R-2025-054 - 2/27/2025 RESOLUTION NO. R-2025-054
WHEREAS,the City of Round Rock's Annual Comprehensive Financial Report("Report")for the
fiscal year ended September 30, 2024 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, 2024, 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 27th day of February, 2025.
1,4 11M1
C ORGA Mayor
City ofRound Texas
AT ST:
FRANKLIN, City Clerk
0112.20252;4928-3934-3642
ROUND ROCK TEXAS
City of Round Rock, Texas
Annual Comprehensive Financial Report
Fiscal Year Ended September 30, 2024
ELECTED OFFICIALS
Craig Morgan, Mayor
Kristin Stevens, Mayor Pro - Tem
Michelle Ly, Council Member
Rene Flores, Council Member
Frank Ortega, Council Member
Hilda Montgomery, Council Member
Melissa Fleming, Council Member
MANAGEMENT STAFF
Brooks Bennett
City Manager
Brad Wiseman
Assistant City Manager
OFFICIAL ISSUING REPORT
Susan L. Morgan, CPA
Chief Financial Officer
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TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal 1
City Organizational Chart 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 34
Statement of Activities 36
Fund Financial Statements:
Governmental Funds:
Balance Sheet 38
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 40
Statement of Revenues, Expenditures and Changes in
Fund Balances 42
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities 44
Statement of Revenues, Expenditures and Changes in Fund Balance—
Budget and Actual—General Fund 45
Statement of Revenues, Expenditures and Changes in Fund Balance—
Budget and Actual—Round Rock Transportation and Economic
Development Corporation Fund 46
Statement of Revenues, Expenditures and Changes in Fund Balance—
Budget and Actual - Roadway Impact Fees 47
Proprietary Funds:
Statement of Net Position 48
Statement of Revenues, Expenses and Changes in Net Position 50
Statement of Cash Flows 51
Notes to the Financial Statements 53
Required Supplementary Information
Texas Municipal Retirement System(TMRS) Plan -Schedule of Changes in the Net
Pension Liability and Related Ratios 104
Texas Municipal Retirement System(TMRS) Plan -Schedule of Contributions 106
Schedule of Changes in the Total OPEB Liability and Related Ratios 108
TABLE OF CONTENTS
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds:
Combining Balance Sheet-Nonmajor Governmental Funds 112
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances-Nonmajor Governmental Funds 114
Schedules of Revenues, Expenditures and Changes in Fund Balances—
Budget and Actual:
General Fund 118
Debt Service Fund 122
Nonmajor Special Revenue Funds:
Community Development Block Grant 123
Hotel-Motel Occupancy Tax 124
Hotel-Motel Occupancy Venue Tax 125
Innovation and Development 126
Library and Recreational 127
Public Safety 128
Public Education&Government 129
STATISTICAL SECTION(UNAUDITED):
Financial Trends:
Net Position by Component—Last Ten Fiscal Years 132
Changes in Net Position—Last Ten Fiscal Years 134
Fund Balances of Governmental Funds—Last Ten Fiscal Years 138
Changes in Fund Balances of Governmental Funds—Last Ten Fiscal Years 140
Revenue Capacity:
Actual and Taxable Assessed Value of Property—Last Ten Fiscal Years 142
Property Tax Rates—Direct and Overlapping Governments
Per$100 of Assessed Value—Last Ten Fiscal Years 143
Principal Property Taxpayers—Current Year and Nine Years Ago 144
Property Tax Levies and Collections—Last Ten Fiscal Years 145
Sales Tax and Ad Valorem Tax—Last Ten Fiscal Years 146
Taxable Sales by Category—Last Ten Calendar Years 148
Hotel Taxpayers 150
Hotel Occupancy Tax Collection History by Quarter—Last Ten Fiscal Years 151
Debt Capacity:
Ratios of Outstanding Debt by Type—Last Ten Fiscal Years 152
Ratios of Net General Bonded Debt Outstanding to Assessed Value and Net
Bonded Debt Per Capita—Last Ten Fiscal Years 153
Computation of Direct and Overlapping Governmental Activities Debt 154
Legal Debt Margin Information—Last Ten Fiscal Years 156
Condensed Utility Statement of Operations- Last Ten Fiscal Years 158
Demographic and Economic Information:
Demographic and Economic Statistics—Last Ten Fiscal Years 161
Principal Employers—Current Year and Nine Years Ago 162
TABLE OF CONTENTS
Operating Information:
Full-time Equivalent City Government Employees by Function - Last
Ten Fiscal Years 163
Operating Indicators by Function - Last Ten Fiscal Years 164
Capital Asset Statistics by Function - Last Ten Fiscal Years 166
Top Ten Water Customers 168
Water and Wastewater Retail Rates 169
SINGLE AUDIT SECTION:
Schedule of Expenditures of Federal Awards 171
Notes to Schedule of Expenditures of Federal Awards 172
Independent Auditors' Report on Internal Control Over Financial 173
Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
Independent Auditors' Report on Compliance for Each Major Federal Program 175
and on Internal Control Over Compliance Required by the Uniform Guidance
Schedule of Findings and Questioned Cost 178
Summary Schedule of Prior Audit Findings 179
Corrective Action Plan 180
No Text
Mayor Councilmembers City Manager
Craig Morgan Michelle Ly Brooks Bennett
Rene Flores
Melissa Fleming
ROUND ROCK TEXAS Mayor Pro-Tem Frank Ortega City Attorney
JADMINISTRATION Kristin Stevens Hilda Montgomery Stephanie L. Sandre
February 3,2025
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,
2024, 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, 2024.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 MD&A 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 XI 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.
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CITY OF ROUND ROCK 221 East Main Street, Round Rock,Texas 78664
[P]512.218.5401 .[F]512.218.7097•round rocktexas.gov
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
• 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
• Be recognized as a financially responsible City by maintaining a "AAA" bond rating
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
• Maintain,upgrade and expand regional wastewater system
• Maintain road infrastructure
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
• • Maintain community where people prefer to live and work
• Diversify housing opportunities and ownership opportunities
• Expand education campuses and programs
• Retain medical/healthcare businesses
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Authentic Downtown- Exciting Community Destination
• Increase public and commercial use of Brushy Creek
• Expand housing opportunities:townhomes,apartments,condos
• Complete the Depot development
• Increase Downtown connectivity with Brushy Creek/Lake Creek
• More attractive,aesthetically pleasing Downtown
• Expand retail businesses and day-time foot traffic
Sustainable Neighborhoods
• Be a safe community
A • Upgrade older housing stock:exterior and interior
• Upgrade neighborhood parks and open spaces
^
• Increase neighborhood connectivity through streets and trails
A • Maintain positive working relationships with homeowner associations/neighborhood
associations
• Repair and upgrade neighborhood infrastructure: streets, sidewalks, utilities, fences,
streetscapes
"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
The budget adopted for fiscal year 2025 reflects a fiscally responsible approach to improving the City's infrastructure and
meets current demands while maintaining the City's strong financial position.
Economy
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 2015 to the projected population for 2025, the City of Round Rock will have experienced 10-year
population growth of 29%. 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 228,000 in Greater Round Rock,
which includes the City limits and the City's extraterritorial jurisdiction (ET1). 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 1 by Bankrate.com as one of the"Best Places to Live"
• Ranked number 1 by Milkeninstitute.org as one of the"Best Performing Cities"
• Ranked number 4 by Rocket Mortgage as one of their"Fastest Growing Cities in the US"
• Ranked number 17 by SmartAsset.com as one of the"Safest Cities in America"
• Awarded the "Leading the Way Award" for the second year in a row, 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 set 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.
Round Rock is home to Dell's global headquarters and is the largest employer in Round Rock with an estimated 12,000
employees in 2024. Since Dell relocated to Round Rock in 1994 their economic impact on the City has been
transformative. The City and Dell's partnership has spanned over thirty years and has transformed Round Rock into a hub
of economic and technological development. Dell remains the City's largest property and sales taxpayer. The company's
commitment to Round Rock along with the business and employment opportunities they continue to bring keeps them a
major driver to the City's economy.On April 25, 2024,the City extended their existing economic development agreement
with Dell from 2053 to 2099, lengthening Dell's commitment to Round Rock and the corresponding economic benefits for
an additional 46 years.
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 900 people with an annual average salary of at least$50,000.
Kalahari Resorts and Conventions made its debut in Round Rock in November 2020,with an estimated 700 employees
in 2024. 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 223,000 square-foot indoor/outdoor water park with a recent expansion. 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. 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 totaling 440,000 square-feet. Amazon
is expanding its Round Rock presence, building a distribution center, data center, and electrical substation on a 149-acre
site on the City's southwestern side. This new project is scheduled to be complete in 2025 and to create another 150—
200jobs.
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 six 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.
Round Rock is the new home of Ametrine, Inc., a camouflage systems manufacturer which relocated from Maryland.
Ametrine brought 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 invested an estimated $8.6 million in business
personal property and real property improvements and signed a lease at the facility for at least 10 years.
Triple Temp Cold Storage LLC opened a new cold storage and manufacturing facility in southwest Round Rock on
November 2, 2023. The facility is 125,000 square feet on a 10-acre site near Bratton Lane with 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 are the first to market in the Austin-Round Rock area,
strategically located in central Texas along the 1-35 corridor.
Valex Corporation, a leading manufacturer of ultra-high purity process components used in the semiconductor,TFT/LCD
and solar industries, opened its first Texas facility in Round Rock. The company currently operates three other
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.
On the Horizon
Tekscend Photomasks Corp., formally known as Toppan Photomasks, first established its U.S. presence in Round
Rock in 1986 and is an advanced manufacturer of photomasks, which is a key component in the process of creating a
semiconductor chip that is used by global companies such as Samsung, Texas Instruments, and others. Due to new
funding opportunities through the U.S. CHIPS & Science Act, Tekscend had been evaluating opportunities to modernize
and expand to meet the demands of the rapidly advancing global semiconductor industry while also competing with
China. After evaluating investment opportunities worldwide and in the U.S., Tekscend selected its existing Round Rock
location to move forward with a near $200 million expansion and modernization project that will create at least 50 new
jobs.
KoMiCo is a semiconductor equipment parts cleaning,coating,and repair company based in Round Rock and has begun
a 40,000 square-foot expansion that will bring additional jobs and is expected to be completed by late 2025.
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 5® 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 recently announced plans to open another data center
less than a mile away from their current one under construction. 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.
Sabey Data Centers(SDC), a premier colocation data center provider, broke ground in July 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 84-megawatt
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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 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.The Texas Advanced Computing Center(TACC) at The University of Texas at Austin
announced in August 2024 that Sabey will be home to its Horizon supercomputer. Horizon is part of the nation's National
Science Foundation-funded leadership class computing program that is expected to revolutionize research for the coming
decade.
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. On December 4, 2024,Texas State University held a groundbreaking ceremony for Esperanza Hall,the first new
academic building since Willow Hall opened in 2018, and 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. Esperanza Hall is expected to be completed in July 2026.
Austin Community College continues to expand its presence in Round Rock. A November 2022 bond proposition
passed for another expansion to the Round Rock campus for Skilled Trades, Advanced Manufacturing, and Health
Sciences programs with the groundbreaking ceremony on November 22, 2024. This expansion will include two new
buildings, as well as renovations of current facilities. This new addition complements the 2018 completion of a $33
million, 45,000 square-foot expansion featuring the college's third state-of-the-art ACCelerator with more than 140
computers,advanced science labs and classrooms.
In January 2023, Baylor Scott&White broke ground on a $220 million expansion of their already extensive 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,expended emergency department,and other
facility support,as well as more patient beds.The expansion is expected to be completed in 2026.
In September 2024,Ascension Seton Williamson broke ground on a $230 million expansion to their Round Rock
campus.The expansion features a six-story tower totaling 216,000 square-feet with 160 patient rooms,two operating
rooms, more department space,a build-out of nearby medical plaza to add outpatient and rehab care and add over 400
positions.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 $110.8 million in sales tax revenue for fiscal year 2025, 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 $80.7 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 fund 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, is limited to 15%from FY 2024 and 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 2024 and the results showed a retail water and wastewater rate increase was
needed for the next several years.The City's water and wastewater new retail rates went into effect November 1,2024.
The City continues to plan 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 April 2024, the City's AAA bond rating on its general obligation debt was affirmed by S&P Global (S&P), the highest
rating of creditworthiness. The City also maintains its AAA rating on its utility systems revenue debt and its BCRUA
obligations.The City is one of only eight(8) cities in Texas with AAA bond ratings on both its general obligation and utility
revenue debt. S&P notes these ratings "reflect(ed] a strong economy and maintenance of a strong financial
position (and)very strong management,with strong financial policies and practices."
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.
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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, 2023. This was the thirty-eighth consecutive year that the City has
achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized annual comprehensive financial report.This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive
financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
In addition, the City of Round Rock also received the GFOA's Distinguished Budget Presentation Award for its annual
budget document for the fiscal year beginning October 1, 2023, for the twenty-seventh consecutive year. 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.
The GFOA also awarded the City a Certificate of Outstanding Achievement in Popular Annual Financial Reporting for the
fiscal year ended September 30, 2023. 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 2024, GFOA awarded the City the "Triple Crown" award which recognized Round Rock for receiving all
three GFOA awards for fiscal year 2023: 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
Reporting.
The City's investment policy was awarded the Certificate of Distinction by the Government Treasurers' Organization of
Texas (GTOT) in June 2024. This is the fourth 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.
The City of Round Rock has earned 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. In 2024 the Texas Comptroller introduced a new
transparency star Open Government and Compliance,and the City was awarded the 6th and final star in January 2025.
Round Rock's City Manager, Laurie Hadley, retired December 2024 after leading the City for nearly 14 years. Prior to her
retirement, City Council appointed Brooks Bennett, former Assistant City Manager,to become the City Manager effective
December 8, 2024. Brooks started his career with the City in 2004 and has served as one of Round Rock's Assistant City
Managers since 2015.
8
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 the 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,
Brooks Bennett
City Manager
Susan L. Morgan,CPA
Chief Financial Officer
oo�w* 0'�Lw* 0:��
TRANSPARENCY TRANSPARENCY TRANSPARENCY TRANSPARENCY TRANSPARENCY TRANSPARENCY
STAR STAR STAR STA/ STAR STAR
Texas Comptroller Texas Comptroller Texas Comptroller Tacas Comphoiler Texas Comptroller Texas Comptroller
TRADITIONAL FINANCES SKIT ONLIOATIONS ECONOMIC DEVELOPMENT FOOLIC PENSION$ CONTRAC IS A IIIOCOIIEMENT OPEN OOV[SNM[NT•COMPLIANCE
9
CITY OF ROUND ROCK, TEXAS
CITY ORGANIZATIONAL
Citizens of Round Rock
Municipal Judge Mayor& Council City Attorney
City Manager's Office
Administration Information Technology
Communications 8. Marketing Library
Community& Neighborhood Services Parks& Recreation
Finances Planning 8 Development Services
Fire Police
General Services Public Works
Human Resources Sports Management&Tourism
10
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, 2023
11
12
Austin Office
on 3600 N.Capital of Texas Hwy.
whitleypenri 250
• BldgBSuite78
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 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 30,2024,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, 2024, and the respective changes in
financial position, the respective budgetary comparison statements for the General Fund, Round Rock
Transportation and Economic Development Corporation Fund, and Roadway Impact Fees 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
(GARS)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
0HLB
WE ARE AN INDEPENDENT MEMBER OF
THE GLOBAL ADVISORY 13
AND ACCOUNTING NETWORK
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 3,2025,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.
cWA;- iey
Austin,Texas
February 3,2025
15
r� C07)
16
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
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, 2024. 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, 2024, by $1,345,131,974 (net position). Of this amount, $889,266,619 (66.1%) is
invested in capital assets. Net position restricted for specific purposes totals $185,013,169 (13.8%). The remaining
amount, $270,852,186 (20.1%) (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 $98,007,114.The increase can be attributed to $67.4 million
of operating and capital grants and contributions from both governmental and business-type activities. Grants and
contributions decreased $4.4 million compared to the previous year due to lower contributions from third parties and
grants for road construction in fiscal year 2024 due to timing of projects. Total general revenues increased $15.9
million. Year over year, property taxes increased $7.7 million, sales tax was relatively stable with a decrease of $1.0
million due to an audit adjustment of the Comptroller of Public Accounts that reduced fiscal year 2024 receipts by
$2.4 million as more fully described in Note IV(F) to the financial statements. Hotel Occupancy Tax decreased slightly
by$0.1 million,or 0.7%,due to moderating average daily room rates.
• As of the close of the current fiscal year, the City of Round Rock's governmental funds reported combined ending
fund balances of $342,740,190, an increase of $33,356,256 in comparison to the prior year. The increase is due to
capital grants and contributions combined with higher revenues including increases of $7.7 million in property tax
revenues and $9.4 million in investment and other revenues. The increase in revenues was offset by an increase in
expenditures of $20.0 million compared to last year. The increase in expenditures is primarily related to capital
project costs and personnel. Unassigned fund balance of$73,794,519, or 21.5%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 $73,794,519, or 48.3%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$38,203,069.The General Fund's total fund balance, $74,200,618, is 94.2% more
than the fund balance policy requirement.
• The City of Round Rock's total debt increased by $19,637,954 during the current fiscal year. In May 2024 the City
issued $19,495,000 voter approved general obligation debt, $19,475,000 in certificates of obligation and $7,565,000 in
limited tax note debt offset by $26 million of regularly scheduled debt principal retirements (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, 2024
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,the Self-Financed Construction Fund, and Roadway
Impact Fees Fund, all of which are considered to be major funds. Data from the other seven (7) 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 Roadway Impact Fees Fund has been deemed a major fund for the current fiscal year. As a result, a restatement of
fund balance recognizes that change in presentation.
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.
18
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
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
other post-employment benefits (OPEB) liability as of September 30, 2024. 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.
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 102 of this report.
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.
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$1,345,131,974 as of September 30,2024.
The largest portion of the City's net position, $889,266,619 (66.1%) reflects its investments in capital assets (e.g., land,
buildings and improvements, improvements other than buildings, machinery and equipment, right-to-use lease
equipment, right-to-use subscriptions,and construction in progress), less any spent and outstanding debt used to acquire
those assets. 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, $185,013,169 (13.8%) represents resources that are subject to external
restriction on how they may be utilized. Restricted net position decreased $11.8 million, or 6.0%, compared to the prior
year. Restricted net position for the governmental activities decreased $11.7 million, a result of a decrease in funds
19
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
available for capital projects. The remaining balance is unrestricted net position of $270,852,186 which may be used to
meet the City's ongoing obligations to citizens and creditors.
As of September 30,2024,and 2023,the City has 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.
Net Position
(in thousands)
Governmental Business-Type
Activities Activities Total
2024 2023 2024 2023 2024 2023
Current and other assets $ 395,302 $ 359,561 $ 254,785 $ 24S,993 $ 650,087 $ 605,554
Capital assets 883,460 820,576 447,490 423,025 1,330,950 1,243,601
Total assets 1,278,762 1,180,137 702,275 669,018 1,981,037 1,849,1SS
Deferred outflows of resources 31,633 43,004 7,215 9,073 38,848 52,077
Long term liabilities 481,182 462,152 67,743 72,910 548,925 535,062
Other liabilities 89,376 83,999 30,379 31,148 119,755 115,147
Total liabilities 570,558 546,151 98,122 104,058 668,680 650,209
Deferred inflows of resources 5,414 3,552 660 347 6,074 3,899
Net position:
Net investment in capital assets 499,732 461,229 389,534 361,729 889,266 822,958
Restricted 174,686 186,392 10,327 10,428 185,013 196,820
Unrestricted 60,005 25,817 210,848 201,529 270,853 227,346
Total net position $ 734,423 $ 673,438 $ 610,709 $ 573,686 $ 1,345,132 $ 1,247,124
Total Net Position
Governmental&Business-Type Activities
(in millions)
$1,600
$1,400
■ Unrestricted
$1,200
$1,000 ■ Restricted
$800 Net investment in
capital assets
$600
$400
$200
2020 2021 2022 2023 2024
20
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
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
30,2024,with comparisons to the previous year.
Changes in Net Position
(in thousands)
Governmental Business-Type
Activities Activities Total
2024 2023 2024 2023 2024 202
Revenues:
Program revenues:
Charges for services $ 13,343 $ 14,439 $ 69,827 $ 72,166 $ 83,171 $ 86,605
Operating grants and
contributions 4,045 4,950 2,734 308 6,779 5,258
Capital grants and contributions 22,421 27,815 38,165 38,688 60,586 66,503
General revenues:
Property taxes 81,719 74,006 - - 81,719 74,006
Franchise taxes 7,868 8,018 7,868 8,018
Sales tax 103,712 104,714 103,712 104,714
Hotel occupancy tax 16,928 17,048 16,928 17,048
Public service taxes 1,199 1,158 - - 1,199 1,158
Investment earnings and other 36,092 31,393 11,735 7,004 47,827 38,397
Total revenues 287,327 283,541 122,461 118,166 409,789 401,707
Expenses:
General government 48,574 48,259 - - 48,574 48,259
Public safety 85,294 78,793 85,294 78,793
Public works 47,492 46,225 47,492 46,225
Culture and recreation 39,500 34,899 39,500 34,899
Interest on long-term debt 10,636 11,000 10,636 11,000
Issuance costs 731 - - - 731 -
Water and wastewater utility - 75,164 68,229 75,164 68,229
Golf course - - 4,390 4,104 4,390 4,104
Total expenses 232,227 219,176 79,554 72,333 311,781 291,509
Increases in net position before
transfers 55,099 64,365 42,907 45,833 98,008 110,198
Transfers 5,885 5,605 (5,885) (5,605) - -
Increase in net position 60,984 69,970 37,022 40,228 98,008 110,198
Net position-beginning 673,439 603,469 573,687 533,459 1,247,126 1,136,928
Net position-ending $ 734,423 $ 673,439 $ 610,710 $ 573,687 $ 1,345,134 $ 1,247,126
Governmental Activities
During the current fiscal year, governmental activities increased the City's net position by $60,984,656 or 62.2% 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:
21
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
Revenues
• Amounts received for property taxes increased from last year by 10.4% due primarily to $609 million in new taxable
property and a 8.6% increase in the property tax rate. The fiscal year 2024 tax rate of $0.342 is 8.1% above the
no-new-revenue rate of$0.316334. Property tax makes up 33.0%of total general revenues.
• Sales tax collections of$103.7 million was a 1.0%,decrease compared to prior year. Dell remains one of the City's top
sales taxpayers for fiscal year 2024. Despite modest increases in the underlying growth in taxable sales, sales tax
receipts declined slightly due to $2.4 million in repayments to the Comptroller of Public Accounts for an audit of one
City sales taxpayer for prior year overpayments.
• Hotel occupancy tax (HOT) revenues totaled $16.9 million compared to $17.0 million in the prior year, down 0.7%
from the prior year. The slight decrease is due to stable room counts with slightly decreasing average daily room
rates(ADRs)after notable increases in ADRs in 2023.
• Charges for services decreased $1.1 million, or 0.8% below the prior year.The decrease was due to lower subdivision
development fee collections. Development across the City declined in 2024 due to changes in market conditions and
other economic factors.The decrease was partially offset by increases in demand for services in the City's recreation
programs and pool facilities.
• Grants and contribution revenues decreased $6.3 million over the prior year. The decrease is due to lower
reimbursements from grant program one-time receipts in the prior year and lower capital contributions from slowing
new residential development.
• Unrestricted investment earnings and other general revenues increased $4.7 million.The increase can be attributed
to rising investment interest rates.
Revenues by Type-Governmental Activities
Sales taxes Hotel occupancy tax
5.9%
36.1%
Public service taxes
0.4%
Investment earnings
12.6%
Franchise taxes—/
2 7% � Charges for services
4.6%
Operating grants and
contributions
Property taxes 1.4%
28'5% Capital grants and
contributions
7.8%
22
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
Expenses
Expenses for governmental activities for the City totaled $232,228,186 for the year ended September 30,2024. Significant
factors are listed below:
• General government costs increased $0.3 million (0.7%) from $48.3 million in 2023 to $48.6 million in 2024.The $6.1
million increase in 2024 operating costs was offset by a decrease in capital asset additions and lower pension liability
adjustment.
