENT BENEFITS
The City participates in funding two OPEB 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 health 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 under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year,
to be effective the following January 1. The 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 fully cover the cost of the retirees on a stand-alone basis,thus generating a retiree medical liability.Once
a retiree or dependent becomes eligible for Medicare at age 65, he/she is no longer eligible for benefits. Also,
retirees are no longer eligible if they have insurance or are eligible for insurance through another employer. This
significantly limits the number 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.
92
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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, 2021, valuation and measurement date, the following employees were covered by the benefit
terms:
SDBF:
Inactive employees currently receiving benefits 349
Inactive employees entitled to but not yet receiving benefits 153
Active employees 971
Total 1,473
Self-Funded Health Insurance:
Inactive employees(retirees) 43
Active employees 950
Total 993
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 2022, 2021, and 2020 were $17,967 $16,388, and $14,889,
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 2022 and 2021, and 0.02%for the year ended
2020.
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.
93
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 their 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.
Total OPEB Liability
For the fiscal year ended September 30, 2022, the City recognized a total OPEB liability of$22,547,115, $3,360,455 of
which was for the SDBF, and $19,186,660 for the Self-Funded Health Insurance plan. Both were measured as of
December 31,2021,and were determined by an actuarial valuation as of that date.
Actuarial Assumptions
The total OPEB liability in the December 31, 2021, actuarial valuation was determined using the following actuarial
assumptions:
SDBF Self-Funded Health Insurance
Inflation 2.5% 2.5%
Salary increases 3.5%to 11.5%including inflation 3.0%
Discount rate** 1.84% 1.84%
Healthcare cost trend rate None Getzen model(7.58%to 4.44%)
Retirees'share of benefit- Varies based on plan elected and
related costs $0 years of service
Actuarial cost method*** Entry Age Normal Actuarial Cost Method Entry Age Normal Cost Method
Mortality For service retirees: 2019 Municipal Mortality rates were based on the
Retirees of Texas Mortality Tables. The PUB-2010 General Table projected using
rates are projected on a fully generational MP-2021. The mortality table was
basis with scale UMP. switched to the PUB-2010 as this is more
tailored to public entities.
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 of 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.
94
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
** Because this plan is considered an unfunded trust under GASB Statement No. 75, the relevant discount rate for
calculating the total OPEB liability is based on the Fidelity Index's "20-Year Municipal GO AA Index" rate as of
December 31,2021.
***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 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 isjust 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 OPEB Liability
Self-Funded
Health
SDBF Insurance Total
Balance at December 31, 2020 $ 3,090,138 $ 17,309,190 $ 20,399,328
Changes for the year:
Service cost 177,507 1,743,411 1,920,918
Interest 63,208 337,146 400,354
Differences between expected and actual
experience (49,160) (756,790) (805,950)
Changes in assumptions or other inputs 115,743 1,414,747 1,530,490
Benefit payments (36,981) (861,044) (898,025)
Net changes 270,317 1,877,470 2,147,787
Balance at December 31, 2021 $ 3,360,455 $ 19,186,660 $ 22,547,115
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following tables present the total OPEB liability of the City, calculated using the discount rate (1.84% both for
SDBF and 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
0.84% 1.84% 2.84%
SDBF $ 4,215,401 $ 3,360,45S $ 2,715,967
Self-Funded Health Insurance 20,187,319 19,186,661 18,184,728
9S
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2022
The following table presents the total OPEB liability of the City, calculated using the healthcare trend rate of 7.58%to
4.44%,as well as what the City's total OPEB liability would be if it were calculated using a healthcare trend rate that is
1-percentage-point lower (6.58% to 3.44%) or 1-percentage-point higher (8.58% to S.44%) than the current
healthcare trend rate:
Healthcare
1% Decrease Trend Rate 1% Increase
Self-Funded Health Insurance $ 17,283,424 $ 19,186,661 $ 21,381,586
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended September 30, 2022, the City recognized total OPEB expense of $1,791,181, $321,043 of
which was for the SDBF, and $1,470,138 for the Self-Funded Health Insurance plan. At September 30, 2022, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Self- Self-
Funded Funded
Health Health
SDBF Insurance Total SDBF Insurance Total
Difference between
expected and actual
economic experience $ - $ - $ - $ 113,458 $ 765,399 $ 878,857
Changes in assumptions
and other inputs 743,389 1,825,724 2,569,113 72,813 249,948 322,761
OPEB contributions after
measurement date 29,335 544,128 573,463 - - -
Total $ 772,724 $ 2,369,852 $ 3,142,576 $ 186,271 $ 1,015,347 $ 1,201,618
Deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date of
$573,463 will be recognized as a reduction of the total OPEB for the measurement year ending December 31, 2022,
(i.e., recognized in the City's financial statements September 30, 2023). Other amounts reported as deferred outflows
and inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Net Deferred Outflows(Inflows)
of Resources
Measurement Self-Funded
Year Ending Health
December 31, SDBF Insurance
2022 $ 120,092 $ 221,961
2023 120,092 173,886
2024 104,261 162,717
2025 114,246 101,536
2026 78,352 101,536
Thereafter 20,075 48,741
Total $ 557,118 $ 810,377
96
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 third
1-year renewal period beginning on January 1, 2022. 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.
97
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CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2022
(UNAUDITED)
Texas Municipal Retirement System (TMRS) Plan
Schedule of Changes in the Net Pension Liability and Related Ratios
Measurement period ended December 31, 2014 2015 2016
Total Pension Liability
Service cost $ 8,066,254 $ 8,990,916 $ 9,609,823
Interest(on the Total 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 assumptions - (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 Liability- Beginning 189,013,034 20S,128,282 221,236,523
Total Pension Liability- Ending (a) $ 205,128,282 $ 221,236,523 $ 240,909,799
Plan Fiduciary 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 income 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 expense (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 factors noted to disclose.
2) No significant methods and assumptions to disclose.
3) Schedule will be built out to 10 years.
See Independent Auditors'Report.
100
2017 2018 2019 2020 2021
$ 10,430,650 $ 11,165,127 $ 12,125,301 $ 13,315,518 $ 13,320,453
16,360,878 17,747,611 19,262,844 21,130,343 22,912,308
671,908 773,706 4,071,075 2,225,761 5,600,114
- - 608,160 - -
(7,483,495) (7,089,473) (8,347,798) (9,643,873) (10,905,346)
19,979,941 22,596,971 27,719,582 27,027,749 30,927,529
240,909,799 260,889,740 283,486,711 311,206,293 338,234,042
$ 260,889,740 $ 283,486,711 $ 311,206,293 $ 338,234,042 $ 369,161,571
$ 9,138,705 $ 9,753,253 $ 10,471,204 $ 11,366,407 $ 11,712,945
4,113,985 4,406,956 4,793,245 5,184,834 5,177,300
27,187,574 (6,861,490) 35,438,150 20,602,217 38,962,631
(7,483,495) (7,089,473) (8,347,798) (9,643,873) (10,905,346)
(140,808) (132,486) (199,970) (133,140) (180,015)
(7,136) (6,921) (6,007) (5,193) 1,233
32,808,825 69,839 42,148,824 27,371,252 44,768,748
196,038,725 228,847,550 228,917,389 271,066,213 298,437,465
228,847,550 228,917,389 271,066,213 298,437,46S 343,206,213
$ 32,042,190 $ 54,569,322 $ 40,140,080 $ 39,796,577 $ 25,955,358
87.72% 80.75% 87.10% 88.23% 92.97%
$ 58,533,388 $ 62,831,331 $ 68,196,291 $ 74,016,219 $ 73,961,425
54.74% 86.85% 58.86% 53.77% 35.09%
101
CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2022
(UNAUDITED)
Texas Municipal Retirement System (TMRS) Plan
Schedule of Contributions
Fiscal year ended September 30, 2015 2016 2017
Actuarially Determined Contribution $ 8,077,742 $ 8,507,987 $ 8,897,294
Contributions in relation to the
actuarially determined contribution 8,193,478 8,739,633 9,059,953
Contribution deficiency(excess) $ (115,736) $ (231,646) $ (162,659)
Covered payroll $ 51,159,783 $ 54,924,766 $ 57,346,696
Contributions as a percentage of
covered payroll 16.02% 15.91% 15.80%
Notes to Schedule of Contributions
Valuation Date
Actuarially determined 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 Amortization Period 23 years(longest amortization ladder)
Asset Valuation Method 10-year smoothed fair value; 12%soft corridor
Inflation 2.5%
Salary Increases 3.5%to 11.5%including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that are specific to the City's
plan of benefits. Last updated for the 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 LIMP.
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 LIMP.
Other Information
There were no benefit changes during the year. Schedule will be built out to ten years.
See Independent Auditors' Report.
102
2018 2019 2020 2021 2022
$ 9,582,199 $ 10,313,421 $ 10,806,103 $ 11,542,600 $ 12,658,167
9,618,245 10,377,168 10,635,298 11,865,291 12,729,994
$ (36,046) $ (63,747) $ 170,805 $ (322,691) $ (71,827)
$ 61,743,107 $ 67,091,746 $ 68,196,291 $ 74,016,219 $ 73,961,425
15.57% 15.46% 15.60% 16.03% 17.21%
103
CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2022
(UNAUDITED)
Schedule of Changes in the Total OPEB Liability and Related Ratios
Supplemental Death Benefit Fund
Measurement period ended December 31, 2017 2018 2019 2020 2021
Service Cost $ 87,800 $ 106,813 $ 102,294 $ 148,032 $ 177,507
Interest 63,146 66,031 72,369 69,727 63,208
Changes in assumptions or other inputs 176,033 (160,017) 438,301 461,065 11 S,743
Differences between expected and actual
experience - (41,694) (36,755) (42,783) (49,160)
Benefit payments (11,707) (12,566) (13,639) (14,803) (36,981)
Net change in total OPEB liability 315,272 (41,433) 562,570 621,238 270,317
Total OPEB liability- beginning 1,632,491 1,947,763 1,906,330 2,468,900 3,090,138
Total OPEB liability-ending $ 1,947,763 $ 1,906,330 $ 2,468,900 $ 3,090,138 $ 3,360,455
Covered payroll $ 58,533,338 $ 62,831,331 $ 68,196,291 $ 74,016,219 $ 73,961,425
Total OPEB liability as a percentage of
covered payroll 3.33% 3.03% 3.62% 4.17% 4.54%
Self-Funded Health Insurance
Measurement period ended December 31, 2017 2018 2019 2020 2021
Service Cost $ 837,881 $ 886,296 $ 919,177 $ 1,405,816 $ 1,743,411
Interest 477,714 498,983 532,239 472,779 337,146
Changes in assumptions or other inputs 798,106 (643,572) 882,735 - 1,414,747
Differences between expected and actual
experience (114,595) (196,828) - (756,790)
Benefit payments (431,570) (465,610) (597,720) (711,164) (861,044)
Net change in total OPEB liability 1,567,536 276,097 1,S39,603 1,167,431 1,877,470
Total OPEB liability- beginning 12,758,523 14,326,059 14,602,156 16,141,759 17,309,190
Total OPEB liability-ending $ 14,326,059 $ 14,602,156 $ 16,141,759 $ 17,309,190 $ 19,186,660
Covered payroll $ 58,533,338 $ 62,831,331 $ 68,196,291 $ 74,016,219 $ 73,171,576
Total OPEB liability as a percentage of
covered payroll 24.5% 23.2% 23.7% 23.4% 26.2%
Notes to Schedule:
1) No assets are accumulated 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 be built out to 10 years.
