ML20056D891
| ML20056D891 | |
| Person / Time | |
|---|---|
| Site: | South Texas  |
| Issue date: | 12/31/1992 |
| From: | Carey R CENTRAL POWER & LIGHT |
| To: | |
| Shared Package | |
| ML20056D884 | List: |
| References | |
| NUDOCS 9308180230 | |
| Download: ML20056D891 (333) | |
Text
{{#Wiki_filter:. , . .. :.- - ;;. .. ... . ;- . ; .
- .. .. * -+~: . .
.n. , . . . . .e - .' . - - ' -, ,. .
. - , . . g: _
5:+:Q l y. [.): ft ' ,lI;II ' ,l .l. [ n . .
....n ; ;N 4 ' 8 J E.. .. e j $. : L ' in m: L; v D . - ^ .. ; ; ;:::.: ns.
- a :- 3::.;; i. : w .. .; .~-' a " ? :z'.J. . . ;. .' - -
.u;; . ;. . .: c ,.f.:;; t ~ :;y ; )
v; <p- q.
.';..-. _~;
/. . 7. ^ ; 7. . ; 3 n ;;; 3 C, ; ; ; .~/<. J. ;
,:. ~. .. .
my,. ~_ .*_,'~'Y)'
. . , . : ;; _ ^'c'. . y' * ;. . _ ; .. ; ; ;;, . ' ' .- ...s..
l ,. A p ..L 'l . * . .1 '- -
.( ,. .; ; ;. .
n., . w_ .. :
. . . c
....,c, . . - . ._. ,. ,
g;. ; . ; _. ;
, :. :.;. . , .u - u,.~ , . < . F'n. .:: . . . . ' -y:.9.., _ . . ;. . , _ : ., ; . . : ;g i. ... .; -s:.
. ~ -
. - - --;.-.~..
- .r. ; ;
..4n3. .
. .. . . . __ . . .. . _ v; .
- , 3 ; ;..,.- ; ; .-*
~ -
.. . . . + . . . . . .
; .-- ^ .' . ' . . ~ -.-. _y "' "_
- . , . . . n . ~'L -
.".v.. .:- - -
..?
+ * : :.. .L.'-' . .
... - ^ _- ., . '
~
i ; o _ . R
*. _ . . ~ ' _ ;... .; -. . . [ .; .:_ [ , . ' ::
c.._ v.
.(
_. y _, ; ;; _ ..7
; : .n L" ;: . .:
..: -u w . ..:
.. ' .;xI .
' ' ' ^~
' (( _ Y ' ' ll
..'~~l"".
^
~
a z .+: m i.
..:I .. :;
." .. . . - .;=
,;a '- :-
.[
' > l; ,:'.l..l; ; . ,. . ll .
- . . ll ' - . 'S ^
. . ~ . . . .' -
l
.[ ;l ,. , .' . . '. ; ~ _ l. .
w . _ . p.,n
'; g ; e .
p; . :. V
- ::;l ;; } J ' i' _ J.; ; . ~ T . . f b,; 7 ..
~
r .^ .- ,'.. ._. . ..;-^ ^ . v. .
- '. e.y%
QF F _g~ . .);. 'J ;. Lc;3 . ' : _- '. e. . . i .. " .
.. i.L 7;%,; f.;
(,4; 9 : '~.".4,.,1.... ' e n ;;.E'.c e. . '- y ,3 ,3.. -
'3--' -
.. ~
' [. [_ i } ;f J;
"af,j-ll
. . . + s,q '
}. " - -
?
f3 ' l(( . J} }. . _.[
;,;g a : ^. ' :.
..;. .,.m.c .m, . .
- c
?
Y': L L . ..
- Y '
.$,..;.i .Q 3.$ [
. Q* , + 1 . .
~ ; _ {. , ^ c. . ~:
pi- . age t , ._ .
.. m:g m . .. '-c... . . . .. .;
,. ., ; -;;3: .. . ..
3)%+%g. ' 4 3 ~~ 7
'Y; q.., _
q' ,
.'.. ' . . .. (
Q + .lgf l.
^ '
ac%y %*s94g!b 1L Rlj
' ' ^L ' : "
)..
i y<Q. s , W
+ s', h. '.31*,
e ]
.x~
z. A'__ u..
'..s.
. q. L . .4. ,p, y . my.- R,%s. . n. i C
.: : :d. . . .
- ; . L. .
' s s . . s.
~\
y_';p%. R.y 'r
,. . ' .W.. .
*s _ ys :.'} '? ,.[_
, g. s .a v ,.s_ v _re ; - ' ' ...
, , , ;.m ; . .
. x - .
m w..t1k. * * ,('. - m ..
* # ( ., r' k , ~. ;c ~
a d - [~ . *-5* m ;,
.m
. l .: .. . .
g y ( i.,2 0 - . , ;. . w a 3. t
, 'c .x L . . .; . .
h g: . . - , a p . 4; . . . .. . .- .
, 1:, i 1. .5...
**$ : ;u . . , ( . + . . ' '- f, - N 7 .j (. ' - J.
h.C;;.& W a ks c 24 -,
- \
.%:.i ; ,::a:i.:: y l..;., _ . . ' %%,
7
~- ., .. :. 'V
' "V!y -
. kc[y ... i '.4 :
cf.. ~.. ; . q:- . . . . e4x..79 p: a
';J
; 1 ;.
y Q s'l.QlG:y.,
- . e, 2 ~ <;:+v Tf ll _;;
-_.. e ,. .. ..;_ ..
$.lu ::ll b a . . ;[
- e. ~ ;.+:..
g?;hflf 1 ,' q lj ,%se .f ,saw b y.:.
. l,[: ,
' pg4a H
%.; ( y w:
~
. (y h6-' y
/s/ . 4 p1 ._
- u e
M.(;:;;
; (.J ' ..t c ? .)ngy% {.g - . $m a;; =Sgf.. yv e f a 3 e a . . . .n. .c .:
' l /j q,'.. p 4. - p.g
.~, s
- f. , m annf yl , .
. ,[ R j .
L ~ b. ':S g._ . f.i.l.f: .l f.f. .3,Q: c. m a Qj l [ge n [. .; Q
- _ Q[:;; Q. 43g f. /Qf.;
- n.. '*
, ~ w- ,a~ .:;..., .- o
' N h [.]. {, , []. ,
q [g .. j
- 3 1
3 7 A. ;
. .. f _
.w
- p .y -
ts gy .m t . .. ....;: ,, . ~, g 37 [.;
" - kap I
- y . v.
...~. .
,; . [ f '.. . .. ,;_ _; . Q.J J h<
,r ph&s )y ~ a }m[py g, 2 p.
jf(). . . j. . . - [n w '.} .
;i;;[ y '
- :m' y.h y
- f. '; ; . jy's.ni ., - ' g dyl.Jy4 Q 4T.v %."
- c . t L y? . ..
p . ., N:- - -
.jj ' i]
S
- (g.f:[.
~
9
- Q -ijf f. .. {
W .9 + . ..{i 4..j:. .
.~ .. .. ., . . .-
. h.
N j
- s. r 4 p'4. '.a
k 4>% w - a.
~
9308180230 930810 PDR ADDCK 0S000498 bd y i A g? J , y'
- :---. ' : yo m -4
....~
/M'S 2'M'- i . ' Ni'b- i M V-
- n. #- "
~
I PDR ' . v; c 9 ; y ; . . r. .c f .. . _ .s rb9 2 , ., .c .. _
]^ 3h~< _
%Y . OM M k $-['["' ' #f 3:_3n _ i
' ' -/. [A-,. .['11;~ s . .
g#8") entral Pmer and 1.ight Company is an investormned utility supplving electr wnix to a M(Knyjuart' mile anm that reaches into M countxs of South
%3^ Texas. %e Ginpany is a subsidiary of Crntral and South West Qqwation, a mgistend hokling company in Dallas,which has appmximately
~
; 62f x 0 stockhoklers At the erx! of 1992fentnd Power and I.iWit Ompany semd 5%.840 cuskmers in 228 a>mmunities and the surmund:ng an a Be 0 >mpany also supplies, at wholesale, a part or all of the ekrtric requirements of fiw rural ekttric coq erathts and two municipal ekttric systems. Eere am appmximately 1328 muers of CPils prefernd strck.
%e terntory serwd by the Gimpany has a population of appmximately 1.9 million.
Principal eu.tutive offias are kcatal at 539 K Carancahua St. Qqius Chnsti, Texas. Tekphone (512)881-5.VO. sA, s
.- h%;.- - W- . __:
~ - - - ~ ,
m
~
Q,_ _ .. ~
.e < ~.
p-y L ;: T:- u,.~._ - % .- . .: ; ;_. , . ;; ;~-~, _ _ .
^
y*. . . -
' 2.1. 2 * .,.c . : .. :.T a y .- y
~-~.1.1 4- #F
_ . - ~ - , , , ,, f9 % d. .
---4, , , . * + - y. m ,
~
e - e ,247 f~ "
- l. ' c.:j.lcs:
.Q , . ._ e,e,
= p v
. -'?www % 3s M_.9t?~- ;"- .. W ) I~ w:W.i&
. ' 3: , -
,e!@+^ g
. : .;z
~
~==* 52.:.h,.g , :.c f. '"' :. .j2 cm WE ' -~^ 4 -Le.
g j i,;y ) ?.;,~.1
~ - - - ' '
, . , . A. -
.?
,_ c- . . - . c. 2
-. r.._.. p ' . . , .;;ft ?. 4 -y, ~ ,_ . , ;} ; _-[
~~ -
ff, jy 3. ;}p:=_ _,f,& , -
- 1_: ::.r.
? .
.w. -
,e .
3 AY 0's , y '%l 5 ?.$ $ p *] . *b.
* ~ . -
(0- _ I lb. -
. ~ .
...-*<*W
?
r- G' - + ??h':.C, ame.' 4 .3 r 1 gg:. W. i * ' . se:,:M := 1 4 102; MI#ET _,,,ua .-u f -- ,mwq . fliijfm . . yy n .s.,
. , _ . t. w~ &- ~~
~,
,_ - '-.- _ a _s*.. . , q, qga',. .;.. .,M :~ :-- : . ,=- . m::Ss.-~=.
lu 2.n . ==%i ,...,, tvir .
..c- e4, .r. . ,.-..%s..~%~-%,.
~ AS' . .
? g0, n , + '. .
. . - . . ; w.= p:=
[W
.n.
$0 i .ol- ' *
. .' ~ ~. ['$Wj' ^ 'm.
tY: -.,1, . .:.< h..-,&N. ~~ ..l$'l5 [# 4 ..,,.l',,/ , . , ,.;,;ier ._ .. ' ' ?f!'*~Y'. gn iv . W=r 2= =._ =Ess .,
. '. s ,, .,, r..
= . . = = =
- .:a
-g.
L lL'.l22llC::4:3%%%:%';;$21:2^:::' 7 m. . !7h, - '" 7-^ - - y, j . 1 g ,,((p T .]^g j 4 v k s s O 9 4
=
l L l iB sg l
+ y.
p;, . Ma: N
+ v =h kA ~
i s
~
, /:- 'g - - -
]i u.w 1
r
- 3
.t ~,y A
;- N ) ;y. q 4
g # 9~ g- . . c. fB N.,$ TA lh"j 1 +,
' 'x J
,///
//T T, l'e'{ { 7,4[ \ ',L; )
,3 . Sx i -
3ll #,& .' g. :2 , ,g
~f5 :.; s'y-
] <
, e. >-
\$
} . l Q, g s.
,g .
a , f wh f m b-1
%,. : 3.-
~
J ,, sna, 9f 4 1 g s y , FN i f .- J' s
'(y 3
[. g J-li. "
- p. .
~
ql y s= -," D. f 6 $. ' ' N$g '
-$W.
'~
Y~ *
- ~... - .,
o
, m-m ,
E441 '
M w:via to a 4Umsqu:wmile area that naches into 44 o untits of South
,C enint! Puaer and Ught Company is Texas. 'lhe Gimpany is a subsidian of Central m1d South West Oquation, a npsteral holding o >mpany in Dallas, which has a; pniximatdy J 62/m stockhokk rs At the end of 1992. Cenind Paaer and 1.ight 03mpany sennW6.840
- custonan in 228 aenmunitws and the surmunding ama.1he Ompany a!m supplies, at
-l . .- wholesale a pan or all of the ekonc nsluirements of fne rural ekonc cmperahs and tau
, municipal dtttnc 5)tlemi lhere are appnlximaldy ] 32S owneT5 o[ CPUs pm[erntl stuck.
I lhe lemloTy Se:Tt1'l hV the OlmpjDy has a p(pu!aliOU of appn)ximately 1.!) million. Pnnc: pal ewcutnt o!Tico am h catal at ;39 X Carancahua St., Oqus Christi, Texas. ,N ' 2 ' f1 Tekphone: 612) SSl-;VO
,i b
.' . ..- g.
ma=. . 2'~~ z M:.kQ
~ '
gm _.
- 2. -r , , F]-_ h
/ gggi,. ,g - 3:x 3 ,
,;g,,,gygg 41av -
g434
,%m f ,>j p& k % # -
g,g)jggay
=== -R Q : -2.$y WT$?Q? 3 Qy
~~ ' -a+x T ;
-p,a. g -
s ,gaw* s..ay. - 3. ;. .:: .
& . //[ . .S cd2 % bCb -- ^
. ~ - -
; - ;-3;; 9 ys '::; = _
ll & < * [' f l0- %fPEDO _ ~ ~ jl~@ r n-----
..m. w
~# ,N.
4 . ,*'$ . . 1:[$. ._. ,t,.$ '
,1
~"
=-ap'
."'i!".*.:.ak k./
) .~,' ., ; 12:
.7, ,1 .7
.v -
~m ; :,& .
. }, M.uw:S:Ni :(2) Gr. ' h._ ::b 2. 57:'::= e
- .g ~. .~ . . .....--
.. N
==
~%, ,
2: '
' . . '9f .- ~-E u ., .. .~ :
Q, 3 ( '{.Q.~ .111z m :=. , ~
> ~ - $.u l &@_^-Qf'!'g" w: : . . .=.=::::.
- f' j&[^^:- '&
$_'t'
~
' f f *
~ ' {. ) ' ' ;^gty.*:
- y. ..
. .-.yaan[ :: _
- ~ :a:. w - - - -
', [ T'Qfp * '
[I. '
*;, 7,.,- , ., -.[ +
, , ;~ _ . ,p..id ::::::::: a.:. . c. .. :,r.
~; .
. ~ . . . . . . --
_ __- pr +-- ,; - .g;:q yy,q::g[qq:qx: v
.~
e W
.o h
h 4 . s e /
$ jt h
e N 0
;)
1
-'i f
i t a
-. i
- s
-)
l t s
=i 4
i
'i
.I 1
// .
N ' ne ship drives east and another drives west
)
With the selfame winds that blow. ) 1
' Tis the set ofthe sails j 1 Andnot thegales ) ,
Which tells us the way togo." l 1 i f Ella W"tecie- Wik:x fre-t "The Winh :{fau" l y 5 l J j i:
}
CENTRAL POMTR AND UGifT COMPANT FinancialSummary
SUMMARY
OF FINANCIALLND OPERATING STATISTICS 1992 1991 % CHANGE FINANCIAL STATISTICS (Ihousands) Electric Operating Revenues $ 1,113.423 $1,098,730 1 Fuel and Purchased Power 324,099 318,469 2 Other Operating Expenses 375,231 392,326 (4) Taxes, Other Han FederalIncome 70,343 62,453 13 FederalIncome Taxes 77,272 75,985 2 Operating income 266,478 249,497 7 Net income for Common Stock 202,441 197.362 3 OPERATING STATISTICS Kilowatt-hour Sales (mousands) 17.173,252 16.925,627 1 System Maximum Demand (Kilowatts) 3,347,000 3.291,000 2 Ekctric Customers (Year-end) 576,840 566,066 2 Average Kilowatt-hour Sales Per Residential Customer 11,133 11.492 (3) Average Residential Revenue Per Kilowatt-hour 7.99c 7.%c - About The Cover Contents Early sailors left safe harbors to explore Financial Summary.. 2 uncharted wa*.ers. Central Power and 1.ight President's letter.. 3 Company also is facing a new ocean that Planning. 5 includes mom com;rtition, new national Tmud_ J y policies and state regulatory changes. As we chart our course, there is a sense of kinship - 4;- 7 r , .. . Future . 13
- f(
with those early sailors. The photographs Directors and Officers.. .16 hemin merge their traditions and our D Financial Retiew.. .17 strengths in planning, teamwork and prepar- / w
- Financial Statements.. .18 ing for the future. -
N '; S Notes to Financial Statements.. . 23 p Selected Financial Data.. -31
,, Management's Discussion and Analysis.. . 32
%- Comparative Statistical Record .. .35 Shareholder and Investor Information .. . 37 1
2 l
. _ _ _ _ _ _ _ _ _ _ _-__ a
x 1
- l r
i i ( i i Presidents Letter i l
^
1 was so simple once. We could easily chan our course because our future was laid out so plainly before us. But now the ekctric utility business is undergoing fundamental changes, and the future is fraught with uncertainty. l
+
New legislation on the state and federal levels will mean more competition and a restructur-ing of our business. Whether the issue is independent power pngluction or commercial par ! wheeling. there are businesses wanting a piece of our pie. That is why the course we're setting now is so critical. j These forced changes may be daunting to some, but I personally find them imigorating. Change i means more opponunity for us. Change has prompted us to look more closely at how we do business. And while sailing these unchaned waters, we have made a few discoveries along the way. At Central Power and Light Company, we have discommd that teamwork and participative manage-ment enables us to make the best decisions. We have found that opening up channels of communica-tion throughout the organization makes us more productive. We now realize that change keeps an orga-nization vibrant and healthy. Of course, not all of this has been smooth sailing. An employee attitude survey taken more than a , year ago revealed that ut had some workplace issues that needed to be addressed. This past year, ut ini-l tiated Workplace Improvement Teams (WIT) comprised of employees who volunteered to examirie inter- ! nal issues facing us. These issues included questions of trust within the organization, relationships l' l between employees and management, and our decision-making process. Employees responded with candor and honesty. While the process is still ongoing, CPL management is endeavoring to strengthen the Company by listening to its employees - and acting on their concems. , This corporate cultum change emphasizing teamwork and innovation has already tome fruit. In l' l- June, a unit of our Nueces Bay Power Station failed at a time when summer demand began to increase. l To maintain the integrity of our power system, employees worked feverishly in getting two units of the Lon Hill Power Station out of storage in less than 30 days. It was a feat many thought impossible - l except those employees who refused to buckle under the challenge. The loss of the Nueces Bay unit also underscored the need for the Inn Hill-Coleto Creek transmission ; line. The Company has been seeking regulatory approval for years in an effon to ship power from the i nonbem region of our senice territory to the gmwth areas in the westem and southem regions. i i f y 3
N
,f
.j] .
w q igl
&c._ y ] '
'=% 5' ;Q ,
.f .l - N r ~al)lh? , . .; y
% M ,
,W y WY
.;p.
.ne9f ;.
v[;ij
~ %
4 -
$ P fI
+
W
~
s h h ,.
~
. ; fif ~
~ -
f% b + a
~
O (f , d, -
/ _. u ggu % (", @,
R '* % .
/
O %
, b a2, .
L. Nto taktm at (brpm Cir'sti Muwum of soente & Hiery 1 m happy to report that the Public l'tihty Commission of Texas (PLU) certified the hne in December. The building of this hae conas at a ten opportune time. Business activity continues unabated along the Mexico border in the wake of the North Amencan Free Trade Agreement. As the economy continues to recoser in South Texas, CPL can be a tremendous help to commumties in their economic develop-ment efforts I feel the economic momemum is shiftmg from the doldrums, as we're starting to see growth - especia!!) commercial and industrial growth - in our customer base. Increavd sales, coupled with reduced operating costs, helped raise net income for common by 2.6 percent in 1992. Of course the near-term future relating to the change in our industry is not quite as clear CPL and the entire Central and South Test svstem a e stdl analyzing and planning how we will operate under the new energy bill provmons. The ewcuthe management team has been Imking at wavs it can take these leInons given us and make 3 lot of le!nonade. We know that 1[ more businesses are Compeling for our customers. we must perform to ensure we are the suppher of choice That's why we a:t stressing customer Sen'!Ce and Customer $31!sfaCtlon. Theis an old saying that " change is not made without inconvenience, eten from worse to better" Our Company may be incontemenced by the mynad of new rules, regu!alions - and deregulations-but we wi!! pros;er in the tunes ahead The future only intimidans those who are unprepared. A . 7 Robert R Carey
!w im r a ., m a e m (I'@ b' MD M 6. kJ[.I k.MIlf JU h
y i
- f '
3
- l f-w , ii-.
# 7 4y 4
bx.
-M.
h k lb 4 I I sf a }; - 3 . 4 e 9 . 7'
}9 AJ $ % m\
t s 1 g=y 2m . 29_ L. s .m _
- j f g ong-term cha!!enges As Central Power and Light Company (cpl 3 addresses the challenges p of the next decade, it will be more important than ever to maintain a long-term penpective.
%, #y lll Just like the maps of mariners from centunes past, our future holds a host of potential opponu-nities and possible threats We must assess how everything we do now will affect our abihtv to effectively sene our customen in a future that has yet to be wntien when our custamen base a choice, we want to ensure they select CPL The fiusiness Pl.:n 1.ike any responsible business, CPL must carefully administer its resources.
Five key pnnciples - the I;usiness Plan - help us stay on course as v,e move into the future:
. Customer satisfacuan is the drning force behind the senice we render
. Our fmancial pefonnance must attain at least the a!! owed rate of retum and growth in camings while delaving base rate increases as long as possible.
. Employees are expected to act on their own initiative and parucipate in decisions.
. The South Texas economy should be developed and our senices marketed so that customers value the senice received
. Panicipation in public joiicy d:scussions is imponant because the outcome affects our business and soc:al environment.
A!! our actmt es are weighed against these strategies In 1992, executises placed development of the P>usiness Plan in the hands of employw groups. a significant indicator of CPI's corporate cu!ture change. Ia:crnal planning rollowing extensive analpis and review of the fuels department at each of its four operaung companies, Central and South West Corporadon (CSW) reorganized fuel activ: ties so that each operating company's fuels depannmnt reponed to the Central and South West Senices (CSTS) vice 5
y w t 4/ r%D m N i ?E AQ t l pasident of fuels. This consolidation of the CSTS fuels organization will result in common strategies, lest business practices and maximizing the resources of the CPL fuels department. Integrated resource planning (IRP) is n quind by both the regulaton emironment and the business environment to trwet the future electrical requimments of the system. It is based on the concept that management is able to make the best decisions when it kas at supply-side options and demand-side options simultaneoush Through its resource (generation) planning. transmission and distribution planning marketing programs and new technologies, CPL is taking into account the needs of a much broader range of intensis and is preparing to make decisions in a future of uncertainty. The challenge of pmvidmg reliable service in the new utility emironment was made clear in 1991 On July 1, during one of the hottest davs of the year. a lightning arrestor on a generating unit trans-former failed Complicated by severe damage to another power station's large turbine generator two wtd:s earlier and constrained by not leing able to transfer enough electricity from CP1:s Northem Region, CPI imt per for a short time to thousands of customers in sections of both Corpus Christi and the Rio Grande Valley. Subsequenth. we brought two 70-megawatt generating units out of long-term storage twu years ahead of schedule, in record time. and pnor to the summer peak electric demand. The outage illustrated the need for rehable transfer of power that would be provided with the transmission hoe from lon liill Power Station to Coleto Creek Power Station at the same time the line was under resiew by the Public l'tihty Comm:ssion of Texas (PIU). The 7& mile line that will operate at 345 kilovohs was approved IR 1. Tim CrMalk) Tie - which will hnk tau 345kV transmission lines on opposite sides of the Rio Grande Valk S - is schedukd to be completed in December 1993, increasing rehability to the southern-most part of our senice area The PlU is reviewing our request for a Certificate of Convenience and Necessity with a deasion expected in early 1993 P4 *iness Imprmement Plan CPL contmues to receive broad benefits from the CSW system. Standardned acimties Inong CSWs operating companies improve efficiencies, cost effectiveness and n-liabihty The liusmess improvement Plan WIP) celebrated installation of its first project at the begin-ning of 1993 - a standrd accounting simctum that urufies fir,ancial record-keeping. Future lilP prm grams wdl improve efficiencies in materials management, marketing and construction. 6
i f i "fust like the ma >s ofmariners rom centuries past, ourfuture tolds a host a potentialopportu- i nities andpossible threats." l arketing and economic deselopment Since 1991,when the Company agreed to a four-year freeze on rates, CPL has become even more focused on increasing marketing and economic devekyment efforts to boost rev-enue, as well as maintaining efficient operations to hold down costs. Marketing has yielded gains in off-peak load - filling in the valkp of the electric consumption graph and making operation of our power stations more efficient. A lighting blitz early in 1992 added 5,500 new smurity and flood lights to off-peak revenue. The - first thermal-energy storage facilities in our senice territory were completed, shifting 2000 kikjwatts of air conditioning load fmm peak demand to off-peak. CPL also helped promote the sale of heat pumps and high-efficiency air conditioning sptems in record numbers during 1992. New records were set in Good huts home constmetion and ('entsable home improvements These two energy conservation pmgrams help residential customers save on elec-trical costs - in comfort - while CPL reduces peak electric load. In 1993, pmgrams that integrate both marketing and emimamental benefits will be launched. Two of the major pmgrams will feature electric lawn mcmers and water distillers. Economic development efforts showed a significant gain. CPL's reliable source of competitively priced ek ctricity was an imponant factor in 1992 expansions by four large industrial customers. Regional in!rastructmt issues came into focus, spurred by the pmmise of the Nonh American Free Trade Agnement (NAITA). The Company supports South Texas education, transponation and waterway planning, and actively panicipates in trade-building alliances with Mexico. CPL has a long-temi rela-tionship with Mexico's ekrtric company, Comision federal de Ekttricidad (CFE). CPL and CFE have participated in two binational hydropower prejects, and ymer has been exchanged since the 1950s when needs dictate. NAITA and deregulation open up new opportunities for intemational sales, after we first meet the needs of our customers. By supporting adult literacy, technical training and overall impmvement in educational quality with donations, time and equipment, CPL also helps strengthen South Texas' attractiveness to industry and improves the quality of life for our customers and employees. Financial planning fligher kikiwatt-hour sales through our marketing and economic destlop-ment programs, along with limiting our costs, will be the keys to inc2ased eamings and adequate sha:tholder retums. CPL is pursuing marketing and economic devekpment plans as previously described Further, we are holding operations and maintenance cost increases to a rate consistent with our grcuth in sales. 7
Fuel costs declined in 1992 as we took advantage of diverse supp!iers to assure the best prices CPI's total cost of fuel, including handhng and delivery, was appmximately $1.70 per MMBtu Fifty percent of CPI:s fuel requirements wem supplied by natural gas (at $2.13 per MMBlu),25 percent from nuclear fuel (at 54: per MMBtu). and 25 percent from coa! (at $2 (k5 per MMBm). Construction expenditures for 1992 totakd $ 102 million,largely for improvements to existing distri-bution facditiex CPL obtained virtually all its 1992 capital requirements from intemal sources. Construction expenditums are expected to total 5451 million during the next three years. We plan to return to the capital markets sometime during that period in order to pmvide extemal financing for a portion of our funding requirements. During 1992, CPL continued an aggressive program of debt refinancing We refmanced $440 milhon of First Mortgage Bonds during 1992, thereby reducing our annual interest expense by $10 million. This process is expected to continue in 1993. CPL aho has authority from the Securities and Exchange Commission to refinance an additional $360 - million, which we'll pursue over the next 18 months if interest .- - rates a t favorable. Taking this appmach ultimately will save CPL and our customers even more in the future. , Additionally, the Company achived its goal of an "A" g, V7 r N.e. rating on long-term debt with an upgrade on ..d z ..n June 22. 2 - y Net income [or Common slock increased 2.b ? percent in 1992 to $202.4 million from $197.4 ; million in 1991. The increase was due pri-
#L manh to higher base revenues from increased sales to mdustrial and whobale customers Eamings ahowere faronMy affected by lower expenses, reflectmg lower admiriistrative and general, and pmduction costs.
Nig-- .;, , w( , c. .-
~.k - . ibb
. a.sks &-
b
a y s u n v b [ L uln:re < hange CPL is also attempting to reshape the culture of our Company. In a nutshell, J we're moving from a trad:tional management approach, in which employees follow directions i D from above, to an empowerment model, in which team members have the power to make d sions in the best interests of the Company. The program we have selected to create this culture change is cal led Managerial Grid'. At this time, about one-half of our emplovees have ten trained in Gndworks', Managerial Grid' or a corollary program, Front Line Iradership'. A motivated werk force is essential to quality customer service, yet keeping a work force motivated in the face of sweeping and uncertain change requires extra effort. In late 1991, an employee attitude survey identified several issues f a fecting morale _ Workplace Improvement Teams (WIT; have inwstigated the root causes behind these issues. and other teams are developing recommendations for action. To employees, WIT can be a major dnver of the culture change - the most visible sign of management's commitment to an empowered work force. Aditionally. we have strengthened our intemal teamwork with a business consulting group. Emplo x "consuhants " in pannership wnh other areas of tie Company, solve problems and explore new prognens A new environmental safety and heahh pohcy coorinates effons betwwn audits, pcreer st: mons, risk management and environmental, and ca!!s for more individual responsibility from each employee. r
y 39 7, . + ..
._ , y ,
3 g s
; ~; .
NNM.3
,. , y a. ,
- g, -
y.
~ _ r; ca e q k '" n l ""
, ;k=k . _ ;; }
< . , +x-4 ,[::-s y - e. .
x'%4 c.za
.hn.OYf b \
M
- h%l4.'4 .,5 .N
[
,y f '" ;,
,c + ,
4 J gj y . j 9 ?,x
$ M -j .
m f . 4 i x a i e w, h - L mk1 1h ' < cr Early oceans teemed with pirates, ready to raid the full holds of shromosing ships. As the utibty industn becomes deregulated raiders of a different sort will compete for our customers We are anning our+hes with initiatives to ; rotect our customer baw. In 1092. the Company's kdow att-hour gam was mostly in large industrial saks - an increase of niore than Mn milhon kilowatt-houn - from 3 63 billion kwh in 1991 to 4 06 billion in 1991 A large percentage of cpl!s sales an made to industrial customen - refineries and chemical plants
- With the potential to cogenerate (make their own electricity and steam as part of the manufacturing procnu CPL offers ahemaints and a partnersh:p approach to workmg with these customers that are currently more attractne than the cogeneration altemative.
A new init:ative wah our largest wholesale customer is another strong ind:cator of applying innova-tion to electric semce trad: tion. CPL and Magic Valler Electric Cooperative (which accounts for 80 per- I cent of CPI s wholesale sales) have worked to create dual nsidential marketing and lightmg pmgrxns l and plan to expand mio commercial and small mdustrial arenas i Add.tionally, joim inventorv and purchasing efforts re being developed between the companies that l mat allow Mapc Valley to redre its costs Strengthening a!!!ances, such as tins one, should be benefi-cial to CPI and a!! its wholesale customers. If den gulation creates a sudden rush of changes m energy supphen, for cmops or municipahties, strong a!!iances will allow CPL and our wholesale customers to come oct ahead. On.latt. 25.1992, CPL ~s customer sen~ ice center relocated from the field to the ilome Office. Dunng 1992, the center expanded to provule after-hour senice for CPI's southern Region, Lmio, Zapata. liebbronvdle and Port Lavaca m addmon to providmg 24 hour semce m the Central Region. 10
l r inking the customer records to a computer.tek phone network will panide more customer options for the future This system is compat2 hie with hlP and lends itself to continued development for such impmvements as sendmg customer orders into service vehicles equipped with data-receising radios. Customers have more options when paying their bill. In addition to paying by mail and paying at the area office. customers can pay at automated kical pay stations. The pay stations automatically deposit the payments into a designated bank via an automated clearinghouse. In the future, payments may be made by tek> phone to the bank; then the bank will transfer bill payments by an automated clearinghouse. Other customer senice programs. such as the individual bank draft, will be promoted in 1991 in a compeutive emironment, the workplace must be responsive to the marketplace. We must work as a team with our customers. Innovative technologies and aummation provide the Company with cus-tomer options that allow us to remain competitive and to provide the sen-ice customers desire. Te:unv,ork uith the uonmunity All this ta!k about deregulation and cogeneration doesn't change the fact that our Company's success is linked to the success of all South Texas. In the past year, the area has enjoyed steady growth. and we have gud reasons for optimism about future grmth. An economic development rider approved by the Pl!CT on Feb. 211993, should continue to enrich future Cpw.. industry growth and expansion. But the best customer senice team in the world can't Z * *%Qh continue to bring in new business if the state doesn't offer a high quality of life,
*N a weliciucated work force and a sound infrastructure.
In 1992 cpl sponsored an " Education Means liusiness" sympo sium - bringing 350 community and education leaders toget!d
., er for the first time. National and regional speakers detaikd
,s the effect of alucation on economic development: partici-pants were surveytd and from a retiew of timse surveys,
% priorities are being set and partnerships forgtd Together, cpl., community and education leaders will develop education and training programs that will help South Texas business and industry successfully compde in the world marketplace.
11
1 1 i { [ 1 1 ; a "Early oceans teemed with pirates, ready to raid ) the fidlholds ofslow-moving ships. As the utility 1 industry becomes deregulated, raiders ofa differ-ent son will compete for our customers. We are 1 anH5Hg oH15 elves Witti IHitiatlVes to protect our j Customer 11ase # ] i i Today our economic devek>pment efforts go beyond attending trade shows and pmparing commuruty ; profiles. Community leades join task forces with CPL to develop strategic plans and to identify and j address key issues in infrastructure, water and natural resources, and we share computer software that j funher defines each community's best strategic planning initiative 1 The Company offes several pmgrams that promote emironmental awareness with our communities. ! As a long-standing panner with the Gulf Coast Conservation Association and Texas Parks and Wildlife, j CPL is helping restock Texas bays with sport fish. Since the development of the first hatchery in the early 1
'80s, more than 100 million redfish fingerlings have been released. The Company has enteed into a !
joint effort with the Corpus ChristiJunior Irague to restore histrical homes and a park area near down- ! town. Included in the project will be an urban geen spa , an urban habitat for wildlife and an emi-ronmental exhibit that emphasizes energy conservation. CPI .:, abc building a bird-watching pier near j a South Padre Island wetlands area, and routinely panicipates in statewide beach cleanups and dunes l protection projects. Teamwork with policy-makers As a regulated utility, CPL participates in the public policy j arena as a normal pan of day-to-day business. Nationally, we closely follow issues such as electric and ! magnetic fields, as well as others imponant to the interests of our Company. ] CPL fostes open, productive elationships with regulatos and other policy-makes, helping shape j win-win solutions for customers and shareholders. We have strong working relationships with natural ; resource agencies as we face a time of increased emimamental agulation. During this period when the { Energy Policy Act of 1992 and the PUCT s integrated resource plan will be defmed and refined, it is more ., important than ever that CPL keep communication open !
-i 1
12 .j
1 i i i
"Early oceans teemed with pirates, ready to raid l the fidlholds ofslow-moving ships. As the utility l i
industiy becomes deregidated, raiders ofa differ-i ent son will compete for our customets. D7e are anHing alliselVes Wit l1 IH!tlatlVes to protect oHT l CHstoHier base., )' I I 5 i I Today our economic dewlopment efforts go beyond attending .rade shows and prtparing community . t I pmfiles. Communitt leaders join task forces with CPL to develop .;tr:aegic plans and to identify and l address key issues in infrastructure, water and natural resources. and we share computer softwa'e that funher defines each community's best strategic planning initiative. , l The Company offets several programs that promote emironmental awareness with our communities. l As a long-standing panner with the Gulf Coast Consen ation Association and Texas Parks and Wildlife. CPL is helping restock Texas bays with sport fi3h Since the development of the first hatchery in the early , Tos, more than 100 million redfish fingerlings have been released. The Cormany has entered into a ; icint effort with the Corpus Christi Junior league to restore historical homes und a park area near down- l town. Included in the project will be an urban green space, an urban habitat for wildlife and an envi- ! ronmental exhibit that emphasizes energy conservation CPL is also building a bird-watching pier near ; l a South Pad e Island wetlands area. and routinely panicipates in statewide beach cleanups and dunes pmtection projects. l Teamwork with policymakers As a regulated utility. CPL panicipates in the public policy ! arena as a normal pan of day-to<!ay business Nationally, ur closely follow issues such as ekttric and , magnetic fields. as well as others important to the interests of our Company. [ i CPL fosters open, pmductive relationships with regulators and other policy-makers. helping shape l ! win-win solutions for customen, ar d shareholders. We have strong working relationships with natural l l resource agencies as we face a time of increased environmental regulation During this period when the j l Energy Policy Act of 1992 and the PUCTs integrated resource plan will be defined and refined. it is more i imponant than ever that CPL keep communication open. l i l < 12 ) i
,pf. n 1
s '^
}* s M m. ,
6 '
',~~u: s p S ,,.3-?W!v.jt3%'$ gi .
+ %.
a k)g?:L J k:
' V: & ~
,,4k$ y
; , yr 4 ,.-g [;;p
.. w t l;. "]Q, vmqq-~, i
~e q
yg- cy- h~twh s Ski g [c gg; , s 1; , . , . . er N q. r ' ,,, b 8'
; VSp , b ;. Kpy %
m ns
;;. s us;LJs.uu.Au ~$ $ ~ W~ _
1'0 at d
- )i il 4
4
?
9
^
.a .
^
1 j J' .A bil *%$ s x [j/ g .em; ou& Tem' gronh Even before the free trade agreement was signed, the n gional economy ey
- d had prospered wis the Rio Grande Valley evohing into an industrial comdor. As the economy of
~
$.J Mexico continues its rapid growth, CPUs border cities will support that expansion with sizable gains in semces and trade. We expect sigmficant improvement in roads and other inf:2 structures --
items that will be needed to support the additional trade - and we're planning our system to meet this growth. Wui v! reguhu-nn invs The Energv Policy Act of 1992 contains a mixed bag of opponuni-ties for CPL Thile broad descriptions of transmission access, renenble energy sources, taxes, exempt whoksale generators and competition have been set in place by the act, rnuch remains to be defined by the Federal Energy Regulatory Commission. No matter what the specifics, the energ) bill will bring greater competition to the supply of electric power. In 1992 - the same year CPL's Laredo Power Station received a statewide awani from the 13
7; aW ? } ,_
- } ';
y, ! E q$ q - 3 1. -
',x ,_
* ~
(k.
,..,.?~ ( ?v" V 47 g,.
O$ ,
=
'; , y$
'T.
s:l% * , ~ a 'N y ' '(f , > ' 3.; ' ~.
<n ef 3
j N [E
~
Emironmental Protection Agency for consistent excellence in air quality - CPL faced incmasing Clean Air Act regulation. Our powtr stauons and facihties a e among the cleanest in the country. Consequent 4 the Company faces minimal change. Most of our energs is from natural gas; nuclear energy has no air emissions; and the only CPL-operated coal-fired unit - Coleto Creek Power Station - bums low-sulfur coal, liowever, the act apphes to all fossil-find units and will cause us to invest approximately $5 million for additional flue gas measuring. data colkrtion and reporting instruments at a time when we are doing everything possible to estrain costs.
'ete repicorv chmes CPL expects to see a major shift in regulation that will tie utihty profits more cknely to lerfonnance ne Company already is devekping perfonnance-based plans that will allow us to benefit or suffer, depending on market-driven lenchmarks such as IRP and demand-side management (DSiD.
Through sophisucated screening tools, CPL seeks the right options that ba!ance tenefits to ratepayen and stockholders. Addiuona!4 an IRP comparison includes an assessment of ernironmental uncertain-ties, such as impacts of the Clean Air Act. Rather than harmg a single leastest plan that is useful on!y under one view of the future, the IRP approach gives many least-cost actions that can be appikd to many different pictures of the future. Te our Company such an a;pmach makes gord business sense because it is flexible and responsive to change. 14
1 4 9 "Like the sailboat that gracefidly meets the chal- \ lenges ofthe changing wind, CPL's strength and ) adaptability ensure our successfidjour,tey titrough 1 the '90s." l l 1 l i i l l 7 o meet 1RP demands, our Company has incmased intemal cooniination and impmytd the { interrelationship of its functions, so that all pertinent information is bmught to bear when plan-
)
ning capacity needs for the future. We are wurking closely with our parent and sister companies on ; a consistent long-range IRP plan - sharing technical information, methodologies and estimated costs.
)
)
At its simplest, DSM means encouraging our customers to use energy mom efficiently - enabling us to defer construction of new power plants. CPL has 10 years of experienca in demand-side manage-ment thmugh the Good Cents program, which lowers demand by about I kilowatt per home. With a cumulative total of 6,000 Gomi (ents homes, CPL already has reduced generating needs by 6 megawatts. Deferred accounting Deferred accounting is one of the key regulatory issues unresohrd from the 1991 rate case settlement. (More complete infonnation can be found en page 29.) Irgal appeals of this have now twen presented to the Supreme Court of Texas, and we are waiting to see if they will hear the case. At issue is the PUCTs legal authority to grant CPL the $492 million deferred investment in the South Texas Project Electric Generating Station (STP) We leliew the deferred accounting tmatments, which am a part of the STP rate settlement, willbe upheld by the courts, or we will be successful in renegotiating our rate orders, so that them will be no material adstrse effect on the Company's financial position. Emiromnental changes The lon Hill-Coleto Cmek transmission line has been apprmed by the - PUCT. hut striking a balance between emironmental issues and cost to the customer continues to be a concem. The line runs near the type of habitat preferred by the Attwater's prairie chicken, an endangend ' ; species. In responding to concems raised by the U.S. Fish and Wildlife Senice, CPL agreed to move its j mute outside the existing habitat of the bird. Although the line has been approved, the PUCT has
-l requested CPL to continue negotiating re-routes near the Attwater's prairie chicken habitat and to !
develop a pmposal for assisting in the recovery of the bird. l CPL had to be flexible and responsise to the needs of our customers, the landowners, regulators and - l emironmental agencies befort the PUCT would allow the line to be built. This type of coalition building j reflects our pmactive response to addressing contmversial issues. l The horizon is full of promise as we look at the future for electric utilities. Like the sailboat that i gracefully meets the challenges of the changing wind, CPI's strength and adaptability ensure our suc-cessfuljoumey through the'90s. , I L , I l 15 i L l
,\
br nu. Cany Shantbn Teague 4 ard
; L-
*- Sandoval RKhanhosi Sxtn 5:me u[l[.r.c'. ' 'i 5 E .:
[, , Hunt Iktte Garcia W-A!Ien in , - i = kobert 4. W 4t!rn N {\@ h Pt te Mora . Jr. OE
' ;i
$3
. . y DQgj 1;;qq i-i Imd Neal.Jr. r4
[ 1 3. , g
+ si Rwhanh Pe! mon Monits Neal Jim 1. Peterwn
,# . 1! ( i r .
E '.'lutf A[ Yl I t ( .. "/. I 11 tre Rkhards e .r. : r ; ., l';- e i. % lame 1. Rk hardson u tv ie .,'%. ( ;T , , ;bI..
\.,)j-llL tt4 _
Rolwrt R. (arts Dasid P. $artin Pnsr a:: a@ .V I v ane i f.. (1.'7 4 J. Ganialo Sandoial h r Pr- h ' a P me r o 5: P. Rkhard $hamblin C.DasneStke
!" 1' t"" ' ' 943.,
a pn.,g P. Rkhard Shmblin B.%. lea ue Man l.. Ilunt n Prd :: a c I.m i , g, , , ,q,.,, , r
; ,,;.I Dale F.. Ward Mariig J, Berl>c 0
f' , , , u Nan wam emLn m , J. c.,ma, sande,ai
" "# Richard P. Aerret nsent 3 n.r pnxk ? and Dair L *ard aN s 1
! -. Melanicj Richarduin cm-t o ,m 1 !< b wn d.::e s tu e i u P w t.n:~ u.ar ;ws: irralicd M:1 hv xtos im 10
ENTRAL POWLMND LIGIIT COMPANT i i FinancialRmm !
- REPORT OF 31ANAGE31ENT ;
Management b responsible for the pnparation, integrity and objectnity of the hnancial statements of Central Power and 1.ight Company anell as all odier information containtd in 0;i3 Annual R(port. The financial statements have been j prepared in confomuty wnh genera!!y accepud accounting principles applkd on a consistent basis and, in some cam i reflect amounts based on the best estunates and judgments of management. giving due consideration to materiahtv. j financiahnformation contained elahere in this Armual Report is consistent with that in the financial statements. The Gimpany maintains an adequate system of intemal comrols to provide reason:dde assurance that transactions are i ewcuted in accordance with management's authorization, that fmancial statements ax prepand in accordance with ! generally accepud accounting pnncitdes and that the assets of the Gimpany are pmperly safeguanled. The system of intema! controls is documented. evaluad and tesud b3 the Company's intemal auditors on a continuing basis. Due to l the inherent hmitations of the effectiveness of intemal contmis, no intemal contnd sysk9n can proside absolute assurance I du! erron and irregulantin will not occur. Ruerer, management strives to maintain a balance, recognizing that the cost ! of such a system should not exceed the benef ts derived 30 material intemal control weaknesses hace been nported to management i Arthur Andmen & Co. was engaged to audit the fmancial statements of the Company and issue its report thenon. Their j audit w as conduckd in accordaxe with generally accepted audaing standa ds. Such standards require an examination of j w!ected transactions and other procedures sufficient to pnaide reasonable assurance that the financial statements are not l mulca<hng and do not contam material errors. The Report of Independe:a Public Accountants (kies not hmit the respon-sih hty of management for infonnation contained in the financial sta'anents and elahen'in lle Annual Report - r 4 . .
" .- A g/ ek . / d I ar e um Rlo5an!saa n nandP s n ,
he:,d. ' , J N1 Lwenru %a-r We ProidatJmance Dinw!!er s REPORT OF AFDIT C03BIRTEE , The And:t Commithe of the I;oard of luctors is compowJ of six outside directors. The members of the Audit Ocmruthe an Robert A. McAllen. Chainpan, Jim L Peter. son, Ruben M Garcia. H. Ire Richards, Pete Morales.jr. and
- S In> d Neal Jr. The Commithe held two meetings during 1992 The Onnmakt oversea the Compan)'s financial reporting pmcess on behalf of the Poard of Directors. The Gimminee a
d:scusses with the intemal auditors and tae independent public accountants the overall scope and spec:fic phins for their ropectne audits The Onnmithe also discusses the Dimpanyi financial statements and the adequacy of intemal controls.
- ] The Committee meets regularly wnh the Compan>'s intemal audaars and independent pubhc accountants to discuss the l results of their aud
- ts. their etaluations of internal controis, and the overall qua!ity of the Companyi financial n porting.
