R-2016-3255 - 2/25/2016RESOLUTION NO. R-2016-3255
WHEREAS, the City of Round Rock's Comprehensive Annual Financial Report ("Report") for the
fiscal year ended September 30, 2015 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 Comprehensive Annual Financial Report for the fiscal year ended
September 30, 2015, 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 25th day of February, 2016.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
Qxw�, x
SARA L. WHITE, City Clerk
0112.1604;00351991
EXHIBIT
CITY or Ruin
COMPREHENSIVE IHNUAL rIHAHCIAL REPORT
2014- 2015
ROUND i��,,
TEXAS
CITY OF ROUND ROCK, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2015
ELECTED OFFICIALS
Alan McGraw, Mayor
George White, Mayor Pro -tem
Craig Morgan, Council Member
Frank Leffingwell, Council Member
Will Peckham, Council Member
Writ Baese, Council Member
Kris Whitfield, Council Member
MANAGEMENT STAFF
Laurie Hadley
City Manager
Bryan Williams
Assistant City Manager
Brooks Bennett
Assistant City Manager
OFFICIAL ISSUING REPORT
Susan L. Morgan, CPA
Chief Financial Officer
:�'N
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter of Transmittal 3
City Organization Chart 11
Certificate of Achievement for Excellence in Financial Reporting 13
FINANCIAL SECTION:
Independent Auditors' Report 17
Management's Discussion and Analysis 21
Basic Financial Statements
Government Wide Financial Statements:
Statement of Net Position 36
Statement of Activities 38
Fund Financial Statements:
Governmental Funds:
Balance Sheet
40
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
43
Statement of Revenues, Expenditures and Changes in
Fund Balances
44
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds
to the Statement of Activities
46
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund
47
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual — Round Rock Transportation and Economic
Development Corporation Revenue Fund
48
Proprietary Funds:
Statement of Net Position
49
Statement of Revenues, Expenses and Changes in Net Position
51
Statement of Cash Flows
52
Fiduciary Fund:
Statement of Fiduciary Net Position
54
Notes to the Financial Statements
57
Required Supplementary Information 108
TABLE OF CONTENTS
(CONTINUED)
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
113
Combining Balance Sheet — Nonmajor Special Revenue Funds
116
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmajor Special Revenue Funds
118
Combining Balance Sheet — Nonmajor Capital Projects Funds
122
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
135
Nonmajor Capital Projects Funds
124
Schedules of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual:
General Fund
128
Debt Service Fund
132
Nonmajor Special Revenue Funds:
Hotel -Motel Occupancy Tax
133
Hotel -Motel Occupancy Venue Tax
134
Police
135
Municipal Court
136
Landscape
137
Community Development Block Grant
138
Library
139
Public Education & Government
140
Traffic Safety Program
141
Supplemental Schedules:
Statement of Changes in Assets and Liabilities — Agency Fund 144
Schedule of Capital Assets — by Sources 147
Schedule of Capital Assets — by Function and Activity 148
Schedule of Changes in Capital Assets — by Function and Activity 150
TABLE OF CONTENTS
(CONTINUED)
STATISTICAL SECTION (UNAUDITED):
Financial Trends:
Net position by Component — Last Ten Fiscal Years 152
Changes in Net position — Last Ten Fiscal Years 154
Fund Balances of Governmental Funds — Last Ten Fiscal Years 158
Changes in Fund Balances of Governmental Funds — Last Ten Fiscal Years 160
Revenue Capacity:
Actual and Taxable Assessed Value of Property — Last Ten Fiscal Years 162
Property Tax Rates — Direct and Overlapping Governments
Per $ 100 of Assessed Value — Last Ten Fiscal Years 163
Principal Property Taxpayers — Current Year and Nine Years Ago 164
Property Tax Levies and Collections — Last Ten Fiscal Years 165
Taxable Sales by Category — Last Ten Calendar Years 166
Hotel Taxpayers 168
Hotel Occupancy Tax Collection History by Quarter — Last Ten Fiscal Years 169
Debt Capacity:
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years 170
Ratios of Net General Bonded Debt Outstanding to Assessed Value and Net
Bonded Debt Per Capita — Last Ten Fiscal Years 171
Computation of Direct and Overlapping Bonded Debt 173
Legal Debt Margin Information — Last Ten Fiscal Years 174
Schedule of Revenue Bond Coverage — Last Ten Fiscal Years 176
Demographic and Economic Information:
Demographic and Economic Statistics — Last Ten Fiscal Years 177
Principal Employers — Current Year and Nine Years Ago 178
Operating Information:
Full -Time Equivalent City Government Employees by Function — Last
Ten Fiscal Years
179
Operating Indicators by Function — Last Ten Fiscal Years
180
Capital Asset Statistics by Function — Last Ten Fiscal Years
182
Top Ten Water Customers
184
Water and Sewer Retail Rates
185
TABLE OF CONTENTS
(CONTINUED)
SINGLE AUDIT SECTION:
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
189
190
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters based
on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 191
Independent Auditors' Report on Compliance for each Major Program and
on Internal Control Over Compliance Required by OMB Circular A-133 193
Schedule of Finding and Questioned Costs 195
INTRODUCTORY SECTION
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2
ROUND ROCK TEXAS
ADMINISTRATION DEPARTMENT
Honorable Mayor and Members of the
City Council
City of Round Rock, Texas
Mayor
Councilmembers
Alan McGraw
Craig Morgan
Frank Leffingwell
Will Peckham
Mayor Pro -Tem
Writ eaese
George White
Kris Whitfield
January 27, 2016
City Manager
Laurie Hadley
City Attorney
Stephan L. Sheets
The Comprehensive Annual Financial Report of the City of Round Rock, Texas for the fiscal year ended
September 30, 2015, is submitted herewith. The City's Finance Department prepared this report. 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, as presented, is accurate in all material aspects and presented
in a manner designed to fairly set forth the financial position and results of operations of the City as measured by
the financial activity of its various funds. All disclosures, necessary to enable the reader to gain the maximum
understanding of the City's financial affairs have been included.
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.
Brockway, Gersbach, Franklin & Niemeier, P.C., Certified Public Accountants, have issued an unmodified
("clean") opinion on the City of Round Rock's financial statements for the year ended September 30, 2015. 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 X1, 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.
CITY OF ROUND ROCK 221 East Main Street, Round Rock, Texas 78664
[P] 512.218.5401 • [F] 512.218.7097 . round rocktexas.gov
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 unit. Component units are legally separate entities for which the
primary government is financially accountable. The City provides a full range of services, which includes 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, sewer and drainage utility system. 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 revenues are reported in a special revenue fund of the City while capital
improvements are reported in a capital project fund of the City.
Annual budgets are legally adopted for the General Fund, Special Revenue Funds, Debt Service Fund, and the
Proprietary Funds. Capital Projects Funds have no binding annual budget. Project -length financial plans are
adopted for all capital projects; accordingly, no comparison of budget to actual is presented in the financial
statements.
Budgetary control is maintained at the department level by the encumbrance of estimated purchase amounts prior
to the release of purchase orders to vendors. Purchase orders which result in an overrun of balances are not released
until additional appropriations are made available. The City had no material encumbrances as of September 30,
2015.
Siznificant Local Economic Events
Strategic Goals
The City of Round Rock is the largest City located within Williamson County and adjacent to the City of Austin.
The City has experienced tremendous growth and this has placed pressures on resources, consequently, the City
must respond to an increased demand for 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 February, 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 staff and financial resources and are the basis for following year's budget development.
Financially Sound Great Community
City Providing High to Live
Value Services
CitycitAuthentic
Infrastructure: ' Downtown -
Today and for Round . - . Exciting Community
Tomorrow Development
"The Sports Capital Sustainable
of Texas" for Tourism Neighborhoods -
and Residents Old and New
Economy
Round Rock ranked No. 3 for Livability.com's "10 Best Affordable Places to Live in 2015." The study conducted
by NerdWallet distinguished between cheap and affordable by comparing income with cost of living. The study
looked at median household income, cost of living, housing, utilities, transportation, health care index, and good
and services.
The City is among the top ten fastest growing economies. According to a socioeconomic growth study by
WalletHub, Round Rock has the best of everything including, jobs, schools, museums and nightlife. The study
compared 515 U.S. cities of varying sizes across ten key metrics, ranging from population growth to unemployment
rate decrease and Round Rock ranked No. 10 overall.
While Texas moves forward cautiously due to declining oil prices, the Central Texas area's geographic and
economic distance from the oil industry has insulated it from any major impacts. Unemployment continues to be
below the national average. The unemployment rate for the City is 3.2%, and remains lower than the Austin metro
area rate of 3.3%, the statewide rate of 4.5% and the national rate of 4.8%. The Austin MSA has one of the lowest
unemployment rates among the nation's 100 largest metro areas. Hiring continues to outpace the nation and job
creation was led by professional and business services. Education and health sectors also saw an increase in jobs
in the area.
Residential and commercial real estate activity in the City is continuing to grow. Residential permits are expected
to grow from 327 single - family units in 2014/15 to 686 units in 2015/16. After the 2008 downturn, much of the
Round Rock area residential growth occurred just outside the city limits, primarily in Municipal Utility Districts
(MUDS). However, several new residential developments have opened within the incorporated city limits spurring
significant residential growth.
The local hotel/motel industry continues to be a particularly vibrant industry for Round Rock. Currently, 26 hotels
with 2,711 rooms are open for business maintaining solid occupancy rates of 75.8%. There are three hotel
developments that are in various stages of completion and by the end of fiscal year 2016, 438 new rooms will be
added. This strong industry bodes well for the hotel occupancy tax collections which support local tourism events
and debt service for the Dell Diamond/Convention Center, the home of the City's Triple A Baseball team, the Round
Rock Express and the Sports Center, the City's 82,800 square foot, indoor sports venue opened in January 2014.
With several area sports facilities in place and statewide events being planned, Round Rock continues its marketing
strategy as the "Sports Capital of Texas." Tourism is an expanded component of the City's overall economic
development strategy. The City's efforts where recently recognized by the Major League Baseball as the number
one "Best Minor League Baseball Towns of 2015".
Economic Development
The City understands that diversification of Round Rock's economy is a key to financial stability. The local retail
market place continues to thrive. The major destination retail hubs provide continued expansion and broaden Round
Rock's economy. These include Round Rock Premium Outlets, which provides over 430,000 square feet of retail
space containing 125 stores in an outdoor village setting and a movie theater. Adjacent to the outlets is a shopping
center featuring IKEA along with other national and regional retailers. Bass Pro Outdoor World, LLC opened a
100,000 square foot facility in June 2015 and employs approximately 175 employees.
Round Rock also continues to see significant growth in the medical industry. Round Rock is home to several
hospitals offering comprehensive healthcare services. In order to keep up with population growth, these providers
have expanded their facilities and services making Round Rock a major healthcare destination.
To complement the healthcare activities, Round Rock is home to several higher education facilities, many of which
focus on healthcare disciplines. The City recognizes that a highly educated workforce is an important component
of a well-rounded economic foundation. Several educational facilities such as Texas A&M Health Science Center,
Texas State University, Austin Community College and the Art Institute call Round Rock home.
The Texas Legislature passed a tuition revenue bond in the 84"' legislative session. The passage of the $48.6 million
bond bill will allow Texas State University to expand its existing health professional buildings in Round Rock. It
is the goal of Texas State to move its entire health professions department to the City. The new health professional
building will include 107,000 square feet and will provide space for a 35 percent enrollment increase in health
professions programs. The bond bill will not fund the total cost of construction, therefore the university will rely
on philanthropic gifts, and a $5 million donation has already been received from the St. David's Foundation.
Additionally, the City Council has approved several economic development agreements in recent months. The
resulting economic expansions have created new jobs, modernized work equipment and/or brought new services to
Round Rock. The long standing partnership between the City and Round Rock Chamber of Commerce continues
to attract new development to the City. The funding is leveraged with the Chamber of Commerce Momentum
funding to create a public/private partnership for economic development priorities. This partnership continues to
yield a new, inspired approach to economic development for Round Rock. The City will see new additions within
the city limits in the next year.
Airco Mechanical, a commercial and residential heating, ventilation and air conditioning service provider will
relocate its central Texas headquarters to Round Rock. The company will bring 400 new jobs and is investing
millions of dollars in the rehabilitation of an existing facility in Round Rock. The new headquarters is revitalizing
a 47,000 square foot vacant building located on the Interstate 35 frontage road.
Odyssey Technical Solutions, LLC that is currently located in the City's extraterritorial jurisdiction will be
relocating their operations into a larger facility within the city limits of Round Rock. Odyssey is the leading repairer
of equipment primarily used in the semiconductor manufacturing industry. They are investing $5.4 million in land,
building, and personal property and will move all current employees to the new location.
Houghton Mifflin Harcourt (HMH) is relocating its Texas regional office to Round Rock. HMH is a leading
provider for pre -K-12 education content, services and cutting-edge technology solutions. The project will bring
over 270 new jobs and will be the main tenant in a new 100,000 square foot Class A office building. The relocation
is estimated to be complete in July 2016.
Relevant Financial Policies
Accounting Svstem and Controls
It is the policy of the City to maintain a General Fund balance equivalent to at least 33% of operations. Working
capital in the Water/Wastewater Utility Fund is also maintained at a similar level of operations. Balances in excess
of the above levels are earmarked for fixture 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.
0
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.
Long-Term Financial Planning
An underlying budgetary influence is that the City's business model has approximately 20.8% of total revenues
provided by sales tax. A half-cent component of the two-cent local sales tax rate exists for the sole purpose of
reducing the property tax rate. The result is a heavy reliance upon the sales tax as a revenue source and reduced
reliance upon the property tax. The sales tax is a less stable revenue source than the property tax, but provides more
discretion to the taxpayer. Because of this revenue makeup, the City tends to carry higher fund balances, estimates
sales tax revenue conservatively, and introduces new programs somewhat more cautiously until projected revenue
levels are attained. The City is also more attentive to the health of its economy because of the reliance upon
commerce to produce the sales tax.
The City's economy is expected to generate approximately $64.8 million in sales tax revenue for fiscal year 2016.
This amount includes the one half (0.5) percent or $16.3 million in additional sales and use tax for roads and
economic development. The remaining one and one half (1.5) percent is projected to generate $48.5 million for
general operations, property tax reduction and capital projects.
The sales tax revenue source is extremely important to the City in that it reduces property taxes and makes up
approximately 50% of the General Fund revenue. The sales tax revenue is subject to economic cycles and
discretionary buying characteristics of the consumer and, accordingly, must be monitored and projected carefully.
Dell, Inc. continues to be a vital part of the Round Rock economy with 4 of its 5 worldwide operating divisions
headquartered in Round Rock. The company has shifted from primarily a computer manufacturer and seller to a
global technology services provider. While this shift has led to declining sales tax revenues for the City from Dell,
the high level jobs provided by the City's largest employer has continued to provide a strong local economy. In
recognition of this business shift and in order to ensure long-term economic stability for the City, the City adopted
a Financial Management Policy in 2009.
The policy was directed at reducing the General Fund's operational reliance on sales tax generated from Dell, Inc.
The Policy's goal was to reduce operational reliance on Dell, Inc. sales tax to 20% of total sales tax collected by
2017. The City's General Fund reliance on net sales tax revenue from Dell, Inc. is budgeted at 15% and the goal is
considered met with the 2015/16 budget.
In addition to the influence of Dell, Inc. on the Round Rock economy, economic activity of the Round Rock
Premium Outlets, Bass Pro Shops, IKEA, and the expansion of the medical and education sectors in the community,
continue to strengthen and diversify our economic base.
The City sets utility rates based on the cost of service. This model establishes an equitable rate structure for total
cost recovery. In order to fund the capital improvement program and to meet increasing system demand and
operational cost pressures, multiple-year rate increases were implemented. Even with the rate increases, Round
Rock water and wastewater rates continue to be among the lowest in the region.
7
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. Significant investment in the medical industry including several state-of-the-art medical
facilities 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 in the community.
With the City's natural commercial attractiveness, a strong economic development plan and a strengthening
economy, the future of the community is bright.
Aivards and Acknowledaentents
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 comprehensive annual
financial report for the fiscal year ended September 30, 2014. This was the twenty-ninth consecutive year that the
City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must
publish an easily readable and efficiently organized comprehensive annual 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 comprehensive
annual 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, 2014. In order 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 City of Round Rock earned the Texas Comptroller Leadership Circle Platinum member certificate. This award
spotlights those local governments who are; opening their books to the public, providing clear, consistent pictures
of spending, and sharing information in a user-friendly format that lets taxpayers easily drill down for more detail.
Additionally, the GFOA awarded a Certificate of Outstanding Achievement in Popular Annual Financial Reporting
for the fiscal year ended September 30, 2014. This award recognizes the City's ability to extract information from
their comprehensive annual 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.
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. Acknowledgement is also given to Brockway,
Gersbach, Franklin & Niemeier, P. C. for their valuable assistance in production of the report. We would also like
to thank the Mayor and Council members for their commitment in planning and conducting the financial operations
of the City in a responsible and progressive manner.
Respectfully submitted,
Laurie Hadley
City Manager
Susan L. Morgan, CPA
Chief Financial Officer
9
H
Municipal Judge
Utilities & Environmental
Services
Planning & Engineering
Water/Wastewater
Treatment
Operations Maintenance
I Water Conservation I
CITY OF ROUND ROCK, TEXAS
CITY ORGANIZATION CHART
Citizens of Round Rock
Mayor & Council I'
City Manager
Assistant City -
Manager Economic Development
Planning &Development`l.l
Services Finance
Commercial & Residential Budget Purchasing r
ns ecbons
--.- - - Municipal Cou t Utility Billing
Code Enforcementa�
Development _I Police Department u
!m Services office
^�� �^� -
!L Patrol
Long Range Planning
& Zoning.�- Investigations
Solid Waste & Recycling j CommunicatqrI]
j
Parks & Recreation
Storm Water Drainage L'
ManagementParksaAnimal Con
_ -„T Recreatwn Centers ;
City Clerk
Transportation AthlehcsiAqualics ---- - —
Department1 Records Management
” ^Forestry
Operations &--- --
Maintenance Fire Department
Transportation General
! General Services- Fire Suppression
Plannin & En ineerin
Transit/ Building Construction & Fire Prevention j
Facili Maintenance 3
j
Public Transportation
^—' Vehicle Maintenance Inspections -t
Construction Inspection Facilit
Services s p t `
Sports Center Public Education
Human Resources
Benefits _
Recruitment _
Risk Management
11
City Attorney
Assistant City
Manager
Information Technology
li Information Technology
Communication
�®Geographic Information
Systems
-
I
Library y
Public Service'
Children's Service
Genealogy _
Digital Resources
Communications
r- Arts & Special Events
Social Media
Website Development
Government Channel
- Downtown Revitalization
Convention &
Visitors Bureau
er— - ---
Neighborhood Development
t'
Legislative
12
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Round Rock
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2014
*0 4,0 -PA* --V
Executive Director/CEO
13
14
FINANCIAL SECTION
15
r
BROCKWAY
GERSBACH
FRANKLIN &
`.I NIEMEIER,P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and
City Council
City of Round Rock, Texas
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fiend information of City of Round Rock, Texas (the
City), as of and for the year ended September 30, 2015, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
17
3520 SW H.K. DODGEM LOOP n TEMPLE, TEXAS 76504.6838 a 254.773.9907 ® Fax 254.773.1570
INDEPENDENT AUDITORS' REPORT
(CONTINUED)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City of Round Rock, Texas, as of September 30, 2015, and the respective changes
in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the
General Fund and the Round Rock Transportation and Economic Development Corporation Revenue Fund for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note I (W) to the financial statements, in 2015 the City adopted new accounting guidance, GASB
statement No. 68, Accounting and Financial Reporting for Pensions. Our opinion is not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis on pages 21 through 33 and the schedules of funding progress, changes in the net pension liability and
related ratios and contributions on pages 108 through 110 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses,to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The introductory section on pages 3 through 13, combining and individual
nonmajor fund financial statements and schedules on pages 112 through 150, and statistical section on pages 152
through 185, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -
Profit Organizations, and is also not a required part of the basic financial statements.
18
INDEPENDENT AUDITORS' REPORT
(CONTINUED)
Other Matters
Other Information (Continued)
The combining and individual nonmajor fund financial statements and schedules and the schedule of expenditures
of federal awards are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards
are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2016, on our
consideration of the City of Round Rock, Texas' internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering City of Round Rock, Texas' internal control over financial reporting and compliance.
Temple, Texas
January 28, 2016
19
20
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2015
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, 2015. 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 at the close of the most recent fiscal year by $824,455,615 (net position). Of this amount,
$170,835,708 (unrestricted net position) may be used to meet the City's ongoing obligations to its citizens
and creditors.
• The City's total net position increased by $19,603,062, after restatement of the beginning net position
balance as disclosed in Note I (W). Most of this increase is a result of contributions from developers in
both governmental and business -type activities.
• At the close of the current fiscal year, the City of Round Rock's governmental funds reported combined
ending fund balances of $210,078,532, an increase of $22,381,595 in comparison with the prior year. The
increase is primarily due to the issuance of $32.5 million in general obligation bonds and certificates of
obligation. Approximately 23.9 percent of the total fund balance amount, $50,277,389, is available for
spending at the government's discretion (unassigned fund balance).
• At the end of the current fiscal year, unassigned fund balance for the general fund was $50,277,389, or
56.1 percent of the total general fund expenditures.
• The City of Round Rock's total debt increased by $8,942,479 during the current fiscal year. The change
was primarily due to issuance of $27.3 million in certificates of obligation, along with the offset of regularly
scheduled debt principal retirement and savings from refunding certificates issuance, more fully described
in Note IV (F) to the financial statements.
• For the year ended September 30, 2015, the City adopted Governmental Accounting Standards Board
(GASB) Statement No. 68, Accounting and Financial Reporting for Pensions - An Amendment of GASB
Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to
the Measurement Date - an Amendment of GASB Statement No. 68. The implementation of these standards
resulted in a prior period adjustment to net position of $26,891,206 to recognize the net pension liability as
of the measurement period of December 31, 2013, and the deferred outflows of resources related to the
City's contributions subsequent to the measurement period through September 30, 2014.
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.
21
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Overview of the Financial Statements (Continued)
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, liabilities, and deferred outflows
(inflows) of resources with the difference reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City of Round Rock is improving or
deteriorating.
The statement ofactivities 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 cashflows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
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 for services (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, sewer, drainage
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 three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on 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 governmentalfunds and governmental activities.
22
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Overview of the Financial Statements (Continued)
The City of Round Rock maintains 31 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in
fund balances for the general fund debt service fund, the Round Rock Transportation and Economic Development
Corporation (RRTEDC) revenue fund, the self -financed construction fund, the 2014 General Obligation Bond fund,
and the 2014 Transportation Certificates of Obligation fund, all of which are considered to be major funds. Data
from the other 25 governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in the report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been
provided for the general fund to demonstrate compliance with the budget.
Proprietary funds. The City of Round Rock maintains two different types of proprietary funds. Enterprise funds
are used to report the same functions presented as business -type activities in the government -wide financial
statements. The City uses enterprise funds to account for its water, sewer and drainage 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 OPEB liability as of September 30, 2015. Because this service predominantly benefits governmental
rather than business -type functions, it has been included within governmental activities in the government -wide
financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the water, sewer and drainage
utility and for the golf course. The water, sewer and drainage utility is considered a major fund of the City. Since
the golf course fund is the only remaining enterprise fund, it is being presented as a major fund even though it does
not meet the criteria of a major fund established in GASB Statement No. 34. The internal service fund is a single
presentation in the proprietary fund financial statements.
Fiduciary funds. Fiduciary finds are used to account for resources held for the benefit of parties outside the
government. The Public Improvement Districts agency fund is reported in the statement of fiduciary net position.
The resources accounted for in this fund are excluded from the government -wide financial statements because these
funds are not available to finance the City's operations. Consequently, the City is responsible for ensuring that
these resources are used only for their intended purpose.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding
of the data provided in the government -wide and fund financial statements.
Other information. The combining statements referred to earlier in connection with nomnajor governmental funds
and individual fund schedules are presented immediately following the notes to the financial statements.
Additional information on capital assets used in the operation of governmental funds is provided following the
individual fund schedules.
23
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
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 $824,455,615 as of
September 30, 2015.
The largest portion of the City's net position (61.05%) reflects its investments in capital assets (e.g., land, buildings
and improvements, improvements other than buildings, machinery and equipment and construction in progress),
less any debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide
services to its citizens; consequently, these assets are not available for future spending. Although the City's
investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
An additional portion of the City's net position (18.23%) represents resources that are subject to external restriction
on how they may be utilized. The remaining balance of unrestricted net position $170,835,708 may be used to meet
the City's ongoing obligations to citizens and creditors.
As of September 30, 2015 and 2014, the City was able to report positive balances in all three categories of net
position, both for the City as a whole, as well as for its separate governmental and business -type activities. The
following table provides a comparative summary of the City's net position as of September 30, 2015 and 2014. The
2014 amounts have been restated for the impact of GASB Statement No. 68.
Current and other assets
Capital assets
Total assets
Deferred outflows
Long term liabilities
Other liabilities
Total liabilities
Deferred inflows
Net position, as restated:
Net investment
in capital assets
Restricted
Unrestricted
Total net position
Governmental
Activities
2015 2014
$ 240,056 $ 217,971
515,762 515,411
755,818 733,382
13,589 9,252
279,970 259,234
23,547 22,276
303,517 281,510
37
Net Position (in 000's)
Business -Type
Activities
2015 2014
$ 138,011 $ 133,717
316,695 311,862
454,706 445,579
Total
2015 2014
$ 378,067 $ 351,688
832,457 827,273
1,210,524 1,178,961
937
696
14,526
9,948
93,797
96,577
373,767
355,811
3,239
5,970
26,786
28,246
97,036
102,547
400,553
384,057
5
-
42
-
274,461 292,532 228,867
131,076 119,539 19,216
60,316 49,053 110,519
$ 465,853 $ 461,124 $ 358,602
24
221,063 503,328 513,595
7,764 150,292 127,303
114,901 170,835 163,954
$ 343,728 $ 824,455 $ 804,852
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Analysis of Changes in Net Position
The following table summarizes the changes in the City's net position from its activities for the fiscal year ended
September 30, 2015 with comparisons to the previous year. The 2014 amounts have been restated for the impact
of GASB Statement No. 68.
25
Changes in Net Position (in 000's)
Governmental
Business -Type
Activities
Activities
Total
2015
2014
2015
2014
2015
2014
Revenues:
Program revenues:
Charges for services
$ 8,669 $
8,971 $
46,219 $
44,088 $
54,888 $
53,059
Operating grants and contributions
1,199
1,042
-
-
1,199
1,042
Capital grants and contributions
4,234
5,901
17,743
10,226
21,977
16,127
General revenues:
Property taxes
39,932
36,502
-
-
39,932
36,502
Franchise taxes
7,255
6,460
-
-
7,255
6,460
Sales tax
67,621
68,462
-
-
67,621
68,462
Hotel occupancy tax
5,084
4,646
-
-
5,084
4,646
Public service taxes
516
478
-
-
516
478
Investment earnings
5,021
1,882
867
1,397
5,888
3,279
Total revenues
139,531
134,344
64,829
55,711
204,360
190,055
Expenses:
General government
27,917
51,738
-
-
27,917
51,738
Public safety
45,237
45,284
-
-
45,237
45,284
Public works
37,074
36,079
-
-
37,074
36,079
Culture and recreation
19,253
18,074
-
-
19,253
18,074
Interest on long-term debt
8,118
8,478
-
-
8,118
8,478
Issuance costs
943
-
-
-
943
-
Water and sewer utility
-
-
46,070
47,809
46,070
47,809
Golf course
-
-
145
71
145
71
Total expenses
138,542
159,653
46,215
47,880
184,757
207,533
Increases in net position before
transfers
989
(25,309)
18,614
7,831
19,603
(17,478)
Transfers
3,740
1,801
(3,740)
(1,801)
-
-
Increase in net position
4,729
(23,508)
14,874
6,030
19,603
(17,478)
Net position - beginning, as restated
461,124
484,632
343,728
337,698
804,852
822,330
Net position - ending
$ 465,853 $
461,124 $
358,602 $
343,728 $
824,455 $
804,852
25
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Analysis of Changes in Net Position (Continued)
Governmental activities. Governmental activities increased the City's net position by $4,729,329 or 24.1 percent
of the total increase in the net position of the City over the prior year. Key factors for the increase are as follows:
REVENUES
Developer contributions of subdivision improvements approximated $3.6 million and are included in
program revenues of public works and culture and recreation activities. This represents an increase of
$2.9 million, or 387.8 percent over prior year.
• Amounts received for property taxes increased from last year by 9.4 percent due primarily to the addition
of new property to the tax base; regularly scheduled debt service requirements on bonds and a reduced
reliance on sales tax. Other factors include continued aggressive collection efforts. Property tax snakes up
31.8 percent of total revenues.
• Sales tax collections of $67.6 million decreased slightly by 1.2 percent, compared to prior year. This is a
result of a shift in Dell, Inc's business model from primarily a computer manufacturer and seller to a global
technology services provider. While this shift has led to declining sales tax revenues for the City from Dell,
sales tax collections from sources other than Dell continue to grow, allowing sales tax revenues to hold
fairly steady from year to year.
• Charges for services decreased by $302,000 primarily due to a decrease in municipal court revenue as a
result of the City of Round Rock Police Department focusing on community policing initiatives.