• Public safety program costs including police and fire department activities totaled $85.3 million, or 36.7% of total
expenses for governmental activities. Total costs increased 8.3% over the prior year, due largely to personnel costs
from new public safety positions and public safety salary increases.
• Public works program costs increased $1.3 million, or 2.7%, compared to prior year.The increase is primarily a result
of increased salary expenses.
• Culture and recreation increased $4.6 million (13.2%) from $34.9 million in 2023 to $39.5 million.This increase is due
to salary expenses,expansions and expenses associated with increased special events and programs and a full year of
operations for the new Round Rock Public Library.
Expenses-Governmental Activities
(in thousands)
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000 ..
General Public safety Public works Culture and Interest on
government recreation long-term debt
■2024 ■2023
23
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
Business-Type Activities
Business-type activities increased the City's net position by$37,022,458 or 37.8%of the total growth in the net position of
the City over the prior year. This increase can be attributed to $40.9 million in operating and capital grants and
contributions. Additionally, charges for services were down $2.3 million, due to a milder, wetter summer and expenses
increased by$7.2 million over the prior year. Key factors for the increase in net position are as follows:
Revenues
Water revenues are highly impacted by weather fluctuations. The milder summer conditions resulted in lower water
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. Small rate increases in water, wastewater and stormwater are
scheduled for fiscal years 2025 through 2027 due to planned capital infrastructure projects.
Revenues- Business-Type Activities
Water,Wastewater and Stormwater
Capital grants and
contributions
32.3%
Charges for-------
services
or__=–
services
55.5% — Operating grants
and contributions
2.3%
Investment
earnings&other
9.9%
24
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
Comparative data for the past two fiscal years is presented as follows:
2024 2023
Operating revenues $ 65,400,556 $ 68,264,956
Operating income(loss) (7,592,363) 2,368,005
Income available for debt service 32,511,627 33,664,516
Annual debt service 5,948,181 5,956,631
Coverage 5.47 5.65
Expenses
Expenses of the business-type activities increased $7.2 million over the prior year due to increased personnel costs to
keep up with market as well as lower position vacancy rates; increased contractual services expense due to litigation and
consulting costs associated with the City's wholesale water and wastewater rate litigation; and higher depreciation and
amortization expense.
Expenses- Business-Type Activities
(in thousands)
$80,000
$70,000
$50,000
$50,000
$40,000
$30,000
$20,000
$10,000
Water and wastewater utility Golf course
■2024 ■2023
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
25
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
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, 2024,the City's governmental funds reported combined ending fund balances of
$342,740,190. This is an increase of $33.4 million, or 10.8% change from the prior year. Unassigned fund balance is
$73,794,519, or approximately 21.5% of the total fund balance amount, is available for spending at the City's discretion.
$2,989,436 is assigned to culture and recreation while $55,443,165 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 available for new spending because it has already been restricted to 1) pay debt service of $7,804,285, 2)
fund authorized construction of $181,119,801, 3) other restricted purposes of $21,182,885 or 4) non-spendable of
$406,099.
Fund Balance Type-Governmental Funds
Committed
/ 16.2%
Assigned
0.9%
Restricted
61.3%
_- Unassigned
11121.5%
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 $74,200,618, of which $73,794,519, or 99.5% 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 48.3%of total general fund expenditures.
During the current fiscal year, the fund balance of the General Fund increased by $10,501,265 due primarily to savings in
salary and other budgeted costs with a modest increase in revenue over budget. The General Fund's total revenues
increased $10,870,521 and exceeded the budget by $1,823,996 primarily from higher electric franchise fees, increased
recreation revenues due to higher demand for programs, and higher interest income due to rising interest rates. The
increase in revenues was offset by an increase in expenditures totaling $14,595,678, a result of 37 new General Fund
positions added in 2024; salary increases to keep up with market and cost of living; and increases in overall operating
costs.
The Debt Service Fund had a total fund balance of$5,421,856 at the end of the fiscal year,all of which is restricted for the
payment of debt service. Fund balance increased during the year by $1,311,744. Debt service expenditure requirements
increased by$3,990,331 during the fiscal year and were adequately funded by the debt service portion of the property tax
rate and other contributions.
26
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
The fund balance of the RRTEDC Fund was $171,686,223, an increase of $46,871,958 compared to the prior year. The
increase can be attributed to the change in market conditions on investment earnings as well as an increase in
reimbursements for related capital project expenses.
The fund balance of the Debt-Financed Capital Projects Fund was $9,429,747, a decrease of$26,721,315 compared to the
prior year as planned projects were constructed.
The fund balance of the Self-Financed Construction Fund was $51,812,417, an increase of $4,535,388 compared to the
prior year. Sales tax revenues contributed to the fund were $11.0 million, up slightly from the prior year by $1.0 million.
The City has policies to limit General Fund dependency on sales tax by (1) limiting the percentage of general fund
expenditures paid by sales tax to 45% and (2) limiting General Fund sales tax received from Dell to 15%. The balance is
deposited in the General Self-Financed Construction Fund for pay-as-you-go, one-time capital expenditures. Capital
project expenditures paid by this fund increased by$4.4 million.
The fund balance of the Roadway Impact Fees Fund fluctuates based on interest earned on cash funds that represent
unearned revenues.
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
$608,920,562, an increase of$36,855,918 over the prior year. Unrestricted net position of the funds totaled $209,059,310
at September 30,2024.The unrestricted net position represented 34.3%of the enterprise funds'total net position.
The Water and Wastewater Fund's net position increased $36,868,620 over the prior year primarily due to an increase in
contributed infrastructure. Operating revenues totaled $65,400,556, compared to $68,264,956 in the prior year due to
milder, wetter conditions in 2024 that resulted in lower water revenues. Operating expenses were $72,992,919, an
increase of$7,095,968 over the prior year.The increase is a result of fewer personnel vacancies,as well as higher chemical
costs and repairs.
The Golf Course Fund ended the year with a net position of$11,744,651.Operating revenues totaled $4,259,813, a 13.1%
increase for the year, compared to $3,765,883 in the prior year. Operating expenses were $4,388,977, which is $284,883
higher than the previous year. Milder weather conditions in 2024 resulted in more rounds being played resulting in higher
revenues and slightly higher operating costs.
General Fund Budgetary Highlights
One budget amendment was taken to City Council for the General Fund for the year ended September 30, 2024. The
budget amendment increased funding in the Parks and Recreation Department to increase summer seasonal staffing and
upgrade 3 part-time employees to full-time status due to increased demands that were offset by the resulting increase in
programs 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, 2024, amounted to $1,330,949,726 (net of accumulated depreciation/amortization). This investment includes land,
27
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
buildings and improvements (including infrastructure), machinery and equipment, right-to-use lease equipment,
right-to-use subscriptions and construction in progress.
Major capital asset events for the year ended September 30,2024, included the following:
Downtown Improvements
• Construction is underway on the Griffith Building Remodel and new Paseo with $6.3 million spent to date.
• Design and land acquisition is underway on the Lawn at Brushy Creek with $3.7 million spent to date.
• Design is underway on the Town Green with $254,000 spent to date.
Facility Improvements
• City facility improvements were completed at a cost of$1.2 million.
• Information technology infrastructure upgrades were completed at a cost of$713,000.
• Construction is underway on the new Fire Station#1 with $9.1 million spent to date.
• Design is underway on the Public Safety Training Center Driving Track and Classroom Expansion with $537,000 spent
to date.
• Construction is underway on the Sports Center Expansion with$4.4 million spent to date.
• Construction is underway on the Dell Diamond Renovation&Expansion with$3.9 million spent to date.
• Design is under on the Multipurpose Sports Complex Expansion with$641,000 spent to date.
Park Improvements and Trails
• Design is underway on multiple Old Settlers Park Improvements projects with $4.8 million spent to date. These
projects include the Lakeview Pavillion, Rock'N River Expansion, New Recreation Center,Track and Fields, Maintenance
Yard,and Tennis and Pickleball Courts and are part of the 2023 voter approved bond program.
• Design is underway on improvements to Old Settlers Park's main roadway, Harrell Parkway,with $2.1 million spent to
date.
• Expansion of other citywide trails is underway with $27.1 million spent to date.
• Additional park and facility improvements were completed at a cost of$3.1 million.
Transportation Improvements
• Major arterial, signal, and road projects for transportation are underway and at various stages of completion.
Completed projects totaled $30.2 million while construction in progress at year-end approximated $50.7 million.
• Various neighborhood street improvement projects were completed at a cost of$6.2 million.
• Developers contributed $13.0 million for transportation infrastructure improvements.
Water,Wastewater.and Stormwater Improvements
• Various water and wastewater system improvement projects were completed and placed in service at a cost of$11.0
million and similar projects were in progress with $22.1 million spent to date.
• Various additional stormwater improvement projects were completed at a cost of$1.5 million and similar projects are
in process with $1.7 million spent to date.
• Developers contributed $32.4 million for water,wastewater,and stormwater system infrastructure improvements.
28
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
Capital Assets
(in thousands)
Governmental Business-Type
Activities Activities Total
2024 2023 2024 2023 2024 2023
Land $ 136,538 $ 124,457 $ 9,523 $ 9,463 $ 146,061 $ 133,920
Buildings and improvements 1,151,007 1,117,465 703,555 658,277 1,854,562 1,775,742
Machinery and equipment 111,299 103,496 21,819 19,778 133,118 123,274
Right-to-use lease equipment 773 902 496 214 1,269 1,116
Right-to-use subscription assets 9,365 8,726 - - 9,365 8,726
Accumulated depreciation/amortization (639,119) (608,110) (318,184) (292,937) (957,303) (901,047)
Construction in progress 113,597 73,640 30,281 28,230 143,878 101,870
Total $ 883,460 $ 820,576 $ 447,490 $ 423,025 $ 1,330,950 $ 1,243,601
Additional information on the City of Round Rock's capital assets can be found in Note IV(E)to the financial statements.
Long-Term Debt
At the end of the current fiscal year,the City of Round Rock had total debt outstanding of$464,699,916. Of this amount,
$331,328,278 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 $26,120,938. Regularly scheduled debt
principal was retired during 2024. The City also issued $19,495,000 in general obligation bonds, series 2024; $19,475,000
in certificates of obligation bonds, series 2024; and $7,565,000 in limited tax notes, series 2024. Details of the new bond
issues can be found in Note IV(F)to the financial statements.
Long-Term Debt
(in thousands)
Governmental Business-Type
Activities Activities Total
2024 2023 2024 2023 2024 2023
General obligation bonds $ 158,870 $ 149,840 $ $ $ 158,870 $ 149,840
Certificates of obligation 155,955 143,025 - 155,955 143,025
Limited tax notes 10,885 5,155 - 10,885 5,155
Hotel tax revenue bonds 6,040 6,720 - 6,040 6,720
Sales tax revenue bonds 37,065 39,035 - 37,065 39,035
State infrastructure bank
loan 27,000 27,000 27,000 27,000
Notes payable - 601 - 601
Excess sales tax liability 6,624 - 6,624 -
Leases 298 503 467 53 765 556
Subscriptions 5,321 6,787 - - 5,321 6,787
Water and wastewater
revenue bonds - - 56,175 59,860 56,175 59,860
Total $ 408,058 $ 378,666 $ 56,642 $ 59,913 $ 464,700 $ 438,579
29
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
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 $4.1 billion of bonds. Of the maximum tax rate for debt service of
$1.50, the City uses $0.1035, or 6.9%. Of $82,116,022 levied in property taxes for the fiscal year ended September 30,
2024, 99.56% 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.
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 2024-2025 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
2024-2025 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 2024-2025, have been built based on a slowing but strong economy
impacting sales tax revenue growth and rising interest rates that have slowed development.
The City's economy is expected to generate approximately $110.8 million in sales tax revenue for fiscal year 2025. This
amount includes the 0.5%, or $30.1 million, in additional sales and use tax for roads and economic development. The
remaining 1.5%is projected to generate$80.7 million for general operations, property tax reduction,and capital projects.
The fiscal year 2025 (tax year 2024), certified taxable property value for Round Rock is $25.3 billion, an increase of 5.0%
from last year's $24.1 billion.The adopted property tax rate for fiscal year 2025 is $0.36 per $100 of valuation. The tax
rate is an increase of 2.9 cents over the no-new-revenue rate of $0.331466, and below the voter approval rate of
$0.360205.The 2.9 cent increase over the no-new-revenue tax rate allows the City to provide funding for debt payments
for general obligation bonds issued in 2024 and approved by voters in May 2023; 17 new public safety positions to keep
up with growth and staff voter approved bond projects, and additional staffing in parks and recreation related to voter
approved bond projects. With an adopted rate of $0.36, the City continues to have the lowest tax rate in Central Texas
and is among the lowest rates in the state for medium-sized cities.
30
CITY OF ROUND ROCK,TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
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 rate increases for retail water(5%),wastewater(2%), and stormwater(14%) budgeted for
fiscal year 2025. The City has not increased retail water rates since October 2018, retail wastewater rates since 2016, and
stormwater rates since 2014 to pay for planned infrastructure expansions.
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.
31
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BASIC FINANCIAL STATEMENTS
33
CITY OF ROUND ROCK,TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 39,575,116 $ 51,029,353 $ 90,604,469
Investments 138,807,776 128,279,373 267,087,149
Receivables (net of allowance for uncollectibles)-
Property taxes 487,743 - 487,743
Accounts and other 10,818,420 22,228,596 33,047,016
Accrued interest 946,232 3,998,049 4,944,281
Intergovernmental - 3,536,418 3,536,418
Grants 225,139 84,120 309,259
Interfund (1,769,689) 1,769,689 -
Inventories 321,519 946,044 1,267,563
Prepaid items 1,222,879 666,745 1,889,624
Restricted assets-
Cash and cash equivalents 80,063,995 3,551,918 83,615,913
Investments 121,307,983 7,894,397 129,202,380
Property tax receivable 273,349 - 273,349
Accounts and other 2,097,162 2,097,162
Accrued interest 924,682 53,797 978,479
Investment in joint venture - 30,728,186 30,728,186
Capital assets -
Land and construction in progress 250,135,410 39,803,770 289,939,180
Capital assets, net of accumulated
depreciation/amortization 633,324,542 407,686,004 1,041,010,546
Total assets 1,278,762,258 702,256,459 1,981,018,717
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refundings 135,134 3,170,364 3,305,498
Deferred outflows related to pensions 29,901,845 3,920,455 33,822,300
Deferred outflows related to OPEB 1,595,998 211,775 1,807,773
Total deferred outflows of resources 31,632,977 7,302,594 38,935,571
The accompanying notes are an integral part of this financial statement.
34
Governmental Business-Type
Activities Activities Total
LIABILITIES
Accounts payable $ 24,507,795 $ 13,705,215 $ 38,213,010
Accrued payroll 6,262,687 973,038 7,235,725
Unearned revenue 20,619,860 8,944,492 29,564,352
Accrued interest payable 2,125,891 348,722 2,474,613
Customer deposits - 11215,947 1,215,947
Due within one year
Bonds, notes, leases,compensated absences 35,859,524 5,172,946 41,032,470
Due in more than one year
Net pension liability 61,797,397 8,335,668 70,133,065
Total OPEB liability 17,382,047 2,363,438 19,745,485
Bonds, notes, leases,compensated absences 402,002,855 57,043,383 459,046,238
Total liabilities 570,558,056 98,102,849 668,660,905
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 667,111 87,466 754,577
Deferred inflows related to OPEB 4,747,008 659,824 5,406,832
Total deferred inflows of resources 5,414,119 747,290 6,161,409
NET POSITION
Net investment in capital assets 499,732,191 389,534,428 889,266,619
Restricted for-
Debt service 8,079,032 128,545 8,207,577
Capital projects 145,424,428 10,198,279 155,622,707
Hotel-motel tax 18,531,461 - 18,531,461
Public safety 1,071,385 1,071,385
General government 1,580,039 - 1,580,039
Unrestricted 60,004,524 210,847,662 270,852,186
Total net position $ 734,423,060 $ 610,708,914 $ 1,345,131,974
35
CITY OF ROUND ROCK,TEXAS
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities:
General government $ 48,573,651 $ 3,596,694 $ 3,967,000 $
Public safety 85,295,488 1,494,261 24,496
Public works 47,492,344 427,679 - 19,730,425
Culture and recreation 39,499,859 7,824,051 53,637 2,690,382
Interest on long-term debt 10,635,859 - - -
Issuance costs 730,985 - - -
Total governmental activities 232,228,186 13,342,685 4,045,133 22,420,807
Business-type activities:
Water and wastewater utility 75,163,447 65,567,096 2,734,262 38,165,493
Golf course 4,390,104 4,259,813 - -
Total business-type activities 79,553,551 69,826,909 2,734,262 38,165,493
Total primary government $ 311,781,737 $ 83,169,594 $ 6,779,395 $ 60,586,300
The accompanying notes are an integral part of this financial statement.
36
Net(Expense) Revenue and Changes in Net
Position
Primary Government
Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities:
General government $ (41,009,957) $ $ (41,009,957)
Public safety (83,776,731) (83,776,731)
Public works (27,334,240) (27,334,240)
Culture and recreation (28,931,789) - (28,931,789)
Interest on long-term debt (10,635,859) - (10,635,859)
Issuance costs (730,985) - (730,985)
Total governmental activities (192,419,561) - (192,419,561)
Business-type activities:
Water and wastewater utility 31,303,404 31,303,404
Golf course (130,291) (130,291)
Total business-type activities 31,173,113 31,173,113
Total primary government (192,419,561) 31,173,113 (161,246,448)
General revenues:
Taxes:
Property taxes, levied for general purpose 56,951,929 - 56,951,929
Property taxes, levied for debt service 24,767,280 - 24,767,280
Franchise taxes 7,868,254 - 7,868,254
Sales taxes 103,711,976 - 103,711,976
Hotel occupancy tax 16,927,611 - 16,927,611
Public service taxes 1,198,532 - 1,198,532
Unrestricted investment earnings and other 36,093,335 11,734,645 47,827,980
Transfers 5,885,300 (5,885,300) -
Total general revenues and transfers 253,404,217 5,849,345 259,253,562
Change in net position 60,984,656 37,022,458 98,007,114
Net position-beginning 673,438,404 573,686,456 1,247,124,860
Net position-ending $ 734,423,060 $ 610,708,914 $ 1,345,131,974
37
CITY OF ROUND ROCK,TEXAS
GOVERNMENTAL FUNDS BALANCE SHEET
SEPTEMBER 30, 2024
Round Rock
Transportation
and Economic
General Debt Service Development
Fund Fund Corporation Fund
ASSETS
Cash and cash equivalents $ 17,300,165 $ $
Investments 60,665,702
Receivables(net of allowance for uncollectibles)-
Property taxes,including interest and penalties 487,743 -
Accounts and other 7,699,516 1,933,752
Accrued interest 505,472 -
I nterfu nd 5,422 2,542,573
Grants 151,125 -
Inventories 321,519
Prepaid items 84,580 -
Restricted assets-
Cash and cash equivalents 1,033,713 5,428,676 57,122,280
Investments - - 112,597,680
Receivables-
Property taxes, including interest and penalties 273,349 -
Sales tax - 2,097,162
Accrued interest - - 887,035
Total assets $ 88,254,957 $ 5,702,025 $ 177,180,482
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES
Liabilities-
Accounts payable $ 6,490,246 $ $ 5,069,641
Accrued payroll 6,085,378 -
Interfund payables - 5,422 -
Unearned revenue 990,970 - 424,618
Total liabilities 13,566,594 5,422 5,494,259
Deferred inflows of resources-
Unavailable revenue-property taxes 487,745 274,747 -
Total deferred inflows of resources 487,745 274,747
Fund balances-
Nonspendable 406,099 - -
Restricted-debt service - 5,421,856 2,382,429
Restricted -authorized construction - 169,303,794
Restricted - hotel-motel tax -
Restricted - public safety
Restricted-general government
Committed-general government
Committed-capital projects funds
Committed-culture and recreation
Assigned -culture and recreation -
Unassigned 73,794,519 - -
Total fund balances 74,200,618 5,421,856 171,686,223
Total liabilities,deferred inflows of resources and
fund balances $ 88,254,957 $ 5,702,025 $ 177,180,482
The accompanying notes are an integral part of this financial statement.
38
Debt-Financed Self-Financed Other Total
Capital Projects Construction Roadway Impact Governmental Governmental
Fund Fund Fees Fund Funds Funds
$ $ 13,265,083 $ $ 6,037,572 $ 36,602,820
46,540,371 21,173,437 128,379,510
- - 487,743
- 1,154,517 10,787,785
185,813 186,840 878,125
18,663 - 2,566,658
- 74,013 225,138
- - 321,519
509,294 119,992 - 713,866
13,996,687 - 1,621,678 860,962 80,063,996
- 5,689,632 3,020,671 121,307,983
- - 273,349
- 2,097,162
- - 37,647 - 924,682
$ 14,505,981 $ 60,129,922 $ 7,348,957 $ 32,508,012 $ 385,630,336
$ 2,533,661 $ 8,317,505 $ - $ 878,090 $ 23,289,143
- - 177,309 6,262,687
2,542,573 - - 2,547,995
- - 6,728,262 1,883,979 10,027,829
5,076,234 8,317,505 6,728,262 2,939,378 42,127,654
- - - - 762,492
- 762,492
406,099
- - - 7,804,285
9,429,747 620,695 1,765,565 181,119,801
- - 18,531,461 18,531,461
- 1,071,385 1,071,385
- 1,580,039 1,580,039
- - 1,343,048 1,343,048
51,812,417 - 804,645 52,617,062
- - 1,483,055 1,483,055
- 2,989,436 2,989,436
- - - - 73,794,519
9,429,747 51,812,417 620,695 29,568,634 342,740,190
$ 14,505,981 $ 60,129,922 $ 7,348,957 $ 32,508,012 $ 385,630,336
39
CITY OF ROUND ROCK,TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
Total Fund Balances-Governmental Funds $ 342,740,190
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 $ 136,538,377
Construction in progress 113,597,033
Building and improvements 1,151,006,940
Equipment and right-to-use assets 121,436,902
Accumulated depreciation/amortization (639,119,300)
Total capital assets $ 883,459,952 883,459,952
Deferred amounts on refundings are deferred outflows of resources and, therefore, are not
reported in the funds. 135,134
Differences between expected and actual experiences, assumption changes and net differences
between projected and actual earnings and contributions subsequent to the measurement date for
the postretirement benefits(pension and OPEB)are recognized as deferred outflows of resources
and deferred inflows of resources on the statement of net position.
Deferred outflows-pension related $ 29,901,845
Deferred outflows-OPEB related 1,595,998
Deferred inflows-pension related (667,111)
Deferred inflows-OPEB related (4,747,008)
$ 26,083,724 26,083,724
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. 762,492
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. 11,001,331
Unearned revenue associated with long-term economic development agreements are not a current
financial resource and,therefore,are not reported in the funds. (10,592,049)
Accrued interest payable in the governmental funds are not recognized because they are not paid
within the prescribed time period after year end. (2,125,891)
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 111(A). (517,041,823)
Net Position of Governmental Activities $ 734,423,060
The accompanying notes are an integral part of this financial statement.