2 The meetings are designed to facihtate any pritate communication with the Commitke desired by the internal audnors or independent public accountants. a g
\*gh w/
k'kft A. slQ\lItil cI;31N130 kudit Qfilmdht n l 7 l
CENTRAL POWIR AND IJGHT COMPANY Statements 0 Income For the Years Ended December 31 1992 1991 1990 (thousands)
&ctric Operating Revenues Residential S 432,295 S 435,860 S370,613 Commercial 342,201 343,437 295,322 Industrial 240,341 221,S85 201,461 Sales for rewle 50,342 48,834 37,818 Other 48,244 48,714 43,306 1,113,423 1,098,730 948,520 Operating Expenses and Taxes Fuel 306,939 303,428 309,494 Purchased power 17,160 15.041 14,545 Other operating 184,701 196,893 226,378 Maintenance 61,399 68,092 61.683 Depreciation and amortization 129,131 1;:7341 118.074 Deferred STP costs - - (97,670)
Taxes, other than Federal income 40,343 62,453 58,313 Federal income taxes 77,272 75.985 95,263 846,945 849,233 786,080 Operating Income 266,478 249,497 162,440 Other Income and Deductions Allowance for equity funds used during construction 408 1,068 27,203 Mirror CWIP liability amortization 82,527 96,671 - Deferred STP carrying co ,ts - - 185,078 Other 890 2.522 (1,687 ) 83,825 100,261 210.594 Income liefore Interest Charges 350,303 349,758 373,034 Interest Charges Interest on long-term debt 125,476 124.987 126,584 Interest on short term debt and other 7,079 8,621 15,434 Allowance for borrow ed funds used dwing construction (763) (1,056) 26,146 131,792 132,552 168,164 Net income 218,511 217,206 204.870 Pre ferred stock dividends 16,070 19,M4 23,528 Net Income for Common Stock 8 202.441 S 197,362 $181,342 Statements O RetamedEanungs For the Years Ended Decernher 31 1992 1991 1990 (thousands) Retained rarnings at Beginning of Year .$ 854,659 S 875,521 8794.179 Net income for common stock 202,441 197,362 181,342 Deduct: Common stock dividends 193,000 215,000 100,000 Preferred stock redemption costs 112 3,224 - Retained Earnings at End of Year S 863,988 8 854,659 $875,521
' Ib ne aco.nyunying rues to finamiat statenients are an integral part of thew stainnents
CEN'IRAI. LOWER Avn IJGliT COMPANT Balance Sheets As of !)ecember 31 1992 1991 f Ohousands) ASSEIS Electric Utility Plant Production $3,413,183 $3,404,315 Transmission 331,569 331,361 Distribution 715,633 681,905 General 210,721 210.449 Construction work in progress 94,736 65.699 N Nuclear fuel 152,494 136,877 4,918,336 4,830,606 Irss - Accumulated depreciation and amonization 1,170,383 1,028,713 3,747,953 3.801.893 Current Assets Cash and temporary cash investments 3,666 3,152 Special deposits 151,589 591 Accounts receivable 20,296 13,881 Materials and supplies. at average cost 58,839 56,331 Fuel inventory, at average cost 29,259 26,122 Prepayrnents and other 2,198 2.582 265,817 102,659 Deferred Charges and Other Assets Defened Fl? costs 490,458 491,054 Other 48,113 32.093 538,571 523,147
$4.552,371 $4.427,699 he accompanying notes to financial stahwnts are an integra! part of tbv statements.
l f sl 19 e:
As ofI)ecember 31 1992 1991 (thousands) cal'ITAllZATION AND 11AlllllTIES Capitalization Common stock, $25 par value, authorized 12JKOJN O shares, issued and outstanding 6.755.535 shares S 168,888 $ 168.888 Paid-in capital 405,000 405,000 Retained earniags 863,988 854,659 Total Common Stock Equity 1,437,876 1,428,547 Preferred stock Not subject to mandatory redemption 250,351 250,351 _ Subject to mandatory redemption 28,393 35,331 12>ng-term debt 1,347,887 1,350,854 Total Capitalization 3,064,507 3,065,083 Current liabilities long-term debt and preferred stock due within twelve months 143,900 3,874 Advances from affiliates 91,766 62.148 Accounts payable 60.651 54,541 Customer deposits 10,633 9,920 27,224 29,389 Accrued taxes 25,470 28,954 Accrued interest Other 20,414 22.097 380,058 210,923 De ferred Credits 696,664 648,054 Income taxes 170,128 175,965 investment tax credits Mirror CWIP liability and other 241,014 327,674 1,107,806 1,151,693 S4,552,371 $4.427.699 4 20
CENTRAL M)WER AND UGHT COMPANY
$0$0!!$0ll$5 il5 l LOWS For the Years Ended December 31 1992 1W1 IWO (thousands)
Ol'ERATING ACTIVITIES Net income S218,511 S217,206 S204,870 Nonrash items included in net income Depreciation and amortization 154,716 148,012 139,722 Deferred income taxes and investment tax credits 42,773 30.990 97,223 Allowance for equity funds used during construction (408) (1.068) (111) Mirror CWIPliability amortization (82.527) (96,671) - Deferred plant costs - - (282,749) Changes in assets and liabilities Accounts receivable (6,415) 12,473 6,044 Fuelinventory (3,137) 1,175 4,504 Accounts payable 6,110 7,171 (10.988) Accrued taxes (2,165) 17,065 6,644 Other (23,708) 0 7,244) 57,829 303,750 319,109 222.988 INTESTING ACTIVITIES Construction expenditures (100,805) (98,150) (98,558) Alkswance for borrowed funds used during construction (763) (1,056) (946) (101,568) (99.255) (99,504) FINANCING ALTIVITIES Proceeds from issuance of long-term debt 435,497 - 50,000 Retirement oflong-term debt (405) (168; 058) Reacquisition oflong-term debt (304,650) (210) (37,514) Retirement of preferred stock (7,050) (7,050) (3,525) Special deposits for reacquisition oflong-term debt' (145,482) - - Change in short-term debt 29,618 21,523 (5.981) Payment of dividends (209,196) (235,674) (123,268) (201,668) (221,579) (120.446) NET CIIANGE IN CASil AND CASII EQUIVAIINTS 514 (1,725) 3,038 CASil AND CASil EQUIVAI.ENTS AT HEGINNING OF YEAR 3,152 4,877 1,839 CASil AND CASil EQUIVALENTS AT END OF YEAR S 3,666 S 3.152 S 4,877 SUPPIIMENTARY INFOIO1ATION Interest paid less amounts capitalized 8130,078 $125,760 S153,618 Income taxes paid 45,314 35,715 (8,390) ne accompanyins m>tes to Snancial natemems are an integral part of these statenwntt i 21
CENTRALPOWER AND UGHT COMPANY Statements O Capitalization 1992 1991 ' As of December 31 (thousands). f COMMON $"IT)CK EQIIITY S1.437,876 $1,428,547 , PREFERRED STOCK , Cumulative S100 Par Value, Authorized 3,035,000 Shares Number of Shares Current Series Outstanding Redemption Price Not Subject to Mandatory Redemption , 4.(XM, 1(0,00() $10535 10,000 10,000 4.2(n. 75.000 10335 7,500 7,500 7.12L 260,000 101.00 26,000 26,000 i 8.72% 500,000 102.91 50,000 50,000 Auction Money Market 750,(KU 100.00 75,000 75,000 Auction Series A 425.000 1(Kt00 42,500 42,500 7 Auction Series R 425,000 1(Kt00 42,500 42.500 1ssuance Expende (3.149) (3,149) i 250,351 250,351 Subject to Mandatory Redemption 10.05% 288,500 104J6 28,850 35,90() Issuance Expense (457) (569) j 28.393 35,331 ; LONG-TIERM DEHT T First Mortgage Bonds Series J. 6 %E due January 1,1908 28,000 28,000 Series K. 8 %% due January 1,2(KO - 25,000 Series 1,71., due February 1,2001 36,000 36,000 Series M,8%, due November 1,2003 46,000 46,000 Series N,9 %% due June 1,2004 - 40,000 , Series 0,8 %% due Ocmber 1,2007 75,000 75,000 i Series P. 8 fA due September 1,2008 - 75,000 ' Series T. 7 '/A due December 15,2014 111,700 111,700 Series U,9 "/A due July 1,2015 81,700 81.700 Series W,8 %% due May 1,1996 - 200,000 Series X,9 %% due November 1,1994 - 100.000 Series Y,9 %% due June 1,1998 150,000 150,000 Series Z 9 %% due December 1,2019 148,000 150,000 l Series AA,7 %% due March 1,2020 50,000 50,000 l Series BB,6% due October 1,1997 200,000 - Series CC 7 %% due October 1,2004 100,000 ! l - Series DD,7 %% due December 1,19'99 25,000 - l Series EE,7 %% due December 1,2002 115,000 - Installment Sales Agreements- Pollution Control Bonds ' Series 1974A,7 %% due June 1,2004 8,955 9,195 Series 1977,6% due November 1,2007 34,235 34,235 . 6,330 ! Series 1984,7 %% due September 15,2014 6,330 Series 1984,10 %% due October 15,2014 139,200 139,200 , j Series 1986,7 %% due December 1,2016 60,000 60,000 ; l Notes Payable,6 %% due December 8,1995 651 843 ; Unamortized Discount (17,923) (17,228) Unamortized Costs of Reacquired Debt . (49,961). (50,121) , 1,350.854 i 1,347,887
'!OTAl, CAPITALIZATION S3,064,507 $3.065,083 j W accompanying notes to financal statements are an integral pan of these r,tatements.
I l 22
i I CIATRA1. POWER AND IJGHT COM1%NY j i I Notes To FinancialStatements ! ! 1. SDIMA16 0F SIGNIFICANT ACC01~.NTING l'OllCIES Central hmer .md i.ight Company ICompany) is subject to regulation by the &curities and Exhange Commission l ; j MCL under the Puh!ic Utihty lhddmg Company An of P)E and by the Federi Energy Repubtog Commission i j UTRC). under the iederal Power Act and follows the thfunn System of Accounts prescribed by the FERC. The ! ! Compan) is suhiert to funher regubnon for rates and other matters by the PuNic Utility Commission of TexadTexas l Commission L The Canpany. as a member of the Central and south West System (C$W System). engages in l transaction.s and coordinates its acthian and operabons with other mei6ers of the CSW System The more significant ! j accounting p:dicies are summanzed bdow. l l Electric Utility Plant. E!canc utdity plant is stated at the original co<t of construcuon. which indudes the cost of j contraced senices. direct bbor. matenak m erhead items and allowanco for horrowed and equity fands used during o estruchon. l 1 .; Allowance for f unds tied During Construction. The a!iowance for funds used dunng construction ( AFLT)C) is I l , the resuh of an actoontmg pn miure whereby amounts, based upon the levd of construaion work in progros l <CWIPL wpresenting the imerest on inrnm cJ funds and a return on equity capital used to finance constantion, are , reDeced as crede on the simements of income and tharges to CWIP. AFFDC chies not represent a current source of l { l ush funds I nder etabbshed regulatorv rate practices. a retum on and recovery of such co<ts is pennmed in. deternming the rates charged for utiht) sen k es The gross compmite rates ;neraged 6A 9A and 9M for the l , veas lW2.1991 and im 'Ihe tas cffeet appliabic to the debt mmponent is recorded as a charge to defened l inmme tax npense. The Company exdudes from the cAulation of AFLT)C that portion of CWIP indaded in its rate ! ! hase for rate-making purpmes. l ! Depreciation. Pros isions for deprn ianon of utiht) ptmt are computed using the straight-line method generaDy at l mdiudual rates applied to the vanous dasses of depret uhle pmpeny. The annual composite rates ateraged 3M for ! j exh of the years 1W2.1M and F#t . l Nuclear Decommioloning.The Compan)\ ponion of the estimated costs of decommissioning the South Texas l Proica 6Th nudcar power pbnt is 5138 milhon. This cost esumate wd! he reucu ni and up<bted periodica!!y. The 1 Company is rnovering demmmisioning costs throuth rates over the !ife of STP. The funds received from customers f apphuNe to decommissi< ming are paid to an irrevocaNe extemal trust, j l Electric Revenues and fuel Electric ret enue generally are reco ded at the time bd!ings am made to customers on j a gtle-baling bae and the cost of fud is chaged to expense anonsumed The mst of nudear fuel is amonized to fud expense based on a rmio of the estimated Bru's used and available to generate dectric energy, and indudes a provision for the disposal of spent nudear fud. The Company recovers fud costs apphraNe to sales to wholesale customers, regubted by the fERC. through an automatic fud adustment dau e. ! The Company renn ers fud wsts in Texas as a fixed component of base rates. The difference between fud revenues billed and fud expense incurred is recorded as an addition to or a redaaion of revenues with a . j correspondmg entry to accounts rativaNe or other current habihties as appropriate. Over-recoveries of fud are
- payaNe to customers. and under-reancries may be bided to customers after Texas Commission approvat j- The Company sdis its accounts retch aNe, withota weourse. to C5W Credit. Inc.. a wholly owned subsidary of f Centr.d and south West Cor]nreion (CST t Deferred STP Costs. In acmrdant e with Texas Commirion orders. the Company deferred plant costs for STP j- Units 1 and 2 incurred subsequent to their commerv.ai operanon dates until retail rates indudmg the units in rate base i became effective. The deferred pbn! msts are amortized and recovered through rates oser the hfe of the pbnt in l macasmg auounN ke Note 9. Litigmion.and Regubtorv Pnunhngs for funher discussion of the deferred accounting orders.
.n l
- -. _ _ _ . . . _ . .__ _ _ - ~ _ _ _ - _ . . . . _ _ _ _ _ _ _ . _ _ _ . _
. . . ~, - . ._ .- - -
t 1 i I statements of Cash flows. Cash equn alents are considered to be highly liquid debt instrument 3 purchased with a matunty of three mombs or less Accordmgiv, temp irary cash investments and advanas to affiliates are considered cash equisaients. New Accounting Standards. In Ichruar lW2. the 1inancial Accountag 5undards Board ifASB) issued Statement of financia! Accouraing sundards RfA5) No. lW. Accounting for income Taxes, which supersedes $FAS Na 9i The f Comp.my wiU impleraent this new standard effective January 1. lWi and will not restate prior periods. -[ 5fAs No im requires a change in the accounting and reporong for income taxes from a deferral method to an ; asset and liahhty method for determining income tax liabinties. This standard wi!! not have a materia! impact on the . Company's ush Dow or resuhs of operations. h will require the Company to recogni/c addnional accumulated defened income uxes and a corresponding regu!atorv asset or liabihty to customers (in amounts equal to the requind ; defened inuime uses) to reflect the future retenues or reduction in resenues dut will be required when temporary j ddferences turn around and are recovered or senled in rates. ; in addition. this new sundard will require a redassification of certain deferred income tax hablities to liabilities to : customers to reCert the Companyi obligation to flow back to customers deferred income uses provided at rates [ higher dan the currem federai us rate. [ la Pre the FAMIis ueds $fA% k 100. Employers' Accountmg for Postrenrement Benefas Other Than Pensions, w hich esubbshes accouming and aT'orting standards for postreurement Irntfits other than pen . ions huch , postrenrement henchs pnmari!y mdude medical and death benefits paid to empio> ers after they retire. This new l sundard requ:res that the expreted a N of these benefits be accrued during the period employees render service to , quah!> tor benefits These costs u ha h are currently recognized on a pay-as-you-go basis. tou!!cd 518 milhon. 515 i; mi!l ion and R1 mi!! ion for IW2, FMJ and im The Company wdl implement the new standard in IW1 ; Bad on a pre!!minary retiew. the axumul.ned postretirement benefit obligation ( APBO) measured in accordance [ l w nh the new sundard is approxinutely 566 mi! bon The transihon obligation (the difference between the APBO and [ the f air ialae of anj plan asseb at the date SFAS % 106 is adopteth is approximately M9 mi!! ion. The Company [ could recognac the tr.ms: tion oh!!gation fully in P83 or amonize the transition obligation over the remaining service i penod of acth e participano or 20 years. The Company has not yet determined which method will be used. When the ; new standard is adopted m 1WA the addnional postretirement benefa cost in 1993 is estinuted to be 563 million if i the transition nh!ig.cian is awgnized irnmedutely (conskting of M9 million for the one-time recognition of the ! l tr.msition oh!ig;uion and M million for increased postneement benefit co<t) or s' mi!! ion if the transition obliganon l is amortized over 20 years. Until reguhnort pmecedmgs esbbbshing ruk3 for rate treatment of SFAS No.1M are i t wnduded, the Company is unabic to determme the financial impact of adopting SFAS No.1%. Reference is nude to t mnagemenfs Dhrussion and Anahsis for additional infonnation on the implemenution of $fAS No.196 [ Ralassificationieruin firuncial sutement items for prior years have been ntlassified to conform to the lW2 l presenution. l t [
.. [
s
.i t
i , 'I i i l f J i
?
l 2i [ t
CENIRAL POWER AND 1]GIIT COMPANY Notes To FinancialStatements .
- 2. FEDEREINCOME TAXES The Company, together with other memlxn of the CSW System. files a n>nsolidated Federal income tax return and parnapates in a tax sharing agreement.
Components of Federal inmme taxes are as follows: 1992 1991' '1990 fthousands) Included m Opera:mg lapenso and Tnes Oment $34,336 $+632 $(2,129 Dderred Depreciation ddferences 32,730 E 15 4340 A!!cmame mmimum in 7,617 (6.535i (5465) I'nhilled anenues 3,719 U.4tfn 111.035) Art'lX:- inrnm ed 260 3;9 (8390) Dderred STP cue (203) (22D % 095 - Other 4.650 11135 (113185)
+8,'"3 3MA4 101490 Deferred irmtment in urdiMITO (5.837) tSA4ti (6.1';3)
"",2'2 NSM 9d63 '
Inclutied m 0:her inume and Deductions Cunem 390 (1,%3) (790) l Dderred (163) 0 631 (160 22' O.126) (95j)' !
$**d99 5'iM9 $909 Total income taxes differ from the amounts computed by app!ying the statutory Federal income tax rates to income trfo:e taxes The reasons for the differences are as follows:
1992 % 1991 % 1990 hi. (dolla m thousmds) Ta at statuturv rate,s $100,643 34.0 $98362 310 $101. 21 .k0 - DJiererary ArlDC - equity (139) C%3) (al) (9.249) (31) Ammimon (IITC (5,"89) (2.0) (5,ND (20) (5.73D O.9)
%not LTIP amonimon (24.652) (8.3) (29.44) 00l) -
0:hcr 7A36 2.5 1051? 31 _ 7 568 - .25
$ "A99 26.2 SilM9 25 4 5 %3W 31.5 ITC deferred in prior years are i9cluded in income over the lives of the related propenies, At December 31,1992, the cumulatae net amount of income tax timing differences for which deferred income taxes had not been provided and the related tax effect amounted to approximately $15 million and 55 million.
- 3. IDNG-TERM DEBT The mangage indenture, as amended and supplemented, securing first mortgage bonds issued by the Compar.y,
- constitutes a direct first mortgage hen on substantially all electric utility plant.
Annual Requirements, Cenain series of the Company's outstanding first mangage bonds have annual sinking fund requirements which are generally 1% of first mangage bonds outstanding. These requirements may be, and have histanca!!y been, satisfied by the application of net expenditures for bondable propeny in an amount equal to 16M% of the annual requirements. Senes T. E AA. BB, CC, DD and FE first mongage bonds do not have sinking fund requirements. 25
l
.I At December 31,1992, the annual sinking fund requirernents exdusive of maturities, and the annual aggregate !
maturities induding sinking fund requirements, of k>ng-term debt are as fo!!ows: 'i I Annua! 5 inking AnnualAggregate . fund Requirements Maturkies lg
..ilhouWds). . . _ j
~
"tW3 Se.w '5 5981
1m u% 6m :i ms up 6r3 in ut SN5 [ 19tJ' d% 205.865 Dhidends. The Company's mortgage indenture, as amended and supplemented, contains certam restrictions on - the payment of common stock dividends. At December 31,1992. 5%7 mi!! ion of retained eamings were available for the payment of cash dividends to its parent company, CST. Reacquired long-Term Debt. During 1992, the Company issued first mangage bonds. The prareds of such offerings were used to refinance higher cost debt in order to lower the embedded cost of long-term debt. The prcmiums and reacquisition costs of reacquired long4erm debt are induded in long-term debt on the balance sheets and are being amonized over 5 to 30 years. Reference is made to Management's Discussion and Analysis for additional infomation on reacquired long-term debt. Due Within Twelve Months. In December 1992, the Company issued Series DD and EE fin;t mongage bonds in the aggregate amount of 5140 million to reacquire Series K, N and P first mongage bonds inJanuary 1993 Accordingly the Company redassified the bonds to be reacquired totahng 5140 million from long-term debt on the balance sheet to current liabilities long-term debt and prefened stock due within twelve months.
- 4. PREFERRED STOCK The disidends on the Company's $160 million auction preferred stocks me adjusted every 49 days, based on current nurket rates. Le diudend rates averaged 3.6%. 3.5% and 7.3% dunng 1992,1991 and 1990.
The Companyi 10.05% Series, 5100 par value preferred stock requires a mandatory sinking fund suf!icient to retire 31250 shares annually untd January 31. 2001, and a specified number of shares in each 12-month period thereafter. The sinking fund redemption prict is 5100 per share. The portion to be retired within twelve months is reflected as such on the balance sheet under current liabilities. In Febmary 1992, the Company retired 57.050,000 of its 10.0% Series Each series of pirferred stock, with exception of the 10.05% Series and the auction preferred stock, is redeemable . .at the option of the Company upon 30 days notice at the current redemption price per share. Redemption prices of - the 8.7M and 10.05%: ries dedine at specified inten als in futme years. The 1005% Series is not redeemable until 1M ne Company's three issues of auction preferred stock totaling 5160 million may be redeemed at par cm any - dividend payment date. Pnor to 1991, the premiums and redemption costs were induded in preferred stock on the balance sheets and anunized over 10 years In 1991, pursuant to an agreement with the FERC, the Company reversed the prior years' amonization of these costs and reclassified them as a reduction of retained earnings consis1ent with the current treatment of such costs.
- 5. SIl0RT'IERM FINANCING De Company, together with other members of the CST System, has established a money pool to coordinate shon-term borrowings through the issuance of commenial paper and from banks. Money pool borrowings are shown as advances from affihates on the balance sheets. At De(rmber 31,1992, the CST System had bank lines of credit -
aggregating 5527 million; induding the Company's hnes of credit. Shon-term cash surpluses transferred to the money pool receive interest income in accordance with the money pool arrangement; =I- 26
l l t 1 CINIRAL POWER ANilIJGIIT COMPANY i\!ctes l,a Finandalbtatements
- 6. HNANCIAL INSTRUMENTS The following methods and assumptions were used to esanute the fair value of each dass of financial instrument.s i for w hkh it h pramcable to e3nmate fair value. !
Cash. Temporary Cash Investments, Special Deposits and short-Term Debt. The carning amount appnnim. des fair value because of the short maturity of those instruments. Inng-Term Debt. The fair value of the Company's long-term debt is estinuted based on the quoted nurket prices , for the same or sinubr issues or on the current rates offered to the Company for the debt of the same or s' u nibt renummg nutundes. Preferred Stock $ubject to Mandatory Redemption. The fair value of this preferred stot k is estinuted based on the quoted nurket prices for the s.une or simibt issues or on the current rates offered to the Company for preferred hk uith the saine or smnbr remaining !cdemp! ion protWons. l The cc. uteJ fair vehes of ik tompan>'s finano.d invruments at Dtwmber 31.14)2. are as follows; Ii i Carr)ing iair i Amount \ alue mmsando , 04.ad ta pra ca4 mu simm s 35m $ 3 Wi j Wai acp N:- 1;t 99 Ftw suen a mo .n v ,
!m gtem de's Ur.C 1 424124
']
hcb ni + u suhec . i '.unla q redenpr. X3X 29.% an.M u m d 6! n J d n nl A k Ju: uhin nw.e r.mmbs W 1 Wh32
- 7. BENEHT PIANS i The compam , tot: ether wth other members of the CW system. pardcipates in a non contributor) defined benefit pension pbn cos enng substantial l3 all es emp!oveet lienehts are based on employees') ears of senice, age at retirement and tompensation The CST $ystemi fundmg poikT is based on actuarially detemuned contributions.
taking mio account amounts dedumh!c for income tax purpmes and mimmum contributions required by the IIDp!U)ce hetirement (re olne hecurity ACI E1I F-f. as amended. PerNon pun as5els Consist primardy of conimon su ks and shon-term and .atermedate-tem: faed income invesunents lhe (omponents of net ptTiolbc perNon cost and ie 3% ump l ions used m aCCouGUng [or pensions are as folloWS: 1992 194 WM kl..lbrs m busandu
%1 Perv& Pensnn es:
Smrc W $ 4.S34 5 t32i- S OS2 bcncs: x on pn wocJ iracht ubhpun 13,686 12F2 1194 uu! Petum on pbn asse5 (11750) G.Vi i 1.MI ) Net amorw .ad drinui (5.330) R2% lf 5 1540 's iko $ N.M
% pin lim om 't H.5% 8h K5%
tveterm G ra;www 0 mac, s- 6.0 6 il 62 he i or pxw 9.5 e 9o As of Decemher 31,1992, lW Jnd IVM, the pbn's net assets exceeded the total actuarial present value of accumubted benefit ohhgations. In Jdddion lo the pension pbn. the Company also pardapates with other menhers of the CST System in medical and deah benef t pbns for subsuntia!!y all actke employ ec3 and employees u ho retire from the L54 system. The Com;uny's cost of proenhng those benehts uas F" million in 17)2 cotering approxinutdy 1M acthe employees and 1.2W retirees 512 million in 1991, tot ering approximately 2.M active employees and Llm redrecs, and 513 million in Wo onerin;t approumateh 1M actit e employees anJ 1.1% retirees. Usce New Aucunting Standards in
, Note l for infomu! ion rebting to SyAS No NO. Imphyers' AHounday [or Iostrctirement llenchts Other Than T Pen $10ns. )
L
- 8. JOINILY OWNED EIRTRIC LTilIIY PIMT lhe Genpany is pan) to iomt ou nership agarments a ah non-affihated entaici such agreemend pnn ide for the joint ownenhip and operation of STP con @ang of two nudear generating umts. The Company also has a joint ownersh:p agreement with other members of ti e C5W System and non-affiliated entities to panide for the joint ou nership and operation of Okbunion Powers ution Unit No 1 rokbunion) and ib rebted faahties. The sutemend of income reflea the Companyi pmion of operating coso amiated with the pbnt in wnice. At December 31.1992.
the Company had imeress in the genera:ing sations and rebted facihties as shown below: e oklaunion
< daba m iMasm!u hJNiHYDKL M MlNC Y.Y b Umuhl't1 d70 UN II: fDM b b.M PLm a;um - m 2% % _
Pnyun. m 2' / Y sMer o! < pcs - m W 4
- 9. IJrlGATION AND REGIUTORY PROCEEDINGS STP Introduction. The Cwpant owns 29 2% of SIE a tw o-unit nudear p mer pbnt u hkh is located near Bay City, lexas. In adJ: tun to the ( umpmy. Houston bghting & Power Compan) iHl.Pt the pnied nunager, owns 30% the C t) of San Antonio Nn Antomm ou ns 2* and the City of Austin i Austin) owns 16 K sTP Enit I was pbced in senice m August 1% mJ sTP Cnn 2 was pbced a senice in lune P>R STP Final Orders. In odober !M the Teus Commiwion mued a final order BTP l nit i Orden whit h fully impk mented a sopulmed apeement filed in Februarv 19W to resohr dodets then pendmg before the Teus lominiwinn in DO embei iW. the Texas GCWi%iOrl Iwued a final order WTP Unit 2 Orden which ful!y hnplemented a sapulmed agreement to resolve a!! i< sues regarding the Company's investmen: in STP Unit 2.
The STP En t 1 Order a!hm ed the Compant .o increase retad base rates by si n milhon.1his baw rate increase made pennanent a 510; rm! hon interim fuse rate increase pbced into effect in March 19N and a 539 mi!! ion interim base rate increase pbced into effectin September 1M The STP Umt 2 Order prmided for a permanent haw rate increase of 5120 miSon diccure.l.muary 1. W91. The STP 1 n!t 1 Order also proviJed for the dektral of operating expenses and orning msb on STP Umt 2. A prior Teus uimmiwion order (sw tehTred Accouming bdow) had amhon7ed deferral of $TP Enit 1 msh. 5uch cosw are bting recos cred through rates mer the remaining life of S1E Ale the STP Enit 1 Order authmized use of Mime Omstrudion %k in ProgreswMeror CWIPT pursuant to whrh the Campant nrognind 53Mi muhon of (armng costs as original construcnon cosa. and established a corresponding liabihtv to customers recorded in Minor CWIP and other defened credib on the babace sheeb. In compliante with the onkT, carning costs co!iected through rates dunng peritA when CWIP was induded in rate base were a kun from cagomers. The loan is being repaid Ibrough low er rates from 1991 through F% which approxinutes the length of time during whleb the cat}ing cush w tre toikded [ rom custiceh. ihe Mirrur CWlP liahility is being reduced by the recogmnon of non cash income during the penod 1991 through I?n The STP Unit I and 2 Orders resohrd a!! issues penaining ta the reasonable original cost of STP and the approprime amount to be induded m rate base. Pursuant to the Teus Commission orders. the original mst of the Company's toul im estment in STP is induded in rate base. As part of the supuLied agreement, the Company has agreed to freeze base rates fn2m lanuary 1.1991 through FM, subject to certain force maicure esen8 indudmg double-digit inHation. nujor tax increases, extraordinary incrases in operating expenses or serious dedines m operating wvenues The Comp.my nuy file for increases in base naes. w hid1 would be effedn e aber 1994 and subiect to certain limitations. The fud portion of mstmners bdis will - contmue 10 be ad;usted fonowing the normal resiew and approval by the Teus Commission. The stipubted agreemens. as dm ussed abm e, were enkred into by the Company, the Teus Commission $taff Staf0 and a maiorit) of inten enors indudma major ciaes m the Company's senice territory and maior indus' rial cusioinch Thew mTr enurs D'preWn! a sigm[icant mabri!Y o[ the Company's cuNiomerK lhe CompaDJ and the Teus sute AgenaenTSA) reached agreemeno. whk b were subsequendy approird by the Staff and other mgnatories. w hereby the T3A agreed not to opp de the stipubtal agreements in any respect. except with regard to 28
t
' CENTRAL POWI:R AND UGIIT COMPANY Notes To FinancialStatements deferred accounting and rate design issues in the STP 1: nit 1 Order only The Office of Public Utility Counseh0Pl]C) !
4 and a coalition of low-income mstomers dedined to enter into the stipulated agreements. l inJanuary 1991. the T5A OPl'C and the coahtion oflow-income customers filed appeak of the STP 1: nit 1 Order; j in the Distria Coun of Travis County tDistrict Coun) requesting reversal of the deferred accounting for STP l' nit 2 and , other aspects of that order. In Lrch IW1, the TSA. OPUC and the coalition of low-income customers fikd appeak of i the STP linit 2 Order in the District Coun requesting rewisal of tlut order These appeals are pending before the District Q,un. If these orders are ultimately reversed on appeal, the stipulated agreements would be nu!!ified and the j Company could experience a sigmficant adverse effed on its resuhs of operations. However. the panies to the j stipulated agreement. should it be nulkhed, are bound to renegotiate and try to reach a rnised agreement that would ! achiere the same results. .mnagement bdieves that the STP l' nit I and 2 Orders will be uphdd. l Deferred Accounting. The Company was granted deferred accounting for STP l' nit 1 and 2 costs by Texas j Commission orders. These orders allow ed the Company to defer operating and maintenance costs taxes. depreciation ! and carning costs until these costs w cre reflected in retail rates. Deferred accounting had an immediate positive effect ! on net income in the y ears allowed. but cash ramings wcre not inaeased until rates went into effect reflecting STP in I
- senice (see NT Fmal Orders ~ alu el The total deferrah for the penods affected were approximately $492 milhon with an after-tax net income effea of approximatdy 5325 million. This total deferral induded approximatdy 5270 mi!! ion of pre-tax debt carrying costs. Pursuant to the STP l' nit 1 and 2 Orders, the Company's retail rates indude recos cry of all STP 1
- nit 1 and 2 deferrals os er the remaining hfe of the plant.
, in July 1989 OPl C and the 1SA filed appeak of the Texas Commission's fmal order in Distna Court requesting !
reversal of the deferred accounting for STP 1 nit 1. In September 1m the District Court issued a judgment affirming ; ] the Texas Commissioni order for STP l' nit I w hich was subsequently appealed to the Third Court of Appeak in l j Austin. Texas (Coun of AppeahI by OPl'C and the T5A. Oral argument was heard in Octaer 1991 by the Court of ] Appeah. The hearing of the Company'3 Sl? I' nit i deferred accounting order was combined by the Coun of Appeah !
- with sunilar appeah of HLP defened orders. ,
l In September 1992, the Court of Appeah issued a decision that allows the Company to indude STP 1: nit 1 deferred post-in-senice operating and nuinte unce wsts in rate base. However, the Court of Appeah hdd that deferred post- l in+enice carnmg costs muld not be induded in rate base. thereby prohibiting the Company from earning a retum 5 on such msts. Although the Company may be preduded from eaming a return on these carrying costs, management does not believe that the decision prohibits the recusen of deferred carr>ing costs as pan of tne Company's cost of service. Therefore, management bdieves that no write-off of deferred costs is necessary under the Court of Appeals decision. In October 1992, the Company filed a motion with the Coun of Appeah for rehearing of the September 1992 dwhion. The Texas Commission abo fikd a motion for rehearing in suppon of the deferred accounting order. Adthtionally, TSA and OPL'C filed motions fur rehearing requesting reversal of the deferral of post-in-senia operating 1 and nuintenance costs induded in rate base as well as any amonization o' deferrals in cost of senice. In November 1 1992. the Coun of Appeah denied each of the mouons for rehearing in December 1992, the Company and the Texas J Commission filed Applications for Writ of Error pentioning the Supreme Coun of Texas to review the September 1992 decision by the Coun of Appeah denying rate base treatment of deferred post-in* nice carrying costs. Additionally the TSA and OPl:C filed Apphcations for Writ of Error petitioning the Supreme Coun of Texas to reverse the Court of . Appeal s decision challenging generally the legality of deferred accounting for or rate base treatment of any deferred cost It is not known whether the Supreme Court of Texas will hear the appeah. If the Company's orders granting deferred accounting are ultimatdy reversed and not favorably resised, the-
, Company could experience a material adverse effed on its results of operations. While management cannot predict the uhimate outcome of the deferred accounting appeal. mmagement believes the Company will successfully receive approval of its deferred acmunting orders or the Company will be successful in renegotiation of its rate orders, so that there will be no material adverw efied on continuing results of operations.
Hl.P Arbitration. In May 1992, the Company and CSW entered into a settlement anterment with HU' regarding the Canpany's arbitration su t. In December 1992, the panies umsummated the settlenxmt, w hich induded withdrawal of the Company's denund for arleration, execution of rdeases of the various daims, dismissal of associated htigation. HLP's payment to the Company of 59 million to cover msts and expenses associated with the mauer, and the Companfs agreement to suppon a proposed arrangement for managing STP. The terms of the settlement willlure a - _3 favorable efied on the Company akhough the impact in any one year will not be material ! I r
l i I
' GENERAL ,
l The Company is pany to various other legal daims. actions and compbints arising in the normal course of j business. Management does not expect disposition af these maners to have a material adserse effea on the Company's result of operations. 1
- 10. COMMITMEXIS AND CONTINGEhT LIABIIII1ES i
lt is estimated that the Company will spend approximately 5183 million for construaion purposes in 1993 i Substantial commitments have been made in connection with the construction program. To supply a ponion of the fuel requirements of its generating plants, the Company has entered into various j i commitments for the pmcurement of fuel. Nuclear Insurance. In connection with the licensing and opeation of STP, the owners have purchased the ' , maximum limns of nudear liability insurance. as required by law, and have executed indemnification agreements with -} the Nudear Regubtory Commission in accmdance with the financial proteaion requirements of the Price-Anderson l Actc .l I The Price-Anderson Act, a comprehensive statutory arrangement providing limitations on nudear liabihty and , govemmental indemnities is in effect until August 1; 2002. The limit ofliability under the Price-Anderson Act for f licensees of nudear power pbnts is $7.8 billion per incident. The owners of STP are inwred for their share of this [ liability through a combination of private insurance amounting to $200 mi!! ion and a mandatory industry-wide l t program for self-insurance totaling 57.6 billion. The maximum amount that each licensee may be assessed under the industry-wide program of self-insurana following a nudear incident at an insured facility is 566.15 million (which amount may be adjused for inflation) for each licensed reactor, but not more than 510 million per reactor for each nudear incident in any one year. The Company and each of the other STP owners are subjea to such assessments, u hich the Company and the other oners have agreed will be bome on the basis of their respective ownership , interests in STP. For purposes of these assessments, STP has two licensed readors. The owners of 51? cunently maintain on-site decontamination liabi!ity and propeny damage insurance in the ; amount of 52 6 billion provided by American Nudear Insurers (ANI) and Nudear Electric Insurance limited (NEll). I Policies of insurance iwued by ANI and NEIL stipubte that policy pmceeds mus be used first to pay decontamination and deanup costs. before being used to cmcr direa losses to propeny. The Company and the other owners of STP j have entered into an agreement that provides for the total cost of decontamination liability and propeny insurance for .j STP (indudmg premiums and assessments) to be shared pro rata based upon each owner's respective ownership ,! interests in S17. [ t
- 11. QUARTERLY INFOIDIATION (UNAl'D11ED)
The fo!!owing unaudited quarterly information includes, in the opinion of management, all adjustments fconsisting
-only of normal recumng adjustments) necessary for a fair presentation of such amounts- ;
i Electric t Operating Operating Net ! Revenue 6 Income Income ,l Quarter Ended ihs.mds) ~' 1992 -f Mard: 31 52r,513 5.m.9/5 S31022 i June 3u 267.9 9 (q934 c,57 l kvadu M 33G15 95426 F3a26 IhtmNT 31 - T9.*% 63.323 53,5 % ! 1991 l Wch 31 $25.194 542,525 133.129 l JuneN 2 ,54 k226 %~'9 [ 5cptemte 9 32C24 8'99 M,151 Decemh131 269.226 W) f,1C j)
)
Information for quanerly periods is affeded by seasonal variations in sales rate changes, timing of fuel expense : rectwery and other factors. . jo ! I f
l i i i s t L REPORT 0F INDEPENDENT PI'BlJC ACCOUNTANIS i' To the Stockholders and Patrd of Directors of Central Power and Light Company: We have aud:ted the accompanying balance sheets and statements of capitalization of Central Power and Ligh' : Company (a Texas cor;mration and wholly owned subsidiary of Central and South West Corporation) as ofIwember 31, ! I 19')2 and 1991. and the related statements of income, retained eamings and cash flows for each of the three year, in the penod ended Ncember 31.1992. These fmancial statements are the responsibility of the Company's management. Our , repnsibilin is to expre3s an opinion on these fmancial statements based on our andits. , We conducted our auchts in accordance with genera!!y accepted auditing standards. Those standards require that we ; plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material i misstatement. An aud t includes examining. on a test basis, evidence supporting the amounts and dischsures in the : fmancial statements An audit also include 3 assessing the accounting pnnciples used and significant estimates made by l management. as well as evaluaung the on rall financial statement presentation. We believe that our audits provide a j reasonable basis for out opinion. l
; in our opinion. the fmancial statements n ferred to above p:esent fairly. in all material respects, the financial position j
, of Central Power and Light Company as of December 31,1992 and 1991, and the results ofits operations and its cash j a fi es for each of the three >vars in the period ended Iwember 31,1992. in confunnity with genendly accepted accounting pnnciples. Ah} - Arthur Andmen & Co I
~
Dallas. Texas February 12.1993
)
i I l l SElRTED FINANCIAL DATA l The follow my sciected !inancial dau are provided to highhght dgnificant trends in the fmancial condition and resuhs of o;rration for Ibe Company: 1992 1991 PN0 1989~ 19M nhaus.mA esas roe Flettrie Optraung Res enues $1,113,423 51,(DC30 5 96520 5 8363Hi 5 M 432 Net income 218,511 217.2+ 'uiro 101 1 % 819 Preferred 5:ock liindends 16,070 19.841 23328 li3;s 21525 Net inwnv for Common htmk 202,441 19' 362 1x1.312 123.223 135.294 Total Assets 4,552,371 UTM W2.213 3. % 155 3FOA32 Preferred S:ock No! huhjeet to Mandator) Redemption 250,351 2M351 2 % 351 250351 250.368 Suh! cct talandakin Redemption 28,393 3;,331 40584 43,503 4656 Img-Tenn Debt 1.317,887 13RM t 1363C 1,331 3 49 1325.9'~ f* Ra:io of Lamings to Fned Charges ($fC Methe 3.23 3 18 3.11 2.19 2.a4 Capitahzaaon Ratios 1 Common 5ttd Eqmty 46.9% a6 % 4 .0% d' d15 Preferred 5ad 9.1 9.3 9.i 9.8 10 2 Long-Term Debt 44.0 ul 43 6 n; n1 31
'l CENTRALPOWER AND UGHT COMPANY Management's Discussion and Analysis ofFinancial Condition and Residts ofOperations -
I OVERVIEW l Net income for common stock for the year 1992 increased 24% to S202 million from S197 milhon in 1991 The incmase [ in caminp is due pnmanly to higher kilowa:t-hour (Kwh) sales to industrial customets, lower non-fuel operaung and ; maintenance ex;rnses and a nduction to pmfernd stock dnidends, partially offset by nduced mirror C%1P liability. 3 amortization and higher taxes, other than Fakiral income. Average retum on common equity increased to 14 2% in 1992 i from 13.7% in 1991.1he Company took advantage of lower interest raks in 1992 and refinanced $440 million of higher : cost debt which nduced the embedded cost of king-term debt and lowertd annualinterest expense $10.2 miUion. -! NATIONALENERGY POLICY ACT OF 1992 The Energ Policy Act adopted in October 1992. significantly changed KS. energv policy, including that goveming the .! ekttric utihty industry The Energy Pohey Act allows the FERC on a case-by-case basis and with certain nstrictions to order -l whoksale transmission access and to order electric uhhties to enlarge their transmission systems. In addition, the Energy .I Polics Act revised the Public !!tility lloiding Company Act of 1935 0935 Act) to permit utilities, including registertd holding .; f companies, and nonutihties to funn exempt whoksale generatms without the pnncipal nstrictions of the 1935 Act. Management believes that the Energy Pohey Act will make wholesale markets more competitie. Ilowever, the Company is unable to pndict the extent to which the Energv Pohey Act will affect its operations. RATES AND REGUIATORY MA1TERS Reference is made to Note 9 of the Nuks to Financial Statements for a discussion of the Company's rates and mgulatory
+
matters. CONSTRUCTION PROGRAM } The Company's need for capital results primanly fmm its construction of facilities to proside reliable electric senice to i its customers Construction expendituns including allowance for funds usal dunng construction were approximately $102 f milhon in lW2 and $100 million in each of the years lWO and 1991. It is estimated that construction expendituns t includmg ART)C during the 1993 through 1995 period wdl aggmgate 5451 million. Such expendituns primarily will be made to improve and expand transmission and distribution facilities. These impmvements are expected to meet the needs of new customers and to satisfy changing mquirements of existing customers. No new baseload power plants am curmntly ; plannal until after the year 20M .}
- i In November 1940, the UnitalStaks Congnss passed the Clean Air Act Amendments of 1990, which place limits on the emission of sulfur dioxide (S03 aad nitmgen oxides from gas, coal and lignite fired generating plants The right to emit ;i
- 50. fmm existing generating plants will be established basal on historical operating conditions. These rights will be [
contm!kd thmugh a certificate of alknvance program. These amendments requim comprehensive miemaking by the ! Environmental Prohttion Agency (EPA) which has not been cunpleted. ! Subject to the adoption of new regulations and continued ruk making. this legislation is not exptted to haw a [ significant effx.t on the Company. Ihsed on the latest facilities plan, the Company estimates expenditures to be 55 million i during the IW3 through 1995 period for monitoring and emission nduction equipment for existing plantsflhe Company 4 continues to evaluate the new EPA mgulations and pursue the most cost effective options available under these ( amendments. The facihties plan prewntly includes pmhrhd cml and lignite f red generating plants for which the Company has imisted approximately $26 million in pnor years for plant sites, engineering studies and lignite wserves. Should future plans exclude these plants for emimnmental or other reasons, the Company would evaluate the pmbability of recowq of j these imestments and reord appropriate reserves. 3 FINANCIS AND CAPITALRESOURCES Internal Generation. Intemally generatai funds consisting of cash flows from operating activities, kss common and prefernd stock dividends, pnni&d substantially all of the capital equiremems for 1992. It is anticipated that capital - mqumments for the period 1993 thmugh 1995 will generally be pmvided from intemal sounxs lhe Company also anticipates - l that some exteneral financing will be requind during this period, howevet the nature, timing and extent haw not yet been detennined. - hmg-Term Financing. Inng term financing by the Company intohrs the sale of first mortgage bonds and preferred [ stock and the mceipt of capital contributions fmm its parent company or other financing altematives.1he goal of the . ! ,. Company is to provide a strong ca;stal structure. At ihrember 31.1992. the capitalization ratios were 47% common stock -} equity. 9% prefernd stock and 4% long-term debt. { The Company has ided a shelf wgistration statement with the SEC for the sale of first mortgage bonds in an aggmgate t amount u;> to $800 milhort 1he pmceeds of any such offering will be used principally to ndeem all or a portion of one or 32 I 1
CENTRAL K)WER AND IJGHT COMPANT Management's Discussion and Analysis ofFinancial Condition and Results of Operations 1 more series of the Company s outstandmg first mortgage bon 6 in onier to lower its embedded cost oflong tenn debt. The Company may also use the proceeds to redeem all or a portion of its outstanding 500,000 shares of &72% Series, $100 par value preferred stock. Dunng 1992, the Company sold $440 million of first mongage bonds under the shelf registration to refinance high cost debt with lower cost debt. summarized as follows: Debt hsued Debt Reacquim! series Anmunt Marv ity Series . Amount Maturity (m$m) .
. _( milljonQ BB,6% $2(0 ., .1997 ..W,8 %% $200 ._1996 CC,7 %% 100 2004 X,9 %% 100 1994 DD,7 %% 25 1999 *K,8 %% 25 2000 EE 7 %% 115 2002 'N,9 %% 40 2004 S440 *P,8 %% 75 2008
$440
- Reacquiretiin January 1993 The procwds fmm Series DD and EE were being held for reacquisition of Series K. N and P at December 31,1992, and are aflected on the balance sheet under current assets as special deposits.
The G>mpany educed its emkuded cost of long-term debt from 9.62% to 894% and kmrred annual intemst expense by $10.2 million as a resuh of its debt management activities in 1992. The company continually monitors the capital markets for opponunities to refund other long-term securities timiugh efmancings if market conditions pennit. Sale of Accounts Receivable. The Company sells its billed and unbilled accounts receivable to CST Cadit, Inc.. a wholly owned subsidiary of CST. The saks proeide the Company with cash immediately and educe working capital and revenue requirements. The average and year-end amounts of acmunts receivable sold wert $106.7 million and $95 4 million in 1992, as compand to $115.6 million and $101.6 million in 1991. Short-Term Tinancing. The Company together with other members of the CST Spiem, has estabhshed a System money pool to coordmate short-temi borrowings. These loans are unsecund demand obligations at rates appmximating the System's commercial paper borrowing costs. The Company's shon-tenn borrowing limit from the money poo! is $200 million. During 1992, the average amount of shon-term borrowings outstandmg at month-end was 549.0 million at a weighted average intenst rate of 4.1%.1he maximum amount of short-tenn borrowings outstandmg at any month +nd during 1992 was $107.4 million, and at December 31,1992. S9L8 million was outstanding. NEW ACCOUNTING STANDARDS Reference is made to Note 1 of the Notes to financial Statements - New Accounting Standards for a discussion of SFAS No.109, Accounting for Income Taxes and SFAS No.106 Employers' Accounting for Postretirement Benefits Other Than Pensions. - The Texn Commission which exercises primary jurisdiction over the Company's retail rates, has proposed a rule that would allow the STAS No.106 accrual costs in rates but would prohibit recovery of the transi' ion obligation. The proposed rule includes no provision for defernn; and recovenng the difference between the current pay-as-you-go accounting method and the new accrual method for the period beta een impkmentation of 5FAS No.106 and implementation of rates including such costs. lhe Company generally is prevented from increasing base rates until after the end of a rate freeze period ending December 31.1991 as more fully descnhed in Note 9, Litigation and Regulatorv Prowedings The Company is actively participating in the rulemaking process before the Texas Commission as the ultimate rate treatment may influence whether the transition obligation is amortized or recognized immediately. SUBSEQUENT EVEN13 feng Term Financing. In Februaq 1993, the Company issued additional first mortgage bonds under the shelf registration to refinance higher cost debt in March 1993 with lower cost debt, summarized as follon: Debt twunt Debt Reauguimt Series Anmunt Maturity _ 5eries Anmunt Maturity (mi!hans) _ _ (millums) FF,6%% $ 50 2003_ . _ .M,8 % $46 . _ .2003 GG,7 %% 75 2C08 0,8%% 75 2007
$125 $121 STP Outage. In early February 1993, Units 1 and 2 of the STP shut down in an unscheduled outage nsuhing imm mechanical pmbkms relating to two feedwater pumps. The Company miderstands that Hil; the Prokct Manager for STP (" Project Manager"K and the Nuclear -
Regulatory Commission ("NRC") are investigatmg the problem, and that the NRC will conduct a Diagnostic Evaluation of STP beginning in March 1993. Such a Diagnostic Evaluation typicallv examines the imnhtment of p! ant management and staff in ensuring safe plant operations, the effectiveness of their actions, and the root cause of any ncurring Frfonnance problems. The Pmiect Manager has also indicated that while STP has hen operating well over the past year, the Units have experienced anain personnel and equipment pmblems that plant management has hen working to cornrtlnit 2 mond into its schduled refueling in late February 1993, which is expttted to be completed by late April 1993. 33 i
l While the timing of STP l'mt l's mtum to operation has not 3rt ken detennined, the Company has bta informed by the Pmiect Manager that it ! is anticipated to be back to nomial geration as soon as March 19931he uhimate outcome of this matter will depend upon the findings of the ! NRC and any correctie action that may be nqui+d. During the outage, the Compays fuel costs are increased as the power nonnally generated , by STP must be nplacd from sources with higher fuel costs. lhese increased expmses are narrtd through fuel mcowry mechanisms. subject to ! approval by the Texas Commission and FQC. The outatte is not expected to have a material impact on the Company's nsults of operations RESUBS OF OPERATIONS ; Net Income for Common Stock.The Company's net income for common stock incmased in both 1992 and 1991. The 1992 incmase of l 2fA over 1991 was due pnmarily to higher non-fuel nwenues from increased !*h sales, lower eteratmg and maintenance expenses and a rduction in pn fernal stock dividends Pania!!y otT3etting the effects of the ahme items were lower Minur C41P hability amortization and higher taxes, other than Federal income. The 1991 increase over 1990 was due to additional revenue from rate incmases, the efftcts of rate caw witlements and increased Kwh sales. ; Ekctric Operating Revenues. Total electric operating rewaues inen ased 1,3% in 1992 and 15 A in 1991. The incmase in 1992 reDects .; higher base revenues of $9.4 mdlion and greater fuebreland revenues of 55.3 million as a resuh of a 1.5% gmwth in Kwh sales and associated . rise in fuel consumption The Kwh sales increase reflects gnmth in sales to lower-margin industrial customers primari!) in the petmchemical ; and petmleum indu3tries where sewral plant expansions have increased load requirements. The increa3e in 1991 is attributed to base rate increases and higher Kwh sales. Fuel and Purcha ed Pon er Expense. The 1992 increaw in fuel expense is attributable primarily to a 3M increase in fuel y consumption asvciated with increased generation nsulting from higher Kwh sales. fuel expense decreased in 1991 mainly because of a dechne m the cost of gas purchased in the spot market Purchased pmer increased in 1992 as a result of increased economy purchases fmm ; other power companies with lower cost generation. Cmts per million litu by f uel source were: , 1W2 51 W (as $2.13 S2 03 $2.21 bd 2.06 2 16 2 IS r
- Nudar 34 .% 39 i 4 T4d 170 13 1K' !