• Hotel occupancy tax revenues increased as a result of higher occupancy rates for area hotel/motels. The
occupancy rate increased from 69.0 percent in 2014 to 75.8 percent in 2015.
• Program revenues remained fairly constant compared to prior year.
EXPENSES
Expenses for governmental activities for the City totaled $138,542,134 for the year ended September 30, 2015.
Significant factors include the following:
• General government costs decreased $23.8 million from $51.7 million in 2014 to $27.9 million in 2015, or
46.0 percent. This decrease is the direct result of restating net position as of September 30, 2014 to
implement GASB 68, thereby reflecting the net pension liability and expense on the financial statements.
General government expense without the GASB 68 restatement decreased only $133,455, compared to
prior year.
• Public safety program costs including police and fire department activities totaled about $45.2 million, or
32.7 percent of total expenses for governmental activities. This is a decrease of 0.1 percent compared to
prior year. Most significant are personnel costs which totaled $36.8 million.
• Public works program costs totaling $37.1 million reflect primarily depreciation charges on infrastructure
of $24.9 million along with the City's street maintenance and improvement programs and significant
personnel costs. This represents an increase of $1.0 million, or 2.8 percent over prior year.
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Analysis of Changes in Net Position (Continued)
Business -type activities. Business -type activities increased the City's net position by $14,873,733 or 75.9 percent
of the total growth in the net position of the City over the prior year. Key factors for the increase are as follows:
REVENUES
The City's water, sewer and drainage utility continues to show increases in the number of customers and
operating revenues. Scheduled uses of impact fees received have allowed current rates to remain stable
while still providing adequate times coverage of utility bonded debt service. Comparative data for the past
two fiscal years are presented as follows:
• The City sets utility rates based on the cost of service. This model establishes an equitable rate structure
for total cost recovery. In order to fund the capital improvement program and to meet increasing system
demand and operational cost pressures, multiple -year rate increases were implemented. Volumetric and
base charge rates increased collectively 2.5 percent in January 2015. Even with the rate increases, Round
Rock water and wastewater rates continue to be among the lowest in the region.
EXPENSES
Expenses of the business -type activities decreased slightly from prior year due to open positions and
decreased fuel expenses.
Financial Analysis of the Governmental Funds
As noted earlier, the City of Round Rock uses fund accounting to ensure and demonstrate compliance with
finance - related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
For the fiscal year ended September 30, 2015, the City's governmental funds reported combined ending fund
balances of $210,078,532. Approximately 23.9 percent of this total amount of $50,277,389 constitutes unassigned
fund balance and is available for spending at the City's discretion. $27,294,167 of the fund balance is committed
to either construction or special revenue projects/programs. The remainder of fund balances is restricted or
nonspendable to indicate that it is not available for new spending because it has already been committed to 1) pay
debt service of $2,351,780, 2) fund authorized capital projects of $117,515,606, 3) other restricted purposes of
$12,208,769 or 4) nonspendable of $430,821.
27
2015
2014
Operating revenues
$
45,898,090
$
43,705,878
Operating income
$
3,871,316
$
2,833,984
Income available for debt
service
$
19,413,015
$
17,970,483
Annual debt service
$
6,894,788
$
6,347,632
Coverage
2.82
2.83
• The City sets utility rates based on the cost of service. This model establishes an equitable rate structure
for total cost recovery. In order to fund the capital improvement program and to meet increasing system
demand and operational cost pressures, multiple -year rate increases were implemented. Volumetric and
base charge rates increased collectively 2.5 percent in January 2015. Even with the rate increases, Round
Rock water and wastewater rates continue to be among the lowest in the region.
EXPENSES
Expenses of the business -type activities decreased slightly from prior year due to open positions and
decreased fuel expenses.
Financial Analysis of the Governmental Funds
As noted earlier, the City of Round Rock uses fund accounting to ensure and demonstrate compliance with
finance - related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,
outflows and balances of spendable resources. Such information is useful in assessing the City's financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
For the fiscal year ended September 30, 2015, the City's governmental funds reported combined ending fund
balances of $210,078,532. Approximately 23.9 percent of this total amount of $50,277,389 constitutes unassigned
fund balance and is available for spending at the City's discretion. $27,294,167 of the fund balance is committed
to either construction or special revenue projects/programs. The remainder of fund balances is restricted or
nonspendable to indicate that it is not available for new spending because it has already been committed to 1) pay
debt service of $2,351,780, 2) fund authorized capital projects of $117,515,606, 3) other restricted purposes of
$12,208,769 or 4) nonspendable of $430,821.
27
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Financial Analysis of the Governmental Funds (Continued)
The general fund is the chief operating fund of the City. At the close of the current fiscal year, fund balance of the
general fund reached $50,708,210, of which $50,277,389 was unassigned. Unassigned fund balance represented
56.1 percent of total general fund expenditures.
During the current fiscal year, the fund balance of the general fund increased by $11,584,574. In previous years,
excess fund balance was transferred during the fiscal year for one-time expenditures in the self -financed
construction account. Beginning with fiscal 2015, excess funds are not allocated until the subsequent year. This
change and continued revenue growth caused the higher balances.
The debt service fund had a total fund balance of $2,351,780 at the end of the fiscal year, all of which is restricted
for the payment of debt service. The net increase in fund balance during the year was only $73,718. Debt service
expenditure requirements increased by $321,726 during the fiscal year and were adequately funded by the debt
service portion of the property tax.
The fund balance of the RRTEDC revenue fund was $32,075,182, an increase of $2,469,886 compared to the prior
year. The increase reflects a reduction in transfers out of this fund to fund transportation system improvements and
related maintenance and debt service costs. This is a result of less costs incurred for transportation projects,
compared to the prior year, as well as issuance of the 2014 transportation certificates of obligation which provided
an alternative source of funding for transportation system improvements during 2015.
The self -financed construction fund, the 2014 general obligation bond fund and 2014 transportation certificates of
obligation had a combined total fund balance at year-end of $107,254,690. The collective net increase of
$14,190,147 is a result of the unspent balance from the $27,270,000 issuance in Combination Tax and Limited
Revenue Certificates of Obligation in December 2014. The proceeds will be used for transportation projects.
Proprietary funds. The City's proprietary fund statements provide the same type of information found in the
government -wide financial statements, but in more detail.
Unrestricted net position of the water and sewer utility totaled $108,709,453 at September 30, 2015. The total
growth in net position for the utility was $15,290,130. The unrestricted net position represented 30.9 percent of the
utility's total net position.
General Fund Budgetary Highlights
No amendments were taken to City Council for the General Fund for the year ended September 30, 2015. Overall,
actual revenues and financing sources exceeded budgetary estimates and expenditures including transfers were less
than budgeted amounts, thus eliminating any need to draw upon existing fund balance.
28
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Capital Assets and Debt Administration
Capital Assets
The City of Round Rock's investment in capital assets for its governmental and business -type activities as of
September 30, 2015, amounted to $832,457,546 (net of accumulated depreciation). This investment includes land,
buildings and improvements, improvements other than buildings (including infrastructure), machinery and
equipment and construction in progress.
Major capital asset events during the year ended September 30, 2015, included the following:
• The new Brushy Creek Trail Gap project was completed in Spring 2015 at a total project cost of
$3.1 million.
• Projects underway funded by the 2014 General Obligation bonds are as follows:
• Parks and recreation improvements at Old Settler's Park include the Rock'N' River expansion at a
cost of $8.1 million, as well as the multipurpose field complex and soccer fields estimated at
$30 million. The Rock'N' River expansion is to be completed and ready by summer of 2016.
• Expansion of citywide trails began at an estimated cost of $20.1 million with $2.2 million incurred
to date.
• Neighborhood park improvements, ADA upgrades, and facility improvements are underway with
total cost estimated at $3.5 million.
• Citywide trail projects are underway with $2.2 million in costs incurred to date.
• Design has been finalized and work is commencing on two fire stations. The total cost is estimated
at $10.8 million utilizing the current 2014 General Obligation issue and future General Obligation
bond issuances for Public Safety.
• Major arterial, signal and road projects are underway and at various stages of completion. Completed
projects totaled $1.1 million while construction in progress at year-end approximated $20.1 million.
• Major City facility improvements were completed at a cost of $633,306 and information technology
infrastructure upgrades were completed at a cost of $575,290.
• Various street, sidewalk, fencing, drainage and traffic signal improvement projects were underway with
completions totaling $1.2 million and construction in progress $1.7 million at year end.
• Developers contributed infrastructure improvements for governmental activities of $3.1 million, and
$5.7 million for water, sewer and drainage system infrastructure improvements.
• Drainage assets totaling $1.4 million were contributed from the City's general assets to the City's utility
system.
• The program to replace water meters citywide with automated reading equipment is scheduled for
completion by summer 2016 at a cost of $3.8 million.
29
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Capital Assets and Debt Administration (Continued)
• Various water and wastewater line replacement projects were completed and placed in service at a cost of
$3.2 million and similar projects were in progress costing $1.3 million to date.
• Construction is complete on Phases 2, 4 and 6 of the reuse treatment facility, elevated storage and water
line at a total cost of $7.0 million.
• Construction was substantially complete on Round Rock's treated water line that connects to the Brushy
Creek Regional Utility Authority (BCRUA) system. Total cost as of September 30, 2015 was $7.8 million.
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 $308,951,624. Of this
amount, $184,600,000 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 and state infrastructure bank loans).
During the current fiscal year, the City of Round Rock's total debt increased by $8,942,479. The net increase is
largely due to the issuance of $27.3 million in debt for transportation improvements during 2015. Regularly
scheduled debt principal was retired during 2015 as well.
30
Capital Assets (in 000's)
Governmental
Business -Type
Activities
Activities
Total
2015
2014
2015 2014
2015
2014
Land
$ 45,751
$ 44,863
$ 8,453 $ 8,453 $
54,204 $
53,316
Buildings and Improvements
133,813
132,333
22,437 22,506
156,250
154,839
Improvements Other Than Buildings
649,772
638,069
423,042 389,874
1,072,814
1,027,943
Machinery and Equipment
67,539
63,563
15,032 13,960
82,571
77,523
Accumulated Depreciation
(411,287)
(377,295)
(157,585) (143,351)
(568,872)
(520,646)
Construction in Progress
30,174
13,878
5,316 20,420
35,490
34,298
Total
$ 515,762
$ 515,411
$ 316,695 $ 311,862 $
832,457 $
827,273
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 $308,951,624. Of this
amount, $184,600,000 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 and state infrastructure bank loans).
During the current fiscal year, the City of Round Rock's total debt increased by $8,942,479. The net increase is
largely due to the issuance of $27.3 million in debt for transportation improvements during 2015. Regularly
scheduled debt principal was retired during 2015 as well.
30
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Long -Term Debt (Continued)
In 2015, the City refinanced various existing debt issuances to take advantage of favorable interest rates. Details of
the refunding issuance can be found in Note IV (F) (4) to the financial statements.
General obligation bonds
Certificates of obligation
Hotel tax revenue bonds
Sales tax revenue bonds
State infrastructure bank loans
Water and wastewater
revenue bonds
Total
Long -Term Debt (in 000's)
Governmental Business -Type
Activities Activities
2015 2014 2015 2014
1J4,92S
155,/2SU
29,675
11,135
13,225
13,795
11,920
15,700
13,082
14,574
Total
2015
- - $ 1J4,92b
29,675
- 13,225
- 11,920
- 13,082
2014
155,780
11,135
13,795
15,700
14,574
- 86,125 89,025 86,125 89,025
$ 222,827 $ 210,984 $ 86,125 $ 89,025 $ 308,952 $ 300,009
The City of Round Rock benefits substantially in reduced interest costs resulting from recently affirmed bond
ratings by Moody's Investors Service of Aal, and Standard & Poor's of AA+.
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 $1.50 of the $ 2.50 maximum tax rate for general obligation debt service. The resulting
legal debt margin is $1,461,735,702. Of the maximum tax rate for debt service of $1.50, the City uses $0.15182,
or 10.12%. Of $39,792,302 levied in property taxes for the fiscal year ended September 30, 2015, 99.76% 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
31
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Economic Factors and Next Year's Budgets and Rates
The development of the City's budget is guided by several factors includingthe 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 2015-2016 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 2015-2016 budget process the City Manager and Executive team focused on various budget drivers in the
decision making process.
• Addressing Council Strategic Goals
• Meeting the demands of growth with additions to maintain service levels
• Biennial citizen survey results
• Voter authorized general obligation debt to expand programs and services
• Transportation certificates of obligation to address roadway and traffic issues
• Debt payments for these new programs
• Competitive employee compensation and benefits
• Maintenance of parks, facilities and streets
• Compliance with financial policies
Revenue assumptions in general for fiscal year 2015-2016 are expected to follow the growth curve of job creation,
population growth, retail sales activity and housing starts.
The City's economy is expected to generate approximately $64.8 million in sales tax revenue for fiscal year 2016.
This amount includes the 1/2% or $16.3 million in additional sales and use tax for roads and economic development.
The remaining 1'/2 % is projected to generate $48.5 million for general operations, property tax reduction and capital
proj ects.
The 2015/2016 taxable assessed value is $10.5 billion, which is an increase of 8.9% over prior year. The adopted
budget maintains a tax rate of $0.41465 per $100 of valuation. Under the 2015/2016 budget, the adopted rate is
above the effective rate of $0.38453 per $100 which results in a tax increase of 7.8%. An important Council top
strategic goal - "Financially Sound City Providing High Value Services" is to continue reasonable tax rate increases
to improve the revenue stability of the General Fund while maintaining a competitive and affordable community.
Round Rock continues to have a property tax rate that is among the lowest of any medium -to -large cities in the
state, including those cities with an additional % cent sales tax for property tax reduction.
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. Effective January 2016, residential customers will see
an average increase of 3.0% for water and wastewater rates. This is the second of a two-part schedule increase
adopted by Council in 2013. This increase compliments the 2.6% increase from the first phase implemented in
January 2015. Water conservation and drought contingency programs continue to help the City conserve existing
water sources. Round Rock water and wastewater rates continue to be among the lowest in the area. Wholesale
water rates increased October 1, 2015. The City's wholesale customers made up approximately 15% of its revenues.
32
CITY OF ROUND ROCK, TEXAS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2015
Requests for Information
This financial report is designed to provide our 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.
33
e�sOUNa.. RU '�
34
BASIC FINANCIAL STATEMENTS
35
CITY OF ROUND ROCK, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowance for uncollectibles) -
Property taxes
Accounts & other
Loans
Accrued interest
Intergovernmental
Interfund
Inventories
Other current assets
Restricted assets -
Cash and cash equivalents
Investments
Property tax receivable
Accounts and other
Accrued interest
Investment in joint venture
Capital assets -
Land and construction in progress
Capital asset, net of accumulated depreciation
Governmental
Business -Type
Activities
Activities
Total
$ 27,800,057 $
23,098,181 $
50,898,238
79,545,229
69,088,233
148,633,462
269,866
-
269,866
6,913,576
6,552,421
13,465,997
970,130
-
970,130
276,719
102,489
379,208
154,902
4,280,899
4,435,801
(1,158,258)
1,158,258
-
286,027
591,995
878,022
232,294
502,544
734,838
12,416,733
7,018,222
19,434,955
110,847,703
12,775,531
123,623,234
154,979
-
154,979
1,265,159
446,563
1,711,722
80,547
15,160
95,707
-
12,380,581
12,380,581
75,925,379 13,768,975 89,694,354
439,837,324 302,925,868 742,763,192
Total assets 755,818,366 454,705,920 1,210,524,286
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refundings 6,961,069 - 6,961,069
Pension contributions after measurement date 5,219,335 745,208 5,964,543
Pension actuarial losses 1,408,249 192,034 1,600,283
Total deferred outflows of resources 13,588,653 937,242 14,525,895
The accompanying notes are an integral part of this financial statement.
36
Noncurrent liabilities -
Customer deposits
Due within one year
Due in more than one year
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension actuarial gains
NET POSITION
Net investment in capital assets
Restricted for -
Debt service
Capital projects
Hotel -motel tax
Public safety
Unrestricted
- 1,061,928
Governmental
Business -Type
22,167,579
261,132,711 89,404,299
Activities
Activities
Total
LIABILITIES
400,552,169
Accounts payable
$ 16,452,385 $
2,006,483 $
18,458,868
Accrued payroll
4,057,702
595,843
4,653,545
Unearned revenue
905,367
-
905,367
Accrued interest payable
2,131,178
636,694
2,767,872
Noncurrent liabilities -
Customer deposits
Due within one year
Due in more than one year
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension actuarial gains
NET POSITION
Net investment in capital assets
Restricted for -
Debt service
Capital projects
Hotel -motel tax
Public safety
Unrestricted
- 1,061,928
1,061,928
18,836,898 3,330,681
22,167,579
261,132,711 89,404,299
350,537,010
1,274,293 -
1,274,293
303,516,241 97,035,928
400,552,169
37,309 5,088 42,397
274,460,885 228,866,895 503,327,780
1,351,780 440,715
1,792,495
117,515,606 18,775,257
136,290,863
10,934,476 -
10,934,476
1,274,293 -
1,274,293
60,316,429 110,519,279
170,83 5,708
Total net position $ 465,853,469 $ 358,602,146 $ 824,455,615
37
CITY OF ROUND ROCK, TEXAS
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2015
Total governmental activities 138,542,134 8,669,118 1,199,574 4,234,018
Business -type activities:
Water and sewer utility 46,069,705 45,898,090
Golf course 144,993 320,846
17,742,568
Total business -type activities
46,214,698
46,218,936
Program Revenues
Total primary government
Operating
Capital
1,199,574 $ 21,976,586
Charges for
Grants and
Grants and
Functions/Programs
Expenses
Services
Contributions
Contributions
Governmental activities:
General government
$ 27,917,481
$ 2,168,842
$ 1,016,477
$ -
Public safety
45,236,987
2,461,782
57,949
-
Public works
37,074,023
749,524
-
4,126,046
Culture and recreation
19,252,557
3,288,970
125,148
107,972
Interest on long-term debt
8,118,490
-
-
-
Issuance costs
942,596
-
-
-
Total governmental activities 138,542,134 8,669,118 1,199,574 4,234,018
Business -type activities:
Water and sewer utility 46,069,705 45,898,090
Golf course 144,993 320,846
17,742,568
Total business -type activities
46,214,698
46,218,936
- 17,742,568
Total primary government
$ 184,756,832
$ 54,888,054 $
1,199,574 $ 21,976,586
The accompanying notes are an integral part of this financial statement
38
Functions/Programs
Governmental activities:
General government
Public safety
Public works
Culture and recreation
Interest on long-term debt
Issuance costs
Total governmental activities
Business -type activities:
Water and sewer utility
Golf course
Total business -type activities
Total primary government
General revenues:
Taxes:
Property taxes, levied for general purpose
Property taxes, levied for debt service
Franchise taxes
Sales tax
Hotel occupancy tax
Public service taxes
Unrestricted investment earnings
Transfers
Total general revenues and transfers
Change in net position
Net position -beginning, as restated
Net (Expense) Revenue and
Changes in Net Position
Governmental Business -Type
Activities Activities Total
$ (24,732,162) $
- $ (24,732,162)
(42,717,256)
- (42,717,256)
(32,198,453)
- (32,198,453)
(15,730,467)
- (15,730,467)
(8,118,490)
- (8,118,490)
(942,596)
- (942,596)
124,439,424) - (124,439,424
17,570,953 17,570,953
175,853 175,853
17,746,806 17,746,806
(124,439,424) 17,746,806 (106,692,618)
25,390,182
- 25,390,182
14,542,391
- 14,542,391
7,255,212
- 7,255,212
67,620,848
- 67,620,848
5,083,556
- 5,083,556
515,778
- 515,778
5,020,786
866,927 5,887,713
3,740,000
(3,740,000) -
129,168,753 (2,873,073) 126,295,680
4,729,329 14,873,733 19,603,062
461,124,140 343,728,413 804,852,553
Net position -ending $ 465,853,469 $ 358,602,146 $ 824,455,615
39
CITY OF ROUND ROCK, TEXAS
GOVERNMENTAL FUNDS BALANCE SHEET
SEPTEMBER 30, 2015
ASSETS
Cash and cash equivalents
Investments
Receivables (net of allowance for uncollectibles) -
Property taxes, including interest and penalties
Accounts and other
Loans
Accrued interest
Interfund
Intergovernmental
Inventories
Other current assets
Restricted assets -
Cash and cash equivalents
Investments
Receivables -
Property taxes, including interest and
penalties
Sales tax
Accrued interest
Total assets
Round Rock
Transportation
and Economic
Development
General Debt Service Corporation
Fund Fund Revenue Fund
$ 14,646,659 $ - $ -
41,901,278 - -
269,866 - -
5,922,670 - -
63,018 - -
11,758 18,215 -
144,426 - -
286,027 - -
144,794 - -
2,333,566 8,645,510
- - 24,309,070
154,979 -
- 1,265,159
- - 36,430
$ 63,390,496 $ 2,506,760 $ 34,256,169
LIABILITIES AND FUND BALANCES
Liabilities -
Accounts payable
$ 8,197,302 $
- $
680,987
Accrued payroll
3,997,585
-
-
Interfund payables
88,339
-
1,500,000
Deferred revenue
399,060
154,980
-
Totalliabilities
12,682,286
154,980
2,180,987
Fund balances -
Nonspendable
430,821
-
-
Restricted - debt service
-
2,351,780
-
Restricted - authorized construction
-
-
32,075,182
Restricted - hotel -motel tax
-
-
-
Restricted - public safety
-
-
-
Committed, reported in -
Committed
-
-
-
Capital projects funds
-
-
-
Unassigned
50,277,389
-
-
Total fund balances
50,708,210
2,351,780
32,075,182
Total liabilities and fund balances
$ 63,390,496 $
2,506,760 $
34,256,169
The accompanying notes are an integral part of this financial statement.
40
2014
Self- 2014 General Transportation Other Total
Financed Obligation Certificates of Governmental Governmental
Construction Bonds Fund Obligation Funds Funds
$ 6,703,115 $
19,187,636 - -
912,130 - -
196,957 - -
10,476 - -
440,667 748,172
62,509,301 22,779,578
3,959,934 $ 25,309,708
11,327,705 72,416,619
- 269,866
990,906 6,913,576
58,000 970,130
16,744 276,719
1,570,124 1,600,097
- 154,902
286,027
144,794
248,818 12,416,733
1,249,754 110,847,703
154,979
- - - 1,265,159
- 32,343 - 1,165 69,938
$ 27,010,314 $ 62,982,311 $ 23,527,750 $ 19,423,150 $ 233,096,950
$ 2,314,192 $ 1,262,773 $ 2,688,720 $ 886,432 $ 16,030,406
- - - 60,117 4,057,702
- 11,758 1,600,097
- - - 776,173 1,330,213
2,314,192 1,262,773 2,688,720 1,734,480 23,018,418
- - 430,821
- - - 2,351,780
- 61,719,538 20,839,030 2,881,856 117,515,606
- - - 10,934,476 10,934,476
- - 1,274,293 1,274,293
- - - 2,598,045 2,598,045
24,696,122 - - - 24,696,122
- - - - 50,277,389
24,696,122 61,719,538 20,839,030 17,688,670 210,078,532
$ 27,010,314 $ 62,982,311 $ 23,527,750 $ 19,423,150 $ 233,096,950
41
a
�>4
f
42
CITY OF ROUND ROCK, TEXAS
RECONCILIATION OF THE OF GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
Total Fund Balances - Governmental Funds
Amounts reported for Governmental Activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. These assets consist of:
Land
Construction in progress
Building and improvements
Equipment
Accumulated depreciation
Total capital assets
$ 45,751,142
30,174,237
783,585,613
67,538,831
(411,287,120)
$ 515,762,703
Deferred amounts on refundings are deferred outflows of resources and, therefore, are not
reported in the funds.
Contributions to the pension plan after the measurement date are deferred outflows of
resources and, therefore, are not reported in the funds.
Pension actuarial losses (gains) are deferred outflows (inflows) of resources and, therefore,
are not reported in the funds.
Property tax revenues in the governmental funds are deferred because they are not
collected within the prescribed time period after year end. On the accrual basis, however,
those revenues would be recognized, regardless of when they are collected.
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.
Accrued interest payable in the governmental funds are not recognized because they are
not paid within the prescribed time period after year end.
Some long-term liabilities are not due and payable in the current period and, therefore,
are not reported in the funds. They are detailed in Note III (A).
Net Position of Governmental Activities
The accompanying notes are an integral part of this financial statement.
43
$ 210,078,532
515,762,703
6,961,069
5,219,335
1,370,940
424,846
8,136,831
(2,131,178)
(279,969,609)
$ 465,853,469
CITY OF ROUIND ROCK, TEXAS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2015
Revenues -
Taxes and franchise,
including interest and penalties
Licenses, permits and fees
Charges for services
Fines and forfeitures
Intergovernmental
Hotel occupancy tax
Investment and other
Contributions
Total revenues
Expenditures -
Current -
General government
Public safety
Public works
Culture and recreation
Debt service -
Principal retirement
Interest and fiscal charges
Issuance costs
Capital projects
Total expenditures
Excess (deficiency) of revenues
over expenditures
Round Rock
Transportation
and Economic
Debt Development
General Service Corporation
Fund Fund Revenue Fund
$ 83,719,817 $ 14,619,593 $ 16,905,212
1,648,274 - -
4,245,310 - -
2,021,086 - -
549,079 - -
4,493,086 6,152 383,806
96,676,652 14,625,745 17,289,018
23,183,599 -
42,765,289 - -
10,849,152 - 1,479,132
12,841,404 - -
13,919,366 -
- 7,847,372 -
- 472,675 -
89,639,444 22,239,413 1,479,132
7,037,208 (7,613,668) 15,809,886
Other financing sources (uses) -
Issuance of debt
-
-
-
Issuance of lease
1,327,490
-
-
Issuance of refunding bonds
-
43,395,000
-
Issuance ofpremium
-
5,164,877
-
Payment to refunding agent
-
(48,955,991)
-
Transfers in
3,290,000
8,114,500
-
Transfers out
(70,124)
(31,000)
(13,340,000)
Total other financing sources (uses)
4,547,366
7,687,386
(13,340,000)
Net change in fund balances
11,584,574
73,718
2,469,886
Fund balances, October 1, 2014
39,123,636
2,278,062
29,605,296
Fund balances, September 30, 2015
$ 50,708,210 $
2,351,780 $
32,075,182
The accompanying notes are an integral part of this financial statement.
44
Self- 2014 General
Financed Obligation
Construction Bonds Fund
2014
Transportation Other Total
Certificates of Governmental Governmental
Obligation Funds Funds
$ - $ - $
- $ 263,884 $
115,508,506
- -
- 56,100
1,704,374
- -
- 268,118
4,513,428
- -
- 430,230
2,451,316
105,567 -
- 1,025,347
1,679,993
- -
- 5,083,556
5,083,556
1,173,321 259,127
27,659 864,327
7,207,478
344,201 -
- 256,718
600,919
1,623,089 259,127
27,659 8,248,280
138,749,570
- 654,921 23,838,520
- - 301,983 43,067,272
- - - - 12,328,284
1,924,636 14,766,040
- - 13,919,366
- - - 7,847,372
- - 469,921 - 942,596
10,762,347 6,475,965 7,192,851 9,045,391 33,476,554
10,762,347 6,475,965 7,662,772 11,926,931 150,186,004
(9,139,258) (6,216,838) (7,635,113) (3,678,651) (11,436,434
-
- 27,270,000
-
27,270,000
672,510
- -
-
2,000,000
-
- -
-
43,395,000
-
- 1,204,143
-
6,369,020
-
- -
-
(48,955,991)
8,034,703
- -
7,631,662
27,070,865
-
- -
(9,889,741)
(23,330,865)
8,707,213
- 28,474,143
(2,258,079)
33,818,029
(432,045)
(6,216,838) 20,839,030
(5,936,730)
22,381,595
25,128,167
67,936,376 -
23,625,400
187,696,937
$ 24,696,122 $
61,719,538 $ 20,839,030
$ 17,688,670
$ 210,078,532
45
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, 2015
Amounts reported for governmental activities in the statement of activities are different because:
Net Change in Fund Balances -Total Governmental Funds
Governmental funds report capital outlays as expenditures. However, in
the statement of activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation.
The net effect of various miscellaneous transactions involving capital
assets (i.e. sales, disposals, and donations) is to increase net position.
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.
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
issuance costs, 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.
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 include:
Interest expense
Pension expense
Contributions to the pension plan after the measurement date are deferred
outflows of resources and, therefore, are not reported in the funds.
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.
Change in Net Position of Governmental Activities
The accompanying notes are an integral part of this financial statement.
46
22,381,595
(614,186)
965,988
(184,095)
(16,187,300)
(1,427,326)
(6,609,487)
7,159,333
(755,193)
$ 4,729,329
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE — BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2015
Revenues -
Taxes and franchise,
including interest and penalties
Licenses, permits and fees
Charges for services
Fines and forfeitures
Intergovernmental
Investment and other
Total revenues
Expenditures -
Current -
General government
Public safety
Public works
Culture and recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses) -
Variance -
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 80,828,000 $ 80,828,000 $ 83,719,817 $ 2,891,817
871,700
871,700
1,648,274
776,574
3,885,000
3,885,000
4,245,310
360,310
2,569,000
2,569,000
2,021,086
(547,914)
345,515
345,515
549,079
203,564
2,803,200
2,803,200
4,493,086
1,689,886
91,302,415
91,302,415
96,676,652
5,374,237
25,150,140
25,150,140
23,183,524
1,966,616
44,723,375
44,723,375
42,765,364
1,958,011
12,702,562
12,702,562
10,849,152
1,853,410
12,871,118
12,871,118
12,841,404
29,714
95,447,195
95,447,195
89,639,444
5,807,751
(4,144,780) (4,144,780) 7,037,208 11,181,988
Issuance of lease
850,000
850,000
1,327,490
477,490
Transfers in
3,290,000
3,290,000
3,290,000
-
Transfers out
-
-
(70,124)
(70,124)
Total other financing sources, net
4,140,000
4,140,000
4,547,366
407,366
Net change in fund balance
$ (4,780) $
(4,780)
11,584,574 $
11,589,354
Fund balance, October 1, 2014
39,123,636
Fund balance, September 30, 2015
$
50,708,210
The accompanying notes are an integral part of this financial statement.