40
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41
CITY OF ROUND ROCK,TEXAS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30,2024
Round Rock
Transportation
and Economic
Debt Development
General Service Corporation
Fund Fund Fund
Revenues-
Taxes and franchise,
including interest and penalties $ 135,160,453 $ 24,646,584 $ 29,991,589
Licenses, permits and fees 2,620,586 - -
Charges for services 6,163,411 -
Fines and forfeitures 1,062,649 - -
Intergovernmental 2,951,528 - -
Hotel occupancy tax -
Contributions - - 4,257,712
Investment and other 9,772,742 1,058,819 9,548,678
Total revenues 157,731,369 25,705,403 43,797,979
Expenditures-
Current-
General government 29,881,975 - 2,376,032
Public safety 78,375,956 - -
Public works 19,915,678 - 426,574
Culture and recreation 21,907,441 - -
Debt service-
Principal retirement 2,537,315 22,104,512
Interest and fiscal charges 193,909 11,010,808
Issuance costs - - -
Capital projects - - 32,192,440
Total expenditures 152,812,274 33,115,320 34,995,046
Excess(deficiency)of revenues
over expenditures 4,919,095 (7,409,917) 8,802,933
Other financing sources(uses) -
Issuance of debt/leases/SBITA 701,304 -
Issuance of premium - - -
Transfers in 7,250,300 8,721,661 43,284,136
Transfers out (2,369,434) - (5,215,111)
Total other financing sources(uses) 5,582,170 8,721,661 38,069,025
Net change in fund balances 10,501,265 1,311,744 46,871,958
Fund balances,October 1, 2023,
as previously reported 63,699,353 4,110,112 124,814,265
Change within financial reporting entity
(nonmajor to major fund) - - -
Fund balances,October 1,2023,
beginning,as adjusted or restated 63,699,353 4,110,112 124,814,265
Fund balances,September 30,2024 $ 74,200,618 $ 5,421,856 $ 171,686,223
The accompanying notes are an integral part of this financial statement.
42
Debt-Financed Self-Financed Other Total
Capital Projects Construction Roadway Impact Governmental Governmental
Fund Fund Fees Fund Funds Funds
$ - $ 10,997,070 $ $ 142,602 $ 200,938,298
- 100,739 2,721,325
3,221,567 9,384,978
173,733 1,236,382
10,510,175 13,461,703
16,927,611 16,927,611
- 2,500,000 549,019 7,306,731
1,827,589 1,983,278 373,234 1,636,527 26,200,867
1,827,589 12,980,348 2,873,234 33,261,973 278,177,895
- 11151,966 - 11,177,941 44,587,914
11112,799 91,534 79,580,289
- - 20,342,252
7,531,697 29,439,138
25,036 24,666,863
- 1,284 11,206,001
730,985 - - 730,985
24,751,182 26,947,528 5,892,144 89,783,294
25,482,167 29,212,293 - 24,719,636 300,336,736
(23,654,578) (16,231,945) 2,873,234 8,542,337 (22,158,841)
46,535,000 - 189,258 47,425,562
2,204,235 - - 2,204,235
1,569,436 20,878,897 - 675,000 82,379,430
(53,375,408) (111,564) (2,500,000) (12,922,613) (76,494,130)
(3,066,737) 20,767,333 (2,500,000) (12,058,355) 55,515,097
(26,721,31 S) 4,535,388 373,234 (3,516,018) 33,356,256
36,151,062 47,277,029 - 33,332,113 309,383,934
- - 247,461 (247,461) -
36,151,062 47,277,029 247,461 33,084,652 309,383,934
$ 9,429,747 $ 51,812,417 $ 620,695 $ 29,568,634 $ 342,740,190
43
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 30,2024
Net Change in Fund Balances-Total Governmental Funds $ 33,356,256
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). 49,100,114
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). 13,783,379
Property tax revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. 184,356
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). (32,220,812)
Governmental funds do not report recognition of increases to lease or subscription debt.
In contrast,the Statement of Activities treats these as increases in long-term liabilities. (890,562)
Governmental funds report repayment of leases and subscriptions principal as
expenditures. In contrast, the Statement of Activities treats such repayments as a
reduction in long-term liabilities. 2,562,349
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 (2,586,000)
OPEB costs, net (1,101,450)
Interest and employee expense (2,119,004)
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. 916,030
Change in Net Position of Governmental Activities $ 60,984,656
The accompanying notes are an integral part of this financial statement.
44
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30,2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Taxes and franchise,
including interest and penalties $ 134,948,000 $ 134,948,000 $ 135,160,453 $ 212,453
Licenses, permits and fees 2,851,800 2,851,800 2,620,586 (231,214)
Charges for services 5,271,200 5,548,700 6,163,411 614,711
Fines and forfeitures 1,125,000 1,125,000 1,062,649 (62,351)
Intergovernmental 4,812,500 4,812,500 2,951,528 (1,860,972)
Investment and other 5,378,500 5,378,500 8,529,869 3,151,369
Total revenues 154,387,000 154,664,500 156,488,496 1,823,996
Expenditures-
Current-
General government 35,487,800 34,226,620 29,881,975 4,344,645
Public safety 80,507,100 80,851,721 78,375,956 2,475,765
Public works 22,737,500 23,190,482 19,915,678 3,274,804
Culture and recreation 22,698,200 23,439,277 21,907,441 1,531,836
Principal retirement - - 2,537,315 (2,537,315)
Interest and fiscal charges - - 193,909 (193,909)
Total expenditures 161,430,600 161,708,100 152,812,274 8,895,826
Excess(deficiency) of revenues
over expenditures (7,043,600) (7,043,600) 3,676,222 10,719,822
Other financing sources(uses) -
Issuance of debt/leases/SBITA - - 701,304 701,304
Transfers in 7,250,300 7,250,300 7,250,300 -
Transfers out (1,700,000) (2,369,434) (2,369,434) -
Total other financing sources(uses) 5,550,300 4,880,866 5,582,170 701,304
Net change in fund balances $ (1,493,300) $ (2,162,734) 9,258,392 $ 11,421,126
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 1,242,873
Fund balance, October 1,2023 63,699,353
Fund balance, September 30,2024 $ 74,200,618
The accompanying notes are an integral part of this financial statement.
45
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, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Sales tax $ 31,311,200 $ 31,311,200 $ 29,991,589 $ (1,319,611)
Intergovernmental 7,984,400 7,984,400 - (7,984,400)
Contributions 11,176,300 11,176,300 4,257,712 (6,918,588)
Investment and other 505,000 505,000 7,367,728 6,862,728
Total revenues 50,976,900 50,976,900 41,617,029 (9,359,871)
Expenditures -
Current-
General government 7,308,000 7,308,000 2,376,032 4,931,968
Public works 664,000 664,000 426,574 237,426
Debt Service-
Capital projects 95,832,900 95,832,900 32,192,440 63,640,460
Total expenditures 103,804,900 103,804,900 34,995,046 68,809,854
Excess(deficiency) of revenues
over expenditures (52,828,000) (52,828,000) 6,621,983 59,449,983
Other financing sources (uses) -
Transfers in 4,520,200 4,520,200 43,284,136 38,763,936
Transfers out (1,365,000) (5,215,111) (5,215,111)
Total other financing sources(uses) 3,155,200 (694,911) 38,069,025 38,763,936
Net change in fund balances $ (49,672,800) $ (53,522,911) 44,691,008 $ 98,213,919
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 2,180,950
Fund balance, October 1, 2023 124,814,265
Fund balance, September 30, 2024
$ 171 686.223
The accompanying notes are an integral part of this financial statement.
46
CITY OF ROUND ROCK,TEXAS
ROADWAY IMPACT FEES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Contributions $ 2,500,000 $ 2,500,000 $ 2,500,000 $ -
Investment and other - - 280,672 280,672
Total revenues 2,500,000 2,500,000 2,780,672 280,672
Other financing sources(uses) -
Transfers out (2,500,000) (2,500,000) (2,500,000) -
Total other financing sources(uses) (2,500,000) (2,500,000) (2,500,000) -
Net change in fund balances $ - $ 280,672 $ 280,672
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 92,562
Fund balances, October 1,2023,
as previously reported -
Change within financial reporting entity
(nonmajor to major fund) 247,461
Fund balance,October 1, 2023, 247,461
beginning,as adjusted or restated
Fund balance,September 30, 2024 620,695
The accompanying notes are an integral part of this financial statement.
47
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
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 $ 50,448,634 $ 580,719 $ 51,029,353 $ 2,972,297
Investments 127,959,663 319,710 128,279,373 10,428,266
Receivables(net of allowance for
uncollectibles of$1,287,166) -
Accounts and other 22,150,208 78,388 22,228,596 30,635
Accrued interest 3,995,340 2,709 3,998,049 68,127
Intergovernmental 3,536,418 - 3,536,418 -
G rants 84,120 84,120
Inventories 946,044 - 946,044 -
Prepaid items 471,171 195,574 666,745 509,012
Total current assets 209,591,598 1,177,100 210,768,698 14,008,337
Noncurrent assets:
Restricted cash,cash equivalents,
and investments:
Impact fees 3,150,794 3,150,794
Construction 6,993,688 6,993,688
Customer deposits 1,173,288 1,173,288
Revenue bond covenant accounts 128,545 128,545
Restricted accrued interest 53,797 - 53,797 -
Investment in joint venture 30,728,186 - 30,728,186 -
Capital assets:
Land and construction in progress 35,499,456 4,304,314 39,803,770 -
Capital assets being depreciated/amortized 400,421,232 7,264,772 407,686,004 -
Total capital assets(net of accumulated
depreciation/amortization of$318,183,944) 435,920,688 11,569,086 447,489,774 -
Total noncurrent assets 478,148,986 11,569,086 489,718,072 -
Total assets 687,740,584 12,746,186 700,486,770 14,008,337
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refundings 3,170,364 - 3,170,364 -
Deferred outflows related to pensions 3,920,455 3,920,455
Deferred outflows related to OPEB 211,775 211,775
Total deferred outflows of resources 7,302,594 - 7,302,594 -
The accompanying notes are an integral part of this financial statement.
48
Business-Type Activities Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
LIABILITIES
Current liabilities:
Accounts payable $ 13,384,923 $ 320,292 $ 13,705,215 $ 1,218,654
Accrued payroll 909,184 63,854 973,038 -
Accrued compensated absences 861,589 - 861,589 -
Unearned revenue 8,812,721 131,771 8,944,492 -
Accrued interest 348,722 - 348,722 -
Customer deposits 1,215,947 - 1,215,947 -
Interfund payable - 18,663 18,663 -
Lease payable - 119,949 119,949 -
Bonds payable 4,191,408 - 4,191,408 -
Total current liabilities 29,724,494 654,529 30,379,023 1,218,654
Noncurrent liabilities:
Net pension liability 8,335,668 - 8,335,668 -
Total OPEB liability 2,363,438 2,363,438
Noncurrent accrued compensated absences 229,030 - 229,030
Lease payable - 347,006 347,006
Bonds payable 56,467,347 - 56,467,347 -
Total noncurrent liabilities 67,395,483 347,006 67,742,489 -
Totalliabilities 97,119,977 1,001,535 98,121,512 1,218,654
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 87,466 - 87,466 -
Deferred inflows related to OPEB 659,824 659,824 -
Total deferred inflows of resources 747,290 747,290 -
NET POSITION
Net investment in capital assets 378,432,297 11,102,131 389,534,428 -
Restricted for:
Debt service 128,545 - 128,545 -
Capital projects 10,198,279 - 10,198,279 -
Unrestricted 208,416,790 642,520 209,059,310 12,789,683
Total net position $ 597,175,911 $ 11,744,651 608,920,562 $ 12,789,683
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. 1,788,352
Net position of business-type activities $ 610,708,914
49
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30,2024
Business-Type Activities Governmental
Enterprise Funds Activities
Water and
Wastewater Golf Course Internal
Fund Fund Total Service Fund
Operating revenues-
Charges for services $ 58,952,865 $ 4,259,813 $ 63,212,678 $ 18,986,956
Licenses, permits,and fees 6,447,691 - 6,447,691 -
Total revenues 65,400,556 4,259,813 69,660,369 18,986,956
Operating expenses-
Personnel services 18,437,608 - 18,437,608 -
Contractual services 21,436,997 3,811,161 25,248,158 3,589,871
Supplies 1,847,540 - 1,847,540 774
Repair and maintenance 2,698,093 360 2,698,453 -
Heat, light and power 2,901,029 63,177 2,964,206 7,293
Claims expense - - - 15,233,470
Depreciation and amortization 25,671,652 514,279 26,185,931 -
Total operating expenses 72,992,919 4,388,977 77,381,896 18,831,408
Operating income(loss) (7,592,363) (129,164) (7,721,527) 155,548
Nonoperating revenues(expenses) -
Investment and other revenues 14,432,338 36,569 14,468,907 927,021
Interest and fiscal charges (2,167,670) (3,985) (2,171,655) -
Total nonoperating
revenues(expenses) 12,264,668 32,584 12,297,252 927,021
Income before contributions
and transfers 4,672,305 (96,580) 4,575,725 1,082,569
Contributions and transfers-
Contributions- impact fees 5,282,517 5,282,517 -
Contributions - infrastructure 32,380,745 - 32,380,745 -
Contributions-other 418,353 83,878 502,231 -
Transfers out (5,885,300) (5,885,300) -
Total contributions and transfers 32,196,315 83,878 32,280,193 -
Change in net position 36,868,620 (12,702) 36,855,918 1,082,569
Net position, October 1, 2023 560,307,291 11,757,353 11,707,114
Net position, September 30,2024 $ 597,175,911 $ 11,744,651 $ 12,789,683
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 166,540
Change in net position of business-type activities $ 37,022,458
The accompanying notes are an integral part of this financial statement.
50
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2024
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 $ 61,703,107 $ 4,215,914 $ 65,919,021 $ 2,363,781
Cash received from other funds for services provided - - - 16,592,540
Cash payments to suppliers for goods and services (27,456,762) (3,792,773) (31,249,535) (18,714,997)
Cash payments to employees for services (17,586,704) 63,854 (17,522,850) -
Net cash provided (used) by
operating activities 16,659,641 486,995 17,146,636 241,324
Cash flows from noncapital financing activities:
Transfers to other funds (5,885,300) - (5,885,300) -
Net cash provided(used) by noncapital
financing activities (5,885,300) - (5,885,300)
Cash flows from capital and related
financing activities:
Proceeds from sale of capital assets 95,042 - 95,042
Acquisition and construction of capital assets (17,190,362) (952,855) (18,143,217)
Investment in joint venture 10,311,813 - 10,311,813
Liability associated with right-to-use assets (371) 414,252 413,881 -
Principal paid on revenue bonds (4,016,408) - (4,016,408) -
Interest paid on revenue,certificates of
obligation bonds,and leases (2,196,145) (3,985) (2,200,130) -
Contributions and grant proceeds 3,236,735 - 3,236,735 -
Impact fees 5,282,517 5,282,517 -
Net cash provided (used) by capital and
related financing activities (4,477,179) (542,588) (5,019,767) -
Cash flows from investing activities:
Purchase of investments (24,098,403) (131,023) (24,229,426) -
Proceeds from sale and maturities of investments 34,184,244 - 34,184,244 567,265
Investment and other income 8,327,098 35,915 8,363,013 920,699
Net cash provided (used) by
investing activities 18,412,939 (95,108) 18,317,831 1,487,964
Net increase(decrease) in cash and cash
equivalents 24,710,101 (150,701) 24,559,400 1,729,288
Cash and cash equivalents at beginning of year 29,290,451 731,420 30,021,871 1,243,009
Cash and cash equivalents at end of year $ 54,000,552 $ 580,719 $ 54,581,271 $ 2,972,297
(CONTINUED)
The accompanying notes are an integral part of this financial statement.
51
CITY OF ROUND ROCK,TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED SEPTEMBER 30,2024
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 $ 50,448,634 $ 580,719 $ 51,029,353 $ 2,972,297
Restricted assets-
Cash and cash equivalents 3,551,918 - 3,551,918 -
Cash and cash equivalents $ 54,000,552 $ 580,719 $ 54,581,271 $ 2,972,297
Reconciliation of operating income(loss)to
net cash provided(used) by operating activities
Operating income(loss) $ (7,592,363) $ (129,164) $ (7,721,527) $ 155,548
Adjustments to reconcile operating income
(loss)to net cash provided (used) by operating
activities:
Depreciation&amortization 25,671,652 514,279 26,185,931
Provision for bad debts 167,116 - 167,116 -
(Increase)decrease in:
Receivables (969,996) (51,392) (1,021,388) (30,635)
Inventory 10,341 - 10,341
Other assets (1,781) (56,666) (58,447) (99,236)
Pension related deferred outflows 1,651,171 - 1,651,171 -
OPEB related deferred outflows 257,711 - 257,711 -
Increase(decrease) in:
Accounts payable 1,418,337 138,591 1,556,928 215,647
Customer deposits (160,307) - (160,307) -
Accrued payroll 310,034 63,854 373,888
Unearned Revenue (2,734,262) 7,493 (2,726,769) -
OPEB related deferred inflows -
Net pension liability (1,272,024) (1,272,024)
Total OPEB liability (95,988) (95,988) -
Total adjustments 24,252,004 616,159 24,868,163 85,776
Net cash provided (used) by operations $ 16,659,641 $ 486,995 $ 17,146,636 $ 241,324
NOTES:
Noncash capital and related financing activities:
In fiscal year 2024,the Water and Wastewater Fund had $32,380,745 in capital assets contributed,recognized a change
of$2,274,839 in fair value of investments,and a change of$(10,311,813) in joint venture net position.
The accompanying notes are an integral part of this financial statement.
52
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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, a transportation system, 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 blended
component unit provides services entirely to the City for financial and economic benefits. 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, the Round
Rock Transportation and Economic Development Corporation Fund, and the Roadway Impact Fees Fund with
their actual results.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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.
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,
Self-Financed Construction Fund, and the Roadway Impact Fees 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.).
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NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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:
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 Funds
• Round Rock Transportation and Economic Development Corporation Fund
• Roadway Impact Fees 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
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 Roadway Impact Fees Fund is considered a major fund in the fund financial statements effective in fiscal
year ended September 30, 2024. It accounts for fees collected from developers to pay their share of roadway
improvements necessitated by and attributed to such new development.
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:
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Major Funds
• Debt-Financed Capital Projects Fund
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.
• Self-Financed Construction Fund
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. In fiscal year 2022,as part of the fiscal years 2023 budget adoption process.City Council adopted
revision to the financial policies.To reduce reliance on any single sales tax provider or group, all are
limited not to exceed 16% of total General Fund budgeted sales tax revenue, net of incentives in
fiscal year 2023 and 15% thereafter. Sales tax receipts, net of incentives, in excess of these amounts
will be budgeted and deposited in the Self-Financed Construction Fund. Secondly, expected or
realized sales tax total revenue in the General Fund exceeding 45% of the operating budget will be
recognized in the Self-Financed Construction Fund.All funds in the Self-Financed Construction Fund
are available for pay-as-you-go one-time capital expenditures or projects.
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 Water and Wastewater Fund is considered a major fund.
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.
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NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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 Statement
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.
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, but are not included in
the budget basis.The fair market value change is reported as a separate impact on fund balance below the net
change in fund balance.
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.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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
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 Poo(
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.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
J. JOINT VENTURE
The 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 equipment and right-to-use
subscriptions. 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.
In the government-wide statements, depreciation and amortization of plant, equipment, and the right-to-use
lease equipment and right-to-use subscriptions 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 lease equipment 5- 7 years
Right-to-use subscriptions Subscription term
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, as well as the 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 refunding 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
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt
issuance 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 for 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 revenue.
Revenue bonds, 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.
Principal and interest expenditures on lease and subscription 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 lease equipment and subscriptions, are reported as expenditures while
issuance of financing through leases and subscriptions 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.
Public Service employees with unused sick leave accrued after January 1, 1994, with ten (10) years service and a
current sick leave balance of at least four hundred (400) hours, will receive a lump sum payment equal to ten
(10) percent of their remaining sick leave balance up to 100 hours upon voluntary separation of employment.
Civil Service firefighters who leave the classified service are entitled to receive a lump-sum payment for
accumulated sick leave not to exceed ninety(90) days(or 1,080 hours) based on their current rank and pay scale
at time of separation.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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 and applicable sick pay are 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
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.
O. 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 is balances with constraints on
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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 and capital projects in the special revenue funds and for capital projects in the Self-Financed
Construction Fund.
Assigned fund balance — Assigned fund balances are amounts that are subject to a purpose constraint that
represents an intended use but are neither restricted nor 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
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
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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 and a revised ordinance in November 2023.
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 effective January 1, 2021. There are four phases in the roadway impact fee
schedule. Phase 1 of the roadway impact fees are for final plat dates prior to January 1, 2023;phase 2 is for final
plat dates between January 1, 2023, and December 31, 2023; phase 3 is for final plat dates between January 1,
2024,and December 31,2024;and phase 4 is for final plat dates on or after January 1, 2025.
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
63
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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 statement which became effective for fiscal year 2024, and has been
implemented:
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.
The GASB has issued the following statements which will become effective for fiscal year 2025:
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.
GASB Statement No 102, "Certain Risk Disclosures"- The objective of this statement is to provide users of
government financial statement with essential information about risk related to a government's vulnerabilities
due to certain concentrations or constraints, whether by an external party or formal authoritative action by the
government.
A government is to assess whether a concentration or constraint makes the primary government reporting unit
or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact.
Additionally, this Statement requires a government to assess whether an event or events associated with a
concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are
more likely than not to begin to occur within 12 months of the date the financial statements are issued.
The GASB has issued the following statements which will become effective for fiscal year 2026:
GASB Statement No. 103, "Financial Reporting Model Improvements"- The objective of this Statement is to
improve key components of the financial reporting model to enhance its effectiveness in providing information
that is essential for decision making and assessing a government's accountability.This Statement also addresses
certain application issues related to Management's Discussion and Analysis, unusual or infrequent items, Net
Position of proprietary funds, Major Component Unit Information,and Budgetary Comparison Information.
GASB Statement 104, "Disclosure of Certain Capital Assets"-The objective of this Statement is to provide users of
government financial statements with essential information about certain types of capital assets separately in the
64
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
capital assets note disclosures required by Statement 34, Basic Financial Statements and Management's
Discussion and Analysis for State and Local Governments.
This Statement specifically addresses assets recognized by Statement No. 87, Leases, Statement No. 94,
Public-Private and Public-Public Partnerships and Availability Payment Arrangements, Statement No. 96,
Subscription-Based Information Technology.
W. RECLASSIFICATION OF MAJOR FUND
The City restated its governmental major and combined nonmajor fund balances as of October 1, 2023, to
recognize the change of the Roadway Impact Fees from nonmajor to major fund in accordance with
implementation of GASB Statement 100, "Accounting Changes and Error Corrections".
Governmental Funds Statement of Revenues,
Expenditures,and Changes in Fund Balances
NonMajor
Major Fund Fund Total
Fund Balance at September 30,2023
as previously reported $ - $ 247,461 $ 247,461
Reclassify to Major Fund 247,461 (247,461) -
Fund Balance at September 30,2023,
as restated $ 247,461 $ $ 247,461
65
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
II. 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) Fair market value adjustments related to investments are not included in the
budgetary basis due to the non-cash nature of those changes.
(6) 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.
(7) 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.
(8) Any appropriation balances lapse or revert to the undesignated fund balances at the
close of each fiscal year.