See Independent Auditors' Report.
104
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 380
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.
105
CITY OF ROUND ROCK, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2022
Community Hotel-Motel
Development Hotel-Motel Occupancy Innovation and
Block Grant Occupancy Tax Venue Tax Development
ASSETS
Cash and cash equivalents $ - $ 678,954 $ 1,054,461 $ 179,845
Investments - 4,926,842 7,628,857 1,305,044
Receivables-
Accounts and other - 874,032 224,390 -
Accrued interest - 19,922 25,403 15,877
Grants 33,912 - - -
Restricted assets-
Cash and cash equivalents - 194,092 - 179,623
Investments 1,408,421 - 1,303,432
Accrued interest receivable - 1,230 - -
Total assets $ 33,912 $ 8,103,493 $ 8,933,111 $ 2,983,821
LIABILITIES
AND FUND BALANCES
Liabilities-
Accounts payable $ 33,912 $ 60,692 $ 49,749 $
Accrued payroll - 17,647 51,284
Unearned revenue - - -Total liabilities 33,912 78,339 101,033
Fund balances-
Restricted -authorized construction - 1,587,323 -
Restricted - hotel-motel tax 6,437,831 8,832,078
Restricted - public safety - -
Restricted -general government -
Committed -general government - - -
Committed -capital projects funds - -
Committed -culture and recreation 1,483,055
Assigned -culture and recreation - - 1,500,766
Total fund balances - 8,025,154 8,832,078 2,983,821
Total liabilities and
fund balances $ 33,912 $ 8,103,493 $ 8,933,111 $ 2,983,821
106
Public Total Nonmajor
Library and Education& Roadway Governmental
Recreational Public Safety Government Impact Fees Funds
$ 890,044 $ 108,987 $ 177,768 $ - $ 3,090,059
6,447,740 790,856 1,289,975 - 22,389,314
- - - - 1,098,422
22,247 2,697 4,401 - 90,547
- - - - 33,912
- 724,739 1,098,454
- 5,259,074 7,970,927
- - - - 1,230
$ 7,360,031 $ 902,540 $ 1,472,144 $ 5,983,813 $ 35,772,865
$ 47,057 $ 15,494 $ - $ - $ 206,904
13,197 - - - 82,128
1,946,937 - - 5,977,896 7,924,833
2,007,191 15,494 - 5,977,896 8,213,865
- - - 5,917 1,593,240
- - 15,269,909
887,046 - - 887,046
- - 1,472,144 - 1,472,144
1,077,519 - - - 1,077,519
1,923,472 - - 1,923,472
- - - 1,483,055
2,351,849 - - - 3,852,615
5,352,840 887,046 1,472,144 5,917 27,559,000
$ 7,360,031 $ 902,540 $ 1,472,144 $ 5,983,813 $ 35,772,865
107
CITY OF ROUND ROCK,TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2022
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 - 1,864,711
Fines and forfeitures - - -
Intergovernmental 621,961 - 8,529,438
Hotel occupancy tax - 7,082,184 3,367,108 4,678,899
Contributions - - -
Investment and other - 87,346 (58,371) (44,112)
Total revenues 621,961 7,169,530 5,173,448 13,164,225
Expenditures-
Current-
General government 468,688 - - 8,498,036
Culture and recreation - 2,048,465 2,131,765 -
Capital projects 153,273 641,470 - -
Total expenditures 621,961 2,689,935 2,131,765 8,498,036
Excess(deficiency) of
revenues over expenditures - 4,479,595 3,041,683 4,666,189
Other financing sources(uses)-
Transfers in 181,938 - -
Transfers out (1,651,967) (1,290,938) (3,456,724)
Total other financing
sources(uses) - (1,470,029) (1,290,938) (3,456,724)
Net change in fund balances - 3,009,566 1,750,745 1,209,465
Fund balances,October 1,2021 - 5,015,588 7,081,333 1,774,356
Fund balances,September 30,2022 $ - $ 8,025,154 $ 8,832,078 $ 2,983,821
108
Total
Public Nonmajor
Library and Education& Roadway Governmental
Recreational Public Safety Government Impact Fees Funds
$ $ $ 183,753 $ $ 183,753
339,502 - - - 339,502
756,281 - 2,620,992
- 237,859 - 237,859
- - 9,151,399
- - 15,128,191
124,563 - 1,500,000 1,624,S63
(68,683) 1,952 (13,882) - (95,750)
1,151,663 239,811 169,871 1,500,000 29,190,509
134,920 88,661 131,457 - 9,321,762
1,261,682 - - - 5,441,912
154,354 - - - 949,097
1,550,956 88,661 131,457 - 15,712,771
(399,293) 151,150 38,414 1,500,000 13,477,738
675,000 - 856,938
- - - (1,500,000) (7,899,629)
675,000 - - (1,500,000) (7,042,691)
275,707 151,150 38,414 6,435,047
5,077,133 735,896 1,433,730 5,917 21,123,953
$ 5,352,840 $ 887,046 $ 1,472,144 $ 5,917 $ 27,559,000
109
110
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
GENERAL, DEBT SERVICE,
AND NONMAJOR SPECIAL REVENUE FUNDS
111
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2022
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2021
Variance-
Budgeted Amounts Positive 2021
Original Final Actual (Negative) Actual
Revenues-
Taxes and franchise -
Property tax $ 46,304,059 $ 46,304,059 $ 46,826,726 $ 522,667 $ 43,431,612
Penalty and interest 89,000 89,000 93,749 4,749 90,091
Sales tax 57,407,642 57,602,102 57,602,102 - 49,201,861
Franchise 6,845,000 6,845,000 7,246,074 401,074 6,617,294
Bingo tax 30,000 30,000 52,897 22,897 50,538
Mixed drink tax 660,000 660,000 967,945 307,945 817,088
Total taxes and franchise 111,335,701 111,530,161 112,789,493 1,259,332 100,208,484
Licenses, permits and fees-
Building permits 645,000 645,000 1,460,043 815,043 1,014,677
Other permits 47,400 47,400 29,297 (18,103) 39,670
Fees 998,250 998,250 1,130,500 132,250 1,348,496
Total licenses, permits,and fees 1,690,650 1,690,650 2,619,840 929,190 2,402,843
Charges for services-
Trash collection fees 1,216,900 1,216,900 1,292,162 7S,262 1,292,994
Swimming pool fees 902,100 1,309,841 1,462,896 153,055 1,366,839
Recreation program fees 1,706,000 2,035,259 2,389,551 354,292 2,142,331
Filing and reproduction fees 9,000 9,000 21,140 12,140 10,949
Other 75,000 75,000 143,046 68,046 67,184
Total charges for services 3,909,000 4,646,000 5,308,795 662,795 4,880,297
Fines and forfeitures 970,000 970,000 1,143,039 173,039 1,027,327
Grants 2,496,529 2,496,529 4,177,384 1,680,855 3,103,417
Investment and other-
Investment income 500,000 500,000 (751,552) (1,251,552) 625,132
Other 4,249,700 4,249,700 2,445,733 (1,803,967) 4,601,522
Total investment and other 4,749,700 4,749,700 1,694,181 (3,055,519) 5,226,654
Total revenues 125,151,580 126,083,040 127,732,732 1,649,692 116,849,022
112
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL(CONTINUED)
YEAR ENDED SEPTEMBER 30, 2022
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2021
Variance-
Budgeted Amounts Positive 2021
Original Final Actual (Negative) Actual
Expenditures-
Current-
General government
Executive-
Personnel services $ 16,774,577 $ 1S,S70,897 $ 15,136,168 $ 434,729 $ 14,089,331
Operations 10,091,827 10,725,547 9,727,878 997,669 9,419,139
Capital projects 75,000 169,589 49,671 119,918 3,759
Total executive 26,941,404 26,466,033 24,913,717 1,552,316 23,S12,229
Judicial -
Personnel services 1,159,638 1,197,995 1,073,984 124,011 972,497
Operations 88,031 88,031 68,168 19,863 62,292
Total judicial 1,247,669 1,286,026 1,142,152 143,874 1,034,789
Total general government 28,189,073 27,752,059 26,055,869 1,696,190 24,547,018
Public safety
Police-
Personnel services 32,327,228 32,451,552 32,220,833 230,719 30,021,401
Operations 4,114,492 4,226,492 4,157,072 69,420 3,542,335
Police-capital projects 502,209 502,209 47,985 454,224 11,310
Total police 36,943,929 37,180,253 36,425,890 754,363 33,57S,046
Fire-
Personnel services 24,835,708 25,339,873 25,339,589 284 23,923,015
Operations 2,921,330 2,455,030 2,454,961 69 1,947,397
Capital outlay 804,570 769,570 132,878 636,692 -
Total fire 28,561,608 28,564,473 27,927,428 637,045 25,870,412
Total public safety 65,505,537 65,744,726 64,353,318 1,391,408 59,445,458
(CONTINUED)
113
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2022
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2021
Variance-
Budgeted Amounts Positive 2021
Original Final Actual (Negative) Actual
Expenditures-
Current-
Public works
Administration -
Personnel services $ 5,198,426 $ 5,211,582 $ 5,211,576 $ 6 $ 4,887,707
Operations 3,568,679 3,571,524 3,571,520 4 3,198,330
Capital outlay - 224,388 224,388 - -
Total administration 8,767,105 9,007,494 9,007,484 10 8,086,037
Streets-
Personnel services 3,207,360 3,306,345 2,674,078 632,267 2,628,372
Operations 8,022,105 3,348,782 3,180,676 168,106 2,904,679
Capital outlay 253,000 253,000 177,721 75,279 124,731
Total streets 11,482,465 6,908,127 6,032,475 875,652 5,657,782
Maintenance shop-
Personnel services 1,526,028 1,530,520 1,509,554 20,966 1,466,071
Operations 395,898 360,888 274,015 86,873 200,021
Capital outlay 20,000 55,010 55,007 3 6,493
Total maintenance shop 1,941,926 1,946,418 1,838,576 107,842 1,672,585
Total public works 22,191,496 17,862,039 16,878,535 983,504 15,416,404
114