47
CITY OF ROUND ROCK, TEXAS
REVENUE FUND
STATEMENT OF REVENEUS, EXPENDITURES AND CHANGES
IN FUND BALANCE — BUDGET AND ACTUAL
ROUND ROCK TRANSPORTATION AND ECONOMIC DEVELOPMENT CORPORATION
YEAR ENDED SEPTEMBER 30, 2015
The accompanying notes are an integral part of this financial statement.
48
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Sales tax
$ 16,466,666 $
16,466,666
$ 16,905,212
$ 438,546
Investment and other
151,000
151,000
383,806
232,806
Total revenues
16,617,666
16,617,666
17,289,018
671,352
Expenditures -
Public works
1,403,700
1,403,700
1,479,132
(75,432)
Total expenditures
1,403,700
1,403,700
1,479,132
(75,432)
Excess of revenues
over expenditures
15,213,966
15,213,966
15,809,886
595,920
Other financing uses -
Transfers in
140,000
140,000
-
(140,000)
Transfers out
(6,590,000)
(6,590,000)
(13,340,000)
(6,750,000)
Total other financing sources (uses)
(6,450,000)
(6,450,000)
(13,340,000)
(6,890,000)
Net change in fund balances
$ 8,763,966 $
8,763,966
2,469,886
$ (6,294,080)
Fund balance, October 1, 2014
29,605,296
Fund balance, September 30, 2015
$ 32,075,182
The accompanying notes are an integral part of this financial statement.
48
CITY OF ROUND ROCK, TEXAS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
The accompanying notes are an integral part of this financial statement.
(CONTINUED)
49
Business -Type Activities
Governmental
Enterprise
Funds
Activities
Water and
Golf Course
Internal
Sewer Fund
Fund
Total
Service
ASSETS
Current assets:
Cash and cash equivalents
$ 22,927,778 $
170,403
$ 23,098,181
$ 2,490,349
Investments
68,600,452
487,781
69,088,233
7,128,610
Receivables (net of allowance for
uncollectibles of $ 1,645,815) -
accounts
6,552,421
-
6,552,421
-
Accrued interest
101,791
698
102,489
10,609
Intergovernmental
4,280,899
-
4,280,899
-
Inventories
591,995
-
591,995
-
Other current assets
502,544
-
502,544
87,500
Total current assets
103,557,880
658,882
104,216,762
9,717,068
Noncurrent assets:
Restricted cash, cash equivalents
and investments:
Impact fees
6,527,440
-
6,527,440
-
Construction
11,786,094
-
11,786,094
-
Customer deposits
1,039,504
-
1,039,504
-
Revenue bond covenant accounts
440,715
-
440,715
-
Restricted accounts and accrued
interest receivable:
Restricted impact fees
336,041
-
336,041
-
Restricted accrued interest
15,160
-
15,160
-
Loans receivable
110,522
-
110,522
-
Investment in joint venture
12,380,581
-
12,380,581
-
Capital assets:
Land and construction in progress
11,870,486
1,898,489
13,768,975
-
Capital assets being depreciated
300,064,627
2,861,241
302,925,868
-
Total capital assets (net of accumulated
depreciation of $157,584,539)
311,935,113
4,759,730
316,694,843
-
Total noncurrent assets
344,571,170
4,759,730
349,330,900
-
Total assets
448,129,050
5,418,612
453,547,662
9,717,068
DEFERRED OUTFLOWS OF RESOURCES
Pension contributions after measurement date
745,208
-
745,208
-
Pension actuarial losses
192,034
-
192,034
-
Total deferred outflows of resources
937,242
-
937,242
-
The accompanying notes are an integral part of this financial statement.
(CONTINUED)
49
CITY OF ROUND ROCK, TEXAS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION (CONTINUED)
SEPTEMBER 30, 2015
LIABILITIES
Current liabilities:
Accounts payable
Accrued payroll
Accrued interest
Current portion of bonds payable
Current portion of premiums on bonds
Accrued benefit obligations
Total current liabilities
Noncurrent liabilities:
Bonds payable
Premiums on bonds payable
Noncurrent accrued benefit obligations
Net pension liability
Customer deposits
Total noncurrent liabilities
Total liabilities
Business -Type Activities Governmental
Enterprise Funds Activities
Water and Golf Course Internal
Sewer Fund Fund Total Service
$ 1,999,169 $
7,314 $ 2,006,483 $ 421,979
595,843
- 595,843 -
636,694
- 636,694 -
2,860,000
- 2,860,000 -
71,946
- 71,946 -
398,735
- 398,735 -
6,562,387
7,314 6,569,701 421,979
83,265,000
- 83,265,000 -
1,631,002
- 1,631,002 -
454,525
- 454,525 -
4,053,772
- 4,053,772 -
1,061,928
- 1,061,928 -
90,466,227
- 90,466,227 -
97,028,614
7,314 97,035,928 421,979
DEFERRED INFLOWS OF RESOURCES
Pension actuarial gains 5,088 - 5,088 -
NET POSITION
Net investment in capital assets
Restricted for:
Debt service
Capital projects
Committed:
Other post employment benefits
Unrestricted
Total net position
224,107,165 4,759,730 228,866,895 -
440,715 - 440,715 -
18,775,257 - 18,775,257 -
- - - 2,711,424
108,709,453 651,568 109,361,021 6,583,665
$ 352,032,590 $ 5,411,298 357,443,888 $ 9,295,089
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.
Change in net position of business -type activities
The accompanying notes are an integral part of this financial statement.
50
1,158,258
$ 358,602,146
CITY OF ROUND ROCK, TEXAS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30, 2015
Operating revenues -
Charges for services
Licenses, permits, and fees
Total revenues
Operating expenses -
Personnel services
Contractual services
Supplies
Materials
Heat, light and power
Claims expense
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses) -
Investment and other revenues
Interest and fiscal charges
Total nonoperating
revenues (expenses)
Income before contributions
and transfers
Contributions and transfers -
Contributions - impact fees
Contributions - infrastructure
Contributions - other
Transfers out
Total contributions and transfers
Change in net position
Business -Type Activities
Governmental
Enterprise Funds
Activities
Water and Golf Course
Other Internal
Sewer Fund Fund
Total Service
$ 41,880,906 $ 320,846 $ 42,201,752 $ 9,704,113
4,017,184 - 4,017,184 -
45,898,090 320,846 46,218,936 9,704,113
9,228,272
-
9,228,272
-
14,500,269
14,460
14,514,729
2,370,623
1,005,655
-
1,005,655
15,092
831,371
-
831,371
-
1,783,408
-
1,783,408
-
-
-
-
8,351,468
14,677,799
130,533
14,808,332
-
42,026,774
144,993
42,171,767
10,737,183
3,871,316
175,853
4,047,169
(1,033,070)
863,900 3,027 866,927 132,600
(3,897,654) - (3,897,654) -
(3,033,754) 3,027 (3,030,727) 132,600
837,562 178,880 1,016,442 (900,470)
7,933,508
- 7,933,508 -
7,066,261
- 7,066,261 -
2,742,799
- 2,742,799 -
(3,290,000)
(450,000) (3,740,000) -
14,452,568
(450,000) 14,002,568 -
15,290,130
(271,120) 15,019,010 (900,470)
Net position, October 1, 2014, as restated 336,742,460 5,682,418 10,195,559
Net position, September 30, 2015 $ 352,032,590 $ 5,411,298 $ 9,295,089
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 (145,277)
Change in net position of business -type activities $ 14,873,733
The accompanying notes are an integral part of this financial statement.
51
CITY OF ROUND ROCK, TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2015
Cash flows from operating activities:
Cash received from customers
Cash paid to other funds for
services provided
Cash payments to suppliers for goods
and services
Cash payments to employees for services
Cash payments to other funds for services
Net cash provided (used) by
operating activities
Business Type Activities- Governmental
Enterprise Funds Activities
Water and Golf Internal
Sewer Fund Course Total Service
$ 45,179,353 $ 325,551 $ 45,504,904 $ 1,037,576
9,633,187
(18,243,658) (7,146) (18,250,804) (10,921,116)
(9,102,597) - (9,102,597) -
(85,080) - (85,080) -
17,748,018 318,405 18,066,423 (250,353)
Cash flows from noncapital financing activities:
Transfers from other funds - - - -
Transfers to other funds (3,290,000) (450,000) (3,740,000)
Net cash used for noncapital
financing activities (3,290,000) (450,000) (3,740,000) -
Cash flows from capital and related
financing activities:
Receipts of capital contributions
Acquisition and construction of capital assets
Investment in joint venture
Principal paid on revenue bonds
Collection of loans
Interest and fiscal charges paid
Net cash used by capital and
related financing activities
Cash flows from investing activities:
Purchase of investments
Proceeds from sale of investments
Investment and other income
Net cash provided by
investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
10,410,268
-
10,410,268
-
(17,149,701)
-
(17,149,701)
-
1,605,005
-
1,605,005
-
(2,900,000)
-
(2,900,000)
-
422,998
-
422,998
-
(3,995,539)
-
(3,995,539)
-
(11,606,969)
-
(11,606,969)
-
(144,571,256)
(975,586)
(145,546,842)
(14,164,067)
159, 515,922
1,068,793
160, 5 84,715
14,766,554
800,056
3,027
803,083
132,600
15,744,722
96,234
15,840,956
735,087
18,595,771
(35,361)
18,560,410
484,734
11,350,229
205,764
11,555,993
2,005,615
$ 29,946,000 $
170,403
$ 30,116,403 $
2,490,349
The accompanying notes are an integral part of this financial statement.
(CONTINUED)
52
CITY OF ROUND ROCK, TEXAS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2015
Reconciliation of Cash and Cash Equivalents
to Proprietary Fund Statement of Net Assets
Cash and cash equivalents
Restricted assets -
Cash and cash equivalents
Cash and cash equivalents
Reconciliation of operatine income to
net cash provided by operatine activities
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
Provision for bad debts
(Increase) decrease in:
Receivables
Interfund receivables
Inventory
Other assets
(Increase) decrease in:
Accounts payable
Accrued payroll
Interfund payables
Customer deposits
Compensated absences
Total adjustments
Net cash provided (used) by operations
Business -Type Activities Governmental
Enterprise Funds Activities
Water and Golf Internal
$ 22,927,778 $ 170,403 $ 23,098,181 $ 2,490,349
7,018,222 - 7,018,222 -
$ 29,946,000 $ 170,403 $ 30,116,403 $ 2,490,349
$ 3,871,316 $
175,853 $
4,047,169 $
(1,033,070)
14,677,799
130,533
14,808,332
-
116,478
-
116,478
-
(721,937)
4,705
(717,232)
-
2,920
-
2,920
966,650
(241,150)
-
(241,150)
-
(61,488)
-
(61,488)
-
63,205
7,314
70,519
(183,933)
90,420
-
90,420
-
(88,000)
-
(88,000)
-
3,200
-
3,200
-
35,255
-
35,255
-
13,876,702
142,552
14,019,254
782,717
$ 17,748,018 $
318,405 $
18,066,423 $
(250,353)
NOTES:
(i) Noncash capital and related financing activities:
In fiscal year 2015, the Water and Sewer Fund had $7,066,261 in capital
assets contributed, recognized $111,635 in unrealized investment losses,
and loss on joint venture of $2,683,973.
The accompanying notes are an integral part of this financial statement.
53
CITY OF ROUND ROCK, TEXAS
FUDICIARY FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2015
AGENCYFUND
Public
Improvement
Districts
ASSETS
Cash and cash equivalents $ 17,132
Total assets $ 17.132
LIABILITIES
Liabilities -
Due to participants $ 17,132
Total liabilities $ 17,132
The accompanying notes are an integral part of this financial statement.
54
NOTES TO THE FINANCIAL STATEMENTS
55
M
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Round Rock, Texas (the City) is a municipal corporation incorporated under Article XI, Section
S of the Constitution of the State of Texas (Home Rule Amendment). The City operates under a Council -
Manager form of government. The financial statements of the City have been prepared in accordance with
generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and
financial reporting. The GASB periodically updates its codification of the existing Governmental
Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements
(Statements and Interpretations), constitutes GAAP for governmental units. The more significant of these
accounting policies are described below and, where appropriate, subsequent pronouncements will be
referenced.
A. REPORTING ENTITY
The City provides various services and performs many different functions. These include a police force, a
fire fighting and protection force, emergency medical services, a park and recreation system, a municipal
golf course, a public library, convention and tourism support, planning and zoning and a waterworks and
sewer utility system. The City's staff provides the necessary support for the services provided. All are
responsible to the Citizens of Round Rock and are therefore included within the reporting entity.
As required by generally accepted accounting principles, these financial statements present the City and its
component unit, an entity for which the City is considered to be financially accountable. Blended
component units, although legally separate entities, are, in substance, part of the City's operations and so
data from these units are combined with data of the City.
Blended component unit
The Round Rock Transportation and Economic Development Corporation (Corporation), an entity legally
separate from the City, is governed by a seven -member board appointed by the City Council. The City
Council maintains budgetary control of the Corporation. For financial reporting purposes, the Round Rock
Transportation and Economic Development Corporation is presented as a part of the City's operations
because its sole purpose is to utilize sales tax revenues for the improvement of the City's transportation
system. The revenues of the Corporation and its administrative expenditures are accounted for in a special
revenue fund, while the capital improvements are accounted for in a capital projects fund.
57
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIS OF PRESENTATION - GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS
The basic financial statements include both government -wide (based on the City as a whole) and fund
financial statements. GASB Statement No. 34 requires certain supplementary information. Management's
Discussion and Analysis includes an analytical overview of the City's financial activities. In addition,
budgetary comparison statements are presented that compare the adopted and amended budgets of the
General Fund and the Round Rock Transportation and Economic Development Corporation Special
Revenue Fund with their actual results.
Government -Wide Statements:
The government -wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all non -fiduciary activities of the primary government and its component unit.
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 includes both non-current assets and non-current liabilities of the City.
In addition, the government -wide statement of activities reflects depreciation expense on the City's capital
assets, including infrastructure.
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.
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, as well as
the fiduciary funds, and the component unit. Each presentation provides valuable information that can be
analyzed and compared to enhance the usefulness of the information.
58
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIS OF PRESENTATION - GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS (CONTINUED)
Fund Financial Statements:
Separate fund based financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government -wide financial statements. 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 (percentage of assets,
liabilities, revenues or expenditures/expenses of either fund category for the governmental and enterprise
combined) for the determination of major funds. The major governmental funds are the general fund, the
debt service fund, the Round Rock Transportation and Economic Development Corporation's special
revenue fund, the self -financed construction fund, the 2014 General Obligation Bond capital projects fund,
and the 2014 Transportation Certificates of Obligation 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. 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.).
The City's fiduciary fund is presented in the fund financial statements by type. Since by definition these
assets are being held for the benefit of a third party and cannot be used to address activities or obligations
of the government, this fund is not incorporated into the government -wide statements.
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 current 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 fiords. The general fund is considered a major fund in the fund financial
statements.
59
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. GOVERNMENTAL FUND TYPES (CONTINUED)
The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
major capital projects) that are legally restricted to expenditures for specified purposes.
There are ten groups of funds within the Special Revenue Funds which account for the activities related to
grant programs, hotel -motel room taxes, transportation system improvement sales tax and funds designated
for specific service programs. They are as follows:
Major Fund
— Round Rock Transportation and Economic Development Corporation Revenue Fund
Nonmajor Funds
— Hotel -Motel Occupancy Tax Fund
— Hotel -Motel Occupancy Venue Tax Fund
— Police Fund
— Municipal Court Fund
— Landscape Fund
— Community Development Block Grant Fund
— Library Fund
— Public Education & Government Fund
— Traffic Safety Program Fund
The Round Rock Transportation and Economic Development Corporation special revenue fund is
considered a major fund in the fund financial statements. It accounts for sales tax monies received for
streets, drainage and other transportation system improvements, including maintenance costs associated
with such authorized projects.
The Debt Service Fund is used to account for the accumulation of resources for, and the payment of,
governmental long-term debt principal, interest and related costs. The debt service find is considered a
major fund in the fund financial statements.
The Capital Proiects 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 thirteen groups
of funds within the Capital Projects Fund which account for the activities related to various capital improve-
ments projects as follows:
Major Funds
— Self -Financed Construction
— 2014 Series General Obligation Bond Fund
— 2014 Series Certificates of Obligation
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. GOVERNMENTAL FUND TYPES (CONTINUED)
Nonmajor Funds
— Streets and Drainage
— 2007 General Obligation Bonds
— 2004 General Obligation Bonds
— Park Development
— 2007 Series Certificates of Obligation
— 2002 Series General Obligation Bonds
— Round Rock Transportation and Economic Development Corporation Project Fund
— Convention Center Complex Fund
— Transit Fund
— Tourism Development Fund
— Venue Tax Projects Fund
The Self -Financed construction fund, the 2014 Series General Obligation Bonds, and the 2014 Series
Certificates of Obligation are considered major funds in the fund financial statements. The Self -Financed
Construction fund accounts for the costs of authorized general capital improvements and facilities.
Financing is provided by general government resources. The 2014 Series General Obligation Bonds fund
accounts for projects related to fire department facilities, parks and recreational purposes, library facilities
and police and fire training facilities. The 2014 Series Certificates of Obligation Bonds fund accounts for
transportation improvements, payments of costs, and issuance of the bond funds.
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. The measurement focus is upon capital maintenance and upon
determination of net income, financial position and cash flows. The City maintains the following
Proprietary Fund types.
The Enterprise Fund is 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 Fund consists of the Water
and Sewer Utility Fund, which includes the City's storm water drainage program, and the Golf Course
Fund. These funds are primarily supported by user charges.
M,
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. OTHER FUND TYPES
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.
The Agency Fund is purely custodial (assets equal liabilities) and thus does not involve measurement of
results of operations. The Agency Fund is the Public Improvement Districts Fund.
F. NON-CURRENT GOVERNMENTAL ASSETS/LIABILITIES
GASB Statement No. 34 eliminated the presentation of 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.
G. 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 provider have been met.
Fund Financial Statements
In the fund financial statements, all governmental funds are accounted for using a modified accrual basis
of accounting. Governmental funds use the current financial resources measurement focus. Under this
basis, revenues are recognized in the accounting period in which they become measurable and available.
Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable.
Governmental Funds
Revenue Recognition
In applying the susceptible to accrual concept under the modified accrual basis of accounting, revenues are
recorded when deemed both measurable and available. Measurable means that the amount of the
transaction can be determined. Available means the amount of the transaction is collectible within the
current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose,
the City considers revenues to be available if they are collected within 60 days of the end of the current
fiscal year.
62
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. BASIS OF ACCOUNTING (CONTINUED)
Governmental Funds (Continued)
Revenue Recognition (Continued)
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.
Tax collections expected to be received subsequent to the 60 -day availability period are reported as deferred
revenue.
Hotel taxes, franchise fees, and special assessments are recorded when susceptible to accrual, both
measurable and available. Sales taxes collected and held by the State at year-end on behalf of the City are
also recognized as revenue. Licenses and permits, charges for services, fines and forfeitures and other
revenues (except earnings on investments) are recorded as revenues when received in cash because they
are generally not measurable until actually received. Earnings on investments are recorded on the accrual
basis in all funds. Unrealized gains or losses on investments are also recognized in accordance with GASB
Statement No. 31.
In applying the susceptible to accrual concept to intergovernmental 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 deferred revenue on its fund financial statements. Deferred revenues arise when potential
revenue does not meet both the "measurable" and "available" criteria for recognition in the current period.
Deferred revenues also 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 deferred revenue is removed from the balance sheet and revenue is recognized.
Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial resources
(expenditures) rather than expenses. Most expenditures are measurable and are recorded when the related
fund liability is incurred except for unmatured principal and interest on governmental long-term debt which
are recognized when paid. Allocations of costs, such as depreciation and amortization, are not recognized
in the governmental funds' find financial statements.
63
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. BASIS OF ACCOUNTING (CONTINUED)
Proprietary and Agency Funds
In the fund financial statements and the government -wide statements, proprietary and agency funds utilize
the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the
accounting period in which they are earned and become measurable. Expenses are recorded in the
accounting period incurred, if measurable.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
water and sewer fund, the golf course fund and the internal service fund are charges to customers for sales
and services. Operating expenses for the enterprise funds and internal service fund include the cost of sales
and service, administrative expenses and depreciation on capital assets. All revenue and expenses not
meeting this definition are reported as non-operating revenues and expenses.
The proprietary funds follow GAAP prescribed by GASB and all Financial Accounting Standards Board's
standards issued prior to November 30, 1989. Subsequent to this date, the City accounts for its proprietary
funds as prescribed by the GASB.
H. 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.
I. 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.
J. INVENTORIES AND PREPAID ITEMS
Inventories of supplies for all funds are valued at cost. The consumption method is used to account for
inventories. Under the consumption method, an expenditure is recognized when inventory items are used.
Cost is determined for inventories of supplies on the first -in, first -out method.
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.
Me]
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. JOINT VENTURE
Joint venture represents the City's equity interest calculated in accordance with the agreement for 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.
L. CAPITAL ASSETS
Capital assets are stated at historical cost. 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 any individual item with a total
cost greater than $5,000 and a useful life of at least 5 years. Contributed assets are recorded at the estimated
fair market value at the time received.
Public domain capital assets (infrastructure) have been capitalized. Infrastructure consists of certain
improvements other than buildings, including roads, curbing, gutters, streets and sidewalks and drainage
systems.
In the government -wide statements, depreciation of plant and equipment classified by functional
components is provided by the straight-line method over their estimated useful lives. Estimated useful lives
are as follows:
Buildings 30 — 50 years
Improvements other than buildings 10 — 40 years
Machinery and equipment 5 —10 years
When capital assets are retired or otherwise disposed of, a gain or loss on disposal of assets is recognized.
In the fund financial statements, because of the application of the current financial resources focus and the
use of modified accrual accounting for governmental funds, depreciation is only recognized for the
Enterprise Funds.
For the Enterprise Fund's capital assets, interest is capitalized on construction costs. The amount of interest
cost capitalized for assets constructed with tax-exempt borrowings is equal to the cost of borrowing, less
interest earned on related interest-bearing investments acquired with proceeds of the related tax-exempt
borrowings. The total amount of interest expense incurred and expensed was $3,897,654.
65
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. LONG-TERM DEBT
In the government -wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Deferred amounts related to
refundings are reported as deferred outflow of resources and amortized over the shorter of the refunded or
refunding debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Hotel Occupancy Tax Revenue Bonds were issued to fund the City's portion of the construction of a
convention center complex. The project costs were shared with a private corporation in accordance with
the Master Agreement Regarding Convention Center Development. Venue Tax and Hotel Occupancy
Revenue Bonds were issued to fund a portion of the constriction of a sports center. The Hotel Occupancy
Tax Revenue Bonds and Venue Tax and Hotel Occupancy Tax Revenue Bonds are to be repaid from the
hotel tax revenues.
Loans from the State Infrastructure Bank have been received to fund transportation improvements. The
loans are to be repaid from revenues of the Round Rock Transportation and Economic Development
Corporation.
Revenue bonds, which have been issued to fund capital projects of the Enterprise Fund, are to be repaid
from net revenues of the utility systems.
Sales tax revenue bonds have been issued to fund transportation improvements. The bonds are to be repaid
from revenues of the Round Rock Transportation and Economic Development Corporation.
N. ACCRUED BENEFIT OBLIGATIONS
Unpaid Compensated Absences
Each employee may accumulate a total of two years vacation eligibility. Employees are paid for the
accumulated vacation upon termination. Effective January 1, 1994, a liability for sick pay is not recorded
since sick pay does not vest.
el
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. ACCRUED BENEFIT OBLIGATIONS (CONTINUED)
Unpaid Compensated Absences (Continued)
The City accrues a liability for accumulated vacation and sick leave benefits, which meet the following
criteria:
— The City's obligation to fund accumulated vacation and sick leave benefits is
attributable to employees'services already rendered.
— The obligation relates to rights that vest or accumulate.
— Payment of the compensation is probable.
— The amount can be reasonably estimated.
All vacation pay is accrued when incurred in the government -wide and proprietary fund financial
statements. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements.
Other Post -employment Benefits
The City provides its retirees the opportunity to maintain health insurance coverage by participating in the
City's self-insurance plan. The City accrues a liability for the annual required contribution, as determined
by an actuary, less the actual cost incurred on a pay as you go basis 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.
O. 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.
67
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. NET POSITION
Net position in government -wide and proprietary fund financial statements are classified as net investment
in capital assets; restricted; and unrestricted. Net position classified as restricted are balances with
constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or
regulations of other governments or imposed by law through state statute.
Certain bond proceeds, as well as resources set aside for their repayment, are classified as restricted assets
because their use is limited by bond covenants. Other assets are restricted due to City Ordinance restrictions
on their use.
Net position has been restricted for the excess of restricted assets over related liabilities to the extent such
restricted assets were accumulated from revenues (i.e., in some cases, restricted assets were obtained in
total or in part from the proceeds of bond sales or grants).
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
Q. CLASSIFICATION OF FUND EQUITY
Governmental funds fund balances 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 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 commitment in the special
revenue funds is for public education and government fund activities.
Assigned fund balance — Assigned fund balances are amounts that the City intends to use for a specific
purpose but are neither restricted nor committed. Assignments are made by City management based on
Council direction.
Unassillned fund balance — Unassigned fund balances are amounts that are available for any legal
purposes. The general fund is the only fund that reports an unassigned fund balance amount.
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.
68
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. MINIMUM FUND BALANCE POLICY
It is the desire of the City to maintain an adequate fund balance in the General Fund to maintain liquidity
and 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 120 days of budgeted expenditures.
S. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following
items that qualify for reporting in this category:
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.
Pension contributions after measurement date - These contributions are deferred and
recognized in the following fiscal year.
Difference in projected and actual earnings on pension assets - This difference is deferred and
amortized over a closed five year period.
In addition to liabilities, the statement of financial 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 position that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. The City has one item that qualifies
for reporting in this category. The difference in expected and actual pension experience is deferred and
recognized over the estimated average remaining lives of all members determined as of the measurement
date.
T. TAP -IN (CONNECTION FEES) AND IMPACT FEES
Water and sewer 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 sewer 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.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
U. 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 annual required
contributions of the retirement and other post -employment benefits are based on assumptions about events
far into the future. Accordingly, actual results could differ from those estimates.
V. 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 the Texas
Municipal Retirement System (TMRS) and additions to/deductions from the City's Fiduciary Net Position
have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions
are recognized in the period that compensation is reported for the employee, which is when contributions
are legally due. Benefit payments and refunds are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value. Information regarding the City's Total Pension
Liability is obtained from TMRS through a report prepared for the City by TMRS' consulting actuary,
Gabriel Roeder Smith & Company, in compliance with GASB Statement No. 68, Accounting and Financial
Reporting for Pensions - an amendment of GASB Statement No. 27.
W. NEW AND FUTURE FINANCIAL REPORTING REQUIREMENTS
The GASB has issued the following which became effective for fiscal year 2015.
Statement No. 68 changes the focus of pension accounting for employers from whether they are responsibly
funding their plan over time to a point -in -time liability that is reflected in the employer's financial
statements for any actuarially unfunded portion of pension benefits earned to date.
70
I.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
W. NEW AND FUTURE FINANCIAL REPORTING REQUIREMENTS (CONTINUED)
The implementation of Statement No. 68 resulted in restatement of beginning net position for the recording
of the beginning net pension liability and the beginning deferred outflow for contributions made after the
measurement date. Prospectively applying this change results in the adjustment below:
Net position at September 30, 2014, as
previously reported
Recording of net pension liability as of
the measurement date
Deferral for pension contributions made
after the measurement date
Net position at September 30, 2014, as
restated
Fund Level
Government-
Statement of Revenues, Expenses
Wide Statement
and Changes in Net Position -
ofActivities
Proprietary Fund
Governmental
Business -type Water and
Activities
Activities Sewer
484,811,366 $ 346,932,393 $ 339,946,440
(28,600,077) (3,900,011) (3,900,011)
4,912,851 696,031 696,031
$ 461,124,140 $ 343,728,413 $ 336,742,460
The GASB has issued the following statements which will become effective in future years.
Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions." — This statement changes the focus of accounting of postemployment benefits other than pension
from whether they are responsibly funding the benefits over time to a point -in -time liability that is reflected
on the employer's financial statements for any actuarially underfunded portion of benefits earned to date.
This statement will become effective for the City in fiscal year 2018.
Statement No. 77, "Tax Abatement Disclosures" — This statement requires governments that enter into tax
abatement agreements to provide certain disclosures regarding these commitments. This statement will
become effective for the City in fiscal year 2017.