66
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
The budgets of the various funds are prepared on a basis consistent with generally accepted accounting
principles, with one exception 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 $ 134,948,000 $ - $ 134,948,000
Licenses, permits and fees 2,851,800 - 2,851,800
Charges for services 5,271,200 277,500 5,548,700
Fines and forfeitures 1,125,000 - 1,125,000
Intergovernmental 4,812,500 - 4,812,500
Investment and other 5,378,500 - 5,378,500
Total revenues 154,387,000 277,500 154,664,500
Expenditures-
Current-
General government 35,487,800 (1,261,180) 34,226,620
Public safety 80,507,100 344,621 80,851,721
Public works 22,737,500 452,982 23,190,482
Culture and recreation 22,698,200 741,077 23,439,277
Total expenditures 161,430,600 277,500 161,708,100
Excess(deficiency)of revenues
over expenditures (7,043,600) - (7,043,600)
Other financing sources(uses) -
Transfers in 7,250,300 - 7,250,300
Transfers out (1,700,000) (669,434) (2,369,434)
Total other financing sources(uses) 5,550,300 (669,434) 4,880,866
Net change in fund balances $ (1,493,300) $ (669,434) $ (2,162,734)
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, 2024, 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 $ 37,357,000
Self-Financed Construction Fund 25,332,000
Debt-Financed Capital Projects Fund 26,371,000
Nonmajor Funds
Special revenue funds $ 1,843,000
67
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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,certificates,and limited tax notes payable-public placement $ 341,940,000
Plus: Issuance premium (amortized against interest expense) 18,141,738
Less:Issuance discount(amortized against interest expense) (16,748)
Bonds,certificates,and limited tax notes payable-private placement 26,875,000
State infrastructure bank loan 27,000,000
Excess sales tax payable 6,624,683
Lease payable 297,692
Subscriptions payable 5,320,586
Net pension liability 61,797,397
Compensated absences 11,679,428
Total OPEB liability 17,382,047
Net adjustment to reduce fund balance-total governmental funds
to arrive at net position -governmental activities $ 517,041,823
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 $ 94,451,327
Depreciation/amortization expense (45,351,213)
Net adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ 49,100,114
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 $ 15,167,713
Reclassifications,disposals,and transfers (1,384,334)
Net adjustment to increase net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ 13,783,379
68
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
Another element of the reconciliation states that "The issuance of long-term debt (i.e., bonds, leases and
subscriptions) 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." Lastly, expenses related to accrued interest and amortization of premiums, discounts,
and deferred gains/losses on refunding transactions are reported in the statement of activities, but do not
require the use of current financial resources and, therefore, are not reported as expenditures in the
governmental funds. The details of this difference are as follows:
Debt proceeds- public placement $ (46,535,000)
Bond premium on issuance (2,204,234)
Sales tax liability (9,752,194)
Debt payments - public placement 17,295,000
Debt payments - private placement 4,200,000
Sales tax liability payments 3,127,511
Notes payments 600,837
Amortization of bond premium/discounts 1,280,461
Amortization of deferred amount on refunding (233,193)
Net adjustment to decrease net changes in fund balances-
total governmental funds to arrive at changes in net position
of governmental activities $ (32,220,812)
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 $ 8,659,000
Decrease in deferred outflows related to pensions (8,243,000)
Increase in deferred inflows related to pensions (3,002,000)
Net adjustment to decrease net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ (2,586,000)
Decrease in total OPEB liability $ 653,744
Decrease in deferred outflows related to OPEB (560,300)
Increase in deferred inflows related to OPEB (1,194,894)
Net adjustment to decrease net changes in fund balances-total
governmental funds to arrive at changes in net position of
governmental activities $ (1,101,450)
Change in compensated absences $ (1,455,360)
Change in accrued interest (663,644)
Net adjustment to increase net changes in fund balances -total
governmental funds to arrive at changes in net position of
governmental activities $ (2,119,004)
69
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
IV. DETAILED NOTES ON ALL FUNDS
A. CASH AND INVESTMENTS
Cash and investments at September 30, 2024, reconciled to the statement of net position amounts for cash and
cash equivalents and investments is as follows:
Cash in banks $ 76,946,922
Investments 493,562,989
Total cash and investments $ 570,509,911
Statement of net position presentation:
Cash and cash equivalents $ 90,604,469
Investments 267,087,149
Restricted assets-
Cash and cash equivalents 83,615,913
Investments 129,202,380
Total cash and cash equivalents and investments $ 570,509,911
At September 30,2024,the carrying amount of deposits was a debit balance of$76,946,922.including $3,025,257
in outstanding checks, and the respective bank balances totaled $79,972,179.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 $ 254,091,888 $ 254,091,888 193
Certificates of Deposit 139,382,744 139,382,744 78
State Investment Pools 100,088,357 100,088,357 7
$ 493,562,989 $ 493,562,989
Portfolio weighted average maturity 123
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, 2024, the City has the recurring fair value measurements
for U.S. Government securities of $254,091,888 valued using quoted prices for similar assets in active markets
(level 2 inputs).
70
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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, the 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, 2024,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, 2024,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 2024 were in the aforementioned categories.
71
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
Local Government Investment Pools
As of September 30, 2024, the City's investments included TexPool, TexSTAR, and Texas Range TexasDAILY and
TexasDAILY Select 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 $91,741,888
invested in TexPool, $222,666 invested in TexSTAR, $5,575,772 in TexasDAILY Select, and $2,548,031 in
TexasDAILY at September 30,2024.
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. TexSTAR is currently rated AAAm by S&P Global.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.
72
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
B. PROPERTY TAXES AND RECEIVABLE
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 2023 tax roll. The tax rate, based on total taxable
assessed valuation of $24,052,055,665 was $0.342000 on each $100 valuation and was allocated to the General
Fund and Debt Service Fund at$0.238520 and $0.103480, respectively.
Property taxes receivable as of September 30, 2024,were as follows:
General Debt Service
Fund Fund Total
Current year levy $ 199,909 $ 98,463 $ 298,372
Prior years' levies 292,760 177,661 470,421
492,669 276,124 768,793
Less-allowance for uncollectible taxes (4,926) (2,775) (7,701)
$ 487,743 $ 273,349 $ 761,092
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, 2024,were as follows:
Receivable Fund Payable Fund Receivable Payable
General Fund Debt Service Fund $ 5,422 $ 5,422
RRTEDC Construction Fund Debt-Financed Capital Projects Fund 2,542,573 2,542,573
Self-Financed Construction Fund 18,663 -
Total Governmental Funds 2,566,658 2,547,995
Golf Course Fund - 18,663
Total Proprietary Funds - 18,663
Totallnterfund $ 2,566,658 $ 2,566,658
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.
73
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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. In 2024, $10.1 million was transferred from the Debt-Financed Capital Project
Fund to the General Self-Financed Construction Fund to reimburse pre-funded eligible capital project costs.The
RRTEDC Fund received $43.3 million transferred from the Debt-Financed Capital Project Fund for eligible capital
road project costs.A summary of transfers between funds is shown on the following page.
74
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
Transfers In Transfers Out
Governmental Funds
General Fund -
Water and Wastewater Fund $ 5,885,300 $ -
Self-Financed Construction Fund - 2,369,434
RRTEDC Fund 1,365,000 -
7,250,300 2,369,434
Debt Service Fund -
Roadway Impact Fees Fund 2,500,000 -
Nonmajor Governmental Funds 6,221,661
8,721,661 -
RRTEDC Fund -
General Fund - 1,365,000
Debt Service Fund - 3,804,966
Debt-Financed Capital Projects Fund 43,284,136 45,145
43,284,136 5,215,111
Debt-Financed Capital Projects Fund -
Self-Financed Construction Fund 111,564 10,091,272
RRTEDC Fund 45,145 43,284,136
Nonmajor Governmental Funds 1,412,727 -
1,569,436 53,375,408
Self-Financed Construction Fund -
General Fund 2,369,434 -
Debt-Financed Capital Projects Fund 10,091,272 111,564
RRTEDC Fund 3,804,966 -
Nonmajor Governmental Funds 4,613,225 -
20,878,897 111,564
Roadway Impact Fees Fund -
Debt Service Fund - 2,500,000
2,500,000
Other Governmental Funds-
Debt Service Fund 6,221,661
Debt-Financed Capital Projects Fund 1,412,727
Self-Financed Construction Fund - 4,613,225
Nonmajor Governmental Funds 675,000 675,000
675,000 12,922,613
Subtotal of Governmental Funds 82,379,430 76,494,130
Proprietary Funds
Water and Wastewater Fund -
General Fund - 5,885,300
Subtotal of Proprietary Funds - 5,885,300
Total Transfers $ 82,379,430 $ 82,379,430
75
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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, 2024
Total City's Interest
ASSETS
Cash and cash equivalents $ 3,547,739 $ 1,084,973
Accounts receivable 250 (918)
Due from partner cities 6,577,866 2,856,885
Restricted investments 104,631,915 16,502,838
Capital assets 318,398,004 99,849,665
Total assets 433,155,774 120,293,443
DEFERRED OUTFLOWS OF RESOURCES 10,333,695 4,026,733
LIABILITIES
Accounts payable 4,534,968 1,004,705
Retainage payable 6,472,938 1,814,061
Due to partner cities 1,178,022 828,696
Current portion of bonds payable 13,755,000 3,695,000
Accrued bond interest payable 1,672,816 527,305
Total current liabilities 27,613,744 7,869,767
Noncurrent portion of bonds payable 327,288,457 85,722,223
Total liabilities 354,902,201 93,591,990
NET POSITION $ 88,587,268 $ 30,728,186
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For the Year Ended September 30,2024
Total City's Interest
Operating revenues $ 4,663,254 $ 1,196,870
Interest expense (9,947,870) (2,936,825)
Other operating expenses (15,324,889) (4,357,715)
Other income(expense) 11,642,742 2,300,168
Changes in Net Position (8,966,763) (3,797,502)
Net position,October 1,2023 79,690,244 41,039,999
Contribution of capital, net' 17,863,787 (6,514,311)
Net position,September 30, 2024 $ 88,587,268 $ 30,728,186
The negative capital contribution presented here includes a$25,346,964 reimbursement to the City from the 2023 SWIFT bond issuance.
76
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
E. CAPITAL ASSETS
Capital asset activity for the year ended September 30,2024,was as follows:
October 1, Additions/ Retirements/ September 30,
2023 Completions Adjustments 2024
Governmental Activities:
Capital assets not being depreciated/amortized:
Land $ 124,456,531 $ 12,081,846 $ - $ 136,538,377
Construction in progress 73,639,653 87,805,975 (47,848,595) 113,597,033
Total capital assets not being depreciated/
amortized 198,096,184 99,887,821 (47,848,595) 250,135,410
Capital assets being depreciated/amortized:
Buildings and improvements 1,117,464,780 46,659,402 (13,117,242) 1,151,006,940
Equipment 103,495,993 9,988,584 (2,185,693) 111,298,884
Right-to-use lease equipment 902,501 45,726 (174,740) 773,487
Right-to-use subscription assets 8,726,880 886,102 (248,451) 9,364,531
Total capital assets being depreciated/
amortized 1,230,590,154 57,579,814 (15,726,126) 1,272,443,842
Less accumulated depreciation/amortization for:
Buildings and improvements 527,855,379 34,047,615 (11,740,568) 550,162,426
Equipment 78,463,805 8,713,735 (2,178,033) 84,999,507
Right-to-use lease equipment 393,514 257,913 (174,740) 476,687
Right-to-use subscription assets 1,397,181 2,331,950 (248,451) 3,480,680
Total accumulated depreciation/amortization 608,109,879 45,351,213 (14,341,792) 639,119,300
Total capital assets being depreciated/
amortized,net 622,480,275 12,228,601 (1,384,334) 633,324,542
Governmental activities capital assets,net $ 820,576,459 $ 112,116,422 $ (49,232,929) $ 883,459,952
Business-Type Activities:
Capital assets not being depreciated/amortized:
Land $ 9,463,348 $ 59,538 $ - $ 9,522,886
Construction in progress 28,230,136 18,413,352 (16,362,604) 30,280,884
Total capital assets not being depreciated/
amortized 37,693,484 18,472,890 (16,362,604) 39,803,770
Capital assets being depreciated/amortized:
Buildings and improvements 658,276,735 45,625,132 (346,890) 703,554,977
Equipment 19,777,889 2,418,321 (377,680) 21,818,530
Right-to-use lease equipment 214,462 496,441 (214,462) 496,441
Total capital assets being depreciated/
amortized 678,269,086 48,539,894 (939,032) 725,869,948
Less accumulated depreciation/amortization for:
Building and improvements 279,406,482 23,926,768 (346,890) 302,986,360
Equipment 13,369,039 2,159,683 (377,680) 15,151,042
Right-to-use lease equipment 161,524 99,480 (214,462) 46,542
Total accumulated depreciation/amortization 292,937,045 26,185,931 (939,032) 318,183,944
Total capital assets being depreciated/
amortized,net 385,332,041 22,353,963 407,686,004
Business-type activities capital assets,net $ 423,025,525 $ 40,826,853 $ (16,362,604) $ 447,489,774
77
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Depreciation/amortization expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 4,378,085
Public safety 5,979,519
Public works 26,763,818
Culture and recreation 8,229,791
Total depreciation/amortization expense-governmental activities $ 45,351,213
Business-Type Activities:
Water and wastewater utility $ 25,671,652
Golf course 514,279
Total depreciation/amortization expense- business-type activities $ 26,185,931
Net Investment in Capital Assets
Detailed reconciliation of net investment in capital assets on the government-wide Statement of Net Position for
September 30, 2024,follows:
Governmental Business-Type
Activities Activities Total
Net investment in capital assets:
Total capital assets(net of
accumulated depreciation/amortization) $ 883,459,952 $ 447,489,774 $ 1,330,949,726
Plus capital-related deferred
outflows of resources 135,134 3,170,364 3,305,498
Less capital-related long-term debt (419,558,268) (61,125,710) (480,683,978)
Plus unspent bond proceeds 35,695,373 35,695,373
Net investment in capital assets
(net of related debt) $ 499,732,191 $ 389,534,428 $ 889,266,619
78
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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 30,2024:
Balance Balance
October 1, Refundings/ September 30, Due within
2023 Additions Retirements 2024 one year
Governmental Activities
Public Placement
General obligation bonds $ 147,420,000 $ 19,495,000 $ (9,160,000) $ 157,755,000 $ 8,670,000
Certificates of obligation 116,210,000 19,475,000 (4,565,000) 131,120,000 4,970,000
Limited tax notes 3,315,000 7,565,000 (920,000) 9,960,000 2,005,000
Hotel tax revenue bonds 6,720,000 - (680,000) 6,040,000 705,000
Sales tax revenue bonds 39,035,000 - (1,970,000) 37,065,000 2,000,000
Plus deferred amount:
For issuance premium 17,226,338 2,204,234 (1,288,834) 18,141,738 1,495,023
For issuance discount (25,121) - 8,373 (16,748) 8,373
Total Public Placement 329,901,217 48,739,234 (18,575,461) 360,064,990 19,853,396
Private Placement
General obligation bonds 2,420,000 - (1,305,000) 1,115,000 370,000
Certificates of obligation 26,815,000 (1,980,000) 24,835,000 2,025,000
Limited tax notes 1,840,000 (915,000) 925,000 925,000
Total Private Placement 31,075,000 (4,200,000) 26,875,000 3,320,000
State Infrastructure Bank Loan 27,000,000 27,000,000 -
Notes payable 600,837 - (600,837) - -
Excess sales tax liability - 9,752,194 (3,127,511) 6,624,683 2,438,040
Leases 503,368 45,726 (251,402) 297,692 218,441
Subscriptions 6,786,699 844,836 (2,310,949) 5,320,586 2,204,430
Compensated absences 10,224,068 8,305,486 (6,850,126) 11,679,428 7,825,217
Total governmental activities 406,091,189 67,687,476 (35,916,286) 437,862,379 35,859,524
Business-Type Activities
Public Placement
Revenue bonds 59,860,000 - (3,685,000) 56,175,000 3,860,000
Plus deferred amount:
For issuance premium 4,815,163 - (331,408) 4,483,755 331,408
Leases 53,074 496,441 (82,560) 466,955 119,949
Compensated absences 875,437 906,777 (691,595) 1,090,619 861,589
Total Public Placement 65,603,674 1,403,218 (4,790,563) 62,216,329 5,172,946
Total business-type activities 65,603,674 1,403,218 (4,790,563) 62,216,329 5,172,946
Total primary government $ 471,694,863 $ 69,090,694 $ (40,706,849) $ 500,078,708 $ 41,032,470
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.
79
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
Long-term debt at September 30,2024, is comprised of the following:
Business-
Governmental Governmental Type
Activities Activities Activities
Public Private Public
Placement Placement Placement
General Obligation Bonds:
$66,885,000 2014 GO bonds due in annual installments
of$-0-to$4,790,000 through 2039;interest at 3.0%to 5.0% $ 5,265,000 $ $
$32,465,000 2015 refunding bonds due in annual installments
of$-0-to$3,445,000 through 2032;interest at 4.0%to 5.0% 2,160,000
$6,995,000 2016 refunding bonds due in annual installments
of$-0-to$1,755,000 through 2032;interest at 2.0%to 4.0% 2,695,000
$28,585,000 2017 GO bonds due in annual installments
of$-0-to$1,945,000 through 2042;interest at 3.0%to 5.0% 25,240,000
$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% 5,070,000
$6,980,000 2020 refunding bonds due in annual installments
of$375,000 to$2,005,000 through 2027;interest at 1.21% - 1,115,000
$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% 77,620,000 -
$20,985,000 2022 GO bonds due in annual installments
of$280,000 to$1,310,000 through 2047;interest at 3.63%to 5.0% 20,210,000
$19,495,000 2024 GO bonds due in annual installments
of$225,000 to$1,260,000 through 2049;interest at 4.0%to 5.0% 19,495,000 -
Total General Obligation Bonds 157,755,000 1,115,000
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% 4,620,000
$6,915,000 2018 Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$510,000
through 2038;interest at 3.0%to 5.0% 5,775,000
$27,250,000 2019 Combination tax and revenue certificates of
obligation due in installments of$-0-to$1,740,000
through 2044;interest at 2.0%to 5.0% 24,330,000 -
$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% - 24,835,000
$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% 25,960,000 -
$13,745,000 2021 B Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$740,000
through 2046;interest at 2.0%to 5.0% 12,695,000
$13,810,000 2021C Combination tax and limited revenue certificates
of obligation due in installments of$-0-to$715,000
through 2046;interest at 2.0%to 4.0% 12,670,000
$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% 25,595,000
$19,475,000 2024 Combination tax and limited revenue certificates
of obligation due in installments of$225,000 to$1,255,000
through 2049;interest at 4.0%to 5.0% 19,475,000 -
Total Certificates of Obligation 131,120,000 24,835,000
80
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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% $ - $ 925,000 $
$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% 1,185,000 -
$1,900,000 2022 Limited tax notes due in annual installments of
$325,000 to$425,000 through 2027;interest at 5.0% 1,210,000
$7,565,000 2024 Limited tax notes due in annual installments of
$1,040,000 to$1,435,000 through 2030;interest at 5.0% 7,565,000 -
Total Limited Tax Notes 9,960,000 925,000
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% 630,000 - -
$5,560,000 2021 refunding bonds due in annual installments
of$75,000 to$515,000 through 2037;interest at 4.0% 5,410,000 - -
Total Hotel Tax Revenue Bonds 6,040,000 - -
Sales Tax Revenue Bonds:
$21,310,000 2019 taxable bonds due in annual installments of$-0-
to$1.22 million through 2044;interest at 2.15%to 3.68% 18,155,000
$20,695,000 2021 taxable bonds due in annual installments
of$-0-to$1,010,000 through 2046;interest at 0.45%to 3.25% 18,910,000
Total Sales Tax Revenue Bonds 37,065,000
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% - 4,870,000
$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% 33,810,000
$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% 17,495,000
Total Utility System Revenue Bonds - 56,175,000
Issuance premium 18,141,738 4,483,775
Issuance discount (16,748) -
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
Excess sales tax liability 6,624,683
Leases 297,692 466,955
Subscriptions 5,320,586 -
Compensated absences 11,679,428 1,090,619
Total Primary Government Debt $ 410,987,379 $ 26,875,000 $ 62,216,349
81
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
The annual requirements to amortize bonds, certificates of obligation, limited tax notes, loan and notes payable
debt at September 30,2024, 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
2025 $ 13,640,000 $ 10,551,678 $ 24,191,678 $ 2,395,000 $ 463,005 $ 2,858,005
2026 14,420,000 9,591,886 24,011,886 3,415,000 421,876 3,836,876
2027 14,940,000 9,060,439 24,000,439 3,490,000 362,284 3,852,284
2028 13,230,000 8,531,684 21,761,684 3,185,000 301,365 3,486,365
2029 13,690,000 8,057,391 21,747,391 3,255,000 243,717 3,498,717
2030-2034 70,315,000 32,740,180 103,055,180 10,210,000 372,316 10,582,316
2035-2039 74,700,000 20,697,664 95,397,664 - - -
2040-2044 48,250,000 9,569,325 57,819,325 - -
2045-2049 25,690,000 2,338,844 28,028,844 - - -
$ 288,875,000 $ 111,139,091 $ 400,014,091 $ 25,950,000 $ 2,164,563 $ 28,114,563
Year Ending Limited Tax Notes
Sept.30, Public Placement Private Placement
Principal Interest Total Principal Interest Total
2025 $ 2,005,000 $ 562,308 $ 2,567,308 $ 925,000 $ 10,638 $ 935,638
2026 2,185,000 379,600 2,564,600 - - -
2027 1,665,000 288,500 1,953,500
2028 1,300,000 205,250 1,505,250
2029 1,370,000 140,250 1,510,250
2030-2034 1,435,000 71,750 1,506,750
$ 9,960,000 $ 1,647,658 $ 11,607,658 $ 925,000 $ 10,638 $ 935,638
Year Ending
Sept.30, Hotel Tax Revenue Bonds- Public Placement
Principal Interest Total
2025 $ 705,000 $ 227,500 $ 932,500
2026 320,000 207,000 527,000
2027 335,000 193,900 528,900
2028 345,000 180,300 525,300
2029 360,000 166,200 526,200
2030-2034 2,030,000 599,000 2,629,000
2035-2039 1,945,000 159,300 2,104,300
$ 6,040,000 $ 1,733,200 $ 7,773,200
82
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Year Ending
Sept.30, Sales Tax Revenue Bonds- Public Placement
Principal Interest Total
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 3,057,664
2028 2,125,000 937,344 3,062,344
2029 2,170,000 888,498 3,058,498
2030-2034 7,490,000 3,780,961 11,270,961
2035-2039 7,885,000 2,704,372 10,589,372
2040-2044 9,295,000 1,309,390 10,604,390
2045-2049 1,985,000 97,338 2,082,338
$ 37,065,000 $ 12,784,972 $ 49,849,972
Year Ending
Sept.30, State Infrastructure Bank Loan
Principal Interest Total
2025 $ - $ - $
2026 1,340,000 567,000 1,907,000
2027 1,365,000 538,860 1,903,860
2028 1,395,000 510,195 1,905,195
2029 1,425,000 480,900 1,905,900
2030-2034 7,585,000 1,942,920 9,527,920
2035-2039 8,410,000 1,112,580 9,522,580
2040-2044 5,480,000 231,735 5,711,735
$ 27,000,000 $ 5,384,190 $ 32,384,190
Business-Type Activities:
Year Ending
Sept.30, Utility System Revenue Bonds
Principal Interest Total
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 3,440,000 1,629,175 5,069,175
2029 3,530,000 1,540,331 5,070,331
2030-2034 18,500,000 6,088,038 24,588,038
2035-2039 19,450,000 2,558,925 22,008,925
$ 56,175,000 $ 17,532,850 $ 73,707,850
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, 2024,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.
83
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
In May 2023,the City of Round Rock's voters authorized the issuance of general obligation bonds to fund capital
assets of the general government. Residents approved two bond propositions totaling $274 million for capital
projects to improve public safety, parks, recreation, and sports. 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
Public Safety 5/6/2023 $ 44,000,000 $ 10,000,000 $ 34,000,000
Parks, Recreation,
and Sports 5/6/2023 230,000,000 10,000,000 220,000,000
$ 274,000,000 $ 20,000,000 $ 254,000,000
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, leases and
subscriptions 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 2024, net revenues available for debt service were 5.47 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 $646,846 at September 30, 2024, is reported in
the governmental funds. Bond covenants require that the hotel tax revenues be irrevocably pledged by
providing quarterly installments,which will accumulate to the semi-annual principal and interest requirements as
they become due.
The bond reserve fund for hotel tax revenue bond retirement aggregates $969,922 at September 30, 2024. 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.
84
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
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 $1,904,157 at September 30,2024, 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.
2024 Issuances
In May of 2024, the City issued $19,495,000 of General Obligation bonds, Series 2024. The bonds were issued
with an interest rate of 4.0% to 5.0% and mature through 2049. Proceeds from the sale will be used for (1)
constructing, improving, extending, expanding, upgrading, and/or developing City parks, recreation and sports
projects and facilities, comprised of: a new recreation center building that also includes parks and recreation
administration offices, an outdoor track, multi-purpose athletic fields, tennis complex relocation, Lakeview
Pavilion improvements, Rock'N River Water park expansion, Clay Madsen Recreation Center remodel, Sports
Center Expansion, Lawn at Brushy Creek Park development, cityside trail expansion, Play For All Park
improvements, and systemwide park improvements, as further set forth in Proposition A approved at the May 6,
2023, election; (2) constructing, improving, extending, expanding, upgrading, and/or developing City public
safety projects and facilities, comprised of: improving the City's Public Safety Training Center, relocation of the
Central Fire Station, and two new fire stations, as further set forth in Proposition B approved at the May 6, 2023,
election;and (3) paying the cost of issuing the Bonds.