Other Operating Expenses and Taxes. The 1992 decrea3e in other operating and maintenance expenses was primarily the result of ! nduced admini3tratiw and general customer accounting and power station maintenance expenses. The administrative and general expense [ decrease is reflectne of nonrecurring nductions related to funding of the Compan>'s medical plan and the reimbursement of pmiously ( mcogmzed legal expense attributed to the HLP arbitration as more fully discussed in Note 9 of the Notes to Financial Statements. Customer , accmnting expenses were lourt becauw of decreased costs of se!hng accounts reaivable due to lower intenst rates. Power station expenses dttlined in PM2 due to the timing of mamtenance The 1991 decrease was a nsult of nonmcurring 1990 costs associated with the STP rate i cases and the Company's early retirement program. Increased maintenance costs in 1991 were attributable to additional schedukd l I maintenance at STP ! Depreciation and amortization increasd in 1992 due mainly to the addition of distribution facihties The 1991 increase as compared to ! 1990 was primarily because of Mirmt CWlP as well as the amortization of defernd accounting costs imm STP Units 1 and 2. ! Taws, other than federal income increased in 1992 largely as a nsult of increasing Texas state franchise and ad valorem taxes. The , , increase in state franchise taws was due to a refund in 1991 of prior year taxes. Ad valorem taxes were higher due to changes in the funding t system for public schools in Texas The 1991 increase was prima ily a nsult of higher ad valorem and Texas gmss receipts taxes. Inflation rates, as measured by the Consumer Price index. have averaged 4R for the three-year period ending December 31,1992. The Company beheves that inflaimn. at time knels. does not materially affect its resuhs of operation or financial condition. Ilowever. under , existing n gulamry practice. only the histoncal cost of plant is ecoverable fmm customers. As a result. cash flows designd to pmvide recowry i of historical phmt costs may not be adequate to nplace phmt in future years. ! Allowance for funds Used During Construction. The knver hvels of AFibC ndlect STP being pla d in senia. In addnion, AFEDC in 1 1990 reflects a reclassification of appmximately $27 milhon of AflMdebt to AFUDC-equity as a nsult of the deferral ofinterest charges in I accordance with the STP Unit 1 Orda ) Mirror CWIP Liability Amortization. The Company is amortizing its Mirmt CUP liability in declining amounts over a five year period. ! As a nsult, $83 million of non-cash eamings was reemnized in 1992. a decrease fmm the 597 milhon recognized in 1991. The hability will be .; amortized over the next ihme years as follows: 5'6 million. 568 milhon and 541 million for the years 1993 thmugh 1995. ! Deferred STP Costs and Deferred STP Carrying Costs.The deferral of STP Urut I costs assed in March 1990 when the STP Unit I rate increase was placed in effect. Additionally deferral of costs for STP Unit 2 ended in December 1990 as the STP Unit 2 rate increase became ! effstrve onJanuary 1,1991. Interest Ex pense and Preferred Stock Dividends. The 1991 det. ease in interest on short-term debt was due to higher 1990 interest : awciated with the settlement of Federa! tax issues. Preferred dividends decreased in 1992 and 1991 due to lower dividend rates on money ! market and auction preferred stocks and the retimnent of $1million of 10.05% Series preferred stock each year. .[ t J 34 l
l CIN1RAll'OWER AND 1JGirl'COMPANT ! Compandive StatisticalRecord l 1992 1991 1990 I AVERAGE NU311tER OF CL'S11)MERS ! Residential 485,713 476,555 468,675 Commercial 72,649 72,153 71,9235 Industrial 6,350 6,441 6,471! All other . 3,585 _ 3,540 3,5FS Total 568.297 558,689- 550,652l NUMllER OF CUS11)MERS - END OF PERIOD 576,840 566,066 557,882 SALES - Kill)WA1T-1IOURS (Thousands) . .
'l Residential 5,407,570 5,476,497 5,368,123 Commercial 4,181,265 4,214,497 ~ 4,160,083 Industrial 5,800,451 5,353,753: 4,812,279 All other 1,783,966, 1,880,880. 1,381,833l Total 17,173,252 16,925,627 15,722,32$
REVENITES (Thousands) Residential S432,295 S435,860 $370,61% Commercial 342,201 343,437 295,322 Industrial 240,341 221,885 201,461 All other ... 98,586 . 97,548 . 81,12d Total $1,113,423 S1,098,730 $948,52d RESIDENTIAL AVERAGES : Kilowatt-hours per customer 11,133 11,492 11,450) Revenues per customer S890.02 $914.61 8790.77 Revenues per kilowatt-hour 7.99c 7.96c 6.9C SYSTEM CAPAHIIIIY AT PEAK (Kikmatts) 4,165,000. 4,005,000 4,025,0001 SYS1131 MANIMLIM DEMAND (Kikmatts) . 3,347,000 3,291,000 3,110,000 FI'EL EFTICIENCY DATA i Average Btu per net Kwh 10,404 10,309 10,32d Cost per million Btu $1.70 $1.73 S1.87 Cost per Kwh generated (mills) . 17.72 17.91 19.4@ HAIANCE SIIEET DATA (1housands) Electric utility plant S4,918,336 S4,830,606
)
$4,738.,187j Annual constructed additions -101,972 104,223 459,615 Accumulated depreciation 1,170,383 1,028,713 892,686 Percentage of accumulated depreciation l 1o original cost 23.80% 21.30% 18.8d CAPITAll7ATION (Thouwmds) l Common stock equity $ 1,437,876 $1,428,547 $1,449,40s
, Preferred stock .278,744 285,682 290,93%
long-term debt 1,347,887- 1,350,854 1,346,58J I I
. I l
1989 1968 1987 1966 1985 1984 1983 1982 460,522 452,707 446.548 441.M9 432,906 420,487 407,006 394,437 71,209 70.285 70.008 69,719 68,720 67,217 65.359 63,581 6,488 6.570 6,548 6,713 6,827 6,717- 6,652 6,560 3,401 3.320 3277 3254 3.268 3,206 3,185 3,174 541,620 532.882 526.381 521,535 511,721 497,627 482,202 467.752 549,301 539,896 532,546 527,392 521,281 507.402 492.712 477,892 5 2 77.961 4.945,741 4,630,356 4,567,961 4,469,884 4.209.063 3,863,798 3,988.111 4.086.174 3.898,835 3.736.151 3,734,321 3,664,447 3,452.989 3.268206 3,278,005 4.587,663 4,244,925 4,325,326 5.521,265 5.985,326 6.280.810 5,910.999 .5,532,386 1,354,976 1,528,082 1.336,327 1.816.470 1,501,630 1.166.087 1,116.201 1,111,941 15,306,774 14,617,583 14,028.160 15.640,017 15,621 287 15.108,949 14,159,204 13,910.443
$312,850 8295.167 S273,223 $284.345 S295,038 S298,186 $286,182 S282,616 254,304 244,08') '231,004 241.773 252.334 255,879 249.255 242,215 184,871 180,345 198,481 254,626 300.915 342.900 336,604 303.933 84.560 70,838 65,556 79,231 76,621 75,219 74,240 70,422 $836.585 S790.432 87682 64 $859,975 8924,908 8972,184 $946.281 S899,186 11,461 10,925 10.369 10.338 10,325 10,010 9,493 10,111 S67934 8652.00 S611.86 8613.53 S681.53 S709.14 S703.14 S716.50 5.93c 5.97c 5.900 6.22C 6fd)c 7.0S0 7.41C 7.090 3.964,000 3,836,000 3.644,000 3.661,000 3,587,000 3,589.000 3,541,000 3,432,000 3.145,000 3.013.000 2.881.000 2,974.000 3.022,000 2.832,000 2.869/XX) 2,825,00()
10,402 10,085 10,1M 10,174 10,040 10,298 10231- 10,236 S1.99 S2.11 S2.08 $2.33 S2.89 S3.27 $3.47 S3.51 20.70 21.26 21.17 23.70 29.01 33.65 35.47 ' 35_.97 S4 298,859 S4.169.637 S3.853,568 $3,426.969 $3,056,619 $2,758,977 S2,385,489 S2.110.440 141,722 329222 444,723 433,061 456,151 386,952 286 524 237,251
- 769.880 658.015 589.909 546.285 503.405 458,834 418.037 377.738 17.91% 15.78% 15.31% 15.94% 16.47% 16.63% 17.52% 17.90%
.S1,368,067 S1.294,844 S1,159,550 $1,033,443 $971,443 $851,805 $723,254 6635,049 294,154 297,334 213,449 913,060 - 181,979 181,989 182,024 132,770
- 1,331,349 1,325,977 1,179.456 1,048,987 981,481 866.551 728.149 647,404:
36
4 Shareholderandhwestorin ormation PREFERRED STOCK TRANSFER AGENT / REGISTRAR OF STOCK Central and South h1 Senices,Inc. P.O. Box 660164 Dallas,TX 752(fr0164 SilAREll0LDER SERVICES The shareholder senices staff is available from 8 a.m. to 5 p.m., Central Time, Monday through Friday to answer any questions you may have. If you have a question, write: . Central and South West Senices. Inc. ShareholderSenias Depanment P.O. Box 660164 Dallas,TX 752(fv0164 or call: 1400-527-5797 (outside of Texas)/1-800442-1718 (In Texas) We recommend that you send stock anificates by either registend or certified mail. FIRST MORTG4GE BONDS TRUSHI The Fist NationalBank of Chicago OneFirst NationalPlaza MailSuite0126 Chicago,IL 60670 Richard D. Manella-(312) 407-1841 ADDITIONAL INFORMATION This report is pnpand primarily for the information of security holders, employets and customers of the Company and is not transmitted in connection sith the sale of any security or offer to sell or offer to buy any security. Copies of this npon and the financial statements included therein and the Securities and Exchange Commission Annual Repon on Form 10-K are available toi all security holders of the Company. A copy uill be mailed to any security holder or other interested pany upon written request to C. Wayne Stice, Secretary, P. O. Box 2121, Corpus Christi, TX 78403-2121. central emt and ugn compe 5 an qual grunin emphu. 37 e
,,.n .. ....---,.r--- - .
r- w--- ; mp_o p.n.m (~.m.w; ~ s ry y- -
~~ ' - '* > '~ jf:. ,
l r, _) } , y .
,:.n _
s,.W~s W, ,: s . y a c,
< r
~e e' sry..rc
,n - ;'s:.
I - 4 4
--(
W i
".v :
;y '. . qe.m s
..s ; z, e* ~ ..,?y " p &
4 9#. . .f J 4 -' .. W r f. Y y ;.l To n e.M T'
.'.' 3t#
I' ,ghy iE4, . ,W 4 ' ' $ ,, ..,Mj;;. 2 w ., y 3 7 ., t c
+
'y l c' t .
"4 4
\ M 't' 'h' ^- _, (g;.
^
;. '- s 2
^ ?C'[;
- t
'.._,'e jg f
, _ l ,1
;~ ,.
a
- c ^
t ,.+ e
.v , [
- f. $! "
, .g ' lf 9 Ry_Q, y
We, A ~ ~ c. 4-1 _N M ,N% A M v w g. s_ , k > p+ : w
; .w _
- N -~
"i j
&e c
<. 3
.G^
^
8
- %Jg fyw@~!g?w, wemww :p Q9 lyQ y.j p s ya w M:wmyf&g:Qy M.e m :nh(y ; ., w -Q)w f x3. yw L m w
F p
'N< \ *-
% , 7 N Q f v &Wwgq w:f: Q,if y &p& pNi'y f' %A %Q y
%s: i i, ~
r~ R:nW
%; , an;r{ m w 4 % A&g&% 4m ga~:w,.. w,W:r- m.
. vqx:h;;)WWM4 wmse 4 ni m en , !aw. .,m . :.w%n
. ~,;,d"
~ ~
(' q;p jyVQ;n;w. h9;l:&,M.hW J ' lR.y r ;~-* Q. o~s.% j V f * * ,~v 1: f QM i. %m Q)&n. y,;c - f.3..-: : prs. %. . l-
,wti > @ %, . y ' . _. C' y 4 c. Gm&g?. w p ,.ly ;C.o g.c.q W.Q
- e. . w h.h$, t s u- '%-
, , 4 h w.,j 9 g, ff, .
f 4r y$lhf+ .A < -s , ' b 1 a
,%a .m a w> g. ;, ,,
3~ m dl?A a %p k,N v g y, l 4gm% qw ,
.,s s .
. ^+Rig %1 a,,:.a w ,-
3 > '
'q,..,4 k ' . ' _
,.xa _f 7 I g
,.d; gw&M&,y& f2RffilD% .$ r' , dQw : ' W. k ? :' O , %N "
~*
% M ^hm% '
A#
& Yh%+ \ < We;M&$m g j + .1 M Mwge@m .%pg#M i
9 y .
.2 @. . v . ,_ -W %g4'..
lA MFQ@cyh yhk M $$ [ )g g* US,
%hn , n- _
%yh' - yl,1 ~ yy;fm llql, . , p
.nce cyp e
- Il ' a #GSM b . . gq ) . ' w - $,hb s~w. - MD e, i, m m!yan}a 4t y 1
,3.y;' f~
w ,s .
'}j fi,
+e y
' %' ? h. >{';% . 4 'b p
f's e.g ,m g
.h pi .
- Sb -
%fhijff gggg. mp -
v;- .y 3k C-'p @
,. n Gy$'- A O O .% -
i ,. {\- 0% i { M %- ,' _ gM[&w
.e
-4 :as
.g,, s gr u h. >
t 4 x y % / mNiQ _dym,. ; T '% ' - %,
- i ['
b i ~ Y ' k{ a, ..
~ d_ k, hh ( h-aa_m m,d o
g is ff) ' , 9
*e mp v@ , +gk;. .
Q-v%%% $Ud"N""WYh ~
.f a ,X@N&m-m --
c ;[m.. Nn u
- m w
wm, e: YDI'!'w,5y 0 , $?
' ' %6
,m
..WE "
me- n_ m[3%*h t.m Tosu# q t (W i h F 4 %s
.w wmn y.ww 4,
m ~ : a
$$ I? k h N ! W * * ' . . , ,
WYl
% m m .~ < w hhh #%-%#~%wv% f k hk -
ND5
%,4 eggy ~Mg' y]
~
d- '" gy W-...an2 g%g%,m@hhw. wmn , .. n -y smsw ~ , n - .. m=vmn
, . m_ _ ~~~ w ,o #m AW y' % #
? ,'
T%mi&% L '&gT~1_ : g kRipWn g%e%gn x 4a## . n p
. - ~ Ww~QMWW ,2 %annugym n g x,,,pycn.pf:R gm Q wg ym y;4.
+
f;ry g. g ,y. . A w &.apQeM 3; m gy
. ~ : ;. .n n. ,
my .. MQQf4.-~%$F% u . eug . - 9 - w q. Av - WD :. % f '
- k f5&' W v? RfN"k
' W % je W i m. ' a',
..'W5%%_. _b W " j4& -
R wm p[ .i n. VN m T: .' , (N / . gw . M
. -w. g..- .
g mqy s e g ~ a2
, ,._. -[ ..s- .
4 a .',
. . 2:W',, .;;e.: , .. . .
'M ' w.. .. - *E/:
-',c,'. .*. . . .[u( .'.,;- ';."- 4...'~ . --
. ~- :, '.A ,
d' ..3 , " .. .- t ' !.1 9'..c', ! N Y . i. 4,s .-'. ; ; , . .. +. . - ' ' M' yr..,%T..: +V .'ng ,< 'o_9; *. ; % e e
- .< , ;, .,.,' t ..w-' .' ,, ; ' '.'..Q,.,
.[f'.. ._ '*w':'i a .a a
.' % .n., : .n,u ,,_.
. :., t i
...&..2, ,.,.c
.t
.4.....'n; .r..,*_. ^..i...++ "-' '
a ,,- ' :'.,B,.,, ; n.-... . ' ...,f".<.'w.. s
. ,a
. ':..\c. ;,.,a, ..:-' ... .'L,. ..'.',i -
.' , , . "; :,1't.q:
4 c, 1m, , .c. a: ; ;,J, ,,. . ';:, ,,e%.~t 4,,. r.
".a ' '4.q' . . .. . ' s?
i
"}' ..; :.M':..'.',.,.,'..:-c' "2..
2,... y ; . . .. y n_ -
. .; K;; ', :.' .h'" , 4:
3 "
' ,:' v . 3 . '" l % 4, n'y. '. & * ;
. , ' . ' ' '- '-: .' . '.' ' ::,:,- .. ,% :. , 1; :. ' y'.,?,;. .
' M 3;R! . . 'L', ,;,5 :*..,.-) \
^%, l'. r. - .
%> . . . l. ".%
" 7.. .e.C *: r Q;C h *. .,,t*i,. . . ;' , . . ' . - 't j ' L ,; '<;,e z: ' ' ;a-'". ,3 -l;, , . --:. : .' . ' .<
* *: . ,l::1
\ t h*4 .-
wn ,.% _
< .. ' . . *: s a ~.
' '?
'.i f.-.f,*.r.'..C,,'.q.
^ ', y w F . '.'h-~
'.%. ;p'n ;; y4 . * :.;o ft: , . ' :, t' 1 L' 9 ', . . D. .9 v
- v .
i,R i . . _. ;. ,.- {[h.; . ., .; .f 'g, g f ,' ' .'. '-'4 ". . . .. 4 it, !; r[,'t' m..L ..x. tti er.,' 'q,'""..;. ;, ,i g o,7 g,;.p . f; ,% ':,' ' ,.. ,,, .' .' q:.. .
" . h :s.g ,
mv ..: ,~. .yw,.-p. : . Tp%.;,,;< ?'l.p'^ i
'Q W g- . . , , -.,.g.g . ... .'Jr:. ., c' ;.If. :lr : :
'f l -
.f*,f.-h:.l"N., . < . . - f.*[f., l , . 4& .):*.1. ,v # ,' f,,.i
$. h.'c\,$y olfp}i : . .- ,.g[. :; , : .. .. .lQ ' L.' _"' -? ,.. - ;. :;;;. _$.h'f.'.i ;ki :l'; :s - ; pf.'.' [; 0.1 _ j, 'y.
~
. .:. i' f: x .f}' .
' -l(() [f..;,',,l,..,.
, , . g
. ., .}hy , ,
n '. ;f 5 .w y Y: l \ ^ l ' ~
' , ~i :Q' .' ':.f,h',,N?rl 0;f , N ,l.,.'. *' y. - $;,' 5,,,
1
'-l-' . ': s : rk ll ' E 1.{_
- \ .. , l '5 ' ' ' . .. llThl .l;.bl;:f Y4l f. .
. ') .,l.; ],, '.g',
7.0 ' ,' , ]I. ' * ,[.,[ [ L , [ l ,' 4 1 ' jf;} ]~;'_' ,[ _ ? .I l./ ', J '.[f- ,.p . I i', 'N% % ,b.'.
, ,d( '
,'5,'{ ).'( '[. [,fg. .[.'.'
l .' : * ,' f '.: , ' . ' '
.3 <.
. . . . -. '. : . , . , . , . ,; e. .c t, . . . . g % . . , ,..,.,,..,c... .,. ..;.4 ; #fp ; I 4c;.. , agg . . ., .;.3p;. . , ' .
;? ' o, y>::y d. . .: . .
- l. ; .*'.*.- '-
W.' .N '. , [. N ... , _.;
. _ . l. "_. ' , _ _ _ _
- l. '. ., f?.., .
, !; .f
.M',.- .s-j. ' " _ :.,,, ,; - ,
.,._o
, . ;g. g
..,,,,,..g.,;,,- -, . - ....; . - p .3 :;f, .p,G . ' , . . - . , ; , f, - 7,g,
,(,q..,...: r. . r., . y : ' . f 4 .s. ' q. ,y;, y,
;,. g
, p Mlr .. .j 7, 9, g. .g: Q h.'. g .-
- . ' '. ',, '...,,, .....: .. . 'g'
.g; ).q ..pp* . ; ;'?j ,, , -ll ; 4'4, - ;. . My,-
; ,,,) f. .;._. .. ', o',a, v.\i:
-:, . .L.:.v..' ,y ., .^'.;,:'
- . ; Y**. ', ;.k..;c;,e . .p:. 'f. .;%' f.Y
*T.,' . ., ,
.:. , ;i ' T:-
4;;.,. ... .; . .. .;.p',,1.;1. , :. ; ., _
- .,:,. et
..~... . ,u, y ,:: ,c,Te ?"Y c,,.,:.',..4. , - < . .g .m,.,.^:.
+
, n.'_: .'" - f. 'y. .:,a*h ::', p'g.p3,
,,.4.-
. .i....
..' : .. - ' : >'..i,.., ye
,.. '_,_ 9' . . :.,; . ' - y,;_ Q';;; .sf. r.r.,,g.:' , , 3. .,wj,.,%,,Q.".
, ep p +;;.,;".Q,:.. ' . . ' -- ,- . .. .- , - :. . .
., "J, )-.. "; . .' e . . - . ; 'd.x.'e..
j, ' _ .; ._'r.,,,;.;'. _,._';... ;-,.."'__9.j.g,Q;, ct.y'.,._. 'f',a9 ',% <' s
^;.'. '
- _. '..: '. .:, :- _ . ..a. ,
n, J +: .
, .: ~, e ,:t _,y y V,
..;+ .,;_ , . , ;;: . . t.,e.,._,.v,,,,: F. y < ;Q 7_ . ,, g ;z,.;f.;,,
, ., ,9, .
4
;_{. v . ,.p,g.: .y"..,;;. _ ,; _ .,:.._ . - .. , . , , n, y 1.r,; y,
- i., -
~. ,
..s.
yn<ye 4g. 9w _n
".s . .
, - . . , . . . . "
- n;< :. ., ,. ' . . : <
. . ~ =f. . . .' ... - . - . 3 _ p . :', ., .F: 3. j:,,, .,.., -,, . . - , . ..
q-' - : - - .
;,.,.",.-, ' , . .: o
, ' ' . .,..,. ._. . . . 'r . ',* Q. pi . ;Qf'.g'.".,- , . 3,.
i, ,. *4 . - . l *"% .k' g '*, .,;., .,.:, c ( ;9j P, *
,, .}.
. . . . , , - .w. . .. s., aq '
c'.-
- p[. ('*.ei. n r as
. . . . .u g.. , . . . . ' f ;' ,.e ,t , . .,' . . . , .,3y 4.,,< . y; ,- _
., ,, ,>) ,
, . . , - .. ?'- ,
,,'. ,.,~ # .
r 'f,' ' ',.. . . . . , , . ', - '*;- <, . . . . , ' . ,. .., .. ....- -' ..--..:*tl{.>:s',,,, , 'n:w. n._,... ' ..u.......;.. . . -,. - .*
.'r=.. n:p.:N;L: ~, .. ; <-.a7. i s.,,.v, ,og ' ." '
A.p..:.. -.:.Ng 3.g' . .:[ ' , * . . . . . ... . ., . . ' , . ,' .. ' - - '. ,* c .. -
; . : . . . - ~:
7- pp 'is :: 'i ;; f.cu. c, ,;.., . ,,; , g -
. , ...,._,,/i "g ;. i , . ,
',,.- s*7 ,,.;
. , , j ',, .o,' , l,' .'.a (c f: . . . : .,,,,' .- ,
..,%.. ;. ; ~ ; :. / ', . -d..
- / e ;, y,,. sw-;*
- q. :;c.f.-e: .n. , M
,ty'4,< /l'.
b .. y :D. ,%, t
": *;' ,', 'j b'. 4,t 4W(.,
,s
., , . ,, ,y:,y.qq9'...
. i
','g. J ' - (>lM.: ;' :
" 'a .;<, . -
s- c '8 s c c r. '
,$.' [V ',7 ' k,( '[. ; ail'. "'., *'$ ' -M<c
'r j"..'ig.',,,, * . . . , , ' ' - : .* l: -. .-
- '. ..tY.'. ' ) M ,. . . .
* , .- . . " . . '.' .y . ;, , ) 4, ,
. iy. _ y :.
- . . . ',. ., ; ; , _ _ ' . r. . . .. ,yx. ). ; , , s . .' .;
_ .g,_ " . y,. . ' .g . 0 y , . .. . - '. * ' . . , . < .9.(,r :p.,3-.. , ., lp ,. .,
<; . -g_4; , s. < - ,a, -; c, . . -; ,4 4- ,
.c'.. .
4,, f,.,-'
. . f . , ' ,.,_,
= - - . . - ,,, , ; ..;- ..
'o ' . . :. . . ,. . .. ,
- \' "
*._.. ; ' ' (,
's.
,,( ' ' , , ' '
"; ' ', / O.
,c'7- ' 3. 4
.. .' U. '/fE d ' '
's . .,
~ ,
'g ' yo ,,,' '-.:f .. \, ,
.'f.-
4,.4W< r , . .. ;, 8 - - -4 9 t' ..p:j. v: z, , ; ' :, . ,_. } ,. .,....- j - ". p. 'e ,, . " '- 3.. '.. .'.' .. - .. < ,; , -. , . ,
. h'"
, G W'.
\ . '. o
*'{' '.(
- g , ', , '* , - a. J ' y. ' . * ._ ,, '.
' . . .* '3'. .. . ..$
[\
' l _,. [ , . . , .- . * ~ ., . . ' r, j, , ,, " '
f ; ,
. c.
c.,.....;. ;i,;....!.,.,7
, .' ,,l.., .c,',. -,...)'
- , +-
f..-i.,.f..' ll; :4).y 2,po..__-
.. v >:} '. , ' . s..
, -, _, ~ ',:f ' Q . .h., . , .. . .. '
. .,g. . q.. ,? : [..'.l.) .;. ' . ? ; , . -; _,.; + ._.
' ,' ; . '. ; '. L .s' f,*,g. ::" W; ', f . ' l '~ :," l .( p,,,_ ' C
. .~
a < ,: ' -i. =%'C,'*-- .- ,:Q.1. %. :,Q, .-.:. (;4;2 c Op. 9' .. -; q,:3 .. . . - _,_:
. _; : m , ' . .) . ; ;;. L: '.,.c< ...
_ .s. .'. .;. ,q' -<.-* - ;_.. a . ;< u. ?* a%.
". c;. . , x. . '*- :
t'] ".3-
.. . , ;.
- _.*< -;., - . :,'%8 # . *'
p
. .,-: . .%' '"*n,- ,
- l' '.
- ,.- y ..:..
i } * *c: %. > :.1,b .. ;,. f. ~ 3 . :.
, b
's' '. : 8, n,:
,T, -...~
o, =...n. - ' ' '
'?;. -
;g,,:.". ' .<.. ' -_. * -
I';...- i **, ' , , j. .
', .f,.,':
- k ; ,.,)' , ,'."r .~#"- ' * .
,1 4.j - tyf ' ' 4r- ..
+
,1, ', ;c.
3
.,; ,,i . ' /.** rd ',
'd, p C 4. 6 - R @ (" ; ,," ,;
g .!, , ,j4 , , t - - *
' ' Q,',d W;, yy&hf.y i .ef".'.<,Q'.e.' * [-,Q.fS&,: '-' f. . _l ?.l .l ^
.'Q.:l',X. l ' ;[ ^,, , .. . __ , : ' 'lf."
d
.' '- Q,$ .' ' . - - - ' . .
' .* ll l +* hl; .l, 4 * ;
$} 9.'\:s;* .)v. i.f., 'wh h
_.1 ,, " ".
~4 . . ' -
...v.-
y= % .', ry * ; ,% . , , L. .
- ,^,
- .. . ' - - - i, .'
'. ~- '
'*m
..\?
t :f.', 1"0., j dh, ;s.,&::K .*':.. :! " . .' " \' , , .*; , ', . s% _ nl"'
^ '
- a. <. s - -
.'"P-l. . ..' Y:)u .Y , ..l .6'v;f ' , ' _: . : ' :: j' ; _ ' . '; y': :.. ; -
. . . . _ :f, _
^~
- ',' L : ' '
x
'i',. . .e . . ' ' . *'*. -.-'
w ,; .%.' . . . . . . - ." . . . s
'.y.f*f.!. ' , lf . :. : <N '
+
- - . . 'i.' ', ** ' l.\ 55 - ;..'
V, '4,~
' _ );4' '. '. <. ' . { i.[ '. , , [ ;
. ' , .l htg ..' .'*
/S**',,'' dy"-
');[ ' [ U , ' ',
!,,' 'I '%,
( ; }.
- - .., 3
[- [. ' : - , , . . . - .,, .,. b'*4 .'. .. . , ,,,
-f'..*i,',* . * -'
l'.',
',fj .
[ * . e * '[ ~ ' . " ' M . ';
,. . b. . . . ,,, - *
- d') g C -
'_[.
. . " ' ... '. ;.: ...'f_., :e.
,4 nh,' :.s'e.,.,.
t' . e. l . . . ' ,.,
',. 'M -
- . . , ,.. l .; .
,, ,.,[*
.'.,,,R.'
.*: '".a*, , . ' . -s _._,:;',4
. ... ;' = = - . .-
,a l't : *,
1
. , . ;' - . , ' . '.. .,. - . : ' . = -,;- - .'..'c ' . . , ' , - . . - ,
.* .S r; .'.,e .
.=
...1',, . *: ; ..,if'.
'.'.s.,8.-,a .q n g .4. * ,- , .- . . , . . ' ,'M *
- -)
).'"...'l .. /
..y,' . = j, se.,. , . ' . *. ,.' - e...u.',... j; , . .' , g, '. M p . ...-.*'t: . ' . . . . ff "
.?
.a
[yf' . ' ** ' - , ': I ' ' '
;. : _ ,; - rl,lj ,
. j, . .
1 . .
- n. .. ...l- ; ..+ - - ., u:.
.- - : 2 a a: .
a', .I : ,. : . ' ' , . ,.
. * *- .w h .pg Q;;.v** .; :'.. <- _ .. , :.. . . .. .
. ._ , ' , . - ', . ,,..-l, ' . - . . .,..\_,.q y-*:.,r-
-** ^ ^'
u
* * .t . . ,- '
- o. ., ::.._ . _, .- - - , ;. . . - .. .. . ,.
I.4 = - . , ' , . ,.,.o*.,- .;.,. ' , - ,,, g .
. 1 .g
. -l .. .. ,z.,- .y, l.-
e 9
, . , ,_.,/... , rsl . . ' +. - .
. 4, ;j. gi . -, - . - .
... - .. . 4.
* "';,,...( ,
- j f, . - ... , , ,. " . " , , . , ,' '..g
,' ,.' .. .?g
.e,s<y l.. 3
. ' .. '%. . . . Wp -
sy ["w ,I..",,*,4 . .r , :,'-- ; -
, . - ,. _ , ' . ,.'y- , , [: * ' , . ' .
,. e,l' ;,. ., : - - ...,y .g... , qj - ' -. .* j.,. ,4 , ' ' . , . , , *.1._. ., ' [ ,. ,.
8"'" s .,Li? a .. ' * *
'.y . , . .:.'..
a: . ' *
, . ,(,, y ? % ...' .i' .('..' ..j>, ,,,, , ,[9 a,-..-
_ ;i.. .-:, .. ,. .,1
, . . . ' . . i -
.. ~
~.s , -. s .; . i a.z.. - ,
.: (. , "" ' "- '. :-.. ,:...., y
- j. ..,'
..' .. ] -
.. u
[_. , .;. . . . ; .;. ' . , . . .
- . . r
. . L.
': p((J
,,g..., , - . a;nf .4,. ..., Q.
3:: y.; :
.. . . . . - H 'y -
r - r
,s. . . , . Y .. - ...,.. . . , . .
! ' ;- k.
- . . y ' ;' ' .,.._. .
, W. .l:.L'l_ll: . - .: ..
-I:. Q. . _ v ll C , .l '; l ~.l
. . .y_
,.'."..,;. ' W l. - lI.',?",,. ,
!.." Y .
. I ' '- e.'i c .. .
.,-(_ : ..-s j , > .
g,4 . - i - u . _ .. . . -
'L, .. .
7___;,__ . - . - .. _I'
- - ' . . ' ) ' :. ' l ~' . ' ..' . .
~ . . . . . _ .. ...:. . . . . -.. .. .:_ :,.. _ . . , . ., _<._, i "' ,. . . ,.: ,' sy'
, _ ;_ . _ _ , .. ;, g,4; y c
. . .. ; r _ . ; '; ;-' a-.. y _.
' . " ns_ .:'
.s . . . .
*,-- . . .. ,,, , 1.;, _ ; e z a.. , i.. . . . ; . y, , , . -. ,-
(
.'. ,, :-.:.g . ' .:.L.'.+. .; n;n...s?...
..a W
.L n , *+ ! . .. ., .', ..
. , . .s.
.;... .- ., .. -. . -' - - : ,. , .. .... "'. ' . n: . c . '. ,. . : --__-. - ;: 9 *:.
. .. - - 1 ;
. r. o'. , :. :.'4,:.-'* .;, y ...... _ , ' , , '
...x e, , {g .3, ,:-
.3 -
,:,:s ,,
r
....< .....c...m.........q.,,':....' .. ..
. . . . , . . , . . .: . . ~g Q_.g
^ ;.k; .4 ;. ..c-r
.., u. ;;. . . . . . . , , c; ,
. . , .. u ... 3 ;
s_ f.f ':
. '. . ' _ . . . . _"-'_ , . : . ; , ..;,, ,j .. ,'< l"'. .g. . *;...".,, l . .L . _ g.. "q.- '
.., ; ,_, , g:,, ;
..,..,.f.,._.. ,;
; ;; / - r f . ,."._.. ... L . .,c .
_ ') .. , { ct
.,l -, ! :#o.!,[
- . ..j : .. .. . -
. M Dl{@Q . . . :r . , ,' .. ;,.g j. .,.gg'y. ; ,
.,{; t . . .., , .. ., .. , , . ..' , . . . - .-l..
.;. . , . . 7..g,...., . 4 p .j..
. 4e .. .. ";'.%'.
_. ',.. L. 1
.7'.,. . ~ . . . ,. ,,,2.y..','.
\ +
- : - +
,, __;. - . ~ . . , ..' "
. ' .b., ;. :. '. ;;. _ :_ . : ' . ' .;. . .. -
.q. .
- 4. .
- . : . _; ,. '% ;' '. ., '. u..; s: : ; , l ..+.- ;- . . ,-l._. N ; _.f .,'
,e ..'.
- - ' _ ' . ' . . - ~ '.
v
'e>
4,... L
.a . . ,'.
..r'. ,, . ,
g. 1
.- . - 2 -
. . . ;1 - . .< ,- ; .
. .h; _
Q=.',..*'). e l - e .4. t .
, .j _ ('( } : .' ; ' .} ). ; - r
[ . ['.'.[' . .
. ' '.. . ,. -- . . . . - ,, g -
8
*_* . . - . "_.. *j' - ',, ,, . .
'8 -
.. L : . . ' , ': * - .,
- -. . .. ;. ...:. ..'L'> ., . ,,,,. . .:< ..
., - .. - + * * -
' ,e.
s
"y _
.,.. . , .,.J,.,.. .
' . ~ . :
- ...'+.,.....:
A '.' - . .- ._- . - _.- . .- : .i
. - :, ,- .-., n.. .,:.. ..'_ . . ,-
; d,% % :. - . . .;. . . ..
c :' ? .. :A
* ' . , , # . , . - c
+_-w. P.M2 a -24m..m .-..sa, - a : _ 4__.t,m44a p. - ,_. , , 4 4,.,M.mi e .t _ g ,tt.z..,sa-4 sg g1, M p g ap,u a -
-6 4
# # f p
u-
'i
-t
; t
,' , 2 no ogW$~ ~. 4- ?
i
.?
( aO D, C ,", Me ~ a e
- 5 k G5
$aPxE C*Mi .-
.t ej W U .
A c' ~ $e -
-;r$
W t O U i
~
1 b k i
?
4 I
- i I 1
't
*l 5
t l l D I
-t -
-t
+
e
't t, 9 g -
I
-n F a t' k ^
S y :-
)
a, ~ .- k O f 1
'Gnm r =k97&
&Cb g% .i
_i OE$ - m
).
a U p~ T ']
",: 6 y 1
'4= E G !
v. l
\
i
\
\ \
i i i l i
- . L f _ ... ; . [. _
. . " 'i ; ~, J .;,[L ; t.
.. . _[. '; ; " ,w . a. ::; .. ;7 ,. , , , , . . . , , .
.w.". .: >.. ;..~ <
-s,;;. 4 . ' ::. '. . ~ . . -:.c.. 9 . .
.....,+.q~..,_-;l. ,.' . .; ,q j, f . * ;
- . . "; .. .; -X L a , *- ',._ %':ML* a ' . .. ^V; c ..
y , .;. . ; _ . - ; _ . y. . , . __ . _; . .: . = :; y: : . . -
~
- ( ; o. - .. . x- .':
~
. .. * ' . ." . ' f '
.;.- .-..s . . :. .. . , .- .
+i
^ ; *!
'. ., - ? l .l
~
. . . . ,. ~ ..
2, . . .e '. p; lWl '
'*v :q !, . g? *? [' L .
.: b. -Q . _ %.
l . ' } - l h.Qf. GjhW h;, .: j I$ ; g,hy - , ,K j i - h$ O f .': .
~
7 y.gg3
.: c.. gv 3. g .
.. ~
fpg- - + ., .
- 7. -.9. v .9 q4n
'j .
. . w.L,* s .yg.p* ;. Q w i * :' -av
,; 7 ,.
,'( . j,. . y, 4.., [ j ,: .
f ' : .s b
- , 4
).l & + f :. Q [ ( ' ~~'~'
~.M,nc.51% ';
. ,f,[_R$};f ._.. f G,j,;[, _
c ~@?? . %.GEs :,%,,y J
~ ' ' ' *
. ::,:. f .'?, W,$ ;' '.,%
' ki [%q ;_ '
t 9
- y. R ;, , ,
I h. p.. , .ws ,9' . hh
-j,: . . . ~ , ,
, j .l.
fL. > .J . - . .
~ ~ ' ' '
' ; , *ry. . ;; > (, j ; . ;;. ~;;. .?.'; ;~
, .d;
'[ .- .
.~..%.
e,
, , , . ,.~ . ,% . .-. . j ,, _ . ,
-p h. c.
y,,..
.. ,;4n. .
a .. :
. p.
~-.;4 i ' N. ., . E !: -[$ [ A. *h k. . ..,
-(d' ' Y: '
', f .1
.. i ,3 f.(
,* .k" ' c . ;',i. ; , . . , . .
. ,, . y ,
.,4=.- 2. *
, ; .:+ .l. ~.fl; ~ .l -
'l ' *
. f.
. fp ww. .- . . ,-N: . ,, - >
. . . l f ,.
,.;, ,;.:._ ;%y-( [
~~;:
. te y."> , %w , q,4Y * : .; 4. . ..
. ~.. ,. .
.~
R. f ' ; * .. g 4 3,. V ,' ' . % . y...nw. , .vn .:.
,.o.
; 4 '. " i -
. v :. +
-7 j.6 a :. ,',..e
- G.%,f. .[e - .v .a;.w. ; ,..,,
. A'.f'i
,8 . . . )
- W .Q ~ ,
Y , .'
+
%y
-_ fl _._. ;;;. Th{f>&.- h.,*.*.-
- l '.
~ %',, ..f.' . * ' ? l l . . . '. ,. . $ . ~, .
.h'. . c . ', 4 : . .,. m . . . : ' s, . . _. ,.. . , '-
- ~J '-
j *'
- :.,,. p .; *^
I. .*'e..J 'p['.'. . v u. . weN Ai ~.s., .
-+
y 'h..;
.' ,,14/[ ; , .. . : 4, . , . . , - P'
.,s') . . ,., . , ,
'I '
, ; [. : ,.
--7
"""'"""*,.l'.
. ;g* g ,.
s., J. ** *g
.- y 4
(
] '": ' ,
.:M
'e$
,.-.t.
-s ..,e p.
. ' . , , ,%l l c 'h ' '
N :':
- r
; f :, _ ' _ j. .
4 . , _ .
.,J.
- f _ ' **. g,;
".r
^y *_'f g '$ _. - , ; .6
.. p w _ .' ' . . , f ': . . ,:?ng . ' . : . f.. s . . . $
.. . _ , f- ,
- -I
. m'%%n;y
. 3 ;$ w.'l
. gyf
w:+?%W' saw , -
;p y %.m
- n' x .m ,p:gy? , .
w gj
- w. . e m . m{ DW L e .. y . .e -
"Q' . f. m l%l L 2 %. ; .f ? - . .. s - 4 - xs nL g;f Q v.e)v;f.
r - Q.y.y%y.g. _;. n'+f g . ?',f ..~ A R: Q 5. } '
- Y - ' %Q h Qi% N L'l 4 gv , g . gmg3 f:q'.i' L:*~ T,j = @
. ]o x
n p gy c%g w
; r,hg7.b;i~
&ggq&f: .pW a .
Q. ; wa M m . f& y-
"m y y;;;7 44.. : ..
- ._ g p yg + - TPM y2 q' ' - -
f
- gy .
...;.3'
.% ;:' ; ' ' ' : '~ '# 8
;} -
%g,9T.
.a
~
j?d .Y - L . . g. c ,- .- : 1 .D. ...?.7
} Q{& &g ?(._
L *&gl
- ,f j .'y ~^. , & g & [gl -
.., .r> . .
, ; ; . . . :: ; ..;_. ' . . . , . .. ms. .: ; ' ; -
.~..L. . . ' - . . . . ..._ ,
ep . - , - e - - ' ' m#wwwam ..,,.,),-
' .' '. j. . f [ .
^
. k '. '. . .gg .
g,
, ...[ .', , . . , . _
- .,..;~..,.-...
- .
. ,. . ? : . .
. . 3:;. ..a
. . ;-- r..
,.~.s.,.','g
'...' . . . . . +
,, ~_ _ ,
E.
'a . _' .,' - '* ,. ' . . '. '.. ..A,. ,.'..'
,' .i C
.4
. . ',,..j,
,.e- . ,
';'\+_
*ff
. . .s 2 , ; , ,
,'g. [5, . ' ' ,.. ; .'i' . ,E . '
.' .,[,..,.' Y ( .,
*}. . ,, .,- ,, .i +. ., ;-
.,e- ,
C f C C C C C C C C (
'r C
C C C
\
y- \ r-l C r. r
?-
C C C C
?
w.
/
C C L
\.
b Texas Department of Commerce photos _ by Richard Reynolds and Michael Murphy. 4
- )
o
~
Comprehensive l Annual. l Financial . Report l
.t
~d
~
l i City of Austin, ! Texas ; l For theyear ended September 30,1992 Preparedby: FinancialServices Department Betty Dunkerley, CPA f Director )
. i John Stephens, CPA !
Controller
.e I
x ., N-
a f i i
-i i
% I E U V gr ;
i' s\ # 4D8O
/-
City Council j Bruce Todd- : Mayor i Charles E. Urdy i MayorPro Tem ; CouncilMembers l Michael " Max" Nofziger l Ronney Reynolds i Louise C. Epstein l Robert A. Larson i Gus Garcia Camille Cates Barnett, Ph.D. ' city Manager i s P l l 5
t CITY OF AUSTIN, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT , Year Ended September 30,1992 TABLE OF CONTENTS INTRODUCTION Exhibit Page Letter of Transmittal - i r City Organization Chart -- xiii FINANCIAL SECTION , independent Auditors' Report - xiv GENERAL PURPOSE FINANCIAL STATEMENTS All Fund Types and Account Groups - Combined Balance Shect A-1 2 All Govemmental Fund Types and Expendable Trust Funds - ComNned Statement of Revenues Expenditures and Changes in Fund Balances A-2 8 General Fund, Special Revenue Funds and Debt Service Fund - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual-Budget Basis A-3 10 All Proprietary Fund Types and similar Trust Funds - Combined Statement of Revenues, Expenses and Changes in Retained Eamings/ Fund Balances A-4 12 All Proprietary Fund Types and Similar Trust Funds - Combined Statement of Cash Flows A-5 14 Notes to Combined Financial Statements - 17 SUPPLEMENTAL INFORMATION GOVERNMENTAL FUNDS General Fund Balance Sheet B-1 73 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual-Budget Basis B-2 74 Statement of Revenues - Budget and Actual-Budget Basis B-3 75 Statement of Expenditures - Budget and Actual-Budget Basis B4 76 Statement of Transfers - Budget and Actual-Budget Basis B-5 82 Speclaf Revenue Funds Combining Balance Sheet C-1 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 85 Combining Balance Sheet - All Special Revenue Grants C-3 86 Combining Schedule of Expenditures - All Special Revenue Grants C-4 102 Enterprise Related - Combining Balance Sheet C-5 118 ._. Enterprise Related - Combining Schedule of Expenditures C-6 120 Other - Combining Balance Sheet C-7 122 " C-8 124 Other - Combining Statement of Revenues, Expenditures and Changes in Fund Balances l Other - Combining Schedule of Revenues, Expenditures and Transfers - Budget and Actual-Budget Basis C-9 125 W
CITY OF AUSTIN, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT . Year Ended September 30,1992
. TABLE OF CONTENTS -
FINANCIAL SECTION, Continued Exhibit Page-Debt Service Fund 127 D-1 Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and D-2 128 Actual-Budget Basis Cspital Projects Funds E-1 129 Combining Balance Sheet E-2 130. Combining Statement of Revenues, Expenditures and Changes in Fund Balances E-3 131 Combining Balance Sheet E-4 134 Combining Statement of Revenues, Expenditures and Changes in Fund Balances PROPRIETARY FUNDS Enterprise Funds F-1 138 Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Eamings F-2 146 Combining Statement of Cash Flows F-3 148~ Utility Funds G-1 '154 Combining Balance Sheet G-2 157 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows G 158 G-4 160 Statement of Revenues Statement of Expenses Before Interest and Depreciation G-5 161 G-6 162 Combining Schedule of Changes in Fixed Assets and Accumulated Depreciation Hospital Fund H-1 164 Balance Sheet Statement of Revenues, Expenses, and Changes in Retained Eamings H-2 166 H-3 167 Statement of Cash Flows Schedule of Expenses Before Depreciation H-4 169 Schedule of Changes in Fixed Assets and Accumulated Depreciation H-5 171 Other Enterprise Funds Combining Schedule of Changes in Fixed Assets and Accumulated Depreciation 1-1 -172 Internal Service Funds Combining Balance Sheet J-1 '173 Combining Statement of Revenues, Expenses and Changes in Retained Ea nings J-2 174 Combining Statement of Cash Flows J-3 175 Schedule of Changes in Fixed Assets and Accumulated Depreciation J-4 176
. l
t i CITY OF AUSTIN, TEXAS i COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30,1992 TABLE OF CONTENTS , FINANCIAL SECTION, Continued ; Exhibit ' Page' FIDUCIARY FUNDS .l Trust and Agency Funds . j Combining Balance Sheet K-1 177-. l Expendable Trust Funds 7 Combining Balance Sheet K-2= 178' ; Combining Statement of Revenues, Expenditures and Changes in Fund Balances K-3 179 : Pension Trust Funds - Combining Balance Sheet . K-4 180. '! Combining Statement of Revenues, Expenses, and Changes in Fund Balances K-5 181; j h Agency Funds i ' Combining Balance Sheet K-6 182 4 Combining Schedule of Changes in Assets and Liabilities K-7 183 3 i ACCOUNT GROUPS ! General Fixed Assets '! Schedule of Changes in General Fixed Assets L-1' 185 i General Long-Term Debt i Schedule of Changes in General Long-Term Debt L-2 186 ; i SUPPLEMENTAL SCHEDULES . 1 Schedule of General Obligation Bonds Authorized and Unissued M-1 187. Schedule of Revenue Bonds Authorized, Deauthorized and Unissued M-2 188' l STATISTICAL SECTION Exhibit Page- l. I General Fund Total Expenditures and Expenditures Per Capita 1 191 . General Obligation Net Debt and Net Debt Per Capita 2 192. ;
, City of Austin Employees Per Capita 3 -193' l 5 . Ratio of General Fund Unreserved Ending Balance to Annual Expenditures 4 194 6 ;
M M U
.a t
CITY OF AUSTIN, TEXAS - f COMPREHENSIVE ANNUAL FINANCIAL REPORT
- Year Ended September 30,1992 j TABLE OF CONTENTS 1 i
STATISTICAL SECTION, Continued ; Table Page-l General Fund Expenditures by Function 1 195 l Gsneral Fund Expenditures by Function (Constant Dollars) 2 196 : Gsneral Fund Revenues and Other Financing Sources by Source 3 197' ; Assessed Valuation, Estimated Market Value, Tax Rates. Tax Levies, and Tax Collections 4 198 -; PrincipalTaxpayers 5 199 , Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita . 6 200' Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General j Govemment Expenditures 7 201 . Computation of Legal Debt Margin 8 202 ! Computation of Direct and Overlapping Debt 9' 203 } Property Tax Rates and Tax Levies for Direct and Overlapping Govemments with Applicable { Percentages over10% 10 204 l City Sales Tax - Tax Levied Effective January 1,1968 11 205 ' Utility Funds - Miscellaneous Statistics 12 206 Utility Funds - Electric Light and Power System and Waterworks and Sewer System - Five-Year Comparative Operating Statement 13 207 Utility Funds - Electric Light and Power System and Waterworks and Sewer System - , Plant Cost and Equity in Utility Systems 14 209- , Schedule of Utility Revenue Bond Coverage 15 210' 1 Transfers From Utility Funds to General Fund 16 211- q Utility Funds - Electric Light and Power System and Waterworks and Sewer System - Statistical Data 17 212 Utility Funds - Electric Ught and Power System and Waterworks and Sewer System - l Large Customers 18 213 -
. Schedule of Insurance in Force 19 -214 ,
Hotel-Motel Occupancy Tax - Tax Levied Effective January 1,1971 20 215l Miscellaneous Statistical Data 21 216 ! . . Miscellaneous Statistical Data - Economic and Growth Indicators -22 '217 .; Miscellaneous Statistical Data - Employment Characteristics 23 218-a a i
.j i
Introduction 1E 4 ._
. \
X$- y= *
\
- . p
.. [y t o I o
is
\
.e[
I, b
.t , 4/ {i
- I
/
g i b #
\
g D-1.~ sf(jhEMk[
= _ . - .
j4' p -
-(fr.