71
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
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) Annual budgets are legally adopted for the General Fund, Special Revenue Funds,
Debt Service Fund and the Proprietary Funds. Capital Projects Funds have no
binding annual budget. Project -length financial plans are adopted for all capital
projects; accordingly, no comparison of budget to actual is presented in the
financial statements.
(6) Amendments that alter total expenditures of any fund must be approved by the City
Council. Although costs are monitored on a departmental basis, the level of control
at which expenditures may not exceed the budget is at the fund level. The reported
budgetary data has been revised for amendments authorized.
(7) Any appropriation balances in the General Fund and Special Revenue Funds lapse
or revert to the undesignated fund balances at the close of each fiscal year.
72
II.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)
A. BUDGETARY ACCOUNTING (CONTINUED)
The budgets of the various funds are prepared on a basis consistent with generally accepted accounting
principles as described above. The following table compares original to final budgets for the General Fund.
No amendments were taken to City Council for the General Fund for the year ended September 30, 2015.
B. ENCUMBRANCES
Encumbrances represent commitments related to unperformed (executory) contracts for goods or services.
For budgetary purposes, encumbrances lapse at fiscal year-end.
73
Amendments
Original
Increase Final
Budget
(Decrease) Budget
Revenues -
Taxes and franchise,
including interest and penalties
$ 80,828,000
$ - $ 80,828,000
Licenses, permits and fees
871,700
- 871,700
Charges for services
3,885,000
- 3,885,000
Fines and forfeitures
2,569,000
- 2,569,000
Intergovernmental
345,515
- 345,515
Investment and other
2,803,200
- 2,803,200
Total revenues
91,302,415
- 91,302,415
Expenditures -
Current -
General government
25,150,140
- 25,150,140
Public safety
44,723,375
- 44,723,375
Public works
12,702,562
- 12,702,562
Culture and recreation
12,871,118
- 12,871,118
Total expenditures
95,447,195
- 95,447,195
Excess (deficiency) of revenues
over expenditures
(4,144,780)
- (4,144,780)
Other financing sources -
Issuance of lease
850,000
- 850,000
Transfers in
3,290,000
- 3,290,000
Total other financing sources
4,140,000
- 4,140,000
Net change in fund balances
$ (4,780)
$ - $ (4,780)
B. ENCUMBRANCES
Encumbrances represent commitments related to unperformed (executory) contracts for goods or services.
For budgetary purposes, encumbrances lapse at fiscal year-end.
73
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes 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 "long-term liabilities, including bonds payable,
are not due and payable in the current period and therefore are not reported in the funds." The details of this
difference are as follows:
Bonds payable
$ 209,745,000
Plus: Issuance premium (amortized against interest expense)
15,099,111
Less: Issuance discount (amortized against interest expense)
(129,427)
Bank loans
13,081,624
Capital leases payable
3,505,510
Net pension liability
29,727,655
Compensated absences
6,165,182
Other post -employment benefits
2,774,954
Net adjustment to reduce fund balance - total govermnental funds
to arrive at net position - governmental activities
$ 279,969,609
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures and changes in fund balances includes a
reconciliation 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 expense." The details of this difference are as follows:
Capital outlay $ 35,385,140
Depreciation expense (35,999,326)
Net adjustment to decrease net changes in fiord balances -
total governmentalfunds to arrive at changes in net position
of governmental activities $ (614,186)
74
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2014
RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
(CONTINUED)
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES (CONTINUED)
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 $ 3,152,680
Reclassifications, disposals, and transfers (2,186,692)
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $ 965,988
Another element of the reconciliation states that "The issuance of long-term debt (e.g. bonds, leases)
provides current financial resources to governmental funds, while the repayment of the principal of long-
term debt consumes the current financial resources of governmental funds. Neither transaction, however,
has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums,
discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in
the statement of activities." The details of this difference are as follows:
Issuance of lease
Issuance of debt
Premiums received on issuance of debt
Deferred amount on refunding
Debt payments/refundings
Capital leases payments
Net adjustment to increase net changes in fund balances -
total govermnental funds to arrive at changes in net position
ofgovernmental activities
75
$ (2,000,000)
(70,665,000)
(6,369,020)
3,240,991
58,822,521
783,208
16,187,300
IL
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
(CONTINUED)
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES (CONTINUED)
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 this difference are as follows:
Amortization of bond premium/discount
Change in compensated absences
Increase in OPEB liability
Change in accrued interest
Amortization of deferred amount on refunding
Net adjustment to decrease net changes in fund balances - total
governmentalfunds to arrive at changes in net position of
governmental activities
DETAILED NOTES ON ALL FUNDS
A. CASH AND INVESTMENTS
$ 1,005,207
(796,583)
(388,263)
(628,723)
(618,964)
$ (1,427,326)
At September 30, 2015, the carrying amount of deposits was a debit balance of $36,703,389, including
$1,927,754 in outstanding checks, and the respective bank balances totaled $34,775,634. The City's bank
balances were fully insured or collateralized with securities held by the City's agent in the City's name.
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 change in the fair value of investments during the year ended
September 30, 2015 is as follows:
Fair value at September 30, 2015 $ 305,886,500
Add: Proceeds of investments matured this fiscal year 483,852,379
Less: Cost of investments purchased this fiscal year (478,978,880)
Less: Fair value at September 30, 2014 (311,038,798)
Change in fair value of investments
76
$ (278,799)
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. CASH AND INVESTMENTS (CONTINUED)
Reconciliation of cash and investments to the statement of net position amounts for cash and cash
equivalents and investments is as follows:
Cash in banks $ 36,703,389
Investments 305,886,500
Total cash and investments $ 342,589,889
Statement of net position presentation:
Cash and cash equivalents $ 50,898,238
Investments 148,633,462
Restricted assets -
Cash and cash equivalents 19,434,955
Investments 123,623,234
Total cash and cash equivalents and investments $ 342,589,889
Investments are classified as follows:
Weighted
Average
Carrying Fair Maturity
Amount Value (Days)
U. S. Government Securities $ 228,044,832 $ 228,044,832 357
Certificates of Deposit 12,245,000 12,245,000 234
Investments in State Investment Pools 65,596,668 65,596,668 1
$ 305,886,500 $ 305,886,500
Portfolio weighted average maturity 276
In accordance with its investment policy, the City manages its interest rate risk by limiting the weighted
average maturity of its portfolio to less than 540 days.
77
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. CASH AND INVESTMENTS (CONTINUED)
Legal and Contractual Provisions Governina Deposits and Investments
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports and establishment of appropriate policies. Among other
things, it requires the City to adopt, implement, and publicize an investment policy. That policy must
address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable
investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity
of portfolio investments, (7) maximum average dollar -weighted maturity allowed based on the stated
maturity date for the portfolio, (8) investment staff quality and capabilities, 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) bankers 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.
Additional contractual provisions governing deposits and investments are as follows:
The funds of the City must be deposited and invested under the terms of a contract, contents of which are
set out in the Depository Contract Law. The depository bank places approved pledged securities for
safekeeping and trust with the City's agent bank in an amount sufficient to protect City funds on a day-to-
day basis during the period of the contract. The pledge of approved securities is waived only to the extent
of the depository bank's dollar amount of Federal Deposit Insurance Corporation ("FDIC') insurance.
Policies Governing Deposits and Investments
1. Foreign Currency Risk — The City's deposits and investments are not exposed to foreign currency risk.
2. Custodial Credit Risk — The City's policy is to be collateralized. The City was fully collateralized during
the year.
3. Interest Rate Risk — The City has no debt securities which have interest rate risk.
4. Other Credit Risk Exposure — The City does not invest in debt securities directly; however, there are
some in the pools the City invests in.
78
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
A. CASH AND INVESTMENTS (CONTINUED)
5. Credit Risk — In compliance with the City's Investment Policy, as of September 30, 2015, the City
minimized credit risk losses due to default of security issuer or backer by:
a) Limiting investments to the safest rated securities. All the City's purchased investments in
U. S. Agencies were rated AAA, AAA, and Aaa by Standard & Poors, Fitch and Moody's
respectively;
b) Using a registered investment advisor to provide investment and market advice; and
c) Diversifying the investment portfolio so that potential losses on individual securities were
minimized.
The City invests on a short term basis in three investment pools. At September 30, 2015, $55,414,096 was
invested in Texpool. The Comptroller of Public Accounts is the sole officer and director of the Texas
Treasury Safekeeping Trust Company, which is authorized to operate the state investment pool. The
Comptroller maintains oversight of all operations of the pool. The state investment pool is rated AAAm
by Standard and Poor's.
In addition, $5,180,221 was invested in the Texas Short Term Asset Reserve Program (TexSTAR) and
$5,002,351 in TexasDAILY. Both are an investment pool that is authorized under Chapters 791
(Cooperation Act) and 2256 (Investment Act) of the Texas Government Code. These investment pools are
managed by board of directors and member advisory boards. Participants have representation on the board.
TexSTAR and TexasDAILY are rated AAAm by Standard & Poors.
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 2015 were in the
aforementioned categories.
79
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
B. PROPERTY TAXES AND RECEIVABLES
Property taxes attach as an enforceable lien on January 1. Taxes are levied on or about October 1, are due
on November 1, and are past due the following February 1. The Williamson and Travis Central Appraisal
Districts established appraisal values in accordance with requirements of the Texas Legislature.
The City Council levies taxes based upon the appraised values. Williamson County and Travis County
bills and collects the City's property taxes.
The property tax rates, established in accordance with state law, were based on 100% of the net assessed
valuation of real and personal property within the City on the 2014 tax roll. The tax rate, based on total
taxable assessed valuation of $9,634,156,426 was $0.41465 on each $100 valuation and was allocated to
the General Fund and Debt Service Fund at $0.26283 and $0.15182, respectively.
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.
80
General
Debt Service
Fund
Fund
Total
Current year levy
$ 94,160
$ 46,377 $
140,537
Prior years' levies
178,432
110,167
288,599
272,592
156,544
429,136
Less - allowance for
uncollectible taxes
(2,726)
(1,565)
(4,291)
$ 269,866
$ 154,979 $
424,845
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.
80
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. INTERFUND, RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables as of September 30, 2015 were as follows:
Receivable Fund
General
Debt Service
Round Rock Transportation
Development
Corporation Project Fund
Nonmajor Governmental Funds
Governmental Funds
Payable Fund
Nomnajor Governmental Funds
General Fund
Round Rock Transportation
Development
Corporation Revenue Fund
General Fund
Receivable Payable
$ 11,758 $ 11,758
18,215 18,215
1,500,000 1,500,000
70,124 70,124
$ 1,600,097 $ 1,600,097
$ 1,600,097 $ 1,600,097
Remaining balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and
(3) payments between funds are made.
The City reports interfund transfers between many of its funds. These routine transfers are consistent with
the activities of the funds.
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the
fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the
funds collecting the receipts to the debt service fund as debt service payments become due and (3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other funds
in accordance with budgetary authorizations. A summary of transfers between funds is on the next page.
81
IV
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
C. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED)
General Fund -
Water and Sewer Fund
Self -financed Construction
Debt Service Fund -
Golf Course Fund
Round Rock Transportation Development Corporation
Revenue Fund
Nonmajor Governmental Funds
Round Rock Transportation Development Corporation
Revenue Fund -
Debt Service Fund
Nonmajor Governmental Funds
Self -Financed Construction -
Nonmajor Governmental Funds
Other Governmental Funds -
General Fund
Debt Service Fund
Round Rock Transportation Development Corporation
Revenue Fund
Self -financed Construction
Nonmajor Governmental Funds
Subtotal of Governmental Funds
Water and Sewer Fund -
General Fund
Golf Course Fund -
Debt Service Fund
Subtotal of Proprietary Funds
82
Transfers In Transfers Out
$ 3,290,000 $ -
- 70,124
3,290,000 70,124
450,000 -
6,590,000 -
1,074,500 31,000
8,114,500 31,000
6,590,000
6,750,000
13,340,000
8,034,703
8,034,703
70,124
-
31,000
1,074,500
6,750,000
-
-
8,034,703
780,538
780,538
7,631,662
9,889,741
27,070,865
23,330,865
3,290,000
3,290,000
- 450,000
- 450,000
- 3,740,000
$ 27,070,865 $ 27,070,865
ILI
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
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 St,
Round Rock, Texas, 78664.
STATEMENT OF NET POSITION
As of September 30, 2015
ASSETS
Cash and cash equivalents
Receivables, other current assets
Restricted investments
Capital assets
Total Assets
LIABILITIES
Accounts payable
Retainage payable
Accrued bond interest payable
Total current liabilities
Bonds payable
Total Liabilities
NET POSITION
Total
$ 11,498,844
171,485
25,327,238
160,746,875
197,744,442
1,181,474
1,582,268
1,341,828
4,105,570
172,885,000
176,990,570
$ 20,753,872
City's Interest
$ 4,443,547
62,047
11,392,471
58,651,411
74,549,476
298,989
542,984
471,922
1,313,895
60,855,000
62,168,895
$ 12,380,581
STATEMENT OF ACTIVITIES AND CHANGES IN NET
POSITION
For the Year Ended September 30, 2015
Operating revenues
Interest expense
Other operating expenses
Other income
Changes in Net Position
Net position, October 1, 2014
Contribution of capital, net
Net position, September 30, 2015
Total
$ 821,883
(8,099,147)
(841,553)
192,985
(7,925,832)
17,408,439
11,271,265
$ 20,753,872
83
City's Interest
$ 252,471
(2,855,871)
(151,372)
70,799
(2,683,973)
10,775,576
4,288,978
$ 12,380,581
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2015 was as follows:
October 1, Additions/ Retirements/ September 30,
2014 Completions Adiustments 2015
Governmental Activities:
Capital assets not being depreciated:
Land $
44,863,340 $
1,495,523 $ (607,721) $
45,751,142
Construction in progress
13,877,726
32,423,921 (16,127,410)
30,174,237
Total capital assets not being depreciated
58,741,066
33,919,444 (16,735,131)
75,925,379
Capital assets being depreciated:
Buildings and improvements
770,401,996
14,408,100 (1,224,483)
783,585,613
Equipment
63,562,469
5,519,604 (1,543,242)
67,538,831
Total capital assets being depreciated
833,964,465
19,927,704 (2,767,725)
851,124,444
Less accumulated depreciation for:
Buildings and improvements
331,304,391
29,714,404 (508,298)
360,510,497
Equipment
45,990,239
6,284,922 (1,498,538)
50,776,623
Total accumulated depreciation
377,294,630
35,999,326 (2,006,836)
411,287,120
Total capital assets being depreciated, net
456,669,835
(16,071,622) (760,889)
439,837,324
Governmental activities capital assets, net$
515,410,901 $
17,847,822 $ (17,496,020) $
515,762,703
Business -type activities:
Capital assets not being depreciated:
Land $
8,452,956 $
- $ - $
8,452,956
Construction in progress
20,419,931
11,379,815 (26,483,727)
5,316,019
Total capital assets not being depreciated
28,872,887
11,379,815 (26,483,727)
13,768,975
Capital assets being depreciated:
Buildings and improvements
412,380,692
32,186,697 910,615
445,478,004
Equipment
13,959,837
1,646,032 (573,466)
15,032,403
Total capital assets being depreciated
426,340,529
33,832,729 337,149
460,510,407
Less accumulated depreciation for:
Building and improvements
133,112,555
13,342,270 (1,250)
146,453,575
Equipment
10,238,368
1,466,062 (573,466)
11,130,964
Total accumulated depreciation
143,350,923
14,808,332 (574,716)
157,584,539
Total capital assets being depreciated, net
282,989,606
19,024,397 911,865
302,925,868
Business -type activities capital assets, net $
311,862,493 $
30,404,212 $ (25,571,862) $
316,694,843
84
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
E. CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
$
3,436,151
Public safety
2,785,729
Public works
None
24,943,275
Culture and recreation
37,328
4,834,171
Total depreciation expense -governmental activities
$
35,999,326
Business -type activities:
Water and sewer utility
$
14,677,799
Golf course
471,222
130,533
Total depreciation expense -business -type activities
$
14,808,332
Major construction contracts in progress from inception to September 30, 2015, consisted of the
following:
Projects funded principally by
general obligation debt -
Parks and recreation facilities
Parks, public safety, streets and
public service facilities
Parks, public safety and library
Municipal complex, public safety
and street improvements
Self -financed construction
Round Rock Transportation
System -
road improvements
Sports venue complex
Projects funded by revenue bonds
and developer contributions -
Drainage system improvements
Utility line improvements
Self -financed construction
Expended
to
Project September 30,
Authnri7atinn 2015
Future
Committed Financing
$ 15,044,947 $
$ 15,044,947 $
-
None
None
71,089,629
71,052,301
37,328
71,161,003
9,558,231
61,602,772
None
None
21,752,945
21,281,723
471,222
37,469,911
30,201,477
7,268,434
None
None
96,902,908 48,063,800 48,839,108
22,588,212 22,010,944 577,268 None
$ 336,009,555 $ 217,213,423 $ 118,796,132
$ 5,249,159 $ 949,524 $ 4,299,635 None
2,619,938 63,387 2,556,551 None
64,695,486 49,485,032 15,210,454 None
$ 72,564,583 $ 50,497,943 $ 22,066,640
85
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
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, 2015:
The General Fund and Hotel/Motel Fund are responsible for liquidating the liability for compensated
absences and other post -employment benefits in the governmental activities and the Water and Sewer Fund
and Drainage Fund are responsible for liquidating the liability for compensated absences and other post -
employment benefits in the business -type activities.
:C
Balance
October 1,
Balance
2014
Refundings/
September 30,
Due within
(restated)
Additions
Retirements
2015
one year
Governmental Activities
General obligation bonds $
155,780,000
$ 32,465,000
$ (33,320,000)
$ 154,925,000
$ 6,835,000
Certificates of obligation
11,135,000
27,270,000
(8,730,000)
29,675,000
860,000
Hotel tax revenue bonds
13,795,000
-
(570,000)
13,225,000
590,000
Sales tax revenue bonds
15,700,000
10,930,000
(14,710,000)
11,920,000
2,740,000
State infrastructure bank loans
14,574,145
-
(1,492,521)
13,081,624
1,554,237
Plus deferred amount:
For issuance premium
9,748,977
6,369,020
(1,018,886)
15,099,111
1,131,187
For issuance discount
(143,106)
-
13,679
(129,427)
(13,679)
Lease purchase payable
2,288,718
2,000,000
(783,208)
3,505,510
1,009,481
Net pension liability
28,600,077
1,127,578
29,727,655
-
Compensated absences
5,368,599
4,719,594
(3,923,011)
6,165,182
4,130,672
Other post -employment benefits
2,386,691
824,678
(436,415)
2,774,954
-
Total governmental activities
259,234,101
85,705,870
(64,970,362)
279,969,609
18,836,898
Business -Type Activities
Revenue bonds
89,025,000
-
(2,900,000)
86,125,000
2,860,000
Plus deferred amount:
For issuance premium
1,774,894
-
(71,946)
1,702,948
71,946
Net pension liability
3,900,011
153,761
4,053,772
-
Compensated absences
522,418
439,159
(456,849)
504,728
398,735
Other post -employment benefits
295,587
112,456
(59,511)
348,532
-
Total business -type activities
95,517,910
705,376
(3,488,306)
92,734,980
3,330,681
Total government $
354,752,011
$ 86,411,246
$ (68,458,668)
$ 372,704,589
$ 22,167,579
The General Fund and Hotel/Motel Fund are responsible for liquidating the liability for compensated
absences and other post -employment benefits in the governmental activities and the Water and Sewer Fund
and Drainage Fund are responsible for liquidating the liability for compensated absences and other post -
employment benefits in the business -type activities.
:C
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
Long-term debt at September 30, 2015 is comprised of the following:
General Obligation Bonds:
$44,770,000 2007 GO and refunding bonds due in annual installments
of $250,000 to $3,455,000 through 2032; interest at 4.0% to 5.0%
$18,575,000 2010 refunding bonds due in annual installments
of $140,000 to $1,940,000 through 2027; interest at 2.0% to 4.0%
$19,580,000 2011 refunding bonds due in annual installments
of $405,000 to $1,885,000 through 2027; interest at 2.0% to 4.0%
$8,615,000 2013 refunding bonds due in annual installments
of $455,000 to $925,000 through 2024; interest at 1.00% to 1.65%
$10,465,000 2014A GO and refunding bonds due in annual installments
of $270,000 to $1,740,000 through 2021; interest at 2.0% to 5.0%
$66,885,000 2014 GO and refunding bonds due in annual installments
of $ -0- to $4,790,000 through 2038; interest at 3.0% to 5.0%
$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%
Total General Obligation Bonds
Certificates of Obligation:
$14,915,000 2007 Combination tax and revenue certificates of
obligation due in installments of $375,000 to $1,100,000
through 2027; interest at 4.0% to 4.625%
$27,270,000 2014 Combination tax and revenue certificates of
obligation due in installments of $175,000 to $1,700,000
through 2039; interest at 2.0% to 4.0%
Total Certificates of Obligation
Hotel Tax Revenue Bonds:
$8,920,000 2007 refunding bonds due in annual installments of
$345,000 to $690,000 through 2025; interest at 4.0% to 4.5%
$7,715,000 2012 venue tax and hotel bonds due in annual installments of
$110,000 to $590,000 through 2038; interest at 2.0% to 4.0%
Total Hotel Tax Revenue Bonds
Sales Tax Revenue Bonds:
$10,650,000 2011 refunding bonds due in annual installments of
$1.0 to $2.5 million through 2016 including interest at 1.25%
$10,930,000 2015 refunding bonds due in annual installments of
$1.75 to $1.89 million through 2021 including interest at 1.56%
Total Sales Tax Revenue Bonds
87
Governmental Business -type
Activities Activities
8,040,000 $
16,645,000
15,340,000
6,755,000
8,795,000
66,885,000
32,465,000 -
154,925,000 -
2,405,000
27,270,000
29,675,000
5,730,000
7,495,000 -
13,225,000 -
10,930,000
11,920,000
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
Governmental Business -type
Activities Activities
State Infrastructure Bank Loans:
$7,000,000 2006 note due in annual installments of $557,759 through
2021 including interest at 4% $ 3,337,466 $
$16,000,000 2008 note due in annual installments of $1,459,255
through 2023 including interest at 4.2% 9,744,158
Total State Infrastructure Bank Loans 13,081,624
Utility System Revenue Bonds:
$12,000,000 2006 bonds due in annual installments of
365,000 to $835,000 through 2026; interest at 2.2 to 2.95% - 8,035,000
78,785,000 2009 bonds due in annual installments of
$645,000 to $4,455,000 through 2039; interest at 2.0 to 5.0% - 70,090,000
$8,000,000 2014 bonds due in annual installments of
$ -0- to $585,000 through 2034; interest at 2.0 to 4.0% - 8,000,000
Total Utility System Revenue Bonds - 86,125,000
Issuance premium
15,099,111
1,702,948
Issuance discount
(129,427)
-
Lease purchases payable:
$4,950,000 leases due in semi annual installments including interest
ranging from 1.02% - 1.619% due in 2020. The lease obligation
is funded with general revenue sources. Equipment under
capital lease totaled $3,055,510 at 9/30/2015.
3,505,510
-
Net pension liability
29,727,655
4,053,772
Compensated absences
6,165,182
504,728
Other post -employment benefits
2,774,954
348,532
Total primary government debt
$ 279,969,609 $
92,734,980
88
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
The annual requirements to amortize bonded, certificates of obligation, loan and lease debt at
September 30, 2015, including interest, are as follows:
Governmental Activities:
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2035
2036-2040
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2035
2036-2040
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
General and Certificates of Obligation Debt
Principal
Interest
Total
$ 7,520,000
$ 8,392,676 $
15,912,676
8,245,000
7,453,625
15,698,625
8,560,000
7,142,458
15,702,458
10,850,000
6,846,293
17,696,293
11,260,000
6,439,163
17,699,163
48,890,000
25,390,863
74,280,863
35,565,000
15,867,161
51,432,161
29,255,000
8,716,338
37,971,338
24,455,000
2,600,631
27,055,631
$ 184,600,000
$ 88,849,208 $
273,449,208
Hotel Tax Revenue
Principal
$ 590,000
615,000
635,000
660,000
685,000
3,855,000
2,060,000
2,425,000
1,700,000
$ 13,225,000
Principal
$ 2,740,000
1,780,000
1,810,000
1,840,000
1,860,000
1,890,000
$ 11,920,000
:e
Interest Total
$ 482,366
460,716
438,166
414,716
390,019
1,507,934
944,100
582,295
103,800
$ 5,324,112
Sales Tax Revenue
Interest
$ 182,883
143,208
115,440
87,204
58,500
29,484
$ 616,719
$ 1,072,366
1,075,716
1,073,166
1,074,716
1,075,019
5,362,934
3,004,100
3,007,295
1,803,800
$ 18,549,112
Total
$ 2,922,883
1,923,208
1,925,440
1,927,204
1,918,500
1,919,484
$ 12,536,719
IV.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
Governmental Activities (Continued):
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
Year Ending September 30,
2016
2017
2018
2019
2020
Business -type Activities:
Year Ending September 30,
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2035
2036-2039
State Infrastructure Bank Loans
Principal
$ 1,554,237
1,618,507
1,685,435
1,755,133
1,827,714
4,640,598
$ 13,081,624
Principal
$ 1,009,481
683,432
694,284
705,309
413,004
$ 3,505,510
Principal
$ 2,860,000
2,950,000
3,030,000
3,130,000
3,250,000
17,795,000
17,425,000
19,095,000
16,590,000
$ 86,125,000
GQ
Interest
$ 542,753
478,484
411,555
341,858
269,277
367,777
$ 2,411,704
Lease Purchases
Total
$ 2,096,990
2,096,991
2,096,990
2,096,991
2,096,991
5,008,375
$ 15,493,328
Interest Total
$ 50,157 $
1,059,638
36,908
720,340
26,069
720,353
15,058
720,367
5,025
418,029
$ 133,217 $
3,638,727
Utility System
Revenue Bonds
Interest Total
3,UU,M4
3,718,234
3,627,429
3,515,274
3,377,994
14,909,951
11,206,870
6,935,531
2,124,250
$ 53,235,737
$ 6,680,204
6,668,234
6,657,429
6,645,274
6,627,994
32,704,951
28,631,870
26,030,531
18,714,250
$ 139,360,737
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
Business -type Activities (Continued):
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, 2015, there are no bonds outstanding which have been reported as defeased.
Bond ordinances also provide for other limitations and restrictions. The City is in compliance with all
significant limitations and restrictions contained in the various bond ordinances.
In November 2013, the voters authorized the issuance of general obligation bonds to fund capital assets
of the general government. The full faith and credit of the City as well as the City's ad valorem taxing
authority back general obligation bonds.
Date Amount Amount Unissued
Purpose Authorized Authorized Issued (*) Balance
Fire Department
Parks & Recreation
Library
Police & Fire
11/5/2013 $ 16,500,000
11/5/2013 56,500,000
11/5/2013 23,200,000
11/5/2013 27,400,000
$ 123,600,000
$ 7,000,000
46,225,000
1,500,000
16,300,000
$ 71,025,000
$ 9,500,000
10,275,000
21,700,000
11,100,000
$ 52,575,000
(*) "Amount issued" column is adjusted pursuant to rules used by the Texas Attorney General.
The City may incur non -voted debt payment from or secured by its levy and collection of ad valorem taxes
and other sources of revenue, including tax notes, public property finance contractual obligations, and leases
for various purposes.
(1) UTILITY REVENUE BONDS
The City is required by bond ordinances to pledge the net revenues of the waterworks and sewer system for
the retirement of its outstanding revenue bonds, including interest thereon, and is required for such purposes
to maintain debt service funds and bond reserve funds for all outstanding revenue bonds.
The debt service funds are restricted within the Enterprise Fund and require that net revenues of the City's
waterworks and sewer system, after operating and maintenance expenses are deducted, be irrevocably
pledged by providing equal monthly installments which will accumulate to the semi-annual principal and
interest requirements as they become due.
91
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
(1) UTILITY REVENUE BONDS (CONTINUED)
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.
(2) HOTEL TAX REVENUE BONDS
The debt service fund for the hotel tax revenue bonds, aggregating $867,185 at September 30, 2015, 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 $807,358 at September 30, 2015.
This amount is in compliance with the requirements contained in the bond's Indenture Agreement. This
agreement requires %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.
(3) SALES TAX REVENUE BONDS
The Round Rock Transportation and Economic Development Corporation issued the sales tax revenue
bonds. The Corporation is a blended component unit of the City of Round Rock, which collects '/i of 1%
of the sales tax collected by the State on its behalf. Although the Corporation 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 Round Rock Transportation and Economic Development
Corporation.
The debt service fund for the sales tax revenue bonds, aggregating $137,577 at September 30, 2015, is
reported in the governmental funds. Bond covenants require that the Corporation's share of the sales tax is
pledged as security for the bonds. The Corporation 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. The Corporation purchased bond insurance to provide
for payment of the principal and interest requirements in the event that pledged revenues are not sufficient.
92
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
F. LONG-TERM DEBT (CONTINUED)
(4) 2015 REFUNDING/ISSUANCE
In December 2014, the City issued $27,270,000 in Combination Tax and Limited Revenue Certificates of
Obligation, Series 2014. The proceeds along with a reoffering premium will be used for transportation
improvements and payment of costs to issue the bonds.