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL(CONTINUED)
YEAR ENDED SEPTEMBER 30,2022
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2021
Variance-
Budgeted Amounts Positive 2021
Original Final Actual (Negative) Actual
Expenditures-
Current-
Culture and recreation
Library-
Personnel services $ 2,728,683 $ 2,879,041 $ 2,878,137 $ 904 $ 2,598,651
Operations 768,118 755,118 754,623 495 691,976
Total library 3,496,801 3,634,159 3,632,760 1,399 3,290,627
Parks and recreation-
Personnel services 9,871,353 10,336,737 10,336,413 324 8,830,738
Operations 3,884,292 4,421,252 4,420,858 394 3,682,420
Culture-Parks-capital projects 182,000 201,040 185,765 15,275 57,707
Total parks and recreation 13,937,645 14,959,029 14,943,036 15,993 12,570,865
Total culture and recreation 17,434,446 18,593,188 18,575,796 17,392 15,861,492
Total expenditures 133,320,552 129,952,012 125,863,518 4,088,494 115,270,372
Excess(deficiency)of
revenues over expenditures (8,168,972) (3,868,972) 1,869,214 5,738,186 1,578,650
Other financing sources(uses)-
Transfers in 6,455,000 6,455,000 6,455,000 - 6,257,264
Transfers out (13,500,000) (18,961,811) (18,961,811) - (8,359,371)
Total other financing sources(uses) (7,045,000) (12,506,811) (12,506,811) - (2,102,107)
Net change in fund balances $ (15,213,972) $ (16,375,783) (10,637,597) $ 5,738,186 (523,457)
Fund balance, October 1,2021 59,290,439 S9,813,896
Fund balance,September 30,2022 $ 48,652,842 $ 59,290,439
115
CITY OF ROUND ROCK, TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Taxes and franchise $ 24,99S,S40 $ 24,99S,S40 $ 23,393,952 $ (1,601,588)
Investment and other 50,000 50,000 107,138 57,138
Total revenues 25,045,540 25,045,540 23,501,090 (1,544,450)
Expenditures-
Debt service-
Principal retirement 1,320,000 19,650,222 19,650,222 -
Interest and fiscal charges 47,437 12,133,701 12,133,701 -
Issuance costs 100,000 778,091 778,091 -
Total expenditures 1,467,437 32,562,014 32,562,014 -
Excess(deficiency) of revenues
over expenditures 23,578,103 (7,516,474) (9,060,924) (1,544,450)
Other financing sources(uses) -
Issuance of refunding bonds - 79,860,000 79,860,000
Payment to refunded bond escrow agent - (79,078,568) (79,078,568) -
Transfers in 2,693,638 2,693,638 7,419,308 4,725,670
Total other financing sources(uses) 2,693,638 3,475,070 8,200,740 4,725,670
Net change in fund balances $ 26,271,741 $ (4,041,404) (860,184) $ 3,181,220
Fund balance, October 1, 2021 5,519,166
Fund balance, September 30,2022 $ 4,658,982
116
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Intergovernmental $ 621,961 $ 621,961 $ 621,961 $ -
Total revenues 621,961 621,961 621,961 -
Expenditures-
Current-
General government-
Operations 468,688 468,688 468,688
Capital projects 1 S3,273 153,273 153,273
Total expenditures 621,961 621,961 621,961
Net change in fund balances $ - $ - - $ -
Fund balance,October 1,2021
Fund balance, September 30,2022 $
117
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Hotel occupancy tax $ 4,500,000 $ 4,500,000 $ 7,082,184 $ 2,582,184
Investment and other 37,400 37,400 87,346 49,946
Total revenues 4,537,400 4,537,400 7,169,530 2,632,130
Expenditures-
Current-
Culture and recreation-
Personnel services 588,787 613,787 557,280 56,507
Operations 1,738,376 1,839,004 1,491,185 347,819
Capital projects 70,000 641,470 641,470 -
Total expenditures 2,397,163 3,094,261 2,689,935 404,326
Excess(deficiency)of revenues over
expenditures 2,140,237 1,443,139 4,479,595 3,036,456
Other financing sources(uses)-
Transfers in - - 181,938 181,938
Transfers out (1,651,967) (1,651,967) (1,651,967) -
Total other financing sources(uses) (1,651,967) (1,651,967) (1,470,029) 181,938
Net change in fund balances $ 488,270 $ (208,828) 3,009,566 $ 3,218,394
Fund balance, October 1,2021 5,015,588
Fund balance, September 30,2022 $ 8,025,154
118
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Charges for services $ 1,325,000 $ 1,32S,000 $ 1,864,711 $ 539,711
Hotel occupancy tax 2,538,380 2,538,380 3,367,108 828,728
Investment and other 81,000 81,000 (58,371) (139,371)
Total revenues 3,944,380 3,944,380 5,173,448 1,229,068
Expenditures-
Current-
Culture and recreation-
Personnel services 1,440,475 1,256,475 1,242,950 13,525
Operations 725,796 909,796 888,815 20,981
Total expenditures 2,166,271 2,166,271 2,131,765 34,506
Excess(deficiency)of revenues over
expenditures 1,778,109 1,778,109 3,041,683 1,263,574
Other financing sources (uses) -
Transfers out (1,359,625) (1,359,625) (1,290,938) 68,687
Total other financing sources(uses) (1,359,625) (1,359,625) (1,290,938) 68,687
Net change in fund balances $ 418,484 $ 418,484 1,750,745 $ 1,332,261
Fund balance, October 1,2021 7,081,333
Fund balance, September 30, 2022 $ 8,832,078
119
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Intergovernmental $ - $ 8,244,980 $ 8,529,438 $ 284,458
Hotel occupancy tax - 4,963,357 4,678,899 (284,458)
Investment and other - (44,112) (44,112)
Total revenues - 13,164,225 13,164,225
Expenditures-
Current-
General Government-
Operations 8,498,036 8,498,036 -
Total expenditures 8,498,036 8,498,036 -
Excess(deficiency)of revenues over
expenditures 4,666,189 4,666,189 -
Other financing sources (uses) -
Transfers out (3,456,724) (3,456,724)
Total other financing sources(uses) - (3,456,724) (3,4S6,724)
Net change in fund balances $ - $ 1,209,465 1,209,465 $
Fund balance, October 1, 2021 1,774,356
Fund balance, September 30, 2022 $ 2,983,821
120
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Licenses, permits and fees $ 128,150 $ 132,150 $ 339,502 $ 207,3S2
Charges for services 712,200 712,200 756,281 44,081
Contributions 2,000 2,000 124,563 122,563
Investment and other 38,122 38,122 (68,683) (106,80S)
Total revenues 880,472 884,472 1,151,663 267,191
Expenditures-
Current-
General government-
Operations 131,150 135,150 134,920 230
Total general government 131,150 135,150 134,920 230
Culture and recreation-
Personnel services 632,988 610,988 572,154 38,834
Operations 744,926 766,926 689,528 77,398
Capital projects 841,500 1,011,372 154,354 857,018
Total culture and recreation 2,219,414 2,389,286 1,416,036 973,250
Total expenditures 2,350,564 2,524,436 1,550,956 973,480
Excess(deficiency)of revenues over
expenditures (1,470,092) (1,639,964) (399,293) 1,240,671
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 $ (795,092) $ (964,964) 275,707 $ 1,240,671
Fund balance, October 1, 2021 5,077,133
Fund balance, September 30,2022 $ 5,352,840
121
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Fines and forfeitures $ 119,500 $ 119,500 $ 237,859 $ 118,359
Investment and other 26,000 26,000 1,952 (24,048)
Total revenues 145,500 145,500 239,811 94,311
Expenditures-
Current-
General government-
Operations 691,489 691,489 88,661 602,828
Total expenditures 691,489 691,489 88,661 602,828
Net change in fund balances $ (545,989) $ (545,989) 151,150 $ 697,139
Fund balance, October 1,2021 735,896
Fund balance, September 30, 2022 $ 887,046
122
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Taxes and franchise $ 220,000 $ 220,000 $ 183,753 $ (36,247)
Investment and other 11,000 11,000 (13,882) (24,882)
Total revenues 231,000 231,000 169,871 (61,129)
Expenditures-
Current-
General Government-
Operations 130,500 133,163 131,457 1,706
Total expenditures 130,500 133,163 131,457 1,706
Net change in fund balances $ 100,500 $ 97,837 38,414 $ (59,423)
Fund balance, October 1, 2021 1,433,730
Fund balance, September 30, 2022 $ 1,472,144
123
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, 2022
Variance-
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-
Contributions $ 1,000,000 $ 1,S00,000 $ 1,500,000 $ -
Total revenues 1,000,000 1,500,000 1,500,000 -
Expenditures -
Other financing sources(uses) -
Transfers out (1,000,000) (1,500,000) (1,500,000)
Total other financing sources(uses) (1,000,000) (1,500,000) (1,500,000)
Net change in fund balances $ - $ - - $ -
Fund balance,October 1, 2021 5,917
Fund balance,September 30, 2022 $ 5,917
124
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 126
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 136
local revenue sources,the property and sales tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the 146
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 155
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 157
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.