C -
~
~
^ ~ ~ '
City of Austin Founded by Congress, Republic of Texas.1839 ItO. Ikn 1088 Austin. Texas 7HM7 March 1,1993 Honorable Mayor and Council Members City of Austin, Tom We are pleaser;io submit to you the 1992 Comprehensive Annual Financial Report of the City of Austin, Texas. The report was prepared by the Controller's Office of the Financial Services Department. The combined financial statements and related notes have been examined by an independent firm of Certified Public Accountants, KP"G Peat Marwick, whose report is included herein. This examination satisfies Article Vil, Section 15 of the City Charter, which requires an annual audrt of all accounts of the City by an independent certified public accountant. Additionalty, the administrative and accounting controls over Federal financial assistance received by the City directly from Federal agencies or passed through by the State of Texas or other govemmental entities during 1992 were tested by KPMG Peat Marwick for compliance with applicable laws and regulations. This report will be available under separate cover. Responsibihty for both the accuracy of the presented data and the completeness and fairness of the presentations, including all disclosures, rests with the City. We believe the data, as presented, are accurate in all material respects and are presented in a manner which fairly sets forth the financial position and results of operations of the City. Furthermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity have been included. These financial statements have been prepared in accordance with generally accepted accounting principles for local govemments as prescribed by the Governmental Accounting Standards Board (GASB), the National Council on Governmental Accounting (NCGA) and the American institute of Certified Pubic Accountants (AICPA). The City's 1991 financial report did not receive a Certifcate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The certificate is awarded to governmental units that publish easily readable and efficiently organized annual reports that satisfy both generally accepted accounting principles and applicable legal requirements. We believe that the primary reason for the loss of the certificate was the City's accounting treatment of an advance to Brackenridge Hospital and KPMG Peat Marwick's qualified opinion related to the advance. As discussed below and in note 23 of the notes to the City's combined financial statements, the accounting issue related to the advance to Brackenridge Hospital has been extinguished as of September 30,1992, and KPMG Peat Marwick has expressed an unqualified opinion on the City's 1992 combined financial statements. We will submit this 1992 report to GFOA for review. This Comprehensive Annual Financial Report consists of three parts. The introductory Section includes an organization chart and this transmittal letter, which h;ghlights significant aspects of financial operations during the year and particular imancial issues faced by the City. The Financial Section includes the independent auditor's report, combined financial statements and related notes, and supplemental financial data. The Statistical Section includes several exhibits and tables of unaudited data depicting the financial history of the City as well as demographic and other misce %neous statistics. c.
- Reporting Entity U The City of Austin, chartered in 1839, has a Council-Manager form of government with six Council Members and the Mayor.
e A charter amendment approved in January 1985 changed the terms of office from two-year terms that expire concurrently to ' three-year staggered terms. The City Manager, appointed by the City Council, is responsible to them for the management .;. of a!! City employees and the administration of all Csty aff airs. U This report includes financial statements of the funds and account groups required to account for those activities, i organizations and functions that relate to the City and are controlled by or dependent upon the City's governing body, the City Council. Criteria used by the City f,r including activmes in preparing its financial statements are in conformity with the u h
1 National Council on Govemmental Accounting (NCGA) Statement 3, Defining the Govemmental Reporting Entity. Control by l or dependence on the City was determined on the basis of budget adoption, taxing authonty, authority to establish rates, outstanding debt secured by revenues or general obligations of the City, the City's obligation to finance any .seficits that may ! occur, funding and selection of governing authority, and other evidence of financial interdependence and the ability to exercise oversight responsibility. On the besis of the above enteria, the following activities are included in the City's 1992 financial statements: all municipal ; services (as listed below), pension trust funds, City of Austin Deterred Compensation Plan for City Employees and joint ! j operations. The City provides a full range of municipal services including police and fire, sanitation, parks, libraries, public > health and social services, public improvements, pubhc transportation, electric and water and wastewater utihties, planning and zoning, and general administrative services. -t t Year in Review l
-i i
Austin is rich in natural and human resources and is distinguished for its business and political climate, as well as for its beautiful surroundings. The quahty of hfe in Austin is enhanced by the City's dynamic culture and by the importance its ; citizens place on the environment. Austin faces many entical issues, as do most of the nation's cities, but its citizens and its y ' municipal government are committed to finding solutions for the future. This shared commitment helped to make 1992 a successful year f or Austin, and it will provide for continued success in the years to come. ! Austin was honored in 1992 with the *Crty Livabikty Outstandmg Achievement Award
- for cities with populations greater than !
100,000. Sponsored jointly by the U.S. Conference of Mayors and by Waste Management of North America Inc., the award } recognized Austin for its Neighborhood Support Program created to foster citizen participation in the renovation and -l revitalization of low-income neighborhoods. ) Austin's Environmental and Conservation Services Department was recognized in 1992 as one of 12 intemational winners , for its Green Builder Program and was the sole winner from the United States. The honor, bestowed by the international. [ Council for Local Government initiatives, was presented at the United Nations Earth Summit in Rio de Janeiro, Brazil. The City's Green Builder Program is designed to encourage the use of sustainable building materials in new homes and to give . , home buyers a vision of how an environmentally sensitive home looks and furetions. The goal of the program is to shift residential building practices toward approaches that are in harmony with the local environment. Austinites have always had a deep commitment to maintaining the City's beauty and environmental quality, especially that of l area waterways such as Barton Springs, one of the city's most prized attractions. To preserve water quality in the area, the 4 City Council voted in 1987 to strengthen the Comprehensive Watershed Ordinance by providing non-degradation
- development standards for the Barton Springs portion of the Edwards Aquifer, in August 1992, the Save-Our-Springs Watershed Ordinance was passed by a voter-inttiated referendum. This statute further strengthens environmental standards for the Barton Creek area by imposing stricter impervious cover limits and additionallimitations on pollutant discharges from l new development.
As part of a regional effort to protect the environment while allowing important public projects and other development to move forward, voters approved $159.5 million in general obligation bonds on August 8,1992. Of the $159.5 million, $22 million will be used for land acquisition for the Balcones Canyonlands Conservation Plan and $20 million f or the expansion of the Barton Creek Greenway. The tracts of land that will be acquired under both of these projects contain extensive j. endangered species habitat and environmentally sensitive terrain. Other projects to be funded as a result of the bond j referendum include infrastructure and flood control ($49.6 million), library improvements and parks and recreation j i construction projects ($33.7 million), and additional facilities needed for Emergency Medical Services, fire stations and police " substations ($15.4 million). In addition. $18.8 million of bonds were approved to respond to federal mandates ensuring compliance with the Americans with Disabihties Act and for asbestos abatement in City buildings. The Austin Convention Center held its week-long grand opening in July 1992. Financed by the issuance of $69 million in revenue bonds, the new facihty, occupying four blocks in downtown Austin, offers 125,972 sqt,& e feet of exhibit space, fiber , opte networks, data processing capabihties, and a satelhte download link. The Center is projected to host 32 events for the l r 1992-93 fiscal year, affecting the local economy by an estimated $41.1 million in tourist spending. j in 1991,the State Legislature amended the Municipal Drainage Utility Act, enabling the City to creats a drainage utihty under ' State law and thereby fully establishing the City's authority to impose a drainage fee. In November 1991, the City Council approved the creation of a drainage utilr:y. , The City's Drainage Utihty Business Plan and approved budget will guide the City's investment in drainage programs and will ' provide the community with detailed plans for flood control, erosion control and water quakty. In September 1991, the Citv ii
.[
?
f I i Councii approved a $7 million increase in drainage fee revenues, primarily to address concerns about improving water quahty in the urban watersheds. In 1992, the Council approved a further increase of $1.7 million in drainage fee revenues to ! address water quality in non-urban watersheds. j in December 1991, the Foreign Trade Zone of Central Texas, a non-profit corporation established by the Cities and ! Chambers of Commerce of Austin, Round Rock,Georgetown, and San Marcos, recerved approval of ns application to j establish a general purpose foreign trade zone for the Austin metropolitan area. A substantial portion of the trade zone i project now underway is directed towards the burgeoning high-technology industry in Austin. In addition, the project has been estabhshed to take advantage of the increasing trade between Texas and Mexico that is expected to result from the ; North Amencan Free Trade Act. A comprehensive operational and marketing program is underway and initial interest from j prospective users is high. i Fiscal year 1992 was the third year in the City's seven-year plan to deploy Total Quality Management techniques throughout i the organization. The plan, known to Austinites and City employees as BASICS (Building Austin's Standards in Customer l Service), will not be fulfy implemented until fiscal year 1995-96; however, the City has already realized significant operational 1 improvements from the implementation process. j The BASICS plan concentrates heavily on training the City's work force and provides employees with the tools and techniques they need to analyze and improve the way th. < work. Through BASICS, employees learn to "own* the l' processes and systems they work in, and their ownership translates into improved morale and a renewed focus on what is of foremost importance: delivery of service to the customer. , in October 1992, the City held its third annual Customer Service Week. During Customer Service Week, each City of Austin ' department displays a booth highlighting improvements to customer service. Presentations on quality service are made to the entire work force by industry leaders, such as Xerox. Seminars are also held during the week for supervisors to improve , their leadership skills and knowledge of quality customer service. l In 1992, the City continued to invest in its work force through its Tuition Reimbursement Program and its City Management ! Academy. Nearly 400 employees benefited from the Tuition Reimbursement Program, which assists employees who take ! initiative and enrollin courses outside the organization to improve skills and advancement potential. The City Management ! Academy is a 64-hour course created by several area cities to bring supervisors and mid-level managers up to date on the , latest management, leadership and human relations techniques. The City of Austin owns and operates Robert Mueller Municipal Airport. The City has determined that Mueller Airport cannot > be expanded to meet the long-term projected airline and passenger demand for aviation facilities necessary to serve Austin without significant cost and disruption of the communities surrounding Mueller Airport. A voter referendum on November 3, q 1987, affirmed the City's decision to construct a new airport at a site near Manor, Texas. In September 1989, the City j issued airport revenue bonds in the amount of $30 million to provide funds for a master plan and land acquisition. , In September 1991. Bergstrom Air Force Base was approved for closure by the U.S. Congress. Troop reductions began in 1992, with f:nal withdrawal anticipated in September of 1993. In 1992, the City Council voted to abandon the Manor site and to take steps to determine whether a civilian airport can be constructed at Bergstrom that is affordable, sensitive to l neighborhood and environmental concerns, and economically advantageous. In January 1992, the Department of Aviation initiated a comprehensive Master Plan for the relocation of the City's Municipal Airport to Bergstrom. This project represents a major step in planning for Austin's future aviation needs. The planning process includes a projection of aviation 4 activity trends and the facilities needed to accommodate the activity. The project will result in a layout plan for the airport , including all functional areas such as the airfield, terminal, access roads, general aviation, and support facilities. The Master Plan has an anticipated completion date of April 1993, with a referendum expected to go to the voters the following May. , The City owns and operates Brackenridge Hospital, a full-service health care provider. In an effort to identify organizational i structure changes that would allow Brackenridge Hospital to improve its responsiveness to physicians and to maintain its competitive position, the Hospital Advisory Board has recommended the creation of a hospital authority. In January 1993, -
- 2. the City Council approved a plan that would, over the next twelve months, result in the creation of a hospital authority and a !
lease agreement, the terms of which would result in the City leasing Brackenridge Hospital facilities 1o the authority. ! s: J Over a number of years and culminating in 1986, Brackenridge Hospital borrowed approximately $35 millinn from the City's investment pool to meet its operating cash needs. In 1988, the City Council implemented a source for repayment of the hospitals debt to the investment pool. The General Fund transferred $700,000, $1,400,000, and $2,100,000 to the hospital
, fund for repayment of the debt in fiscal years 1989,1990, and 1991, respectively.
In 1992, as the result of providing a disproportionate share of services to indigent patients, Brackenridge Hospital received approximately $31 million in funds from the State of Texas Dispro til Program. Funds from this program are intended to iii l
i
.i 6
raimburse hospitals that provide a disproportionately high level of services to low-income patients for the cost, or partial cost, of those services. As a result of this reimbursement and for accounting purposes, the hospnars debt to the investment pool , has been extinguished as of September 30,1992. Negotiations are currently underway among the City, the Hospital Advisory Board, and other interested parties to resolve issues pertaining to the creation of a hospital authonty and the leasing of Brackenridge Hospitalto the authority. Upon creation of the authority and completion of the negotiations,the City may record a receivable from the authonty for advances or debt required to fund the authonty. The authority will be responsible for repayment of any such advances or debt from operating revenues. f Economic Outlook f Most economists believe that the United States economy hit bottom in the spring of 1991 and has been in slow recovery , since then. Wages have remained relatively flat and unemployment continues to creep up as substantial layoffs occur l across the country. The overall U.S. economy expanded by about two percent this year, compared to an average rebound . of six to eight percent after a recession. Economists project the national economy to average two to three percent yearly ; over the next few years. Good news in the national economy came at the end of 1992, with increases in consumer ; confidence, national productivity, and U.S. factory orders. In addition, retail sales remained strong in January 1993, allaying economists' fears that consumers would pull back after December. r i The Texas economy managed to weather the past year's economic storms, protected mainly by a more diversified industrial j base than that of the national economy . The state's economy grew by 2.5 percent during fiscal 1992, following 2.2 percent { growth in 1991. In spite of job layoffs attributed in large part to reductions in the defense industry, Texas ranked first among 3 all 50 states in job growth, with a job growth rate of 1.3 percent as compared to the national growth rate of 0.2 percent. The ! outlook for Texas is for growth at the same rate or slightly above that of the national rate. { The Austin economy has emerged from the real estate and construction crunch experienced in the mid-1980s and has , started back on an upswing. While low interest rates, the lowest in twenty years, did little to stimulate the national economy, , Austin was in a position to benefit greatly from them, helping both the banking industry and Austin's real estate markets. ' Commercial and residential markets saw increases, with new home sales in Austin up more that 30% over last year; projections show new home sales increasing more than 17% over 1992. Existing home sales experienced an all-time high, '; up G.6% over 1991. The median home price in the city rose to a healthy, yet affordable,581,900, an increase of 9.1% over last year. I Austin-area job growth outperformed the state as a whole due to the large government and higher education sectors of the I economy. Although high technology manufacturing continues to expand in Austin, the largest supporting factor to the employment picturr. remains the government. The long-term outlookior Austin remains very good. Economists project that Austin's economy will continue to remain strong as the manuf-eturing and real estate markets show significant ; improvements. In addition, Austin can expect a boost in economic actviiy from the opening of the new Convention Center,. L Lifein Austin Austin, a city of about 500.000 situated in the panoramic rolling hills of Central Texas, is known for its natural beauty, its active political climate, and its academic and technological activities. With short, moderate winters and long summers, j Austin's climate is ideal for year-round outdoor activities. ,
}
Austin Weather ; Average terr'perature 68 3 l Temperature range-winter 42-32 ! Temperature range-summer 73-94 , Days below freezing per year 24 [ Days of sunshine por year 300 t i Austin's Parks and Recreation Department is acknowledged as one of the finest in the country. The city has a variety of parks and natural recreation areas, including 10 natural preserves,20 greenbelts, 64 neighborhood parks,14 recreation , centers,4 golf courses,106 tennis courts, and 32 swimming pools, including renowned Barton Springs, where as many as l t t iv
i 400.000 people a year enpy the constant 68-degree spnngfed water. Austin is home to a number of outdoor events and
- festivals, including the Legends of Go t Tourr ament, the Capital 10,000 Race, and the Austin Aqua Fest.
t Austin is noted for sts exceptional quahty of 1:fe and its cultural and intellectual progressiveness. In September of 1992, Money magazine ranked Austin number three out of the 300 best enies in which to live. As many Austinites are already aware, affordable housing prices, low taxes and the local music scene were stated as reasons for the magazine's ranking. Cultura! events in Austin are abundant: Austnites support drama and dance companies, a drversity of live music venues, and a symphony, as weil as 9 variety of theaters, museums and galleries. As the State capital and the site of the University of Texas. Austin has a higi!y educated population and has the highest per-capita book sales in the nation. Austin is famous for its hghly active and diverse music scene. With dozens of clubs featunng Irve performances covering the full ranga of contemporary , .aic - blues, country, jazz, rock, reggae, folk, and interna *ional, Austin has truly earned its reputation as ' Live Music Capital of the World". Some 1,500 local, national, and international groups perform at Austin clubs ' dunng the annual South-by-Southwest Music Conference. In support of the vast music talent in Austin, the City Council ; approved funding for the operation of the Austin Music Channel, a six-hour nightly program highlighting local musical artists ' and producers. The city also boasts one of the nation's few listener-supported, commercial-free, all classical music stations. Austin is well known for as many tourist attractions, from scenic drives through the Texas hill country to tours of the State Capitol. A survey of Texas Highways readers rated Austin number eight statewide as a favorite vacation destination, with many attractions in and around the city also ranking high on the list. The city boasts a number of museums and historic sites l and a steamlocomotive that carries passengers on a five-hour trip through the dramatic terrain outside Austin. Surrounding i the cny are numerous other attractions, including caves and rock formations, crystal clear lakes and rNers, and picturesque towns and villages. The area is also famous for as diversity of wildhfe, ranging from bald eagles inhabiting the nearby take , areas to the largest urban bat colony in North America living under the Congress Avenue bridge in downtown Austin. Austin is the home of the University of Texas, the Southwest's largest university, with some 50,000 students. Eight of the urnversity's Ph.D. programs are ranked in the top ten in the country, and as 2,398 faculty members include Nobel Prize laureates and Pulrtzer Prize winners. The university possesses the sixth-largest academic library system in the United States, and it has been cited as one of the 32 great hbraries of the world. In addition to the University of Texas, the Austin area has six other institutions of higher learning, with a mix of public and private colleges and universities. ' Industry and Business Austin is home to a vanety of businesses and industries, from small companies to large corporations and a diversity of { others in between. Its economy is a complex intermingling of government entaies, high technology manufacturers and l student-dnven estabhshments. While government employment is the stabihzing force, the manufacturing sector is rnaking substantial gains, with growth of almost 50 percent over the last ten years. As shown in the chart that follows, government employs the largest percentage of Austin-area workers (28.3%), close!y followed by the service sector (25.9%), wholesale i and retail trade (20.1%), and manufacturing (13.0%). ' i [ Austin Area Employment By Sedor h 6 MPX, _ q/q%N i m., am o h
~
'b l'lk b' K '
m s-g.
= := fa q *** N
_.z - - < -l X 5
-- _ - - : n: a on m L ,_
Q=3j7
, ,,; - _ j 3 7 am s . T. co-, - m ww , o. .
i , ,, rwi., m e, . = .w ,
-- v l 4 .
r .- . -_ _ _ - _ _ _ _ _ - - - - _<
_ _ __ - . . . m . The city's largest employer is the University of Texas, with almost 20,000 full and part-time employees. Other major employers include State and City governments, IBM with an estimated 7,500 employees and Motorola with approximately 7,100 employees. While there are severallarge companies located in Austin, it is also an incubator for small businesses and entrepreneurs: Whole Foods Market, Inc., an Austin-based health !ood grocery chain now operating 20 locations throughout the U.S., went pubhc in early 1992 and was named one of the 100 best small corporations by Business Week magazine. ; Austin is also home to Dell Computer Corporation, named by Fortune magazine as the f astest growing of the Fortune 500 , companies. Included in the year's accomplishments for home-grown businesses was the award granted to Minco l
- Technology Labs Inc. by the U.S. Small Business Administration. Minco's founder eamed highest honors as the Small Business Person of the Year. j t
Employment opportunities remain bright as several existing companies announced plans for expanding f acihties. Plans i announced by Advanced Micro Devices Corporation, the California-based computer chip maker, for the development of a i
$700 million manuf acturing facihty will add 1,000 employees to its existing work force of 2,400. Completion of the f acihty is expected some time in 1995. Apple Computer Corporation, currently ernploying 400 workers, moved operation of its . _ j Customer Support Center to Austin in July 1992 and has already announced future plans to expand its 130,000-square-foot j quarters. With Apple's push to sellits products to individuals through retail outlets, demand for customer service support is '
expected to merease. Computer chip manufacturer Motorola Inc. who completed expansion projects in 1992 that added . 1,000 new jobs to the economy, has also announced f urther expansion plans for both of its Austin locations. . While news for the largest job growth came from expansion plans from companies already located here, there were several announcements for relocations of small businesses, further evidence of the strong and steady economic growth in Austin. { Both Lotus Development Corporation and The Gallup Organization announced the openings of offices in Austin, citing . j reasons similar to those Apple Computer cited only a year earlier - the young and articulate work force. Lotus Development opened a facility to handle customer service calls, while the Gallup Organization has plans for the world's largest phone polling center to be based in Austin. Other relocations announced during the year include the software companies Trilogy i Development and CASE Design. Additionally, the Del Webb Corporation announced plans to develop Sun City Austin, an 4 adult retirement coinmunity to be located 25 miles west of Austin. With plans to build 4,000 homes beginning in 1993, the l i Sun City development will provide a boost to the local building industry, with construction spending projected to be $65 m6thon over the next 12 to 15 years. Austin joins Phoenix, Tucson, Las Vegas and Palm Springs, Cahtomia as other well-
; known Sun City locations. l Home to Microelectronics and Computer Technology Corporation (MCC) and SEMATECH, INC., two major research consortiums, Austin is becoming known as the
- Silicon Hills' of Texas. These alliances among state and local government, j' business and the University of Texas, formed in the early 1980s to develop techniques to better compete with Japan, are a
evidence of Austin's emergence as a high-technology center. By the end of 1992, 450 high-technology and software ; development firms resided in Austin, employing some 45,000 workers. Continued expansion of the high-technology industry [ has led some economists to predict that Austin will be among the nation's top growth centers for the next two years. The City's abihty to attract new businesses and individuals remains strong, as Austin is a beautiful city with an abundance of recreational and cultural activities and excellent municrpal services. Low taxes and crime rates, combined with a well-educated work force and a low cost of hving make Austin appeahng to both industry and workers. Studies conducted by the State Comptroller of Pubhc Accounts predict that the high-technology manuf acturing base in Ausitn will fuel job growth f aster ; l than the rest of the state and continue to attract job seekers from around the country. [
]
i i The Accounting System and Budgetary Control .
. y d
The Financial Services Department is responsible for providing all City financial services including financial accounting and j reporting, payroll and accounts payab!e disbursement functions, cash and investment management, debt management, !
- budgeting, purchasing. contract administration, utihty customer services, regulatory affairs, and special financial and policy anatyses for City management. The Director of Financial Services, appointed by the City Manager, supervises the
= departments operations. ( i ! The City employs a computenzed financial accounting system which includes a system of internal accounting controls. Such I controls have been designed and are continually being re-evaluated to provide reasonable, but not absolute, assurance for [ the safeguarding of assets against loss from unauthorized use or disposition and the rehabihty of financial records for prepanng financial statements and maintaining accountabiltty for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within this framework and are beheved to adequately safeguard assets and provide reasonable assurance of proper recording of financialtransactions. L vi t
f i Accounting records for governmental fund types are maintained on a modified accrual basis, with revenues being recore.ed !
. when available and measurable and expend:tures being recorded when services or goods are received and the liabilities are !
incurred. Accounting records for proprietary fund types and similar trust funds are maintained on the accrual basis. t The annual operating budget, or financial plan, is proposed by the City Manager and enacted by the City Council after public dtscussion. Subcequent intradepartmental budget transfers must be approved by the City Manager, interdepartmental 'l i transfers and any increase or decrease in total appropriations must be approved by the City Council. Management control for the operating budget is maintained at the departmentallevel. During 1992, the City Attomey's Office and the Office of the City Auddor exceeded their authortzed appropriations. I General Fund . The City's General Fund is used to account for expenditures of traditional govemmental services as well as all financial , resources other than those required to be accounted for in other funds. Sources of revenue for this fund are widely diversified including property tax, sales tax, transf ers from City-owned utility systems, and other sources as shown below. ;
.1% N O other Fnaneirg ;
3.46 % 4 GG% ,
,j n4a D Sales Tams 333 0,77% -
o igr== s
] m propertyT s r b1 d"i}g E oeur Tames h _
%PF '
S interest and Otter E Franctuse Fees ! g l l W p I,... ! 23.74 % '- g ) l l "i q p C Fres.Forfatures
' " ~
D ucenses.inspectons 2504% : t f I i I I ; O paahc Sateiy B Nordepa'trnental Evenchtures l 3 49 % '
. O Ptble Health 3 80 % t
' t
-m E Pabic Recreaban & Cultste -
yy .. E' E OperatirgTransfers
--=--...
45.77 % ll @ Pubhc Serece & Utsties
,hh '11 N N SupporMSenaces EN- h., O m aeue ,
C Fac4 Managermni f' h
%,J-j j l~
10.78 % i ~ 1, D A$rrastraban l M 14E8% 0.30 % G SocialSenacesManagernens f 3 , vii A
F General Fund Sources and Uses I (Dollars in Millions) Increase [ 1992 1991 (Decrease) SOURCES OF FUNDS Property taxes 5524 51.62 3.62 7 7 Sales taxes 5826 55 40 2.86 5 i Other taxes 1.80 2 48 (0 68) (27) l Franchise fees 10.85 8 64 221 26 ~' i Fines, forfeitures, and penattes 7.47 7.14 0.33 5 L.icenses, permits, and inspectons 7.89 6 49 1.40 22 Charges for services, gocds 8 04 7.63 0.41 5 - Interest and other 7.75 12.31 (4.56) (37) 9.76 'i Transfer and other sources 75.38 65 62 15 Total 232.68 217.33 15.35 7 USES OF FUNDS Adrninistrabon 7.16 . 6.34 0 82 13 Supportive services 8.99 11.39 (2 40) (21) , Urban growth management 8 08 7.95 0.13 2 Fiscal rnanagement 7.38 722 0.16 2 Pubhc safety 106.09 94.90 11.19 12 Public sennces and utilites 16 64 12.56 4.08 32 Put>lic health 34 49 38.96- (4.47) (11) Public recreaton and culture 24 99 23.99 1.00 4 , Social services rnanagement 5.71 5.42 029 5 i Nondepartmental exponditures 0 89 1.18 (029) (25) Operating transfers out 11.38 15.83 (4.45) (28) Total 231.80 225.74 6.06 3 Increase (decrease)in fund balance o 88 (8 41) 929 110 Total fund balance, beginning of ymr 23.12 31 82 (8.70) (27) Residual equity transfers 0 00 (029) 029 100 i Total fund balance, end of year 24.00 23.12 0.88 4 For the year ended September 30,1992. actual revenues on a budget basis were $1.5 rnilhon less than amended budget, pnmanty due to lower interest rates and decreased sales tax and franchise fee revenues. Actual expenditures on a budget basis were $3.7 milhon lower than amended budget, with significant savings achieved by the Fire Department and the Health i Department. Overall, the General Fund stayed within the amended budget and achieved an undesignated fund balance in excess of 2% of totalexpenditures. Special Revenue Funds f i The special revenue funds include the Federal grants funds, State grants funds, other special revenue grants funds and other special revenue funds including the Hotel-Motel Occupancy Tax Fund. Collectively, these funds expended
$31,601,417 during 1992. The financial statements for the grants funds within the special revenue funds are prepared in -;
conformance with the National Council on Governmental Accounting (NCGA) Statement 2, Grant, Entitlement andShared ; Revenue Accounting and Reporting by State and Local Govemments. Statement 2 provides guidance for the apphcation of generalty accepted accounting principles for grants, entitlements, and shared revenues received by the City. ; I Total amounts expended by the special revenue funds during 1992 were: Federal grants $16,473,496 Stato grants 1,776.783 Other special revenue grants 78.308 Other special revenue funds 13 272.830 Total 531,601,417 viii ,
i f The grant programs have an important impact on the Austin community by allowing the City to operate community centers, j provide services to the elderly, provide health services to women and children, and provide assistance in construction of i airport improvements. s in 1992, the Hotel-Motel Occupancy Tax fund transferred $2,684,062 to the Convantion Center Capital Projects Fund for construction of the Convention Center, $1,499,878 to the Convention Center Operating Fund for operations, $1,309,184 to i the Parks and Recreation Department Cultural Arts Fund for cultural arts programs, $1,707,389 to the Convention Center Tax Fund, and $1,963,776 to the Austin Convention Center Visitors Bureau for promotion of the tourism industry. I General Obligation Debt Administration i The City maintains a separate fund, the Debt Service Fund, to administer debt associated with its general obligation bonds ! and contractual obligations. A separate ad valorem tax is levied and collected to provide funds to retire such debt. For l 1992, this tax was $.2762 per $100 assessed valuation. ' l The fund balance designated for debt service at September 30,1992, was $5,996,676 or 10.4% of 1992 budget-basis debt : service expenditures. At September 30,1992, the City had $391,025,600 in tax-supported general obligation bonds and i contractual obhgations outstanding. Authorized but unissued general obbgation bonds at September 30, 1992, totalled r
$228,200,000.
i The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita for 1992 and 1991 are shown : below. The decrease in assessed valuation is a result of the economic downturn experienced by the City in recent years. I I 1992 1991 Net bonded debt $385.028,924 $379,909.732 I Ratio of debt to assessed value 227 221 Debt per capita I
$811.07 $814.33 Assessed valuation (000's) $16,926.074 $17,189,792
[ Debt service tax rato per [ 5100 assessed valuation $32762 $02711 The City's outstanding general obligation debt is rated A-1 by Moody's and AA by Standard & Poofs and Fitch. Capital Projects Funds The City maintains capital projects f unds to account for general govemment capitalimprovements which are funded primarily by general obligation bond proceeds. When projects are completed, they are recorded as additions in the General Fixed } Asset Account Group. Capital projects for proprietary funds that use general obligation bonds as a fundmg source (primarily Hospital, Airport and Sokd Waste Services) are accounted for within the enterprise or internal service funds rather than within the capital projects f unds. , During 1992, a total of $28,381,456 was expended in the Capital Projects Funds, primarily for street and drainage i improvements, flood prevention, parks improvements and fire facihties. At September 30,1992, total fund balance was j
$75,354,047 consisting of a reserve for encumbrances of $9.911,700 and an unreserved balance of $65,442,347.
Utilities The City owns and operates its electric, waterworks and sewer systems and issues revenue bonds for the majority of its j capital expenditures for its electric, water, and wastewater facihties. Both Moody's and Standard & Poofs rate the City's i
- outstandmg prior lien Combined Utikty Systems Revenue Bonds and subordinate ben bonds A while Fitch rates them A+, An i A rating is considered good for a utihty system, since few utihties get as high as an AA rating. l
.e ' At September 30,1992, authonzed but unissued revenue bonds totalled $562,388,000 for electric projects, $311,947,000 for IX l l Y ' e
t s water projects, and $224,179,000 for water works and sewer projects. Activity relating to revenue bonds is summanzed in the following table (in thousands of do!!ars): Subordinate Prior Lien , Lien Bonds Bonds Total Balance payable, net of dscount and , inclusive of premium- October 1.1991 $368,564 1,964.476 2.333,040 Debt issued. net of dscount and enclusteeof premium 940 612.613 613.553 Debt repaid, defeased, or refunded net , of dscount (31.005) (572,455) (603.460) Amortization of bond dscount and prer mium 1.146 4.o39 5.185 Balance payable, net of dscount and inclusive of premium - September 30.1992 $339 645 2,008 673 2.348 318 The Electric Light and Power Fund and the Waterworks and Sewer System Fund transferred $57,383,894 and $15,853,824, respectively, to the General Fund. This includes transfers to cover costs incurred by General Fund departments that provide ; support services to the utilities. Electric System Electric operating revenues for 1992 were $426,070,449, an increase of .85% from the prior year. Operating expenses before depreciation tor 1992 were $211,779,895, a decrease of .29% irom the prior year. j L During 1991, the Electric Utility entered into a transmission agreement with LCRA for the purchase of two 13BKV i transmission hnes and other future rights. I he transfer of ownership of the two lines and easements was completed in 1992. The agreement will help f acihtate the corstruction of critical transmission lines and accelerate the completion schedule of the - l transmission plan. The plan, includmg aver fifty projects, is estimated to be completed in the next five to seven years. P Waterworks and Sewer System i The City owns and operates three water treatment plants with an average daily consumption of 89 mdlion gallons per day (mgd), and four wastewater treatment plants wrth an average daily volume of 68 mgd. The Oty also owns and operates its own distribution and collection systems. Total Waterworks and Sewer System operating revenues for 1992 were $152,205,834, an increase of 1.9% over the prior year. Operat ng expenses before depreciation for 1992 were $62,969,312, an increase of 6.E% over the prior year. The City has certain contractual commaments with several Municipal Utdity Districts (MUDS) for the construction of certain additions, improvements, and extensions of the City's water and wastewater delivery systems, These MUDS are authonzed to issue contract revenue bonds to finance the construction of such improvements. The City will become the owner of these ! improvements and will make debt service payments on the MUDS' bonds. This arrangement will enable the City to expand its system in a manner that prevents the proliferation of stand-alone utilities, which would uttimately need to be integrated into a regional system upon annexation. Under these contracts, the MUDS had issued and outstanding $128,440,000 City of , Austin, Texas Contract Revenue Bonds as of September 30,1992. Hospital Fund The City owns and operates Brackenridge Hospital, which provides a full range of healthcare services. The hospF.al serves as the major 24-hour trauma center in a ten-county area, operates a children's hospital including pediatrics and intensive care services, and also serves as a teaching hospital with more than 25 educational affdiations in various healthcare fields. During 1992 the hospital initiated the development of the Texas Cancer Center at Brackenndge, an oncology program expansion to include a research component allowing the use of advanced drug therapy. ; x
-_ _-m- - _ . - . _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ . _ _ _ _ _ . . _ _ _ _ _ _ , . _ _ _ _ _
in an effort to identsfy organizational structure changes that would allow Brackenridge Hospital to improve its responsrveness -; to physicians and maintain its competitive position in the marketplace, the creation of a hospital authonty was recommended l by the Hospital Advisory Board and approved by the City Councilin January 1993. ; l In 1992, hospital patient revenues increased $15.1 milhon over 1991 due pnmar ly to the 8% rate increase implemented in i October,1991. Hospital operating expenses before depreciation increased $15.8 million over 1991. The hospital recorded net income of $37.3 milhon for the fiscal year. As the result of providing a disproportionate share of services to the indigent { community, Brackenridge Hospital became ehgible to participate in the Dispro ill reimbursements program of the State of j Texas. Distobutions from the Texas Dispro !!! Fund accounted for $31 million of the reported net income. The l disproportionate share funds are intended to reimburse hospitals that provide a disproportionately high level of services to low-income patients for the cost, or partial cost of those services. Additionally, the funds are intended to improve service j quahty and access to care. ! During 1990, the hospital recorded a liabihty ior the repayment of $5.3 mi!! ion to the Medicare program ior the disallowance of certain medical education costs. An appeal has been filed with the Provider Reimbursement Review Board of the Health' , Care Financing Administration to allow these costs as reimbursable. The first of four scheduled payments to reduce this habihty was made dunng 1992. 1 Airport Fund : l The Airport Fund accounts for the operation of the Robert Mueller Municipal Airport. The airport is currently self-sustaining, .! providing for operating expenses including depreciation, an amount equivalent to the airport's interest on debt, payment for i support services from other City departments, and funding of capitalimprovement projects. Operating revenues for the year i ended September 30,1992 were $17,938,756. After deducting operating expenses of $10,637,404, the airport had operating income of $7,301,352 and net income of $7,578,695. t [ Pension Fund i The City has three contnbutory defined benefit retirement plans. Since August 26,1991, and pursuant to State legislation, 9 the City of Austin Employees' Retirement and Pension Fund and the City of Austin Police Officers' Retirement and Pension - Fund have been governed and administered by their respective eleven. member boards. The third plan, the Fire Fighters' l i Relief and Retirement Fund of Austin, Texas was estabhshed by State statute and is governed and administered by a five-member board Together the three plans cover substantially all full-time employees. i During the year ended September 30,1992, the City contnbuted 7%,12%, and 14.05% of salaries to each of these funds, ; respectively. Total contributions by the City to these funds were $21,040,000 for 1992. Total assets in excess of the pension benefit obligation at December 31,1991 (latest available date) for the Employees' Fund was $60,942,000. The unfunded pension benefit obhgation at December 31,1991 (latest available date) for the Police Officers' Fund and the Fire ? Fighters' Fund was $4,936,000 and $31,177,000, respectively. l l The City's pension plans are quahfied under IRS regulations allowing pre-tax status for employee contributions to the plans.
- Cash Management l Cash balances of all City funds (except for all debt service, revenue bond retirement reserve, and pension trust funds) are pooled and invested in consideration of four factors: term, hquidity, market exposure, and rate of return. These investments ;
are made in accordance witn the Texas City Depository Act and the Public Funds investment Act of 1987, and are restricted pnmanly to obhgations of the United states, the State of Texas, the County, the City, certificates of deposit issued by Texas l state and national banks, local government investment pools, bankers' acceptances, prime commercial paper and fully j collateralized d: rect repurchase agreements meeting the requirements of the above-mentioned statutes. $ During 1992, the City's cash resources were pnmarily invested in repurchase agreements, the Texas Local Government ! 4 investment Pool, and U.S. Treasury and Agency issues. The average yield on pooled investments during the year was l 6.29 l
- Acknowledgments The preparation of this report on a timely basis could not have been accomplished without the dedicated services of a highly {
xi
f qualified staff. The City of Austin has such a staff in the Controller's Office of the Financial Services Department. We would ; like to express out appreciation to all the staff of the Controller's Office who assisted and contributed to the preparation of i this report. Other departments and offices of the City have also contributed directly or indirectly to the preparation of this report. In , I particular, the Budget Office of the Financial Services Department and the Office of the City Aud. tor have been instrumental
- in ensuring that good financial management practices are maintained, and their cooperation and continued assistance is i
appreciated. We also acknowledge the efforts of the City departments in following good financial management practices and in providing information and assistance during the preparation of the report. i We acknowledge the thorough, professional, and timely manner in which the audit was conducted by our independent- , aud: tors, KPMG Peat Marwick. Finally, we acknowledge the Mayor and Council Members who have consistently supported the City's goal of excellence in all aspects of financial management. Their support is greatly appreciated. , Camille Cates Barnett Ph. D. City Manager l 1 Betty Dunkerley, CPA l Director of Financial Services t t I i i i [ xii
CITY OF AUSTIN, TEXAS Organization Chart Citizensof Austin Mayor & Council .......................... Municipal Court City Clerk City Auditor Boards & Commissions City Manager Law
- Pubre Information First Assistant City Assistant to the City Assistant City Manager Assistant City Manager Manager Manager Austin Convention Center Emergency Medical Services Aviation FinancialServices Brackenridge Hospital Fire Environmentaland Human Resources Electric Library Conservation Services information Systems
- Health and Human Services Parks and Recreation Public Works and Porce Planning and Development Transportation
~ Water and Wastewater a Utility u V*
- i 4 xiii Si
^
l FinancialSection
?
b y' .
?
\.
4 i
\, '
==,
s fj/ i , y . , , fgjfll r t I ' i di {\ t f Ah,. , f \ l
, .J C,, n n- - ~ a
/ ;
r / 3 .. , 5 O 3 _- f - :,. .=- -
~~ ~ ~
~ ~ ~
- INDEPENDENT AUDITORS' REPORT The Honorable fAayor and fAembers of the City Council, City of Austin, Texas:
We have audited the general purpose financial statements of the City of Austin, Texas (* City *) as of and for year ended September 30,1992, as listed in the accompanying table of contents under
- General Purpose Financial Statements *. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present f airly, in all material respects, the financial position of the City of Austin, Texas at September 30,1992, and the results of its operaSons and the cash flows of its nroprietary fund types and similar trust funds for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and individual account group financial statements and schedules, and schedules of bonds authorized and unissued, identified as Exhibits B-1 through fA-2 under " Supplemental Information* in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Austin, Texas. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The schedules as listed under
- Statistical Section* in the accompanying table of contents were not audited by us, and, accordingly, we express no opinion on them.
fN January 15,1993, except for Note 23h as to which the date is February 23,1993 N . . xiV M
i Combined Funds t _ I ;
\
i-u - e m -l , c. u c i al t k( G
'h
.x i
,1
/
f, , J , & a
' t .
1
/ ;
G a n p r x%sN n-y[ j%Y @./
~
Y, -ll _ _ _ - . - i _ q _- - - - - _ _ . t c - **
. j. ,
a k ,h.'4'c-n
, f -
9 su
~
( wv .
. .Q: '
1
l ALL FUND TYPES AND ACCOUNT GROUPS COMBINED BALANCE SHEET September 30,1992 With comparative totals for September 30,1991 Governmental Fund Types Special Debt Capital General Flevenue Service Projects ASSETS AND OTHER DEBITS Current assets-Cash $ 83,847 - 1 - Pooled investments and cash 26,580,051 28,241,728 - 63,254,660 inve stments, at cost - 6,334,239 5,879,200 - Working capital advances - - - - Cash and irwestments held by trustee - 784,011 - - Receivables, net of allowances. Property taxes 3,528.858 - 2,969,197 - Accounts and other taxes receivable 6,009,254 - - 14,262,605 Receivables from other governments - 3,864,380 - - p Due from other funds - - - - inventories, at cost 1,548,758 - - - Prepard items and other assets 14,700 3,635,685 - - I Unrecovered costs - - - - Defetted costs - - - - t Total current assets 37,765,468 42,860,043 8,848,398 77,537,265 ; Restricted assets: , Cash Pooled envestments and cash - - - - investments, at cost - - - - Accrued interest on investments - - - - Irwestments and cash held by trustee - - - - investments held by trustee - - - - Receivable from other governments - - - - Due from other funds - - - - Advance to other funds - - - - Other receivables - - - - Totairestncted assets - - - - Property, plant and equipment, at cost, net of accumulated depreciation o r$839.822.272 sn 1992 and $744,555,157 in 1991 - - - - Other recewables - - - - investment in municipal utility distnets - - - - Unamortized loss on refundings - - - - Deferred costs, including bond issue cost, net of amortantion - - - - Other debits: ! Amount available in Debt Service Fund - - - - > Amount to be provided for accrued compensated absences - - - - Amount to be provided for accrued claims - - - - Amount to be provided for retirement of general long-term debt - - - - Amount to be provided for capitallease obligations - - - - Total assets $ 37,765,468 42,860,043 8,848,398 77,537,265 The accompanying notes are an integral part of the financial statements. i 4
CITY OF AUSTIN, TEXAS , Exhibit A-1 Fiduciary Totals Proprietary Fund Types Fund Types Accoun1 Groups (Memorandum Onfy) internal Trust artd General Fixed General long- , Enterprise Service Agency Assets Term Debt 1992 1991 42,981 8,600 761,559 - - 89b,988 22,624,325 47,539,172 1,715,609 25,646,891 - - 192.978,111 167,318,456 1,645,205 - 589,069,321 - - 602,927,965 515.234,236 5,320.181 - - - - 5,320.181 4.789,156
- - 46,522,416 - - 47,306,427 42,237,016 !
- - - - - 6,498,055 6,386,723 97,708,827 198,456 43,694 - - 118,242,836 125,134,743 1,780,936 - - - - 5,645,316 4,925,902
- - - - - - 1,471,864 49,237,159 890,206 - - -
51,676,123 51,965,765 2,765,393 - 7,987,944 - - 14,403,722 13,795.481 1,188,419 - - - - 1,188,419 - 61,944 - - - - 61,944 2,110,374 207,290,217 2,812.871 670,031,825 - - 1,047,146,087 957,994,041 ; 1 r
^
331 - - - - 4 74,365 205.915,176 2,026,680 - - - 207 ,41,6 6 238,783,268 - 282,280,766 - - - - 2?.',260,7t 5 323,357,343 , 6,402,525 - - - - 6,402,545 7,408,160 4,688,441 - - - 4,6BS,e 41 6,452,038 5 10,120,859 - - - 10,12',859 6,888,578 ' 2.752.637 - - - - 1,r52,667 1,239,397 56,155 - - - - 56,155 - ; 449,245 - - - - 449,245 - 396,602 - - - - 396,602 17,934,601 j 513.062,767 2,026,680 - - -
$15,089,447 602,137,750 3,080,675,670 4,595,162 80.222 340,804,915 - 3.426,155,969 3,298,440,353 l
- - - - - - 1,912,317 ,
27,449,126 - - - - 27,449,126 78,643,491 ; 53,004,704 - - - - 53,004,704 32,404,890 I f 175,859,011 - - - - 175,859,011 134,878,074 ; 7,298,835
- - - - 5,996,676 5,996,676
- - - - 34,031 M1 34,031,541 31,878,631
- - - - 6,156,718 6,156,718 2,801,478 ;
r
- - - - 385,028,924 385,028,924 379,909.732 230.295 230,295 529,077 )
4,057,341,495 9,434,713 670,112.047 340,804,915 431,444,154 5,676.148,498 5.528,828,669 1
- d CoMW&
+ ! J 1 9,, - \
?
j 3
ALL FUND TYPES AND ACCOUNT GROUPS COMBINED BALANCE SHEET l September 30,1992 With comparative totals for September 30,1991 Governmental Fund Types Special Debt Capital General Revenue Service Projects llABILITIES, EQUITY AND OTHER CREDITS Current habilrt:es:
$ 3.439,748 2,370,968 - 1,633,422 Accounts payable Advanced pooled investments and cash - 3,878,743 - 120,577 .