In January 2015, the City advance refunded portions of General Obligation Bonds and Combination Tax
and Revenue Certificates of Obligation. The net proceeds of $32,465,000 of general obligation refunding
bonds plus the reoffering premium (after payment of underwriting fees, insurance and other issuance costs)
were used to purchase U.S. government securities. Those securities were deposited into irrevocable trusts
with an escrow agent for the purpose of generating resources for all future debt service payments for the
refunded debt. As a result, the refunded bonds are considered defeased, and the debt for these bonds has
been removed from the City's financial statements.
This advance refunding will reduce the total debt service payments over the next 17 years by $4,068,603,
and will result in an economic gain (i.e., the difference between the present value of the debt service
payments of the refunded debt and the refunding bonds) of $3,146,470.
Additionally, in May 2015 the City advance refunded portions of Sales Tax Revenue Bonds. The net
proceeds of $10,930,000 of Sales Tax Revenue Bonds (after payment of underwriting fees, insurance and
other issuance costs) were used to purchase U.S. government securities. Those securities were deposited
into irrevocable trusts with an escrow agent for the purpose of generating resources for all future debt
service payments for the refunded debt. As a result, the refunded bonds are considered defeased, and the
debt for these bonds has been removed from the City's financial statements.
This advance refunding will reduce the total debt service payments over the next 6 years by $935,313, and
will result in an economic gain (i.e., the difference between the present value of the debt service payments
of the refunded debt and the refunding bonds) of $881,552.
The City does not plan to issue any new debt until fiscal year 2017 - 2018.
93
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
IV. DETAILED NOTES ON ALL FUNDS (CONTINUED)
G. ACCRUED COMPENSATED ABSENCES
Changes to accrued compensated absences for the year ended September 30, 2015, were as follows:
Accrued compensated absences due within one year were $4,130,672 for governmental activities and
$398,735 for business -type activities. Liabilities for accrued compensated absences are funded from
general fund revenue for the governmental activities and water and sewer fund and drainage fund progratn
revenues for the business -type activities.
H. RESTRICTED ASSETS
The following summarizes restricted assets by purpose at September 30, 2015:
Governmental Activities:
Debt Service fund
Restricted by debt covenants -
Round Rock Transportation
System Development Corp.
2014 General Obligation Bond Fund
2014 Certificates of Obligation Bond
Nonmajor capital projects funds
Total Governmental Activities
Business -Type Activities:
Water and sewer fund -
Impact fees
Construction
Customer deposits
Revenue bond debt service
Accrued interest receivable
Loans receivable
Total Business -Type Activities
Governmental
Business -type
Sales
Activities
Activities
Balance, October 1, 2014
$ 5,368,599
$ 522,418
Additions
4,719,594
439,159
Reductions
(3,923,011)
(456,849)
Balance, September 30, 2015
$ 6,165,182
$ 504,728
Accrued compensated absences due within one year were $4,130,672 for governmental activities and
$398,735 for business -type activities. Liabilities for accrued compensated absences are funded from
general fund revenue for the governmental activities and water and sewer fund and drainage fund progratn
revenues for the business -type activities.
H. RESTRICTED ASSETS
The following summarizes restricted assets by purpose at September 30, 2015:
Governmental Activities:
Debt Service fund
Restricted by debt covenants -
Round Rock Transportation
System Development Corp.
2014 General Obligation Bond Fund
2014 Certificates of Obligation Bond
Nonmajor capital projects funds
Total Governmental Activities
Business -Type Activities:
Water and sewer fund -
Impact fees
Construction
Customer deposits
Revenue bond debt service
Accrued interest receivable
Loans receivable
Total Business -Type Activities
$ 1,689,954 $ 4,837,486 $ 336,041
3,848,049 7,938,045 - - -
1,039,504 - - -
440,715 - - -
- - 15,160 -
- - - - 110,522
$ 7,018,222 $ 12,775,531 $ 336,041 $ 15,160 $ 1101522
94
Property
Sales
Accrued
Cash & Cash
Taxes
Tax
Interest
Equivalents
Investments
Receivable
Receivable
Receivable
$ 2,333,566
$ -
$ 154,979
$
$
8,645,510
24,309,070
-
1,265,159
36,430
440,667
62,509,301
-
-
32,343
748,172
22,779,578
-
-
248,818
1,249,754
-
-
1,165
$ 12,416,733
$ 110,847,703
$ 154,979
$ 1,265,159
$ 69,938
Accrued
Cash & Cash
Accounts
Interest
Loans
Equivalents
Investments
Receivable
Receivable
Receivable
$ 1,689,954 $ 4,837,486 $ 336,041
3,848,049 7,938,045 - - -
1,039,504 - - -
440,715 - - -
- - 15,160 -
- - - - 110,522
$ 7,018,222 $ 12,775,531 $ 336,041 $ 15,160 $ 1101522
94
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
V. OTHER INFORMATION
A. COMMITMENTS AND CONTINGENCIES
Tax Collections
The City has a contract with Williamson and Travis counties tax offices to collect City taxes and deposit
monies to the City's accounts. For this service, Williamson County was paid $8,143 and Travis County
was paid $467 for the fiscal year ended September 30, 2015.
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 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 ("the
Authority"), 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, 2015, the City's cost under this contract was $467,040.
On September 12, 1991, the City entered into the "Replacement Water Supply Agreement" with the
Authority, wherein it received the right to purchase 8,134 acre-feet of water per year from Lake Stillhouse
Hollow. 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, 2015, the City's
cost under this contract was $1,260,313.
Effective September 1, 2001, the City entered into a "System Water Availability Agreement for Colorado
River Basin Water" with the Authority, 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, 2015, the City's
cost under these contracts was $1,908,474.
Future annual charges under the Water Supply Agreements will be based upon the system rate periodically
set by the Authority.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
V. OTHER INFORMATION (CONTINUED)
A. COMMITMENTS AND CONTINGENCIES (CONTINUED
Regional Sewer Project
In October 1996, as part of a plan for a regional wastewater collection, treatment and disposal system, the
City and the City of Cedar Park entered into agreements with an alliance ("Alliance") formed by the Brazos
River Authority (`BRA") and the Lower Colorado River Authority ("LCRA"). In 1998, LCRA acquired
the treatment facilities of the City (these facilities were repurchased from the LCRA in 2009, as described
below). BRA contracted with the cities to operate and maintain the regional system.
In September 2009, the cities of Round Rock, Austin and Cedar Park entered into a Purchase Agreement
with the LCRA wherein they agreed to buy the Brushy Creek Regional Wastewater System ("BCRWWS")
from the LCRA. The agreement outlined the proportional share that each city would purchase of the
wastewater transportation and treatment system. On December 8, 2009, the three cities purchased the
BCRWWS assets; 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.
The system currently has a total treatment capacity of 24.5 MGD which is sufficient to meet future projected
flows through 2017. The City of Round Rock's current wastewater capacity in the system is 20.1 MGD.
The BRA is contracted to provide operation of the system; for which each of the cities is invoiced relative
to their system usage. For the fiscal year ended September 30, 2015, expenditures for operation of the
regional facilities were $3,893,784.
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.
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, 2015, the potential
rebate was calculated at $0.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
V. OTHER INFORMATION (CONTINUED)
A. COMMITMENTS AND CONTINGENCIES (CONTINUED)
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, are -not available to employees until termination of
employment, retirement, death or an unforeseen emergency. A third party administrator, Nationwide
Retirement Solutions, administers contributions to the plan. Effective January 1997, and in compliance
with the provisions of the IRC Section 457(g), the plan assets are in custodial accounts for the exclusive
benefit of the plans' participants and beneficiaries. In 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 Agreement
The City has entered into an economic development agreement with a computer manufacturer. Under the
terms of the agreement, the City refunds approximately 31 % of sales tax collections on sales made by the
computer manufacturer in the State of Texas. The computer manufacturer represents approximately 32%
of the City's sales tax collections for the year ended September 30, 2015.
B. RISK MANAGEMENT
The City is a member of the Texas Municipal League's Intergovernmental Risk Pool ("Pool"). The Pool
was created for the purpose of providing coverage against risks, which are inherent in operating a political
subdivision. The City pays annual premiums to the Pool for liability, property and workers' compensation
coverage and all billed premiums upon the coverage have been paid. The City's agreement with the Pool
provides that the Pool will be self-sustaining through member premiums and will provide reinsurance
contracts through commercial companies. The Pool agrees to handle all liability, property and workers'
compensation claims and provide any defense as is necessary. The Pool makes available to the City loss
control services to assist the City in following a plan of loss control that may result in reduced losses. The
City agrees that it will cooperate in instituting any and all reasonable loss control recommendations made
by the Pool. The City has experienced no significant reductions in coverage through the Pool over the past
year. There have been no insurance settlements exceeding Pool coverage for any of the past three years.
Self -Funded Health Insurance Fund
The City is self-insured for medical and dental claims. The self-insurance program is maintained in the
Self -Funded Health Insurance Internal Service Fund. This program provides health benefit coverage in
accordance with a pre -approved plan that establishes coverage limits per employee per year with unlimited
health coverage benefits. The City purchases commercial insurance for claims in excess of a contractual
City liability limit.
97
0
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
B. RISK MANAGEMENT (CONTINUED)
Additionally, commercial insurance covers claims in excess of an aggregate amount for the City up to
$1,000,000 per plan year. Settled claims have not exceeded the commercial coverage in any of the past
three fiscal years. The liability is estimated based upon claims settled within the next month. An analysis
of claims activities is presented below:
Claims and
Beginning Changes in Actual Claim
Fiscal Year Liability Estimates Payments
2013 $ 551,484 $ 6,235,153
2014 $ 468,850 $ 7,118,789
2015 $ 605,912 $ 8,351,468
C. EMPLOYEE RETIREMENT PLAN
Plan Description
Balance
at Year -End
$ 6,317,787 $ 468,850
$ 6,981,727 $ 605,912
$ 8,535,401 $ 421,979
The City participates as one of 860 plans in the non-traditional, joint contributory, hybrid defined benefit
plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the
State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government
Code (the TMRS Act) as an agent multiple -employer retirement system for municipal employees in the
State of Texas. The TMRS Act places the general administration and management of the System with a
six -member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints
the Board, TMRS is not fiscally dependent on the State of Texas. TMRS' defined benefit pension plan is a
tax -qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available
comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the
city -financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payment options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments, which cannot exceed 75% of the member's deposits and interest.
98
V.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
C. EMPLOYEE RETIREMENT PLAN (CONTINUED)
A summary of plan provisions for the City are as follows:
Employee deposit rate
Matching ratio (city to employee)
Years required for vesting
Service retirement eligibility
Updated Service Credit
Annuity increase (to retirees)
Employees covered by benefit terms.
7.0%
2 to 1
-5
20 years at any age, 5 years at
age 60 and above
100% Repeating, Transfers
70% of CPI Repeating
At the December 31, 2014 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 227
Inactive employees entitled to but not yet receiving benefits 286
Active employees 826
Total 1.339
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and
the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of
the city. Under the state law governing TMRS, the contribution rate for each city is determined annually
by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate
is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with
an additional amount to finance any unfunded accrued liability. Since the City needs to know its
contribution rates in advance for budgetary purposes, there is a one-year delay between the actuarial
valuation that serves as the basis for the rate and the calendar year when the rate goes into effect.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The City elected to contribute the full rate of 15.87% for fiscal year 2015. Accordingly, contributions to
TMRS for the year ended September 30, 2015, were $8,193,478, and were equal to the required
contributions.
Net Pension Liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of
that date.
at
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
V. OTHER INFORMATION (CONTINUED)
C. EMPLOYEE RETIREMENT PLAN (CONTINUED)
Actuarial assumptions:
The Total Pension Liability in the December 31, 2014 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 3.0% per year
Overall payroll growth 3.0% per year
Investment rate of return 7.0%, net of pension plan investment expense, including inflation
Salary increases were based on a service -related table. Mortality rates for active members, retirees, and
rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the
gender -distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments.
Actuarial assumptions used in the December 31, 2014, valuation were based on the results of actuarial
experience studies. The experience study in TMRS was for the period January 1, 2006 through December
31, 2009, first used in the December 31, 2010 valuation. Healthy post-retirement mortality rates and annuity
purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through
2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013
valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are
reviewed annually. No additional changes were made for the 2014 valuation.
The long-term expected rate of return on pension plan investments is 7.0%. The pension plan's policy in
regard to the allocation of invested assets is established and may be amended by the TMRS Board of
Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as
well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
100
V.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
C. EMPLOYEE RETIREMENT PLAN (CONTINUED)
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. The target allocation and best estimates
of arithmetic real rates of return for each major asset class are summarized in the following table:
Non-core fixed
Income
Real return
Real estate
Absolute return
Private equity
Total
Single Discount Rate
10.0%
3.50%
Long -Term Expected
Asset Class
Target
Real Rate of Return
5.0%
Allocation
(Arithmetic)
Domestic equity
17.5%
4.80%
International equity
17.5%
6.05%
Core fixed income
30.0%
1.50%
Non-core fixed
Income
Real return
Real estate
Absolute return
Private equity
Total
Single Discount Rate
10.0%
3.50%
5.0%
1.75%
10.0%
5.25%
5.0%
4.25%
5.0%
8.50%
100.0%
Projected benefit payments are required to be discounted to their actuarial present values using a single
discount rate that reflects (1) a long-term expected rate of return on pension plan investments (to the extent
that the plan's fiduciary net position is projected to be sufficient to pay benefits) and (2) tax-exempt
municipal bond rate based on an index of 20 -year general obligation bonds with an average AA credit rating
as of the measurement date (to the extent that the plan's projected fiduciary net position is not sufficient to
pay benefits).
For the purpose of this valuation, the expected rate of return on pension plan investments is 7.0%; the
municipal bond rate is 3.65% (based on the weekly rate closest to but not later than the measurement date
of the 20 -Year Bond Buyer Index as published by the Federal Reserve). A single discount rate of 7.0% was
used to measure the total pension liability as of December 31, 2014. This single discount rate was based
on the expected rate of return on pension plan investments of 7.0%. Based on the stated assumptions and
the projection of cash flows, the City's fiduciary net position and future contributions were sufficient to
finance the future benefit payments of the current plan members for all projection years. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of the projected
benefit payments to determine the total pension liability for the City. The projection of cash flows used to
determine the single discount rate for the City assumed that the funding policy adopted by the TMRS Board
will remain in effect for all future years.
no
11
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
C. EMPLOYEE RETIREMENT PLAN (CONTINUED)
Under this funding policy, the City will finance the unfunded actuarial accrued liability over the years
remaining for the closed period existing for each base in addition to the employer portion of all future
benefit accruals (i.e., the employer normal cost).
Changes in the Net Pension Liability
Balance at December 31, 2013
Changes for the year:
Service cost
Interest
Changes of benefit terms
Difference between expected and actual experience
Changes of assumptions
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of
employee contributions
Administrative expense
Other
Net changes
Balance at December 31, 2014
Increase (Decrease
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
$ 189,013,034 $ 156,512,946 $ 32,500,088
8,066,254 - 8,066,254
13,330,143 - 13,330,143
(50,055) - (50,055)
7,787,328 (7,787,328)
3,423,287 (3,423,287)
8,955,552 (8,955,552)
(5,231,094) (5,231,094) -
(93,479) 93,479
(7.685) 7.685
16,115,248 14,833,909 1,281,339
$ 205,128,282 $ 171,346,855 $ 33,781,427
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 7.0% as
well as what the City's net pension liability would be if it were calculated using a discount rate that is
1 - percentage -point lower (6.0%) or 1 -percentage -point higher (8.0%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
6.0% 7.0% 8.0%
City's net pension liability $ 68,293,934 $ 33,781,427 $ 5,901,232
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's Fiduciary Net Position is available in a separately -issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
102
V.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
C. EMPLOYEE RETIREMENT PLAN (CONTINUED)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended September 30, 2015, the City recognized pension expense of $7,510,781. At
September 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Differences between expected and actual
economic experience
Changes in actuarial assumptions
Difference between projected and actual
investment earnings
Contributions subsequent to the measurement
date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ (42,397)
1,600,283
5,964,543 -
$ 7,564,826 $ (42,397)
Deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date of $5,964,543 will be recognized as a reduction of the net pension liability for the
measurement year ending December 31, 2015 (i.e., recognized in the City's financial statements
September 30, 2016). 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 ended outflows (inflows)
Dec 31 of resources
2015
2016
2017
2018
2019
Thereafter
Total
Supplemental Death Benefits Fund
392,413
392,413
392,413
392,412
(7,658)
(4,107)
$ 1,557,886
The City also participates in the cost sharing multiple -employer defined benefit group -term life insurance
plan operated by TMRS known as the Supplemental Death Benefits Fund (SDBF). The City elected, by
ordinance, to provide group -term life insurance coverage to both current and retired employees. The City
may terminate coverage under and discontinue participation in this fund by adopting an ordinance before
November 1, of any year to be effective the following January 1.
103
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
V. OTHER INFORMATION (CONTINUED)
C. EMPLOYEE RETIREMENT PLAN (CONTINUED)
The death benefit for active employees provides a lump -sum payment approximately equal to the
employee's annual salary (calculated based on the employee's actual earnings, for the 12 -month period
preceding the month of death); retired employees are insured for $7,500; this coverage is an "other
postemployment benefit," or OPEB. The City offers supplemental death benefits to both active employees
and retirees for plan years 2015 and 2014.
The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation. The rate is equal to the cost of providing one-year term life insurance and represents 0.13% of
required contributions. The funding policy for the SDBF program is to assure that adequate resources are
available to meet all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term
life insurance during employees' entire careers.
The City also provides basic life and accidental death and dismemberment insurance for all eligible
employees at no cost. The benefit is equal to the employee's annual base earnings up to a maximum of
$100,000. This benefit is paid out to the beneficiaries in the event of the employee's death.
D. OTHER POST -EMPLOYMENT BENEFITS
In addition to the contributions made to the pension system as previously described, the City provides a
single employer plan for certain other post -employment benefits (OPEB) to its retirees. Other post -
employment benefits include access to medical and dental insurance for the retiree and the retiree's family.
All retirees who are eligible to receive pension benefits under any of the City's pension system are eligible
for other post -employment benefits. Retirees may also enroll eligible dependents under the medical and
dental plan(s) in which they participate. Eligible dependents of the retiree include a legally married spouse
and unmarried children dependent on the retiree for support. The children covered include children under
age 25 and eligible disabled children beyond 25 years of age, if covered prior to age 25. A surviving spouse
of a deceased retiree may continue medical coverage until the date the surviving spouse remarries. A
surviving spouse of a deceased retiree may continue dental coverage for 36 months by paying the entire
premium plus a 2 percent administrative fee. Other surviving dependents of a deceased retiree may continue
medical and dental coverage for 36 months by paying the entire premium plus a 2 percent administrative
fee.
The City is under no obligation, statutory or otherwise, to offer other post -employment benefits or to pay
any portion of the cost of other post -employment benefits to any retirees or their dependents. Allocation
of city funds to pay other post -employment benefits or to make other post -employment benefits available
is determined on an annual basis by the City Council as part of the budget approval process.
Group dental coverage is available to retirees and their eligible dependents. The retiree pays the full cost
of the dental premium.
104
V.
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
D. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation
Other post -employment benefits 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 and life insurance claims and premiums are reported in the Internal
Service Fund. On September 30, 2015 this fund had adequate resources to fund the net OPEB obligation.
On September 30, 2014 this fund had adequate resources to fund the OPEB obligation. A designation of
committed fund balance for the annual net OPEB obligation was established and reported on the Statement
of Net Position.
The City recognized the following liability in the financial statements at September 30, 2015. The City
performed an actuarial study during fiscal year 2013. The annual required contribution and OPEB liability
for fiscal year 2015 is based upon the September 30, 2014 biennial actuarial study.
The annual OPEB cost associated with the City's retiree benefits for the fiscal year ended
September 30, 2015, is as follows:
Percentage of annual OPEB cost contributed 39.55% 52.92%
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2015 and the preceding two years is as follows:
Three -Year Trend Information
Actual
2015 Amounts
Net OPEB
Fiscal Year Ending
2014 Total
Governmental
Proprietary
Total
Annual required contribution
$ 805,787 $
814,734
$ 111,100 $
925,834
Interest on net OPEB obligation
98,534
106,219
14,484
120,703
Adjustment to annual required contribution
(89,311)
(96,275)
(13,128)
(109,403)
Annual OPEB cost
815,010
824,678
112,456
937,134
Contributions made
(322,367)
(436,415)
(59,511)
(495,926)
Change in net OPEB obligation
492,643
388,263
52,945
441,208
Beginning net OPEB obligation
2,189,635
2,386,691
295,587
2,682,278
Net OPEB obligation
$ 2,682,278 $
2,774,954
$ 348,532 $
3,123,486
Percentage of annual OPEB cost contributed 39.55% 52.92%
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2015 and the preceding two years is as follows:
Three -Year Trend Information
105
Actual
% of Annual Cost
Net OPEB
Fiscal Year Ending
Annual OPEB Cost
Contribution Made
Contributed
Obligation
2013
$ 762,527
$ 228,450
30.0%
$ 2,189,635
2014
$ 815,010
$ 322,367
39.6%
$ 2,682,278
2015
$ 937,133
$ 495,926
52.9%
$ 3,123,486
105
v
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
OTHER INFORMATION (CONTINUED)
D. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation (Continued)
The funded status as of September 30, 2015, the most recent actuarial valuation date, is as follows:
Year Ended Actuarial Actuarial
Estimated Percentage
Annual of UAAL
September
Value of
Accrued
Funded
Covered
to Covered
30
Assets
Liability
UAAL(1)
Ratio
Payroll
Payroll
2013
$ -
$ 8,647,524
$ 8,647,524
0.0%
$46,982,319
18.4%
2014
$ -
$ 9,092,582
$ 9,092,582
0.0%
$48,391,789
18.8%
2015
$ -
$ 11,162,966
$11,162,966
0.0%
$52,956,052
21.1%
(1) UAAL — Unfunded Actuarial Accrued Liability (Excess)
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future. Actuarially determined amounts are subject to continual revision
as actual results are compared to past expectations and new estimates are made about the future. The
required schedule of funding progress immediately following the notes to the financial statements presents
multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over
time relative to the actuarial accrued liability for benefits. Calculations are based on the types of benefits
provided under the terms of the substantive plan at the time of each valuation and on the patter of sharing
of costs between the employer and plan members to that point. Actuarial calculations reflect a long-term
perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques
that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
assets. The actuarial cost method and significant assumptions underlying the actuarial calculation are as
follows:
Schedule of Actuarial Valuations
Actuarial Valuation Date
Actuarial Cost Methods
Amortization method
Remaining Amortization Period
Inflation rate
Assumed Rate of
Return on Investments
Projected salary increases
Post-retirement benefit
increases
October 1, 2012
Projected Unit Credit
Level Percent Open
30 years
3.5%
4.5%
3.0%
10% in 2011,
decreasing 0.5% per
year for ten years to
an ultimate trend of
5% in 2021
106
October 1, 2013
Projected Unit Credit
Level Percent Open
30 years
3.5%
4.5%
3.0%
10% in 2011,
decreasing 0.5% per
year for ten years to
an ultimate trend of
5% in 2021
October 1, 2014
Projected Unit Credit
Level Percent Open
30 years
3.5%
4.5%
3.0%
10% in 2011,
decreasing 0.5% per
year for ten years to
an ultimate trend of
5% in 2021
CITY OF ROUND ROCK, TEXAS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2015
V. OTHER INFORMATION (CONTINUED)
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. On May 1, 2010, the City entered into a new management
agreement with the operator for a period of five years. Under conditions set forth in the New Management
Agreement, the operator shall be paid a monthly base management fee. Additionally, the operator may earn
a variable fee based upon gross receipts of the golf course. Gross receipts from operations are agreed to be
used, in order, for monthly scheduled debt payments, payments to a capital reserve account, current
operating expenses, an operating reserve, the base management fee, repayment of any City capital
improvements, a 1 % distribution to the City, the variable fee and any unpaid obligations limited by available
gross receipts. Any remaining gross receipts are to be distributed to the City.
107
CITY OF ROUND ROCK, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
SEPTEMBER 30, 2015
(UNAUDITED)
See independent auditors' report.
108
Percentage
Actuarial Actuarial
Actuarial
Annual
of UAAL
Valuation Value of
Accrued
Funded
Covered
to Covered
Plan Date Assets
Liability
UAAL
Ratio
Payroll
Payroll
Other Post -employment benefits
-
-
9/30/2013 $ -
$ 8,647,524
$ 8,647,524
0.0% $
46,982,319
18.4%
9/30/2014 $ -
$ 9,092,582
$ 9,092,582
0.0% $
48,391,789
18.8%
9/30/2015 $ -
$ 11,162,966
$ 11,162,966
0.0% $
52,956,052
21.1%
See independent auditors' report.
108
CITY OF ROUND ROCK, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
SEPTEMBER 30, 2015
(UNAUDITED)
Measurement period ending December 31,
2014
Total pension liability
Service cost
$ 8,066,254
Interest (on the Total Pension Liability)
13,330,143
Changes of benefit terms
-
Difference between expected and actual experience
(50,055)
Change of assumptions
-
Benefit payments, including refunds of employee contributions
(5,231,094)
Net change in total pension liability
16,115,248
Total pension liability - beginning
189,013,034
Total pension liability - ending (a)
$ 205,128,282
Plan fiduciary net position
Contributions - employer
7,787,328
Contributions - employee
3,423,287
Net investment income
8,955,552
Benefit payments, including refunds of employee contributions
(5,231,094)
Administrative expense
(93,479)
Other
(7,685)
Net change in plan fiduciary net position
14,833,909
Plan fiduciary net position - beginning
156,512,946
Plan fiduciary net position - ending (b)
171,346,855
City net pension liability - ending (a) - (b)
$ 33,781,427
Plan fiduciary net position as a percentage of total pension
liability
83.53%
Covered employee payroll
48,839,040
City net pension liability as a percentage of covered employee
payroll
69.17%
Notes to Schedule:
1) No significant factors noted to disclose.
2) No significant methods and assumptions to disclose.
3) Schedule will be built out to 10 years.
See independent auditors' report.
109
CITY OF ROUND ROCK, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
SEPTEMBER 30, 2015
(UNAUDITED)
Fiscal year ending September 30,
Actuarially Determined Contribution
Contributions in relation to the actuarially determined
contribution
Contribution deficiency (excess)
Covered employee payroll
Contributions as a percentage of covered employee payroll
2014
$ 8,077,742
8,193,478
$ (115,736)
$ 51,159,783
16.02%
Notes to Schedule of Contributions
Valuation Date:
Actuarially determined contribution rates are calculated as of December 31 and become effective in January, 12
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 25 years
Asset Valuation Method 10 year smoothed market; 15% soft corridor
Inflation 3.0%
Salary Increases 3.50% to 12.00% including inflation
Investment Rate of Return 7.00%
Retirement Age Experience -based table of rates that are specific to the City's
plan of benefits. Last updated for the 2010 valuation pursuant
to an experience study of the period 2005-2009.
Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment
with male rates multiplied by 109% and female rates multiplied
by 103% and projected on a fully generational basis with scale
BB.
Other Information:
There were no benefit changes during the year. Schedule will be built out to ten years.
See independent auditors' report.
110
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds account for specific resources, other than major capital projects that are restricted to
expenditures for specified purposes.
NONMAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for financial resources to be used for major capital projects (other than
those financed by the proprietary fund). General obligation bonds are the primary funding source for capital
projects.
111
CITY OF ROUND ROCK, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2015
ASSETS
Cash and cash equivalents
Investments
Receivables -
Accounts and other
Loans
Accrued interest
Interfund
Restricted assets -
Cash and cash equivalents
Restricted investments
Restricted accrued interest
Total assets
LIABILITIES
AND FUND BALANCES
Liabilities -
Accounts payable
Accrued payroll
Interfund payables
Deferred revenue
Total liabilities
Fund balances -
Restricted - authorized construction
Restricted - hotel -motel tax
Restricted - public safety
Committed
Total fund balances
Total liabilities and
fund balances
Special
Revenue
Capital
Projects
Total
Nonmajor
Governmental
Funds
$ 3,388,021 $
571,913 $
3,959,934
9,690,609
1,637,096
11,327,705
442,992
547,914
990,906
-
58,000
58,000
14,281
2,463
16,744
70,124
1,500,000
1,570,124
-
248,818
248,818
-
1,249,754
1,249,754
-
1,165
1,165
$ 13,606,027 $
5,817,123 $
19,423,150
$ 194,084 $ 692,348 $ 886,432
60,117 - 60,117
- 11,758 11,758
- 776,173 776,173
254,201 1,480,279 1,734,480
-
2,881,856 2,881,856
10,934,476
- 10,934,476
1,274,293
- 1,274,293
1,143,057
1,454,988 2,598,045
13,351,826
4,336,844 17,688,670
$ 13,606,027 $ 5,817,123 $ 19,423,150
112
CITY OF ROUND ROCK, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2015
Revenues -
Taxes and franchise
Licenses, permits and fees
Charges for services
Fines and forfeitures
Intergovernmental
Hotel occupancy tax
Investment and other
Contributions
Total revenues
Expenditures -
Current -
General government
Public safety
Culture and recreation
Capital projects
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources /(uses) -
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances, October 1, 2014
Fund balances, September 30, 2015
Special
Revenue
$ 263,884
56,100
268,118
430,230
525,347
5,083,556
803,744
74,653
7,505,632
Capital
Projects
500,000
60,583
182,065
742.648
654,921 -
301,983 -
1,924,636 -
- 9,045,391
2,881,540 9,045,391
4,624,092 (8,302,743)
501,124 7,130,538
(4,958,803) (4,930,938)
(4,457,679)
166,413
13.185.413
2,199,600
(6,103,143)
10.439.987
$ 13,351,826 $ 4,336,844
113
Total
Nonma jor
Governmental
Funds
$ 263,884
56,100
268,118
430,230
1,025,347
5,083,556
864,327
256,718
8,248,280
654,921
301,983
1,924,636
9,045,391
11,926,931
(3,678,651)
7,631,662
(9,889,741)
(2,258,079)
(5,936,730)
23,625,400
$ 17,688,670
114
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds account for specific resources, other than major capital projects that are restricted to
expenditures for specified purposes.