125
CITY OF ROUND ROCK,TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2013 2014 2015 2016
Governmental activities-
Net investment in capital assets $ 295,777,997 $ 303,977,353 $ 299,730,557 $ 310,185,706
Restricted 42,970,091 43,974,370 48,019,726 51,813,118
Unrestricted 74,833,175 44,713,408 53,355,360 52,451,939
Total governmental activities net position $ 413,581,263 $ 392,665,131 $ 401,105,643 $ 414,450,763
Business-type activities-
Net investment in capital assets $ 214,178,908 $ 221,062,599 $ 228,866,895 $ 234,981,264
Restricted 6,868,062 7,764,750 19,215,972 15,275,659
Unrestricted 116,650,981 114,901,064 110,519,279 126,490,054
Total business-type activities net position $ 337,697,951 $ 343,728,413 $ 358,602,146 $ 376,746,977
Primary government-
Net investment in capital assets $ 509,956,905 $ 525,039,952 $ 528,597,452 $ 545,166,970
Restricted 49,838,153 51,739,120 67,235,698 67,088,777
Unrestricted 191,484,156 159,614,472 163,874,639 178,941,993
Total primary government net position $ 751,279,214 $ 736,393,544 $ 759,707,789 $ 791,197,740
Source:Annual Comprehensive Financial Reports
Notes:The City implemented GASB Statement No.68 in 2015.As a result, net position for 2014 was restated.The City
implemented GASB Statement No.75 in 2018.As a result, net position for 2017 was restated.
126
2017 2018 2019 2020 2021 2022
$ 356,586,425 $ 373,007,353 $ 400,490,136 $ 442,969,195 $ 432,348,991 $ 402,305,527
48,954,352 48,357,161 44,334,128 23,471,S49 92,772,878 132,351,451
29,054,168 28,585,838 28,918,565 33,581,912 13,728,700 68,809,157
$ 434,S94,945 $ 449,950,352 $ 473,742,829 $ 500,022,656 $ 538,850,569 $ 603,466,135
$ 245,00S,044 $ 268,467,171 $ 283,846,141 $ 294,760,377 $ 310,014,313 $ 333,196,242
19,800,722 22,628,600 24,343,881 16,315,836 11,750,401 13,866,060
126,634,362 138,980,320 146,681,470 168,868,607 179,998,306 186,396,785
$ 391,440,128 $ 430,076,091 $ 454,871,492 $ 479,944,820 $ 501,763,020 $ 533,459,087
$ 601,591,469 $ 641,474,524 $ 684,336,277 $ 737,729,572 $ 742,363,304 $ 735,501,769
68,755,074 70,985,761 68,678,009 39,787,385 104,523,279 146,217,511
155,688,530 167,566,158 175,600,035 202,450,519 193,727,006 2S5,205,942
$ 826,035,073 $ 880,026,443 $ 928,614,321 $ 979,967,476 $ 1,040,613,589 $ 1,136,925,222
127
CITY OF ROUND ROCK,TEXAS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2013 2014 2015 2016
Expenses:
Governmental activities-
General government $ 27,923,780 $ 28,050,936 $ 28,860,077 $ 28,434,006
Public safety 41,842,363 45,283,826 45,236,987 49,439,902
Public works 31,215,489 33,537,533 33,412,841 33,448,357
Culture and recreation 15,702,435 18,024,001 19,202,557 20,885,009
Interest on long-term debt 6,915,772 8,478,700 8,118,490 8,294,279
Total governmental activities expenses 123,599,839 133,374,996 134,830,952 140,501,553
Business-type activities-
Water and wastewater utility 42,657,792 44,605,155 46,069,705 47,947,818
Golf course 141,153 71,090 144,993 133,270
Total business-type activities expenses 42,798,945 44,676,245 46,214,698 48,081,088
Total primary government expenses 166,398,784 178,051,241 181,045,650 188,582,641
Program revenues:
Governmental activities-
Charges for services-
General government 2,822,715 2,559,380 2,168,842 2,258,333
Public safety 3,248,867 2,652,480 2,461,782 1,669,550
Public works 2,942,382 726,785 749,524 742,437
Culture and recreation 2,844,842 3,032,109 3,288,970 3,919,254
Operating grants and contributions 829,367 1,042,301 1,199,574 946,604
Capital grants and contributions 5,310,541 5,901,038 4,234,018 8,013,039
Total governmental activities program revenues 17,998,714 15,914,093 14,102,710 17,549,217
Business-type activities-
Charges for services-
Water and wastewater utility 43,094,185 43,705,878 45,898,090 48,653,788
Golf course 522,169 382,081 320,846 360,371
Capital grants and contributions 6,514,369 10,226,302 17,742,568 19,607,086
Total business-type activities program revenues 50,130,723 54,314,261 63,961,504 68,621,245
Total primary government program revenues 68,129,437 70,228,354 78,064,214 86,170,462
Net(expense)revenue-
Governmental activities (105,601,125) (117,460,903) (120,728,242) (122,952,336)
Business-type activities 7,331,778 9,638,016 17,746,806 20,540,157
Total primary government net expense (98,269,347) (107,822,887) (102,981,436) (102,412,179)
128
2017 2018 2019 2020 2021 2022
$ 24,864,772 $ 23,408,887 $ 27,861,595 $ 27,467,722 $ 35,906,343 $ 41,210,815
52,243,460 57,987,997 64,196,001 64,151,715 64,975,588 67,534,584
34,359,785 47,120,999 36,261,500 38,606,348 43,588,532 40,067,607
24,130,067 25,218,145 27,821,410 26,355,801 26,874,261 30,667,820
8,075,351 8,415,687 8,525,551 9,382,120 10,264,036 11,292,992
143,673,435 162,151,715 164,666,057 165,963,706 181,608,760 190,773,818
49,400,833 51,749,727 54,388,260 53,999,588 58,063,832 63,886,112
1,857,334 1,642,036 2,399,582 2,818,489 3,699,848 4,290,895
51,258,167 53,391,763 56,787,842 56,818,077 61,763,680 68,177,007
194,931,602 215,543,478 221,453,899 222,781,783 243,372,440 258,950,825
19,778,439 2,273,091 3,189,150 4,529,682 2,824,567 2,962,085
1,478,161 1,762,172 2,298,635 1,684,921 1,396,999 1,705,859
607,398 693,223 1,347,815 700,442 970,763 873,899
5,133,816 5,489,515 5,649,283 4,082,796 5,807,940 6,544,740
1,202,810 2,574,008 2,987,128 3,742,160 4,261,827 4,802,100
5,958,205 18,206,390 9,914,802 9,464,089 10,054,791 23,442,401
34,158,829 30,998,399 25,386,813 24,204,090 25,316,887 40,331,084
51,980,615 55,139,117 56,951,931 60,811,441 60,618,367 67,172,508
733,883 299,761 1,971,887 2,684,066 3,506,792 3,920,614
15,642,381 30,495,633 21,584,780 18,443,560 22,288,498 34,040,331
68,356,879 85,934,511 80,508,598 81,939,067 86,413,657 105,133,453
102,515,708 116,932,910 105,895,411 106,143,157 111,730,544 145,464,537
(109,514,606) (131,153,316) (139,279,244) (141,759,616) (156,291,873) (150,442,734)
17,098,712 32,542,748 23,720,756 25,120,990 24,649,977 36,956,446
(92,415,894) (98,610,568) (115,558,488) (116,638,626) (131,641,896) (113,486,288)
(CONTINUED)
129
CITY OF ROUND ROCK,TEXAS
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2013 2014 2015 2016
General revenues and other changes
in net position:
Governmental activities-
Taxes-
Property $ 34,979,578 $ 36,502,409 $ 39,932,573 $ 44,239,067
Franchise 5,952,712 6,460,448 7,255,212 7,175,948
Sales 66,216,447 68,462,292 67,620,848 67,340,120
Hotel occupancy 4,140,920 4,646,208 5,083,556 5,407,667
Public service 347,846 477,606 515,778 566,712
Investment earnings and other 2,026,554 1,882,139 5,020,786 7,957,942
Transfers 2,882,818 1,800,895 3,740,000 3,610,000
Total governmental activities 116,546,875 120,231,997 129,168,753 136,297,456
Business-type activities-
Investment earnings and other 1,385,847 1,397,321 866,927 1,214,674
Transfers (2,882,818) (1,800,895) (3,740,000) (3,610,000)
Total business-type activities (1,496,971) (403,574) (2,873,073) (2,395,326)
Total primary government 115,049,904 119,828,423 126,295,680 133,902,130
Change in net position:
Governmental activities 10,945,750 2,771,094 8,440,511 13,345,120
Business-type activities 5,834,807 9,234,442 14,873,733 18,144,831
Total primary government $ 16.780.557 $ 12,005,536 $ 23,314,244 $ 31,489,951
130
2017 2018 2019 2020 2021 2022
$ 49,107,424 $ 54,082,288 $ 57,396,623 $ 64,744,623 $ 68,187,362 $ 70,551,060
7,103,548 7,140,940 7,407,178 7,060,026 6,808,434 7,429,827
64,209,719 72,861,565 75,690,767 78,361,955 90,406,552 104,397,185
5,515,163 5,714,235 6,000,447 4,111,858 11,003,127 15,128,191
627,164 647,243 697,835 620,996 867,626 1,020,842
8,201,944 9,024,223 12,180,534 9,081,735 12,650,685 11,176,195
3,492,871 (2,961,771) 3,698,337 4,058,250 5,196,000 5,355,000
138,257,833 146,508,723 163,071,721 168,039,443 195,119,786 215,058,300