Accrued payroll 4,656,102 - - - Accrued compensated absences 1,559,724 - - - Claims payable Construction contracts payable - - Due to third party reimbursement programs Municipal utihty distnet contracts payable Due to other govemments - - Due to other funds Deferred revenue 3,393,020 - 2,651,722 - General obligabon bonds payable - t Water improvement district bonds payable - Public property finance contractual . obhgations payable Capital lease obhgabons Nctes payable - 710,976 24,386,797 - 422,219 Other habihties 3 13,759,570 30,636,508 2,851,722 2,183,218 Total current habitrbes Payable from restricted assets: Accounts payable - Advanced pooled investments and cash - Accrued interest payable - Revenue bonds payabie within one year - Tau and revenue bonds payable within one year - - Certificates of obbgabon due within one year -
- - - - t Deposrts and other habihtees Total habiltties payable from restncted assets -
Long-term obligabons, net of current portion. Accrued compensated absences - Claims payable Construcbon contracts payable - Advance from other farvh - Tax and revenue bond 4 ayable, net of discount of $09,640 in 1992 and $79.508 m 1991 - Munscapal ubhty district contracts payable General obhgation bonds payable, net of discount of $335,583 in 1992 and $367,850 in 1991, - - - Revenue bonds payable, net of discount / premium t of $67,556,220 in 1992 and $76,222,734 an 199t, - - - Capital appreciation bond mierest payable - - Water improvement district bonds - - Pubhc property finance contractual obbgabons - - Cerbficates oi obhgation - l Capital lease obhgations payable - Notes payable - Deterred credits - - Total liabditses $ 13,759,570 30.636.508 2.851,722 2.183,218 , The accompanying notes are an integral part of the financial statements- t
+
n ~
CITY OF AUSTIN, TEXAS Exhibit A-1 (Continued) Fiduciary Totals Proprietary Fund Types Fund Types Account Groups (Memorandum Only) internal Trust and General Faxed General Long-E nterprise Service Agency Assets Term Debt 1992 1991 r L 32,724.122 979,740 1,439,299 - - 42,587,299 31,582,077 39,470 - 9,321 - - 4,048,111 28,741,471 5.148,168 242,381 - - - 10.046,651 7,498,174 9,197,088 494.096 - - - 11,250,908 11,343.452
- - 12,864,862 - - 12,864,862 9,480,980 2,420.010 - - - - 2,420,010 3,168,925 4,498,683 - - - - 4,498.683 4.924,058 2.025,000 - - - - 2,025,000 2.610,000 ,
- -- 75,623 - -
75.623 610,673 30.825 25,330 - - - 56,155 1,471,864 357,184 - - - - 6,601,926 7,815.142 4,614,220 - - - - 4,614,220 4,342.659 195,000 - - - - 195,000 176,000 579,310 - - - - 579.310 175,000 2,748.362 - - - - 2,748.362 3,709,789 4,773 - - - - 4,773 - , 8,154,520 - 50,272.875 - - 63.954,387 73,397,199 72,736,735 1,741,547 64,661,980 - - 188,571,280 191,047,464 17,963,555 - - - - 17,963,555 9,578,824
- - - - - - 1,660,787 71,998,805 - - - - 71.998,805 74,662,508 15.495,000 - - - - 15,495,000 29,005,000 195,000 - - - - 195,000 170,000 495,000 - - - - 495,000 460,000 35,582,468 - - - - 35,582.468 29,237,381 ,
141,729,828 - - - - 141,729.828 144,974,500 9,622203 496,175 - - 34,031,541 44,149,919 40,620,578
- - - - 6,156,718 6,156,718 2,801,478 3.970289 - - - - 3,970,289 5,908,055 246,603 202,642 - - - 449,245 --
4,565.160 - - - - 4,565.160 4,750,092 126.415.000 - - - - 126,415.000 127,885,000 52,023,448 - - - 390,025,600 442,049.048 435,476,578 2,429,686,555 - - - - 2,429,686,555 2,400,807,761 24,348,313 - - - - 24,348,313 15,445,473 1,061,0M - ~- - - 1,061,000 1,256,000 4,145.690 - - - 1,000,000 5,145.690 2,825,000 3,815,000 - - - - 3,815,000 4,310,000 32,609,708 - - - 230,295 32,840,003 34,940,814 5.575,227 - - - - 5,575,227 - 16.642,481 - - - - 16,642,481 72,315,334 2.929,193,240 2.440.364 64,661,980 431,444.154 3,477,170,756 3,485,362,127
] . (continued) e
- b l
I
" 5
3 i t ALL FUND TYPES AND ACCOUNT GROUPS COMBINED BALANCE SHEET September 30,1992 f With comparative totals for September 30,1991 Governmental Fund Types Special Debt Capital General Revenue Service Projects LIABILITIES, EQUITY AND OTHER CREDITS, Continued , Equity and other credits: - - - Contnbubons irom municpahty - Contributions from State and Federat governments - - - Contribubons in aid of constructon - - - - Contribubons from prrvate sector - - - Investment in generalfused assets Retained earnings: - - - Reserved for revenue bond rebrement - Reserved for operations - - Reserved for regulatory ret,uirements l Unreserved P Fund balances: 9,911,700 5.937,202 470,327 - Reserved for encumbrances - - t<eserved for inventones and prepaid expenses 1.563,458 - l
~
Reserved for capital acquistbon - - - Reserved for nonexpendatne trust - - Reserved for retwement systems Unreserved: - - 10.218,538 - Designated for e mergency reserve - - Designated *; contingency reserve 1,303,176 - f
- 11,753,208 - 3 Desi? Led for future use - - 5,996,676 -
Designated for debt service - -- - l Desgnated for purposes of trust - 65,442,347 4.983,524 - Undesignated 24,005.898 12.223,535 5,996.676 75,354,047 l Total equity and other credits 37,705.468 42.860,043 6,848,398 77,537,265 Totalliabilities, equity and other credits , The accompanying notes are an mtegraf part of the financial statements.
?
L c i E i h t a
?
th
':i CITY OF AUSTIN, TEXAS ,
Exhibit A-1 (Continued) Fiduciary Totals Proprietary Fund Types Fund Types Account Groups (Memorandum Only) anternal Trust and General Fixed G eneral Long- l Enterprise Service Agency Assets Term Debt 1992 1991 1 21,775,939 4,987,928 - - - 26,763,867 34,869,018 65.958,578 - - - - 65,958,578 64,038,294 i 260,699,501 - - - - 260,699,501 258,631.458
- - - 340,804,915 - 340,804,915 315,771,098 168,501,142 - - - - 168,501.142 178.486,533 l 2,164,937 1,648,459 2,164,937 - - - -
500,000 - - - - 500,000 500,000 608,548,158 2,006,421 - - - 610.554,579 532,740,751
- - - - - 16,319,229 11,482,996
- - - - - 1,563,458 1,735,409 ,
- - - - - - 62,464 26.374 - - 26,374 26,374 - .
- - 596,143,142 - - 596,143,142 524,820,971
- - - - - 10,218,538 10,148,430 *
- - - - - 1,303,176 1,649,623
- - - - 11,753,208 16,570,019
- - - - - 5,996,676 7,298,835
- - 9,280,551 - - 9,280.551 8,273,148
- - - - - 70,425,871 74,712,664 1,128,148,255 6,994,349 605,450,067 340,804,915 - 2,194 977,742 2,043,466,542 4,057,341,495 9.434.713 670,112,047 340,804.915 431,444,154 5,676,1 @.498 5.528,828,669 I
I k I
- i w
es
,,2' I
1 I 7
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year ended September 30,1992 With comparative totals for year ended September 30,1991 Governmental Fund Types Special Debt Capital General Revenue Service Projects ; REVENUES
- axes $ 115,296,632 - 46,771,975 -
Franchise fees 10,847,283 - - p Fanes, forfeiturea and penalties 7,469,760 - - - Licenses, permits and inspechons 7,891,542 - - - F Charges for services / goods 8,045,410 - - - Intergovernmentai revenues - 18,328,587 - 5,000,669 Property owners'parbeipabon and contribubons - - - 476,854 Trust - - - - Interest and other 7,753,145 12.672,619 1,374,783 4,909,405 Total revenues 157,303,772 31,001,206 48,146,758 10,466,928 EXPENDITURES Current, sneluding capital outlay in the General Fund of $3,940,995 Admirustrabon 7.159,457 13.272,830 - - Supportve services 8,992,090 - - - Urban growth rnaagement 8,079,539 - - - Fiscal marmgemen. 7,381,795 - - - Pubbe safety 106,094,779 - - - Public services and Jtirbes 16,639,362 - - - Pubhc health 34,492,079 - - - Public recre6on and culture 24,987,332 - - - Social services management 5,707,872 - - - Nondepartrr, ental expenditures 892,068 - - - Special projeets - 18,328,587 - - Capital outiny for construebon - - - 28,381,456 Debt service: Pnnerpal rebrement - - 22,412,341 .- Interest, commissions and other - - 29,645,676 - 7mst - - - .- Total expenditures 220,426.372 31,601,417 52,058,017 28,381,456 Excess (deficiency) of revenues over expenditures (63.122,600) (600,211) (3,911,259) (17,914328) OTHER FINANCING SOURCES (USES) Increase in capital lease obhgations - - - - Proceeds of refunding bonds - - 104,688.725 - Payment to escrow agent - - (104,688,725) - Proceeds from issuance of cert. 4ecates of obhgabon and general oblegstion bonds - - - 20,000,000 Operabng transfers in 75,384,966 3,545.258 2,609,100 2,110.614 Operabng transfers out (11,380,183) (10,854,289) - (4,431,964) Contnbubons from utility - 2,484,832 - - Total other financing sources (uses) 64,004,783 (4,824,139) 2,609,100 17,678,630 Excess (deficency) of revenues and other sources over eapenditures and other uses 882,183 (5,424,410) (1,302,159) (235,898) Fund balances at beginning of year 23,123,715 17,647,945 7,298,835 75,589.945 Residual equity transfers en (out) - - - - Fund balances at end of year $ 24,005,898 12,223,535 5,996,676 75,354,047 The accompanying notes are ah entegral part of the financial statements.
~^
6.
CITY OF AUSTIN, TEXAS Exhibit A-2 Fiduciary Totals Fund Type OAemorandum Only) Expendable Trust 1992 1991
- 162,068.607 156,032,958
- 10,847,283 8,639,848
- 7,469,760 7,140,162
- 7,891,542 6,486,418
- 8,045,410 7,626,280
- 23,409,256 14,067,962
- 476,854 755,373 32,513,282 32,513,282 27,686,642
- 26,709,952 31,947,236 22,513,282 279,431,946 260,382,879
- 20,432,287 16,525,390
- 8,992,090 11,394,880 8,079,538 7,948,749
- 7.381,795 7.,223,267
- 106,094,779 101,400,564
- 16,639,362 12,559,047
- 34,492,079 32,453,726
- 24,987,332 23,992,294
- 5,707,872 5.418,179
- 892,068 1,178,400
- 18.328,587 10,491,452
- 28,381,456 22,671,132
- 22,412,341 21,607,942
- 29,645,676 30,491,982 41,172,731 41,172,731 33,953,749 41,172,731 373,639,993 339,310,753 (8,659.449) (94,208,047) (78,927,874)
- - 81,990
- 104,688,725 -
- (104,668,725) -
- 20,000,000 19,340,000 9,666.852 93,316,790 81,600,802
- (26,666,456) (35.248,722)
- 2,484.832 4,102.215 9,666,852 89,135,166 69,876,285 1,007,403 (5,072,681) (9.051,589) 8,273,148 131,933,588 146.135,134 (5,149,957) 9,280,551 126.860,707 131,933,588 9
a t
' GENERAL FUND, SPECIAL REVENUE FUNDS AND DEST SERVICE FUND - .
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-BUDGET BASIS
-- Year Ended September 30,1992 General Fund Speant nevenus Funds
- Actual- Vanance - Actual- Vanance -
FavoraWe f BudDet favoraWe Budget Basis Budget (UnfavormWe) Baars Budget (UnfavoraWe) ,; REVENUES '
~
Taxes $ 115,296,632 116,317,747 -(1,021,115) - - -
.}
10,847,283 11,632,475 (785,192) - - - ! Franchise fees Fmes, forfeitures and penafbes 7,469,760 7,632,960 (163,200) - - - 4 ' Ucenses, permits and inspect ons 7.891,542 5,949,833 - 1,941,709 - - Charges for services / goods 8,045,410- 8.052,308 (6,89e) - - - 4,705,686' 6.149,786 (1,444,100) 10.383,917 9,294,183 . 1,089,734 Interest and other 154,256,313 155,735,109 (1,478,796) 10,383,917 9,294,183 ~ 1.089,734 j Total revenues EXPENDITURES Administrabon 7,106,946 7,114,681 7.735 - 7,997,031 9,300,977 1,303,946 Supportive services 9,297,504 9,365,031 67,527 - - - Urban growth management 8,103,874 8.351,668 247,794 - - - l Fiscal management 7,437,917 7.582,243 144,325 - - -- Public safety 105,635.974 106,667,699 1,031,725 - - - Public services and utihties 17,129,106 17.417,141 288,035 - - - 1,238,961 . Public health 35.628,433 36,867,394 - - - Public recreabon and cutture 25,173,941 25,234,458 60,517 - - - , Social servicea management 6.369,790 6,413,132 43,342 - - - Nondepartmentat expend. tares - 584,499 584,499 - - - Principal redernpbon - Interest and other - Feen and commissions - - Total expenditures 221.883,485 225,597,946 3,714,461 7,997,031 9.300,977 1,303,946 l Excess (deficiency) of revenues
- over expenditures (67,627,172) (69.862,837) 2,235,665 2,386,886 (6.794) 2,393,680
- OTHER FINANCING SOURCES (USES) _
78,432,425 78,243,504 188,921 3,385.258 3.265,457 119,801 Operating transfers in Operating transfers out (12,272,251) (15,272,251) 3,000,000 .(9,214,289) (8,375,678). (838,611) Contribubons from utihty - - - 572,515 2,669.262 - (2,096,747) [ Total other financing sources (uses) 66,160,174 62,971,253 3,188,921 (5,256,516) ' (2,440,959) (2,815.557) Excess (deficiency) of revenues and other sources over expenditures and other uses (1,466,998) (6,891,584) 5,424,586 (2,869,630) (2,447,753) (421,877): i Fund balances at beginning of year 26,154,321 26,154,321 - 4,005,458 4,005,458 .- Fund balances at end of year 5 24,687,323 19,262,737 5,424,586 1.135,828 1,557,705 (421,877) The accompanying notes are an integral part of the financial statements. :l l l 1 i i t f i 10 - .
i CITY OF AUSTIN, TEXAS Exhibit A-3 f Debt Servce Fund Totals (heemorandum Only) Actual- Vanance - Actual- Vanance - Budget Favorable Budget F avorable # Basis Budget (Unfavorable) Basis Budget (Urdavorable) 46,771.975 47,168,805 (396,830) 162,06f, 07 163.486,552 (1,417,945) ,
- - - 10,847,283 11,632,475 (785,192)
- - - 7,469,760 7,632,960 (163,200)
- - - 7,891,542 5,949,833 1,941,709 ,
- - - 8,045,410 8,052,308 (6,898) 1,374,783 1,873.912 (499.129) 16,464,386 17,317,881 (853,495) 48,146.758 49,042,717 (895,959) 212,786,988 214,072,000 (1,285,021)
- - - 15,103,977 16,415,658 1,311,681
- - - 9,297,504 9,365,031 67,527
- - - 8.103,874 8,351,668 247,794
- - - 7,437,917 7,582,243 144,326
- - - 105,635,974 106,667,699 1,031,725
- - - 17,129,106 17,417,141 288,035
.- - - 35,628,433 36,867,394 1,238,961
- - - 25,173,941 25,234,458 60,517
- - - 6,369,790 6,413,132 43,342
- - - - 584,499 584,499 26,930,000 26,930,C00 - 26,930,000 26,930,000 -
30,718,887 30.923,200 204,313 30,718,887 30,923,200 204,313 6,601 10,000 3,399 6,601 10,000 3,399 57,655,488 57,863,200 207,712 287,538,004 292,762.123 5,226.119 (S,508,730) (8,820,483) (680,247) (74,749,016) (78,690,114) 3,941,098 8,158.447 8,249,480 (91,033) 89,976,130 89,758.441 217,689
- - - (21,486,540) (23,647,929) 2,161,389
- - - 572,515 2.669,262 (2,096,747) 8.158,447 8,249,480 (91,033) 69,062.105 68,779,774 282.331 (1,350, 53) (571,003) (779,280) (5,686,911) (9,910,340) 4,223,429 7,346,959 7,298,835 48,124 37,506,738 37,458,614 48,124 5,996,676 6,727,832 (731,155) 31,819,827 27,548,274 4,271,553 i
t [ h e e F
,P e
11
B L P ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS . 1 COMBINED STATEMENT OF REVENUES, EXPENSES AttD CHANGES IN - ! RETAINED EARNINGS / FUND BALANCES l Year ended September 30,1992 . With comparative totals for year ended September 30,1991 Proprietas y Fund Types , internal. -f Enterprise - Service l REVENUES' -f Utihty services S 578,276.283 - ' ' 124,178,104-Hospital patient services. net -- _l User fees and rentals 55,766,967- - Billings to departments - 13,490,102 , Pension contribubons - - Other 33,871,204 - ' , Operabng revenues 792,092,558 13,490,102 i EXPENSES j Uthty operabons 274,749,207 -- Hospital operabons - 116,826,957 - ' - p Other enterprise operabons 38,924,583 - - { intomat service operabons - 11,952,360 . :
. Depreciabon 97,730,156 956,321
'l Benefit payments -. ,
Contributions refunded - - Total operabng expenses 528.230,903 12,918,681' -} Operating income before nonoperating revenues [ (expenses) and operating transfers 263.861,655 .571,421' NONOPERATING REVENUES (EXPENSES) { interest and other revenues 39,494.847 146,373 ; interest on revenue bonds and other debt (224,171,713) -- -, interest capitahred during construction 3.230,690 - l
. Amortizabon of assets and deferred items .18,444,600 -
Deterred nuclear fuel revenue . (3,032,897) - f Depreciation taken on contributions 11,100,071 - Other nonoperatng revenues (expenseby . (1,293,095) 587,471 Totalnonoperating revenues (expenses) (156,167,497) 733,844 i Costs to be recovered in future years 25,006,668 - income before operatng transfers 132,700.826 1,305,265 l OperatinD transfers: Operabng transfers b 13,805,105 - Operating transfers out (79,728,114) {727) 25) ,l Income before extraordinary (gain) loss 66,777,817 577,940 ! Extraordinary (gain) loss on bond debt erbnguishment 102,601 ' - i Net income 66.880,418 577,940 Add depreciabon transferred to contribubons 886,557' -- Net merease in retarned earnings / fund balances 67,766,975 577,940 . , 711,947,262 1,428,481-Retained carrungs/ fund balances at beginning of year Retained earnings / fund balances at end of year $- 779.714,237 2,006.421-- , i The accompanying notes are an integral part of the financial statements. -l L(
~;
f I ( i k 12 m
CITY OF AUSTIN, TEXAS , Exhibit A-4 Totals Fiduciary Fund Type (Memorandurn Only) Nonexpendable Pension Trust Trusts 1992 1991 I
- - 578,276.283 571,816,378
- - 124,178,104 109.106,638
- - 55,766,967 41,615,863
- - 13,490,102 26,460,602
- 37,794,783 37,794,783 34,640,130
- - 33,871,204 2,344,463
- 37,794.783 843,377,443 785,984.074
- - 274,749.207 271,461,552
- - 116,826,957 101,009.607 30,924,583 33,521,526
- - 11,962,360 30,553,585
- - 98,686.477 93.302,655
- 20,312,201 20,312,201 19.698,839
- 4.585,530 4,585,530 5,981,031
- 24,897,731 566,047,315 555,528,795
- 12,897,052 277,330.128 230,455,279
- 58,425,119 98,066,339 101.032,016 (224,171,713) (230.890,578)
- - 3,230,690 1,435,101
- - 18,444,600 593,471 .
(3,032,897) (7,394,043)
- - 11,160,071 10.688,938 (705,624) (1,811.267) 58.425.119 (97,008,534) (126,346,362)
- - 25,006.668 22,990,072
- 71,322,171 205,328,262 127,098,989
- - 13,805,105 22,801,637 (80,455,439) (69.153,717)
- 71,322,171 138,677,928 80,746,909 t
- - 102,601 (425.037)
- 71,322,171 138,780.529 80,321,872
- - 886,557 881,628 I
- 71,322.171 139,ti67,086 81,203,500 26,374 524,820.971 1,238,223,088 1,157,019,588 -
26,374 596,143.142 1.377,890.174 1,238,223,088 f I
. t 6
i O 13 [
All PROPRIETARY FUND TYPES AND SIMil.AR TRUST FUNDS CITY OF AUSTIN, TEXAS , COMBINING STATEMENT OF CASH FLOWS Exhibit A-5 i Year ended September 30,1992 With Comparative totals for year ended September 30,1991 Fiduciary Totals i Proprietary Fund Types Fund Type (Memorandum Only) + internal Nonexpendable Enterprise Service Trust 1992 1991 CASH FLOWS FROM OPERATING ACTIVITIES: i Cash recerved from customers $ 759,962,927 14,569,903 - 774,532,830 752,973,220 f' Cash payments to suppliers for goods and services (235,622,024) (7.724,894) - (243,346,918) (254,705,314) Cash payments to employees for services (162,396,680) (6.600,120) - (168,996,800) (154,901.058) Cash received from other govemments 30,976,789 - - 30,976,789 - Other operating revenues (6,705,194) 137,560 - (6,567,634) (7,539,881) Not cash provided by operating activities 386,215,818 382,449 - 386,598,267 335,826,967 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers in 13.805,105 - - 13,805,105 22,801,637
- Operahng transfers out (79,728,114) (727,325) -
(80,455.439) (69,153,717) investment by enterpnse funds - - - - (1,212,668) . Contnbution (to) from murucipahty - - - - 27,065 Proceeds from rental receipts 293,683 - - 293,683 - ( interest paid on revenue notes and other debt (297,807) - - (297,807) (1,466,703) . Increase in deterred assets (369,113) - - (369,113) (5,163,099) l' Loan from General Fund (10,000) - - (10,000) 10,000 Contributions from private sector 84,310 - - 84,310 - l Net cash used by noncapital ! financing activities (68,221,936) (727,325) - (66,949,261) (54,157,485) i CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from long-term debt issues 8,840,000 - - 8,840,000 13,100,000 ' Prncipal paid on long-term debt (41,057,804) - - (41,057 A04) (35,702,485) Contnbutions from private sector 68,619 - - 68,619 - Proceeds from the sale of fixed assets 219,950 593,799 - 813,749 754,552 Accrued anterest recerved 4,216,797 - - 4,216,797 952,689 Interest paid on revenue bonds and other debt (210,416,653) - - (210.416.653) (215,328,737) { Acquisition and construction of caprtal assets (147,781,600) (4,720,812) - (152,502,412) (147,353,803) ! Contnbubons (to) from murucipahty (2,258,218) 3,829,443 - 1,571,225 11,037,732 Contnbutrons from State and Federal governments 4,259,402 - - 4,259,402 1,784,015 Contnbutions an aid of construction 7,443,588 - - 7,443,588 6,209,859 Bond issuance costs (31,283) - - (31,283) (73,534) : Cash paid for debt refundings!defeasances (25,491.655) - - (25,491,655) (25,989,821) ! Cash paid for nuclear bel mventory (9.603,533) - - (9,603,533) (2,183,030) } Cash recerved from annexation - - - - 6,577,916 4 increase (decrease) in escrow depos:ts 252.847 - - 252,847 (390.846) Net cash used by capital and related , financing activities $ (411,339,543) (297,570) - (411,637,113) (386.605,493) [ (continued) f The accompanying notes are an integral part of the financial statements ! t 1
i ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS CITY OF AUSTIN, TEXAS
- COMBINING STATEMENT OF CASH FLOWS Exhibit A-5 i Year ended September 30,1992 (Continued) .
With comparative totals for year ended September 30,1991 j Fiduciary Totals Proprietary Fund Types Fund Type (Memorandum Only) ; internal Nonexpendable l Enterprise Service Trust 1992 1991 CASH FLOWS FROM INVESTING ACTIVITIES: l Purchase ofinvestment securrtres $ (969,600,298) - - (969,600,298) (1,160,151,216) Proceeds from sale and maturibes of investment i 1,011,072.139 - - 1,011,072,139 1,172,t '2,481 ! securnies Proceeds from settlement annuity 16,213,911 - - 16,213,911 - Proceeds on long-term receivables - - - - 14,823,714: I Inte*est on investments 41,022,684 146.373 - - 41,169,057 54,304,857 ! Net cash provided by investing actrvities 98,708,436 146,373 - 98,854,809 81,589,836 ,j Net increase (decrease) in cash and cash equivalents 7,362,775 (496,073) - 6,866,702 (23,346.175) Cash and cash equivalents at beginning of year 250,783,856 4,246,962 26,374 255,057,192 278,403,367 . Cash and cash equivalents at end of year $ 258,146,631 3,750,889 26,374 261,923,894 255,057,192 {
~!
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income $ 263,861,655 571,421 - 264.433,076 221,495,019.- Adpstments to reconcile operating income to net ' cash provided by operabng acbvibes: Depreciabon 97,806,227 956,321 - 98,762,548 93,385,037 Anowance for uncollecbble accounts 5.867,724 14.520 - 5,882,244 9,658,439' Amortizabon 12,636,430 - ' - 12,636,430 9,577,072 Contribubon from State and Federal govemments - (1,057,312) - (1,057,312) -- i Change in assets and habilees; (Increase)in working capital advances (531,025) - - (531,025) (1,447,001) r a (Increase) decrease in accounts receivable (5,324,381) 17,613 - (5,306,768) 4,481,243 (Increase) decrease in receivable from other governments 258,742 - - 258,742 (2,035,927)
- 4 (Increase) decrease in inventory 128,621 (25.630) -
102,991 (7,002,504). , (Increase)in prepaid expenses (374,436) - - (374,436) (1,395,860)
; Decrease in deferred costs 1,807,453 - - 1,807,453 - 9,297,1M increase (decrease)in accounts payable 8.948,510 (108,7299 - 8,839,781 (44,764 increase in accrued payroll and compensated absences 2,790,659 14,245 - 2,804,904 2,119,833 ,
(Decrease) in due to third party = reimbursement program (425,375) - - (425.375) _ (Decrease) in claims payable - - - - (6.393,251) 1,108,000 Increase (decrease) in due to other funds (1,108.000) - - (1,108,000) ! (Decrease) in deferred revenue (1,733,955) - -- (1,733,955) (1,308,407) ; (Increase) in unrecovered fuel revenue (1,188,419) - - (1,186,419)- -
-l increase (decrease) in other liabilibes (403.094) - -
.(403,094) 376,265' !
Increase in decommissioning expense payable 3,290.668 - - 3,290.666 3,178,432 . (Decrease) in customer deposits (30,240) -- - (30,240) .(434,478) ~, Decrease in inverstment in internal service funds - - - - 1,212,688 - ; (Increase) in deferred Fayette coal expenses (61,944) - - (61.944) - Total adjustments 122,354,163 (188,972) - 122.165,191 114,331,948 _ I
?
Net cash provided by operating activities $ 386.215,818 352,449 - 388,598,267 ' 335,826,967 (continued) 7 The accompanyrng notes are an integral part of the financial statements. j s ; 4 t w 6
+ . app
= 15 l w = v -, w g- m - ,+we
i A11 PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS CITY OF AUSTIN, TEXAS COMBINING STATEMENT OF CASH FLOWS Exhibit A-5 Year ended September 30,1992 (Continued) With comparative totals for year ended September 30,1991 Fiduciary Totals Proprietary Fund Types Fund Type (Memorandum Only) Internal Nonexpendable Enterprise Service Trust 1992 1991 NoNCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: Municipal ublity district assets piaced in service $ 47,199,042 - - 47,199,042 24,016 736 increase in deferred assets / expenses 10,497.303 - - 10,497.303 35,90e.160 Deferred loss on extinguishments of debt 59,350,733 - - 59,350,733 24,357,509 Bonds issued for the advance refunding of debt 635,467,277 - ~ 635,467,277 281,665,000 Sond discounts and issue costs on advance refundings 33,561,901 - - 33,561,901 (11,990.000) Bond premium on advance refunding (23,761,215) - - (23,761,215) - Reduction oflong-term debt due to advance retJndangs (576,685,001) - - (576,685,001) (287,115,000) Unamortized bond discounts / issue costs on advance ref andings (9.246,862) - - (9,246,862) 4,765 increase in nuc6., ;ael expense payable (3,032,897) - - (3,032,897) (7,394,043) Tax and revenue bonds assumed from annexation - - - - 7,470,000 increase in capital appreciation bond interest payable (d,902,840) - - (8,902,840) (6,633,347) , Fixed assets acquired through capital teases - - - 720,172 Fixed assets contributed (to) other funds (1,002,617) (4,816,267) - (5,818,684) (3,821,727) Fixed assets contributons from annexation - - - - 5,738,364-Faed asse',s acquired through interfund payable - 253,302 - 253,302 - Contributed facdrbes 1,148,691 (1,057,312) - 91.379 829.973 Contributions reclassifed to long-term debt (1,579,000) - - (1,579,000) - Amortizabon of bond discounts / issue costs (6,141,722) - - (6,141,722) (493,014) Amortzation of deferred gains on refundings 3,548,834 - - 3,548,834 3,755,242 Amortization of deferred assets (4,243,161) - - (4,243,161) (4,011,685) Amortzation of coal and nuclear fuelinventory (5,575,917) - - (5,575,917) (5,575,917) Amortzation of dM wred deprecishon 25,281,404 - - 25,281,404 6,900,478 Depreciation taken on contributions 12,046,628 - - 12,046,628 11.570,566 Loss on disposal of assets (1,292,669) (6,328) - (1,298,997) (2,431,574) Costs to be recovered in future years 25,006,668 - -- 25,006,668 22,990,072 Gain (loss) on extnguishment of debt 102,601 - - 102,601 (425.037) Due to other funds for ftxed assets (277.428) - - (277,428) - Reducbon in other recewables (1,912,317) - - (1,912,317) - (Decrease) in arbitrage rebate payable (273,170) - - (273,170) - [ lnvestments contributed in aid of construction 2,205,000 - - 2,205,000 - The accompanying notes are an integral part of the financial statements. [ t i f i I i 1 16 _
l, NOTES TO COMB!NED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 Note Page 1 Reporting Entity 18 2 Significant Accounting Policies 19 , 3 Budget Basis Reporting 28 - 4 Deficits in Fund Balance and Fund Equity 29 5 Pooled Investments and Cash 30 6 Investments 31 7 Property Taxes 33 8 Restricted Assets- Enterprise Funds 34 9 Fixed Assets 35 10 Retirement Plans 37 11 General Long-Term Debt 43 12 Utility Funds - Revenue Bonds and Other Long-Term Debt 46 I 13 Other Enterprise Debt 49 . 14 Debt Service Requirements 51 15 Interfund Receivables and Payables 57 16 Interfund Transfers 58 17 Segment Information 59 18 Joint Operations 59 19 South Texas Project 64 20 Litigation 66 21 Commitments and Contingencies 67 22 Other Post-Employment Benefits 70 23 Subsequent Events 70 , b 1 A D
=
17
P CITY OF AUSTIN, TEXAS 160TES TO COMBINED FINANCIAL STATEMENTS September 30,1992 (Continued) t T 1 - REPORTING ENTITY The City of Austin, Texas (the City)is a municipal corporation incorporated under Article XI; Section 5 of the Constitution of l the State of Texas (Home Rule Amendment) The City operates under a Council-Manager form of government and provides I services, as authorized by its charter, to advance the welfare and safety of the City and its inhabitants. This report includes the financial statements of the funds and account groups required to account for thosa activities, i organizations, and functions related to the City and controlled by or dependent upon the City's governing body, the City I Council The enteria for including activities used by the City in preparing its financial statements are in conformity with the National Council on Govemmental Accounting (NCGA) Statement 3, De5ning the GovemmenfalReporting Entity. Control by 3 or dependence on the City was determined on the basis of budget adoption, taxing authonty, authonty to establish rates, f l outstanding debt secured by revenues or general obligations of the City, the City's obligation to finance any deficits that may occur, funding and selection of governing authonty, and other evidence of financial interdependence and the abihty to 3 A exercise oversight responsibility. The City's major activities or functions include police and fire protection, emergency medical services, parks and libraries, pubhc health and social services, planning and zoning, and general administrative services. In addition, the City owns and ' operates certain major enterprise activities, including an electric utility system, waterworks and sewer utility system, hospital, i airport, and other enterprise activities These activities are included in the accompanying financial statements. Pension Trust Funds , i j The City participates in funding the following nension trust funds: g City of Austin Employees' Retirement and Pension Fund (Employees' Fund) ! City of Austin Police Officers' Retirement and Pension Fund (Police Officers' Fund) ; y Fire Fighters' Relief and Retirement Fund of Austin, Texas (Fire Fighters' Fund). ! i These pension funds function for the benefit of various City employee groups. t Since August 26,1991, and pursuant to State legislation, the operations of the Employees' Fund and the Police Officers' t 1 Fund have been administered by their respective eleven-member boards, each of which consists of one City Council Member; the City Manager or designee; the Director of the Financial Services Department; four active employee members of j the system elected by the members of the system; three legally qualified voters of the city, two of which are designated by the City Council, and one tnat is designated by the board; and a retired member elected by the retired members of the ; system. The Fire Fighters' Fund is governed by a five-member board that includes the Mayor and the City Treasurer. The board l administers all of the funds operations. t . The City and pension plan participants are obligated to fund habihties of the pension funds based upon actuarial valuations. f Expenses for administration and operation of the funds are paid entirely by the funds. , i Generally accepted accounting principles for local governments require that the City's pension funds be included in the City's reporting entrry, and accordingly, these funds are reported in this Comprehensive Annual Financial Report as pension trust funds-i The fiscal years differ for the City (September 30) and the pension funds (December 31). The separately available audited i financial statements of the pension funds for the year ended dunng the City's fiscal year (December 31,1991) have been 4 included in the City's 1992 financial statements in order that accurate data may be presented in a timely manner. Significant events occurring subsequent to the pension funds' year end are disclosed in Note 10. City of Austin Deferred Compensation Plan for City Employees The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. j The plan, available to all City employees, permits them to defer a portion of their salary until future years The City does not i make any contnbutions to the plan. The deferred compensation is not available to employees until termination, retirement, or unforeseeable emergency. Deferred compensation is available to employees' beneficiaries in case of death. i
- - - - - - , = - - - _ _ . _ _ _ _ _ _ _ _ _
i i t NOTES TO COMBINED FINANCIAL STATE!8ENTS CITY OF AUSTIN, TEXAS i September 30,1992 (Continued) . 1 - REPORTING ENTITY, continued All amounts of compensat:on deferred under the plan, all property and rights purchased with those amounts, and allincome attnbutable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) ; solely the property and rights of the City (without being restocted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors Participants' nghts under the plan are equal to those of general creditors of the City in an amour.1 equal to the fair market value of the deferred account for each participant. In management's opinion, the City has no liabil:ty for losses under the plan. However, the City does have the duty of due care that would be required of an ordmary prudent investor. The City believes it is unlikely that it will use the assets to - satisfy the claims of general creditors in the future. All assets of the plan are held by an independent administrator whose activity is monitored by a board consisting of City employees. It is appropriate to include this entity in the City's 1992 financial statements since the City has title to these ; assets. The deferred compensation plan is reported as an agency fund, and its assets are presented at market value at
- September 30,1992.
Joint Operations The City has entered into participation agreements on the following joint projects: South Texas Project - operation of a nuclear power plant; , Fayette Power Project - operation of two coal-fired generating units; Brushy Creek Water Control and improvement District No.1 of Williamson and Milam Counties - construction and operation of a wastewater collection and treatment system; and + Various utility construction projects - construction of certain contract facilities consisting of additions, improvements and extensions of the City's Waterworks and Sewer System. Additional disclosure conceming these joint operations is provided in Notes 18 and 19. Significant Organizations Excluded from the Reporting Entity ! The following significant organizations are not part of the City and thus are excluded from the accompanying financial t statements: } The Austsn independent School Distnct (the District) is a separate governmental unit from the City. The District is governed by a distinct board that levies taxes, approves budgets, maintains accounting records and directs the ; operations of the District. This board is elected by citizens living within the District's boundaries, which are not necessarily identical to those of the City. The Austin Housing Authonty (the Authonty), established under the Housing Authority Laws of Texas, operates i independently of the City. Although the City Council appoints the board of directors, the City has no operational oversight for the Authonty and no budgetary or financial respcnsibilities. The Authority aids the private sector in ' providing adequate housing for low-income families by making low-cost financing available and by providing low-cost : rental housing. The Capital Metropolitan Transit Authonty (the Authonty) is responsible for mass transit operations in Austin, Travis i County, and surrounding areas. The Authonty is governed by a separate board that is appointed by the City Council, the County Commissioners, and the mayors of other local municipal: ties. These bodies have no power to remove board 4 members but may ask for resignations or make suggestions regarding operations of the Authority. The City has no , operational oversight for the Authority, no budgetary or financial responsibilitic:, r.r.d no interest in the retained earnings L of the Authority. On the basis of current authoritative literature, the City believes that continued exclusion from the reporting entity is appropriate a 2 - SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the City relating to the funds and account groups included in the accompanying financial statements conform to generally accepted accounting principles applicable to state and local govemments.
~ l 19
i NOTES TO COMBINE 0 FINANCIAL STATEMENTS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) { 2 - SIGNIFICANT ACCOUNTING POLICIES, continued Generally accepted accounting principles for local governments include those pnnciples presenbed by the Governmental ' Accounting Standards Board (GASB) in its publication GASB Statement 1 entitled Authontative Status of NCGA Pronouncements and AICPA Industry Auditing Guide, and all subsequent GASB statements, interpretatnons, concept , statements, and technical bulletins; the National Council on Governmental Accounting (NCGA) in the publication entitled
- Govemmental Accounting. Audithg and Financial Reporting, including NCGA Statements 1 through 7 and interpretations thereof, and by the American Institute of Certified Public Accountants in the publication entitled Audits of State and Loca/ l Govemmental Units. The following represent the more significant accounting and reporting policies and practices used by l the City.
Basis of Presentation
?
The accounts of the City are organized and operated on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a self-balancing set of accounts that comprise its assets, liabilities, fund balances or retained earnings, revenues, and expenditures or expenses. The various funds are grouped by category and type in the financial statements. The City maintains the following fund types within three broad fund categories and the account groups: Governmental Funds 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 liabihties (except tnose, if any, which should be accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is on determination of financial posrtion and changes in finareial position rather than on determination of net income. The following governmental fund types are maintained by the City: I General Fund - The General Fund is the general operating fund of the City. It is used to account for a!! financial resources except those required to be accounted for in another fund. All general tax revenues and other receipts that are not allocated i by law or contractual agreement to other funds are accounted for in this fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. There are i four major groups of funds within the special revenue funds, three of which account for the activities related to grant programs, and one that relates to activities for which expenditures are legally restricted These include the Federal grant l funds (both direct and indirect funds), State grant funds, other special revenue grant funds, and other special revenue funds. j t Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, , generallong-term debt pnncipal, interest, and related costs. i Capital Project Funds - Capital project funds are used to account for financial resources for the acquisition or construction of major capital facihties (other than those reported within proprietary funds and trust funds) Capital projects are funded primarily by general obligation bonds. : In 1981, the City Council passed an ordinance that requires the establishment of a separate fund for each bond proposition approved in each bond election. There are eleven major groups of funds within the capital projects funds that account for ! the activ! ties related to vanous capitalimprovement projects as follows: ; i o Funds Authorized Prior to 1981; Funds Authorized August 29,1981 for street and drainage, fire stations, traffic signals and emergency medical service projects; Funds Authorized September 11,1982, for various purposes; , Funds Authorized October 22,1983, for Jollyville Road improvements; l' Funds Authorized September 8,1984, for various purposes; Funds Authonzed January 19,1985, for Cultural Arts; I Funds Authorized July 26,1985, for Parks and Recreation; Funds Authorized September 26,1985, for Art in Pubhc Places; Funds Authorized December 14,1985, for various purposes; , Funds Authonzed September 3,1987, for street improvements; and Other Funds estabbshed by ordinance for various purposes and funded by capital project interest income. i
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS Septembsr 30.1992 (Continu:d) 2 - SIGNIFICANT ACCOUNTING POLICIES, continued Proprietary Funds Proprietary funds are used to account for the City's ongoing organizations and activities that are similar to those found in the povate sector. The measurement focus is on capital maintenance and on determination of net income, financial position, and changes in financial position. Enterprise Funds - Enterpnse funds are used to account for operations: (1) 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 pubhc on a continuing basis be financed or recovered primarily through user charges, or (2) where the governing body has decided that penodic determination of revenues earned, expenses incurred, or net income is appropnate for capital maintenance, pubhc policy, management control, accountabihty, or other purposes The City's enterprise funds include the following: Utility Funds - The Electnc Light and Power System Fund and the Waterworks and Sewer System Fund are combined for reporting purposes as the utility funds. These funds are primarily supported by electric and water and wastewater user charges. Other Enterprise Funds - The City's nine other enterprise funds account for a wide range of actrvities including. Fund Accounts For Hospttal Activities of the City-owned Brackenndge Hospital Solid Waste Services Solid waste collection and disposal activities Softball City sponsored softball activities Golf Public golf courses ' Tennis Public tennis centers Airport Operations of the Robert Mueller Municipal Airport Convention Center Operations of the Convention Center, Palmer Auditorium, the City Cohseum, and the Austin Convention and Visrtors' Bureau Drainage Drainage management activities Transportation Street maintenance activities Internal Service Funds - Internal service funds are used to account for the financing of goods or services provided by one department or agency to other City departments or agencies or to other governmental units on a cost-reimbursement basis. The City maintains two intemal service funds- the Fleet Maintenance Fund, which is used to account for maintenance costs of City-owned vehicles and related revenues, and the Treasury Fund, which is used to account for the activities of the City's Treasury Office. Fiduciary Funds Fiduciary funos are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds Fiduciary funds include expendable and nonexpendable trust funds, pension trusts, and agency funds Expendable Trust Funds - Espendable trust funds are accounted for in essentially the same manner as governmental , funds. The measurement focus is on determination of changes in financial position rather than on net income. Nonexpendable Trust and Pension Trust Funds - These funds are accounted for in the same manner as proprietary funds, with the measurement focus on determination of net income and capital maintenance. The City has one nonexpendable trust fund, which is not active. Agency Funds - Agency funds are purely custodial (assets equalliabihties) and thus do not involve measurement of results of operations-Account Groups Account groups are used to estabbsh accounting control and accountabihty for the City's general fixed assets and general , long-term liabihties. The following are the account groups maintained by the City: 21
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN. TEXAS Septernber 30,1992 (Continued) 2 - SIGNIFICANT ACCOUNTING POLICIES, continued General Fixed Assets Account Group - This account group accounts for all fixed assets of the City other than those accounted for in the proprietary funds. General Long-Term Debt Account Group - This account group accounts for and provides control over all long-term liabilities other than those accounted for in the proprietary funds, including unmatured general obligation bonds. Basis of Accounting Basis of accounting refers to the time at which revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Govemmental funds, expendable trust funds, and agency funds are accounted for on the modified accrual basis of accounting Under the modified accrual basis of accounting, certain revenues are recorded when susceptible to accrua! (i.e., both measurable and available). Available means collectible wrthin the current period or soon enough thereafter to be used to pay liabihties of the current period. Expenditures, if measurable, are generally recognized on the accrual basis of accounting when the related liabihty is incurred. Exceptions to this general rule include the unmatured principal and interest on general obligation long-term debt, which is recognized when due. This exception is in conformity with generally accepted govemmental accounting principles. l Property tax revenues are recognized when they become available in accordance with the National Council on Governmental Accounting (NCGA) Interpretation 3 Revenue Recognition - Property Taxes, in this case, available means when due or past due, and receivable within the current period or soon enough thereafter to be used to pay liabilities of the current period (within 60 days). Tax collections expected to be received after the 60-day availabihty period are reported as deferred revenue. Sales taxes, mixed drink taxes, and certain franchise fees are recorded when susceptible to accrual, i.e., both measurable and available. Monies co!!ected for heenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except earnings on investments) are recorded as revenues when received because they are generally not measurable until then. Investment earnings are recorded on the accrual basis in all funds. In appfying the susceptible to accrual concept to intergovemmental revenues, the legal and contractual requirements of the numerous individual grant programs are used for guidance. For most of the City's grants, monies must be expended for the specific purpose or project before any amounts will be paid to the City. For all grants, revenues are recognized based upon the expenditures recorded. Proprietary funds, nonexpendable trust funds, and pension trust funds use the accrual basis of accounting, under which revenues are recognized in the accounting penod in which they are earned and become measurable Expenses are recorded in the accounting penod incurred, if measurable. Revenues in the utility funds are recognized as they are billed to customers on a cyclical basis. Electric rates include a fixed rate and a fuel recovery cost-adjustment factor that allows recovery of coal, gas, purchased power, and other fuel costs. The City defers the revenues received for replacement of nuclear fuel inventory until the fuel is purchased. Unbilled revenues are recorded if actual fuel costs differ from amounts billed to customers, and any over collections or under collections are applied to the cost-adjustment factor two months later. Rates The City Council has exclusive original jurisdiction over utility rates and other services. The determination of utihty rates is based on the cost of operations and a debt service coverage approach. Historically, rates have been set by the City Council to be effective for the rate year treginning November 1 of each year. Budget in accordance with the City Charter, the City adheres to the following procedures in estabhshing its operating budgets: i I (1) At least thirty days prior to the beginning of the new fiscal year, the City Manager submits a proposed budget to the City Council. The budget represents the financial plan for the new fiscal year and includes proposed expenditures and the means of financing them. l
%t d*
i NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 2 - SIGNIFICANT ACCOUNTING POLICIES, continued { (2) Pubhc hearings are conducted on the budget (3) The budget is legally enacted by the City Council no later than the twenty-seventh day of the last month of the old f. scal year, through passage of an appropriation ordinance and tax levying ordinance. (4) The City Manager has the authority to transfer appropriation balances from one expenditure account to another within a > single office, department, or agency of the City. The City Council must approve transfers of appropriations from one office, department, or agency to another. The budgetary data presented in these financial statements have been revised for amendments authonzed dunng the year. A reconciliation of original to amended budget for the General Fund is presented in Note 3. (5) Formal budgetary control through the accounting system is employed as a management control device during the year , for the General Fund, Debt Service Fund and proprietary funds. Management control for the operating budget is maintained at the office, department or agency level Formal budgetary control through the accounting system is . employed as a management control device in the special revenue grant funds and capital projects funds for the hfe of the related grants or projects (6) Annual budgets are legally adopted for the General Fund, certain special revenue funds, the Debt Service Fund, certain trust funds, and proprietary funds. Budgets for the grant-related special revenue funds are estabhshed pursuant to the terms of the related Federal and State grant awards. A comparison of budget to actual is presented in the financial statements for all governmental funds that adopt annual budgets. A comparison of budget to actual for other fund types l is prepared for budget purposes, but is not legally required and is not presented in the financial statements. , Capital projects funds appropriations are increased on an annual basis through the budgetary process. However, the budgets are not binding on an annual basis. Rather, budgets are long-range and are used for planning purposes. 4 According!y, no companson of budyt to actualis presented in the financial statements for such funds. (7) The City Charter does not perm:t a deficiency of anticipated revenues over appropriations. If at any time during the fiscal year the City Manager determines that available revenues plus beginning fund balance will be less than total I d appropriations for the year, he shall reconsider the work programs of the departments and agencies and revise them to prevent deficit spending Expenditures may not legally exceed budgeted activities at the departmentallevel. (8) At the close of each fiscal year, any unencumbered appropriation balances (appropriation less current year expenditures and encumbrances) in the General Fund lapse or revert to the undesignated fund balance. In the proprietary funds, , unencumbered appropriations also lapse but do not revert to fund balance for accounting purposes because of the d,fferences in methods of accounting. Unencumbered appropriation balances m the grant-related special revenue funds ! and caprtal projects funds do not lapse at year end. Certain differences exist between the basis of accounting used for budgetary purposes (budget basis) and that used for i reporting in accordance with generally accepted accounting principles (GAAP basis). These differences, as well as other information regarding budgetary control, are described in Note 3 l l Encumbrances
]
Encumbrances represent commitments for unperformed (executory) contracts for goods or services. Encumbrance , accounting, under which purchase orders, contracts, and other commitments are recorded to reserve appropriations, is used in the governmental funds. Encumbrances outstanding at year end are reported as reservations of fund balance and do not constitute GAAP-basis expenditures or liabikties, since the commitments will be honored during the subsequent year, For budgetary purposes, unencumbered appropriations lapse at year end. Encumbrances outstanding at year end and the 4 related appropriation are available for expenditure in subsequent years. For govemmental funds, encumbrances constitute
- the equivalent of expend:tures for budgetary purposes and accordingly, the accompanying financial statements present ;
7 comparisons of actual results to the budgets for governmental funds on a budget-basis (see Note 3). I u e
"[* *n 23
NOTES TO COMBINED FINA!0CIAL STATEMENTS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) 3 - SIGNIFICANT ACCOUNTING POLICIES, continued Pooled Investments and Cash Cash balances of all C1/ 1 funds (except for certain funds shown in Note 6 as having non-pooled investments) are pooled and invested. Investments purchased with pooled cash, consisting primarily of U.S. government obligations, U.S. agency obligations and repurchase agreements, are recorded at cost, which approximates market. Interest camed on investments purchased with pooled cash is allocated monthly to each participating fund based upon the fund's average daily balance. Funds that incur a negative balance in pooled cash and investments, classified as " advanced pooled investments and cash," are not allocated interest earnings nor charged interest expense. 1 Investments For all funds except the pension trust funds, investments in certificates of deposit, U. S. government obligations, State and local government obligations and other investments are recorded at cost. Amortization of premium and accretion of discount on investment purchases are not recorded over the term of the investment; however, the effect of this policy on the financial statements of the various funds is immaterial. investments owned by the pension trust funds are stated at amortized cost. Premiums and discounts applicable to U.S. govemment secunties and corporate bonds are amortized or accreted by a straight-line method, which approximates the interest method, over the terms of the related secunties. Discounts on mortgage loans are accreted at the rate of eight percent (Fire Fighters' Fund) and ten percent (Employees' Fund and Police Fund) per year of the unaccreted portion of the discount for each respective loan. Reahzed gains or losses resulting from the sale of investments are determined by the specific cost of the securities sold. The market values of the funds' investments (see Note 6) are based on quoted market prices with the exception of mortgage loans, whose market values were determined based on estimated realizable value. l t inventories inventories are valued at cost, which is determined as follows: i Fund InventoryValuation Method General Fund Average cost (predominantly), some first-in, first-out Electric Fund Fuel oil and coal Last-in, first out , Materials, supplies, Fayette l fuel oil and nuclear fuel Average cost Water and Wastewater Fund Average cost i Hospital Fund Weighted average Drainage Fund Average cost Transportation Fund Average cost Fleet Maintenance Fund Fleet Services Division First-in, first out Inventones for all funds use the consumption method and record expenditures when issued. Inventories reported in the General Fund are offset by a fund balance reserve, which indicates they do not represent 'available spendable resources". Property, Plant and Equipment - Proprietary Funds Property, plant and equipment owned by the proprietary funds are stated at historical cost. Maintenance and repairs are charged to operations as incurred, and improvements and betterments, which extend the useful lives of fixed assets, are capitalized Interest paid on long-term debt in the utility funds is not capitalized unless such debt is issued to pay the interest i 24 .