Hotel — Motel Occupancy Tax Fund — To account for the levy and use of the hotel — motel bed tax received.
Proceeds from this tax are to be used toward tourism, community events, cultural enhancements and promotion of
the City.
Hotel — Motel Occupancy Venue Tax Fund — To account for the levy and use of the hotel — motel bed venue tax
received. Proceeds from this tax are to be used toward the construction and maintenance of a sports venue that will
prompt tourism and promotion of the City.
Police Fund — To account for amounts received through drug enforcement actions.
Municipal Court Fund — To account for amounts received through child safety fines, court security, and court
technology fees.
Landscape Fund — To account for amounts received through the City's landscape ordinance.
Community Development Block Grant Fund — To account for grant monies received for programs benefiting
persons of low to moderate income.
Library Fund — To account for contributions received designated to specific programs for the City's library.
Public Education & Government Fund — To account for amounts received for programs to provide public
education in government.
Traffic Safety Program — To account for amounts received to promote traffic safety programs.
115
CITY OF ROUND ROCK, TEXAS
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2015
ASSETS
Cash and cash equivalents
Investments
Receivables -
Accounts and other
Accrued interest
Interfund
Total assets
LIABILITIES
AND FUND BALANCES
Liabilities -
Accounts payable
Accrued payroll
Total liabilities
Fund balances -
Restricted - hotel -motel tax
Restricted - public safety
Committed
Total fund balances
Total liabilities and
fund balances
Hotel -Motel Hotel -Motel
Occupancy Occupancy Municipal
Tax Venue Tax Police Court
$ 2,072,927 $ 671,310 $ 174,496 $ 116,097
5,933,743 1,914,037 499,497 332,328
340,650 97,327 - -
8,831 2,803 754 497
$ 8,356,151 $ 2,685,477 $ 674,747 $ 448,922
$ 19,653 $ 27,382 $ 31,166 $ 3,419
10,307 49,810 - -
29,960 77,192 31,166 3,419
8,326,191 2,608,285 - -
- - 643,581 445,503
8,326,191 2,608,285 643,581 445,503
$ 8,356,151 $ 2,685,477 $ 674,747 $ 448,922
116
- - - - - 10,934,476
- - - - 185,209 1,274,293
272,666 - 13,414 856,977 - 1,143,057
272,666 - 13,414 856,977 185,209 13,351,826
$ 303,016 $ 5,015 $ 13,414 $ 934,076 $ 185,209 $ 13,606,027
117
Total
Nonmajor
Community
Public
Traffic
Special
Development
Education &
Safety
Revenue
Landscape
Block Grant
Library
Government
Program
Funds
$ 78,364
$ - $
3,469
$ 241,562 $
29,796 $
3,388,021
224,315
-
9,930
691,470
85,289
9,690,609
-
5,015
-
-
-
442,992
337
-
15
1,044
-
14,281
-
-
-
-
70,124
70,124
$ 303,016
$ 5,015 $
13,414
$ 934,076 $
185,209 $
13,606,027
$ 30,350
$ 5,015 $
-
$ 77,099 $
- $
194,084
-
-
-
-
-
60,117
30,350
5,015
-
77,099
-
254,201
- - - - - 10,934,476
- - - - 185,209 1,274,293
272,666 - 13,414 856,977 - 1,143,057
272,666 - 13,414 856,977 185,209 13,351,826
$ 303,016 $ 5,015 $ 13,414 $ 934,076 $ 185,209 $ 13,606,027
117
CITY OF ROUND ROCK, TEXAS
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2015
Revenues- .
Taxes and franchise
Licenses, permits and fees
Charges for services
Fines and forfeitures
Intergovernmental
Hotel occupancy tax
Investment and other
Contributions
Total revenues
Expenditures -
Current -
General government
Public safety
Culture and recreation
Total expenditures
Excess of revenues
over expenditures
Other financing sources /(uses) -
Transfers in
Transfers out
Total other financing
sources/(uses)
Net change in fund balances
Fund balances, October 1, 2014
Fund balances, September 30, 2015
Hotel -Motel Hotel -Motel
Occupancy Occupancy Municipal
Tax Venue Tax Police Court
268,118 - -
- 349,733 80,497
3,953,903 1,129,653 - -
34,023 759,121 3,425 1,916
- 66,848 - -
3,987,926 2,223,740 353,158 82,413
- - 74,781
- - 207,061 -
663,818 1,259,334 - -
663,818 1,259,334 207,061 74,781
3,324,108 964,406 146,097 7,632
11,780 419,220 - -
(4,595,303) (363,500) - -
(4,583,523) 55,720 - -
(1,259,415) 1,020,126 146,097 7,632
9,585,606 1,588,159 497,484 437,871
$ 8,326,191 $ 2,608,285 $ 643,581 $ 445,503
118
Community Public Traffic
Development Education & Safety
Landscape Block Grant Library Government Program
$ - $ - $ - $ 263,884 $
56,100 - - -
525,347 - -
1,297 - 55 3,816
5,400 - 2,405 -
62,797 525,347 2,460 267,700
54,793 525,347 - -
- - - 94,922
- - 1,484 -
54,793 525,347 1,484 94,922
8,004 - 976 172,778
Total
Nonmajor
Special
Revenue
Funds
$ 263,884
56,100
268,118
430,230
525,347
5,083,556
91 803,744
- 74,653
91 7,505,632
- 654,921
- 301,983
- 1,924,636
- 2,881,540
91 4,624,092
70,124 501,124
- (4,958,803)
- - - - 70,124 (4,457,679)
8,004 - 976 172,778 70,215 166,413
264,662 - 12,438 684,199 114,994 13,185,413
$ 272,666 $ - $ 13,414 $ 856,977 $ 185,209 $ 13,351,826
119
of W1
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120
NONMAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for financial resources to be used for major capital projects (other
than those financed by the proprietary fund). General obligation bonds are the primary funding source for
capital projects.
Streets and Drainage Fund - To account for street and drainage improvements in the Arterial II section
of the City. Financing is provided by general government resources.
2007 General Obligation Bonds Fund — To account for street, traffic safety and sidewalk improvement
projects, improvements and equipment for police, fire and municipal office facilities.
2004 General Obligation Bonds Fund — To account for street, traffic safety and sidewalk improvement
projects, improvements and equipment for police, fire and municipal office facilities.
Park Development Fund — To account for the development of and improvements to various neighborhood
parks. Financing is provided by general government resources.
2007 Certificates of Obligation Fund — To account for street, traffic safety and sidewalk improvement
projects, parks and recreation facilities, public safety facilities and improvements, municipal office facilities
and public works improvements.
2002 General Obligation Bonds Fund — To account for costs of public service and public safety facilities
and streets and related improvements.
Convention Center Complex Fund — To account for construction and expansion of convention center
complex. Funding is provided by the 1999 Series Hotel Tax Revenue Bonds, hotel tax revenues and private
contributions.
Round Rock Transportation and Economic Development Corporation Project Fund — To account for
construction and expansion of the City's transportation system. Funding is provided by the 2015 Series
Sales Tax Revenue Refunding Bonds, sales tax revenue, and private contributions.
Transit Fund — To account for construction of improvements related to delivering transit services to the
City. Funding is provided by intergovernmental revenues and general government resources.
Tourism Development Fund — To account for the development of tourism. Funding is provided by hotel
tax revenues.
Venue Tax Projects Fund — To account for the development of a multi-purpose sports venue. Funding is
provided by hotel tax revenues.
121
CITY OF ROUND ROCK, TEXAS
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2015
2007
2004
General
General 2007
Streets and Obligation
Obligation Park Series
Drainage Bonds
Bonds Development CO
. ASSETS
Cash and cash equivalents
$
287,247
$
-
$ -
$ 284,666
$
Investments
822,241
-
-
814,855
-
Receivables -
Accounts and other
47,914
-
-
Loans
-
-
-
-
Accrued interest
1,238
-
1,225
-
Interfund
-
-
-
-
Restricted assets -
Cash and cash equivalents
-
63,751
8,658
-
234
Restricted investments
-
18,912
700,027
-
-
Restricted accrued interest
-
-
-
-
-
Total assets
$
1,158,640
$
82,663
$ 708,685
$ 1,100,746
$
234
LIABILITIES
AND FUND BALANCES
Liabilities -
Accounts payable
$
1,056
$
53,150
$ 247,653
$ 15,411
$
234
Interfund payables
1 1,758
-
-
-
-
Deferred revenue
-
-
-
776,173
-
Total liabilities
12,814
53,150
247,653
791,584
234
Fund balances -
Restricted - authorized construction
-
29,513
461,032
-
-
Committed
1,145,826
-
-
309,162
-
Total fund balances
1,145,826
29,513
461,032
309,162
-
Total liabilities and
fund balances
$
1,158,640
$
82,663
$ 708,685
$ 1,100,746
$
234
122
$ 19,197 $ 30,697 $ 324,950 $ $ - $ - $ 692,348
- - - - 11,758
- - - - - - 776,173
19,197 30,697 324,950 - 1,480,279
7,316 149,539 1,854,463 379,993 - 2,881,856
- - - - - 1,454,988
7,316 149,539 1,854,463 379,993 - 4,336,844
$ 26,513 $ 180,236 $ 2,179,413 $ - $ 379,993 $ - $ 5,817,123
123
Round Rock
571,913
Transportation
Total
2002
and Economic
Nonmajor
General
Convention Development
Capital
Obligation
Center Corporation
Tourism Venue Tax Projects
Bonds
Complex Project Fund Transit
Development Projects Funds
$ 19,197 $ 30,697 $ 324,950 $ $ - $ - $ 692,348
- - - - 11,758
- - - - - - 776,173
19,197 30,697 324,950 - 1,480,279
7,316 149,539 1,854,463 379,993 - 2,881,856
- - - - - 1,454,988
7,316 149,539 1,854,463 379,993 - 4,336,844
$ 26,513 $ 180,236 $ 2,179,413 $ - $ 379,993 $ - $ 5,817,123
123
571,913
- -
- -
- 1,637,096
-
50000
- -
- 547,914
- -
58,000
-
- 58,000
_
_ _
- 2,463
- -
1,500,000
- -
- 1,500,000
- 46,598
31,307
- 98,270
- 248,818
26,513 133,388
89,616
- 281,298
- 1,249,754
- 250
490
- 425
- 1,165
$ 26,513 $ 180,236 $
2,179,413 $
- $ 379,993 $
- $ 5,817,123
$ 19,197 $ 30,697 $ 324,950 $ $ - $ - $ 692,348
- - - - 11,758
- - - - - - 776,173
19,197 30,697 324,950 - 1,480,279
7,316 149,539 1,854,463 379,993 - 2,881,856
- - - - - 1,454,988
7,316 149,539 1,854,463 379,993 - 4,336,844
$ 26,513 $ 180,236 $ 2,179,413 $ - $ 379,993 $ - $ 5,817,123
123
CITY OF ROUND ROCK, TEXAS
NONMAJOR CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
YEAR ENDED SEPTEMBER 30, 2015
Revenues -
Intergovernmental
Investment and other
Contributions
Total revenues
Expenditures -
Capital projects
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources /(uses) -
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
Fund balances, October 1, 2014
Fund balances, September 30, 2015
2007
Streets General
and Obligation
Drainage Bonds
6,208 (996)
6,208 (996)
2004
General
Obligation Park
Bonds Development
- 6,923
58,300
65,223
2007
Series
CO
299,795 640,446 58,300 35,321
299,795 640,446 58,300 35,321
6,208 (300,791) (640,446) 6,923 (35,321)
30,538 - - -
(4,557,272) (30,538) - (15)
- (4,526,734) (30,538) - (15)
6,208 (4,827,525) (670,984) 6,923 (35,336)
1,139,618 4,857,038 1,132,016 302,239 35,336
$ 1,145,826 $ 29,513 $ 461,032 $ 309,162 $ -
124
1,335,575 263,086 6,366,866 30,203 1,177 14,622 9,045,391
1,335,575 263,086 6,366,866 30,203 1,177 14,622 9,045,391
(1,335,583) (262,055) (5,697,361) (30,136)
350,000 6,750,000 -
(261,488) - - (81,625)
439 (14,620) (8,302,743)
7,130,538
(4,930,938)
(261,488)
350,000
Round Rock
2,199,600
Transportation
87,945
Total
2002
and Economic
1,604,387
Nonmajor
General
Convention
Development
Capital
Obligation
Center
Corporation
Tourism
Venue Tax Projects
Bonds
Complex
Project Fund
Transit Development
Projects Funds
500,000 $
- $ - $
- $ 500,000
(8)
1,031
45,740
67 1,616
2 60,583
-
-
123,765
- -
- 182,065
(8)
1,031
669,505
67 1,616
2 742,648
1,335,575 263,086 6,366,866 30,203 1,177 14,622 9,045,391
1,335,575 263,086 6,366,866 30,203 1,177 14,622 9,045,391
(1,335,583) (262,055) (5,697,361) (30,136)
350,000 6,750,000 -
(261,488) - - (81,625)
439 (14,620) (8,302,743)
7,130,538
(4,930,938)
(261,488)
350,000
6.750,000 (81,625) -
2,199,600
(1,597,071)
87,945
1,052,639 (111,761) 439
(14,620) (6,103,143)
1,604,387
61,594
801,824 111,761 379,554
14,620 10,439,987
$ 7,316 $
149,539 $
1,854,463 $ - $ 379,993 $
- $ 4,336,844
125
126
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES -BUDGET AND ACTUAL
GENERAL, DEBT SERVICE
AND NONMAJOR SPECIAL REVENUE FUNDS
127
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2014
Licenses, permits and fees -
Building permits
360,000
360,000
531,993
Variance -
391,161
Other permits
Budgeted Amounts
30,000
Positive
2014
34,373
Original
Final
Actual
(Negative)
Actual
Revenues -
Total licenses, permits, and fees
871,700
871,700
1,648,274
776,574
Taxes and franchise -
Other
-
122,000
-
59,320
Property tax
$ 25,150,000
$ 25,150,000
$ 25,416,409
$ 266,409
$ 24,241,012
Penalty and interest
75,000
75,000
80,666
5,666
89,097
Sales tax
49,400,000
49,400,000
50,715,636
1,315,636
51,346,720
Franchise
6,175,000
6,175,000
6,991,328
816,328
6,225,285
Bingo tax
28,000
28,000
37,250
9,250
35,480
Mixed drink tax
-
-
478,528
478,528
442,126
Total taxes and franchise
80,828,000
80,828,000
83,719,817
2,891,817
82,379,720
Licenses, permits and fees -
Building permits
360,000
360,000
531,993
171,993
391,161
Other permits
30,000
30,000
50,625
20,625
34,373
Fees
481,700
481,700
1,065,656
583,956
549,411
Total licenses, permits, and fees
871,700
871,700
1,648,274
776,574
974,945
Charges for services -
Trash collection fees
1,303,000
1,303,000
1,335,075
32,075
1,772,014
Swimming pool fees
574,000
574,000
449,066
(124,934)
521,514
Recreation program fees
1,864,000
1,864,000
2,253,399
389,399
2,039,979
Filing and reproduction fees
22,000
22,000
26,450
4,450
24,103
Other
122,000
122,000
181,320
59,320
141,457
Total charges for services
3,885,000
3,885,000
4,245,310
360,310
4,499,067
Fines and forfeitures 2,569,000 2,569,000 2,021,086 (547,914) 2,472,760
Intergovernmental 345,515 345,515 549,079 203,564 577,841
Investment and other -
Investment income
301,000
301,000
265,991
(35,009)
203,406
Other
2,502,200
2,502,200
4,227,095
1,724,895
3,412,349
Total investment and other
2,803,200
2,803,200
4,493,086
1,689,886
3,615,755
Total revenues
91,302,415
91,302,415
96,676,652
5,374,237
94,520,088
(CONTINUED)
128
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2014
Public safety
Variance -
Police -
Budgeted Amounts
Positive
2014
Original
Final
Actual
(Negative)
Actual
Expenditures -
Contractual services
1,561,256
1,550,256
1,291,709
258,547
Current -
Supplies and materials
1,728,833
1,708,233
1,329,215
379,018
General government
Other services and charges
1,133,009
1,128,109
973,392
154,717
Executive -
Capital outlay
690,604
727,104
806,849
(79,745)
Personnel services
$ 9,842,286
$ 9,852,785
$ 9,678,944
$ 173,841 $
9,493,694
Contractual services
4,665,505
4,643,006
3,805,586
837,420
3,998,472
Supplies and materials
645,838
662,738
608,013
54,725
727,811
Other services and charges
9,027,376
9,022,476
8,192,627
829,849
8,833,477
Capital outlay
93,000
93,000
102,155
(9,155)
79,699
Total executive
24,274,005
24,274,005
22,387,325
1,886,680
23,133,153
Judicial -
Capital outlay
130,000
121,190
125,538
(4,348)
Personnel services
774,607
774,607
724,868
49,739
733,668
Contractual services
70,853
70,853
53,357
17,496
56,796
Supplies and materials
19,570
19,570
11,103
8,467
13,623
Other services and charges
11,105
11,105
6,946
4,159
8,182
Total judicial
876,135
876,135
796,274
79,861
812,269
Total general government
25,150,140
25,150,140
23,183,599
1,966,541
23,945,422
Public safety
Police -
Personnel services
23,493,083
23,493,083
22,329,995
1,163,088
21,510,364
Contractual services
1,561,256
1,550,256
1,291,709
258,547
1,472,889
Supplies and materials
1,728,833
1,708,233
1,329,215
379,018
1,617,797
Other services and charges
1,133,009
1,128,109
973,392
154,717
939,880
Capital outlay
690,604
727,104
806,849
(79,745)
532,886
Total police
28,606,785
28,606,785
26,731,160
1,875,625
26,073,816
Fire -
Personnel services
14,623,983
14,623,983
14,452,908
171,075
13,968,433
Contractual services
366,985
341,985
335,017
6,968
308,769
Supplies and materials
819,988
853,798
970,663
(116,865)
969,941
Other services and charges
175,634
175,634
150,003
25,631
141,031
Capital outlay
130,000
121,190
125,538
(4,348)
111,530
Total fire
16,116,590
16,116,590
16,034,129
82,461
15,499,704
Total public safety
44,723,375
44,723,375
42,765,289
1,958,086
41,573,520
(CONTINUED)
129
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2014
Streets -
Variance -
Personnel services
Budgeted Amounts
2,050,392
1,815,908
Positive
2014
Contractual services
Original
Final
Actual
(Negative)
Actual
Expenditures - (cont'd)
800,637
785,037
783,108
1,929
707,348
Current - (cont'd)
45,153
30,153
12,557
17,596
8,530
Public works
296,500
327,100
560,931
(233,831)
433,552
Administration -
6,611,893
6,611,893
4,578,782
2,033,111
4,368,291
Personnel services
$ 3,292,551 $
3,292,551 $
3,253,278
$ 39,273 $
2,880,489
Contractual services
179,425
179,425
141,442
37,983
149,323
Supplies and materials
768,578
768,578
731,880
36,698
617,943
Other services and charges
570,999
570,999
829,378
(258,379)
654,115
Capital outlay
-
-
9,146
(9,146)
269,420
Total administration
4,811,553
4,811,553
4,965,124
(153,571)
4,571,290
Streets -
Personnel services
2,050,392
2,050,392
1,815,908
234,484
1,870,250
Contractual services
3,419,211
3,419,211
1,406,278
2,012,933
1,348,611
Supplies and materials
800,637
785,037
783,108
1,929
707,348
Other services and charges
45,153
30,153
12,557
17,596
8,530
Capital outlay
296,500
327,100
560,931
(233,831)
433,552
Total streets
6,611,893
6,611,893
4,578,782
2,033,111
4,368,291
Maintenance shop -
Personnel services
1,132,710
1,132,710
1,134,414
(1,704)
1,015,957
Contractual services
33,728
33,728
36,489
(2,761)
36,954
Supplies and materials
86,862
86,862
107,384
(20,522)
86,834
Other services and charges
25,816
25,816
26,959
(1,143)
9,326
Capital outlay
-
-
-
-
29,120
Total maintenance shop
1,279,116
1,279,116
1,305,246
(26,130)
1,178,191
Total public works
12,702,562
12,702,562
10,849,152
1,853,410
10,117,772
(CONTINUED)
130
CITY OF ROUND ROCK, TEXAS
GENERAL FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2014
Expenditures - (cont'd)
Current - (cont'd)
Culture and recreation
Library -
Personnel services
Contractual services
Supplies and materials
Other services and charges
Total library
Parks and recreation -
Personnel services
Contractual services
Supplies and materials
Other services and charges
Capital outlay
Total parks and recreation
Total culture and recreation
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses) -
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balance, October 1, 2014
Fund balance, September 30, 2015
Variance -
Budgeted Amounts Positive 2014
Original Final Actual (Negative) Actual
$ 1,871,979 $
1,871,979 $
1,896,201
$ (24,222) $
1,771,007
154,195
151,810
144,391
7,419
138,474
363,566
344,378
326,195
18,183
368,895
135,533
157,106
157,793
(687)
170,525
2,525,273
2,525,273
2,524,580
693
2,448,901
6,415,498
6,415,498
6,424,785
(9,287)
6,052,986
1,784,482
1,784,482
1,717,010
67,472
1,656,913
1,368,955
1,368,955
1,441,706
(72,751)
1,407,107
245,185
245,185
280,480
(35,295)
248,791
531,725
531,725
452,843
78,882
236,008
10,345,845
10,345,845
10,316,824
29,021
9,601,805
12,871,118
12,871,118
12,841,404
29,714
12,050,706
95,447,195
95,447,195
89,639,444
5,807,751
87,687,420
(4,144,780) (4,144,780) 7,037,208 11,181,988 6,832,668
850,000 850,000 1,327,490
477,490 727,699
3,290,000 3,290,000 3,290,000
- 2,930,783
- - (70,124)
(70,124) (10,347,382)
4,140,000 4,140,000 4,547,366
407,366 (6,688,900)
$ (4,780) $ (4,780)
131
11,584,574 $ 11,589,354 143,768
39,123,636 38,979,868
$ 50,708,210 $ 39,123,636
CITY OF ROUND ROCK, TEXAS
DEBT SERVICE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2015
132
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Taxes and franchise
$ 14,565,000
$ 14,565,000
$ 14,619,593 $
54,593
Investment and other
5,000
5,000
6,152
1,152
Total revenues
14,570,000
14,570,000
14,625,745
55,745
Expenditures
Debt service -
Principal retirement
13,362,821
13,362,821
13,919,366
(556,545)
Interest and fiscal charges
8,269,451
8,269,451
7,847,372
422,079
Issuance costs
472,675
472,675
472,675
-
Total expenditures
22,104,947
22,104,947
22,239,413
(134,466)
Excess (deficiency) of revenues
over expenditures
(7,534,947)
(7,534,947)
(7,613,668)
(78,721)
Other financing sources (uses) -
Issuance of refunding bonds
43,395,000
43,395,000
43,395,000
-
Issuanceofpremium
5,164,877
5,164,877
5,164,877
-
Payment to refunding agent
(48,955,991)
(48,955,991)
(48,955,991)
-
Transfers in
7,040,000
7,040,000
8,114,500
1,074,500
Transfers out
(31,000)
(31,000)
(31,000)
-
Total other financing sources (uses)
6,612,886
6,612,886
7,687,386
1,074,500
Net change in fund balances
$ (922,061)
$ (922,061)
73,718 $
995,779
Fund balance, October 1, 2014
2,278,062
Fund balance, September 30, 2015
$ 2,351,780
132
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
HOTEL -MOTEL OCCUPANCY TAX FUND
YEAR ENDED SEPTEMBER 30, 2015
133
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Hotel occupancy tax
$ 3,200,000 $
3,200,000 $
3,953,903
$ 753;903
Investment and other
20,000
20,000
34,023
14,023
Total revenues
3,220,000
3,220,000
3,987,926
767,926
Expenditures -
Current -
Culture and recreation -
Personnel services
267,337
267,337
262,380
4,957
Contractual services
279,287
279,287
237,830
41,457
Supplies and materials
20,780
20,780
9,749
11,031
Other services and charges
314,750
314,750
153,859
160,891
Total expenditures
882,154
882,154
663,818
218,336
Excess of revenues over expenditures
2,337,846
2;337,846
3,324,108
986,262
Other financing sources/(uses) -
Transfers in
-
-
11,780
11,780
Transfers out
(1,461,000)
(4,595,303)
(4,595,303)
-
Total other financing sources/(uses)
(1,461,000)
(4,595,303)
(4,583,523)
11,780
Net change in fund balances
$ 876,846 $
(2,257,457)
(1,259,415)
$ 998,042
Fund balance, October 1, 2014
9,585,606
Fund balance, September 30, 2015
$
8,326,191
133
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
HOTEL -MOTEL OCCUPANCY VENUE TAX FUND
YEAR ENDED SEPTEMBER 30, 2015
134
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Charges for services
$ 245,180 $
245,180 $
268,118
$ 22,938
Hotel occupancy tax
925,000
925,000
1,129,653
204,653
Investment and other
471,000
471,000
759,121
288,121
Contributions
51,000
51,000
66,848
15,848
Total revenues
1,692,180
1,692,180
2,223,740
531,560
Expenditures -
Current -
Culture and recreation -
Personnel services
797,388
797,388
758,401
38,987
Contractual services
468,875
468,875
252,518
216,357
Supplies and materials
242,900
242,900
197,082
45,818
Other services and charges
91,327
91,327
30,448
60,879
Capital outlay
50,000
50,000
20,885
29,115
Total expenditures
1,650,490
1,650,490
1,259,334
391,156
Excess of revenues over expenditures
41,690
41,690
964,406
922,716
Other financing sources/(uses) -
Transfers in
400,000
400,000
419,220
19,220
Transfers out
(363,500)
(363,500)
(363,500)
-
Total other financing sources/(uses)
36,500
36,500
55,720
19,220
Net change in fund balances
$ 78,190 $
78,190
1,020,126
$ 941,936
Fund balance, October 1, 2014
1,588,159
Fund balance, September 30, 2015
$
2,608,285
134
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
POLICE FUND
YEAR ENDED SEPTEMBER 30, 2015
135
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Fines and forfeitures
$ - $
- $
349,733
$ 349,733
Investment and other
15,000
15,000
3,425
(11,575)
Total revenues
15,000
15,000
353,158
338,158
Expenditures -
Current -
Public safety -
Supplies and materials
49,550
49,550
35,050
14,500
Capital outlay
338,700
338,700
172,011
166,689
Total expenditures
388,250
388,250
207,061
181,189
Net change in fund balances
$ (373,250) $
(373,250)
146,097
$ 519,347
Fund balance, October 1, 2014
497,484
Fund balance, September 30, 2015
$
643,581
135
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
MUNICIPAL COURT FUND
YEAR ENDED SEPTEMBER 30, 2015
136
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Fines and forfeitures
$ 99,000 $
99,000 $
80,497
$ (18,503)
Investment and other
100
100
1,916
1,816
Total revenues
99,100
99,100
82,413
(16,687)
Expenditures -
Current -
General government -
Supplies and materials
99,550
99,550
74,689
24,861
Other services and charges
2,400
2,400
92
2,308
Total expenditures
101,950
101,950
74,781
27,169
Net change in fund balances
$ (2,850) $
(2,850)
7,632
$ 10,482
Fund balance, October 1, 2014
437,871
Fund balance, September 30, 2015
$
445,503
136
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
LANDSCAPE FUND
YEAR ENDED SEPTEMBER 30, 2015
137
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Licenses, permits and fees
$ 35,000 $
35,000 $
56,100
$ 21,100
Investment and other
100
100
1,297
1,197
Contributions
1,000
1,000
5,400
4,400
Total revenues
36,100
36,100
62,797
26,697
Expenditures -
Current -
General government -
Supplies and materials
197,200
197,200
54,793
142,407
Total expenditures
197,200
197,200
54,793
142,407
Net change in fund balances
$ (161,100) $
(161,100)
8,004
$ 169,104
Fund balance, October 1, 2014
264,662
Fund balance, September 30, 2015
$
272,666
137
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED SEPTEMBER 30, 2015
138
Variance -
Budgeted Amounts
Positive
Original
Final
Actual (Negative)
Revenues -
Intergovernmental
$ 525,347 $
525,347 $
525,347 $ -
Total revenues
525,347
525,347
525,347 -
Expenditures -
Current -
General government -
Supplies and materials
29,776
29,776
29,776 -
Other services and charges
495,571
110,757
110,757 -
Capital outlay
-
384,814
384,814 -
Total expenditures
525,347
525,347
525,347 -
Net change in fund balances
$ - $
-
- $ -
Fund balance, October 1, 2014
-
Fund balance, September 30, 2015
$
-
138
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
LIBRARY FUND
YEAR ENDED SEPTEMBER 30, 2015
Revenues -
Investment and other
Contributions
Total revenues
Expenditures -
Current -
General government -
Supplies and materials
Total expenditures
Net change in fund balances
Fund balance, October 1, 2014
Fund balance, September 30, 2015
Variance -
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 10 $
10 $
55 $
45
3,000
3,000
2,405
(595)
3,010
3,010
2,460
(550)
2,400 2,400 1,484
2,400 2,400 1,484
$ 610 $ 610 976 $
139
12,438
$ 13,414
I
916
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
PUBLIC EDUCATION & GOVERNMENT FUND
YEAR ENDED SEPTEMBER 30, 2015
140
Variance -
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
Revenues -
Taxes and franchise
$ 240,000 $
240,000 $
263,884
$ 23,884
Investment and other
50
50
3,816
3,766
Total revenues
240,050
240,050
267,700
27,650
Expenditures -
Current -
Public safety -
Capital outlay
250,000
250,000
94,922
155,078
Total expenditures
250,000
250,000
94,922
155,078
Net change in fund balances
$ (9,950) $
(9,950)
172,778
$ 182,728
Fund balance, October 1, 2014
684,199
Fund balance, September 30, 2015
$
856,977
140
CITY OF ROUND ROCK, TEXAS
SPECIAL REVENUE FUND
SCHEUDLE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
TRAFFIC SAFETY PROGRAM FUND
YEAR ENDED SEPTEMBER 30, 2015
Variance -
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues -
Investment and other $ - $ - $ 91 $ 91
Total revenues - - 91 91
Expenditures -
Other financing sources/(uses) -
Transfers in - - 70,124 70,124
Total other financing sources/(uses) - - 70,124 70,124
Net change in fund balances $ - $ - 70,215 $ 70,215
Fund balance, October 1, 2014 114,994
Fund balance, September 30, 2015 $ 185,209
141
142
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
Agency funds are purely custodial (assets equal liabilities) and thus do not involve measurement of results of
operations.