2,289,777 3,131,444 4,772,982 4,010,588 2,364,223 94,621
(3,492,871) 2,961,771 (3,698,337) (4,058,250) (5,196,000) (5,355,000)
(1,203,094) 6,093,215 1,074,645 (47,662) (2,831,777) (5,260,379)
137,054,739 152,601,938 164,146,366 167,991,781 192,288,009 209,797,921
28,743,227 15,355,407 23,792,477 26,279,827 38,827,913 64,615,566
15,89S,618 38,635,963 24,795,401 2S,073,328 21,818,200 31,696,067
$ 44,638,845 $ 53,991,370 $ 48,S87,878 $ 51,353,155 $ 60,646,113 $ 96,311,633
131
CITY OF ROUND ROCK,TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2013 2014 2015 2016
Nonspendable-
Inventories, prepaids and other $ 375,087 $ 397,271 $ 430,821 $ 372,288
Restricted for-
Debt service 2,415,427 2,278,062 2,351,780 2,749,645
Authorized construction 43,630,036 106,539,802 117,515,606 77,545,478
Hotel-motel tax 9,549,082 11,173,765 10,934,476 12,653,710
Public safety 1,249,246 1,050,349 1,274,293 676,724
General government - - - -
Committed to-
General government 865,493 684,199 856,977 1,081,159
Capital projects funds 31,856,334 26,570,024 24,696,122 24,865,777
Streets and drainage 1,570,994 - 1,145,826 1,152,195
Culture and recreation 10,530 12,438 322,576 293,694
Assigned to-
Culture and recreation 283,518 264,662 272,666 212,080
Unassigned 38,604,781 38,726,365 50,277,389 52,427,796
Total governmental funds $ 130,410,528 $ 187,696,937 $ 210,078,532 $ 174,030,546
132
2017 2018 2019 2020 2021 2022
$ 232,004 $ 253,592 $ 226,190 $ 1,094,653 $ 1,783,208 $ 404,179
3,880,982 4,853,517 5,019,375 5,080,091 7,901,595 7,041,411
81,086,426 62,649,029 72,690,649 58,069,777 124,312,278 171,116,800
6,526,672 7,863,705 6,807,382 7,440,S58 10,222,462 1S,269,909
585,878 750,657 1,025,501 757,284 735,896 887,046
1,269,075 1,268,233 1,439,377 1,401,931 1,433,730 1,472,144
124,703 232,243 883,883 1,030,812 881,812 1,077,S19
28,397,665 21,934,876 28,971,259 23,259,722 41,256,494 63,546,738
- - - - 1,483,055 1,483,055
1,004,583 1,274,658 1,638,534 1,834,073 2,496,916 3,852,615
50,090,080 53,558,920 49,498,684 59,547,303 58,913,029 48,267,275
$ 173,198,068 $ 154,639,430 $ 168,200,834 $ 159,516,204 $ 251,420,475 $ 314,418,691
133
CITY OF ROUND ROCK,TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2013 2014 2015 2016
Revenues-
Taxes and franchise $ 107,417,612 $ 111,592,909 $ 115,508,506 $ 119,211,433
Licenses,permits and fees 3,567,437 1,243,857 1,704,374 1,843,633
Charges for services 4,436,779 4,645,527 4,513,428 5,172,465
Fines and forfeitures 3,208,637 2,673,670 2,451,316 1,573,476
Intergovernmental 1,225,195 3,044,095 1,679,993 990,683
Hotel occupancy tax 4,140,920 4,646,208 5,083,556 5,407,667
Investment and other 2,567,327 3,152,100 600,919 368,748
Contributions 3,565,842 4,783,567 7,207,478 7,963,854
Total revenues 130,129,749 135,781,933 138,749,570 142,531,959
Expenditures-
General government 23,783,735 24,375,794 23,838,520 24,394,392
Public safety 39,475,791 42,306,841 43,067,272 44,388,881
Public works 11,852,443 11,291,499 12,328,284 12,062,839
Culture and recreation 12,440,948 13,775,702 14,766,040 15,078,964
Capital projects 65,523,775 38,694,239 33,476,554 65,414,999
Debt service-
Principal retirement 12,852,059 14,395,697 13,919,366 13,463,922
Interest and fiscal charges 6,797,281 7,372,652 8,597,372 9,641,498
Payment to refunding agent - - - -
Other charges 98,630 862,888 942,596 229,245
Total expenditures 172,824,662 153,075,312 150,936,004 184,674,740
Excess of revenues
over(under)expenditures (42,694,913) (17,293,379) (12,186,434) (42,142,781)
Other financing sources(uses)-
Issuance of lease(1) 1,000,000 1,450,000 2,000,000 2,250,000
Issuance of debt 8,615,000 77,350,000 70,665,000 11,450,000
Premium on bonds issued - 6,161,887 6,369,020 1,094,690
Payment to refunded bond escrow agent (8,509,756) (11,682,994) (48,205,991) (12,309,895)
Transfers in 49,547,722 32,984,237 27,070,865 30,552,126
Transfers out (46,363,263) (31,683,342) (23,330,865) (26,942,126)
Total other financing sources(uses) 4,289,703 74,579,788 34,568,029 6,094,795
Net change in fund balances $ (38,405,210) $ 57,286,409 $ 22,381,595 $ (36,047,986)
Capital outlay including amounts reported
under departmental current expenditures $ 67,059,266 $ 38,644,877 $ 35,385,140 $ 65,116,395
Debt service as a percentage of
noncapital expenditures 18.6% 19.0% 19.5% 19.3%
(1) Issuance of lease refers to capital leases issued to debt finance equipment and vehicle replacement prior to FY 2022.GASB 87 was
implemented in FY 2022 and changes the meaning of a lease. Therefore, the previous capital leases are referred to as Notes Payable
throughout the Annual Comprehensive Financial Reporting,beginning in FY 2022.
134
2017 2018 2019 2020 2021 2022
$ 121,142,245 $ 134,637,978 $ 141,150,180 $ 150,717,481 $ 166,252,010 $ 183,162,281
1,646,077 2,037,211 2,703,240 1,834,311 2,543,143 2,959,342
6,307,377 6,563,868 6,916,463 5,274,975 7,092,585 7,929,787
1,440,795 1,616,922 2,153,309 1,623,976 1,152,990 1,380,898
2,950,833 9,511,022 3,822,463 5,540,163 11,400,907 24,816,402
5,515,163 5,714,235 6,000,447 4,111,858 11,003,127 15,128,191
931,601 2,335,783 4,670,671 9,165,467 7,261,313 2,778,909
8,253,614 9,260,526 12,728,177 3,336,036 2,338,936 3,285,315
148,187,705 171,677,545 180,144,950 181,604,267 209,045,011 241,441,125
21,055,932 23,744,730 22,423,018 24,841,662 31,324,914 35,377,631
47,595,884 52,839,347 56,063,867 56,494,602 59,445,458 64,353,318
12,682,503 14,748,037 15,077,947 17,290,725 16,946,664 19,056,273
17,219,700 18,513,216 20,213,897 19,022,847 19,931,144 24,017,708
63,268,686 59,809,511 90,837,258 82,350,573 47,540,721 87,575,761
13,287,160 14,325,970 17,792,363 18,296,526 20,148,502 19,650,222
8,306,767 9,244,645 8,616,675 10,243,591 10,367,705 12,133,701
10,050,443 - 13,758,972 7,010,563 - -
423,510 967,009 276,058 1,225,607 1,512,308
193,890,585 193,225,456 245,751,006 235,827,147 206,930,715 263,676,922
(45,702,880) (21,547,911) (65,606,056) (54,222,880) 2,114,296 (22,235,797)
- 5,981,044 2,900,000 - - -
38,725,000 - 67,685,000 41,480,000 84,040,000 156,315,000
2,652,531 4,884,123 - 7,036,650 2,642,581
- - - - (6,482,675) (79,078,568)
31,908,470 22,678,818 42,110,430 39,495,337 75,973,539 70,036,965
(28,415,599) (25,640,589) (38,412,093) (35,437,087) (70,777,539) (64,681,965)
44,870,402 3,019,273 79,167,460 45,538,250 89,789,975 85,234,013
$ (832,478) $ (18,528,638) $ 13,561,404 $ (8,684,630) $ 91,904,271 $ 62,998,216
$ 90,020,515 $ 46,896,225 $ 87,242,801 $ 80,820,915 $ 40,870,035 $ 86,316,796
20.8% 16.1% 16.7% 18.4% 18.4% 17.9%
135
CITY OF ROUND ROCK,TEXAS
ACTUAL AND TAXABLE ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
Actual Assessed Value Less: Total
Taxable Total
Fiscal Real Personal Tax Exempt Assessed Direct
Year Property Property Total Property Valuation Tax Rate
2013 $ 7,837,387,397 $ 947,316,007 $ 8,784,703,404 $ 493,653,067 $ 8,291,050,337 $ 0.4203
2014 8,195,046,631 1,062,520,327 9,257,566,958 567,914,523 8,689,652,435 0.4195
2015 9,193,035,124 1,030,331,518 10,223,366,642 589,210,216 9,634,156,426 0.4146
2016 10,040,964,402 1,018,628,138 11,059,592,540 567,506,618 10,492,085,922 0.4147
2017 10,935,482,664 1,031,249,775 11,966,732,439 639,556,585 11,327,175,854 0.4250
2018 12,013,959,238 1,124,094,154 13,138,053,392 686,899,632 12,451,153,760 0.4300
2019 13,176,805,756 1,160,970,549 14,337,776,305 738,356,451 13,599,419,854 0.4200
2020 14,022,511,023 1,427,644,784 15,450,155,807 802,376,438 14,647,779,369 0.4390
2021 14,769,011,872 1,302,409,762 16,071,421,634 713,462,308 15,357,959,326 0.4390
2022 17,549,969,505 1,450,591,938 19,000,561,443 1,329,837,647 17,670,723,796 0.3970
Source: Williamson Central Appraisal District/Travis Central Appraisal District
Note- 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.