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (C:ntinuid) I 2 - SIGNIFICANT ACCOUNTING POLICIES, continued costs incurred during construction. Depreciation of plant and equipment classified by functional components is provided by the straight-line method over their estimated useful hves. Estimated useful lives are as follows: Enterprise Funds: . Utility Funds: Plant 30-50 years improvements to grounds 30-50 years Transmission and distribution system 12-50 years Other machinery and equipment 7-30 years Vehicles 7 years Other Enterprise Funds: Buildings and improvements 40 years improvements to grounds 15 years Machinery and equipment 7-12 years Vehicles 7 years internal Service Funds: , Fleet Maintenance Fund: Buildings and improvements 40 years improvements to grounds 15 years Machinery and equipment 7-12 years Vehicles 7 years Depreciation of completed but unclassified fixed assets is provided by the straight-line method, using a composite rate. When fixed assets of preprietary funds are retired from service or otherwise disposed of, a gain or loss on disposal of assets is recognized. Contributions of funds from Federal, State or local grants, which are restricted for the purpose of purchasing property, plant, and equipment and contnbutions in aid of construction, are recorded as equity contributions when received. Depreciation on contnbuted assets is recorded as an expense in the statement of operations and then transferred to the related accounts. , Contributions of funds from the municipality are recorded as equrty contributions when received. General Fixed Assets General ftxed assets have been acquired for general governmental purposes. Assets purchased or constructed are recorded as expenditures in the governmental funds and capitalized at historical cost in the General Fixed Assets Account Group. Contributed fixed assets are recorded in the General Fixed Assets Account Group at estimated fair market value at the time received. The City does not capitalize public domain general fixed assets (infrastructure) and, accordingly, no such assets are + recorded in the General Fixed Assets Account Group. Infrastructure consists of certain improvements other than buildings, q including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Such assets ; normally are immovable and are of value only to the City. Therefore, the responsibility for Stewardship for capital f expenditures is satisfied without recording these assets. No depreciation has been provided on general fixed assets. No interest has been capitalized on general fixed assets. { Long-Term Debt
. The debt service for general obligation bonds and other general obligation debt issued to fund general government capital l projects is paid from tax revenues. Such general obhgation debt is recordtd in the General Long-Term Debt Account Group. )
i The debt service for general obligation bonds and other general obligation debt issued to fund proprietary fund capital ! projects is normally paid from net revenues of the applicable proprietary fund, although such debt will be repaid from tax j revenues if necessary. Such general obligation debt is shown as a specific liabiltty of the applicable proprietary fund, which is appropriate under generally accepted accounting principles and in view of the expectation that the proprietary fund will i provide resources to service the debt. l 4 25
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN TEXAS September 30,1992 (Continued) 2 - SIGNIFICANT ACCOUNTING POLICIES, continued Revenue conds that have been issued to fund capttal projects of certain enterpnse funds are to be repaid from net revenues of these funds Such debt is recorded in the funds Compensated Absences I All full-time employees accumulate vacation beneftts in varying annual amounts up to a maximum allowable accumulation of 240 hours Sick leave benefits are earned by all full-time employees at a rate of twelve days per year and may be accumulated without limit. Upon termination, an employee is reimbursed for all accumulated vacation days. If the terminating employee has at least five years continuous service, was employed prior to October 1,1986, and leaves in good I standing, reimbursement is also ma^ for all accrued sick leave up to ninety days. Certain employees are also allowed to accumulate credit for compensatory time in lieu of overtime pay up to 120 hours. Compensatory time accrued by employees is taken into consideration when calculating accrued compensated absence liabilrties. 1 For governmental funds, the estimated current portion of the accrued vacation and sick pay liability is recorded as an expenditure and liability in the General Fund, with the non-current portion of the liability recorded in the General Long-Term Debt Account Group. Actual vacation and sick benefits paid dunng the year are recorded as expenditures in the General Fund The current portion is estimated based on amounts paid to terminating employees during the most recent fiscal year, For proprietary funds, vacation and sick pay are recorded as an expense and related liability in the year earned. The current ' portion is estimated based on an analysis of the historical use of benefits by the employees. I Pension Plans It is the policy of the City to fund pension costs annually. Pension costs are composed of normal cost and, where applicable, amortization of unfunded prior service cost (see Note 10). i Federal and State Grants, Entitlements and Shared Revenues Grants, entitlements and shared revenues may be accounted for within any of the seven fund types. The purpose and i requirements of each grant, entitlement, or shared revenue are analyzed to determine the proper fund type in which to record r the related transactions Grants, entitlements and shared revenues received for activities normally recorded in a particular i fund type may be accounted for in that fund type, provided that applicable legal restrictions can be satisfied. , Revenues received for activities normally recorded in other governmental funds are accounted for within these special [ revenue fund groups Federal grant funds, State grant funds, and other special revenue grant funds. Capital grants ; restricted for capital acquisitions or construction, other than those associated wrth proprietary type funds, are accounted for in the apphcable capital projects funds Revenues received for operating actrvities of proprietary funds or revenues that may be used for either operations or capital expenditures at the discretion of the City are recognized in the applicable proprietary : , fund. Grant monies restncted for acquisrtion or construction of capital assets are recorded as contnbuted equity in the { ! apphcable proprietary fund intergovernmental Revenues, Receivables and Liabilities f f Intergovemmental revenues and related receivables anse through funding received from Federal and State grants These revenues and receivabies are earned through expenditure of monies for grant purposes. Intergovernmentalliabilities arise pnmanly from funds held m an agency capacity for other local governmental units. l l Transactions Between Funds i i i l During the course of normal operations, the City has numerous transactions between funds. Short-term advances between funds are accounted for in the pooled investments and cash accounts Transactions between funds that would be treated as ! revenues, expenditures, or expenses if they involved organizations external to the govemmental unit are accounted for as revenues, expenditures, or expenses in the funds involved. Transactions between funds that constitute reimbursements for expenditures or expenses are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. 2 26 !
NOTES TO COMBINED FIMANCIAL STATEMEMTS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) 2 -SIGNIFICANT ACCOUNTING POLICIES, continued Non-recurnng or non-routine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equity transfers to proprietary funds are treated as contnbuted capital, and such transfers from propnetary funds are reported as reductions of retained earnings or contnbuted capital as appropnate in the circumstances. All other legally authonzed transfers are treated as operating transfers and are included in the results of operations of both governmental and proprietary funds. Comparative Data Comparative data for the pnor year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, complete comparative data, (i.e., presentation of prior year totals by fund type) have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Reclassifications Certain comparative data have been reclassified to present them in a manner consistent with the current year's financial statements. Total Columns on Combined Financial Statements Total columns on the combined financial statements are captioned " Memorandum Only" to indicate they are presented only to facilttate financial analysis. Data in these columns do not present isnancial position, results of operations, or cash flows in conformity with generally accepted accounting principles. No consohdating or other eliminations of interfund balances or transactions were made in arriving at the totals. Such data are not comparable to a consolidation. Deferred items The City's utihty funds are reported in accordance with Statement of Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation. Certain utihty expenses that do not currently require funds are deferred to future penods in which they are intended to be recovered by rates. Likewise, certain credits to income are deferred to periods in which they are matched with related costs. Deferred expenses will be recovered in these future periods by setting rates sufficient to provide funds for the related debt service requirements. Statement of Cash Flows For purposes of the statement of cash flows, the City considers cash and cash equivalents to be currency on hand, cash held by trustee, demand deposits with banks, and all amounts included in pooled investment and cash accounts. Capital leases represent the City's predominant non-cash activity. However,1992 caprtal lease transactions are not material to the City's propnetary or similar trust funds. Brackenridge Hospital Brackenridge Hospital has agreements with third-party payors that provide for payments to the hospital at amounts different from its established rates. The hospital has also entered into payment arrangements with certain commercial insurance carriers, health maintenance organizations, and preferred provider organizations. The basis for payment to the hospital under these agreements includes discounts from estabhshed charges and prospectively determined daily rates, in light of certain interpretations of the City Charter and applicable laws of the State of Texas, the hospital does not recognize the cost of providing charity care in its records. However, the hospital provides chanty care in the same manner i. N
=
9 27
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS - September 30,1992 (Continued) i 2 -SIGNIFICANT ACCOUNTING POLICIES, continued i as comparable hosprtals and has forgone the collection of associated revenues. The following information measures the estimated level of charity care provided during fiscal years 1992 and 1991: { 1992 1991 , Charges forgone, based on established rates $ 22,013,485 19,802,322 i Recovered through City of Austm funding (5.600,000) (5.600.000) Revenues forgone 16.413.485 14,202,322 T Estimated costs and expenses incurred to provide chanty care 5 10.833,000 9.089.000 This estimate of cost and expenses is based on the ratio of operating expenses including depreciation and interest as a percent of gross patient revenue. The ratios are 66% and 64% for 1992 and 1991, respectively. 3 - BUDGET BASIS REPORTING ! a - General The Crty of Austin prepares its annual operating budget on a basis (budget basis) that differs from generally accepted accounting principles (GAAP basis) in order to provide a meaningful comparison of actual results wrth the budget, the Combined Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Budget Basis for the General Fund, certain special revenue funds, and Debt Service Fund presents the actual and budget amounts in accordance ; with the City's budget basis. b-Reconciliation of GAAP Basis and Budget Basis Amounts - The primary differences between GAAP and budget reporting for the General Fund are the reporting of encumbrances and i the recording of certain transfers, payroll, and compensated absences on the accrual basis (GAAP), as opposed to the cash , basis (budget). Certain special revenue funds have a legally adopted annual budget. The reporting of encumbrances is the [ difference between GAAP basis and budget basis for these funds. Adjustments necessary to convert the excess of revenues i and other sources over expenditures and other uses on a GAAP basis to a budget basis for the General Fund and special , revenue funds are provided as follows: . General Special I Fund Revenue Funds Excess (deficiency) of revenues and other sources l over expenditures and other uses - GAAP basis $ 882,183 (5,424,410) Adjustment: Less excess (deficiency) of revenues and other sources over expenditures and other uses for nonbudgeted funds - GAAP basis - (2.634.697) , Adjusted excess (deficiency) of revenues and other sources over expendrtures and other uses - GAAP basis 882,183 (2,789,713) , Other adjustments: increase due to net payroll accrual 876,612 - Increase due to net compensated absences accrual 150,877 - Decrease due to outstanding 1992 encumbrances (5,717,762) (389,789) increase due to payments against prior year I encumbrances 2,341.092 309.872 l Excess (deficiency) of revenues and other sources E over expenditures and other uses - bud 2et basis $ (1,466,998) (2,869.630)
~!
Although the Debt Service Fund is prepared on a budget basis, no differences exist between GAAP basis and budget basis fund balance for this fund except for the amount of enterprise-related debt payments budgeted as operating transfers. . i 28
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) ! 3 - BUDGET BASIS REPORTING, continued i c-Budget Amendments The original budget of the General Fund was amended several times during 1992. The following table compares original to amended budgets: Amendments Original increase Amended Budget (Decrease) Budget REVENUES Taxes $ 116,317,747 - 116,317,747 Franchise fees 11,632,475 - 11,632,475 Fines, forfeitures and penalties 7,632,960 - 7,632,960 1.icenses, permits and inspections 5,914,508 35,325 5,949,833 , 7,693,827 358,481 8,052,308 Charges for services / goods 5,703.216 446.570 6,149.786 Interest and other I Total revenues 154 894,733 840.376 155.735.109 EXPENDITURES 6,955,881 158,800 7,114,681 Administration 9,090,448 274,583 9,365,031 Supportive services Urt>an growth management 8,301,668 50,000 8,351,668 Fiscal rnanagement 7,439,161 143,082 7,582,243 Pubhc safety 106.589,499 78,200 106,667,699 Pubhc services and utdities 17,042,640 374,501 17,417,141 Pubhc health: Physician stipend 4,950,000 227,490 5,177,490 Medcal Assistance Program-patient services payments to Brackenndge Hospital 7,510,000 (400.000) 7,110,000 Other pubhc health 24,087,866 492,038 24,579,904 ! Pubhc recreabon and culture 24,933,393 301.065 25,234,458 , Social services management 6,355,522 57,610 6,413,132 Nondepartmental expenditures 761,807 (177,308) 584,499 ; 224.017.885 1.580.061 225,597,946 Total expenditures TRANSFERS Operating transfers in 78,193.504 50,000 78,243,504 - Operahng transfers out (15.246.751) (25,500) (15.272.251) Total transfers 62.946,753 24.500 62.971,253 Excess (dericiency) of revenues and other sources over expendstures and other us?s 1 (6.176,399) (715,185) (6.891,584) The amended budget, which includes revenue reclassifications, is presented in the accompanying financial statements. The
. budgeted General Fund other requirements for employee training of $214,101 and tuition reimbursement of $85,000 are included in the original budget for the Human Resources Department. Terminal pay of $400,000 and wage and benefit :
adjustments of $361,B07 are included in the original budget for nondepartmental expenditures. The City Attorney's Office and the Office of the City Auditor exceeded their legally authorized appropriations during the year,
. There were no significant budget amendments to the debt service or special revenue funds.
4 - DEFICITS IN FUND BALANCE AND FUND EQUITY j At September 30,1992, the Liability Reserve Fund had a deficit fund balance of $647,797, Management intends to recover the deficit through future operating transfers. At September 30,1992, the Softball Fund and the Tennis Fund had deficits in retained eamings of $93,194 and 5939,454, respectively, although total Tennis Fund equity was $942,007. Management intends to recover these defierts in retained earnings through net eamings in future years. At September 30,1992, certain capital projects funds had deficit fund balances. Management intends to recover these deficits through future operating transfers.
" 29 ,
T NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS - September 30,1992 (Continued) 5 -POOLED INVESTMENTS AND CASH The following summanzes the amounts of pooled investments and cash and advances thereof by fund type at September 30,1992. Advanced Pooled Pooled Investments investments, > and Cash and Cash , General Fund 5 26,580,051 - Special Revenue Funds 28,241,728 3,878,743 Caprtal Projects Funds 63 '54,660 120,577 Enterprise Funds - current: Utikty 28,865,474 - Hospital (See Note 23a) 2,301,292 - Other 16,372,406 39,470 Enterpnse Funds - Construction: Utility 134,216,159 - Hosprtal 11,407,758 - Other 29,370,335 - Decommissioning account: Utihty 673,434 - Capitalimprovement: Other 3,082,938 - Operating reserve: Other 1,530,095 - Hotel occupancy tax account: Other 1,056,387 - Revenue account: Other 865,336 - l Enterprise Funds - testncted , Utility 17,420,636 - Enterprise Funds - deposits: Utility 6,279,919 - Other 12,179 - Internal Service Funds: Current 1,715,609 - l Construction account 2,026,680 - Fiduciary Funds 25,646.891. 9,321 Total pooled investments and cash 400,919,967 - l Total advanced pooled investments and cash (4.048,111) 4.048,111 investment by other funds in investment pool 5 396,871,856 Certain funds have made disbursements in excess of their individual equity in the City's investment pool. The balance of 7 these amounts has been reported in the combined balance sheet as advanced pooled investments and cash. l Reimbursement of advances will be made primanly through operating transfers from other funds or future operations, in special revenue funds, collections of grant receivables, sale of investments, or future revenues from other governments will reimburse the advance. f 30
NOTES TO COMBINED FIMANCIAL STAYEMENTS CITY OF AUSTIN. TEXAS ; September 30,1992 (Continued) 6 -lfNESTMENTS INVESTfAENTS Texas statutes authonze the City to invest in (1) obbgations of the U S Treasury or its agencies and instrumentakties; (2) direct obhgations of the State of Texas or its agencies; (3) other obhgations, the pnncipal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States (4) obligations of states, agencies, counties, or cities rated A or better by a national investment rating firm; (5) certificates of deposit that are insured by the , Federal Deposit Insurance Corporation or the Federal Savings and Loan insurance Corporation or its successor or secured by obbgations having a market value of at least the principal amount of the certificates; (6) fully collaterahzed direct and reverse repurchat,e agreements. State statutes require that secunties underlying repurchase agreements must have a market value of at least 100% of the repurchase agreement's cost, (7) bankers acceptances accepted by a domestic bank matunng in 270 days or less from the date of its issuance and is rated at least A-1, P-1 by a national investment rating firm; (8) commercia, paper with a stated matunty of 270 days or less from the date of its issuance and is either (a) rr**d not less than A-1 P-1 by at least two national investment rating firms, or (b) is rated at least A-1, P-1 by one nation. 'estment rating firm and is fully secured by an irrevocable letter of credit issued by a bank organized and eWsting under the laws of the Unrted States or any state thereof, (9) SEC-registered, no load money market mutual funds with a dollar weighted average portfoho matunty of 120 days or less, whose assets consist exclusively of secunties desenbed in (1) through (8) above and whose investment cbjectives include seeking to maintain a stable net asset value of $1 per share; (10) local government investment pools organized in accordance with the inter local Cooperation Act (Article 4413 (320), V.T.C.S.), as amended, whose assets consist of the obbgations desenbed in (1) through (B) above; and (11) common trust funds or comparable ' investment devices owned or adminrstered by banhs domiciled in Texas. Fund assets shall consist exclusively of obligations descnbed in (1) through (B) above. In addition to the aforementioned, the pension trust funds are authorized to invest in stocks, investment grade c'rporate bonds rated by Standard & Poor's Corporation or A or better by Moody s Bond Ratings, commercial paper rated A-1 by E andard & Poor's Corporation and P-1 by Moody's Bond Ratings, and investment grade international equities limited to
'J% of the fund portfolio.
The Pubhc Funds Investment Act of 1987 (Article B42a-2) permits the City to enter into reverse repurchase agreements, that is, a sale of secunties with a simultaneous agreement to repurchase them in the future at the same pnce plus a contract rate of interest. The secunties lending program contract functions as a reverse repurchase agreement. The City participates in a , secunties-lending program under which, for an agreed fee, City-owned investments in obligations of the U S. government l and its agencies totakng 5474,460,557 at September 30,1992, were in the possession of a borrowing financialinstitution. The lending agreement requires that the borrowing institution place aru maintain secunties with a total market value of at least 102% of loaned City secunties in a third party account in favor of the C;ty. Under the agreems .. the W wed securities are ultimately returned to the City. The pension trust funds also participate in a securities-!ending program As of December 31,1991, pension-owned invest-ments of $28,668,403 in obhgations of the U S. govemment and its agencies, $12.683.480 in corporate bonds, 56,321,654 in corporate stocks, and 15,337,188 in international equity secunties were in possession of a borrowing fmancial institution. The lending agreement requires secunties on loan be collaterahzed by cash and/or secunties with a total market value of at least 102% of loaned fund secunties (For global securities pledged as collateral, total market value shall not be less than 105%). Both City and pension trust funds investments on loan under the terrns of such agreements are exduded from the categonzation shown below. The City's investments (with exceptions noted above) are categonzed below to give an indication of the evel of risk (Category 1-lowest level of nsk to Category 3-highest level of risk) assumed by the City at year end. Catep sry 1 includes investments that are insured or registered or for which the secunties are held by the City's agent in tre City's name. Category 2 includes uninsured and unregistered investments for which the secunties are held by the co nterparty's trust department or agent in the City s name. Category 3 includes uninsured and unregistered investmenti for which the secunties are held by the broker or dealer, or by the City's trust departmeni or agent, but not in the City's nan,' a. L 2 9 [0 a
- 31
1 NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) ' S -INVESTMENTS, continued Category Carrying 1 2 3 Amount investments Obligations of the U S. government and its agencies 5 211,703,508 - - 211,703,508 Corporate bonds 86,107,747 - - 86,107,747 Corporate stocks 212,060,254 - - 212,060,254 Commercial paper 33,310,000 - - 33,310,000 : International equrty secunties 27,978,267 - - 27,978,267 Short-term investment funds 28 805,159 - - 28.805.159 , 5 5'.e,964,935 - - 599,964.935 investments Held By Trustee Obligations of the U.S govemment and its agencies 10,120,859 - - 10,120.859 Total (1) 5 610,085.794 - - 610.085.794 (1) Excludes securttes on loan of $527.471,283, participation in a State of Texas local govemment investment pool of $144,700,942, and intemational mutualfunds of $6,006,823. Investments owned by the vanous funds of the City at September 30,1992 are as follows: Interest Face Market Unrealized ; Desenption Rates Value Cost Value Gain (Loss) , NON-POOLEO INVESTMENTS i Obligations of the U S. govemment and its agencies 2.96% - 1429% $ 200,624,600 199,583,108 206,391,257 6,808.149 Texas local govemment investment pool 3 99 % 106,677,161 106.677,161 106,677,161 - Total non-pooled investments 307,301.761 306260269 313,068.418 6.808.149 i. POOLED INVESTMENTS Obhgations of the U.S. govemment and its agencies 3.03 % - 11.53 % 352,965,000 355,815,007 356,566,802 751,795 Texas local govemment investment pool 3.99 % 38.023.781 38.023,781 38,023,781 - Total pooled investments 390.988.781 393.838,788 394.590,583 751,795 PENSION FUNDS:
- Obhgations of the U S. govemment and its agencies 176,602,293 109,555,213 182,293.000 12,737,787 i Corporate bonds 98.28i 285 98,791,227 104,239,000 5,447,773 Corporate stocks 218,381,908 218,381,908 342,806,000 124,424,092 Commercial paper 33 7,0,000 33,310,000 33,310,000 -
FHA & VA insu ed real estate mortgages 953,729 903,536 ' 916,000 12,464 intemationalinvestments 39,322,278 39,322,278 39,628,000 305,722 Short-term investment funds 28,8U,159 28.805,159 28.805,159 - Total pension investments 595.722.652 589.069,321 731,997,159 142.927,838 TOTAL ALLINVESTMENTS $1294.013.194 1289.168.378 1.439.656,160 150.487,782
- Amoursts shown represent investments owned by the Pension Funds as of December 31,1991.
Assets of the City's employee deferred compensation plan totahng 546,522,416 at September 30,1992, consist of mutual funds held by the plan trustee. _ _ . - _ _ . 32 _- _ _ _
i NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) 6 -INVESTMENTS, continued DEPOSITS The September 30,1992, carrying amount of depesits is as follows: Cash Unrestncted $ 896,988 Restricted 331 Cash held by trustee [ Unrestricted 784,011 Restricted 4,688,441 Pooled cash 500,547 5 6.670.318 i The bank balances of City deposits at September 30,1992, are categonzed below to give an indication of the level of risk (Category 1 - lowest level of nsk to Category 3 - highest level of risk), assumed by the City. Category 1 includes bank balances tha' nre either insured or collateralized with securities held by the City or by its agent in the City's name. Category 2 includes bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3 consists of uncollateralized bank balances including, if any, bank balanc(s collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category Total - Deposits 1 2 3 Bank Balance Cash $ 897,319 - - 897,319 Pooled cash 4,757,892 - - 4,757.892 Cash hald by trustee 5,472,452 - - 5 472,452 5 11,127.663 - - 11,127,663 7 - PROPERTY TAXES The City's property tax is levied each October 1 on the assessed value listed as of January 1 for all real and per;onal property located in the City. The adjusted assessed value for the roll as of January 1,1991, upon which the 1992 levy was based, was $16,926,074.265. Taxes are due by January 31 following the October 1 levy date. During the year ended September 30,1992,97.81% of the i t current tax levy (October 1,1991) was collected. The statutory lien date is January 1. The methods of property assessment and tax collection are determined by Texas statute. The statutes provide for a
' Property Tax Code'. county-wide appraisal districts, a State property tax beard, and certain exemptions from taxation, such as intangible personal property, household goods, and family-owned automobiles.
The appraisal of property within the City is the responsibility of the Travis Central Appraisal District. The appraisal district is required under the Property Tax Code to assess all property within the appraisal district on the basis of 100% of its appraised value and is prohibrted from applying any assessment ratios. The value of property within the appraisal district , must be reviewed every five years; however, the City may require more frequent reviews of appraised values at its own ' expense. The Travis Central Appraisal District has chosen to review the value of property every two years. The City may challenge appraised values established by the appraisal district through various appeals and, if necessary, legal action. ] The City is authonzed to set tax rates on property within the City limits. However, if the effective tax rate, excluding tax rates for bonds and other contractual obligations and adjusted for new improvements and revaluation, exceeds the rate for the "- previous year by more than 8%, qualified voters of the City may petition for an election to determine whether to Smit the tax rate increase to no more than 8%. Travis County provides the property tax bil:ing and collection function for the City, as well as for several other govemmental entities. The City is permitted by Article 11, Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services, including the payment of principal and interest on general obligation ; long-term debt. Under the City Charter, a limit on taxes levied for general govemmental services, exclusive of payments of pnneipal and inte s' on general obligation long-term debt, has been established at $1.00 per $100 assessed valuation. A ~ 33
t NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS , September 30,1992- (Continued) 7 - PROPERTY TAXES, continued practical limrtation on taxes levied for debt service of $1.50 per $100 of assessed valuation is established by referring to the State Statute and City Charter limitations. The tax rate to finance general governmental purposes, other than the payment of principal and interest on general ; obligation long-term debt, for the year ended September 30,1992, was $.3265 per $100 assessed valuation. The City has a tax margin for general governmental purposes of $.6735 per $100 assessed valuation and could levy approximately $113,997,110 in additional taxes from the assessed valuation of $16,926,074,265 before the legislative limit is reached. 8-RESTRICTED ASSETS -ENTERPRISE FUNDS The following table summarizes restricted assets by purpose at September 30,1992, (in thousanos of dollars); other Utility Hospital Enterprise Funds Fund Funds Toul Revenue bond debt service: , investments, at cost 5 73,629 - 1,682 75,311 i Accrued interest on investments 5,931 - 4 5,935 Capitalized interest account: Investments, at cost - - 1,114 1,114 ; Total revenue bond debt service 79,560 - 2.800 82,360 Revenue bond retirement reserve: Investments, at cost 165.922 - 9.255 175.177 Total revenue bond retirement reserve 165.922 - 9.255 175,177 investment in tax and revenue bond: Investments, at cost 94 - - 94 Total tax and revenue bonds 94 - - 94 Construction account: Construction: , Pooled investments and cash 134,216 11,408 29,370 174,994 investments, at cost - - 23,566 23,566 Accrued interest on investments - - 72 72 Receivable from other governments - - 2,753 2,753 Due from other funds 56 - 56 Advances to other funds 450 - 450 Other receivables 365 - - 365 Total construction account 135.087 11,408 55,761 202.256 Decommissioning account 10,973 - - 10,973 Capital improvement account. , Pooled investments and cash - - 3.083 3.083 Operating reserve account: Pooled investments and cash < - - 1,530 1,530 investments, at cost - - 7,019 7,019 Accrued interest on investments - - 53 53 Total operating reserve account - - J.602 8.602 Hotel occupancy tax account-Pooled investments and cash - - 1,057 1,057 Accrued interest on investments - - 7 7 Total hotel occupancy tax account - - 1,064 1.064 Revenue account. Pooled investments and cash - - 865 865 Accrued interest on investments - - 156 156 Accounts receivable - - 32 32 l
- - 1,053 1,053
~
Investments and cash held by trustee 3.404 712 572 4.688 Pooled investments and cash restncted for-Purchase of nuclear fuelinventory 17,421 - - 17,421 Customer deposits 5,243 - - 5,243 Escrow depwts 1.037 - 12 1,049 i Total restricted assets 5 418.741 12.120 82.202 513,063 34
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN TEXAS - September 30,1992 (Continued) 9 - FIXED ASSETS Components of the City's fmed assets, (excluding Pension Fund fixed assets of $80,222), at September 30,1992, are summanzed as follows (in thousands of dollars): Internal General Enterprise Service Fixed . Funds Funds Assets Total Land and land rights S 86,223 -- 102,545 188,768 Buildings and improvements 2,233,830 3,472 109,965 2,347,267 Machinery and equipment 968,979 13,808 62,640 1,045,427 Completed assets not classified 204.524 1,631 - 206,155 Totalin service 3,493,556 18,911 275,150 3,787,617 Less accumulated depreciation (825,306) (14.316) - (839,622) Net property and equipment in service 2,668.250 4.595 275,150 2.947,995 Construction in progress 336,678 - 65,655 402,333 ; Nuclear fuelin process 37,297 - - 37,297 ; Plant held for future use 38,451 - - 38,451 5 3.080,676 4,595 340.805 3,426.076 The following table summarizes the changes in components of the General Fixed Assets Account Group for the year ended September 30,1992: Improvements Machinery Other Than and Construction Land Buildings Buildmgs Equiprnent in Progress Total Ba',ance, September 30,1991 $ 100,677,849 70,462.971 30.099,759 58,806,217 55,724,302 315,771,096 Addi* ions - - - - 22,586,214 22,586,214 Retirements - - - (902,351) (183,391) (1,085,742) Completed construction 1,867,459 8,909,127 493,102 4,199,519 (15,469,207) - Transfers from (to) other funds - - - 536,215 2.997.130 3.533.345 Balance, September 30,1992 $ 102.545.308 79.372.098 30.592.861 62.639.600 65.655.048 340,804.915 The City does not capitalize public domain general fixed assets. This accounting policy affects only the General Fixed Asset Account Group During 1992, the City did not capitalize infrastructure assets completed amounting to $15,505,800. t Construction in progress includes various capital projects that are primarily funded by general obligation and revenue bonds. The General Fixed Asset Account Group includes as construction in progress certain completed capital projects in service at September 30,1992, which have not been unitized or capitahzed pending classification to the proper fixed asset in-service > categories. In all other funds, completed construction unclassified is included in property, plant and equipment. The City anticipates the need for numerous additional utility-related projects over the next several years. However, the City has no formal commitments to projects other than those currently under construction. Estimated unfunded future expendctures for capital projects will be funded from operations, issuance of additional general obligation or revenue bonds, or from alternative methods of financing. Authorization to issue additional revenue bonds may be requested from the qualified voters of the City. However, it is the opinion of legal counsel that the City Council is not legally required to secure voter approval to authorize and issue additional revenue bonds (see Note 19f). ew I h em O is 2 ?! "' 35
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) 9 - FIXED ASSETS, continued The following tabulation presents the estimated unfunded future expenditures for capital projects and related bonds authorized, but unissued as of September 30,1992, (in thousands of dollars): Net Amounts Estimated Bonds Expenditutes Available in Unfunded . Authorized Total Incurred to Estirnated (9orrowed From) (Overfunded) Unissued at Estunated September 30, Future Construction Future September 30, Cost 1992 Expenditures Accounts Expenditures 1992 Projects financed with general obligation bonds: Generat fixed assets S 558,116 534,920 23,196 75,354 (52,158) 218,985 Hospital 55,840 34,186 21.654 11,404 10,250 9,215 Sohd waste services 11.034 10,663 371 546 (175) - Gotf 1,175 973 202 509 (307) - Airport 63,932 52,195 11,737 29,113 (17,376) - Conventen center 8,010 6.541 1,469 1,534 (65) - Fleet maintenance 3.789 1.775 2.014 2.027 (13) - Total projects funded principalty by general obhgation bonds 701.896 641.253 60,643 120.487 (59.844) 228,200 Projects funded by revenue bonds for enterprise funds. Municipal airport at Manor (3) 11,281 11,281 - 19.095 (19,095) 698,000 Conventon center 72.949 70,358 2.591 2.600 (9) 760 84.230 81.639 2.591 21,695 (19,104) 698.760 Projects funded by revenue bonds for the utility funds: Electne systems improvements, general 834,265 583,841 250,424 82,349 168.075 272,620 Electric systems improvements, Fayette Power Project Unds I and 11 7,401 4,810 2,591 2.854 (263) - Electric systems improvements, South Texas Project (1)(2) 954,015 937,790 16,225 3,066 13,159 289.768 , Water improvements 663,498 331,814 331,684 7,377 324,307 311,947 Wastewater emprovements $63.606 395.021 168,585 22.79* 145.791 224,179 Total projects funded principatty by revenue bonds 3,022,785 2.253,276 769.509 118.440 651.069 1,098.514 Less: Amounts related to plant in service 2,018.599 1,859.888 158.711 Amounts related to deferred assets 38.608 38,608 - Plant held for future use 38.450 38.450 - Amounts related to construction in progress S 927,128 316.332 610,798 (1) Excludes nuclear fuel costs. (2) Proceeds from the Brown and Root Settlement of $52,658.000 were authorized to fund electue system improvements and have j teen included in this schedule. > (3) On December 19,1991, the CLy Council expressed its intent not to issue the $698.000.000 of revenue bonds
~
36
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS > September 30,1992 (Continued) 10 - RETIREMENT PLANS a - General The City participates in funding three contnbutory, defined benefit retirement plans: City of Austin Employees' Retirement and Pension Fund, City of Austin Police Officers' Retirement and Pension Fund, and Fire Fighters' Relief and Retirement Fund of Austin, Texas. These plans are City-wide single employer funded plans that cover substantially all full-time employees. Membership of the plans and payroll (in thousands of dollars) at December 31,1991, is as follows: Total City Police Fire (Memorandum Employees Officers Fighters Only) Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 1,507 88 209 1,804 r Current employees Vested 4,005 406 385 4,796 , Nonvested 2,963 397 369 3.729 B.475 891 963 10,329 n. Total payroll for the year ended December 31,1991 5 203.457 35,145 26,778 265,380 , t Payroll for employees covered by the plan for the year ended December 31, 1991 $ 180,853 28,006 26,595 235,454 l Prior to August 26, 1991, City and employee contributions to the Employees' Fund and the Police Officers' Fund were governed by City Council ordinance. Since August 26,1991, City and employee contributions are governed by State law. City and employee contributions to the Fire Fighters' Fund are also governed by State law The City's total retirement plan expense for the year ended September 30,1992, was approximately $21,040,000, which includes amortization of prior service cost. Contributions to the plans at September 30,1992, anu net assets available for benefits at December 31, 1991, are as follows (in thousands): Total City Police Fire (Memorandum i Employeas Officers Fighters Only) Contributions for the year ended September 30,1992 City 5 13,724 3,471 3,845 21,040 Employees 13,724 1,736 3,749 19,209 Total contributions 27,448 5,207 7,594 40,249 Net assets available for benefits at December 31,1991 5 414.570 71.223 110,350 596,143 1.
'M ,8
~
- 37 i
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 'iO - RETIREMENT PLANS, continued i b- Contribution Method and Benefits L The following is a summary of contribution methods and benefits. Csty of Austin City of Austin Employees
- Police Officers' Retirement and Retirement and Fire Fighters' Relief Pension Fund Pension Fund and Retirement Fund Authority estabhshing contnbutions obligation State Legislation (1) State Legislation (1) State Legislaton Frequency of contribution Brweekly Biweekly Biweekty Employee's contribution *
(percent of earnings) 7.0% 6.0% 13.70 % City's contnbution (percent of earnings) 7.0% (2) 12 0% (2) 14 05% Period required to vest 5 years 10 years 10 years Eligibsty for distributson of Age 55 with 20 years of creditable Age 55 with 20 years of creditable Age 53 with at least 10 years of retirement benefits to member service, or service, or service and 10 years of or benefciary contnbutons, or Age 62, regardless of number of Age 50 with 25 years of creditable Age 50 with 25 years of creditable servce years, or service, or service, or 7 30 years creditable service, Age 62, regardless of number of 28 years creditable servce, , regardless of age. service years, or regardess of age. 30 years creditable service, regardless of age-Benefits may be increased an- Benefits may be increased an- Denefits may be increased Increases in Benefit nually by the amount of increase nually based on the Consumer annually based on the amount of in the Consumer Prce index, up Prce index, the actuanat ex- increase in the Consumer Pnce ; to 3% Beginning January 1, penence of the Fund, the in- index. ; 1992, benefits may be increased vestment expenence of the Fund, annually from 3% to 45 and prior cost of living increases, up to 4%. Increases must be approved by tne Board and actuanes of the increases must te approved by increases must be approved by Fund. the Board and actuanes of the the Board and actuanes of the Fund. Fund. 1991 - 3 % 1990- 3 % 1991 - 4 % 1991 - 6.3 % 1990-4 % 1990-4 5% Terms of Benefits For all three funds, terms of benefits are determined by certain elections made by the member, the membefs level of earnings and length of servce. Benefits are distnbuted m equal monthly installments over a penod of time, or in a lump sum in the event of death. Distnbutions are also available in the event of total and permanent disability. i (1) As of August 26,1991, City and employee contnbutions for the Employees' and Pohce Officers' Funds are govemed by State Legislation. Prior to August 26,1991, City and employee contnbutions were governed by City Council Ordinance. (2) The City contributes two-thirds of the cost of prior service benefit payments for both funds, c - Actuarial Present Value of Vested Benefits While the contnbution requirements are not actuarially determined, state law requires that each plan of benefits adopted be approved by a qualified actuary. The actuary certifies that the contnbution commitment by the participants and the City provides an adequate financing arrangement Using the entry age actuarial cost method, the normal cost is determined as a percentage of payroll. The excess of the total contribution rate over the normat cost rate is used to amortce the unfunded actuanal accrued liabihty, if any exists, and the number of years needed to amortce the unfunded actuanal accrued liability. The amortcation period for the Pohce Officers' Fund is approximately 19A years. The Employees' and the Fire Fighters' Funds are fully funded (based on assets valued at adjusted market value) However, the Fire Fighters' Board of Trustees , 1 s 38
NOTES TO COMBINED FINANCIAL STATEl$ENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 5 10 - RETIREMENT PLANS, continued has approved several changes in Plan provisions Pending State Legislative approval, the funding period will increase to 22 9 years effective September 1993 Calculations of the actuarially computed value of vested benefits were made by actuanes for all funds as of December 31, 1991. The following actuarial cost method and significant assumptions underlying the actuarial calculation were used in the determination of the required plan funding level. City Employees Police Officers Fire Fighters Actuanal Cost Method Entry Age Normal Cost Entry Age Normal Cost Entry Age Normal Cost Assumed Rate of Return on ' Investments 8% 8.5% 8% Retirement Age Dependent on entry age and Dependent on entry age and Dependent on entry age and length of service length of service length of service ! Asset Vatuation Basis Adjusted Market Value Adjusted Market Value Adjusted Market Value Other significant assumptions used for all pension funds are the assumed employee turnover, salary increases and mortahty rates, which are based on pub.ished statistical data. The amount shown below as the
- pension benefit obhgation" is a standardized measure of the present value of pension benefits estimated to be payable in the future as a result of employee service to date. These benefits have been adjusted for the effects of projected salaryincreases.
I The pension benefit obligation is the actuarial present value of credited projected benefits and is intended to help users assess the system's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to i pay benef6ts when due, and make compansons among public employee retirement systems. This measure is independent of the actuarial funding method used to perform the actuarial valuation. The pension benefit obligation for the City of Austin Employees' Fund as of December 31,1991, is based on an actuarial update of the December 31,1991, actuarial valuation and the plan in effect on December 31,1990. The pt.nsion benefit obhgations for the Pohce Officers' Fund and the Fire Fighters' Pension Fund as of December 31,1991, are based on the actuarial valuations as of December 31,1991, and the plans in effect on that date. Significant actuarial assumptions used include: City Police Fire Employees officers Fighters Rate of return on the investment of present and future assets (compounded annually) 8.00 % 8.50 % 8.00 % Average projected salary increases, attnbutable to inflation (compounded annually) 6.50 % 6.50 % 6.50 % Additional projected salary increases, attnbutable to ment, promotion, and longevity 1.50% 1.70% 1.50% Post retirement benefit increases none none none Pension benefit obhgation as of December 31,1991, is as follows (in thousands): Total e City Police Fire (Memorandum Employees Officers Fighters Only) Retirees and beneficianes currently recemng benefits and terminated employees not yet receiving benefits 5 137,696 18,169 48,643 204,508 Current employees:
-. Accumulated employee contnbutions 106,520 19,244 28,288 154,052 Employer-financad vested 105,518 33.581 57,256 196,355 Employer-financed nonvested 3.894 5.165 7.340 16,399
- Total pension benefit obligation 353,628 76,159 141,527 571,314 Net assets avdlable for benefits (at book value) 414.570 71,223 110.350 596,143 Unfunded (assets in excess of) pension benefit ochgation 5 (60,942) 4.936 31,177 (24.829)
-' 5 154,161 Net assets available for benefits (at market value) 506.388 78.547 739 096 ,
b-
- 39
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN TEXAS September 30,1992 (Continued) 10 - RETIREMENT PLANS, continued l d -Changes Related to Actuarial Assumptions City of Austin Employees' City of Austin Police Officers' Fire Fighters' Relief [ Retirement and Pension Fund Retirement and Pension Fund and Retirement Fund 1991 1
- 1. fAaximum cost-of-living adjustment No changes. 1. Anticipated cost-of-living increases that can be annually granted was are 2.9% for 1992 and 5% for 1993 increased from 3% to 4% and 1994.
beginning January 1.1992. This ' change was reflected in the latest actuanal valuation.
- 2. The across-the-board salary increase assumption was decreased from 6.5% to 5.5% ;
annually. Also, based on recent experience, the termination rates were reduced and the retirement rates were modified. 1990 No changes. 1. The occupational disability 1. Cost-of-living increases assumed ' retirement incidence rates were for 1991 and 1992 are 6.3% and increased as of December 31, 5%, respectively, up from 5% 1990. previously assumed for each year.
- 2. Beginning in 1991, an $850.00 per month, minimum current service retiree and spouse benefit is assumed.
9 4 40 - :
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Centinued) 10 - RETIREMENT PLANS, continued e - Changes in Plan Provisions City of Austin Employees' City of Austin Police Officers' Fire Fighters' Relief Retirement and Pension Fund Retirement and Pension Fund and Retirement Fund 1991
- 1. Participation in the Proportionate 1. A 4% cost-of-living increase was 1. A 6.3% cost-of-living increase was Retirement Program allowing approved effective January 1, approved effective January 1, members to combine service with 1991. 1991. s service credit effective August 26, 1991.
- 2. A 3% cost-of-living increase was 2. Minimum benefits to retirees were approved effective January 1, established at $850 effective 1991. January 1,1991.
- 3. Retirement eligibility requirements were reduced from age 55 or 30 ,
years of service to age 53 or 28 , years of service, in September, 1991. ,
- 4. Effective September,1991, surviving children are eligible for full spousal benefit in the event ,
there is no surviving spouse. 1990
- 1. Beginning January 1,1992, the 1. A 4% cost-of-living increase was 1. A 4 5% cost-of-living increase was ;
maximum cost-of-living approved effective January 1, approved effective January 1, adjustments that can be annually 1990. 1990. granted with the approval of the Fund's actuary and Board was increased to 4%. A 3% cost-of-living increase was approved, effective January 1,1990.
- 2. The benefit formula multiplier was 2. Minimum occupational disabihty increased to 2.1% per year of benefits were increased.
service, effective February 1.1990.
- 3. Annuitants were granted one-time increases ranging from 15% for ,
those retiring before 1969 to .5% for those retiring from September 30,1988 through December 31, , 1989, wrth five increase levels between, depending upon retirement date. , e l i l 1 x
- 41
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS ~ September 30,1992 (Continued) 90 - RETIREMENT PLANS, continued i f - Federal income Taxes The pension funds are public employees' pension plans and are exempt from Federal income taxes and the provisions of the , Employee Retirement income Secunty Act of 1974. g -Plan Administration Costs Plan administration costs include audit fees and actuarial fees (valuations performed in alternating years). Each pension fund is responsible for all administrative costs. h - Historical Trend Information Unaudited historical trend information required by GASB Statement No. 5 (implemented in 1987), designed to provide details regarding the Fund's progress in accumulating assets to pay benefits when due and to summarize operating results, , is presented in separately issued retirement fund financial statements. Analysis of funding progress for the plans at December 31 is as follows (in thousands): Unfunded Unfunded (Assets in Benefit _ Employer excess of) Obligation Contribution ' Net Assets Pension Pension Annual as a Percent as a Percent Available to Benefit Percentage Benefit Employer Covered of Covered of Covered j Benefits Obligation Funded Obligation Contribution Payroll Payroll Payroll City Employees 1991 414,570 353,628 117.2 % (60,942) 12,660 180,853 N/A . 7.0% 1990 365,319 317,848 114 9 % (47,471) 11.425 163,216 N/A' 7.0% 1989 329,325 279,636 117.8 % (49,689) 10,598 151,400 N/A 7.0% 1988 297,846 259,914 114 6 % (37,933) 11,246 175,720 N/A 6.4 % Police Officers 1991 71,223 76,159 93.5 % 4,936 3,361 28,006 17.6 % 12.0 % 1990 62,269 68,854 90 4 % 6,584 3,146 26.219 25.1 % 12.0% 1989 55,226 60,566 91.2 % 5,340 2,915 24,291 22.0 % 12.0% 1988 47,558 53,442 89.0 % 5,884 3,004 25,032 23 5 % 12.0 % Fire Fighters 1991 110,350 141,527 78.0 % 31,177 3,735 26,595 117.2 % 14.0% , 1990 97,233 124,997 77,8 % 27,764 3,568 25,395 109.3 % 14.0 % 1989 82,847 112,391 73.7 % 29,544 3,370 24,034 122.9 % 14.0 % > 1988 73,711 98,989 74.5 % 25,279 3.379 24.053 105.1 % 14.0 % i -Subsequent Events Net assets available for benefits increased for the year ended December 31,1992, (in thousands of do!!ars), as follows: , Unaudited Total City Police Fire (Memorandum Employees Officers Fighters only) Net increase 5 57.876 5.212 14.688 77,776 - The net increase is the result of recurring pension activdy such as contributions received, investment income, benefits paid and contributions refunded i 42 . ;
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS l September 30,1992 (Continusd) ) l I 11 - GENERAL LONG-TERM DEBT a - General Obligation Debt - Capital Projects Funding Capital projects funds are used to account for the acquisition and construction of general fixed assets. Capital projects are funded primanly by the issuance of general obligation debt and intergovernmental revenues. 1 I General obbgation debt is collaterahzed by the full faith and cred:t of the City. The City intends to retire its general obhgation l debt, plus interest, from future ad valorem tax levies, and is required by ordinance to create from such tax revenues a sinkinq fund sufficient to pay the current interest due thereon and each installment of principal as it becomes due. General obhge. con debt sold to fund fixed assets of proprietary funds is reported as an obligation of these proprietary funds, although they are not obbgated by the apphcable bond indentures to repay any portion of principal and interest on outstanding general ; obbgation debt. However, the City intends for the proprietary funds to meet the debt service requirements, i l As descnbed in Note 7, State Statute and the City Charter estabhsh a practical limitation of $1.50 per $100 of assessed valuation on tne debt service tax rate levied to service general obhgation debt, including interest. The tax rate to finance the payment of pnncipal and interest on general obhgation long-term debt for the year ended September 30,1992, was 5.2762 per $100 assessed valuation. At September 30,1992, allowable taxes related to debt service (assuming the rate of $1.50 j per $100 assessed valuation) are approximately $253.891,114, providing potential additional taxes for debt service of l
$207.141,297 from the assessed valuation of $16,926.074,265.
l l There are a number of hmitations and restnctions contained in the vanous general obhgation bond indentures. The City is in comphance with all hmitations and restnctions The following table summanzes significant facts about general obligation bonds and contractual obhgations outstanding at September 30,1992, including those reported in certain enterpnse funds: j interest Rates l Amount Aggregate interest Of Bonds Outstanding at Requirements at Outstanding at September 30, September 30, September 30, Maturity Dates Date issued Originallssue 1992 1992 1992 Of Serial Bonds
$ 5 $ %
, series 1905 July,1985 80,000,000 5.000,000 1,3B6,000 (1) 8.10 - 12.00 7/1/1993-1996 1 Senes 1985A October,1985 229,048,455 70,163,455 (3) 63,835,595 (2) 7.90 - 8.25 9/1/1993-2000 l Senes 1986 Juy,1986 100,000,000 37,025,000 22,704,175 (2) 6 75 - 10.75 9/1/1993-2007 l Senes 1986A August,1986 14,710.000 3,775,000 868,975 (2) 7.10 - 7.70 9/1/1993-1997 i Senes 1987 Jufy,1987 53,000,000 16,575,000 8,016,900 (2) 6 00 - 10 00 9/1/1993-2008 Senes 1988 September,1988 24,860.000 6.915,000 2,166,703 (2) 6 90 - 9.75 9/1/1993-1999 j l Senes 1989 October,1989 24,995,000 24,670,000 21,034.225 (2) 7.00 - 10 00 9/1/1993-2009 j Senes 1990A8B January,1990 122,368,632 118,018.632 (4) 84,153,595 (2) 6 00-- 7.00 9/1/1993-2006 Senes 1990C November,1990 25,000,000 25,000,000 19,950.150 (2) 6.50 - 9.50 9/t/1993-2010 l Senes 1991 April,1991 3,000,000 2,825,000 632,637 (5) 5 50 - 8.50 11/1/1992-1998 j Senes 1991 A November,1991 25,000,000 25,000,000 21,395,750 (2) 588- 888 9/1/1994-2011 Senes 1991 B November,1991 2.900,000 2,900.000 594,880 (5) 500- 800 11/1/1992-1998 ; Senes 1992 May,1992 114,856,765 114,856,765 (6) 72,926.478 (2) 440- 625 9/1/1994-2008 (1) Interest is pa d semiannualty on Juy 1 and January 1. (2) Interest is pad semiannual!y on March 1 and September 1. l (3) includes $32,953,455 of capital appreciation bonds, which have interest payable at maturity on 9/1/1995-2000. (4) includes $14,158,632 of capital appreciatson bonds, which have interest payable at matunty on 9/1/1997-2000. I (5) interest is pad semiannually on May 1 and November 1. (6) includes $13,281,765 of capital appreciation bonds, which have interest payable at matunty on 9/1/1997-1999. in November 1991, the City issued Pubke improvement Bonds, Series 1991A, in the amount of $25,000,000. Of the proceeds from the issue, $5,796,000 will be used for drainage and flood control improvements, $1,430,000 will be used for parks and recreation construction projects, $6,000,000 will be used for constructing and equipping hospital facihties, and
$11,774,000 will be used for improvements and reconstruction of streets. These bonds will be amortized serially September *' i each year from 1994 to 2011, Certain of these bonds are callable beginning September 1,2001. Interest is payable on } ;. March 1 and September 1 of each year, beginning March 1,1992. Total interest requirements for these bonds, at rates rang:ng from 5.8% to 8.8%, aggregate $22.782,208-i l 43 l
l
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 11 - GENERAL LONG-TERM DEBT, continued s in November 1991, the City issued Public Property Finance Contractual Obligations, Series 1991B, in the amount of 12,900,000. Of the proceeds from the issue, $1,900,000 will be used to purchase equipment for the Sohd Waste Services i Fund ant! $1,000,000 will be used for an integrated on-line computer system for the library. These obligations will be amortized serially May 1 and November 1 of each year from November 1992 to 1998. Interest is payable on May 1 and , November 1 of each year, beginning May 1,1992. Total interest requirements for these contractual obligations, at rates renging from 5.0% to 8.0%, aggregate $677,055. In June 1992, the City issued $114,856,765 in Public improvement Refunding Bonds, Series 1992, with an average interest rate of 6.13% to advance refund the following (together hereinafter referred to as the refunded bonds"):
$50.175,000 of outstanding Public improvement Bonds, Series 1986, with an average interest rate of 7.88%. ,
58,325,000 of outstanding Public improvement Bonds, Series 1986A, with an average interest rate of 7.56%. +
$31,225,000 of outstanding Public improvement Bonds, Series 1987, with an average interest rate of 7.31%.