Additionally, in May 2024, the City issued $19,475,000 of Combination Tax and Limited Revenue Certificates of
Obligation, Series 2024. The certificates were issued with a.rate of 4.0% to 5.0% and mature through 2049.
Proceeds from the sale will be used for paying contractual obligations incurred or to be incurred by the City for
(1) constructing, expanding, and equipping a City public works complex comprised of office and administrative
facilities for the City transportation employees and equipment and for maintenance of City police,fire, utility, and
transportation vehicles; (2) constructing, improving, extending, expanding, upgrading and/or developing streets,
roads, bridges, sidewalks, intersections, traffic signalization, and other transportation improvement projects
including related waterworks,sewer and drainage improvements, signage, landscaping, irrigation, purchasing any
necessary rights-of-way, and other related transportation costs, including, but not limited to arterial bottleneck
and sidewalk improvements, arterial street maintenance, Chisholm Trail North and South, County Road 112,
Eagles Nest, Gattis School Road Segments 2, 4, 5, and 6, Greenlawn Boulevard, Harrell Parkway, Kenney Fort
Boulevard Segments 5 and 6, North Mays Gap/Widening, Old Settlers Boulevard, Red Bud North and South, US
79, and Wyoming Springs; and (3) paying related professional services including for-construction managers,
engineers, architects, attorneys, auditors, financial advisors, fiscal agents, and costs related to issuing the
Certificates.
The City also issued $7,565,000 Limited Tax Notes, Series 2024.The notes issued with an interest rate of 5.0%and
mature through 2030.The proceeds will be used for(1) purchasing City vehicles for the City's police, fire, parks,
transportation, and building construction and facility maintenance departments and replacement vehicles for
other City departments as needed;and (2) paying the cost of issuing the Notes.
85
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Excess Sales Tax Liability
The City negotiated a long-term payout of excess sales tax received in prior years in the amount of
approximately $9.8 million, with the State Comptroller. This amount was collected by the City and the RRTEDC
during the fiscal year periods 2012 through 2017. The total negotiated payout requires a four year repayment
period of equal amounts deducted monthly from City's and the RRTEDC's sales tax receipts beginning with
March 2024. In May 2024, a partial reversal by the Comptroller resulted in a lump sum deduction of $1.7M
against the total amount due. The $203,170 monthly payments are to remain the same but shortens the
repayment period by 8 months. No interest is associated with this long-term liability.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30,2024
G. LEASES
To enhance the relevance and consistency of information about the City's leasing activities,the City established a
single model for lease accounting based on the principle that leases are financings of the right to use an
underlying asset.
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.
At September 30, 2024 the City, has 11 active leases. The leases have payments that range from $734 to
$83,442and interest rates that range from 0.2280% to 8.5000%.The total combined value of the lease liability is
$764,647, and the total combined value of the short-term lease liability is $338,390.The combined value of the
right-to-use asset of $1,269,928 with accumulated amortization of $523,229 is included within the Lease Class
activities table found below.
Amount of Lease Assets by Major Classes of Underlying Asset
Accumulated
Asset Class Lease Asset Value Amortization
Equipment $ 1,269,928 $ 523,229
Total Leases $ 1,269,928 $ 523,229
Principal and Interest Requirements to Maturity
Business-Type Activities
Fiscal Year Principal Payments Interest Payments Total Payments
2025 $ 119,949 $ 11,110 $ 131,059
2026 123,222 7,837 131,059
2027 126,584 4,475 131,059
2028 97,200 1,095 98,295
Total Principal Payments 466,955
Cumulative Variance as of Fiscal Year-End -
Total Remaining Liability $ 466,955
Governmental Activities
Fiscal Year Principal Payments Interest Payments Total Payments
2025 $ 218,441 $ 7,186 $ 225,627
2026 70,670 857 71,527
2027 8,581 92 8,673
Total Principal Payments 297,692
Cumulative Variance as of Fiscal Year-End -
Total Remaining Liability $ 297,692
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
H. SUBSCRIPTIONS
To enhance the relevance and consistency of information about the City's subscriptions activities, established
establishes a single model for subscription accounting based on the principal that subscriptions are financings of the
right to use of an underlying asset.
The City recognizes a subscription liability and an intangible right-to-use subscription asset in the government-wide
and proprietary financial statements. The City recognizes subscription liabilities with an initial, individual value of
$5,000 or more.
At September 30, 2024 the City has 20 active subscriptions. The subscriptions have payments that range up to
$1,338,839 and interest rates that range from 2.3100% to 3.7890%. The total combined value of the subscription
liability is $5,320,586, and the total combined value of the short-term subscription liability is $2,204,430. The
combined value of the right-to-use asset of $9,364,531 with accumulated amortization of $3,480,680 is included
within the Subscription Class activities table found below.
Amount of Subscription Assets by Major Classes of Underlying Asset
Subscription Asset Accumulated
Asset Class Value Amortization
Software $ 9,364,531 $ 3,480,680
Total Subscriptions $ 9,364,531 $ 3,480,680
Principal and Interest Requirements to Maturity
Governmental Activities
Fiscal Year Principal Payments Interest Payments Total Payments
2025 $ 2,204,430 $ 138,114 $ 2,358,511
2026 1,586,577 80,619 1,651,229
2027 1,479,307 39,040 1,518,347
2028 31,509 939 32,448
2029 18,763 164 18,927
Total Principal Payments 5,320,586
Cumulative Variance as of Fiscal Year-End -
Total Remaining Liability $ 5,320,586
I. ACCRUED COMPENSATED ABSENCES
Changes to accrued compensated absences for the year ended September 30,2024,were as follows:
Governmental Business-Type
Activities Activities
Balance,October 1,2023 $ 10,224,068 $ 875,437
Additions 8,305,486 906,777
Reductions (6,850,126) (691,595)
Balance,September 30,2024 $ 11,679,428 $ 1,090,619
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Accrued compensated absences due within one year were $7,825,217 for governmental activities and $861,589 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.
J. RESTRICTED ASSETS
The following summarizes restricted assets by purpose at September 30,2024:
Cash Property Sales Accrued
and Cash Taxes Tax Interest
Equivalents Investments Receivable Receivable Receivable
Governmental Activities:
General Fund $ 1,033,713 $ $ - $ $ -
Debt Service Fund 5,428,676 273,349 -
Restricted by debt covenants-
Round Rock Transportation
and Economic Development
Corporation Fund 57,122,280 112,597,680 2,097,162 887,035
Debt-Financed Capital
Projects Fund 13,996,687 - - -
Roadway Impact Fees Fund 1,621,678 5,689,632 37,647
Other Governmental funds 860,962 3,020,671 - -
Total Governmental Activities $ 80,063,996 $ 121,307,983 $ 273,349 $ 2,097,162 $ 924,682
Cash Accrued
and Cash Interest
Equivalents Investments Receivable
Business-Type Activities:
Water and Wastewater Fund-
Impact fees $ 698,858 $ 2,451,936 $
Construction 1,551,227 5,442,461
Customer deposits 1,173,288 -
Revenue bond debt service 128,545 - -
Accrued interest receivable - - 53,797
Total Business-Type Activities $ 3,551,918 $ 7,894,397 $ 53,797
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
into the City's accounts. For this service, Williamson County was paid $11,796 and Travis County was paid $1,176 for
the fiscal year ended September 30,2024.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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, 2024, the City's cost under this contract
was $628,320.
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 30,2024,the City's cost under this contract was $1,695,529.
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, 2024, the City's cost under these contracts was
$1,915,859.
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 33.0 MGD which is sufficient to meet future projected
flows through 2028. The City of Round Rock's current reserved capacity in the system is 20.05 MGD, or 60.76%, of
total treatment capacity.
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.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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, 2024, the City of Round Rock's allocated share of
operation and maintenance expenses was 70.51%.
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, 2024,the potential rebate was calculated at
$12,551.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan that permits them to defer a portion of their current
salary until future years.Any contributions made to the deferred compensation plan, in compliance with Section 457
of the Internal Revenue Code (IRC), are not available to employees until termination of employment, retirement,
death or an unforeseen emergency. A third-party administrator, Nationwide Retirement Solutions, administers
contributions to the plan. Effective January 1997,and in compliance with the provisions of the IRC Section 457(8),the
plan assets are in custodial accounts for the exclusive benefit of the plans' participants and beneficiaries. In
accordance with GASB Statement No. 32, the City provides neither administrative services nor investment advice to
the plans and therefore, no fiduciary relationship exists between the City and the deferred compensation plan.
Economic Development
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 rebated 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 program for the year ended
September 30, 2024, are summarized below. No tax abatements were made under Chapter 312, Property
Redevelopment and Tax Abatement Act,of the Texas Local Government Code.
Rebate and Incentive Programs Amount
Hotel Occupancy Tax $ 2,015,571
Property Tax 1,113,631
Sales Tax 10,368,850
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 Sections 2302.5055 of the Texas
Government Code,and other applicable laws.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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-funded for employee medical and dental benefits 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 contributions provided by both
the City and participating employees.
Group medical and dental benefit claims are administered by third parry insurance providers.Throughout the policy
year,the excess "stop loss" insurance carrier reimburses the City for catastrophic medical claims that exceed $200,000
per insured. The minimum annual aggregate deductible is $15,914,014 or 95% of the first monthly aggregate
deductible amount times 12,whichever is greater. An analysis of claims activities is presented below:
Claims and
Beginning Changes in Actual Claim Ending
Fiscal Year Liability Estimates Payments Liability
2022 $ 853,154 $ 12,960,388 $ 13,298,843 $ 514,699
2023 514,699 13,468,525 12,980,217 1,003,007
2024 1,003,007 15,233,470 15,017,823 1,218,654
C. EMPLOYEE RETIREMENT PLAN
Plan Description
The City participates as one of 934 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 TMRS with a
six-member, Governor-appointed Board of Trustees; however, TMRS does is not fiscally dependent on 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.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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,and
the city-financed monetary credits with interest. 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
Employees Covered by Benefit Terms
At the December 31, 2023, valuation and measurement date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 496
Inactive employees entitled to but not yet receiving benefits 599
Active employees 1,090
Total 2,185
Contributions
Member contribution rates in TMRS are either 5%, 6%, or 7% of the member's total compensation, and the city
matching percentages are either 100%, 150%,or 200%, both as adopted by the governing body of the city.Under the
state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the entry
age normal actuarial cost method.The 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 2023 and 2024 as follows:
2023 2024
Total Retirement Rate 16.20% 16.98%
Supplemental Death Benefit 0.24 0.24
Total Combined Contribution 16.44% 17.22%
The City's contributions to TMRS for the year ended September 30, 2024, were $16,299,740 and were equal to the
required contributions.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Net Pension Liability
The City's net pension liability(NPL)was measured as of December 31,2023,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 31,2022,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 110% of the Public Safety table used for males and 100% of 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. Male rates are multiplied by 103% and female rates are multiplied by 105°/x. The
rates for actives,healthy retirees and beneficiaries are projected on a fully generational basis by the most recent Scale
MP-2021 to account for future mortality improvements. For disabled annuitants,the same mortality tables for healthy
retirees are 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 the most recent Scale
MP-2021 to account for future mortality improvements subject to the 3%floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over
the four-year period from December 31, 2018, to December 31, 2022. The assumptions were adopted in 2023 and
first used in the December 31, 2023, 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,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 by best estimate ranges of
expected returns for each major asset class. The long-term expected rate of return is determined by weighting the
expected return for each major asset class by the respective target percentage. The target allocation and best
estimates of the expected return for each major asset class in fiscal year 2024 are summarized in the table that
follows:
Long-Term Expected
Target Real Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity 35.0% 6.7%
Core Fixed Income 6.0% 4.7%
Non-Core Fixed Income 20.0% 8.0%
Other Public and Private Markets 12.0% 8.0%
Real Estate 12.0% 7.6%
Hedge Funds 5.0% 6.4%
Private Equity 10.0% 11.6%
Tota 1 100.0%
94
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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.
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, 2022 $ 404,450,942 $ 324,386,853 $ 80,064,089
Changes for the year:
Service cost 16,203,730 - 16,203,730
Interest 27,373,626 27,373,626
Difference between expected and actual
experience 5,711,268 5,711,268
Changes in Assumptions (941,355) (941,355)
Contributions-employer - 14,591,459 (14,591,459)
Contributions-employee - 6,304,954 (6,304,954)
Net investment income - 37,622,396 (37,622,396)
Benefit payments, including refunds of
employee contributions (14,035,219) (14,035,219) -
Administrative expense (238,847) 238,847
Other - (1,669) 1,669
Net changes 34,312,050 44,243,074 (9,931,024)
Balance at December 31,2023 $ 438,762,992 $ 368,629,927 $ 70,133,065
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 $ 137,431,208 $ 70,133,065 $ 15,231,004
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the Schedule of Changes in
Fiduciary Net Position by participating City.That report may be obtained at www.tmrs.com.
95
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2024, the City recognized a decrease to pension expense of $2,586,000. At
September 30, 2024, 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 $ 13,388,752 $ -
Difference between projected and actual investment earnings 8,386,956 -
Changes in actuarial assumptions used to determine pension liability 75,620 754,577
Pension contributions after measurement date 11,970,972 -
Total $ 33,822,300 $ 754,577
Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date
of $11,970,972 will be recognized as a reduction of the NPL for the measurement year ending December 31, 2024,
(i.e., recognized in the City's financial statements September 30, 2025).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
2024 $ 6,760,095
2025 6,522,173
2026 9,601,702
2027 (1,825,071)
2028 37,854
Thereafter -
Total $ 21,096,753
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.
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CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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 OPER.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, 2023, valuation and measurement date, the following employees were covered by the benefit
terms:
SDBF:
Inactive employees currently receiving benefits 407
Inactive employees entitled to but not yet receiving benefits 168
Active employees 1,090
Total 1,665
Self-Funded Health Insurance:
Inactive employees(retirees) 37
Active employees 1,006
Total 1,043
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 0.24%of required contributions.
The City's contributions to SDBF for the years ended 2024, 2023, and 2022 were $57,480, $24,027, and $17,967,
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 0.06%for the years ended 2024,and 2023,and .05%for the year ended
2022.
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.
97
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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, 2024, the City recognized a total OPEB liability of$19,745,485, $2,567,643 of
which was for the SDBF, and $17,177,842 for the Self-Funded Health Insurance plan. Both were measured as of
December 31,2023,and were determined by an actuarial valuation as of that date.
Actuarial Assumptions
The total OPEB liability in the December 31, 2023, actuarial valuation was determined using the following actuarial
assumptions:
SDBF Self-Funded Health Insurance
Inflation 2.5% 2.5%
Salary increases 3.5%to 11.85%including inflation 3.0%
Discount rate** 3.77% 3.92%
Healthcare cost trend rate None Getzen model(7.73%to 3.94%)
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 Retirees Mortality rates were based on the
of Texas Mortality Tables. Male rates are PUB-2010 General Table projected using
multiplied by 103% and females rates are MP-2021. The mortality table was
multiplied by 105%.The rates are projected switched to the PUB-2010 as this is more
on a fully generational basis by the most tailored to public entities.
recent Scale MP-2021 (with immediate
convergence).
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 the most recent Scale MP-2021 (with
immediate convergence) to account for
future mortality improvements subject to
the floor.
Development of claims None Retiree medical and pharmacy claims, as
well as administrative fees,were projected
to the following fiscal year and
age-adjusted to age 65. Retiree
contributions were netted out. That net
cost is assumed to be of a retiree at the
average age of retirees. Costs were then
spread to the other ages by using the age
factors developed by the Society of
Actuaries Unisex model.
98
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
** 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 31,2023.
***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 are 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 City, would be sufficient to meet all
benefits payable on their behalf. The normal cost is calculated using an entry age based on benefit service with the
current city. If a member has additional time-only vesting service through service with other TMRS cities or other
public agencies, they retain this for determination of benefit eligibility and decrement rates. The salary-weighted
average of these rates is the total normal cost rate. The unfunded actuarial accrued liability reflects the difference
between the portion of projected benefits attributable to service credited prior to the valuation date and assets
already accumulated.
Specific to the self-funded health insurance plan, at the time the employee enters the plan (usually at date of hire),
the present value of future benefits is set equal to the present value of future normal costs. Instead of the normal
costs being a level dollar amount,they are set as a level percent of salary.The accrued liability then is just the present
value of past normal costs brought forward from the entry date to the measurement date.
SDBF:The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS
as of December 31, 2022. The assumptions were adopted in 2023 and first used in the December 31, 2023, actuarial
valuation.
Changes in the Total OPEB Liability
Self-Funded
Health
SDBF Insurance Total
Balance at December 31,2022 $ 2,285,345 $ 18,209,872 $ 20,495,217
Changes for the year:
Service cost 108,085 1,373,314 1,481,399
Interest 93,651 775,205 868,856
Differences between expected and actual
experience (527) (2,191,053) (2,191,580)
Changes in assumptions or other inputs 135,131 (446,469) (311,338)
Benefit payments (54,042) (543,027) (597,069)
Net changes 282,298 (1,032,031) (749,732)
Balance at December 31,2023 $ 2,567,643 $ 17,177,841 $ 19,745,485
99
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
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 (3.77% for SDBF
and 3.92% for the Self-Funded Health Insurance plan), as well as what the City's total OPEB liability would be if it
were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current
discount rate:
Current Discount
1% Decrease Rate 1% Increase
2.77% 3.77% 4.77%
SDBF $ 3,125,443 $ 2,567,643 $ 2,138,765
Current Discount
1%Decrease Rate 1%Increase
2.92% 3.92% 4.92%
Self-Funded Health Insurance $ 18,164,642 $ 17,177,842 $ 16,211,848
The following table presents the total OPEB liability of the City, calculated using the healthcare trend rate of 7.73%to
3.94%,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 (6.73% to 2.94%) or 1-percentage-point higher (8.73% to 4.94%) than the current
healthcare trend rate:
Healthcare
1% Decrease Trend Rate 1% Increase
Self-Funded Health Insurance $ 15,576,035 $ 17,177,842 $ 19,015,079
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the fiscal year ended September 30, 2024, the City recognized total OPEB expense of $1,612,344 $149,124 of
which was for the SDBF, and $1,463,220 for the Self-Funded Health Insurance plan. At September 30, 2024, 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 $ 14,101 $ - $ 14,101 $ 66,498 $ 2,376,131 $ 2,442,629
Changes in assumptions
and other inputs 526,760 906,894 1,433,654 959,041 2,005,162 2,964,203
OPEB contributions after
measurement date 42,299 317,719 360,018 - - -
Total $ 583,160 $ 1,224,613 $ 1,807,773 $ 1,025,539 $ 4,381,293 $ 5,406,832
Deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date of
$360,018 will be recognized as a reduction of the total OPEB for the measurement year ending December 31, 2024
(i.e., recognized in the City's financial statements September 30, 2025).Other amounts reported as deferred outflows
and inflows of resources related to OPEB will be recognized in OPEB expense as follows:
100
CITY OF ROUND ROCK,TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
Net Deferred Outflows(Inflows)
of Resources
Measurement Self-Funded
Year Ending Health
December 31, SDBF Insurance
2024 $ (68,443) $ (605,787)
2025 (58,458) (666,966)
2026 (94,352) (666,966)
2027 (153,384) (719,765)
2028 (121,723) (577,502)
Thereafter 11,682 (237,413)
Total $ (484,678) $ (3,474,399)
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 sixth 1-year
renewal period beginning on January 1, 2025.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
Ground Lease Agreement Amendments
On November 21,2024,the City executed a First Amendment to the Memorandum of Lease and Option and A Fourth
Amendment to the Ground Lease Agreement between the City and KR CC, Inc. removing 30 acres immediately
adjacent to the regional wastewater treatment facility from the ground lease, allowing the City to own the property
outright. In exchange, the $10.5 million deferred payment due the City December 20, 2024, is further deferred until
December 30, 2029,and is amended to$6.8 million.
BCRUA Debt Issuance
In November 2024, the BCRUA completed the issuance of $70,590,000 of contract revenue bonds to provide
additional financing for future capital improvements. This issuance included $31,500,000 in contract revenue bonds
on behalf of the City.
101
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CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2024
(UNAUDITED)
Texas Municipal Retirement System (TMRS) Plan
Schedule of Changes in the Net Pension Liability and Related Ratios
Measurement period ended December 31, 2014 201S 2016 2017
Total Pension Liability
Service cost $ 8,066,254 $ 8,990,916 $ 9,609,823 $ 10,430,650
Interest(on the Total Pension Liability) 13,330,143 14,481,391 15,065,206 16,360,878
Difference between expected and actual
experience (50,055) (662,530) 704,655 671,908
Change of assumptions (1,208,085) - -
Benefit payments, including refunds of employee
contributions (5,231,094) (5,493,451) (5,706,408) (7,483,495)
Net Change in Total Pension Liability 16,115,248 16,108,241 19,673,276 19,979,941
Total Pension Liability- Beginning 189,013,034 205,128,282 221,236,523 240,909,799
Total Pension Liability- Ending (a) $ 205,128,282 $ 221,236,523 $ 240,909,799 $ 260,889,740
Plan Fiduciary Net Position
Contributions- Employer $ 7,787,328 $ 8,195,714 $ 8,302,118 $ 9,138,705
Contributions- Employee 3,423,287 3,644,800 3,779,341 4,113,985
Net investment income 8,955,552 252,867 12,021,503 27,187,574
Benefit payments, including refunds of employee
contributions (5,231,094) (5,493,451) (5,706,408) (7,483,495)
Administrative expense (93,479) (154,001) (135,695) (140,808)
Other (7,685) (7,607) (7,311) (7,136)
Net Change in Plan Fiduciary Net Position 14,833,909 6,438,322 18,253,548 32,808,825
Plan Fiduciary Net Position - Beginning 156,512,946 171,346,855 177,785,177 196,038,725
Plan Fiduciary Net Position- Ending (b) 171,346,855 177,785,177 196,038,725 228,847,550
Net Pension Liability- Ending (a) - (b) $ 33,781,427 $ 43,451,346 $ 44,871,074 $ 32,042,190
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability 83.53% 80.36% 81.37% 87.72%
Covered Payroll $ 48,839,040 $ 51,731,390 $ 53,776,289 $ 58,533,388
Net Pension Liability as a Percentage of Covered
Payroll 69.17% 83.99% 83.44% 54.74%
Notes to Schedule:
1) No significant factors noted to disclose.
2) No significant methods and assumptions to disclose.
See Independent Auditors'Report.
104
2018 2019 2020 2021 2022 2023
$ 11,165,127 $ 12,125,301 $ 13,315,518 $ 13,320,453 $ 14,680,601 $ 16,203,730
17,747,611 19,262,844 21,130,343 22,912,308 24,990,566 27,373,626
773,706 4,071,075 2,225,761 5,600,114 8,160,742 5,711,268
- 608,160 - - - (941,355)
(7,089,473) (8,347,798) (9,643,873) (10,905,346) (12,542,538) (14,035,219)
22,596,971 27,719,582 27,027,749 30,927,529 35,289,371 34,312,050
260,889,740 283,486,711 311,206,293 338,234,042 369,161,571 404,450,942
$ 283,486,711 $ 311,206,293 $ 338,234,042 $ 369,161,571 $ 404,450,942 $ 438,762,992
$ 9,753,253 $ 10,471,204 $ 11,366,407 $ 11,712,945 $ 13,046,505 $ 14,591,459
4,406,956 4,793,245 5,184,834 5,177,300 5,728,802 6,304,954
(6,861,490) 35,438,150 20,602,217 38,962,631 (25,094,034) 37,622,396
(7,089,473) (8,347,798) (9,643,873) (10,905,346) (12,542,538) (14,035,219)
(132,486) (199,970) (133,140) (180,015) (216,792) (238,847)
(6,921) (6,007) (5,193) 1,233 258,697 (1,669)
69,839 42,148,824 27,371,252 44,768,748 (18,819,360) 44,243,074
228,847,550 228,917,389 271,066,213 298,437,465 343,206,213 324,386,853
228,917,389 271,066,213 298,437,465 343,206,213 324,386,853 368,629,927
$ 54,569,322 $ 40,140,080 $ 39,796,577 $ 25,955,358 $ 80,064,089 $ 70,133,065
80.75% 87.10% 88.23% 92.97% 80.20% 84.02%
$ 62,831,331 $ 68,196,291 $ 74,016,219 $ 73,961,425 $ 81,831,666 $ 90,070,764
86.85% 58.86% 53.77% 35.09% 97.84% 77.86%
105
CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2024
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 21 years(longest amortization ladder)
Asset Valuation Method 10-year smoothed market, 12%soft corridor
Inflation 2.5%
Salary Increases 3.6%to 11.85%including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that vary by age.