136
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
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
2022 0.2649 0.1321 0.3970 1.1336 0.4408 0.1223 2.0937
Source: Williamson County Tax Office
137
CITY OF ROUND ROCK, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2022 2013
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 $ 407,378,245 1 2.305 % $ 155,156,519 1 1.871 %
Kalahari Resorts and Conventions 368,363,095 2 2.085 - -
CPG Round Rock, LP/
Round Rock Premium Outlets 162,521,096 3 0.920 134,005,150 2 1.616
Dell Computer Corp. 113,013,726 4 0.640 56,450,337 5 0.681
CMF 15 Portfolio, LLC/
Colonial Grand Apartments 93,131,080 5 0.527 47,642,3S2 6 0.57S
Baltgem Development Corp./
La Frontera Village 86,103,232 6 0.487 78,890,823 3 0.952
2811 LA Frontera LP/
Griffis Apartments 80,394,600 7 0.455 - -
Fisher-Rosemount Systems, Inc. 78,368,729 8 0.443 33,000,000 10 0.398
Oncor Electric Delivery Co. 75,011,547 9 0.424 40,170,098 7 0.484
Columbia/St. David Healthcare 70,575,468 10 0.399 62,942,176 4 0.759
Inland American University
Oaks, LP - - 38,354,296 8 0.463
Round Rock Luxury Apts, LTD - 3S,310,952 9 0.426
$ 1,534,860,818 8.685 % $ 681,922,703 8.225 %
Source: Williamson Central Appraisal District
138
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
2013 $ 34,865,783 $ 34,717,536 99.57 % $ 2,029 $ 34,719,565 99.58 %
2014 36,452,223 36,281,479 99.53 2,078 36,283,557 99.54
2015 39,792,302 39,697,745 99.76 2,259 39,700,004 99.77
2016 44,063,923 43,894,949 99.62 2,468 43,897,417 99.62
2017 49,113,540 48,988,540 99.75 3,187 48,991,727 99.75
2018 53,890,399 53,775,618 99.79 3,151 53,778,769 99.79
2019 57,296,592 57,106,114 99.67 (3,550) 57,102,564 99.66
2020 64,708,293 64,443,984 99.59 (4,908) 64,439,076 99.58
2021 68,133,164 67,922,644 99.69 (32,385) 67,890,259 99.64
2022 70,241,994 70,033,185 99.70 70,033,185 99.70
139
CITY OF ROUND ROCK,TEXAS
SALES TAX AND AD VALOREM TAX
LAST TEN FISCAL YEARS
Tota11% %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
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
2022 58,232,363 70,241,994 82.90 0.3295 124,614 467
Note: The City has adopted the Municipal Sales and Use Tax Act, Texas Tax Code, Chapter 321,which grants the City the
power to impose and levy a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund
and are not pledged to the payment of the bonds. Collections and enforcements are effected through the office of the
Texas Comptroller of Public 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 valorem taxes or the 0.5%sales and use tax collected for transportation improvements.
140
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141
CITY OF ROUND ROCK,TEXAS
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
Calendar Retail Wholesale
Year Trade Manufacturing Services Trade Utilities
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
2021 2,077,784,400 1,127,507,544 896,501,602 270,878,555 32,367,651
$ 16,320,722,681 $ 9,879,673,511 $ 5,255,327,801 $ 1,591,699,139 $ 354,929,985
Source:Texas Comptroller of Public Accounts
Note: 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.
142
City
Direct State
Finance, Sales Tax Sales Tax Over-
Construction Insurance Total Rate Rate lapping
$ 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
151,326,047 3,053,232 4,559,419,031 2.00 6.25 8.25
$ 1,296,069,820 $ 27,543,083 $ 34,725,966,020
143
CITY OF ROUND ROCK,TEXAS
HOTEL TAXPAYERS
YEAR ENDED SEPTEMBER 30, 2022
Total
Hotel Motel Hotel Motel Collections Number %of
Occupancy Occupancy Year Ended of Total
Taxpayer Tax Venue Tax Sept.30, 2022 Rooms Collections
Kalahari Resorts&Conventions $ 5,883,739 $ 1,681,066 $ 7,S64,80S 97S S0.00 %
Austin Marriott North 524,378 150,902 675,280 295 4.46
Hyatt Place 294,397 84,113 378,510 138 2.50
Hilton Garden Inn 276,283 79,537 355,820 122 2.35
Homewood Suites 267,650 76,471 344,121 11 S 2.27
Embassy Suites 223,925 64,320 288,245 180 1.91
Courtyard Marriott 212,545 60,727 273,272 113 1.81
Springhill Suites 209,374 60,270 269,644 104 1.78
Holiday Inn Express North 205,578 59,193 264,771 109 1.75
Tru By Hilton 200,985 57,671 258,656 98 1.71
Towneplace Suites 199,209 56,917 256,126 102 1.69
Hampton Inn 194,12S 5S,4SS 249,580 93 1.65
Home2 Suites 179,367 51,246 230,613 91 1.52
Aloft 173,300 49,659 222,959 120 1.47
La Quinta East 169,643 48,959 218,602 99 1.45
Holiday Inn 167,733 48,354 216,087 116 1.43
Element 158,564 45,468 204,032 123 1.35
Holiday Inn Express South 151,392 43,660 195,052 91 1.29
AVID 151,195 43,588 194,783 89 1.29
Microtel 138,893 39,988 178,881 82 1.18
Residence Inn 137,268 39,219 176,487 96 1.17
Staybridge 135,139 38,693 173,832 81 1.15
Wingate Inn 125,557 35,925 161,482 100 1.07
La Quinta North 124,684 35,805 160,489 116 1.06
Red Roof Inn 122,086 34,882 156,968 107 1.04
Ruby Hotel 116,211 33,203 149,414 39 0.99
Sleep Inn 105,443 30,431 135,874 74 0.90
La Quinta South 105,333 30,135 135,468 86 0.90
Comfort Suites 101,667 29,273 130,940 63 0.87
Motel 97,982 27,995 125,977 60 0.83
Best Western 91,279 26,149 117,428 68 0.78
Country Inn 85,343 24,384 109,727 61 0.73
Extended Stay America#6030 79,077 22,594 101,671 138 0.67
Woodspring Suites North 74,026 21,1S0 95,176 121 0.63
Quality Inn 71,499 20,570 92,069 49 0.61
Candlewood Suites 71,356 20,484 91,840 98 0.61
Extended Stay America#6197 68,495 19,570 88,065 104 0.58
Short Term Rentals 35,860 10,281 46,141 22 0.30
Woodspring Suites South 30,16S 8,70S 38,870 122 0.2S
Provident Crossings Retirement 337 97 434 2 0.01
$ 11,761,082 $ 3,367,109 $ 15,128,191 4,862 100.0 %
144
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.—June July—Sept. Total
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
2022 3,235,991 3,249,855 4,400,515 4,241,830 15,128,191
145
CITY OF ROUND ROCK,TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business-Type
Governmental Activities Activities
General Revenue Bonds Total Percentage
Fiscal Obligation Certificates of Other Debt and Other Primary of Personal Per
Year Bonds Obligation Obligations Obligations Government Income Capita
2013 $ 96,340,000 $ 11,770,000 $ 56,131,110 $ 85,392,673 $ 249,633,783 7.56 % $ 2,439
2014 155,780,000 11,135,000 55,963,734 90,799,894 313,678,628 9.12 3,042
2015 154,925,000 29,675,000 56,701,818 87,827,948 329,129,766 10.00 3,123
2016 149,540,000 27,095,000 52,746,502 89,364,624 318,746,126 6.43 2,990
2017 170,615,000 26,315,000 49,477,613 86,027,443 332,435,056 6.87 3,068
2018 162,820,000 25,520,000 48,520,464 82,997,070 319,857,534 5.93 2,851
2019 151,405,000 58,870,000 68,930,433 79,510,797 358,716,230 6.08 3,089
2020 141,220,000 88,025,000 64,350,491 75,999,389 369,594,880 5.89 3,132
2021 131,555,000 140,250,000 84,871,892 72,342,981 429,019,873 6.16 3,493
2022 162,165,000 148,300,000 104,303,592 68,669,982 483,438,574 6.16 3,879
Note: Details regarding 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.
146
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
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 10,492,086 195,911,354 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
2022 124,614 17,670,723 336,822,235 4,658,982 332,163,253 1.88 2,666
*Source:Planning Department,City of Round Rock
Note: Includes Certificates of Obligation,General Obligation Bonds, Limited Tax Notes, Notes Payable,and Capital
Leases, net of related premiums and discounts.
147
CITY OF ROUND ROCK,TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED SEPTEMBER 30, 2022
Total Estimated
General Estimated Share of
Debt Percentage Overlapping
Name of Governmental Unit Outstanding* Applicable** Debt
Debt repaid with property taxes-
Williamson County $ 1,109,300,000 18.97 % $ 21,043,421,000
Round Rock Independent
School District 794,720,000 36.55 290,470,160
Round Rock MUD#1 3,935,000 100.00 3,935,000
Travis County 978,465,000 0.25 2,446,163
Austin Community College 414,210,000 5.98 24,769,758
Georgetown ISD 551,680,000 0.64 3,530,752
Pflugerville ISD 508,435,000 0.28 1,423,618
Travis County Healthcare District 78,140,000 0.25 195,350
Subtotal, overlapping debt 21,370,191,801
City direct debt 414,768,592
Total direct and overlapping debt $ 21,784,960,393
*Gross Debt as of September 30, 2022
**The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Source: City of Round Rock Finance Department and Municipal Advisory of Texas(Texas MAC)
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City of Round Rock, Texas. This process recognizes that, when considering the government's ability to issue
and repay long-term 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.