143
CITY OF ROUND ROCK, TEXAS
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
PUBLIC IMPROVEMENT DISTRICTS
YEAR ENDED SEPTEMBER 30, 2015
Balances Balances
October 1, September 30,
2014 Additions Deductions 2015
Assets
Cash and cash equivalents $ 17,986 $ 106,568 $ 107,422 $ 17,132
Total assets $ 17,986 $ 106,568 $ 107,422 $ 17,132
Liabilities
Due to participants $ 17,986 $ 106,568 $ 107,422 $ 17,132
Total liabilities $ 17,986 $ 106,568 $ 107,422 $ 17,132
144
CAPITAL ASSETS
USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
145
Nq
.• f
146
CITY OF ROUND ROCK, TEXAS
SCHEDULE OF CAPITAL ASSETS — BY SOURCES
SEPTEMBER 30, 2015
Capital assets -
Land $ 45,751,142
Buildings and improvements 783,585,613
Equipment 67,538,831
Construction in progress 30,174,237
$ 927,049,823
Investment in capital assets from -
Capital Projects Funds -
General obligation bonds
$ 245,053,251
Federal grants
4,325,713
State grants
1,008,753
General Fund revenues
141,928,954
Special Revenue Fund revenues
220,510,350
Hotel Occupancy Tax revenues
36,195,635
Gifts
277,310,258
Special assessments
716,909
$ 927,049,823
147
CITY OF ROUND ROCK, TEXAS
SCHEDULE OF CAPITAL ASSETS -
BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2015
Function and Activity
Total
Land
General Government -
Control -
Executive
$ 1,092,044 $
-
Staff agencies -
Public works
15,420,766
293,740
Finance
13,537,473
-
Law
59,134
-
Planning and zoning
1,910,843
-
General government
42,579,613
13,373,756
Total staff agencies
73,507,829
13,667,496
Total general government
74,599,873
J3,667,496
Public safety -
Police protection
34,222,408
2,544,953
Fire protection
20,997,945
2,392,200
Inspection
170,880
-
Total public safety
55,391,233
4,937,153
Public works -
City shop
2,590,772
-
Streets and drainage
615,182,457
2,885,886
Total public works
617,773,229
2,885,886
Culture and recreation -
Library
8,300,836
1,506,429
Recreation
140,810,415
22,754,178
Total culture and recreation
149,111,251
24,260,607
Total capital assets
allocated to functions
896,875,586 $
45,751,142
Construction in progress
30,174,237
Total capital assets
$ 927,049,823
148
Buildings
Improvements
Machinery
and
Other Than
and
Improvements
Buildings
Equipment
$ 36,289
$ -
$ 1,055,755
3,035,343
2,748,881
9,342,802
280,667
1,239,834
12,016,972
-
-
59,134
31,230
1,734,794
144,819
19,408,734
6,203,096
3,594,027
22,755,974
11,926,605
25,157,754
22,792,263
11,926,605
26,213,509
18,742,747
79,569
12,855,139
7,615,386
420,187
10,570,172
-
-
170,880
26,358,133
499,756
23,596,191
333,817
1,332,663
924,292
4,071,071
605,179,721
3,045,779
4,404,888
606,512,384
3,970,071
4,208,093
21,939
2,564,375
76,049,514
30,812,038
11,194,685
80,257,607
30,833,977
13,759,060
$ 133,812,891 $ 649,772,722 $ 67,538,831
149
Function and Activity
General Government -
Control -
Executive
Staff Agencies -
Public works
Finance
Law
Planning and zoning
General government
Total staff agencies
CITY OF ROUND ROCK, TEXAS
SCHEDULE OF CHANGES IN CAPITAL ASSETS -
BY FUNCTION AND ACTIVITY
YEAR ENDED SEPTEMBER 30, 2015
Capital Assets
October 1,
2014
$ 1,028,705 $
Capital Assets
Retirements/ September 30,
Additions Adjustments 2015
88,300 $ (24,961) $ 1,092,044
15,415,549
363,586
(358,369)
15,420,766
12,845,506
741,723
(49,756)
13,537,473
59,134
-
-
59,134
1,910,843
-
-
1,910,843
42,068,822
522,072
(11,281)
42,579,613
72,299,854
1,627,381
(419,406)
73,507,829
Total general government 73,328,559 1,715,681 (444,367) 74,599,873
Public safety -
Police protection
34,426,229
1,500,372
(1,704,193)
34,222,408
Fire protection
20,649,333
899,285
(550,673)
20,997,945
Inspection
173,677
18,758
(21,555)
170,880
Total public safety
55,249,239
2,418,415
(2,276,421)
55,391,233
32,423,921
(16,127,410)
30,174,237
Public works -
Total capital assets $
892,705,531 $
53,847,148 $
City shop
2,543,951
51,084
(4,263)
2,590,772
Streets and drainage
605,687,418
10,413,877
(918,838)
615,182,457
Total public works
608,231,369
10,464,961
(923,101)
617,773,229
Culture and recreation -
Library
7,075,860
1,250,756
(25,780)
8,300,836
Recreation
134,942,778
5,573,414
294,223
140,810,415
Total culture and recreation
142,018,638
6,824,170
268,443
149,111,251
Construction in progress
13,877,726
32,423,921
(16,127,410)
30,174,237
Total capital assets $
892,705,531 $
53,847,148 $
(19,502,856) $
927,049,823
150
CITY OF ROUND ROCK, TEXAS
STATISTICAL SECTION
(UNAUDITED)
This part of the City of Round Rock's comprehensive annual 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
Financial Trends
Page
These schedules contain trend information to help the reader understand how the 152
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 162
local revenue sources, the property and sales tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the 170
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 177
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 180
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 comprehensive
annual financial reports for the relevant year.
151
CITY OF ROUND ROCK, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Governmental activities -
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities -
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government -
Net investment in capital assets
Restricted
Unrestricted
2006 2007 2008 2009
$ 218,160,338 $ 207,796,040 $ 232,391,397 $ 266,247,218
77,194,520 122,586,350 112,917,770 98,598,163
74,382,554 80,260,007 81,136,188 77,469,398
$ 369,737,412 $ 410,642,397 $ 426,445,355 $ 442,314,779
$ 184,270,630 $ 203,541,558 $ 219,607,998 $ 217,990,010
17,534,251 21,93 8,288 14,376,789 15,571,119
44,027,327 46,122,809 53,228,109 66,770,620
$ 245,832,208 $ 271,602,655 $ 287,212,896 $ 300,331,749
$ 402,430,968 $ 411,337,598 $ 451,999,395 $ 484,237,228
94,728,771 144,524,638 127,294,559 114,169,282
118,409,881 126,3 82, 816 134,364,297 144,240,018
Total primary government activities net position $ 615,569,620 $ 682,245,052 $ 713,658,251 $ 742,646,528
152
2010 2011 2012 2013 2014 2015
$ 274,037,741 $ 282,782,272 $ 301,091,350 $ 349,629,681 $ 292,532,167 $ 274,460,885
96,271,490 98,064,518 92,310,664 55,641,097 119,539,523 132,076,155
80,169,689 81,720,938 81,643,640 79,361,189 72,739,676 59,316,429
$ 450,478,920 $ 462,567,728 $ 475,045,654 $ 484,631,967 $ 484,811,366 $ 465,853,469'
$ 210,960,047 $ 213,536,543 $ 212,883,311 $ 214,178,908 $ 221,062,599 $ 228,866,895
9,125,932 11,984,130 13,994,028 6,868,062 7,764,750 19,215,972
85,930,757 95,693,542 104,985,805 116,650,981 118,105,044 110,519,279
$ 306,016,736 $ 321,214,215 $ 331,863,144 $ 337,697,951 $ 346,932,393 $ 358,602,146
$ 484,997,788 $ 496,318,815 $ 513,974,661 $ 563,808,589 $ 513,594,766 $ 503,327,780
105,397,422 110,048,648 106,304,692 62,509,159 127,304,273 150,292,127
166,100,446 177,414,480 186,629,445 196,012,170 190,844,720 170,835,708
$ 756,495,656 $ 783,781,943 $ 806,908,798 $ 822,329,918 $ 831,743,759 $ 824,455,615
153
CITY OF ROUND ROCK, TEXAS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Business -type activities -
Water and sewer utility
2006
2007
2008
2009
Expenses:
150,029
167,906
185,659
182,521
Governmental activities -
27,933,247
29,443,110
33,218,247
37,360,532
General government
$ 21,634,710 $
21,823,415 $
24,154,706 $
24,856,934
Public safety
27,724,273
28,879,882
34,541,169
37,104,418
Public works
24,804,177
27,114,039
28,727,136
27,608,721
Culture and recreation
11,714,066
11,905,643
12,842,679
14,433,602
Interest on long-term debt
7,856,260
8,733,873
9,353,621
9,410,388
Issuance costs
-
-
-
-
Total governmental activities expenses
93,733,486
98,456,852
109,619,311
113,414,063
Business -type activities -
Water and sewer utility
27,783,218
29,275,204
33,032,588
37,178,011
Golf course
150,029
167,906
185,659
182,521
Total business -type activities expenses
27,933,247
29,443,110
33,218,247
37,360,532
Total primary government expenses
121,666,733
127,899,962
142,837,558
150,774,595
Program revenues:
Governmental activities -
Charges for services -
General government
2,021,621
1,766,153
1,941,519
3,820,455
Public safety
2,371,379
2,851,787
3,197,900
3,646,892
Public works
1,139,836
1,337,371
1,295,783
877,676
Culture and recreation
2,408,710
2,489,438
2,721,570
2,503,925
Operating grants and contributions
1,057,821
931,269
1,097,733
1,064,411
Capital grants and contributions
12,548,335
17,322,551
3,825,335
14,083,063
Total governmental activities program revenues
21,547,702
26,698,569
14,079,840
25,996,422
Business -type activities -
Charges for services -
Water and sewer utility
30,566,103
30,968,868
35,060,024
37,802,909
Golf course
476,082
476,025
474,353
485,972
Capital grants and contributions
19,706,224
24,381,521
13,967,314
12,490,491
Total business -type activities program revenues
50,748,409
55,826,414
49,501,691
50,779,372
Total primary government program revenues
72,296,111
82,524,983
63,581,531
76,775,794
Net (expense) revenue -
Governmental activities
(72,185,784)
(71,758,283)
(95,539,471)
(87,417,641)
Business -type activities
22,815,162
26,383,304
16,283,444
13,418,840
Total primary government net expense
(49,370,622)
(45,374,979)
(79,256,027)
(73,998,801)
154
2010
2011
2012
2013
2014
2015
$ 27,064,905
$ 28,487,648
$ 30,406,768
$ 27,923,780 $
28,050,936 $
27,917,481
36,688,203
39,140,352
40,944,978
41,842,363
45,283,826
45,236,987
29,053,781
28,285,749
29,373,310
32,574,926
36,079,228
37,074,023
14,260,057
14, 514,561
15,069,456
15,702,435
18,074,001
19,252,5 57
9,304,116
8,608,399
7,144,755
6,915,172
8,478,700
8,118,490
-
-
-
-
-
942,596
116,461,062
119,036,709
122,939,267
124,959,276
135,966,691
138,542,134
37,623,591
38,602,875
38,842,107
42,657,792
44,605,155
46,069,705
192,595
174,149
157,135
141,153
71,090
144,993
37,816,186
38,777,024
38,999,242
42,798,945
44,676,245
46,214,698
154,277,248
157,813,733
161,93 8,509
167,75 8,221
180,642,936
184,756,832
3,927,379
3,519,857
3,104,355
2,822,715
2,559,380
2,168,842
4,150,577
4,295,283
4,215,243
3,248,867
2,652,480
2,461,782
836,169
2,032,530
2,760,386
2,942,382
726,785
749,524
2,531,989
3,136,422
2,737,969
2,844,842
3,032,109
3,288,970
932,879
1,130,628
1,135,386
829,367
1,042,301
1,199,574
7,634,857
9,257,876
9,782,214
5,310,541
5,901,038
4,234,018
20,013,850
23,372,596
23,735,553
17,998,714
15,914,093
14,102,710
37,512,213
44,922,715
43,327,656
43,094,185
43,705,878
45,898,090
349,424
431,413
480,116
522,169
382,081
320,846
6,014,265
9,518,890
7,533,264
6,514,369
10,226,302
17,742,568
43,875,902
54,873,018
51,341,036
50,130,723
54,314,261
63,961,504
63,889,752
78,245,614
75,076,589
68,129,437
70,228,354
78,064,214
(96,447,212)
(95,664,113)
(99,203,714)
(106,960,562)
(120,052,598)
(124,439,424)
6,059,716
16,095,994
12,341,794
7,331,778
9,638,016
17,746,806
(90,387,496)
(79,568,119)
(86,861,920)
(99,628,784)
(110,414,582)
(106,692,618)
(CONTINUED)
155
CITY OF ROUND ROCK, TEXAS
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
General revenues and other changes
in net position:
Governmental activities-
Taxes -
Property
Franchise
Sales
Hotel occupancy
Public service
Investment earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities -
Investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
Change in net position:
Governmental activities
Business -type activities
Total primary government
7nAr 7nn7 7nn4 Mno
$ 21,632,249 $ 24,409,535 - $ 27,560,939 $ 29,867,765
4,990,439
5,499,222
5,748,333
6,213,263
64,999,744
67,924,755
64,038,208
58,777,622
2,268,619
2,838,689
2,939,352
2,394,145
227,784
257,384
286,179
315,739
7,232,842
9,912,657
8,220,228
4,112,703
122,499
152,805
257,495
-
1,840,189
1,668,221
2,291,695
1,605,828
103,314,365
112,663,268
111,342,429
103,287,065
2,363,692
1,055,364
1,618,492
1,305,841
48,610
-
-
-
(1,840,189)
(1,668,221)
(2,291,695)
(1,605,828)
572,113
(612,857)
(673,203)
(299,987)
103,886,478
112,050,411
110,669,226
102,987,078
31,128,581
40,904,985
15,802,958
15,869,424
23,387,275
25,770,447
15,610,241
13,118,853
$ 54,515,856 $ 66,675,432 $ 31,413,199 $ 28,988,277
156
,)A 11) 7n11 7n 17 11) 1'2 71)7A '11)1c
$ 33,040,085
5,934,540
59,545,288
2,291,326
327,723
1,365,802
2,106,5 89
$ 33,578,991 $ 34,379,529 $ 34,979,578 $ 36,502,409
6,221,790
6,326,735
5,952,712
6,460,448
61,734,643
63,305,917
66,216,447
68,462,292
2,684,046
3,252,542
4,140,920
4,646,208
352,159
316,320
347,846
477,606
988,222
1,635,630
2,026,554
1,882,139
2,193,070
2,464,967
2,882,818
1,800,895
$ 39,932,573
7,255,212
67,620,848
5,083,556
515,778
5,020,786
3,740,000
104,611,353 107,752,921 111,681,640 116,546,875 120,231,997 129,168,753
1,731,860 1,294,555 772,102 1,385,847 1,397,321 866,927
(2,106,589) (2,193,070) (2,464,967) (2,882,818) (1,800,895) (3,740,000)
(374,729) (898,515) (1,692,865) (1,496,971) (403,574) (2,873,073)
104,23 6,624 106,854,406 109,98 8,775 115,049,904 119,828,423 126,295,680
8,164,141 12,088,808 12,477,926 9,586,313 179,399 4,729,329
5,684,987 15,197,479 10,648,929 5,834,807 9,234,442 14,873,733
$ 13,849,128 $ 27,286,287 $ 23,126,855 $ 15,421,120 $ 9,413,841 $ 19,603,062
(CONTINUED
157
CITY OF ROUND ROCK, TEXAS
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2006 2007 2008 2009
Nonspendable-
Inventories, prepaids and other
$ -
$ -
$ -
$ -
Restricted for -
Debt service
3,200,508
3,058,395
3,431,063
2,887,281
Authorized construction
72,754,038
116,277,182
104,541,402
90,000,407
Hotel -motel tax
4,153,604
5,191,941
6,368,822
7,005,856
Public safety
697,587
564,391
521,354
497,243
Community development
19,181
19,181
-
-
Committed to -
Authorized construction
29,813,838
32,755,858
34,543,559
31,250,099
Drainage
-
-
-
-
Public education
-
-
-
-
Landscape improvements
66,802
388,111
788,440
574,093
Annexation fees
60,335
62,340
158,190
158,886
Library
14,269
14,815
15,164
14,302
Arterial II
-
-
-
-
Park Improvements
-
-
-
-
Unassigned
35,628,308
36,689,422
36,415,765
36,785,055
Total governmental funds
$ 146,408,470
$ 195,021,636
$ 186,783,759
$ 169,173,222
158
2010
2011
2012
2013
2014
2015
$ -
$ 288,758
$ 321,044
$ 375,087
$ 397,271
$ 430,821
1,944,761
2,238,270
2,301,340
2,415,427
2,278,062
2,351,780
88,064,514
88,021,123
81,424,206
43,630,036
106,539,802
117,515,606
7,314,509
8,114,729
8,927,441
9,549,082
11,173,765
10,934,476
862,273
1,024,405
937,105
1,249,246
1,050,349
1,274,293
33,739,591
35,731,396
35,645,374
31,856,334
26,570,024
24,696,122
-
573,809
1,179,777
1,570,994
-
-
-
862,066
872,484
826,282
684,199
856,977
571,705
542,779
248,771
283,518
264,662
272,666
158,990
39,163
39,190
39,211
-
-
11,176
11,239
6,625
10,530
12,438
13,414
-
-
-
-
-
1,145,826
-
-
-
-
-
309,162
36,857,155
36,238,854
36,912,381
38,604,781
38,726,365
50,277,389
$ 169,524,674
$ 173,686,591
$ 168,815,738
$ 130,410,528
$ 187,696,937
$ 210,078,532
159
CITY OF ROUND ROCK, TEXAS
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2006
2007
2008
2009
Revenues -
Taxes and franchise
$ 91,642,025
$ 97,889,771
$ 97,759,902
$ 95,097,743
Licenses, permits and fees
970,570
1,585,091
1,593,711
1,053,959
Charges for services
4,311,153
3,569,077
3,895,886
3,757,215
Fines and forfeitures
1,696,474
1,849,523
2,014,379
2,057,353
Intergovernmental
1,165,978
2,578,680
1,317,506
1,232,594
Hotel occupancy tax
2,362,656
2,986,136
2,939,352
2,394,145
Investment and other
8,640,878
11,424,988
9,977,103
8,406,513
Contributions
165,670
826,807
2,094,375
1,729,637
Total revenues
110,955,404
122,710,073
121,592,214
115,729,159
Expenditures -
General government
22,163,330
22,105,269
22,858,670
22,640,290
Public safety
25,785,545
28,456,892
32,949,754
34,099,601
Public works
8,506,994
8,719,701
9,360,999
10,065,601
Culture and recreation
10,021,489
10,711,796
11,693,213
11,813,663
Capital projects
36,896,924
36,542,219
53,298,559
38,798,458
Debt service -
Principal retirement
7,090,383
11,940,981
10,448,506
10,942,820
Interest and fiscal charges
7,698,552
7,052,015
9,060,707
9,290,481
Other charges
-
3,994,688
-
-
Total expenditures
118,163,217
129,523,561
149,670,408
137,650,914
Excess of revenues
over(under)expenditures
(7,207,813)
(6,813,488)
(28,078,194)
(21,921,755)
Other financing sources (uses) -
Proceeds from sale of capital assets
1,423,235
-
-
-
Issuance of lease
600,000
3,250,000
750,000
1,505,390
Issuance of debt
6,201,378
80,110,000
16,798,622
-
Premium on bonds issued
-
573,448
-
-
Payment to refunded bond escrow agent
-
(30,175,015)
-
-
Transfers in
29,387,915
45,681,150
26,429,303
33,385,722
Transfers out
(27,547,726)
(44,012,929)
(24,137,608)
(30,579,894)
Total other financing sources (uses)
10,064,802
55,426,654
19,840,317
4,311,218
Net change in fund balances
$ 2,856,989
$ 48,613,166
$ (8,237,877)
$ (17,610,537)
Capital outlay including amounts reported
under departmental current expenditures
$ 36,896,924
$ 36,542,219
$ 53,298,559
$ 40,000,535
Debt service as a percentage of
noncapital expenditures
18.2%
20.4%
20.2%
20.7%
2010 2011 2012 2013 2014 2015
$ 98,990,298 $ 101,914,916 $ 104,318,270 $ 107,417,612 $ 111,592,909 $ 115,508,506
907,705
2,155,358
3,094,983
3,567,437
1,243,857
1,704,374
3,767,565
3,985,634
4,198,815
4,436,779
4,645,527
4,513,428
2,260,401
2,492,261
2,814,987
3,208,637
2,673,670
2,451,316
3,953,092
3,302,276
2,158,621
1,225,195
3,044,095
1,679,993
2,291,326
2,684,046
3,252,543
4,140,920
4,646,208
-5,083,556
3,652,629
3,786,134
2,635,613
3,565,842
4,783,567
7,207,478
972,641
3,282,812
5,858,346
2,567,327
3,152,100
600,919
116,795,657
123,603,437
128,332,178
130,129,749
135,781,933
138,749,570
22,874,155
24,346,515
25,332,577
23,783,735
24,375,794
23,838,520
34,539,844
36,556,318
37,646,821
39,475,791
42,306,841
43,067,272
9,565,430
8,797,799
9,791,618
11,852,443
11,291,499
12,328,284
11,157,995
11,336,602
11,958,179
12,440,948
13,775,702
14,766,040
21,184,635
22,981,288
39,916,082
65,523,775
38,694,239
33,476,554
11,456,810
11, 815,968
13,040,604
12, 852,059
14,395,697
13,919,366
9,097,057
8,072,821
6,825,065
6,797,281
7,372,652
7,847,372
1,327,989
247,433
256,373
98,630
862,888
942,596
121,203,915
124,154,744
144,767,319
172,824,662
153,075,312
150,186,004
(4,408,258)
(551,307)
(16,435,141)
(42,694,913)
(17,293,379)
(11,436,434)
1,310,569
1,372,023
500,000
1,000,000
1,450,000
2,000,000
18,575,000
16,145,000
27,295,000
8,615,000
77,350,000
70,665,000
1,387,593
223,248
1,317,881
-
6,161,887
6,369,020
(19,682,356)
(16,083,357)
(20,616,784)
(8,509,756)
(11,682,994)
(48,955,991)
24,459,490
27,752,457
34,447,300
49,547,722
32,984,237
27,070,865
(21,290,586)
(24,696,147)
(31,379,109)
(46,363,263)
(31,683,342)
(23,330,865)
4,759,710
4,713,224
11,564,288
4,289,703
74,579,788
33,818,029
$ 351,452 $ 4,161,917 $ (4,870,853) $ (38,405,210) $ 57,286,409 $ 22,381,595
$ 22,684,310 $ 23,932,697 $ 41,282,292 $ 67,059,226 $ 38,644,877 $ 35,385,140
20.9% 19.8% 19.2% 18.6% 19.0% 19.51%
161
CITY OF ROUND ROCK, TEXAS
ACTUAL AND TAXABLE ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Source: Williamson 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.
162
Actual Assessed Value
Less:
Total
Fiscal
Real
Personal
Tax Exempt
Taxable Assessed
Total Direct
Year
Property
Property
Total
Property
Valuation
Tax Rate
2006
5,199,431,315
749,984,473
5,949,415,788
175,933,206
5,773,482,582
0.3711
2007
5,929,650,836
783,793,471
6,713,444,307
198,475,704
6,514,968,603
0.3711
2008
6,954,733,744
852,374,495
7,807,108,239
303,674,692
7,503,433,547
0.3652
2009
7,623,482,042
957,142,673
8,580,624,715
386,156,997
8,194,467,718
0.3652
2010
7,843,041,122
880,412,269
8,723,453,391
401,156,676
8,322,296,715
0.3966
2011
7,581,182,068
831,489,169
8,412,671,237
395,522,799
8,017,148,438
0.4173
2012
7,654,036,144
850,976,608
8,505,012,752
408,354,355
8,096,658,397
0.4232
2013
7,837,387,397
947,316,007
8,784,703,404
493,653,067
8,291,050,337
0.4204
2014
8,195,046,631
1,062,520,327
9,257,566,958
567,914,523
8,689,652,435
0.4195
2015
9,193,035,124
1,030,331,518
10,223,366,642
589,210,216
9,634,156,426
0.4146
Source: Williamson 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.
162
CITY OF ROUND ROCK, TEXAS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE
LAST TEN FISCAL YEARS
City Direct Rates
Fiscal Operating Debt Service
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.2089
0.2164
0.1960
0.2171
0.2491
0.2665
0.2751
0.2830
0.2800
0.2628
0.1622
0.1547
0.1692
0.1481
0.1475
0.1508
0.1481
0.1373
0.1395
0.1518
Source: Williamson County Tax Office
163
Overlapping Rates
Round Rock
Total
Independent
Direct and
Total
School
Williamson
Special
Overlapping
Direct
District
County
Districts
Rates
0.3711
1.8334
0.4997
0.0200
2.7242
0.3711
1.6406
0.4997
0.0200
2.5314
0.3652
1.3238
0.4891
0.0200
2.1981
0.3652
1.3324
0.4683
0.1154
2.2813
0.3966
1.3800
0.4900
0.1146
2.3812
0.4173
1.3800
0.4900
0.1151
2.4024
0.4232
1.3350
0.4877
0.1148
2.3607
0.4203
1.3800
0.4890
0.1151
2.4044
0.4195
1.3674
0.4890
0.1149
2.3908
0.4146
1.3375
0.4865
0.1142
2.3528
163
CITY OF ROUND ROCK, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2015
Source: Williamson Central Appraisal District
164
2006
% of Total
Net Assessed
Rank Valuation
2
1
5
6
3
4
7
8
9
10
0.371%
1.065
1.409
0.527
0.505
0.906
0.667
0.462
0.449
0.402
/Aj/7o
Net
% of Total
Net
Assessed
Net Assessed
Assessed
Name of Taxpayer
Valuation
Rank
Valuation
Valuation
Dell Computer Holdings, LP $
271,831,118
1
2.822% $
21,410,135
CPG Round Rock, LP
137,998,674
2
1.432
-
Seton Healthcare
106,340,261
3
1.104
Dell Computer Corp.
74,321,793
4
0.771
61,461,287
Baltgem Development Corp.
73,283,114
5
0.761
81,367,674
Columbia/St. David Healthcare
63,124,215
6
0.655
30,424,267
CMF 15 Portfolio, LLC
61,751,700
7
0.641
-
Oncor Electric Delivery Co.
43,434,180
8
0.451
-
Las Brisas Luxury Apartment Homes, LLP
42,000,000
9
0.436
-
FST La Frontera LLC
39,971,279
10
0.415
29,160,793
DuPont Photomasks, Inc.
-
-
52,318,894
TXU Electric Delivery Co.
-
-
38,485,897
Drever, Limestone, LP
-
-
26,674,126
Lodge at Warner Ranch, LP
-
-
25,948,645
Southwestern Bell Telephone Co.