$16,565,000 of outstanding Public improvement Bonds, Series 1988, with an average interest rate of 7.68%.
The not proceeds of $115,141,204 (after issuer contribution of $2.689,954 and after payment of $2,405,515 in underwriting fees, insurance, and other issuance ests) were used to purchase U S. government secunties. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the refunded bonds. As a result, the refunded bonds are considered to be legally defeased and the liability for the refunded bonds has been . removed from the general long-term debt account group. The City advance refunded the refunded bonds to reduce its total debt service payments in the current period and in future years by almost $5.9 million and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $4.8 million. A portion of the refunded bonds had funded certain capitalimprovements at Brackenridge Hospital, which the City reports as an enterpnse fund. Amounts shown above include the portion that pertains to Brackenridge Hospital. For that portion of the refunded transaction that pertains only to the hospital, the advance refunding resulted in the recognition of an accounting loss of $545,501 for the year ended September 30,1992. The hospital decreased its aggregate debt service payments by approximately $323,000 in the current penod and in future years, and obtained an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $425,000. In October 1992, the City issued $52,490,000 Public improvement Bonds, Series 1992; $5.405,000 Certificates of Obligation, Series 1992; and $4,195,000 Pubhc Property Finance Contractual Obligations, Series 1992. In February 1993, the City issued $71,600,000 in Public improvement Refunding Bonds, Series 1993. See Note 23 for further information. l l l I
)
t i 44 -
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 11 - GENERAL LONG-TERM DEBT, continued The following is a summary of general obligation bond and contractual obligation transactions of the City (including certain enterprise funds) for the year ended September 30,1992 (in thousands of dollars): General Obligation Bonds and Contractual Oblications Balance payable - September 30,1991 $443,187 Refuncing activity: Refunding debt issued 114,857 Outstanding debt defeased by refunding (106.290) Balance payable subsequent to refunding 451,754 Debt issued: Drainage and flood controlimprovements 1,440 Parks and recreation 650 Brackenridge 2000 6,000 Street improvements 11,774 Drainage and flood controi 4,356 PARD pools 280 Parks improvements 500 Solid Waste department equipment 1,900 On-line computer - Library 1,000
- Bonds issued during year 27,900 Debt retired (26,930)
Balance payable . September 30,1992 5452,724 General obhgation bonds authorized and unissued amount to $228,?00,000 at September 30,1992. l r b - Other Long-Term Debt in addrtion to ger eral obhgation bonds and certificates of obligation, the General Long-Term Debt Account Group includes all habihties of the City (other than those reported in the proprietary funds) which are not due in the current period. The following table summarizes the transactions for these other general long-term debt items for the year ended Septernber 30, ' 1992: Capital Lease Compensated Obligations Claims Absences Balance - September 30,1991 $ 529,077 2,801,478 31,878,631 Increase in accrual - 3,355,240 2,152,910 Decrease in long-term portion (298,782) - - Balance - September 30,1992 $230,295 6,156,718 34.031,541 J 45
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS S:ptember 30,1992 (Continued) 12 - UTILITY FUNDS - REVENUE BONDS AND OTHER LONG-TERM DEBT a - General The utility funds of the City derive their funding for capital projects from the issuance of revenue bonds, other sources of financing, and net revenues of the utility funds that are not restricted for debt service or other uses. The following table summanzes utility revenue bonds and other long-term financing transactions for the year ended September 30,1992, (in thousands of dollars): Subordinate Prior Lien Lien Bonds Conds Total Balance payable, net of discount and inclusive of premium - October 1,1991 $ 368,564 1,964,476 2,333,040 Debt issued, net of discount and inclusive of premium 940 612,613 613,553 Debt repaid, defeased, or refunded, net of discount (31,005) (572,455) (603,460) Amortization of bond discount and premium 1,146 4.039 5.185 Balance payable, net of discount and ; inclusive of premium - September 30,1992 $ 339.645 2.008,673 2.348.318 The total combined utility system obligations at September 30, 1992, consist of $2,063.452,775 prior lien bonds and
$351,045.000 subordinate lien bonds. Aggregate interest requirements for all prior lien and subordinate lien bonds are $2.551,631,216 at September 30,1992. Revenue bonds authorized and unissued amount to $1,098,514,000 at that date.
b - Revenue Bond Refunding Issues , The City's utility funds have refunded vanous issues of revenue bonds, notes, and certificates of obligation through refunding revenue bonds These refunding bonds are collateralized by the net revenues of the utility funds, as defined in the respective bond indentures. The prior lien bonds are subordinate only to the prior lien revenue bonds outstanding at the time of issuance, while the subordinate lien bonds are suoordinate to prior lien revenue bonds and to subordinate lien revenue bonds outstanding at the time of issuance. Some of these bonds are callable prior to matunty at the option of the City. The term bonds are subject to a mandatory redemption prior to the matunty dates as defined in the respective official statements. The net proceeds of each of the refunding bond issuances were used to purchase U.S government secunties. Those secunties were deposited in an irrevocable trust with an escrow agent to provide for all future debt service. As a result, the refunded bonds are considered to be legally defeased and the liability for the refunded bonds hcs been removed. The accounting gains and losses due to the advance refunding of debt have been deferred and are being amortized over the life of the refunding bonds by the straight-line method However, a gain or loss on defeased bonds is recognized when funds from current operations are used. l l i i l F
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS i September 30,1992 (Continued) 12 -UTILITY FUNDS -REVENUE BONDS AND OTHER LONG-TERM DEBT, continued The following schedule shows all original and refunding revenue bonds outstanding at September 30,1992 (in thousands of dollars)- , Outstanding at i Oringal Amount Series Bonds Dated issued September 30,1992 -i 5 5 1982 Refunding March 1982 598.000 327,285 1985 March 1985 225,000 28,200 1985A November 1985 162,000 22,125 1985 Refunding October 1985 454,950 63,260 1986A April 1986 325,000 103,200 1986C November 1986 137,915 129,820 1986 Refunding March 1986 545,145 221,110 -! 1987 May 1987 65,000 10,605 ; 1988 July 1989 65,800 32,875 , 1988AB Refunding October 1988 369,901 3S9,076 1989 July 1989 65,800 65,240 1990 August 1990 6.395 5,635 ! 1990AB Refunding February 1990 236,009 226,104 1991 Refunding March 1991 143,740 138,540 1991 A Refunding June 1991 57,080 53,910 1992 Refunding March 1992 265,806 265,806 i 1992A Refunding May 1992 351,706 351,706 r The following bonds were refunded in fiscal year ended September 30,1992: Refunded by Series 1992 Refunding in March 1992 (in thousands of dollars): i Amount Series Refunded 5 , 1986A 200,000 1987 26,590 in April 1992, the City delivered $265,806,181 of Combined Utility Systems Revenue Refunding Bonds Series 1992 to refund
$226,590,000 of previously issued Combined Utility Systems Revenue Bonds. This refunding is considered a legal i 1
defeasance of debt. The refunding resutted in a reduction in cash flow requiremerfs to service the debt of $12,739,538, An economic savings of $10,358,407 was recognized on this transaction. An accounting loss of $22,510.967, which will be l
+ deferred and amortized in accordance with Statement of Financial Accounting Standards No. 71, was recognized on the j
- refunding.
1 1
)
.c l 2 F i l 47
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN TEXAS I September 30,1992 (Continued) 12 - UTILITY FUNDS - REVENUE BONDS AND OTHER LONG-TERM DEBT, continued Refunded by Series 1992A Refunding in May 1992 (in thousands of dollars): Amount Series Refunded 5 1985 32,320 1986 300,375 in June 1992, the City issued $351,706,095 of Combined Utility System Revenue Refunding Bonds Series 1992A to refund $332,695,000 of preriously issued Combined Utihty Systems Revenue Refunding Bonds and Combined Utikty Systems Revenue Bonds. Thin refunding is considered a legal defeasance of debt. The refunding resulted in a reduction in cash flow requirements to service the debt of $19,730,492. An economic savings of $15,780,214 was recognized on this transaction. An accounting loss of $33,197,258, which will be deferred and amortled in accordance with Statement of Financial Accounting Standards No. 71, was recognized on the refunding The following bonds were defeased in September 1992 (in thousands of dollars): Amount Series Refunded 5 1982 11,250 1985 2,550 1986A 4,400 1986 1,750 1986C 1,870 19888 825 ; 1989 340 1990B 475 in September 1992, the City defeased $23,460,000 of Combined Utility Revenue Bonds, wrth a cash payment of $25,711,577. $25,710,377 was placed in an irrevocable escrow account that was used to purchase U.S. government t obligations to provide for all future debt service payments on the defeased bonds. The City is legally released frum the obligation for the defeased debt. c - Revenue Dond indenture Requirements l The City is required by bond indentures to pledge the net revenues of the utihty systems for debt service, and is required to maintain debt service funds and bond reserve funds for all outstanding revenue bonds. The debt service funds, with assets of $79,559,834 including accrued interest at September 30,1992, are restricted within the utility funds and require that the net revenues of the systems, after operating and maintenance expenses are deducted, be irrevocably pledged by providing equal monthly installments that will accumulate to the semiannual principal and interest requirements as they become due. The bond reserve fund for revenue bond retirement, with assets of $165,921,458 of investments at cost at September 30, 1992, is also restricted within the utikty funds. The City is required to maintain a combined reserve fund for the benefit of the p holders of prior tien bonds and subordinate lien bonds, which must contain cash and investments of not less than $85,000,000 and which shall be increased upon the issuance of any additional bonds to the greater of such amount or the , average annual prmcipal and interest requirements on all prior lien bonds and subordinate lien bonds. Additional amounts i required to be depos.ted in the reserve fund must be funded from bond proceeds or accumulated in the reserve fund in equal monthly installments within 60 months from the date of dehvery of the addstional bonds. The City also covenants under the bond indentures that the custodian of the reserve fund shall be an official City depository and investment of the reserve fund shall be in direct or guaranteed obligations of the United States of America (USA) including obhgations guaranteed by the USA, and certificates of deposit of any bank or trust company, the deposits of which are fully secured by a pledge or obligation of the USA or guaranteed by the USA. The revenue bond indentures also provide for a number of other hmitations and restrictions. The City is in compliance with all significant hmitations and restrictions contained in the revenue bond indentures. 48
_ m -- . - NOTES TO COMBlalED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 12 - UTILITY FUNDS - REVENUE BONDS AND OTHER LONG-TERM DEBT, continued d - Refunds Payable on Construction Contracts Refunds payable on construction contracts of approximately $6,390,299 at September 30,1992, excluding accrued interest, represent contractual obligations of the Waterworks and Sewer System Fund to refund a percentage of certain construction costs incurred by developers. The contracts vary as to terms and conditions. Most of the contracts provide for the City to pay interest at 3% per annum on the unpaid balance Generally, the Waterworks and Sewer System Fund has agreed to pay annually to the developers a sum equal to 75% of the amount of revenues reahzed (based on rates in existence at the contract date) from sales and ' ' ice relating to the water and wastewater facihties constructed by these developers. Such payments are made in March o. each year based upon the revenues for the previous calendar year, however, the total ! number of payments is lim:ted, ranging primanly from 20 to 25 years, at which time the unpaid principal balance, if any, reverts to the Waterworks and Sewer System Fund as a contnbution in aid of construction. 13 - OTHER ENTERPRISE DEBT a - Solid Waste Services Fund in January 1989, the City issued $5,600,000 Combination Tax and Sohd Waste Disposal System Subordinate Lien Revenue Certificates of Obhgation, Series 1989, to fund land acquisition costs. The Certificates mature on September 15 of each ; year from 1990 to 1999 Interest rates range from 6 6% to 10 6% and interest payments will be made on March 15 and > September 15 of each year commencing September 15,1989. The Certificates are co!!ateralized by future ad valorem tax levies and a subordinate lien on and pledge of the net revenues of the City's Sohd Waste Disposal System, as defined in the ordinance authorizing issuance. The City intends to retire these Certificates wholly from net revenues of the Solid Waste Services Fund. b - Airport Fund - Airport System - Prior Lien Revenue Bonds, Series 1989 On September 1,1989, the City issued $30,000,000 of Airport System Prior Lien Revenue Bonds. The bonds have an , interest rate of 7.35%. Interest is payable semiannually on November 15 and May 15 of each year. > The Senes 1989 Bonds and any additional bonds hereafter issued, are special obkgations of the City and are payable from and are equally and ratably collaterah2ed solely by a first I:en on the net revenues of the Airport System remaining after [ payment of operation and maintenance expenses and the monies on deposit in the Debt Service Fund and the Debt Service Reserve Fund The City has no other revenue bonds outstanding payable from the revenues of the Airport System. The revenue bond indentures also provide for a number of other limitations and restnctions. The City is in compliance with all significant hmitations and restrictions contained in the revenue bond indentures. The Airport System is currently comprised of the City's Mueller Airport located within the City limits of the City. In the mid 1980's the City commenced studies for a new airport site and on November 3,1987,$728 milhon of airport revenue bonds l were authonzed for a new airport near Manor Texas The Series 1989 Bonds were issued to begin design, development and construction of the new airport. In 1990 Bergstrom Air Force Base was hsted and subsequently determined to be closed by the Base Closure Commission in 1993. On December 19,1991, the City Council resolved to abandon the airport project near Manor Texas, and expressed its intent not to issue the remaining $698 million of revenue bonds for such project Studies are currently underway examining the feasibiltty of using the Bergstrom srte for the new airport. Unexpended proceeds of the Series 1989 Bonds will be used to call Series 1989 Bonds on November 15,1995, as required by Internal Revenue Service regulations, c - Convention Center On October 1,1989, the City issued $32,000,000 of Hotel Occupancy Revenue Bonds, Series 1989A and $36,240,000 of Convention Center Revenue Bonds, Series 1989B. The proceeds of the Series 1989A Bonds, together with the 1989B Bonds, certain other available funds of the City and certain investment eamings have been used to pay the costs of land acquisrtion, planning and construction of the Austin Convention Center, to pay approximately 33 months of capitalized interest on the Series 1989A and Series 1989B Bonds, to estabbsh a Debt Service Reserve Fund with respect to each of the i Series 1989A Bonds and the Series 1989B Bonds and to pay costs of issuance of the Series 1989A and Series 1989B Bonds. The Series 1989A Bonds interest rates range from 6.5% to 7.2%, and the Series 1989B interest rate is 8.25%. Interest is payable semiannually en November 15 and May 15 of each year.
~
49
i l NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) 13 - OTHER ENTERPRISE DEBT, continued The Series 1989A Bonds, together with any additional bonds hereafter issued, are special obligations of the City that are , equally and ratably payable from and collateralized by a first lien on the pledged revenues. The pledged revenues consist , primarily of that portion of the revenues denved by the City from its hotel occupancy tax levied pursuant to Chapter 351, Texas Tax Code, Vernon's Texas Code Annotated, as amended, which equals 4.5% of the consideration paid by occupants i of sleeping rooms furnished by hotels located within the corporate limits of the City in which the cost of occupancy is $2.00 or more per day, together with certain investment earnings. The City, pursuant to the Ordinance, does not grant any lien on or collateral interest in, or any mortgage of any of the physical properties of the City. The Senes 1989B Bonds, together with any additional bonds hereafter issued, are special obligations of the City that are equally and ratably payable from and collateralized by a lien on the gross revenues. The gross revenues consist of net pledged hotel occupancy tax revenues, gross income and other revenues which are derived by the City from the operation and use of the Convention Center, certain investment earnings, and any additional revenues, receipts, or income hereafter pledged to the bonds in accordance with the ordinance. The City, pursuant to the ordinance, does not grant any lien on or collateral interest in, or any mortgage of any of the physical properties of the City. The revenue bond indentures also provide for various other limitations and restrictions The City is in compliance with all significant limitations and restrictions contained in the revenue bond indentures. 7 t i f e r l l l I , f i fO
Oe, 5? fc t. t' . U NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS - September 30,1992 (Continued) 14 - DEBT SERVICE REQUIREMENTS The following is a summary of the City's debt service requirements for all funds at September 30,1992: Solid Waste Convention Utility Funds Services Airport Center Prtor and Municipal Assumed Assumed Prior and Fiscal Year Subordinate Utility Water District Tax and Prior Lien Subordinate General Ended Lien Revenue District improvement Revenue Utihty Debt Certificates Revenue Lien Revenue Obligation Contractual September 30 Bonds Contracts Bonds Bonds Subtotal of Obligation Bonds Bonds and Notes Bonds Obligations Total 1993 $ 194,256,608 10,404,586 254,586 522,861 205,438,641 791,882 2,205,000 5,728,694 55,355,176 1,027,313 270,546,706 1994 210,826,003 10,800,671 153,779 505.630 222,286,083 793,718 2,205,000 5,781,197 55,484,850 1,040,600 287,591.448 1995 233,641,747 11,271,213 153,633 513,449 245,580,042 797,677 2,205,000 5,781,197 55,651,305 1,036,300 311.051,521 1996 241,933,498 11,410,389 152,272 529,499 254,025,658 798,633 2,205,000 6,703,060 54,229,157 1,081,775 319.043.283 1997 246,072,198 12,384,026 155,598 513,355 259,125,177 801,695 2,648,095 12,104,029 54,004,857 1,106,170 329,790,023 1998 246,225,184 12.091,863 157,400 522,095 258,996,542 801,500 2,643,183 6,698,359 54,039,578 1,099,895 324,279,057 1999 242,971,922 12,468,991 152,850 528,925 '256,122,688 802,500 2,645,697 6,704,843 52,210,272 560,465 319,046,465 2000 244,269,398 12,678.657 121,875 543,825 257,613,755 - 2,635,640 6,709,445 50,877,432 - 317,836,272 3 2001 239,219,424 12,942,364 149,675 546,275 252,857,738 - 2,642,642 6,716,585 49,275,938 - 311,492,903 2002 235,915,659 12,305.781 105,575 546,900 248,873,915 - 2,636,338 6,720.186 47,937,680 - 306,168,119 2003 214,327,005 12,673,631 - 580.675 227,581,311 - 2,636,725 6,729,068 46,372,030 - 283,319,134 2004 227,643,640 12,831.427 - 575,925 241,050,992 - 2,633,437 6,736,094 46,189,080 - 296,609,603 2005 221,803,305 13,033,771 - 595.581 235,432,657 - 2,626,475 6,735,196 42,322.118 -- 287,116,446 2006 215,853.273 13.076,519 - 617,050 229,546.842 - 2,625,470 6,741,220 40,189,362 - 279,102,894 2007 214,055.342 13,184,438 - - 227,239,780 - 2,620,055 6,747,414 25,724,862 - 262,332.111 2008 188,017.456 13.371,082 - - 201,388,538 - 2,619,862 6,752,206 15,588,412 - 226,349,018 2009 175,785,336 13,503,164 - - 189,288,500 - 2,614,525 6,758,846 8,611,538 - 207,273,409 2010 174,534,988 13,638,388 - - 188,173,376 - 2,613,675 6,760,582 7,138,750 - 204,686.383 2011 174,231,638 315,984 - - 174,547,622 - 2,606,945 6,775,212 4,235,000 - 188,164,779 2012 168,473,728 312,363 - - 168,786.091 - 2,603,967 6,790,775 - - 178,180,833 2013 164,300,498 312.450 - - 164,612,948 - 2,594,375 6,810.419 - - 174,017,742 2014 143,791,846 311,063 - - 144,102,909 - 2.587,800 7,214,982 - - 153,905,691 2015 143,049,710 - - - 143,049,710 - 2,583,507 7,297,637 - - 152,930,854 2016 83,062,547 - - - 83,062,547 - 2,580,763 - - - 85,643,310 2017 63,941,637 - - - 63,941,637 - 2,578,830 - - - 66,520,467 2018 22,682,882 - - - 22,682,882 - 2,567,343 - - - 25,250,225 2019 13,239,850 - - - 13,239,850 - 2,555,933 - - - 15,795,783 2020 12,960,944 - - - 12,960,944 - 2,553,498 - - - 15,514,442 2021 9,041,725 - - - 9.041,725 - 2,529,670 - - - 11,571,395 Requirements at Septernber 30,1992 S 4,966,128,991 225,322,821 1.557,243 7,642,045 5,200,651,100 5,587,605 74,004.450 158,497,246 765,437,397 6,952,518 6.211,130,316
CITY OF AUSTIN, TEXAS NOTES TO COMBINED FINANCIAL STATEMENTS (Continued) SQptember 30,1992 14 - DEBT SERVICE REQUIREMENTS, continued The fo!!owing is a schedule of debt service requirements for the utsty funds as of September 30,1992: Fiscal Year Total Outstanding Prior Uen Bonds Outstanding Subordinate Lien Donds Ended Principal (1) Interest Total Principal interest T otal Prmcipal interest Total September 30 15,495,000 178,761,608 194,256;bO8 135,660,233 140,365,233 10,790,000 43,101,375 53,891,375 1993 5 4,705,000 210,826,003 23,140,000 41,745,775 64,885,775 36,665,000 174,161,003 1994 13.525,000 132,415,228 145,940,228 24,630.000 38,778,163 63,408,163 64,262,200 169,379.547 233,641,747 . 1995 39,632,200 130,601 384 170.233,9 4 26,540,000 35,786,788 62,326,788 79,000,330 162,933.168 241,933,498 1996 52,460,330 127,146,380 179,606,713 29,360,000 32,784,475 62,144,475 90,190,580 155,881,618 246,072,198 1997 60,830,580 123,097,143 183,927,723 28,937,800 62,572,800 98,782,960 147,442,224 246,225,184 65.147,960 118,504,424 183,652,384 33,635,000 1998 105,002,460 137,969,462 242,971,922 69,282,460 113,687,274 182,969,734 35,720,000 24,282,188 60,002,188 1999 106,612,526 137,656,872 244,269,398 65,232,526 118.524,872 183,757,398 41,380,000 19,132,000 60,512,000 2000 106,835,742 132,383,682 239,219,424 64,540,742 119,040,394 183,581,136 42,295,000 13,343,288 55,638,288 2001 112,509,638 123,406,021 235,915,659 68,384,638 116,066,958 184,451,596 44,125,000 7,339,063 51,464,063 2002 99,504,643 114,822,362 214,327,005 81,029,643 112,390,912 193.420,555 18,475,000 2,431,450 20,906,450 2003 120,835,743 106,807,897 227,643,640 120,485,743 105,393.122 225,878,865 350,000 1,414,775 1,764,775 2004 90,154,980 221,803,305 220,038,330 370,000 1,394,975 1,764,975 131,648,325 2005 131,278,325 88,760,005 1,374,075 1,764,075 134,494,465 81,358,808 215,853,273 134,104,465 79,984,733 214,089,198 390,000 2006 140,668,558 71,624,709 212,293,267 410,000 1,352,075 1,762,075 141,078,558 72,976,784 214.055,342 2007 125,129,528 62,887,928 188,017,456 61,559,090 186,253,618 435,000 1,328,838 1,763,838 2008 124,694,528 460,000 1,304,225 1,764,225 94,236,993 81,548,343 175,785,336 2009 93,776,993 80,244,118 174,021.111 415,000 1,280,163 1,695,163 78,159,068 96,375,920 174,534,988 2010 77,744,068 95,095.757 172.839,825 1,268,750 1,268,750 79,567,574 94,664,064 174,231,638 2011 79,567,574 93,395,314 172,962,888 - 1,268,750 1,268,750 76,787,117 91,686,611 168,473,728 2012 76,787.117 90,417,861 167,204,978 - i 1,268,750 1,268,750 105,556,488 58,744,010 164,300,498 2013 105,556,488 57,475,260 163,031,748 - l 1,268,750 1,268,750 120,735,000 23,056,846 143,791,846 2014 120,735,000 21,788,096 142,523,096 - 1,268,750 1,268,750 122,158,885 20,890,825 143,049,710 2015 122,158,685 19,622,075 141,780,960 - 634,375 18,759,375 68,932,916 14,129,631 83,062,547 50,807,916 13,495,256 64,303,172 18,125,000 l 2016 - 53,616,905 10,324,732 63,941,637 2017 53,616,905 10,324,732 63,941,637 - -
- 14.794,131 7,888,751 22,682,882 2018 14,794,131 7,888,751 22,682,882 - -
- 11,470,000 1,769,850 13,239,850 2019 11,470,000 1,769,850 13.239,850 - -
l - 11,895,000 1,065,944 12,960,944 2020 11,895,000 1,065,944 12,960,944 - - 8,540,000 501,725 9,041,725 2021 8,540,000 501,725 9,041,725 - - - Requirements at 2,414,497,775 2,551,631,216 4.966.128,991
$ 2,063,452,775 2,247,541,600 4.310,994,373 351,045,000 304,089,616 655,134.6t 6 September 30,1992 (1) Principal is due annusity on November 15 or May 15, according to the dates the bonds vvere sold, and interest is due semiannually on November 15 and May 15, Interest rates on revenue bonds outstanding range from 5.0% to 14 0%.
l l I l l I
NOTES TO COMBINED FINANCIAL. STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 ,,__ (Continued) 14 - DEBT SERVICE REQUIREMENTS, continued The fo!!owing schedule represents the debt service requirements at September 30, 1992, for assumed Water District improvement Bonds: Fiscal Year Ended September 30 Principal Interest Total 1993 5 195,000 59.586 254,586 1994 104.000 49,779 153,779 1995 109,000 44,633 153,633 1996 113,000 39,272 152,272 1997 122,000 33,598 155,598 1998 130,000 '27,400 157,400 1999 132,000 20,850 152,850 2000 107.000 14,875 121,875 2001 141,000 8,675 149,675 2002 103.000 2,575 105,575
$ 1.256.000 301.243 1.557.243 The follovnng schedule represents the Water and Wastewater Funds debt service requirements at September 30,1992, for assumed North Central Austin Growth Corridor MUD F. Jnlimited Tax and Revenue Bonds, Series 1986 and 1987:
Fiscal Year Ended September 30 Principal Interest Total 1993 5 195,000 327,861 522,861 1994 195,000 310,630 505,630 1995 220,000 293,449 513.449 1996 255,000 274,499 529,499 1997 255.000 258,355 513,355 1998 280,000 242,095 522,095 1999 305,000 223,925 528,925 ; 2000 340,000 203,825 543,825 2001 365,000 181,275 546,275 2002 390,000 156,900 546,900 2003 450,000 130,675 580,675 2004 475,000 100,925 575,925 2005 525,000 70,581 595,581 2006 580.000 37,050 617.050 ;
$ 4,830.000 2.812.045 7,642,045
he following schedule represents the debt service requirements at September 30,1992, for the Solid Waste Services Fund
- Revenue Certificates of Obligation:
Fiscal Year Ended September 30 Principal Interest Total 1993 5 495,000 296,882 791,882
~
1994 530,000 263,718 793,718 1995 570,000 227,677 797,677 1996 610,000 188,633 798,633 1997 655,000 146,695 801,695 1998 700,000 101,500 801,500 1999 750.000 52,500 B02,500 , S 4.310.000 1,277,605 5.587,605 ' I i e s 53
CITY OF AUSTIN, TEXAS NOTES TO COMBINED FINANCIAL STATEMENTS September 30,1992 (Continued) 14 - DEBT SERVICE REQUIREMENTS, continued The following schedule represents the debt service requirements at September 30,1992, for the Airport Fund - Prior Lien Revenue Bonds: Fiscal Year Ended September 30 Principal Interest Total 1993 $ - 2,205,000 2,205,000 1994 - 2,205,000 2,205,000 1995
- 2,205,000 2,205,000 1996 - 2,205,000 2,205,000 1997 460,000 2,188,095 2,648,095 1998 490,000 2,153,183 2,643,183 1999 530,000 2,115,697 2,645,697 560,000 2,075,640 2,635,640 2000 2001 610,000 2,032,642 2,642,642 650,000 1,986,338 2,636,338 2002 2003 700,000 1,936,725 2.636,725 2004 750,000 1,883,437 2.633,437
. 2005 800,000 1,826,475 2,626,475 2006 B60,000 1,765,470 2,625,470 2007 920,000 1,700,055 2,620,055 200B 990,000 1,629,862 2,619,862 2009 1,060,000 1,554,525 2.614,525 2010 1,140,000 1,473,675 2.613,675 2011 1,220,000 1,386,945 2,606,945 2012 1,310,000 1,293,967 2,603,967 2013 1,400,000 1,194.375 2,594,375 2014 1,500,000 1,087,800 2,587,800 i 2015 1,610,000 973,507 2,583,507 { 2016 1,730,000 B50,763 2,580,763 j 1.860,000 718,830 2,578,830 2017 2018 1,990,000 577,343 2,567,343 2019 2,130,000 425,933 2,555,933 2020 2,290,000 263,498 2,553,498 2021 2,440.000 89,670 2.529.670 5 30,000.000 44.004.450 74.004.450 1
\
l 1 f l 54 -)
-- - - -A
gr t1 ., W Y f. tw f3 ** s NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 14 - DEDT SERVICE REQUIREMENTS, continued The fo!!owing is a schedule of debt service requirements for the Convention Center Fund at September 30,1992: Fiscal Year Ended Outstanding Prior Lien Donds Outstanding Subordinate Lien Bonds Outstanding Notes Total September 30 Principal (1) Interest Total Principal (1) Interest Total Principal (2) Interest Total Principal Interest Total 1993 $ - 2,217,965 2,217,965 - 2.969,800 2,989,800 4,773 516,156 520,929 4,773 5,723,921 5,728,694 1994 - 2,217,965 2,217,965 - 2,989,800 2,989,800 60,235 513,197 573,432 60,235 5,720,962 5,781,197 1995 - 2,217,965 2,217,965 - 2,989,800 2,989.800 66,049 507,383 573,432 66,049 5,715.148 5,781,197 1996 715,000 2,194,728 2,909.728 240,000 2,979.900 3,219,900 72,425 501,007 573,432 1,027,425 5,675,635 6,703,060 1997 770,000 2,146,080 2,916,080 405,000 2,953,294 3,358,294 5,176,518 453,137 5,829,655 6,551,518 5,552,511 12,104,029 1998 830,000 2,092,865 2,922,865 875,000 2,900,494 3,775,494 - - - 1,705,000 4,993,359 6,698,359 1999 895,000 2,034,630 2,929,630 950,000 2,825,213 3,775,213 - - - 1,845,000 4,859,843 6,704,843 2000 965,000 1,970,908 2,935,908 1,030,000 2,743,537 3,773,537 - - - 1,995,000 4,714.445 6,709,445 2001 1,040,000 1,901,735 2,941,735 1,120,000 2,654,850 3,774,850 - - - 2,160,000 4,556,585 6,716,585 2002 1,120,000 1,826,655 2,946,655 1,215,000 2.558,531 3,773,531 - - - 2,335,000 4,385,186 6,720,186 2003 1,210,000 1,745,105 2,955,105 1,320,000 2,453,963 3,773,963 - - - 2.530,000 4,199,068 6,729,068 $ 2004 1,305,000 1,655,775 2,960,775 1,435,000 2,340,319 3,775,319 - - - 2,740,000 3,996,094 6,736,094 2005 1,405,000 1,558,215 2,963.215 1,555,000 2,216,981 3,771,981 - - - 2,960,000 3,775,196 6,735,196 2006 1,515,000 1,453,095 2,968,095 1,690,000 2,083,125 3,773,125 - - - 3,205,000 3,536,220 6,741,220 2007 1,635,000 1,339,695 2,974,695 1,835,000 1,937,719 3,772,719 - - - 3,470,000 3,277,414 6,747,414 2008 1,760,000 1,217,475 2,977,475 1,995,000 1,779,731 3,774,731 - - - 3,755,000 2,997,206 6,752,206 2009 1,900,000 1,085,715 2,985,715 2,165,000 1,608,131 3,773,131 - - - 4,065,000 2,693,846 6,758,846 2010 2,045,000 943,695 2,988,695 2,350,000 1,421,f 87 3,771,887 - - - 4,395,000 2,365,582 6,760,582 2011 2,205,000 795,656 3,000,656 2,555,000 1,219,556 3,774,556 - - - 4.760,000 2,015,212 6,775,212 2012 2,375,000 641,081 3,016,081 2,775,000 999,694 3,774,694 - - - 5,150,000 1.640,775 6,790,775 2013 2,565,000 474,356 3,039,356 3,010,000 761,063 3.771,063 - - - 5,575,000 1,235,419 6,810.419 2014 2,765,000 294,469 3,059,469 3,670,000 485,513 4,155,513 - - - 6,435,000 779,982 7,214,982 2015 2.980,000 100,575 3,080,575 4.050,000 167,062 4.217,062 - - - 7,030,000 267,637 7,297,637 Requirements at September 30,1992 $32.000,000 34,126,403 66,126,403 36,240,000 48,059,963 84,299,963 5,580,000 2.490.880 8,070,880 73,820,000 84,677,246 158,497,246 (1) Principalis due annua!!y on November 15 on the revenue bonds, and interest is due semiannually on November 15 and May 15. laterest rates on revenue bonds outstanding range from 6 5% to 8 25% (2) Principal and interest are due on the first day of each month The interest rate on the notes is 9.25%
CITY OF AUSTIN, TEXAS NOTES TO COMBINED FINANCIAL STATEMENTS , September 30.1992 (Continued) 14 - DEDT SERVICE REQUIREMENTS, continued Outstanding General Obligation Bonds of the City at September 30,1992, are as follows: Fiscal Year Enterprise General Obligation Bonds General Long-Term Debt Account Group Total Ended Principal interest Total Principal Interest Total Principal (1) Interest Total September 30 8,033,372 24.225,779 23,096.025 47,321,804 28,840,000 26,515,176 55,355,176 1993 $ 4,614,221 3,419,151 3,032,970 8,039,890 26,408,080 - 21,036.880 47,444,960 31,415,000 24,069,850 55,484,850 1994 5,006,920 7,868,561 20,289,038 27,493.706 47,782,744 23,369,174 32,282,131 55,651,305 1995 3,080,136 4,788,425 ' 4,696,252 7,598,666 20,094,819 26,535,672 46,630,491 22,997,233 31,231,924 54,229,157 1996 2,902,414 4,635,268 7,313,224 18,706,772 27,984,8G1 46,691,633 21,384,728 32,620,129 54,004,857 1997 2.677,956 54,039,578 2,410,427 4,630,946 7,041,373 17,892,987 29,105.218 46,998,205 20,303,414 33,736,164 1998 2,193,374 4,451,472 6,644,846 16,349,354 29,216,072 45,565,426 18,542,728 33,667,544 52,210,272 1999 3,927,523 6,465,503 19,063,594 25,348,335 44,411,929 21,601,574 29,275,858 50,877,432 2000 2,537,980 2,064,026 6,129,565 28,504,461 14,641,912 43,146,373 32,570,000 16,705,938 49,275,938 2001 4,065,539 l 47,937,680 4,037,185 1,793,052 5,830,237 29,302,815 12,804,628 42,107,443 33,340,000 14,597,680 2002 1,527,910 5,418,845 30,059,065 10.894,120 40,953,185 33,950,000 12,422.030 46,372,030 2003 3,890,935 1,271,526 4,895,403 32,371.123 8,922,554 41,293,677 35,995,000 10,194,080 46,189,080
$ 2004 3,623,877 1,034,974 4,064,506 31,435,468 6,822,144 38,257,612 34,465,000 7,857,118 42,322,118 2005 3,029,532 841,520 3,958,937 31,357,583 4,872,842 36,230,425 34,475,000 5,714,362 40,189,362 2006 3.117,417 635,018 3,754,485 19,090,533 2,879,844 21,970,377 22,210,000 3.514,862 25,724,862 2007 3.119,467 424,578 2,431,596 11,562,982 1,593,834 13,156,816 13,570,000 2,018,412 15,588,412
- 2008 2,007,018 292,478 1,991,747- 5,770,731 849,060 ' 6,619,791 7,470,000 1,141,538 8,611,538 2009 1,699,269 1,746,944 180,690 1,927,634 4,753,056 458,060 5,211,116 6,500,000 638,750 7.138,750 2010 1,212,640 71,242 1,283,882 2,787.360 163,758 2,951,118 4,000,000 235,000 ' 4,235,000 2011 l- Requirements at
$ 56,973,251 43.719,021 100,692,272 390,025,600 274,719,525 664,745,125 446,998,851 318,438,546 765,437,397 September 30,1992 l,
(1) Principei is due annually on Jufy 1 or September 1, according to the dates the bonds were sold, and interest is due semiannualty on March 1 and September 1 or January 1 and July 1, depending on the issue, at interest rates ranging from 4 40% to 12.00%. l l t l l l
.-m,_- _ _ . , . . - . . , , - , , . _ . - . . . , , , . , _ . . . - - - . _ , . - , . . , _ . . - . _ __m-,,,_._.,._..,., . , _ _ . _ - _ _ ..... _ . 4 , _. ._.i.
NCGTS TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN. TEXAS ~ September 30,1992 (Continued) 14 - DEBT SERVICE REQUIREMENTS, continued Outstanding Public Property Finance Contractual Obligations at September 30, 1992 as reported in the Solid Waste Services Fund, the Hospital Fund, and the General Long-Term Debt Account Group are as follows: Fiscal Year Ended September 30 Principal (1) Interest Total 1993 $ 700,000 327,313 1,027,313 , 1994 770,000 270,600 1,040,600 1995 810,000 226,300 1,036,300 1996 900,000 181,775 1,081,775 1997 975.000 131,170 1,106,170 1998 1,025.000 74,895 1,099,895 1999 545.000 15,465 560.465 5 5.725,000 1,227,518 6,952,518 (1) Principal and interest are due annually on May 1 and November 1. Interest rates range from 5.00% to 8.50%. , 15 -INTERFUND RECEIVABLES AND PAYABLES Interfund receivables and payables at September 30,1992, are as follows: l Current Long-Term , Due From Due To Advance To Advance From i Other Funds Other Funds Other Funds Other Funds i Enterprise Funds Utikty Funds: Receivable from Sohd Waste Services Fund S 22,610 - 180,881 - Receivable from Airport Fund 2,656 - 21,250 - [ Receivable from Drainage Fund 5,559 - 44,472 - Internal Service Funds: Receivable from Fleet Maintenance Fund 25,330 - 202,642 - Enterprise Funds Solid Waste Services Fund Payable to Utihty Funds - 22,610 - 180,881 Airport Fund , Payable to Utahty Funds - 2,656 - 21,250 Drainage Fund : Payable to Utihty Funds - 5,559 - 44,472 Internal Service Funds Fleet Maintenance Fund. . Payable to Utihty Funds - 25,330 - 202.642 5 56,155- 56,155 449,245 449.245 ~ 57 [
i NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN TEXAS September 30,1992 (Continued) i 16 -INTERFUND TRANSFERS Operating transfers between funds during the year were as follows-Operating Operating Transfers in Transfers Out Governrnental General Fund $ 75,334,966 11,380,183 Special Revenue Funds 3,545,258 10,B54.289 Debt Service Fund 2,609.100 - Capital Projects Funds 2.110,614 4,431,984 Enterprise Utiley Funds - 76,125,636 Hospitaf Fund 5.600,000 1,071,732 Solid Waste Services Fund - 1,033,611 Sanball Fund - 124,510 Golf Fund - 97,041 Tennis Fund - 21,679 Airport Fund - 670,138 Convention Center Fund 8.205.105 321,043 Drainage Fund - 262,724 Internal Service Fleet Maintenance Fund - 727,325 Trust and Agency Expendable Trust Funds 9.666.852 - 5 107.121.895 107,121.895 The rnore significant operating transfers include the following-Operating Transfers in Operating Transfers Out knount i General F und Enterpnse F unds: Utdity Funds $ 73,237,718 Solid Waste Services Fmd 498,000 Airport Fund 519,B63 Convention Center Fund 229,050 Drainage Fund 200,000 - , internal Service Funds' Fleet Maintenance Fund 453,492 Other Special Revenue Funds: Brown & Root Conservation Fund Special Revenue Funds 1,590,000 PARD Cultural Projects Fund Special Revenue Funds 1,309.1 B4 Enviranrnental & Conservation Senoca Fund General Fund 486,074 Debt Service Fund Capital Projects Funds 2,590,030 Capstal Projects Funds Generaf Fund 500,000 Capitat Projects Funds: Other Funds 1,491,9B4 Enterpnse Funds: Hospital Fund General Fund 5.000,000 Convention Center Fund Special Revenue Funds 7,855,105 Capta! Projects Funds 350,030 Trust and Agency Funds: Workers Compensation Fund General Fund 3,457,790 Enterpnse Funds. Utility Funds 1,760,591 Hospital Fund 811.031 Solid Waste Sennees Fund 472,268 Internal Service Fmds: Fleet Maintenance Fund 247,421 Liatslity Reserve Fund General Fund 1,176,319 Erterpnse Funds: LNity Funds 966,623 Hospital Fund 260,701
~
58
CITY OF AUSTIN, TEXAS NOTES TO OOMBINED FINANCIAL STATEMENTS September 30,1992 (Continued) 17 - SEGMENT INFORM ATION a - Enterprise Fund Activities The City maintains eleven enterpnse funds, which provide electric, water and sewer, health care, solid waste services, golf, ! tennis, softball, airport, convention, drainage, and transportation services. The first three services are provided by the ! Retric Light and Power Syster Fund and the Waterworks and Sewer System Fund. Segment information for the year i ended September 30,1992 is as follows (in thousands of dollars): Electric Waterworks & Other Total System Sewer System Hospital Enterprise Enterprise Fund Fund Fund Funds Funds Operating revenues 5 426,070 152,206 157,396 56,420 792,092 , Depreciation and amortization expense 46,114 10,372 5,409 6,230 68,125 Operatmg income 157,592 59,749 35,185 11,336 263,862 C 3erating tr3nsfers in - - 5,600 8,205 13,805 58,624 17,502 1,072 2,530 79,728 Operatmg transfers out 4,708 6,778 37,297 18,097 66,880 Net income 111,224 26,737 45,823 23,506 207,290 Current assets 36,546 13,625 17,847 4,719 72,737 Current liabihties 74,678 13,112 27,976 18,787 134,553 Net working capital surplus ' Property, plant and equipment: 85,756 83,422 6,820 50,340 226,338 + Additions 3,929 242 - (296) 3,875 Retirements ! (1,145) (2,287) - 218 (3,214) - Transfers from (to) other funds Net ppperty, plant and equipment 1,662,425 1,170,592 80,478 167,180 3.080,675 i 2,244.302 1,399,909 138,656 274,474 4,057,341 ; Total assets Bond, restricted, and other long-terrn liabilities 1,778,230 904,227 53,941 120,058 2,856,456 Current capital contnbutions 3,656 520 5,743 9,088 j (831) ' Tctal equity 429,526 482,057 66,868 149,697 1,128,148 b - Proprietary Fund Contributed Capital The following table summartzes amity in contributed capital for the year ended September 30 1992; i Balance Contribution Type , Balance , Septembee 30, From From Other in Aid of L- areciation Septernber 30, (To) From l 1991 Municipality Donors Governments Constract.nn Taken 1992 5 295,914,403 (5,474,433, '
- - 8,299,595 (11,160,071) 288,579,524 Otdity Funds '
10,565,319 - 519,663 - - - 11,084,982 Hospta1 Fund Sohd Waste Services Fmd 1,031,414 (1,7S3,179) - - - - (721,765) ;
- 1,004,346 Golf Fund 1,004,348 - - - -
[ 1,681,461 - - - 1,881,461 ; Tennis Fund - - 17,997,214 184,071 5,207,810 - (870,209) 22,518,886 , Arport Fund - l' 20,441,019 (12,352) 169,745 314,522 2,284,870 - 23,197,804 Convention Center Fund 671,526 15.908 - 201,344 - 888,778 Drainage Fund - Fleet Mairtenance Fund 7.032.0S4 (986,824) - (1.057,312) - - 4.987.928
$ 357,538,768 (8,026,779) 689,408 4,465.020 10,785.809 (12.030.280) 353.421,946 Totat , .e 18 -JOINT OPERATIONS 9 ,
U The City has entered into several participating agreements on joint projects. In accordance with NCGA Statement 7, Financial Reporting for Component Units within the Govemmental Reporting EntMy, susch joint operations have been ;
~__ a evaluated to determine under the enteria set forth in NCGA Statement 3 (see Note 1) which fall within the definition of the s
', reporting entity. The following joint operations meet the criteria for inclusion in the reporting entity and are included (combined) in the City's fmancial statements. The South Texas project (see Note 19) also meets the criteria for inclusion and is included in the Csty's financial statements.
~
- 59
l t NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Cont b os 18 - JOINT OPERATIONS, continued i a - F-yette Power Project ! P The Fayette Power Project ('he "Projeci , Units I and !!) is jointly owned by th( City and the Lower Colorado River Authority (LCRA, Project Manager)- each participant has an undivided interest in the Project. The Project is a joint operation of two ; coal-fc*d electric power generation units w:th a net capacity of 1,100 megawatts. Each participant's actual equity in the t Project may vary from 50% depending on the percentage of kilowatt hours produced by the Project and used by each. l I The Project is governed by a management committee whose four members are administratively appointed, two each, by the participants. As managing partner, LCRA is responsible for the operation of the Project and appoints the Project's ; I management. However, the City has the ability to inf uence significantly the operation of the Project through approval of i major contracts and new major expenditures by its appointees to the management committee. Each participant issued its ! own debt to finance its share of construction costs. The City's portion is financed through revenue bonds to be repaid by the Electric Light and Power System Fund. In addition, each participant has the obligation to finance its portion of any deficits that may occur.
- The following is a summary of financial information taken from the Project's audited financial statements, dated June 30, t 2 1992, and 1991, the Project's fiscal year end. These statements were not examined by the City's auditors. ,
i Amounts presented are in thousands of dollars. June 30,1992 June 30,1991 Total COA LCRA Total COA LCRA Assets 5 89,647 31,608 58,039 86,474 33,484 52.990 Liabilities 12,808 3,194 9,614 13,122 3,086 10,G36 Equity 76,839 28,414 48,425 73,352 30,398 42,954 3 Revenues 1,751 866 885 2.238 1,158 1,080 Expenses 163.362 58,106 105,256 176,331 61,887 114,444 Net Expenses ! Incurred S 161,611 57.240 104,371 174,093 60,729 113.364
- b - Utility Construction Contracts with Municipal Utility Districts ,
The City has certain contractual commitments with several Municipal Utahty Districts (MUDS) for the construction of certaia additions, improvements and extensions of the City's Waterworks and Sewer System. These MUDS are authorized to issue ; contract revenue bonds to finance the construction of such improvements. The City's commitment exists in either of two forms: : (1) The City becomes the owner of the improvements upon complett" of the constru,. tion and makes payments equal to debt service on the MUDS
- bonds. Sources of such payment are MUD customers' user fees, surplus net revenues of the ,
City's Waterworks and Sewer System and, if necessary, City ad valorem taxes. (2) The City makes payments equal to the principal only on the MUDS
- bonds from the same sources mentioned above.
i The utthty construction contract between the MUDS and the City provides that the City will own and operate the water and wastewater improvements upon completion of construction, retirement of all bonds, or upon annexation of the MUDS. Under these contracts, the MUDS have issued $202,055,000 City of Austin, Texas Contract Revenue Bonds (original issues) l to provide funding for construction costs of the contract facilities. Certain Contract Revenue Bonds have been refunded, defeased, and assumed (MUD annexation) leaving bonds outstanding of $128,440,000. On February 27,1992, the Maple Run at Austin MUD delivered $17,955,000 of Contract Revenue Refunding Bonds, Series 1992 to refund 517,400,000 of District's previously issued Contract Revenue Bonds, Series 1966. This refunding is , considered a legal defeasance of debt for the MUD. The refunding resulted in a cumulative ieduction in debt service , requirement of $"! 456,949. An economic savings of 5745,547 was recognized on this transaction. An accounting loss of ! 12,348,236 was recognized by the MUD on the refunding.