148
149
CITY OF ROUND ROCK,TEXAS
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Debt limit $ 1,486,218,341 $ 1,557,670,054 $ 1,640,628,922 $ 1,786,728,268
Total net debt applicable to limit 101,824,573 161,006,938 178,893,220 170,530,355
Legal debt margin $ 1,384,393,768 $ 1,396,663,116 $ 1,461,735,702 $ 1,616,197,913
Total net debt applicable to the limit
as a percentage of debt limit 6.85% 10.34% 10.90% 9.54%
Legal Debt Margin Calculation for Fiscal Year 2022
Total assessed value $ 17,670,723,796
Debt limit- maximum serviceable at permitted allocation
of$1.50 per$100 of assessed value $ 3,009,199,691
Amount of debt applicable to debt limit:
Total General Obligation Debt $ 319,914,519
Less:
Amount available in Debt Service Fund (4,658,982)
Total net debt applicable to debt limit 315,255,537
Legal debt margin $ 2,693,944,154
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 $100 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, 2021, assessed valuation of $17,670,723,796 at
100%collection,tax revenue of$26S,060,857 would be produced. This revenue could service the debt on $3,009,199,691
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 2023 $ 31,427,568
Tax Year 2022 Interest and Sinking Fund Tax Levy @ 99%Collection $ 25,924,510
Interest and Sinking Fund Balance as of September 30,2022 4,658,982
Self-Supporting Debt 1,874,550
32,458,042
Estimated Balance, September 30, 2023 $ 1,030,474
150
2017 2018 2019 2020 2021 2022
$ 1,928,938,196 $ 2,120,343,710 $ 2,315,885,331 $ 2,494,413,566 $ 2,615,352,206 $ 3,009,199,691
193,049,018 183,486,483 205,255,625 224,164,909 266,285,834 315,255,537
$ 1,735,889,178 $ 1,936,857,227 $ 2,110,629,706 $ 2,270,248,657 $ 2,349,066,372 $ 2,693,944,154
10.01% 8.65% 8.86% 8.99% 10.18% 10.48%
151
CITY OF ROUND ROCK,TEXAS
CONDENSED UTILITY STATEMENT OF OPERATIONS
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Gross Revenue (1)
Charges for services $ 43,094,185 $ 40,762,S23 $ 41,880,906 $ 44,406,721
Licenses, permits and fees 1,941,121 2,943,355 4,017,184 4,247,067
Investment and other income 1,385,965 1,397,259 863,900 1,211,532
Total 46,421,271 45,103,137 46,761,990 49,865,320
Direct Operating Expense(2)
Personnel services 8,634,094 8,939,263 91228,272 9,742,128
Contracted services 14,335,824 14,200,624 14,500,269 15,222,35S
Materials and supplies 1,890,480 2,163,731 11837,026 2,091,331
Heat, light and power 1,951,428 1,829,036 1,783,408 1,662,779
Total 26,811,826 27,132,654 27,348,975 28,718,593
Net available for Debt Service $ 19,609,445 $ 17,970,483 $ 19,413,015 $ 21,146,727
Debt Service Requirements(P&I) $ 6,101,113 $ 6,347,632 $ 6,894,788 $ 5,994,842
Revenue Bond Coverage 3.21 2.83 2.82 3.53
Metered Water Customers 31,431 32,012 32,447 32,930
Metered Wastewater Customers 30,766 31,133 31,531 31,984
Average Annual Principal and Interest Requirements, FY 2023-2041 $ 5,036,039
Coverage of Average Requirements by FY 2022 Net Revenue 5.59
Estimated Maximum Principal and Interest Requirements, FY 2023 $ 5,956,631
Estimated Coverage of Maximum Requirements by FY 2022 Net Revenue 4.73
Parity Debt Outstanding at FY 2022 $ 63,390,000
(1) Water and Wastewater Fund operating and non-operating revenues
(2) Water and Wastewater Fund operating expenses,excluding depreciation/amortization
152
2017 2018 2019 2020 2021 2022
$ 47,769,478 $ 50,715,034 $ 51,973,150 $ 55,695,939 $ 55,106,110 $ 60,923,212
4,211,137 4,226,721 4,828,792 4,693,720 5,472,368 6,302,178
2,284,171 3,122,041 4,772,982 4,010,185 2,363,247 90,182
54,264,786 58,063,796 61,574,924 64,399,844 62,941,725 67,315,572
11,871,681 10,940,702 12,809,236 12,751,829 12,896,946 13,633,693
14,854,212 16,695,290 14,844,774 13,759,401 16,476,180 18,392,887
2,504,640 2,392,415 3,385,739 2,747,862 3,051,250 4,234,393
1,618,297 1,578,540 2,188,155 2,452,847 2,404,405 2,891,204
30,848,830 31,606,947 33,227,904 31,711,939 34,828,781 39,152,177
$ 23,415,956 $ 26,456,849 $ 28,347,020 $ 32,687,905 $ 28,112,944 $ 28,163,395
$ 6,352,459 $ 5,444,927 $ 6,102,631 $ 6,082,481 $ 6,073,581 $ 6,062,631
3.67 4.86 4.65 5.37 4.63 4.65
33,602 34,581 35,397 35,998 36,593 37,324
32,614 33,277 34,085 35,299 35,879 36,581
153
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154
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
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 48,121 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
2022 124,614 7,842,083,634 62,931 33.7 47,184 2.6
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
155
CITY OF ROUND ROCK,TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2022 2013
%of Total %of Total
City City
Name of Employer Employees Rank Employment Employees Rank Employment
Dell Technologies 12,000 1 16.06 % 13,000 1 23.97 %
Round Rock Independent School District 6,604 2 8.84 5,750 2 10.60
St. David's Round Rock Medical Center 1,200 3 1.61 689 9 1.27
City of Round Rock,Texas 1,130 4 1.51 824 4 1.52
Baylor Scott&White Healthcare 911 5 1.22 750 5 1.38
Ascension Seton Medical Center Williamson 750 6 1.00 450 10 0.83
Kalahari Resorts&Conventions 700 7 0.94 - -
Amazon Round Rock Delivery Station 650 8 0.87 - -
Emerson Automation Solutions 600 9 0.80 750 5 1.38
Airco Mechanical 550 10 0.74 - -
Sears TeleServe - - 1,500 3 2.77
Field Asset Services 700 7 1.29
Texas Guaranteed Student Loan - - 700 7 1.29
25,095 33.59 % 25,113 46.30 %
Source: City of Round Rock Finance Department/Round Rock Chamber of Commerce
156
CITY OF ROUND ROCK, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function:
General government 149 157 159 163 179 194 202 205 206 216
Public safety-
Police-
Officers 153 159 167 168 174 176 176 180 180 186
Civilians 68 64 67 72 74 75 78 78 78 82
Fire-
Firefighters&officers 124 129 129 132 134 149 152 153 155 159
Civilians 6 8 8 8 8 9 10 10 8 22
Public works-
Street&Stormwater 70 70 69 76 73 77 81 82 82 90
Shop 15 16 18 19 18 18 19 19 19 19
Culture&Recreation-
Library 30 31 31 31 31 31 32 33 34 40
Parks&Recreation 91 91 91 106 102 105 107 108 108 110
Water&Wastewater Utility 126 128 129 128 128 131 151 151 151 151
Total 832 853 868 903 921 96S 1,008 1,019 1,021 1,075
Source:City of Round Rock Finance Department
157
CITY OF ROUND ROCK, TEXAS
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Function:
Police-
Arrests 6,182 5,773 4,600 4,476
Accident reports 4,845 6,383 2,249 2,370
Index crimes reported** 2,632 2,338 2,329 2,383
Crimes per thousand residents** 25.10 21.70 22.00 22.50
Officers per thousand of population 1.46 1.42 1.53 1.43
Fire-
Incident volume*** 8,749 9,027 9,928 9,346
Priority calls answered*** 3,728 3,713 2,780 3,735
Non-emergency calls answered*** 5,021 5,314 7,148 5,611
Priority calls-response less than 6 minutes 60% 63% 56% 61%
Public Works-
Street-
Street resurfacing (lane miles) 80 80 40 60
Potholes repaired annually 4,000 4,000 1,500 400
Signals maintained 79 83 84 83
Shop-
Work orders 4,447 4,178 4,399 4,761
Number of departments served 12 12 12 12
Culture and Recreation-
Library-
Number of items circulated 940,135 975,291 972,094 1,080,312
Number of card holders 81,620 74,192 99,822 77,818
Number of library visits 323,384 309,167 388,625 391,256
Parks&Recreation-
Total park acres maintained 2,035 2,045 2,045 2,045
Number of athletic fields maintained 49 49 49 49
Number of trees planted 163 165 110 195
Number of recreation enrollees* 487,455 490,704 - -
Number of recreation participants - - 832,184 988,337
Water-
New connections 442 360 402 480
Line maintenance work orders 5,500 6,734 3,317 3,512
Average monthly consumption 549,154,150 491,936,100 505,251,158 536,082,308
Wastewater-
Average monthly treatment 409,000,000 394,000,000 385,611,068 416,357,161
Line feet reviewed for infiltration &inflow 377,783 459,128 187,464 189,418
Source: City of Round Rock Finance Department
*Note:Parks and Recreation started recording all participants in all programs in Fiscal Year 2015.