-
-
23,234,528
A & B Texas, LLC
-
-
22,736,144
$
914,056,334
9.488% $
413,222,390
Source: Williamson Central Appraisal District
164
2006
% of Total
Net Assessed
Rank Valuation
2
1
5
6
3
4
7
8
9
10
0.371%
1.065
1.409
0.527
0.505
0.906
0.667
0.462
0.449
0.402
/Aj/7o
CITY OF ROUND ROCK, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
165
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
2006
21,432,056
21,260,880
99.20
1,009
21,261,889
99.21
2007
24,021,335
23,862,022
99.34
1,496
23,863,518
99.34
2008
27,220,757
27,194,031
99.90
1,187
27,195,218
99.91
2009
29,931,048
29,745,017
99.38
5,149
29,750,166
99.40
2010
33,001,196
32,822,350
99.46
(36,681)
32,785,669
99.35
2011
33,469,184
33,330,239
99.58
(35,814)
33,294,425
99.48
2012
34,255,559
34,161,567
99.73
(34,336)
34,127,231
99.63
2013
34,865,783
34,717,536
99.57
(35,199)
34,682,337
99.47
2014
36,452,223
36,281,479
99.53
83,709
36,365,188
99.76
2015
39,792,302
39,697,745
99.76
-
39,697,745
99.76
165
CITY OF ROUND ROCK, TEXAS
TAMABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
Retail
Wholesale
Year
Trade
Trade
Services
Manufacturing
Utilities
2005
1,022,046,302
1,164,889,028
271,930,962
23,056,605
13,835,732
2006
1,204,017,407
1,286,347,769
284,232,565
20,117,751
15,736,435
2007
1,145,110,919
1,591,303,790
304,759,747
27,335,653
18,904,449
2008
1,169,341,432
1,437,462,827
331,204,107
20,237,658
16,645,969
2009
1,103,261,058
1,228,096,597
323,957,885
18,637,403
16,313,752
2010
1,076,705,717
1,364,186,925
331,286,488
20,916,060
17,788,882
2011
1,105,890,841
1,364,773,284
345,856,874
20,631,380
20,631,380
2012
1,223,316,405
1,191,461,753
380,227,320
18,545,355
26,448,906
2013
1,395,609,347
1,185,606,648
404,494,748
20,223,143
29,352,089
2014
1,529,221,667
1,118,802,621
434,765,636
19,026,573
34,382,247
$ 11,974,521,095 $
12,932,931,242
$ 3,412,716,332 $
208,727,581
$ 210,039,841
167
City
Direct
State
Finance,
Sales Tax
Sales Tax
Over -
Construction
Insurance
Other
Total
Rate
Rate
lapping
$
$
$
$
26,144,588
1,323,272
180,746,146
2,703,972,635
2.0%
6.25%
8.25%
26,619,939
1,410,360
62,544,068
2,901,026,294
2.0%
6.25%
8.25%
43,424,237
1,782,201
-
3,132,620,996
2.0%
6.25%
8.25%
43,124,472
1,674,015
-
3,019,690,480
2.0%
6.25%
8.25%
30,415,221
2,198,134
-
2,722,880,050
2.0%
6.25%
8.25%
46,025,144
2,114,837
-
2,859,024,053
2.0%
6.25%
8.25%
61,424,806
2,996,141
-
2,922,204,706
2.0%
6.25%
8.25%
69,836,183
2,841,380
-
2,912,677,302
2.0%
6.25%
8.25%
88,781,193
2,370,265
-
3,126,437,433
2.0%
6.25%
8.25%
95,014,684
2,497,918
-
3,233,711,346
2.0%
6.25%
8.25%
$ 530,810,467 $
21,208,523 $
243,290,214 $
29,534,245,295
167
Taxpayer
Austin Marriott North
Homewood Suites
Hilton Garden Inn
Hampton Inn
Residence Inn
Courtyard by Marriott
Holiday Inn
Springhill Suites
Microtel Inn & Suites
Holiday Inn Express
La Quinta Inn
Wingate Inn
Baymont Inn
Red Roof Inn
Sleep Inn
Staybridge Suites
Home 2 Suites
Best Western Executive Inn
Motel 6
Comfort Suites
Country Inn & Suites
Candlewood Suites
Extended Stay America # 6197
Days Inn & Suites
Extended Stay America # 6030
Value Place
VRBO Homes
CITY OF ROUND ROCK, TEXAS
HOTEL TAXPAYERS
SEPTEMBER 30, 2015
Total
Hotel Motel Hotel Motel Collections
Occupancy Occupancy Year Ended
Tax Venue Tax September 30, 2015
Number % of
of Total
Rooms Collections
$ 709,420 $
202,691 $
912,111
295
17.9%
337,060
96,303
433,363
115
8.5%
253,917
72,548
326,465
122
6.4%
231,234
66,067
297,300
93
5.8%
220,660
63,046
283,706
96
5.6%
210,504
60,144
270,648
113
5.3%
197,343
56,384
253,727
124
5.0%
171,471
48,992
220,463
104
4.3%
140,593
40,141
180,734
100
3.6%
140,072
40,020
180,092
91
3.5%
134,033
38,295
172,328
116
3.4%
127,235
36,351
163,586
100
3.2%
119,437
34,125
153,562
86
3.0%
114,414
32,688
147,102
100
2.9%
100,277
28,651
128,927
74
2.5%
98,406
28,116
126,522
81
2.5%
96,336
27,524
123,860
91
2.4%
90,812
25,943
116,755
69
2.3%
73,324
20,950
94,274
59
1.8%
72,356
20,673
93,029
63
1.8%
72,270
20,649
92,919
63
1.8%
65,099
18,600
83,699
98
1.6%
53,310
15,232
68,542
104
1.3%
48,549
13,871
62,420
48
1.2%
47,311
13,518
60,829
138
1.2%
27,264
7,790
35,054
121
0.7%
1,195
341
1,536
16
0.0%
$ 3,953,903 $
1,129,653 $
5,083,554
2,680
100.0%
CITY OF ROUND ROCK, TEXAS
HOTEL OCCUPANCY TAX COLLECTION HISTORY BY QUARTER
LAST TEN FISCAL YEARS
Fiscal
Year
Ended
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
9-30
Oct. — Dec.
Jan. — Mar.
Apr. — June
July — Sept.
Total
2006
521,640
459,601
578,711
708,667
2,268,619
2007
594,826
695,452
729,813
818,598
2,838,689
2008
669,345
749,897
806,813
713,297
2,939,352
2009
609,608
589,006
640,846
554,685
2,394,145
2010
504,062
582,719
661,356
543,189
2,291,326
2011
684,430
678,090
716,629
604,897
2,684,046
2012
610,280
835,331
1,004,705
802,227
3,252,543
2013
964,181
1,091,350
1,152,982
932,407
4,140,920
2014
1,071,926
1,217,483
1,271,649
1,085,150
4,646,208
2015
1,114,213
1,274,209
1,437,121
1,258,012
5,083,555
169
CITY OF ROUND ROCK, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
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.
170
Business -Type
Governmental Activities
Activities
General
Total
Percentage
Fiscal
Obligation
Certificates of
Other Debt
Revenue
Primary
of Personal
Per
Year
Bonds
Obligation
Obligations
Bonds
Government
Income
Capita
%
2006
95,020,000
2,968,000
63,554,463
-
161,542,463
6.26
1,799
2007
124,960,000
16,120,000
60,994,604
355,000
202,429,604
7.53
2,188
2008
120,060,000
15,300,000
73,598,054
8,290,000
217,248,054
7.67
2,258
2009
115,725,000
14,475,000
69,270,163
11,555,000
211,025,163
7.10
2,121
2010
110,470,000
13,530,000
65,830,308
91,166,635
280,996,943
9.16
2,788
2011
105,980,000
12,965,000
60,691,660
89,888,648
269,525,308
8.63
2,655
2012
101,185,000
12,380,000
62,571,173
87,765,660
263,901,833
8.27
2,574
2013
96,340,000
11,770,000
56,131,110
85,392,673
249,633,783
7.56
2,380
2014
155,780,000
11,135,000
55,963,734
90,799,894
313,678,628
9.12
2,903
2015
154,925,000
29,675,000
56,701,818
87,827,948
329,129,766
10.00
2,970
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.
170
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
Note: Includes Certificates of Obligation and General Obligation Bonds net of related premiums and discounts.
(1) Source: Planning Department, City of Round Rock
(2) Gross bonded debt does not include self-supporting debt funded by enterprise funds. Gross self-supporting debt totaled
$3,355,000 at September 30, 2015.
171
Amount
Ratio
Available
of Net
Fiscal
Net
(2)
in
Bonded
Net
Year
Assessed
Gross
Debt
Net
Debt to
Bonded
Ended
(1)
Value
Bonded
Service
Bonded
Assessed
Debt Per
9-30
Population
(in thousands)
Debt
Fund
Debt
Value
Capita
2006
89,800
5,773,483
94,509,955
(2)
3,200,508
91,309,447
1.58
1,017
2007
92,500
6,514,969
138,226,097
(2)
3,058,395
135,167,702
2.07
1,461
2008
96,200
7,503,434
132,716,787
(2)
3,431,063
129,285,724
1.72
1,344
2009
99,500
8,194,468
127,721,445
(2)
2,887,281
124,834,164
1.52
1,255
2010
100,800
8,322,297
123,017,131
(2)
1,944,761
121,072,370
1.45
1,201
2011
101,500
8,017,148
118,122,822
(2)
2,238,270
115,884,552
1.45
1,142
2012
102,515
8,096,658
114,268,570
(2)
2,301,340
111,967,230
1.38
1,092
2013
104,900
8,291,050
108,241,436
(2)
2,415,427
105,826,009
1.28
1,009
2014
108,050
8,689,652
172,890,871
(2)
2,278,062
170,612,809
1.96
1,579
2015
110,800
9,634,156
181,245,000
(2)
2,351,780
178,893,220
1.86
1,615
Note: Includes Certificates of Obligation and General Obligation Bonds net of related premiums and discounts.
(1) Source: Planning Department, City of Round Rock
(2) Gross bonded debt does not include self-supporting debt funded by enterprise funds. Gross self-supporting debt totaled
$3,355,000 at September 30, 2015.
171
172
CITY OF ROUND ROCK, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
SEPTEMBER 30, 2015
Name of Governmental Unit
Debt repaid with property taxes -
Round Rock Independent
School District
Williamson County
Austin Community College
Georgetown ISD
Travis County Healthcare District
Travis County
Subtotal, overlapping debt
City direct debt
Total direct and overlapping debt
* Gross Debt as of September 30, 2015
Total
General Estimated
Debt Percentage
Outstanding Applicable
Estimated
Share of
Overlapping
Debt
$ 716,040,000 *
37.51% $
268,586,604
966,599,942*
20.85%
201,536,088
245,488,659 *
5.90%
14,483,831
204,585,000 *
0.21%
429,629
12,305,000 *
0.22%
27,071
695,034,987 *
0.22%
1,529,077
486,592,300
241,301,818
$ 727,894,118
** The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Source: City of Round Rock Finance Department and Texas Municipal Reports
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.
173
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
CITY OF ROUND ROCK, TEXAS
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2006
2007
2008 2009
$ 1,034,929,880 $ 1,167,845,500 $ 1,345,033,513 $ 1,468,905,352
89,029,039 132,491,172 126,786,525 122,512,295
$ 945,900,841 $ 1,035,354,328 $ 1,218,246,988 $ 1,346,393,057
8.60% 11.34%
Legal Debt Margin Calculation for Fiscal Year 2015
Total assessed value
Debt limit - Maximum serviceable at permitted allocation
of $1.50 per $100 of assessed value
Amount of debt applicable to debt limit:
Total General Obligation Debt
Less:
Amount available in Debt Service Fund
Amounts considered self-supporting
Total net debt applicable to debt limit
Legal debt margin
$ 184,600,000
(2,351,780)
(3,355,000)
9.43%
$ 9,634,156,426
$ 1,640,628,922
178,893,220
$ 1,461,735,702
8.34%
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, 2014, assessed valuation of $9,634,156,426 at 100%
collection, tax revenue of $144,512,346 would be produced. This revenue could service the debt on $ 1,640,628,922 issued as
20 -year serial bonds at 5.50% (with level debt service payment).
174
2010 2011
2012 2013 2014 2015
$ 1,491,819,433
$ 1,437,119,854
$ 1,451,372,470
$ 1,486,218,341
$ 1,557,670,054
$ 1,640,628,922
117,540,239
112,406,730
107,568,660
101,824,573
161,006,938
178,893,220
$ 1,374,279,194
$ 1,324,713,124
$ 1,343,803,810
$ 1,384,393,768
$ 1,396,663,116
$ 1,461,735,702
7.88%
7.82%
7.41%
6.85%
10.34%
10.90%
175
CITY OF ROUND ROCK, TEXAS
SCHEDULE OF REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(1) Water and Sewer Fund operating and non-operating revenues.
(Z) Water and Sewer Fund operating expenses, excluding depreciation.
176
Net
(2)
Revenue
Debt Service
c�>
Direct
Available
Requirements
Revenue
Fiscal
Gross
Operating
for Debt
Principal and
Bond
Year
Revenue
Expenses
Service
Interest
Coverage
2006
32,985,447
20,962,289
12,023,158
284,310
42.29
2007
31,921,522
21,369,755
10,551,767
5,966
1,768.65
2008
36,629,189
24,736,819
11,892,370
153,666
77.39
2009
39,095,039
27,356,759
11,738,280
568,400
20.65
2010
39,240,390
22,243,281
16,997,109
4,007,882
4.24
2011
46,215,387
21,880,865
24,334,522
5,081,298
4.79
2012
44,098,633
21,274,247
22,824,386
5,893,953
3.87
2013
44,479,457
25,401,579
19,077,878
6,101,113
3.13
2014
45,103,137
27,132,654
17,970,483
6,347,632
2.83
2015
46,761,990
27,348,975
19,413,015
6,894,788
2.82
(1) Water and Sewer Fund operating and non-operating revenues.
(Z) Water and Sewer Fund operating expenses, excluding depreciation.
176
CITY OF ROUND ROCK, TEXAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
177
(4)
Per
(2)
(3)
(2)
Fiscal
(t) Personal
Capita
Median
School
Unemployment
Year
Population Income
Income
Age
Enrollment
Rate
2006
89,800 2,581,211,200
28,744
30.6
39,112
3.3
2007
92,500 2,686,755,000
29,046
31.0
40,342
3.5
2008
96,200 2,831,069,800
29,429
31.2
41,489
4.2
2009
99,500 2,971,866,000
29,868
31.2
41,867
6.4
2010
100,800 3,066,033,600
30,417
31.4
42,683
6.2
2011
101,500 3,122,749,000
30,766
31.6
44,331
6.1
2012
102,515 3,190,164,285
31,119
32.0
45,000
5.9
2013
104,900 3,301,727,500
31,475
32.0
45,361
5.0
2014
108,050 3,439,879,800
31,836
31.7
45,924
4.2
2015
110,800 4,314,330,400
38,938
33.5
47,093
3.2
Sources:
(1) Planning Department, City of Round Rock
(2) Round Rock Chamber of Commerce
(3) Round Rock Independent School District
(4) 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.
177
CITY OF ROUND ROCK, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
178
2015
2006
% of Total
% of Total
City
City
Name of Employer
Employees
Rank
Employment
Employees
Rank
Employment
Dell, Inc.
14,000
1
24.09
9,500
1
20.43
Round Rock Independent School District
5,800
2
9.98
4,600
2
9.89
Sears TeleServe
1,600
3
2.75
1,200
3
2.58
City of Round Rock, Texas
890
4
1.53
768
5
1.65
Emerson Process Management
880
5
1.51
Round Rock Premium Outlets
800
6
1.38
Scott & White Healthcare
750
7
1.29
Texas Guaranteed Student Loan
700
8
1.20
610
7
1.31
Round Rock Medical Center
690
9
1.19
748
6
1.61
Liquidation Channel
600
10
1.03
Wayne, a GE Energy Business
600
10
1.03
503
9
1.08
Seton Williamson Medical Center
450
11
0.77
Michael Angelo's Gourmet Foods
370
12
0.64
900
4
1.94
Field Asset Services
330
13
0.57
Chasco Constructors
320
14
0.55
TECO Westinghouse Motor Co.
300
15
0.52
Toppan Photomask
250
16
0.43
Farmer's Insurance
560
8
1.20
Cypress Semiconductor
400
10
0.86
29,330
50.46
19,789
42.55
Source: City of Round Rock 2015-2016 Annual Budget
178
CITY OF ROUND ROCK, TEXAS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Source: City of Round Rock Finance Department
179
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Function:
General government
158
163
176
173
176
164
164
164
171
174
Public safety-
Police -
Officers
131
135
146
151
152
152
154
153
160
167
Civilians
55
58
62
61
61
67
67
68
64
67
Fire -
Firefighters & officers
111
119
124
124
124
124
124
124
129
129
Civilians
4
5
5
5
5
5
5
6
8
8
Public works -
Street & Drainage
48
48
48
48
48
48
48
55
55
54
Shop
15
15
15
15
15
15
15
15
16
18
Culture & Recreation -
Library
29
29
29
29
29
29
29
30
31
31
Parks & Recreation
93
93
95
97
98
94
94
91
91
91
Water
92
93
95
96
97
91
91
91
93
95
Sewer
35
35
36
36
35
35
35
35
35
35
Total
771
793
831
835
840
824
826
832
853
869
Source: City of Round Rock Finance Department
179
CITY OF ROUND ROCK, TEXAS
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function:
Police -
Arrests
Accident reports
Index crimes reported
Crimes per thousand residents
Officers per thousand of population
Fire -
Incident volume
Priority calls answered
Non -emergency calls answered
Priority calls -response less than 6 minutes
Public Works-
Street -
Street resurfacing (lane miles)
Potholes repaired annually
Signals maintained
Shop -
Work orders
Number of departments served
Culture and Recreation-
Library -
Number of items circulated
Number of card holders
Number of library visits
Parks & Recreation -
Total park acres maintained
Number of athletic fields maintained
Number of trees planted
Number of recreation enrollees
Water -
New connections
Line maintenance work orders
Average monthly consumption
Sewer -
Average monthly treatment
Line feet reviewed for infiltration & inflow
Source: City of Round Rock Finance Department
2006
2007
2008
2009
4,000
4,013
3,754
3,749
3,908
1,907
1,990
1,997
1,646
2,072
2,512
2,449
2,960
22.80
27.90
30.10
30.30
1.50
1.46
1.52
1.52
6,430
7,463
7,690
8,000
4,977
4,592
5,656
5,800
1,453
2,871
2,034
2,200
73%
73%
64%
65%
124
130
135
137
4,000
4,000
4,000
4,000
52
57
59
59
4,118
5,418
5,618
6,330
18
18
19
19
671,816
725,370
762,926
780,000
42,792
44,820
49,829
51,000
302,900
306,000
311,000
310,000
1,547
1,610
1,610
1,757
38
38
38
43
843
500
818
877
372,998
371,201
402,548
401,000
1,549
1,181
572
254
4,242
4,400
4,400
4,226
553,600,000
432,101,000
552,610,000
589,159,550
303,103,333
298,038,200
296,208,875
301,433,205
181,316
152,515
161,291
156,934
180
2010
2011
2012
2013
2014
2015
4,000
4,328
4,521
6,715
6,182
5,773
4,600
1,877
2,747
4,485
4,845
6,383
2,249
3,154
3,154
2,777
2,632
2,338
2,329
31.30
31.30
27.10
25.10
21.70
22.00
1.48
1.48
1.49
1.46
1.42
1.53
8,500
8,141
8,350
8,749
9,027
9,928
6,000
5,916
3,475
3,728
3,713
2,780
2,500
2,225
4,875
5,021
5,314
7,148
65%
65%
60%
60%
63%
56%
137
45
60
80
80
40
4,000
4,000
4,000
4,000
4,000
1,500
59
68
76
79
83
84
6,930
4,609
5,336
4,447
4,178
4,399
19
19
19
19
19
19
810,000
854,000
903,219
940,135
975,291
972,094
53,000
59,000
55,336
81,620
74,192
99,822
320,000
292,000
294,768
323,384
309,167
388,625
1,780
1,935
2,035
2,035
2,045
2,045
45
46
49
49
49
49
350
345
558
163
165
110
401,000
420,000
420,000
487,455
490,704
577,140
356
335
313
442
360
402
4,044
3,185
3,279
5,500
6,734
3,317
466,096,342
655,615,475
560,281,041
549,154,150
491,936,100
505,251,158
327,351,600
475,482,100
457,967,400
409,000,000
394,000,000
385,611,068
114,176
317,789
361,784
377,783
459,128
187,464
181
CITY OF ROUND ROCK, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Function:
Police -
Number of stations
Number of units
Fire -
Number of stations
Number of fire trucks
Public Works-
Street -
Lane miles
Drainage miles
Number of street lights
Number of traffic signals
Shop -
Repair facilities
Number of bays
Culture and Recreation-
Library -
Number of library books
Number of library facilities
Parks & Recreation -
Total park acres
Number of athletic fields
Number of parks
Number of tennis courts
Number of pools
Water -
Number of miles of water lines
Pumping stations
Tanks
Treatment capacity (millions of gallons/day)
Sewer -
Number of miles of sewer mains
Wastewater lift stations
Source: City of Round Rock Finance Department
2006 2007 2008 2009
1 1 1 1
142 186 189 195
6 6 7 7
10 11 11 14
997
1,036
1,124
1,124
92
92
100
100
4,796
5,034
5,075
5,103
52
57
59
59
1
1
1
1
19
19
19
19
133,111
147,000
180,397
185,000
1
1
1
1
1,547
1,610
1,610
1,855
38
38
38
44
52
53
53
60
23
23
23
23
5
5
5
5
458
481
487
503
14
14
14
15
18
18
18
19
48
48
48
48
365
376
392
400
11
11
12
12
182
2010 2011 2012 2013 2014 2015
1 I 1 1 1 1
199 199 199 201 229 240
7
7
7
7
7
7
15
16
16
16
14
16
1,137
1,200
1,200
1,250
1,250
1,250
100
100
100
150
150
150
5,104
5,119
5,312
6,000
6,800
5,400
59
68
76
79
83
84
1
1
1
1
1
1
19
19
19
19
19
19
185,000
183,000
195,000
150,211
154,278
156,277
1
1
1
1
1
1
2,119
2,274
2,035
2,035
2,035
2,035
46
47
49
49
49
49
84
85
62
62
62
62
23
23
23
23
25
25
5
4
4
4
4
4
591
584
585
587
601
608
15
15
15
14
14
15
20
20
20
20
20
22
52
52
52
52
52
52
417
422
422
424
432
424
12
12
12
12
12
12
183
CITY OF ROUND ROCK, TEXAS
TOP TEN WATER CUSTOMERS
SEPTEMBER 30, 2015
Name of Customer
Fern Bluff Municipal Utility District
Williamson County Municipal Utility District # I 1
Williamson County Municipal Utility District # 10
Chandler Creek Municipal Utility District
Vista Oaks Municipal Utility District
Paloma Lake Municipal Utility District #1
Dell, Inc.
Round Rock Independent School District
Michael Angelo's
Walsh Ranch Municipal Utility District
Source: City of Round Rock Finance Department
% of Total
Water Water
Consumption Consumption
Type of Business
in Gallons
Municipal Utility District
280,410,100
Municipal Utility District
187,762,000
Municipal Utility District
156,356,000
Municipal Utility District
150,461,500
Municipal Utility District
113,252,500
Municipal Utility District
99,394,400
Electronic Equipment
77,522,200
Public Schools
68,340,800
Food Production 56,523,000
Municipal Utility District 47,719,800
1,237,742,300
184
in Gallons
4.741%
3.174
2.643
2.544
1.915
1.680
1.311
1.155
0.956
0.807
20.926%
CITY OF ROUND ROCK, TEXAS
WATER AND SEWER RETAIL RATES
SEPTEMBER 30, 2015
Water rates for retail customers inside the city limits are as follows:
Volume Rate
Non peak billing periods:
$2.42 per 1,000 gallons of water used by all customers
Peak billing periods:
Four block structure for use in excess of predetermined amounts set by meter size -
Block 1: Base rate times 125%
Block 2: Base rate times 150%
Block 3: Base rate times 175%
Block 4: Base rate times 200%
Sewer rates for retail customers inside the city limits are as follows:
Volume Rate
$3.29 per 1,000 gallons of water used by all customers
Monthly Service Charge
Meter Size Base Monthly Water
Serving Customer Service Charge
Monthly Service Charge
* Meter Size Base
Serving Customer
Monthly Sewer
Service Charge
5/8 inch
14.26
3/4 inch
19.86
1 inch
31.36
1 1/2 inch
60.09
2 inch
94.56
3 inch
175.02
4 inch
289.96
6 inch
903.98
8 inch
1,580.05
10 inch
2,481.47
12 inch
3,044.86
Monthly Service Charge
* Meter Size Base
Serving Customer
Monthly Sewer
Service Charge
5/8 inch
12.88
3/4 inch
16.81
1 inch
24.10
1 1/2 inch
43.94
2 inch
67.76
3 inch
123.31
4 inch
202.67
6 inch
597.35
8 inch
1,042.40
10 inch
1,635.78
12 inch
2,006.64
* Sewer customers' volume is measured as the rate per 1,000 gallons of the lesser of a three month winter average or actual
water use.
Source: City of Round Rock Finance Department
185
186
SINGLE AUDIT SECTION
187
188
CITY OF ROUND ROCK, TEXAS
SCHEUDLE OF EXPENDITURE OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2015
Federal Grantor/Pass-Through Grantor CFDA Federal Grant
Program Title Number I. D.
U. S. Department of Homeland Security
Pass -Through Programs
Passed -Through FEMA
Emergency Management Performance
Total U. S. Department of Homeland Security
Pass -Through Programs
U. S. De partme nt of Justice
Bulletproof Vest Partnership Program
Edward Byrne Memorial Justice Assistance
Grant
Total U. S. Department of Justice
U. S. Department of Transportation
Federal Transit Formula Grants - 5307 Funds
Job Access and Reverse Commute Program
Passed -Through the Texas Department of
Transportation
Brushy Creek Gap Trail Project
Total U. S. Department of the Transportation
Pass -Through Programs
Total U. S. Department of Transportation
U. S. Department of Housing & Urban
Development
CDBG Grant - 2013
CDBG Grant - 2014
CDBG Grant - 2015
Special Projects Grant - Downtown
Total U. S. Department of Housing & Urban
Development
Total Expenditures of Federal Awards
189
97.042 15-TX-EMPG-1425
16.607 2012BUBX1206898
16.738 2014 -DJ -BX -1222
Federal
Expenditures
$ 44,655
44,655
3,040
10,262
13,302
20.507
TX -90-Y001-00
367,211
20.516
TX -37-X065-01
16,105
20.219
CSJ#0914-05-161
105,567
I M sr17
�s+MIR&M
14.218
B 12MC480514
212,931
14.218
B 13MC480514
111,596
14.218
B 14MC480514
200,821
14.251
B -10 -SP -TX -0141
500,000
1,025,348
$ 1,572,188
CITY OF ROUND ROCK, TEXAS
NOTES TO SCHEUDLE OF EXPENDITURE OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2015
1. BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards 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
OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. Therefore, some
amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the
basic financial statements.
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, accordingly, when such
funds are received they are recorded as deferred revenue until earned.
190
r
B RO C KWAY
LuM
GERSBACH
FRANKLIN &
NIEMEIER,P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERIVMENTAUDITINGSTANDARDS
The Honorable Mayor and
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 the City of Round Rock, Texas
(the City), as of and for the year ended September 30, 2015, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements, and have issued our report thereon dated
January 28, 2016.
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) to determine the audit procedures that are appropriate in the circumstances
for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or,
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. 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.
191
3520 SW H.K. DODGEN LOOP 0 TEMPLE, Toms 7650,4-6B38 ® 254.773.9907 c FAx 254.773.1570
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENTA UDITING STANDARDS
(CONTINUED)
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
4 �t,6� FC11-
Temple, Texas
January 28, 2016
192
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
The Honorable Mayor and
City Council
City of Round Rock, Texas
Report on Compliance for Each Major Federal Program
We have audited City of Round Rock, Texas' (the City) compliance with the types of compliance
requirements described in the OMB Circular A-133 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, 2015. The
City's major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based
on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments,
and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform
the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, City of Round Rock, Texas, complied, in all material respects, with the types of 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, 2015.
193
3520 SW H.K. DODGEN LOOP 0 TEMPLE, TExAs 76504-6838 0 254.773.9907 0 FAX 254.773.1570
BROCKWAY
GERSBACH
>
FRANKLIN &
Fyy
NIEMEIER,P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
The Honorable Mayor and
City Council
City of Round Rock, Texas
Report on Compliance for Each Major Federal Program
We have audited City of Round Rock, Texas' (the City) compliance with the types of compliance
requirements described in the OMB Circular A-133 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, 2015. The
City's major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based
on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments,
and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform
the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, City of Round Rock, Texas, complied, in all material respects, with the types of 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, 2015.
193
3520 SW H.K. DODGEN LOOP 0 TEMPLE, TExAs 76504-6838 0 254.773.9907 0 FAX 254.773.1570
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
(CONTINUED)
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance
with the types of compliance requirements referred to above. In planning and performing our audit of compliance,
we considered the City's internal control over compliance with the types of requirements that could have a direct
and material effect on each major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test
and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or 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 first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
The purpose 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 OMB Circular A-133.
Accordingly, this report is not suitable for any other purpose.
Temple, Texas
January 28, 2016
oz -
194
CITY OF ROUND ROCK, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Section I -Summary of Auditors' Results
Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Noncompliance material to financial statements
noted?
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Type of auditors' report issued on compliance for major
programs:
Any audit findings disclosed that are required to be
reported in accordance with section 510(a) of
OMB Circular A-133?
Identification of major programs:
CFDA Number(s)
14.251
20.507
Dollar threshold used to distinguish between
Unmodified
yes X no
yes X none reported
yes X no
yes X no
yes X none reported
Unmodified
yes X no
Name of Federal Program or Cluster
Special Projects Grant — Downtown Revitalization
Federal Transit Formula Grant — 5307 Funds
type A and type B programs: $ 300.000
Auditee qualified as low-risk auditee? X yes no
Section II -Financial Statement Findings
None
Section III — Federal Award Findings and Questioned Costs
None
195