Last updated for the 2023 valuation pursuant
to an experience study of the period ending 2022.
Mortality Post-retirement:2019 Municipal Retirees of Texas Mortality Tables.
Male rates are multiplied by 103%and female rates are multiplied by 105%.
The rates are projected on a fully generational basis by the most recent
Scale MP-2021 (with immediate convergence). Pre-retirement:PUB(10)
mortality tables,with 110%of the Public Safety table used for males and
100%of the General Employee table used for females.The rates are
projected on a fully generational basis by the most recent Scale MP-2021
(with immediate convergence).
Other Information
There were no benefit changes during the year.
See Independent Auditors' Report
106
2018 2019 2020 2021 2022 2023 2024
$ 9,582,199 $ 10,313,421 $ 10,806,103 $ 11,542,600 $ 12,658,167 $ 14,190,981 $ 16,069,816
9,618,245 10,377,168 10,63 5,298 11,865,291 12,729,994 13,927,874 16,299,740
$ (36,046) $ (63,747) $ 170,805 $ (322,691) $ (71,827) $ 263,107 $ (229,924)
$ 61,743,107 $ 67,091,746 $ 68,196,291 $ 74,016,219 $ 73,961,425 $ 81,831,666 $ 90,070,764
15.57% 15.46% 15.60% 16.03% 17.21% 17.02% 18.10%
107
CITY OF ROUND ROCK,TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2024
(UNAUDITED)
Schedule of Changes in the Total OPEB Liability and Related Ratios
Supplemental Death Benefit Fund
Measurement period ended December 31, 2017 2018 2019
Service Cost $ 87,800 $ 106,813 $ 102,294
Interest 63,146 66,031 72,369
Changes in assumptions or other inputs 176,033 (160,017) 438,301
Differences between expected and actual
experience - (41,694) (36,755)
Benefit payments (11,707) (12,566) (13,639)
Net change in total OPEB liability 315,272 (41,433) 562,570
Total OPEB liability- beginning 1,632,491 1,947,763 1,906,330
Total OPEB liability-ending $ 1,947,763 $ 1,906,330 $ 2,468,900
Covered employee payroll $ 58,533,338 $ 62,831,331 $ 68,196,291
Total OPEB liability as a percentage of
covered payroll 3.33% 3.03% 3.62%
Self-Funded Health Insurance
Measurement period ended December 31, 2017 2018 2019
Service Cost $ 837,881 $ 886,296 $ 919,177
Interest 477,714 498,983 532,239
Changes in assumptions or other inputs 798,106 (643,572) 882,735
Differences between expected and actual
experience (114,595) (196,828)
Benefit payments (431,570) (465,610) (597,720)
Net change in total OPEB liability 1,567,536 276,097 1,539,603
Total OPEB liability- beginning 12,758,523 14,326,059 14,602,156
Total OPEB liability-ending $ 14,326,059 $ 14,602,156 $ 16,141,759
Covered employee payroll $ 58,533,338 $ 62,831,331 $ 68,196,291
Total OPEB liability as a percentage of
covered payroll 24.5% 23.2% 23.7%
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.
108
2020 2021 2022 2023
$ 148,032 $ 177,507 $ 204,579 $ 108,085
69,727 63,208 63,338 93,651
461,065 115,743 (1,322,164) 135,131
(42,783) (49,160) 20,053 (527)
(14,803) (36,981) (40,916) (54,042)
621,238 270,317 (1,075,110) 282,298
2,468,900 3,090,138 3,360,455 2,285,345
$ 3,090,138 $ 3,360,455 $ 2,285,345 $ 2,567,643
$ 74,016,219 $ 73,961,425 $ 81,831,666 $ 90,070,764
4.17% 4.54% 2.79% 2.85%
2020 2021 2022 2023
$ 1,405,816 $ 1,743,411 $ 1,743,411 $ 1,373,314
472,779 337,146 377,547 775,204
- 1,414,747 (2,275,360) (446,469)
- (756,790) (113,031) (2,191,053)
(711,164) (861,044) (709,355) (543,027)
1,167,431 1,877,470 (976,788) (1,032,031)
16,141,759 17,309,190 19,186,660 18,209,872
$ 17,309,190 $ 19,186,660 $ 18,209,872 $ 17,177,841
$ 74,016,219 $ 73,171,576 $ 81,845,996 $ 90,070,764
23.4% 26.2% 22.2% 19.1%
109
'fill
I EXA S-:
0 -A*11
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.
111
CITY OF ROUND ROCK,TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2024
Community Hotel-Motel
Development Hotel-Motel Occupancy Innovation and
Block Grant Occupancy Tax Venue Tax Development
ASSETS
Cash and cash equivalents $ $ 1,515,224 $ 2,369,813 $ -
Investments 5,316,144 8,310,423 -
Receivables-
Accounts and other 904,276 250,241 -
Accrued interest 55,280 57,045 21,429
Grants 74,013 - - -
Restricted assets-
Cash and cash equivalents - 532,014 - 328,948
Investments - 1,866,564 - 1,154,107
Total assets $ 74,013 $ 10,189,502 $ 10,987,522 $ 1,504,484
LIABILITIES
AND FUND BALANCES
Liabilities -
Accounts payable $ 74,013 $ 633,966 $ 95,936 $ -
Accrued payroll - 40,364 109,732 -
Unearned revenue - - -
Total liabilities 74,013 674,330 205,668
Fund balances-
Restricted -authorized construction - 1,765,565 -
Restricted - hotel-motel tax - 71749,607 10,781,854 -
Restricted -public safety - - -
Restricted -general government - -
Committed -general government - -
Committed -capital projects funds - - -
Committed -culture and recreation - - 1,483,055
Assigned -culture and recreation - - - 21,429
Total fund balances - 9,515,172 10,781,854 1,504,484
Total liabilities and
fund balances $ 74,013 $ 10,189,502 $ 10,987,522 $ 1,504,484
112
Formerly
Public Nonmajor Fund Total Nonmajor
Library and Education& Roadway Governmental
Recreational Public Safety Government Impact Fees Funds
$ 1,563,940 $ 240,025 $ 348,570 $ - $ 6,037,572
5,481,798 842,120 1,222,952 - 21,173,437
- - - - 1,154,517
38,479 6,090 8,517 - 186,840
- - - - 74,013
- - 860,962
- - - - 3,020,671
$ 7,084,217 $ 1,088,235 $ 1,580,039 $ - $ 32,508,012
$ 57,325 $ 16,850 $ $ $ 878,090
27,213 - 177,309
1,883,979 - 1,883,979
1,968,517 16,850 2,939,378
- - - - 1,765,565
- - 18,531,461
1,071,385 1,071,385
- - 1,580,039 1,580,039
1,343,048 - - 1,343,048
804,645 - - 804,645
- - 1,483,055
2,968,007 - - 2,989,436
5,115,700 1,071,385 1,580,039 - 29,568,634
$ 7,084,217 $ 1,088,235 $ 1,580,039 $ - $ 32,508,012
113
CITY OF ROUND ROCK,TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30,2024
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 2,284,775
Fines and forfeitures -
Intergovernmental 1,039,968 - 9,470,207
Hotel occupancy tax - 8,813,123 3,761,396 4,353,092
Contributions 53,000 - -
Investment and other - 597,355 316,870 203,755
Total revenues 1,039,968 9,463,478 6,363,041 14,027,054
Expenditures-
Current-
General government 320,082 - - 10,556,334
Public safety - - -
Culture and recreation 2,674,612 3,519,929
Principal retirement - 25,036
Interest and fiscal charges - - 1,284
Capital projects 719,886 4,676,876 -
Total expenditures 1,039,968 7,351,488 3,546,249 10,556,334
Excess(deficiency)of
revenues over expenditures - 2,111,990 2,816,792 3,470,720
Other financing sources(uses) -
Issuance of debt/leases/SBITA - - 189,258 -
Transfers in - - - -
Transfers out - (3,782,652) (2,792,900) (4,934,334)
Total other financing
sources(uses) - (3,782,652) (2,603,642) (4,934,334)
Net change in fund balances - (1,670,662) 213,150 (1,463,614)
Fund balances, October 1,2023,
as previously reported - 11,185,834 10,568,704 2,968,098
Change within financial reporting entity
(nonmajor to major fund) - - - -
Fund balances,October 1,2023,
as adjusted or restated - 11,185,834 10,568,704 2,968,098
Fund balances,September 30,2024 $ - $ 9,515,172 $ 10,781,854 $ 1,504,484
114
Formerly Total
Public Nonmajor Fund Nonmajor
Library and Education& Roadway Governmental
Recreational Public Safety Government Impact Fees Funds
142,602 $ $ 142,602
100,739 - - - 100,739
936,792 - 3,221,567
- 173,733 173,733
- - 10,510,175
- - - 16,927,611
496,019 - - - 549,019
368,032 71,086 79,429 - 1,636,527
1,901,582 244,819 222,031 - 33,261,973
21,978 - 279,547 11,177,941
- 91,534 - 91,534
1,337,156 - 7,531,697
- - - 25,036
- - 1,284
495,382 - 5,892,144
1,854,516 91,534 279,547 - 24,719,636
47,066 153,285 (57,516) - 8,542,337
- - - 189,258
675,000 - - 675,000
(1,412,727) - (12,922,613)
(737,727) - (12,058,355)
(690,661) 153,285 (57,516) (3,516,018)
5,806,361 918,100 1,637,555 247,461 33,332,113
- - - (247,461) (247,461)
5,806,361 918,100 1,637,555 - 33,084,652
$ 5,115,700 $ 1,071,385 $ 1,580,039 $ - $ 29,568,634
115
rE y
116
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
GENERAL, DEBT SERVICE,
AND NONMAJOR SPECIAL REVENUE FUNDS
117
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2024
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2023
Budgeted Amounts 2023
Original Final Actual Variance Actual
Revenues-
Taxes and franchise-
Property tax $ 57,000,000 $ 57,000,000 $ 56,761,147 $ (238,853) $ 48,675,329
Penalty and interest 89,000 89,000 127,122 38,122 108,241
Sales tax 69,348,000 69,348,000 69,348,000 - 65,321,000
Franchise 7,386,000 7,386,000 7,725,652 339,652 7,851,750
Bingo tax 50,000 50,000 51,246 1,246 51,299
Mixed drink tax 1,075,000 1,075,000 1,147,286 72,286 997,711
Total taxes and franchise 134,948,000 134,948,000 135,160,453 212,453 123,005,330
Licenses, permits and fees-
Building permits 1,155,000 1,155,000 1,667,119 512,119 1,851,207
Other permits 42,900 42,900 7,780 (35,120) 98,435
Fees 1,653,900 1,653,900 945,687 (708,213) 2,411,014
Total licenses, permits,and fees 2,851,800 2,851,800 2,620,586 (231,214) 4,360,656
Charges for services -
Trash collection fees 1,387,900 1,387,900 1,411,268 23,368 1,308,868
Swimming pool fees 1,637,000 1,637,000 1,684,296 47,296 1,812,496
Recreation program fees 2,144,000 2,421,500 2,827,520 406,020 2,654,955
Filing and reproduction fees 15,000 15,000 33,946 18,946 9,504
Other 87,300 87,300 206,381 119,081 150,483
Total charges for services 5,271,200 5,548,700 6,163,411 614,711 5,936,306
Fines and forfeitures 1,125,000 1,125,000 1,062,649 (62,351) 1,048,377
Grants 4,812,500 4,812,500 2,951,528 (1,860,972) 4,212,345
Investment and other-
Investment income 250,000 250,000 3,022,336 2,772,336 2,294,840
Other 5,128,500 5,128,500 5,507,533 379,033 5,343,221
Total investment and other 5,378,500 5,378,500 8,529,869 3,151,369 7,638,061
Total revenues 154,387,000 154,664,500 156,488,496 1,823,996 146,201,075
118
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2024
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2023
Budgeted Amounts 2023
Original Final Actual Variance Actual
Expenditures-
Current-
General government
Executive-
Personnel services $ 20,967,300 $ 19,367,737 $ 17,197,795 $ 2,169,942 $ 16,466,009
Operations 13,007,400 13,374,900 14,134,199 (759,299) 9,945,863
Capital outlay - - - - 10,394
Capital projects 130,000 55,000 28,290 26,710 -
Total executive 34,104,700 32,797,637 31,360,284 1,437,353 26,422,266
Judicial-
Personnel services 1,305,700 1,348,698 1,172,630 176,068 1,155,658
Operations 77,400 80,285 80,285 - 64,559
Total judicial 1,383,100 1,428,983 1,252,915 176,068 1,220,217
Total general government 35,487,800 34,226,620 32,613,199 1,613,421 27,642,483
Public safety
Police-
Personnel services 38,722,400 38,503,299 38,169,196 334,103 34,896,719
Operations 4,918,200 5,376,964 5,095,483 281,481 4,682,830
Capital outlay 759,900 805,900 432,102 373,798 8,899
Total police 44,400,500 44,686,163 43,696,781 989,382 39,588,448
Fire -
Personnel services 31,503,100 31,562,058 30,916,264 645,794 29,426,458
Operations 3,718,500 3,718,500 3,644,519 73,981 2,400,040
Capital outlay 885,000 885,000 118,392 766,608 68,783
Total fire 36,106,600 36,165,558 34,679,175 1,486,383 31,895,281
Total public safety 80,507,100 80,851,721 78,375,956 2,475,765 71,483,729
119
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2024
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2023
Budgeted Amounts 2023
Original Final Actual Variance Actual
Expenditures-
Current-
Public works
Administration-
Personnel services $ 6,527,900 $ 6,737,551 $ 6,639,110 $ 98,441 $ 5,980,667
Operations 5,026,300 5,029,500 3,391,183 1,638,317 4,158,974
Capital outlay 35,000 35,000 - 35,000 -
Total administration 11,589,200 11,802,051 10,030,293 1,771,758 10,139,641
Streets-
Personnel services 4,120,300 4,305,323 3,832,428 472,895 3,287,149
Operations 4,188,800 4,185,600 3,515,912 669,688 3,345,302
Capital outlay - - - - 63,350
Total streets 8,309,100 8,490,923 7,348,340 1,142,583 6,695,801
Maintenance shop-
Personnel services 2,160,400 2,192,208 2,033,155 159,053 1,780,999
Operations 548,800 513,815 312,409 201,406 343,892
Capital outlay 130,000 191,485 191,481 4 17,603
Total maintenance shop 2,839,200 2,897,508 2,537,045 360,463 2,142,494
Total public works 22,737,500 23,190,482 19,915,678 3,274,804 18,977,936
120
CITY OF ROUND ROCK,TEXAS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2024
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2023
Budgeted Amounts 2023
Original Final Actual Variance Actual
Expenditures-
Current-
Culture and recreation
Library-
Personnel services $ 3,986,600 $ 4,105,480 $ 3,910,930 $ 194,550 $ 3,478,263
Operations 899,500 899,500 844,989 54,511 724,753
Total library 4,886,100 5,004,980 4,755,919 249,061 4,203,016
Parks and recreation -
Personnel services 13,013,500 13,635,697 12,562,476 1,073,221 11,515,503
Operations 4,646,600 4,647,980 4,515,297 132,683 4,280,614
Capital outlay - - - - 113,315
Culture-Parks-capital projects 152,000 150,620 73,749 76,871 -
Total parks and recreation 17,812,100 18,434,297 17,151,522 1,282,775 15,909,432
Total culture and recreation 22,698,200 23,439,277 21,907,441 1,531,836 20,112,448
Total expenditures 161,430,600 161,708,100 152,812,274 8,895,826 138,216,596
Excess(deficiency) of
revenues over expenditures (7,043,600) (7,043,600) 3,676,222 10,719,822 7,984,479
Other financing sources(uses) -
Issuance of debt/leases/SBITA - - 701,304 701,304 -
Transfers in 7,250,300 7,250,300 7,250,300 - 6,905,000
Transfers out (1,700,000) (2,369,434) (2,369,434) - (502,741)
Total other financing sources(uses) 5,550,300 4,880,866 5,582,170 701,304 6,402,259
Net change in fund balances $ (1,493,300) $ (2,162,734) 9,258,392 $ 11,421,126 14,386,738
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 1,242,873 659,773
Fund Balance,October 1, 2023 63,699,353 48,652,842
Fund balance,September 30, 2024 $ 74,200,618 $ 63,699,353
121
CITY OF ROUND ROCK, TEXAS
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Taxes and franchise $ 24,960,800 $ 24,960,800 $ 24,646,584 $ (314,216)
Investment and other 15,000 15,000 1,058,819 1,043,819
Total revenues 24,975,800 24,975,800 25,705,403 729,603
Expenditures-
Debt service -
Principal retirement 21,424,600 22,104,512 22,104,512 -
Interest and fiscal charges 10,749,084 11,010,808 11,010,808 -
Total expenditures 32,173,684 33,115,320 33,115,320 -
Excess(deficiency)of revenues
over expenditures (7,197,884) (8,139,520) (7,409,917) 729,603
Other financing sources(uses) -
Transfers in 8,721,684 8,721,684 8,721,661 (23)
Total other financing sources(uses) 8,721,684 8,721,684 8,721,661 (23)
Net change in fund balances $ 1,523,800 $ 582,164 1,311,744 $ 729,580
Fund balance, October 1, 2023 4,110,112
Fund balance, September 30, 2024 $ 5,421,856
122
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 30,2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Intergovernmental $ 1,654,373 $ 1,654,373 $ 1,039,968 $ (614,405)
Total revenues 1,654,373 1,654,373 1,039,968 (614,405)
Expenditures-
Current-
General government-
Operations 545,282 545,282 320,082 225,200
Capital projects 1,109,091 1,109,091 719,886 389,205
Total expenditures 1,654,373 1,654,373 1,039,968 614,405
Net change in fund balances $ - $ - - $ -
Fund balance, October 1,2023
Fund balance, September 30,2024 $
123
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, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Hotel occupancy tax $ 6,701,900 $ 6,701,900 $ 8,813,123 $ 2,111,223
Contributions - - 53,000 53,000
Investment and other 130,500 130,500 461,432 330,932
Total revenues 6,832,400 6,832,400 9,327,555 2,495,155
Expenditures-
Current-
Culture and recreation-
Personnel services 752,200 754,800 754,770 30
Operations 2,672,000 2,615,092 1,919,842 695,250
Capital projects - 4,676,876 4,676,876 -
Total expenditures 3,424,200 8,046,768 7,351,488 695,280
Excess(deficiency)of revenues over
expenditures 3,408,200 (1,214,368) 1,976,067 3,190,435
Other financing sources (uses) -
Transfers out (1,669,427) (3,782,652) (3,782,652) -
Total other financing sources(uses) (1,669,427) (3,782,652) (3,782,652) -
Net change in fund balances $ 1,738,773 $ (4,997,020) (1,806,585) $ 3,190,435
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 135,923
Fund balance, October 1, 2023 11,185,834
Fund balance, September 30, 2024 $ 9,515,172
124
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 30,2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Charges for services $ 1,950,000 $ 2,022,000 $ 2,284,775 $ 262,775
Hotel occupancy tax 3,513,600 3,513,600 3,761,396 247,796
Investment and other 50,000 50,000 176,620 126,620
Total revenues 5,513,600 5,585,600 6,222,791 637,191
Expenditures-
Current-
Culture and recreation-
Personnel services 1,877,100 1,949,100 1,919,417 29,683
Operations 3,492,500 3,492,500 1,600,512 1,891,988
Principal retirement - - 25,036 (25,036)
Interest and fiscal charges - - 1,284 (1,284)
Total expenditures 5,369,600 5,441,600 3,546,249 1,895,351
Excess(deficiency) of revenues over
expenditures 144,000 144,000 2,676,542 2,532,542
Other financing sources(uses) -
issuance of debt/leases/SBITA - - 189,258 189,258
Transfers out (2,792,900) (2,792,900) (2,792,900) -
Total other financing sources(uses) (2,792,900) (2,792,900) (2,603,642) 189,258
Net change in fund balances $ (2,648,900) $ (2,648,900) 72,900 $ 2,721,800
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 140,250
Fund balance, October 1,2023 10,568,704
Fund balance, September 30,2024 $ 10,781,854
125
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, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Intergovernmental $ 9,035,000 $ 9,035,000 $ 9,470,207 $ 435,207
Hotel occupancy tax 5,595,640 5,595,640 4,353,092 (1,242,548)
Investment and other 60,000 60,000 151,067 91,067
Total revenues 14,690,640 14,690,640 13,974,366 (716,274)
Expenditures-
Current-
General Government-
Operations 9,756,306 10,556,334 10,556,334
Total expenditures 9,756,306 10,556,334 10,556,334
Excess(deficiency)of revenues over
expenditures 4,934,334 4,134,306 3,418,032 (716,274)
Other financing sources(uses) -
Transfers out (4,934,334) (4,934,334) (4,934,334) -
Total other financing sources(uses) (4,934,334) (4,934,334) (4,934,334)
Net change in fund balances $ - $ (800,028) (1,516,302) $ (716,274)
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 52,688
Fund balance, October 1, 2023 2,968,098
Fund balance, September 30, 2024 $ 1,504,484
126
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 30,2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Licenses, permits and fees $ 100,000 $ 100,000 $ 100,739 $ 739
Charges for services 797,500 797,500 936,792 139,292
Contributions 46,800 46,800 496,019 449,219
Investment and other 30,122 30,122 273,425 243,303
Total revenues 974,422 974,422 1,806,975 832,553
Expenditures-
Current-
General government-
Operations 830,450 830,450 21,978 808,472
Total general government 830,450 830,450 21,978 808,472
Culture and recreation-
Personnel services 652,000 652,000 628,485 23,515
Operations 853,763 853,763 708,671 145,092
Capital projects - 495,382 495,382 -
Total culture and recreation 1,505,763 2,001,145 1,832,538 168,607
Total expenditures 2,336,213 2,831,595 1,854,516 977,079
Excess(deficiency)of revenues over
expenditures (1,361,791) (1,857,173) (47,541) 1,809,632
Other financing sources(uses) -
Transfers in 675,000 675,000 675,000 -
Transfers out - (1,412,727) (1,412,727)
Total other financing sources(uses) 675,000 (737,727) (737,727)
Net change in fund balances $ (686,791) $ (2,594,900) (785,268) $ 1,809,632
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 94,607
Fund balance, October 1,2023 5,806,361
Fund balance,September 30,2024 $ 5,115,700
127
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, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Fines and forfeitures $ 86,000 $ 86,000 $ 173,733 $ 87,733
Investment and other 16,550 16,550 56,119 39,569
Total revenues 102,550 102,550 229,852 127,302
Expenditures -
Current-
Public safety-
Operations 678,414 678,414 69,794 608,620
Capital projects 216,432 216,432 21,740 194,692
Total expenditures 894,846 894,846 91,534 803,312
Net change in fund balances $ (792,296) $ (792,296) 138,318 $ 930,614
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 14,967
Fund balance, October 1, 2023 918,100
Fund balance, September 30, 2024 $ 1,071,385
128
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, 2024
Budgeted Amounts
Original Final Actual Variance
Revenues-
Taxes and franchise $ 176,000 $ 176,000 $ 142,602 $ (33,398)
Investment and other 2,000 2,000 58,489 56,489
Total revenues 178,000 178,000 201,091 23,091
Expenditures-
Current-
General Government-
Operations 433,000 433,000 279,547 153,453
Total expenditures 433,000 433,000 279,547 153,453
Net change in fund balances $ (255,000) $ (255,000) (78,456) $ 176,544
Reconciliation between budgetary basis actual and GAAP
Increase(decrease) in fair value of investments 20,940
Fund balance,October 1,2023 1,637,555
Fund balance,September 30,2024 $ 1,580,039
129
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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 130
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 140
local revenue sources,the property and sales tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the 150
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 159
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 161
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.