**Note:The Police Department started using the NIBRS System in FY 2020 to report to the State.
***Note: The Fire Department started using a new program to record incidents starting in FY 2021.
158
2017 2018 2019 2020 2021 2022
4,600 4,152 4,272 3,592 3,049 4,243
2,370 2,762 2,698 2,636 2,236 3,109
2,383 2,870 2,648 2,400 6,960 8,522
22.50 26.50 23.40 21.00 S6.10 67.80
1.48 1.56 1.53 1.53 1.49 1.48
10,777 11,328 11,813 12,189 13,193 14,876
2,548 5,083 4,078 3,248 2,590 6,288
8,229 6,245 7,735 6,905 4,770 8,588
S8% S3% 79% 73% 72% 67%
60 60 121 183 190 140
300 300 280 250 220 260
89 90 93 100 100 100
4,620 4,733 4,936 4,980 2,972 4,492
12 12 12 12 12 12
1,188,757 1,229,141 1,315,186 986,686 1,105,973 1,171,561
79,415 81,181 83,507 80,656 65,159 65,788
389,930 388,732 416,391 219,736 1S6,742 27S,8S1
2,270 2,270 2,285 2,285 2,295 2,301
49 49 49 51 51 51
408 43 74 98 73 21
1,080,853 1,140,094 892,870 332,89S 513,322 518,194
665 911 789 534 486 710
3,346 3,013 1,778 2,366 2,383 2,513
571,062,5S8 612,026,4S1 S43,547,232 620,080,709 622,781,309 773,701,493
42S,631,471 426,330,521 410,300,487 440,156,307 498,103,453 695,438,048
206,675 169,579 133,098 109,080 102,296 194,727
159
CITY OF ROUND ROCK, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Function:
Police-
Number of stations 1 1 1 1
Number of units 201 229 240 259
Fire-
Number of stations 7 7 7 7
Number of fire trucks 16 14 16 15
Public Works-
Street-
Lane miles 1,250 1,250 1,250 1,200
Drainage miles 150 150 150 150
Number of street lights* 6,000 6,800 5,400 5,433
Number of traffic signals 79 83 84 83
Shop-
Repair facilities 1 1 1 1
Number of bays 19 19 19 13
Culture and Recreation-
Library-
Number of library books 150,211 154,278 156,277 257,667
Number of library facilities 1 1 1 1
Parks&Recreation-
Total park acres 2,035 2,035 2,035 2,035
Number of athletic fields 49 49 49 49
Number of parks 62 62 62 62
Number of tennis courts 23 25 25 25
Number of pools 4 4 4 4
Water-
Number of miles of water lines** 587 601 608 615
Pumping stations 10 10 10 10
Tanks 20 19 19 19
Treatment capacity(millions of gallons/day) 52 52 52 52
Wastewater-
Number of miles of wastewater mains 424 432 424 427
Wastewater lift stations 12 12 12 12
Source: City of Round Rock Finance Department
*Count per third-party inventory of street lights performed at the end of FY 2021
**Includes MUDS and private owned lines
160
2017 2018 2019 2020 2021 2022
1 1 1 1 1 1
256 261 241 252 258 270
9 9 9 9 9 9
16 16 17 17 17 20
1,200 1,300 1,350 1,450 1,500 1,500
151 200 200 333 352 368
5,604 5,674 5,733 5,771 5,749 5,787
89 90 93 100 100 100
1 1 1 2 2 2
18 18 18 21 21 21
213,381 225,903 230,094 227,880 228,866 230,577
1 1 1 1 1 1
2,270 2,270 2,285 2,285 2,295 2,301
59 59 61 61 61 61
61 61 61 61 61 61
22 21 21 21 21 21
4 4 4 4 4 4
614 651 636 667 698 722
10 10 11 11 11 11
19 19 19 19 20 20
S2 52 52 61 61 61
428 461 445 467 477 495
12 12 11 11 11 11
161
CITY OF ROUND ROCK, TEXAS
TOP TEN WATER CUSTOMERS
SEPTEMBER 30, 2022
%of Total
Water Water
Consumption Consumption
Name of Customer Type of Business in Gallons in Gallons
City of Georgetown,Texas Municipality 1,020,265,100 10.989 %
Fern Bluff Municipal Utility District Municipal Utility District 343,146,800 3.696
Paloma Lake Municipal Utility District#1  Municipal Utility District 269,897,500 2.907
Williamson County Municipal Utility District#11 Municipal Utility District 201,858,700 2.174
Williamson County Municipal Utility District#10 Municipal Utility District 192,614,000 2.075
Chandler Creek Municipal Utility District Municipal Utility District 161,099,000 1.735
Jonah Water Special Utility District Special Utility District 139,945,500 1.507
Kalahari Resorts&Conventions Hotel 139,775,400 1.505
Vista Oaks Municipal Utility District Municipal Utility District 121,469,500 1.308
Round Rock Independent School District Public Schools 97,977,300 1.055
2,688,048,800 28.951 %
Source: City of Round Rock Finance Department
162
CITY OF ROUND ROCK,TEXAS
WATER AND WASTEWATER RETAIL RATES
SEPTEMBER 30, 2022
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
Wastewater rates for retail customers inside the city limits are as follows:
Volume Rate Monthly Service Charge
Monthly
$3.09 per 1,000 gallons of water used by all customers* Meter Size Base Wastewater
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 61 S.27
8 inch 1,073.67
10 inch 1,684.85
12 inch 2,066.84
* Wastewater 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.
163
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164
CITY OF ROUND ROCK,TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2022
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-249990-OLS-21 $ $ 11,694 $ 11,694
Grants to States(Covid-19) 45.310 LS-250239-OLS-21 32,216 32,216
Total Grants to States 43,910 43,910
Total Institute of Museum and Library Services 43,910 43,910
U.S.Department of Homeland Security
Pass-Through from Texas A&M Engineering Extension Service
National Urban Search&Rescue Response System
Kentucky Tornadoes 97.025 2021-0199 13,791 13,791
Tropical Cyclone Ida 97.025 2021-0096 TC-IDA 19,561 19,561
Total National Urban Search&Rescue Response System 33,352 33,352
Total U.S.Department of Homeland Security 33,352 33,352
U.S.Department of Housing&Urban Development
Community Development Block Grants/Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218 B19MC480514 81,255 20,900 102,155
Community Development Block Grants/Entitlement Grants 14.218 B20MC480514 - 93,585 93,585
Community Development Block Grants/Entitlement Grants 14.218 B21MC480514 103,948 234,745 338,693
Community Development Block Grants/Entitlement Grants(Covid-19) 14.218 B20MW480514 48,740 38,788 87,528
Total Community Development Block Grants/Entitlement Grants Cluster 233,943 388,018 621,961
Total U.S.Department of Housing&Urban Development 233,943 388,018 621,961
U.S.Department of the Treasury
Coronavirus State and Local Fiscal Recovery Funds(Covid-19) 21.027 SLT-4414 - 998,587 998,587
Total U.S.Department of the Treasury 998,587 998,587
U.S.Department of Transportation
Federal Transit Cluster
Federal Transit Formula Grants 20.507 TX-2019-053-00 172,447 172,447
Federal Transit Formula Grants 20.507 TX-2020-026-00 69,211 69,211
Federal Transit Formula Grants(Covid-19) 20.507 TX-2021-031-00 14,499 14,499
Federal Transit Formula Grants(Covid-19) 20.507 TX-2021-082-00 1,884,250 1,884,250
Total Federal Transit Cluster 2,140,407 2,140,407
Highway Planning and Construction Cluster
Pass-Through from Texas Department of Transportation
University Boulevard East(AW Grimes to SH130) 20.205 0914-05-193 3,885,675 3,885,675
Kenney Fort Boulevard(Segments 2&3) 20.205 0914-05-195 7,601,944 7,601,944
Total Highway Planning and Construction Cluster 11,487,619 11,487,619
Total U.S.Department of Transportation 13,628,026 13,628,026
Total Expenditures of Federal Awards $ 233,943 $ 15,091,893 $ 15,325,836
*Assistance Listing Number(ALN)formerly known as Catalog of Federal Domestic Assistance(CFDA).
165
CITY OF ROUND ROCK,TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
SEPTEMBER 30, 2022
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 assistance 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 ACCOUNTING
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 COST 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 Ida that were passed through the Texas A&M
Engineering Extension Service to the City of Round Rock from the U.S. 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
FY 2022. Accordingly, 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.
166
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737.931.8200 Main
whitleypenn.com
INDEPENDENT AUDITOR'S 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
To the Honorable Mayor and
Members of City Council
City of Round 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 Auditing 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, 2022, 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 6,2023.
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 control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected
and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness,yet important enough to merit attention by those 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 significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and 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,
providing 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 matters that are
required to be reported under Government Auditing Standards.
OHLBWE ARE PN INDEPENDENT MEMBER OF 167
THE GLOBAL ADVISORY
AND ACCOUNTING NETWORK
To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Purpose of this Report
The purpose of 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. This
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
entity's internal control and compliance. Accordingly,this communication is not suitable for any other purpose.
WA; I.LP
Austin,Texas
February 6,2023
168
Austin Office
s. 3600 N.Capital of Texas Hwy.
w h i t l e y p e n n• Bldg B.Suite Austin,Texas 78 78746
737.931.8200 Main
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INDEPENDENT AUDITORS'REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of City Council
City of Round Rock Texas
Report on Compliance for Each Major Federal Program
Opinion on Each Major Program
We have audited City of Round Rock,Texas'(the"City")compliance with the types of compliance requirements described in
the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs
for the year ended September 30,2022.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.
In our opinion, the City's complied, in all material respects,with the compliance requirements referred to above that could
have a direct and material effect on each of its major federal programs for the year ended September 30,2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States(Government Auditing Standards); and the audit requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal
Awards(Uniform Guidance).Our responsibilities under those standards, the Uniform Guidance are further described in the
Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a
legal determination of the City's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules
and provisions of contracts or grant agreements applicable to the City's federal programs.
eLs
W TEHE AREGLOBAL AN INDEPENDADVISORYENT MEMBER-
169
AND ACCOUNTING NETWORK
To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred,whether due to fraud or error, and express an opinion on the City's compliance
based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, the Uniform Guidance, will
always detect material noncompliance when it exists.The risk of not detecting material noncompliance resulting from fraud
is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to
above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the
judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of
each major federal program as a whole.
In performing an audit in accordance with GAAS,Government Auditing Standards,and the Uniform Guidance,we
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks.Such procedures include examining,on a test basis, evidence regarding
the District's compliance with the compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
• Obtain an understanding of the District's internal control over compliance relevant to the audit in order to design
audit procedures that are appropriate in the circumstances 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 the District's internal control over compliance.Accordingly,no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we
identified during the audit.
Report on 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 program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
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To the Honorable Mayor and
Members of City Council
City of Round Rock,Texas
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance.Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,
this report is not suitable for any other purpose.
(.( A;4-1,-r .. I-LP
Austin,Texas
February 6,2023
171
CITY OF ROUND ROCK, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30,2022
I.Summary of Auditors'Results
Financial Statements
Type of auditors' report issued: Unmodified
Internal control over financial reporting:
Material weakness(es)identified? No
Significant deficiencies identified that are not considered to be material
weaknesses? None reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weakness(es)identified? No
Significant deficiencies identified that are not considered to be material
weaknesses? None reported
Type of auditors' report issued on compliance with major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance
with 2 CFR 200.516(a)? No
Identification of Major Federal Programs:
Name of Federal Program or Cluster Assistance Listing Number(ALN)
U.S.Department of Transportation
Highway Planning and Construction Cluster 20.205
U.S. Department of the Treasury
Coronavirus State and Local Fiscal Recovery Funds(COVID-19) 21.027
Dollar Threshold Used to Distinguish Between Type A and Type B Programs $750,000
Auditee qualified as low-risk auditee? Yes
11. Financial Statement Findings
None noted.
III. Federal Award Findings and Questioned Costs
None noted.
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CITY OF ROUND ROCK,TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended September 30,2022
Federal regulations,Title 2 U.S. Code of Federal Regulations §200.511 states, "The auditee is responsible for follow-up and
corrective action on all audit findings. As part of this responsibility, the auditee must prepare a summary schedule 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 listed as
corrected,or no longer valid or not warranting further action.
The Summary Schedule of Prior Audit Findings for the year ended September 30, 2022 has been prepared to address these
requirements.
I. Prior Audit Findings
None noted.
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CITY OF ROUND ROCK,TEXAS
CORRECTIVE ACTION PLAN
For the Year Ended September 30,2022
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 30,2022 has been prepared to address these requirements.
I.Corrective Action Plan
Not applicable.
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