131
CITY OF ROUND ROCK,TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2015 2016 2017 2018
Governmental activities-
Net investment in capital assets $ 299,730,557 $ 310,185,706 $ 356,586,425 $ 373,007,353
Restricted 48,019,726 51,813,118 48,954,352 48,357,161
Unrestricted 53,355,360 52,451,939 29,054,168 28,585,838
Total governmental activities net position $ 401,105,643 $ 414,450,763 $ 434,594,945 $ 449,950,352
Business-type activities-
Net investment in capital assets $ 228,866,895 $ 234,981,264 $ 245,005,044 $ 268,467,171
Restricted 19,215,972 15,275,659 19,800,722 22,628,600
Unrestricted 110,519,279 126,490,054 126,634,362 138,980,320
Total business-type activities net position $ 358,602,146 $ 376,746,977 $ 391,440,128 $ 430,076,091
Primary government-
Net investment in capital assets $ 528,597,452 $ 545,166,970 $ 601,591,469 $ 641,474,524
Restricted 67,235,698 67,088,777 68,755,074 70,985,761
Unrestricted 163,874,639 178,941,993 155,688,530 167,566,158
Total primary government net position $ 759,707,789 $ 791,197,740 $ 826,035,073 $ 880,026,443
Source:Annual Comprehensive Financial Reports
Notes:
The City implemented GASB Statement No.75 in 2018.As a result, net position for 2017 was restated.
The City implemented GASB Statement No.96 in 2023.As a result, net position for 2022 was restated.
132
2019 2020 2021 2022 2023 2024
$ 400,490,136 $ 442,969,195 $ 432,348,991 $ 402,903,584 $ 461,228,728 $ 499,732,191
44,334,128 23,471,549 92,772,878 132,351,451 186,392,436 174,686,345
28,918,565 33,581,912 13,728,700 68,809,157 25,817,240 60,004,524
$ 473,742,829 $ 500,022,656 $ 538,850,569 $ 604,064,192 $ 673,438,404 $ 734,423,060
$ 283,846,141 $ 294,760,377 $ 310,014,313 $ 333,196,242 $ 361,729,550 $ 389,534,428
24,343,881 16,315,836 11,750,401 13,866,060 10,427,716 10,326,824
146,681,470 168,868,607 179,998,306 186,396,785 201,529,190 210,847,662
$ 454,871,492 $ 479,944,820 $ 501,763,020 $ 533,459,087 $ 573,686,456 $ 610,708,914
$ 684,336,277 $ 737,729,572 $ 742,363,304 $ 736,099,826 $ 822,958,278 $ 889,266,619
68,678,009 39,787,385 104,523,279 146,217,511 196,820,152 185,013,169
175,600,035 202,450,519 193,727,006 255,205,942 227,346,430 270,852,186
$ 928,614,321 $ 979,967,476 $ 1,040,613,589 $ 1,137,523,279 $ 1,247,124,860 $ 1,345,131,974
133
CITY OF ROUND ROCK,TEXAS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2015 2016 2017 2018
Expenses:
Governmental activities-
General government $ 28,860,077 $ 28,434,006 $ 24,864,772 $ 23,408,887
Public safety 45,236,987 49,439,902 52,243,460 57,987,997
Public works 33,412,841 33,448,357 34,359,785 47,120,999
Culture and recreation 19,202,557 20,885,009 24,130,067 25,218,145
Interest on long-term debt 8,118,490 8,294,279 8,075,351 8,415,687
Issuance Costs
Total governmental activities expenses 134,830,952 140,501,553 143,673,435 162,151,715
Business-type activities-
Water and wastewater utility 46,069,705 47,947,818 49,400,833 51,749,727
Golf course 144,993 133,270 1,857,334 1,642,036
Total business-type activities expenses 46,214,698 48,081,088 51,258,167 53,391,763
Total primary government expenses 181,045,650 188,582,641 194,931,602 215,543,478
Program revenues:
Governmental activities-
Charges for services-
General government 2,168,842 2,258,333 19,778,439 2,273,091
Public safety 2,461,782 1,669,550 1,478,161 1,762,172
Public works 749,524 742,437 607,398 693,223
Culture and recreation 3,288,970 3,919,254 5,133,816 5,489,515
Operating grants and contributions 1,199,574 946,604 1,202,810 2,574,008
Capital grants and contributions 4,234,018 8,013,039 5,958,205 18,206,390
Total governmental activities program revenues 14,102,710 17,549,217 34,158,829 30,998,399
Business-type activities-
Charges for services-
Water and wastewater utility 45,898,090 48,653,788 51,980,615 55,139,117
Golf course 320,846 360,371 733,883 299,761
Capital grants and contributions 17,742,568 19,607,086 15,642,381 30,495,633
Total business-type activities program revenues 63,961,504 68,621,245 68,356,879 85,934,511
Total primary government program revenues 78,064,214 86,170,462 102,515,708 116,932,910
Net(expense)revenue-
Governmental activities (120,728,242) (122,952,336) (109,514,606) (131,153,316)
Business-type activities 17,746,806 20,540,157 17,098,712 32,542,748
Total primary government net expense (102,981,436) (102,412,179) (92,415,894) (98,610,568)
134
2019 2020 2021 2022 2023 2024
$ 27,861,595 $ 27,467,722 $ 35,906,343 $ 41,210,815 $ 48,259,094 $ 48,573,651
64,196,001 64,151,715 64,975,588 67,534,584 78,793,508 85,295,488
36,261,500 38,606,348 43,588,532 40,067,607 46,224,524 47,492,344
27,821,410 26,355,801 26,874,261 30,667,820 34,898,867 39,499,859
8,525,551 9,382,120 10,264,036 11,292,992 11,000,425 10,635,859
730,985
164,666,057 165,963,706 181,608,760 190,773,818 219,176,418 232,228,186
54,388,260 53,999,588 58,063,832 63,886,112 68,229,079 75,163,447
2,399,582 2,818,489 3,699,848 4,290,895 4,104,094 4,390,104
56,787,842 56,818,077 61,763,680 68,177,007 72,333,173 79,553,551
221,453,899 222,781,783 243,372,440 258,950,825 291,509,591 311,781,737
3,189,150 4,529,682 2,824,567 2,962,085 3,619,177 3,596,694
2,298,635 1,684,921 1,396,999 1,705,859 1,626,659 1,494,261
1,347,815 700,442 970,763 873,899 1,874,377 427,679
5,649,283 4,082,796 5,807,940 6,544,740 7,318,494 7,824,051
2,987,128 3,742,160 4,261,827 4,802,100 4,949,732 4,045,133
9,914,802 9,464,089 10,054,791 23,442,401 27,815,280 22,420,807
25,386,813 24,204,090 25,316,887 40,331,084 47,203,719 39,808,625
56,951,931 60,811,441 60,618,367 67,172,508 68,399,789 65,567,096
1,971,887 2,684,066 3,506,792 3,920,614 3,765,883 4,259,813
21,584,780 18,443,560 22,288,498 34,040,331 38,995,646 40,899,755
80,508,598 81,939,067 86,413,657 105,133,453 111,161,318 110,726,664
105,895,411 106,143,157 111,730,544 145,464,537 158,365,037 150,535,289
(139,279,244) (141,759,616) (156,291,873) (150,442,734) (171,972,699) (192,419,561)
23,720,756 25,120,990 24,649,977 36,956,446 38,828,145 31,173,113
(115,558,488) (116,638,626) (131,641,896) (113,486,288) (133,144,554) (161,246,448)
(CONTINUED)
135
CITY OF ROUND ROCK,TEXAS
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2015 2016 2017 2018
General revenues and other changes
in net position:
Governmental activities-
Taxes-
Property $ 39,932,573 $ 44,239,067 $ 49,107,424 $ 54,082,288
Franchise 7,255,212 7,175,948 7,103,548 7,140,940
Sales 67,620,848 67,340,120 64,209,719 72,861,565
Hotel occupancy 5,083,556 5,407,667 5,515,163 5,714,235
Public service 515,778 566,712 627,164 647,243
Investment earnings and other 5,020,786 7,957,942 8,201,944 9,024,223
Transfers 3,740,000 3,610,000 3,492,871 (2,961,771)
Total governmental activities 129,168,753 136,297,456 138,257,833 146,508,723
Business-type activities-
Miscellaneous
Investment earnings and other 866,927 1,214,674 2,289,777 3,131,444
Transfers (3,740,000) (3,610,000) (3,492,871) 2,961,771
Total business-type activities (2,873,073) (2,395,326) (1,203,094) 6,093,215
Total primary government 126,295,680 133,902,130 137,054,739 152,601,938
Change in net position:
Governmental activities 8,440,511 13,345,120 28,743,227 15,355,407
Business-type activities 14,873,733 18,144,831 15,895,618 38,635,963
Total primary government $ 23,314,244 $ 31,489,951 $ 44,638,845 $ 53,991,370
136
2019 2020 2021 2022 2023 2024
$ 57,396,623 $ 64,744,623 $ 68,187,362 $ 70,551,060 $ 74,006,361 $ 81,719,209
7,407,178 7,060,026 6,808,434 7,429,827 8,017,834 7,868,254
75,690,767 78,361,955 90,406,552 104,397,185 104,713,662 103,711,976
6,000,447 4,111,858 11,003,127 15,128,191 17,048,182 16,927,611
697,835 620,996 867,626 1,020,842 1,157,865 1,198,532
12,180,534 9,081,735 12,650,685 11,176,195 31,393,569 36,093,335
3,698,337 4,058,250 5,196,000 5,355,000 5,605,000 5,885,300
163,071,721 168,039,443 195,119,786 215,058,300 241,942,473 253,404,217
4,772,982 4,010,588 2,364,223 94,621 7,004,224 11,734,645
(3,698,337) (4,058,250) (5,196,000) (5,355,000) (5,605,000) (5,885,300)
1,074,645 (47,662) (2,831,777) (5,260,379) 1,399,224 5,849,345
164,146,366 167,991,781 192,288,009 209,797,921 243,341,697 259,253,562
23,792,477 26,279,827 38,827,913 64,615,566 69,969,774 60,984,656
24,795,401 25,073,328 21,818,200 31,696,067 40,227,369 37,022,458
$ 48,587,878 $ 51,353,155 $ 60,646,113 $ 96,311,633 $ 110,197,143 $ 98,007,114
137
CITY OF ROUND ROCK,TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2015 2016 2017 2018
Nonspendable-
Inventories, prepaids and other $ 430,821 $ 372,288 $ 232,004 $ 253,592
Restricted for-
Debt service 2,351,780 2,749,645 3,880,982 4,853,517
Authorized construction 117,515,606 77,545,478 81,086,426 62,649,029
Hotel-motel tax 10,934,476 12,653,710 6,526,672 7,863,705
Public safety 1,274,293 676,724 585,878 750,657
General government - - 1,269,075 1,268,233
Committed to-
General government 856,977 1,081,159 124,703 232,243
Capital projects funds 24,696,122 24,865,777 28,397,665 21,934,876
Streets and drainage 1,145,826 1,152,195 - -
Culture and recreation 322,576 293,694 - -
Assigned to-
Culture and recreation 272,666 212,080 1,004,583 1,274,658
Unassigned 50,277,389 52,427,796 50,090,080 53,558,920
Total governmental funds $ 210,078,532 $ 174,030,546 $ 173,198,068 $ 154,639,430
138
2019 2020 2021 2022 2023 2024
$ 226,190 $ 1,094,653 $ 1,783,208 $ 404,179 $ 930,720 $ 406,099
5,019,375 5,080,091 7,901,595 7,041,411 6,492,541 7,804,285
72,690,649 58,069,777 124,312,278 171,116,800 160,664,737 181,119,801
6,807,382 7,440,558 10,222,462 15,269,909 19,061,932 18,531,461
1,025,501 757,284 735,896 887,046 918,100 1,071,385
1,439,377 1,401,931 1,433,730 1,472,144 1,637,555 1,580,039
883,883 1,030,812 881,812 1,077,519 1,198,346 1,343,048
28,971,259 23,259,722 41,256,494 63,546,738 49,633,658 52,617,062
- - 1,483,055 1,483,055 1,483,055 1,483,055
1,638,534 1,834,073 2,496,916 3,852,615 4,022,080 2,989,436
49,498,684 59,547,303 58,913,029 48,267,275 63,341,210 73,794,519
$ 168,200,834 $ 159,516,204 $ 251,420,475 $ 314,418,691 $ 309,383,934 $ 342,740,190
139
CITY OF ROUND ROCK,TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2015 2016 2017 2018
Revenues-
Taxes and franchise $ 115,508,506 $ 119,211,433 $ 121,142,245 $ 134,637,978
Licenses,permits and fees 1,704,374 1,843,633 1,646,077 2,037,211
Charges for services 4,513,428 5,172,465 6,307,377 6,563,868
Fines and forfeitures 2,451,316 1,573,476 1,440,795 1,616,922
Intergovernmental 1,679,993 990,683 2,950,833 9,511,022
Hotel occupancy tax 5,083,556 5,407,667 5,515,163 5,714,235
Investment and other 600,919 368,748 931,601 2,335,783
Contributions 7,207,478 7,963,854 8,253,614 9,260,526
Total revenues 138,749,570 142,531,959 148,187,705 171,677,545
Expenditures-
General government 23,838,520 24,394,392 21,055,932 23,744,730
Public safety 43,067,272 44,388,881 47,595,884 52,839,347
Public works 12,328,284 12,062,839 12,682,503 14,748,037
Culture and recreation 14,766,040 15,078,964 17,219,700 18,513,216
Capital projects 33,476,554 65,414,999 63,268,686 59,809,511
Debt service-
Principal retirement 13,919,366 13,463,922 13,287,160 14,325,970
Interest and fiscal charges 8,597,372 9,641,498 8,306,767 9,244,645
Payment to refunding agent - - 10,050,443 -
Other charges 942,596 229,245 423,510 -
Total expenditures 150,936,004 184,674,740 193,890,585 193,225,456
Excess of revenues
over(under)expenditures (12,186,434) (42,142,781) (45,702,880) (21,547,911)
Other financing sources(uses)-
Issuance of lease(1) 2,000,000 2,250,000 - 5,981,044
Issuance of debt 70,665,000 11,450,000 38,725,000 -
Premium on bonds issued 6,369,020 1,094,690 2,652,531
Payment to refunded bond escrow agent (48,205,991) (12,309,895) - -
Transfers in 27,070,865 30,552,126 31,908,470 22,678,818
Transfers out (23,330,865) (26,942,126) (28,415,599) (25,640,589)
Total other financing sources(uses) 34,568,029 6,094,795 44,870,402 3,019,273
Net change in fund balances $ 22,381,595 $ (36,047,986) $ (832,478) $ (18,528,638)
Capital outlay including amounts reported
under departmental current expenditures $ 35,385,140 $ 65,116,395 $ 90,020,515 $ 46,896,225
Debt service as a percentage of
noncapital expenditures 19.5% 19.3% 20.8% 16.1%
(1) Issuance of lease refers to 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 leases are referred to as Notes Payable throughout
the Annual Comprehensive Financial Reporting,beginning in FY 2022.
140
2019 2020 2021 2022 2023 2024
$ 141,150,180 $ 150,717,481 $ 166,252,010 $ 183,162,281 $ 188,219,454 $ 200,938,298
2,703,240 1,834,311 2,543,143 2,959,342 4,443,231 2,721,325
6,916,463 5,274,975 7,092,585 7,929,787 8,749,122 9,384,978
2,153,309 1,623,976 1,152,990 1,380,898 1,246,354 1,236,382
3,822,463 5,540,163 11,400,907 24,816,402 20,188,481 13,461,703
6,000,447 4,111,858 11,003,127 15,128,191 17,048,182 16,927,611
4,670,671 9,165,467 7,261,313 2,778,909 21,244,232 26,200,867
12,728,177 3,336,036 2,338,936 3,285,315 7,880,970 7,306,731
180,144,950 181,604,267 209,045,011 241,441,125 269,020,026 278,177,895
22,423,018 24,841,662 31,324,914 35,377,631 39,592,677 44,587,914
56,063,867 56,494,602 59,445,458 64,353,318 71,658,737 79,580,289
15,077,947 17,290,725 16,946,664 19,056,273 19,383,569 20,342,252
20,213,897 19,022,847 19,931,144 24,017,708 26,620,493 29,439,138
90,837,258 82,350,573 47,540,721 87,575,761 85,953,520 89,783,294
17,792,363 18,296,526 20,148,502 19,650,222 24,867,905 24,666,863
8,616,675 10,243,591 10,367,70S 12,133,701 12,237,746 11,206,001
13,758,972 7,010,563 - - - -
967,009 276,058 1,225,607 1,512,308 730,985
245,751,006 235,827,147 206,930,715 263,676,922 280,314,647 300,336,736
(65,606,056) (54,222,880) 2,114,296 (22,235,797) (11,294,621) (22,158,841)
2,900,000 - - - -
67,685,000 41,480,000 84,040,000 156,315,000 47,425,562
4,884,123 - 7,036,650 2,642,581 2,204,235
- - (6,482,675) (79,078,568) - -
42,110,430 39,495,337 75,973,539 70,036,965 43,448,957 82,379,430
(38,412,093) (35,437,087) (70,777,539) (64,681,965) (37,189,093) (76,494,130)
79,167,460 45,538,250 89,789,975 85,234,013 6,259,864 55,515,097
$ 13,561,404 $ (8,684,630) $ 91,904,271 $ 62,998,216 $ (5,034,757) $ 33,356,256
$ 87,242,801 $ 80,820,915 $ 40,870,035 $ 86,316,796 $ 90,130,318 $ 94,451,327
16.7% 18.4% 18.4% 17.9% 19.5% 17.8%
141
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
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
2023 24,341,708,325 1,568,031,609 25,909,739,934 4,216,713,471 21,693,026,463 0.3420
2024 24,404,533,554 1,682,642,459 26,087,176,013 2,035,120,348 24,052,055,665 0.3420
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.
142
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
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
2023 0.2244 0.1176 0.3420 1.0626 0.3756 0.1162 1.8964
2024 0.2385 0.1035 0.3420 0.9190 0.3774 0.1156 1.7540
Source: Williamson County Tax Office
143
CITY OF ROUND ROCK,TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2024 2015
Net %of Total Net %of Total
Assessed Net Assessed Assessed Net Assessed
Name of Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Kalahari Resorts and Conventions $ 531,828,337 1 2.211 % $ - -%
Dell Computer Holdings, LP 459,052,012 2 1.909 271,831,118 1 2.822
CMF 15 Portfolio, LLC/
Colonial Grand Apartments 166,473,839 3 0.692 61,751,700 7 0.641
CPG Round Rock, LP/
Round Rock Premium Outlets 162,797,859 4 0.677 137,998,674 2 1.432
Texas Essential Housing
Public Facility Corporation 151,124,375 5 0.628 - -
Dell Computer Corp. 135,466,474 6 0.563 74,321,793 4 0.771
2811 LA Frontera LP/
Griffis Apartments 101,470,905 7 0.422 - -
36 Hundred Apartments, LLC 100,000,000 8 0.416
Stanmore Warner Ranch Apts, LLC 99,980,961 9 0.416 -
TMP Parkside Project, LLC/
Parkside at Round Rock 99,150,000 10 0.412 - -
Ascension Seton
Medical Center Williamson - - 106,340,261 3 1.104
Baltgem Development Corp./
La Frontera Village - - 73,283,114 5 0.761
Columbia/St.David Healthcare - - 63,124,215 6 0.655
Oncor Electric Delivery Co. - - 43,434,180 8 0.451
Round Rock Luxury Apts, LTD - - 42,000,000 9 0.436
FST La Frontera, LLC - - 39,971,279 10 0.415
$ 2,007,344,762 8.346% $ 914,056,334 9.488%
Source: Williamson Central Appraisal District
144
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
2015 $ 39,792,302 $ 39,697,745 99.76% $ - $ 39,697,745 99.76 %
2016 44,063,923 43,894,949 99.62 292 43,895,241 99.62
2017 49,113,540 48,988,540 99.75 536 48,989,076 99.75
2018 53,890,399 53,775,618 99.79 801 53,776,419 99.79
2019 57,296,592 57,106,114 99.67 (28,094) 57,078,020 99.62
2020 64,708,293 64,443,984 99.59 (28,400) 64,415,584 99.55
2021 68,133,164 67,922,644 99.69 (64,061) 67,858,583 99.60
2022 70,241,994 70,033,185 99.70 (177,016) 69,856,169 99.45
2023 74,262,463 74,016,437 99.67 (228,088) 73,788,349 99.36
2024 82,116,022 81,754,170 99.56 - 81,754,170 99.56
145
CITY OF ROUND ROCK,TEXAS
SALES TAX AND AD VALOREM TAX
LAST TEN FISCAL YEARS
Total 1% %of Equivalent 1%
Fiscal Sales Tax Ad Valorem Ad Valorem of Ad Valorem Sales Tax
Year Collected Tax Levy Tax Levy Tax Rate Population Per Capita
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
2023 58,549,152 74,262,463 78.84 0.2699 128,957 454
2024 60,473,315 82,116,022 73.64 0.2514 132,927 455
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.
146
N�"d �
�.........
147
CITY OF ROUND ROCK,TEXAS
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
Calendar Retail Wholesale
Year Trade Manufacturing Services Trade Utilities
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
2022 2,278,068,535 1,457,309,601 957,452,286 308,871,134 57,963,650
2023 2,266,709,722 1,015,127,456 948,686,397 314,327,473 61,761,524
$ 18,237,273,727 $ 10,263,192,855 $ 6,377,688,368 $ 1,984,709,691 $ 418,854,469
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 taxpayers are not available. The categories presented provide alternative information indicative of sales tax revenue
sources.
148
City
Direct State
Finance, Sales Tax Sales Tax Over-
Construction Insurance Total Rate Rate lapping
$ 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
194,741,671 3,034,913 5,257,441,790 2.00 6.25 8.25
192,283,446 3,343,849 4,802,239,867 2.00 6.25 8.25
$ 1,522,232,657 $ 28,707,191 $ 38,832,658,958
149
CITY OF ROUND ROCK,TEXAS
HOTEL TAXPAYERS
YEAR ENDED SEPTEMBER 30, 2024
(cash basis of accounting)
Tota I
Hotel Motel Hotel Motel Collections Number %of
Occupancy Occupancy Year Ended of Total
Taxpayer Tax Venue Tax Sept.30,2024 Rooms Collections
Kalahari Resorts&Conventions $ 6,290,421 $ 1,797,274 $ 8,087,695 975 47.18%
Austin Marriott North 730,015 210,037 940,052 295 5.48
Embassy Suites 614,813 177,435 792,248 180 4.62
Hyatt Place 289,155 82,616 371,771 138 2.17
Hilton Garden Inn 275,394 79,479 354,873 122 2.07
Homewood Suites 270,779 77,366 348,145 115 2.03
Home2 Suites North 256,160 73,189 329,349 119 1.92
Element 246,912 71,259 318,171 123 1.86
La Quinta East 234,518 67,016 301,534 99 1.76
Aloft 233,172 67,293 300,465 120 1.75
Holiday Inn Express North 222,544 64,226 286,770 109 1.67
Courtyard Marriott 217,023 62,007 279,030 113 1.63
Springhill Suites 212,760 61,361 274,121 104 1.60
Hampton Inn 204,543 58,515 263,058 93 1.53
Tru By Hilton 202,042 57,910 259,952 98 1.52
Home2 Suites South 191,251 54,643 245,894 91 1.43
Holiday Inn Express South 190,383 54,827 245,210 91 1.43
Towneplace Suites 185,490 53,000 238,490 102 1.39
AVID 168,325 48,431 216,756 89 1.26
La Quinta South 155,725 44,770 200,495 86 1.17
Holiday Inn 154,063 44,463 198,526 116 1.16
Wingate Inn 148,322 42,806 191,128 100 1.11
Ruby Hotel 135,653 39,072 174,725 39 1.02
Residence Inn 133,375 38,107 171,482 96 1.00
Staybridge 123,575 35,558 159,133 81 0.93
Short Term Rentals 122,497 35,294 157,791 89 0.92
Microtel 118,814 34,290 153,104 82 0.89
Best Western 103,195 29,782 132,977 68 0.78
Sleep Inn 102,060 29,455 131,515 74 0.77
La Quinta North 92,752 26,680 119,432 116 0.70
Red Roof Inn 87,958 25,322 113,280 107 0.66
Motel 78,710 22,670 101,380 60 0.59
Country Inn 78,459 22,417 100,876 61 0.59
Extended Stay America#6030 78,388 22,396 100,784 138 0.59
Quality Inn 78,291 22,388 100,679 49 0.59
Extended Stay America#6197 72,722 20,820 93,542 104 0.55
Comfort Suites 70,676 20,407 91,083 63 0.53
Woodspring Suites South 55,458 16,005 71,463 122 0.42
Candlewood Suites 49,790 14,361 64,151 98 0.37
Woodspring Suites North 47,158 13,474 60,632 121 0.35
$ 13,323,341 $ 3,818,421 $ 17,141,762 5,046 100.0%
150
CITY OF ROUND ROCK,TEXAS
HOTEL OCCUPANCY TAX COLLECTION HISTORY BY QUARTER
LAST TEN FISCAL YEARS
(cash basis of accounting)
Fiscal 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year Oct.—Dec. Jan.—Mar. Apr.—June July—Sept. Total
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
2023 3,913,244 3,959,304 4,634,993 4,540,641 17,048,182
2024 3,926,574 3,194,936 4,501,096 5,519,156 17,141,762
151
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
201S $ 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 26,31S,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
2023 149,840,000 143,025,000 103,002,121 64,728,235 460,595,356 S.32 3,572
2024 158,870,000 155,955,000 111,357,951 61,125,710 487,308,661 5.03 3,666
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.
152
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
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
2023 128,957 21,693,026 321,916,918 4,110,112 317,806,806 1.47 2,464
2024 132,927 24,052,056 354,995,635 5,421,856 349,573,779 1.45 2,630
*Source: Planning Department,City of Round Rock
Note: Includes Certificates of Obligation,General Obligation Bonds, Limited Tax Notes, Notes Payable,Excess Sales Tax
Liability, Leases,and Subscriptions net of related premiums and discounts.
153
CITY OF ROUND ROCK,TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
YEAR ENDED SEPTEMBER 30, 2024
Total Estimated
General Estimated Share of
Debt Percentage Overlapping
Name of Governmental Unit Outstanding* Applicable** Debt
Debt repaid with property taxes-
Williamson County $ 1,311,170,000 17.68% $ 231,814,856
Round Rock Independent
School District 660,675,000 37.59 248,347,733
Round Rock MUD#1 22,675,000 100.00 22,675,000
Round Rock MUD#2 16,395,000 100.00 16,395,000
Travis County 1,099,010,000 0.23 2,527,723
Austin Community College 540,180,000 5.97 32,248,746
Georgetown ISD 899,940,000 1.17 10,529,298
Pflugerville ISD 730,030,000 0.26 1,898,078
Travis County Healthcare District 165,705,000 0.23 381,122
Upper Brushy Creek WICD 49,920,000 27.42 13,688,064
Subtotal,overlapping debt 580,505,620
City direct debt 426,182,951
Total direct and overlapping debt $ 1,006,688,571
*Gross Debt as of September 30,2024
**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.
154
Roc
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155
CITY OF ROUND ROCK,TEXAS
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2015 2016 2017 2018
Debt limit $ 1,640,628,922 $ 1,786,728,268 $ 1,928,938,196 $ 2,120,343,710
Total net debt applicable to limit 178,893,220 170,530,355 193,049,018 183,486,483
Legal debt margin $ 1,461,735,702 $ 1,616,197,913 $ 1,735,889,178 $ 1,936,857,227
Total net debt applicable to the limit
as a percentage of debt limit 10.90% 9.54% 10.01% 8.65%
Legal Debt Margin Calculation for Fiscal Year 2024
Total assessed value $ 24,052,055,665
Debt limit-maximum serviceable at permitted allocation
of$1.50 per$100 of assessed value $ 4,095,895,523
Amount of debt applicable to debt limit:
Total General Obligation Debt $ 337,952,961
Less:
Amount available in Debt Service Fund (5,421,856)
Total net debt applicable to debt limit 332,531,105
Legal debt margin $ 3,763,364,418
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, 2023, assessed valuation of $24,052,055,665 at
100%collection,tax revenue of$360,780,835 would be produced. This revenue could service the debt on $4,095,895,523
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 2025 $ 30,552,629
Tax Year 2023 Interest and Sinking Fund Tax Levy @ 99%Collection $ 28,163,900
Interest and Sinking Fund Balance as of September 30,2024 5,421,856
Self-Supporting Debt 1,872,650
35,458,406
Estimated Balance,September 30, 2025 $ 4,905,777
156
2019 2020 2021 2022 2023 2024
$ 2,315,885,331 $ 2,494,413,S66 $ 2,615,352,206 $ 3,009,199,691 $ 3,694,169,480 $ 4,095,895,523
205,255,625 224,164,909 266,285,834 315,2SS,537 301,800,792 332,531,105
$ 2,110,629,706 $ 2,270,248,657 $ 2,349,066,372 $ 2,693,944,154 $ 3,392,368,688 $ 3,763,364,418
8.86% 8.99% 10.18% 10.48% 8.17% 8.12%
1S7
CITY OF ROUND ROCK,TEXAS
CONDENSED UTILITY STATEMENT OF OPERATIONS
LAST TEN FISCAL YEARS
2015 2016 2017 2018
Gross Revenue(1)
Charges for services $ 41,880,906 $ 44,406,721 $ 47,769,478 $ 50,715,034
Licenses, permits and fees 4,017,184 4,247,067 4,211,137 4,226,721
Investment and other income 863,900 1,211,532 2,284,171 3,122,041
Total 46,761,990 49,865,320 54,264,786 58,063,796
Direct Operating Expense(2)
Personnel services 9,228,272 9,742,128 11,871,681 10,940,702
Contracted services 14,500,269 15,222,355 14,854,212 16,695,290
Materials and supplies 1,837,026 2,091,331 2,504,640 2,392,415
Heat, light and power 1,783,408 1,662,779 1,618,297 1,578,540
Total 27,348,975 28,718,593 30,848,830 31,606,947
Net available for Debt Service $ 19,413,015 $ 21,146,727 $ 23,415,956 $ 26,456,849
Debt Service Requirements(P&I) $ 6,894,788 $ 5,994,842 $ 6,352,459 $ 5,444,927
Revenue Bond Coverage 2.82 3.53 3.67 4.86
Metered Water Customers 32,447 32,930 33,602 34,581
Metered Wastewater Customers 31,531 31,984 32,614 33,277
Average Annual Principal and Interest Requirements, FY 2025-2039 $ 4,913,857
Coverage of Average Requirements by FY 2024 Net Revenue 6.62
Estimated Maximum Principal and Interest Requirements, FY 2025 $ 5,952,331
Estimated Coverage of Maximum Requirements by FY 2024 Net Revenue 5.46
Parity Debt Outstanding at FY 2024 $ 56,175,000
(1) Water and Wastewater Fund operating and non-operating revenues
(2) Water and Wastewater Fund operating expenses,excluding depreciation/amortization
158
2019 2020 2021 2022 2023 2024
$ 51,973,150 $ 55,695,939 $ 55,106,110 $ 60,923,212 $ 61,870,880 $ 58,952,865
4,828,792 4,693,720 5,472,368 6,302,178 6,394,076 6,447,691
4,772,982 4,010,185 2,363,247 90,182 7,289,303 14,432,338
61,574,924 64,399,844 62,941,725 67,315,572 75,554,259 79,832,894
12,809,236 12,751,829 12,896,946 13,633,693 16,702,089 18,437,608
14,844,774 13,759,401 16,476,180 18,392,887 17,758,878 21,436,997
3,385,739 2,747,862 3,051,250 4,234,393 4,319,533 4,545,633
2,188,155 2,452,847 2,404,405 2,891,204 3,109,243 2,901,029
33,227,904 31,711,939 34,828,781 39,152,177 41,889,743 47,321,267
$ 28,347,020 $ 32,687,905 $ 28,112,944 $ 28,163,395 $ 33,664,516 $ 32,511,627
$ 6,102,631 $ 6,082,481 $ 6,073,581 $ 6,062,631 $ 5,956,631 $ 5,948,181
4.65 5.37 4.63 4.65 5.65 5.47
35,397 35,998 36,593 37,324 37,659 38,441
34,085 35,299 35,879 36,581 36,883 37,635
159
e
. .........
160
CITY OF ROUND ROCK,TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(2)
Per (3) (4) (5)
Fiscal (1) Personal Capita Median School Unemployment
Year Population Income Income Age Enrollment Rate
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
2023 128,957 8,650,822,431 67,083 35.2 46,385 3.2
2024 132,927 9,680,807,556 72,828 35.4 47,131 3.3
Sources: (1) Planning Department,City of Round Rock
(2) U.S. Dept.of Commerce/Bureau of Economic Development;data is for Williamson County,which is
representative of the City;data for City not available.
(3) U.S.Census Bureau
(4) Round Rock Independent School District
(5) U.S. Bureau of Labor Statistics
161
CITY OF ROUND ROCK,TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2024 2015
%of Total %of Total
City City
Name of Employer Employees Rank Employment Employees Rank Employment
Dell Technologies 12,000 1 14.05% 14,000 1 24.09%
Round Rock Independent School District 6,341 2 7.42 5,800 2 9.98
St. David's Round Rock Medical Center 1,300 3 1.52 690 9 1.19
Kalahari Resorts&Conventions 1,200 4 1.40 - -
City of Round Rock 1,177 5 1.38 890 4 1.53
UPS 914 6 1.07 - -
Baylor Scott&White Healthcare 911 7 1.07 750 7 1.29
Ascension Seton Medical Center Williamson 831 8 0.97 - -
Airco Mechanical 827 9 0.97 - -
Emerson Automation Solutions 750 10 0.88 880 5 1.51
Sears TeleServe - - 1,600 3 2.75
Round Rock Premium Outlets 800 6 1.38
Texas Guaranteed Student Loan 700 8 1.20
Liquidation Channel - - 600 10 1.03
Wayne,a GE Energy Business - 600 10 1.03
Total 26,251 30.73% 27,310 46.98%
Source: City of Round Rock Finance Department/Round Rock Chamber of Commerce
162
CITY OF ROUND ROCK,TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:
General government 159 163 179 194 202 205 206 216 223 237
Public safety-
Police-
Officers 167 168 174 176 176 180 180 186 200 200
Civilians 67 72 74 75 78 78 78 82 82 87
Fire-
Firefighters&officers 129 132 134 149 152 153 155 159 163 169
Civilians 8 8 8 9 10 10 8 22 24 25
Public works-
Street&Stormwater 69 76 73 77 81 82 82 90 96 96
Shop 18 19 18 18 19 19 19 19 22 23
Culture&Recreation-
Library 31 31 31 31 32 33 34 40 40 49
Parks&Recreation 91 106 102 105 107 108 108 110 129 134
Water&Wastewater Utility 129 128 128 131 151 151 151 151 153 157
Total 868 903 921 965 1,008 1,019 1,021 1,075 1,132 1,177
Source:City of Round Rock Finance Department
163
CITY OF ROUND ROCK,TEXAS
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2015 2016 2017 2018
Function:
Police-
Arrests 4,600 4,476 4,600 4,152
Accident reports 2,249 2,370 2,370 2,762
Index crimes reported* 2,329 2,383 2,383 2,870
Crimes per thousand residents* 22.00 22.50 22.50 26.50
Officers per thousand of population 1.53 1.43 1.48 1.56
Fire-
Incident volume** 9,928 9,346 10,777 11,328
Priority calls answered** 2,780 3,735 2,548 5,083
Non-emergency calls answered** 7,148 5,611 8,229 6,245
Priority calls-response less than 6 minutes 56% 61% 58% 53%
Public Works-
Street-
Street resurfacing (lane miles) 40 60 60 60
Potholes repaired annually 1,500 400 300 300
Signals maintained 84 83 89 90
Shop-
Work orders 4,399 4,761 4,620 4,733
Number of departments served 12 12 12 12
Culture and Recreation-
Library-
Number of items circulated 972,094 1,080,312 1,188,757 1,229,141
Number of card holders 99,822 77,818 79,415 81,181
Number of library visits 388,625 391,256 389,930 388,732
Parks&Recreation-
Total park acres maintained 2,045 2,045 2,270 2,270
Number of athletic fields maintained 49 49 49 49
Number of trees planted 110 195 408 43
Number of recreation participants 832,184 988,337 1,080,853 1,140,094
Water-
New connections 402 480 665 911
Line maintenance work orders 3,317 3,512 3,346 3,013
Average monthly consumption 505,251,158 536,082,308 571,062,558 612,026,451
Wastewater-
Average monthly treatment 385,611,068 416,357,161 425,631,471 426,330,521
Line feet reviewed for infiltration&inflow 187,464 189,418 206,675 169,579
Source: City of Round Rock Finance Department
*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.
164
2019 2020 2021 2022 2023 2024
4,272 3,592 3,049 4,243 4,275 4,208
2,698 2,636 2,236 3,109 3,408 3,281
2,648 2,400 6,960 8,522 8,365 7,873
23.40 21.00 56.10 67.80 57.70 58.40
1.53 1.53 1.49 1.48 1.52 1.48
11,813 12,189 13,193 14,876 15,781 16,160
4,078 3,248 2,590 6,288 3,715 4,844
7,735 8,941 10,603 8,588 12,066 11,316
79% 73% 72% 67% 58% 71%
121 183 190 140 80 72
280 250 220 260 285 320
93 100 100 100 101 104
4,936 4,980 2,972 4,492 4,763 4,896
12 12 12 12 14 14
1,315,186 986,686 1,105,973 1,171,561 1,290,953 1,500,148
83,507 80,656 65,159 65,788 74,490 81,173
416,391 219,736 156,742 275,851 449,234 552,424
2,285 2,285 2,295 2,301 2,305 2,328
49 51 51 51 51 51
74 98 73 21 56 51
892,870 332,895 513,322 518,194 548,195 717,461
789 534 486 710 347 814
1,778 2,366 2,383 2,513 2,508 3,599
543,547,232 620,080,709 622,781,309 773,701,493 802,575,698 671,803,014
410,300,487 440,156,307 498,103,453 537,916,079 554,289,168 464,221,683
133,098 109,080 102,296 194,727 204,657 166,454
165
CITY OF ROUND ROCK,TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2015 2016 2017 2018
Function:
Police-
Number of stations 1 1 1 1
Number of units 240 259 2S6 261
Fire-
Number of stations 7 7 9 9
Number of fire trucks 16 15 16 16
Public Works-
Street-
Lane miles 1,250 1,200 1,200 1,300
Drainage miles 150 150 151 200
Number of street lights 5,400 5,433 5,604 5,674
Number of traffic signals 84 83 89 90
Shop-
Repair facilities 1 1 1 1
Number of bays 19 13 18 18
Culture and Recreation-
Library-
Number of library books 156,277 257,667 213,381 225,903
Number of library facilities 1 1 1 1
Parks&Recreation-
Total park acres 2,035 2,035 2,270 2,270
Number of athletic fields 49 49 59 59
Number of parks 62 62 61 61
Number of tennis courts 2S 25 22 21
Number of pools 4 4 4 4
Water-
Number of miles of water lines* 608 615 614 651
Pumping stations 10 10 10 10
Tanks 19 19 19 19
Treatment capacity(millions of gallons/day) 52 52 52 52
Wastewater-
Number of miles of wastewater mains 424 427 428 461
Wastewater lift stations 12 12 12 12
Source: City of Round Rock Finance Department
*Includes MUDS and private owned lines
166
2019 2020 2021 2022 2023 2024
1 1 1 1 1 1
241 252 258 270 268 274
9 9 9 9 9 9
17 17 17 20 11 12
1,350 1,450 1,500 1,500 1,500 1,500
200 333 352 368 395 522
5,733 5,771 5,749 5,787 5,787 8,878
93 100 100 100 101 104
1 2 2 2 2 2
18 21 21 21 21 21
230,094 227,880 228,866 230,577 218,927 218,545
1 1 1 1 1 1
2,285 2,285 2,295 2,301 2,305 2,328
61 61 61 61 61 61
61 61 61 61 61 61
21 21 21 21 21 21
4 4 4 4 4 4
636 667 698 722 711 713
11 11 11 11 11 11
19 19 20 20 20 20
52 61 61 61 61 61
445 467 477 495 514 516
11 11 11 11 12 12
167
CITY OF ROUND ROCK,TEXAS
TOP TEN WATER CUSTOMERS
SEPTEMBER 30, 2024
%of Total
Water Water
Consumption Consumption
Name of Customer Type of Business in Gallons in Gallons
City of Georgetown,Texas Municipality 580,443,000 7.200%
Fern Bluff Municipal Utility District Municipal Utility District 279,881,900 3.472
Paloma Lake Municipal Utility District Municipal Utility District 247,239,800 3.067
Williamson County Municipal Utility District#11 Municipal Utility District 185,925,700 2.306
Williamson County Municipal Utility District#10 Municipal Utility District 162,002,800 2.010
Kalahari Resorts&Conventions Hotel 145,490,000 1.805
Chandler Creek Municipal Utility District Municipal Utility District 144,316,500 1.790
Vista Oaks Municipal Utility District Municipal Utility District 133,642,600 1.658
Jonah Water Special Utility District Special Utility District 96,022,200 1.191
Dell, Inc. Electronic Equipment 75,912,600 0.942
2,050,877,100 25.441 %
Source: City of Round Rock Finance Department
168
CITY OF ROUND ROCK,TEXAS
WATER AND WASTEWATER RETAIL RATES
SEPTEMBER 30, 2024
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:$3.85
Block 3:$S.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 615.27
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 and No.0-2022-020.
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170
CITY OF ROUND ROCK,TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2024
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-253655-OLS-23 $ $ 10,614 $ 10,614
Total Institute of Museum and Library Services 10,614 10,614
U.S.Department of Health and Human Services
Pass-Through from Substance Abuse and Mental Health Services
Administration
FY 2022 Congressional Directive Spending Projects 93.493 13656629 158,892 158,892
Total U.S.Department of Health and Human Services 158,892 158,892
U.S.Department of Homeland Security
Pass-Through from Texas A&M Engineering Extension Service
National Urban Search&Rescue Response System
TC Idalia 97.025 TC Idalia 17,509 17,509
Total National Urban Search&Rescue Response System 17,509 17,509
Pass-Through from Texas A&M Engineering Extension Service
Fire Management Assistance Grant
Wildfire Season 2024 97.046 24-0001 9,590 9,590
Total Fire Management Assistance Grant 9,590 9,590
Pass-Through from Texas Division of Emergency Management
Disaster Grants-Public Assistance(Presidentially Declared Disasters)
Texas Severe Winter Storm(Mara) 97.036 DR-4705-TX 47,768 47,768
Total Disaster Grants-Public Assistance(Presidentially Declared Disasters) 47,768 47,768
Total U.S.Department of Homeland Security 74,867 74,867
U.S.Department of Housing&Urban Development
Community Development Block Grants/Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218 B18MC480514 169,541 169,541
Community Development Block Grants/Entitlement Grants 14.218 B19MC480514 92,023 92,023
Community Development Block Grants/Entitlement Grants 14.218 B20MC480514 68,553 68,553
Community Development Block Grants/Entitlement Grants 14.218 B21MC480514 41,015 41,015
Community Development Block Grants/Entitlement Grants 14.218 B22MC480514 - 327,000 327,000
Community Development Block Grants/Entitlement Grants 14.218 B23MC480514 94,388 220,095 314,483
Community Development Block Grants/Entitlement Grants(Covid-19) 14.218 B20MW480514 - 27,353 27,353
Total Community Development Block Grants/Entitlement Grants Cluster 94,388 945,580 1,039,968
Total U.S.Department of Housing&Urban Development 94,388 945,580 1,039,968
U.S.Department of Justice
Bulletproof Vest Partnership Program 16.607 FY2023 BVP Program - 2,637 2,637
Total U.S.Department of Justice 2,637 2,637
U.S.Department of the Interior
Pass-Through from Texas Historical Commission
Historic Preservation Fund Grants-In-Aid 15.904 TX-24-013 3,370 3,370
Total U.S.Department of the Interior 3,370 3,370
U.S.Department of the Treasury
Coronavirus State and Local Fiscal Recovery Funds(Covid-19) 21.027 SLT-4414 4,227,904 4,227,904
Pass-Through from Williamson County,Texas
Coronavirus State and Local Fiscal Recovery Funds(Covid-19) 21.027 84,120 84,120
Total Coronavirus State and Local Fiscal Recovery Funds(Covid-79) 4,312,024 4,312,024
Total U.S.Department of the Treasury 4,312,024 4,312,024
171
CITY OF ROUND ROCK,TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2024
Pass-Through
Federal Grantor/Pass-Through Grantor Grant or to Non-State Direct Total
Program Title ALN* Identifying Number Entities Expenditures Expenditures
U.S.Department of Transportation
Federal Transit Cluster
Federal Transit Formula Grants 20.507 TX-2020-026-00 $ $ 39,163 $ 39,163
Federal Transit Formula Grants 20.507 TX-2021-003-00 373,260 373,260
Federal Transit Formula Grants 20.507 TX-2021-039-00 458,110 458,110
Total Federal Transit Cluster 870,533 870,533
Tota(U.S.Deportment of Transportation 870,533 870,533
Total Expenditures of Federal Awards $ 94,388 $ 6,378,517 $ 6,472,905
*Assistance Listing Number(ALN)formerly known as Catalog of Federal Domestic Assistance(CFDA).
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 TC Idalia and Texas Severe Winter Storm that were passed
through the Texas A&M Engineering Extension Service and Texas Division of Emergency Management 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 2024. 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.
172
Austin Office
I. 3600 N.Capital of Texas Hwy.
whitleypenri• Bldg B.Suite
Austin,Texas 78 78746
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, 2024, 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 3,2025.
Report on 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 City'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 or significant deficiencies may exist that were not identified.
Report on 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.
0HLBWE ARE AN INDEPENDENT MEMBER OF
THE GLOBAL ADVISORY 173
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 City'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 City's internal
control and compliance.Accordingly,this communication is not suitable for any other purpose.
Austin,Texas
February 3,2025
174
Austin Office
on 3600 N.Capital of Texas Hwy.
ri• Bldg B.Suite
w h i t l e y p e n
Austin,Texas 78 78746
737.931.8200 Main
whitleypenn.com
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 Federal Program
We have audited City of Round Rock, Texas' (the "City') compliance with the types of compliance requirements identified
as subject to audit 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, 2024. 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 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 30,2024.
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 (GARS); 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.
AN
OKS
W E a3E •NDEGENDEN!MEMBER OF
THE GLOBAL ADVISORY 175
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 City'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 City'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 City'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.
176
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.
WA Z. L cP
Austin,Texas
February 3,2025
177
CITY OF ROUND ROCK,TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30,2024
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:
Assistance Listine
Name of Federal Program or Cluster Number(ALN)
U.S.Department of Housing&Urban Development
Community Development Block Grants/Entitlement Grants Cluster 14.218
U.S.Department of Transportation
Federal Transit Cluster 20.507
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
II. Financial Statement Findings
None noted.
III. Federal Award Findings and Questioned Costs
None noted.
178
CITY OF ROUND ROCK,TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended September 30,2014
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, 2024 has been prepared to address these
requirements.
I.Prior Audit Findings
None noted.
179
CITY OF ROUND ROCK,TEXAS
CORRECTIVE ACTION PLAN
For the Year Ended September 30,2024
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 30,2024 has been prepared to address these requirements.
I.Corrective Action Plan
Not applicable.
180