- l i
e
' I 60'-
i NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) . 18 - JOINT OPERATIONS, continued , The bonds are limited obligations of the MUDS payable from and collateralized by a first lien on and pledge of payments to be made by the Crty pursuan' to the utility construction contracts wherein the City has agreed to make semiannual payments in amounts sufficient to pay principal and interest on the bonds when due. A substantial portion of these bonds is collaterahzed by a subordinate lien on and pledge of the net revenues of the City's Waterworks and Sewer System on a .,' parity with all subordinate lien revenue bonds The remainder of the bonds are collateralized by a pledge of surplus net revenues of such system and, if necessary, ad valorem City taxes. To the limited extent of the MUDS' obhgation to pay a pro rata share of debt service, the bonds are addrtionally collateralized by a payable from a levy by the MUD of an annual ad valorem tax without limit as to rate or amount upon all taxable property within the MUD. i Upon completion of the contract facilities, the City's investment in the MUDS will be reclassified as property, plant and equipment. In FY91-92, the City reclassified $47,199,042 of investment in MUD as property, plant and equipment. Following is a schedule of outstanding contract revenue bonds at September 30, 1992, and related debt service requirements (including amounts outstanding for which tne District is obligated to pay): , J Outstanding ; Bonds at Aggregate l September 30, Debt Service 1992 Requirements Wells Branch MUD (formerly North Austin Growth Corridor MUD #1) $ 5,400,000 7,532,935 l South Austin Growth Corridor MUD #1 1,300,000 2,133,156 N, Austin MUD #1 18,330,000 32,821,756 , Circle C MUD #3 33,490,000 59.659,494 Circle C MUD #4 3,300,000 6.783,950 Southland Oaks MUD 23,255,000 42,713.497 1 Maple Run at Austin MUD 20,680,000 33,908.223 t Village at Western Oaks MUD 22.685.000 39.769,810 f i
$ 128.440,000 225.322.821 !
l
. I
+
1 p N
& 61 t
NOTES TO COMBINED FIMANCIAL STATEMENTS CITY OF AUSTit!, TEXAS September 30,1992 (Continued) 18 - JOINT OPERATIONS, continued At the time of preparation of these financial statements, financialinformation was available for the MUDS. The following information is taken from the most recent audited financial statements, which are for the fiscal year ended September 30,1991:
+
MUD Fiscal Year Ended September 30,1991 Wells Branch
- . MUD (formerly South Austin Southland M ple Run Village at N. Austin Growth Growth Corridor North Austin Circle C Circle C Oaks at Austin Western Oaks i Corridor MUD #1 MUD No.1 MUD No.1 MUD No. 3 MUD No. 4 MUD MUD MUD Total S' 25,123,478 9,861,704 49,481,427 32,219,559 7,742,872' 3,641,855 17,782,041 22,521,629 168,374,565 Assets Liabihties 12,039,836 7,830.633 25.974,199 34,157,254 7.430,379 2,441,465 7,055,303 22,743,633 119.672.702 Equity $ 13,083,642 2,031,071 23,507.228 (1,937,695) 312,493 1,200,390 10,726,738 (222,004) 48,701,863
) .0 2 I s 6 _ ne r 4-, . - - .- --.~, .. - . _--- *- -. -.m... . . . - - , , . . . ~ . . - . - . , + .. ~,-e.- , . - . . . - . . i.~., .- . . . . - . - , . . . . . . . . . - . . .r - .-. _ _ _ . . - . - - - _ ..-m . _ .~.,...
fdOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) 18 - JOINT OPERATIONS, continued c - Brushy Creek g I On December 16,1985, the City cf Aust!n entered into a contract with the Brushy Creek Water Control and improvement D:stnct No.1 of Wilhamson and Milam Counties (the Distnct) and three other entitles: the City of Round Rock, Wilhamson ! County MUD No. 2 and W@amson County MUD No 3. This contract prov; des for joint funding of a regional wastewater collection and treatment system serving the upper Brushy Creek watershed in Wilhamson County. According to the contract, when bids for the construction are received, participants have the option of reviewing those bids and reconsidenng participation if bids exceed estimated construction costs stated in the contract by ten percent. If any party decides to withdraw, the District and other participants are relieved from their obligation to proceed with the project; they may also continue participation When actual bids were received in June 1987, Williamson County MUD No. 2 notified the Distnct of its intention to withdraw from the project. Since that time, Williamson County MUD No. 3 has also withdrawn leaving only the Cities of Austin and Round Rock. A new contract was executed between Austin, Round Rock, and the Distnet in March 1988 for a smaller project to serve the needs of the two cities wrthin their extraterritorial jurisdictions. The Distnct presently holds a wastewater discharge permit issued by the Texas Water Commission which will allow a d:scharge of ten milhon gallons a day when the system is functional, providing the City with an additional 27,500 living unrt equivalents (' LUES') (approximately equal to one single family detached residence) of wastewater treatment for its [ customers. Under this contract, the District acts as Project Manager and uses funding from the other participants for acquiring, i constructing, f;nar.cing and operating the system. The Project Manager is assisted by a Technical Committee, established in the contract, which serves in an advisory capacity to the District. It is responsible for reviewing plans, specifications and , work related to the project contracts; submitting recommendations to the District for operating budgets, rates for service, and ( 3 awards or changes in project contracts, reviewing changes to the Engineering Report; and reviewing any other matters ~ referred to the Committee This Committee is comprised of three members representing Austin, Round Rock, and the , District. Ownership in the project at September 30,1992, is dehneated in the following ratos: Phase 1 A & 1B City of Austin 85 % City of Round Rock 15% The most recent aud:ted figures for the project show the fo!!owing analysts of funding and expenditures as of September 30, 1992: Williamson Williamson City of City of County County 1 Austin Round Rock MUD No. 2 MUD No. 3 Total Funded 5 6,923,898 1,196,574 984,361 248,986 9,353,819 Interest earned on funded amounts 135.698 29.386 34,432 9.205 209.721 ; Total sources 7.060.595 1.225.960 1.018,793 258.191 9.563,540 Expenditures for the project 5,993,440 1,151,454 950,969 244,224 9,340,087 Refunds to part4cipants withdraw's frorn the project - - 67,824 13.957 81.791 Total uses 6.993.440 1.151.454 1.018.793 258.191 9.421,678 UabMy to customers at September 30,1992 5 67.156 74.506 - - 141.662 l In 1989, the project purchased certain wastewater enllection and transportaten facihties that provided revenues to the 1
, project. The excess of revenues over expenditures from these facilities was $19,420 for the fiscal year ended September 30, j 1992. Austin and Round Rock owed $9,411 to the District for operating costs of this facihty at September 30,1992. j l
w T
'?
- 63 l I
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS. September 30,1992 (Continued) , 19 - SOUTH TEXAS PROJECT ; a - General The City was admitted to the South Texas Project (STP)in December 1973, with a 16% ownership in generating units and common facihties,18.8% ownership of 400-foot-wide corridor,19.3% ownership of 340-foot-wide corridor,50% ownership of transmission tower system #2, and 8% ownership of transmission tower system #3. The City is tenants in common with Houston Lighting and Power Company (HL&P, the project manager), City Public Service of San Antonio (CPS), and Central , Power and Light Company (CP&L) The South Texas Project was formed for the purpose of licensing, constructing and { operating two 1250 megawatt nuclear generating units. l The project manager is responsible for the construction, operation, and maintenance of the project. Unit 1 began operating , in August 1988 with Unit 2 operationalin June 1989. Each participant appoints one primary representative and an attemate , to the Management Committee. The Management Committee was formed pursuant to the participation agreement to secure effective cooperation and interchange of information and to provide consultation among the participants. Each participant is responsible for its debt related to STP, with the City's portion being financed through revenue bonds, repaid by the Electric Light and Power System Fund (see Note 12). In addition, each participant has the obligation to finance any deficits that may occur. The City's portion of Units 1 and 2 of South Texas Project are classified as plant in service. Nuclear fuel includes fuel in the reactor as well as nuclear fuel in process. b - South Texas Project The following is a summary of financial information taken from the South Texas Project's audited financial statements dated September 30,1992. These statements were not examined by the City's auditors. Amounts presented in thousands of dollars. , San HL&P Antonio Central Austin Total b Construction 5 505 460 414 263 1,642 Operations 83,097 75,543 67,988 42,927 269,555 Claim recoveries (1,427) (1,298) (1,168) (741) (4,634) j Direct pay insurance 1,892 1,891 1,548 1,080 6,4i1 -t Nuclear fuel 18,455 16,786 15,108 5.413 55,772 Nuclear fuel disposal fees 5,046 4,551 4,000 2,595 15,192 Westinghouse Steam Generation Litigation 547 498 448 285 1,778 l Total 1992 funding 5 108,125 98.431 88.338 51.822 346.716 c - Construction History and Status in September 1981, Brown and Root Inc. (B&R), serving as architect-engineer, construction manager, and constructor, was , dismissed from its responsibility on the project as architect-engineer and construction rnanager. Subsequent to the dismissal of B&R as architect-engineer and construction manager, B&R informed the project manager that it would withdraw , completely from the project. In September 1981 and February 1982, a new engineering firm., Bechtel Power Corporation, > and construction firm Ebasco Services Inc., respectively, were engaged to complete the project. Fuelload for Unit No.1 was achieved August 1987. In March 1988, Unit No.1 achieved reactor criticality for the first time. Dunng that month, the Nuclear Regulatory Commission (NRC) voted 5 to O to issue a full power license for Unit No.1. Commercial operation of Unit No.1 began in August 1988. Fuel load for Unrt No. 2 was achieved December 1988. In March 1989, Unit No. 2 achieved reactor criticality for the first ; time. During that month, the NRC issued e full power license for Unit No. 2. Commercial operation of Unit No. 2 began in June 1989. P~ised on the isnal project cost report dated July 1989, total construction costs net of the Brown & Root litigation settlement were approximately $5.41.ilkon. The City's 16% ownership of the generating umts and common facihties in addition to other City internal costs were recorded as plant in service in the amount of $890,715.225. . 64 ,
I l NOTES TO COf9BINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) l l l 19 - SOUTH TEXAS PROJECT, continued d - Litigation against Brown & Root ! l In December 1981, the project manager and participants filed suit against Brown & Root, Inc. (B&R, former architect-engineer, construction manager and constructor for the project) and its corporate parent, Halliburton Company. The participants and the project manager alleged that B&R materia!!y misrepresented the level of engineering work completed at > the time the owners were induced to commence construction of the project, that B&R's performance of the construction contract was substandard and nonprofessional in various respects, (which resulted in delayed completion and increased costs of the project), and that B&R materially breached the construction contract by refusing to continue as constructor after being reheved of its responsibihties for the engineering and design work on the project. , On December 20,1985, B&R and Halkburton entered into a proposed Settlement Agreement with the project manager and i
; other participants. Under the terms of this Settlement Agreement, the participants will receive a total of $750 million from ;
B&R and Halliburton over a seven-year period in exchange for the plaintiffs dismissing the htigation and agreeing to forego any other claims related to B&R's performance on the STP. The City's portion of the Settlement Agreement is $120 million over the seven-year period. The City Council designated $60 million of these proceeds to be used to fund Energy Conservation Programs in the Environmental Conservation Services Department, previously known as the Resource , Management Department. In 1989, 57.8 million of the proceeds were used to fund Electric construction projects. City ; Council approved the use of $46 million for construction advances to the South Texas Project in 1989 and $11 mi!! ion in 1990 for mmor construction projects, STP and FFP advances. The City Council approved the use of $9 mi!! ion in 1990 to partially fund an amount required to defease outstanding revenue bonds. In 1992, the City Council approved to use the remairung unbudgeted funds that were previously designated to fund energy conservation programs to refund or defease utility debt. i , e - Authority to Sell On November 3,1981, the citizens of Austin voted to grant the City Council the authonty to sell its interest in the South i Texas Project. On September 3,1987, the City of Austin and Houston Lighting and Power signed an Agreement in Principle I under which the City would convey its interest in the South Texas Project to HL&P in exchange for an interest in an HL&P lignite plant. The settlement was subject to several condrtions including a requirement that the Public Utility Commission (PUC) make a finding that the exchange would be in the public interest in regard to its effects on HL&P rate payers. In August 1988, the PUC deferred the public interest iscue until HL&P's next general rate proceeding. As a result of mandamus action filed by HL&P, the PUC subsequently issued an order that the exchange would not be in the public interest as regards to its effects on HL&P's rate payers HL&P then exercised its option to terminate the Settlement Agreement. Following the termination of the Settlement Agreement, a March 1989, trial date was set and a trial was held. See Note 20 for further details on this agreement. l f-Issuance of Debt Related to STP The City has not attempted to obtain voter approval for any additional revenue bonds for financing the South Texas Project > since January 1983 On March 1,1984, the City Council authorized the issuance of $605,000,000 revenue bonds for < Austin's share of the estimated cost to complete the South Texas Project. This authorization was in compliance with State statutes even though the City's charter requires voter approval prior to the authorization and issuance of revenue bonds. The Crty proceeded with a bond vahdation suit in state district court to vahdate the $605,000,000 revenue bonds, and thirty-two citizens intervened The District Court validated the bonds and the intervenors appealed, but lost at every level of appeal including the U.S. Supreme Court. The bonds have been validated. g - Nuclear Decommissioning The South Texas Project is subject to regulation by the Nuclear Reg - sry Commission (NRC). The NRC amended its regulations effective July 27,1988, setting forth minimum amounts ree, J to demonstrate reasonable assurance of funds for decommissioning by reactor type. On or before Ju!y 26,1991, each nolder of an operating license for a production of utihzation facility in effect on July 27,1990, was required to submit to the NRC a report hdicating how reasonable assurance
- would be provided. The City of Austin with the other participants provided tb esquired report to the NRC. The minimum
- amount for a Pressunzed Water Reactor (PWR), the size of each STP unr $105 million (January 1986 dollars). This j minimum is required to be adjusted annually in accordance with the adjuwnent factor formula set forth in the regulations.
4 e 65
CITY OF AUSTIN, TEXAS NOTES TO COMBINED FINANCIAL STATEMENTS September 30,1992 (Continued) 'i9 - SOUTH TEXAS PROJECT, continued The report provided by the City of Austin as well as the other STP Participants, based reasonable assurance on the minimum amount (January 1986 dollars) as adjusted by the adjustment factor formula set forth in the regulations. The City of Austin has established an external irrevocable trust for decommissioning with Bank One Texas, NA The City of A astin p has been collecting for decommissioning through its rates since fiscal year 1989. For fiscal year 1992, the City of A,ustin t collected $2.658,000 for decommissioning expense. 20 - LITIGATION a - Action against Houston Lighting and Power l On January 6,1983, the City filed suit in Travis County against Houston Lighting and Power (HL&P) and its parent company, Houston industries, Inc. The lawsuit alleged that HL&P failed to perform and discharge its duties as project manager for the South Texas Project (STP). After several delays, the suit went to trial and in 1989, a jury found that HL&P had breached the STP participation agreement by withholding information from the City, but that this breach had not been the cause of any increase in the cost of the STP.- and that the City had not suffered any damages. The trial court then denied the City's motion for a new trial, and a notice of appeal was filed with the Dallas Court of Appeals. See note 23 for further details. b-Water and Wastewater Litigation The City is involved in a number of lawsuits involving the operation of its water and wastewater system. Some of the ' cases involve failure to provide sewer service on a timely basis. The City believes these surts will not have a material - adverse effect on these financial statements. The City is involved in a number of small lawsuits involving various property claims. The City believes these suits will not have a material adverse effect on these financial statements. c - Westinghouse Litigation On October 15,1990, the four STP owners (City of Austin, City of San Antonio, Houston Lighting & Power Company (HL&P), and Central Power and Light Company (CP&L)) jointly filed a lawsuit against Westinghouse Electric Corporation and two of its employees in the District Court of Matagorda County, Texas,130th Judicial District, Cause of Action No. 90 0684A-C. This litigation alleges that Westinghouse kr:owingly sold the STP owners a nuclear steam supply system containing a steam generator tubing that is susceptible to stress corrosion cracking and that Westinghouse has failed to meet its warranty obligations to repair, modify, or replace the steam generator tubes as required. The suit also alleges that Westinghouse violated the Texas Deceptive Trade Practices Act by misrepresenting the quality and capabilities of the steam generator tubing and by faihng to disclose information it knew regarding deficiencies in the steam generator tubes. No trial date has been set not formal pre-trial schedule agreed to, although it is anticipated that trial will not begm until 1994. On a separate track, the STP owners and Westinghouse are discussing potential business resolution of these claims. It is not known if these settlement discussions will continue or if they will reach a more detailed level during the coming year, d - Other Litigation The City is a defendant in several lawsuits alleging medical malpractice at Brackenridge Hospital. The Texas Torts and Claims Act operates to set a maximum hability of $250,000 on such claims. The City believes these suits will not have a ! material adverse effect on these financial statements. l A number of other claims against the City are pending with respect to various matters ansing in the normal course of the City's operations. Legal counsel and City management are of the opinion that the settlement of these other claims and l pending litigation will not have a material adverse effect on the City's financial statements. l j The City has accrued a liability for claims payable at September 30,1992, which includes amounts for lawsuits settled i subsequent to year end, as well as amounts sufficient to fund additional estimated future claims.
)
* .i
NOTES TO COMSINEO FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS I September 30,1992 (Continued) . 21 - COMMITMENTS AND CONTINGENCIES . I 4 a - Fuel Contracts { l The ARCO coal purchase contract was amended, effective Apnl 1,1989, to provide for a price reduction in return for an j increase in the term and contract volumes. Under the amended contract, the City will buy approximately two million tons of coat annually from ARCO through 1995 at a reduced initial pnce; the amendment also provides for a system of fixed, l indexed, and market-dnven prices which are expected to produce a slower rate of pnce escalation than was experienced ! under the onginal terms of the contract. Between 1996 and 2001, inclusive, the City will purchase approximately 1.25 million tons of coal annually from ARCO at a price set by indexes or by the market at the City's option. The contract amendment is ! expected to save the City approximately $3 million per year through 1995. The LCRA is an equal party te the amended ; contract as it was to the onginal agreement. The average price per ton of ARCO coal delivered to the Fayette Project was j approximate!y $2.00 per million Brrtish Thermal Units C'MMBTU") in 1988. The current average delivered price per ton of ; coal under the amended contract, is approximately $1.35 per MMBTU. ; in addition to the ARCO coal, the City will also purchase 50,000 to 100.000 tons of coal annually on the spot market. ,
, he Union Pacific Railroad Company and Western Railroad A ten year coal transportation agreement has beer site . - f Properties incorporated as part of the settlement of cer W .n. ;
) During the fiscal year the City brought into service a new pipeline which connects the Decker station with Lone Star pipeline system. This is in addition to the City's long-standing connections to Valero. The City currently has gas transportation , contracts with Lone Star and Valero. These contracts provide for, respectively,90,000 MMBTUs and 150,000 MMBTUs of j firm transportation service each day. The Lone Star contract can be terminated by either party in 1996 or subsequently, and j , the Valero contract can be terminated by either party at the end of 1999 or subsequently. l At the end of the fiscal year, the City had core gas supply contracts with Tenngasco and United Texas Transmission j (UTTCO) and spot contracts with 14 vendors. The Tenngasco contract will expire on January 1,1993, and the UTTCO ! contract expires on May 1,1993. ; t i The core contracts provide firm or interruptible gas volumes which vary daily with the City's gas requirements. The spot ! contracts can provide on a 30-day basis either firm, non-firm, constant flow, or daily swing volumes, at the City's option. . . The City's reliance on firm versus non-firm supplies is adjusted monthly depending on the season and market condrtions. : i ! . The price under the term contracts varies monthly with market indices and may also be subject to price reopeners. The spot l prices are bid monthly. l j in addition to its major gas supply contracts, the City also receives approximately '2,600 MMBTUs per day of gas from j Coastal Corporation. This gas is provided pursuant to Texas Railroad Commission orders related to the Docket 500 ! htigation, and is sold to the City at a price discounted from the market price. The Coastal supplies continue through October 1.1993. i The annual average pnce of gas delivered to the City's generating facilities is about $2.00 per MMBTU. b - South Texas Project (STP) Fuel Contracts The three major components in the preparation of nuclear fuel for reactor use are uranium ore, ore enrichment, and fuel i fabrication. The Project is currently relying for uranium supplies on its existing inventory, which will be sufficient to meet all needs through 1993. Conversion services are provided by Brrtish Nuclear Fuels Ltd. The Project also made a spot purchase of conversions services from Nukem in June 1992. Uranium enrichment is provided for through a long-term contract with the U S. Department of Energy, and is provided only i by this source through the year 2000. I ~ Fuel fabrication for STP fuel elements is providad for through the Westinghouse Settlement at no charge for 10 years and a reduced charge for an additional 6 years. } :- 1e i i .+ Q U 67
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS ' September 30,1992 (Continued) ' 21 - COMMITMENTS AND CONTINGENCIES, continued i c - Certificates of Participation t The City has entered into several capitallease arrangements through the issuance of Certificates of Participation as follows: r S23,060,000 Certificates of Participation, City of Austin, Texas Electric Utihty Office Project, Series 1987; 514,000,000 Certificates of Participation, City of Austin, Texas Water and Wastewater Utility Office Project, Series 1987; i The certificates represent proportionate interests in lease payments to be made by the City to a third-party lessor. The City has title to the office projects, pursuant to General Warranty Deeds; however, the trustee maintains a Vendor's Lien and Superior Title to the properties until all sums due are paid in full. The City's obligation to make lease payments and any other obligations of the City under the Lease Agreements are subject ! to and dependent upon annual appropriations for such purpose being made by the City Council. The Crty's obligation to : i make lease payments under the Lease Agreement does not constitute an obligation for which the City is obligated to levy or i pledge any form of taxation or for which the City has levied or pledged any form of taxation. Thus the certificates are treated as capitallease obligations rather than long-term bonds. The following table presents information regarding these certificates: i t Water and ; Electric Wastewater Office Project (1) Office Project (1) f Date issued February 1987 August 1987 Amount issued 23,060,000 14,000.000 j interest rates 4 00% - 7.00% 5.25 % - 8.00 % ; interest payable on March 15 and May 15 and ! September 15 November 15 i Matunty dates September 15 November 15 .f 1988 - 2007 1989-2007 Present value of - lease payments 19,510,000 12,800,000 Reserve fund (2) 2,000,000 1,250,000 (1) Subject to mandatory redemption upon the occurrence of certain events. (2) Held by trustee, to be used to make feat payments. *
'i The Certificates are reflected as a capital lease liability in these financial statements in the fund for which the corresponding -f assets were acquired t
d - Federal Financial Assistance Programs , I The City participates in a number of federal financial assistance programs. Although the City grant programs have been audited in accordance with the provisions of the Single Audd Act of 1984 through September 30,1992, these programs are subject to financial and compliance audits and resolution of previously identified questioned costs. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the City expects ! such amounts, if any, to be immaterial. , e - Arbitrage Rebate Payable The City's financial advisor has determined that the City may have earned interest revenue on unused bond proceeds in ~f excess of amounts allowed by apphcable Federat regulations, which may have to be rebated to the Federal government. , Estimated amounts payable at September 30,1992, as arbitrage rebates are $3,903,477 for the enterpnse funds and ;
$419,171 for the capital projects funds '
i 68- ;
t MOTES TO COMBINED FIMAWCIAL STATEMEMTS CITY OF AUSTIN. TEXAS l September 30,1992 (Continued) 21 - COMMITMENTS AND CONTINGENCIES, continued f- Other Commitments and Contingencies The City is comm tied under various leases for building and office space, tracts of land and rights of way, and various equipment. These leases are considered for accounting purposes to be operating leases. Lease expense for the year ended September 30,1992, amounted to approximately $7,379,932. The City expects these leases to be replaced in the ordmary course of business wth similar leases. Future minimum lease payments for these leases should be approximately the same j amount. ; The City does not subsenbe to workers' compensation insurance. The City contnbutes amounts to an expendable trust fund based on an estimate of the cost of claims expected to be incurred each year The amount to be paid out ultimately may be i more or less than the amount accrued at September 30,1992, j The City has entered into certain lease agreements, including the Certificates of Participation, as lessee for financing the ; purchase of equipment utshzed in the General Electric Utility, Water and Wastewater Utiltty, Hospital, and Convention Center funds These lease agreements quahfy as capitalleases for accounting purpeces and, therefore, have been recorded j at the present value of the future minimum lease payments as of the date of their inception, ' The followmg summarizes assets recorded at September 30,1992, under capitallease obligations: Electric Water & Convention General System Wastewater Hospital Center Fixed Fund Fund Fund Fund Assets Total ; Assets i Machinery and equipment: Computer - - -
- 1,057,997 1,057,997 ,
Medical -
- 3,490,347 - - 3,490,347 Other 1,776,892 - - 891,619 - 2,668,511 Building 16,180.834 12,750,000 - - - 28,930,834 17.957,726 12,750,000 3,490,347 891,619 1,057,997 36,147,689 Accumulated Depreciation 3.257,112 1,147,500 2.093.442 63.687 384,726 6,946,467 5 14.700,E 14 11,602,500 1,396,905 827,932 673,271 29,201,222 The following is an analysis of the future minimum lease payments under these capital leases, and Certificates of 4 Participation and the present value of the net minimum lease payments as of September 30,1992- l l
Fiscal Electric Water and Convention General Year Ended System Wastewater Hospital Center Long-Term ; September 30 Fund Fund Fund Fund Debt Total 1993 5 2,576,138 1,400,181 882,407 313,850 129,774 5,302,350 1994 2,279,170 1,396,719 626,797 393,502 118,959 4,815,147 l 1995 2,115,730 1,390.256 174,736 276,401 - 3,957,123 1996 2,116,745 1,405.056 29,123 - - 3,550,924 1997 2,118,545 1,391,231 - - - 3,509,776 Later years 21,168,075 15.294.692 - - - 36,462.767 Total minimum lease payments 32,374,403 22.278,135 1,713.063 983,753 248,733 57,598,087 Less: i Amount representing interest 12,287.275 9,478,135 133,740 92.134 18,438 22,009.722 ) Present value of net minimum lease payments 20.087,128 12,800,000 1,579,323 891,619 230,295 35,588,365 Cunent portion 1,237,386 450,000 793.490 267,486 115,859 2,864,221 Long-term portion 5 18,849,742 12.350,000 785,833 624.133 114,436 32,724,144 ~ 69
l t NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS l September 30,1992 (Continued) . 22 - OTHER POST-EMPLOYMENT BENEFITS in addition to providing pension benefits, the City provided certain other post-employment benefits to its retirees. Other post- i I employment benefits include health insurance for the retiree and the retiree's family and $1,000 of hfe insurance on the
, retiree only.
All retirees who are eligible to receive pension benefits under any of the City's three pension plans are eligible for other post-a employment benefits. Retirees mey 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, unmarried children under age 19 (under age 23 if a full-time student) who are dependent upon the retiree for support, and disabled children regardless of age who are unable to support themselves, and who were covered by the medical plan at the time the disability occurred. Surviving dependents of a deceased retiree may continue medical and dental coverage for 36 months by paying a full premium plus a two-percent administrative fee. The City is under no obligation, statutory or otherwise, to pay any portion of the cost of other post-employment benefits to any retirees Allocation of City funds to pay other post-employment benefits is determined on an annual basis by the City Council as part of the budget process. The City pays a portion of the retiree's health insurance premium and a portion of the retiree's dependents
- health insurance r.emium. The portion paid by the City varies according to age and coverage selection. The percentage of the health inscrance premium paid by the City ranges as follows:
Range of City
% of Contribution Retiree 60% - 100 %
Rettree & Spouse 47% - 70 % , Retiree & Children 49% - 72 % Retiree & Family 46% - 63 % The City pays 100% of the retiree's life insurance premium. In 1992, the City made group dental coverage available to retirees and their eligible dependents The full cost of the dental premium is paid by the retiree. Other post-employment benef ts are expensed and funded on a pay-as-you-go basis. The City recognizes the cost of providing these benefits as a payroll expense / expenditure in an operating fund with a corresponding revenue in the Health Benefits Fund. Payments for medical, dental and life insurance are then shown as an expenditure in the Health Benefits Fund The cost of providing these benefits for 1,402 retirees and 9.282 active employees in 1992 and 1,401 retirees and 9.002 active employees in 1991 is not separable. Total payments to the Health Benefits Fund for retirees and active
- employees were $21.633,698 in 1992 and $18,179.961 in 1991.
23 - SUBSEQUENT EVENTS a - Brackenridge Hospital The City owns and operates Brackenridge Hospital, a full-service health care provider. In an effort to identify organizational structure changes that would allow Brackenridge Hospital to improve its responsiveness to physicians and to maintain its competitive position, the Hospital Advisory Board has recommended the creation of a hospital authority. In January 1993, the City Council approved a plan that would, over the next twelve months, result in the creation of a hospital authonty and a lease agreement, the terms of vAich would result in the City leasing Brackenridge Hospital fa::iltties to the authonty. Over a number of years and culminating in 1986, Brackenridge Hospital borrowed approximately $35 million from the City's investment pool to meet its operating cash needs in 1988, the City Council implemented a long-term repayment plan that recommended the General Fund as a funding source for repayment of the hospita"s debt to the investment pool. The General Fund transferred $700.000, $1.400,000, and $2,100,000 to the hospital fund for repayment of the debt in fiscal years 1989,1990, and 1991, respectively. i l _%
NOTES TO COMBINED FINANCIAL STATEMEf3TS CITY OF AUSTIN. TEXAS September 30,1992 (Continued) . i 23 - SUBSEQUENT EVENTS, continued in 1992, as the result of providing a disproportionate share of services to indigent patients, Brackenridge Hospital received approximately $31 million in funds from the State of Texas Dispro 111 Program. Funds from this program are intended to reimburse hospitals that provide a di5 proportionately high level of services to low-income patients for the cost, or partial cost, of those services. As a result of this reimbursement and for accounting purposes, the hospitars debt to the investment pool has been extmguished as of September 30,1992. Negotiations are currer.tly underway among the City, the Hospital Advisory Board, and other interested parties to resolve issues pertaining to the creation of a hospital authority and the , leasing of Brackenridge Hospita! to the authority. Upon creation of the authonty and completion of the negotiations, the City may record a recetvable from the authonty for advances or debt required to fund the authority. The authority will be responstble for repayment of any such advances or debt from operating revenues. s b - General Obligation Bonds issuance in October 1992, the City issued Public imprevement Bonds, Series 1992, in the amount of $52,490,000. Of the proceeds from the issue. 53,830,000 will be used for flood control improvements, $13,656,000 will be used for street improvements, 3
$20.699,000 will be used for parks and recreation construction projects, $5.252,000 will be used for library improvements,
$1,015.000 will be used for Emergency Medical Services Department construction projects, $2,938,000 will be used for Fire Department construction projects, $2.350,000 will be used for Police Department construction projects, and $2.750,000 will be used for architectural barriers (ADA), asbestos abatement in the General Fund and Health Department improvements at the East Austin Health Clinic. These bonds will be amortized serially on September 1, of each year from 1995 to 2012.
Certain of these bonds are callable beginning September 1,2002. Interest is payable on March 1 and September 1 of each year, commencing March 1,1993. Total interest requirements for these bonds, at rates ranging from 4.25% to 7.25%, are
$44,829,850.
i c-General Obligation Bonds Advance Refunding in February 1993, the City issued $71,600,000 in Public improvement Refunding Bonds, Series 1993, with interest rates rangirg from 2.5% to 5 9%, to advance refund $63,350,000 of outstanding 1985,1986,1988,1989, and 1990B&C Series : bonds (together hereinafter referred to as the " refunded bonds") with interest rates ranging from 6.75% to 12.0%. The net l proceeds were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an l escrow agent to provide for all future debt service payments on the refunded bonds. As a result, the refunded bonds are considered to be legally defeased and the liability for the refunded bonds will be removed from the General Long-Term Debt , Account Group. d - Public Property Finance Contractual Obligations Issuance in October 1992, the City issued Public Property Finance Contractual Obligations, Series 1992, in the amount of $4,195,000. Of the proceeds from the sale, $835,000 will be used by Municipal Court for computer software and a telephone system,
$900,000 will be used for a fleet management information system, $2,305,000 will be used by Solid Waste Services for carts and recycling trucks, $85,000 will be used for the Police Department telephone swrtch, and $70,000 will be used for the l Health Depar' ment telephone system. These contractual obligations will be amortized serially November 1 and May 1, of each year from 1993 to 1999. The contractual obligations are not subject to optional redemption. Interest is payable on May 1 and November 1 of each year, commencing May 1,1993 Total interest requirements for these contractual obligations, at rates ranging from 4.60% to 7.25%, aggregate $943,283.
e - Certificates of Obligation issuance In October 1992, the City issued Certificates of Obligation, Series 1992,in the amount of $5.405,000. Of the proceeds from the sale, $146,000 will be used by the library for fire alarm systems, $2,940,000 will be used by the Solid Waste Services l i g Department for equipment and operating facilities, and $2.305,000 will be used by the Parks and Recreation Department golf c division. These certificates of obtigation will be amortized serially September 1 of each year from 1994 to 2012. Certain of G these obligations are callable beginning September 1,2002. Interest is payable on March 1 and September 1 of each year, commencing March 1,1993. Total interest requirements for these obligations, at rates ranging from 5.25% to 8.25%, ( aggregate $4,204,363. L ! L: e. o f - qq 71
NOTES TO COMBINED FINANCIAL STATEMENTS CITY OF AUSTIN, TEXAS September 30,1992 (Continued) r 23 - SUBSEQUENT EVENTS, continued , f - Action against Houston Lighting & Power Company r On October 7,1992, the Court of Appeals (Fifth District of Texas at Da!!as) issued its opinions overruling all of Austin's , points of error and affirming the trial court's judgment on a 3 - O vote. The City filed a timely motion for rehearing with the Court of Appeals, which was denied on November 18,1992_ The City then filed an application for writ of error seeking review by the Supreme Court of Texas on December 18,1992, and the City continues to believe that its legal arguments will ultimately prevail. g - Fuel Contracts , Effective November 1,1992, the city entered into core gas supply contracts with Enron, Tenngasco, and Mobil. These contracts provide in combination up to 60,000 MMBTUs per day of firm or interruptible gas supply daily through September 30,1993. These contracts, and the earlier contract with UTTCO, can supply gas to the city through the Valero or Lone Star transportation systems. h -Refunding of Revenue Bonds f On February 23,1993, the Crty issued $203,166,245 in Combined Utility Systems Revenue Refunding Bonds, Series 1993. f The bonds were used to refund a total of $196,772,739 of the City's previously issued bonds and to fund issuance costs. , The refunding resulted in a reduction in cash flow requirements to service the debt of $9,038,455. The bonds consisted of l the following: Interest I Principal Maturity Rate Serial Bonds 597,700,000 1993 - 2006 2.65 % - 5.80 % Term Bonds 90,755.000 2013 & 2018 5.25 % - 6.00 % Cap:tal Appreciation Bonds' 14,711,245 2007 - 2010 6.20% - 6.30%* ,
- Approximate yields -
a The total interest requirement on the bonds is $161,301,740. , The net proceeds were used to purchase U S. government secunties, which were deposited in an irrevocable trust with an l escrow agent to provide for all future debt service payments on the refunded bonds. As a result, the refunded bonds are { considered to be legally defeased. i r i i
?
F 72
GeneralFund The General Fund is the general operatin - fund of the City. It is used to account for r financial resources except for those require to be accounted for in another fund. l 4
"[
f>f? 3 s . g i~
< \ 1 e
a
/
f
-= a ,
=
~
//, y
> 9
( ej . r u / u- , We -{t
.e 4*; - \\ (' g, -s /
n - e y e ,
~
e;g G -- by 4'68, ~ ??fr % .__ __ - - - - y_- : >
~C -
GENERAL FUND CITY OF AUSTIN, TEXAS BALANCE SHEET Exhibit B-1 September 30,1992 With comparative totals for September 30,1991 t 1992 1991 ? ASSETS Cash on hand $ 83,847 72,813 Pooled investments and cash 26,580,051 22,824,600 Cash and investments held by trustee - 62,464 Property taxes receivable 4,643,234 4,530,985 Less allowance for uncollectible taxes (1,114,376) (1,087,436) Net taxes receivable 3,528,858 3,443,549 Accounts and other taxes receivable 13,635,753 11,562,663 Less allowance for doubtful accounts (7,626,499) (5,481,210) Net accounts receivable 6,009,254 6,081,453 Due from other funds - 363,864 inventories, at cost 1,548,758 1,735,409 Prepaid items and other assets 14,700 - Total assets 37,765,468 34,584,152 LIABILITIES AND FUND BALANCES Uabilities: Accounts payable 3,439,748 2,890,360 Accrued payroll 4,656,102 3,779,519 Accrued comper sated absences 1,559,724 1,408,847 Deferred revenue 3,393,020 3,095,048 Performance, escrow and other deposits 710,976 286,663 Totalliabilities 13,759,570 11,460,437 Fund balances: Reserved for encumbrances 5,937,202 2,846,203 Reserved for inventories and prepaid items 1,563,458 1,735,409 Reserved for capital acquisition - 62,464 Unreserved: Designated for emergency reserve 10,218,538 10,148,430 , Designated for contingency reserve 1,303,176 1,649,623 Undesignated 4,983,524 6,681,586 Total fund balances 24,005,898 23,123,715 Totalliabilities and fund balances S 37,765,468 34,584,152
~
u I w ,
"' s w {
u 73 l
GENERAL FUND CITY OF AUSTIN, TEXAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES Exhibit B-2 IN FUND BALANCES - BUDGET AND ACTUAL-BUDGET BASIS Year ended September 30,1992 With comparative totals for year ended September 30,1991 1992 1991 Actual- Variance- Actual-Adjustments Budget Favorable Dudget Actual (1) Basis Budget (Unfavorable) Basis REVENUES Taxes 5 115.296,632 - 115.296.632 116,317,747 (1,021,115) 109,502,768 Franchise fees 10,847,283 - 10,847,283 11,632,475 (785,192) 8,639,848 Fmes, for1ertures and penalties 7,469,760 - 7,469,760 7,632,960 (163,200) 7,140,162 Licenses, permrts and inspectons 7,891,542 - 7,891,542 5,949,833 1,941,709 6,488,418 Charges for services / goods 8,045,410 - 8,045,410 8.052,300 (6,898) 7,626,280 Interest and other 7,753,145 (3,047,459) 4,705.686 6,149,786 (1,444,100) 8,086,034 Total revenues 157,303,772 (3,047,459) 154,256,313 155,735,109 (1,478,796) 147,481,510 EXPENDITURE S Administration 7,159,457 (52,511) 7,106,948 7.114,681 7,735 6,304,689 Supportwo services 8,992,090 305,414 9,297,504 9,3S5,031 67,527 10,515,142 Urban growth management 8,079,538 24,336 8,103,874 8,351,668 247,794 7,907,158 Fiscal management 7,381,795 56,122 7,437,917 7,582,243 144,326 7,288,364 Pubhc safety 106,094,779 (458,805) 105,635,974 106.667,699 1,031,725 98,841,755 Pubbe services and utilrties 16.639,362 489,744 17.129,106 17,417,141 288,035 12,141,725 Pubhc health: Physician stipend 4,732,950 - 4,732,950 5,1 7,490 444,540 3,950,000 Medical Assrstance Program-patient services payments to Brack enndge Hospital 6,644.000 - 6,644,000 7.110,000 466,000 7,200,000 Other pubbe hearth 23.115.129 1,136,354 24,251,483 24,579,904 328,421 21,571,577 Pubhc recreation and culture 24,987,332 186,609 25,173.941 25,234,458 60,517 23,428,957 Social services management 5,707,872 661,918 6,369,790 6.413,132 43,342 5,403,027 Nondepartmental eapenditures (2) 892,068 (892,068) ~ 584,499 584,499 - Total e xpenditures 220,426,372 1,457,113 221,883,485 225,597,946 3,714,461 204,552,394 Excess (defec.ency) of revenues over expenditures (63,122.600) (4,504,572) (67,627,172) (69,862,837) 2,235,665 (57,070,884) OTHER FINANCING SOURCES (USES) Operating transfers m 75.384,966 3.047,459 78,432,425 78,243,504 188,921 69,763,052 Operating transfers out (11,380,183) (892.068) g12,272,251) (15,272,251) 3,000,000 (17.023,401) Total other fmancing sources (uses) 64,004.783 2.155,391 66,160,174 62,971,253 3,188,921 52,739,651 Escess (deficiency) of revenues and other sources over expenditures and other ur,es 882,183 (2,349,181) (1,466,998) (6.891,584) 5,424,586 (4,331,233) Fund batances at beginning of year 23,123,715 3,030,606 26,154,321 26,154,321 - 30,773.036 Residual equity transfers m (out): In'arnal Service Funds: Fleet Maintenance Fund - - - - - (287,482) Fund balances at end of year 5 24.005.898 681,425 24,687,323 19.262,737 5,424,586 26,154,321 (1) includes adpstment for 1992 encumbrances, payments against pnor year encumbrances, accrued payro!!, compensated absences, and transfers. (2) Represents amounts budgeted as operating tranzlers to the Fleet Maintenance Fund in 1992. 74 -
)
GENERAL FUND CITY OF AUSTIN, TEXAS STATEMENT OF REVENUES - Exhibit B ! BUDGET AND ACTUAL-BUDGET BASIS Year ended September 30,1992 ' With comparative totals for year ended September 50,1991 1992 1991 Actual- Variance- Actual- ! Adjustments Budget Favorable Budget Actual (1) Basis Budget (Unfavorable) Basis ; Tazes Property taxes: . ; Current S 54 042,478 - 54,042,478 54.228,643 (186,165) 49,875,499 , Dehnquent 751,647 - 751,647 1,055,553 (303,906) 1,175,429 Penaltf andinterest 449,717 - 449,717 508.151 (58,434) 566,304 Sanes taves 58,255,348 - 58,255,348 58,856,400 (601,052) 55,400,626 > Other taxes 1,797,442 - 1,797,442 1,669,000 128,442 2,484,908 2 Total taxes 115.296,632 - 115,296.632 116,317,747 (1,021.115) 109,fc2,768 Franchise fees 10,847,283 - 10,847,283 11,632,475 (785,192) 8,o39,848 Fines, forfeitures and penalties 9,ibrary 6nes 264,049 - 264,049 205,000 59,049 232,699 {' Trathc fines 4,022,521 - 4,022,521 3,945,963 76,558 3,297.399 Parking violations 1,423,788 - 1,423,788 1,561,424 (137,636) 1,503,688 CHher 1,759,402 - 1,759,402 1,920,573 (161,171) 2,106,376 Total fines. forfertures and pena'tres 7,469,760 - 7.469,760 7,632,960 (163,200) 7,140,162 Licenses, permits and inspections Parking meters 1,266,142 - 1,268.142 1,200,000 66.142 1,261,808 Alarm permits 276,171 - 276,171 211,000 65.171 ~ 177,870 Pubhc health 347,585 - 347,585 390,818 (43,233) 316,723 Development 2,047,753 - 2,047,753 949,450 1,098,303 1,193.475 Building safety 3,655,263 - 3,655.263 2,956,800 698,863 3,197,052 Beer and wine permds 151,821 - 151,821 153,600 (1,779) 166,427 Other 146,807 - 146,807 88,565 58.242 173,063 l Total beenses, permits and inspections 7,891,542 - 7,891,542 5,949,833 1,941,709 6,486,418 ; Charges for services / goods Recreation and cutture 2.243,537 - 2,243,537 2,435,644 (192,107) 2,233,645 Pubbe health 2,079,891 - 2,079,891 2,021,6 0 58,261 1,927,461-Emergency medent services 2,408.100 - 2,408.100 2,153,640 254.460 2,092,074 General government 371,415 - 371,415 441,394' (69.979) 322,850 Indrect cost recovery 942,467 - 942,467 1,000.000 (57,533) 1,050,250 Total charges for services / goods 8,045,410 - 8,045,410 8,052.308 (6.898) 7,626,280
- Interest and other interest 3,596,071 - 3,596,071 4,659,063 (1,062,992) 5,020,651 Rentalincome 634,772 - 634,772 *,61,285
, 73.487 578,469 Sale of property 422,350 - 422,350 303,000 119,350 401,953 , - Murucipal utdity district - - - - - 1,151,857 ,
Other 3,099,9t.2 (3,047,459) 52,493 626,438 (573,945) 933,104
- Totalinterest ami other 7,753.145 (3,047,459) 4,705.686 6,149,786 (1,444,100) 8,086,034 Totai revenues $ 157,303,772 (3,047,459) 154,256,313 155,735,109 (1,478,796) 147,481,510 l
3E (1) includes revenues trom certain enterprise funds for general obhgation deb 1 budgeted as an operating transfer, i i i h 0 Y 75
t GENERAL FUND CITY OF AUSTIN, TEXAS i STATEMENT OF EXPENDITURES - Exhibit B-4 BUDGET AND ACTUAL-BUDGET BASIS Year ended September 30,1992 With comparative totals for year ended September 30,1991 t 1992 1991 Actual- Variance- Actual- f Adjustments Budget Favorable Budget Actual (1) Basis Budget (Unfavorable) Basia Administration .7 Mayor and City Council: Salarsea and fringe benefits 5 605,265 (5,981) 599,284 589,090 (10,194) 542,294 Contrac1ual services 45,274 - 45,274 54,620 9,346 70,076 , Commodrhes 34,869 - 34,869 32,160 (2.709) 44,624 Expense refunds (4,078) - (4,078) - 4.078 (30,000) , Capital outlay $19 - $19 - (519) 1,686 681.849 (5,981) 675,868 675,870 2 628,680 Crty Manager. Salanes and innge benefrts 1,299,670 (36,673) 1,262,997 1,281,320 18,323 896,127 Contractual services 166,643 682 167,325 93,341 (73,984) 78,590 Commodtes 75,558 718 76,278 34,740 (41,536) 28,962 Expense refunds (365,257) - (365,257) (227.125) 138,132 (220.886) Capital outlay 38,591 4,000 42,591 1,700 (40,891) 1,929 1,215,205 (31,273) 1,183,932 1,183,976 44 784,722 ' Municipal Court Salanes andinnge benefits 3,462,281 (22,604) 3,439,677 3,596,699 157,022 3,233,926 Contractual services 484,411 (1,443) 482,968 523,416 40,448 445,465 Commedtes 125,613 18,347 143.960 49,388 (94,572) 81,041 Expense refunds (4,581) - (4,581) (10,000) (5,419) (3,531) Capital outlay 97,472 - 97,472 - (97,472) 1,028 4,165,196 (5,700) 4,159,496 4,159,503 7 3,757,929 City Clerk: Salaries ano fnnge benefas 842,672 (10.435) 832.237 852,396 20,159 764,914 Contractual services 258,006 878 258.884 228,961 (29,923) 326,686 Commodtes 98,174 - 98,174 10,825 (87,349) 41,758 Expense refunds - (105,846) - 105,846 - - (105.846) Capital outlay 4,201 - 4,201 3,150 (1,051) - 1,097,207 (9.557) 1.087,650 1,095,332 7,682 1,133,358 Total administration $ 7,159,457 ' (52,511) 7,106,946 7,114,681 7,735 6,304,689 (1) includes adpstments for 1992 encumbrances, payments e. gainst pnor year encumbrances, accrued payroll, arid compensated absences. (continued) i j Wa
. y
GENERAL FUND CITY OF AUSTIN, TEXAS STATEMENT OF EXPENDITURES - Exhibit B-4 BUDGET AND ACTUAL-BUDGET BASIS (Continued) Year ended September 30,1992 With Comparative totals for year ended September 30,1991
!992 1991 A ctual- Variance- Actual-Adjustments Budget Favorable Budget Actual (t) Basis Budget (Unfavorable) Basis Supportive services City Attomey' Salanes and trnge benefrts $ 4,923,435 39.153 4,962,588 5,122,224 159,636 4.769,750 740,137 (48,819) 691,318 703,680 12,362 1,220,741 Contractual services Commodities 113.584 1,740 115.324 122,408 7,084 117,033 Indirec1 cost 64,532 - 64,532 - (64,532) -
Expense refunds (3,198,653) - (3,198,653) (3,339,749) (141,096) (2,835,108) Capaat outlay 21,489 17,367 38,856 11,000 (27,856) 25,454 2,664,524 9,441 2,673,965 2,619,563 (54,402) 3.297,870 Human Resources: Salariea and fnnge benefits 3,124,146 23,718 3,147,864 3.111,362 (36,502) 2,752,969 Contractual services 1,127,582 49,513 1.177,095 1,078,050 (99,045) 1,061,571 Commodrties 206,653 23,921 230,574 83,732 (146,842) 198,366 Expense refunds (1,645,498) - (1,645,498) (1,287,851) 357,647 (1,309,030) Caprtal outlay 28,516 (1,738) 26,778 - (26,778) 13,302 2,841,399 95.414 2,936,813 2,985,293 48,480 2,717,178 Communications: (2) Salarres and trmge benefits - - - - - 476,672 Contractuat services - - ~ - - 105,010 Commodrbes - - - - - 28,941 Expense refunds - - - - - (825) Capttat outlay 66,724 (66,724) - - - 95,600 66,724 (66,724) - - - 705,598 information Systems-Satartes and fringe benefits 4,450,137 (315) 4,449,822 5,104,584 654,762 3.847.730 Convactual services 2,095.245 299,386 2,394,631 3,025.387 630,756 1,909,237 Commodrhes 470,088 9,975 480.063 525,818 45,755 1,521,318 Expense refunds (5,130,310) - (5,130,310) (5,252,614) (122,304) (3,800,203) Capital outlay 1,534,283 (41,763) 1,492,520 357,000 (1,135,520) 316,414 3,419.443 267,283 3 686,726 3,760,175 73,449 3,794,49S Total supportive services S 8,992,090 305.414 9.297.504 9,365,031 67,527 10,515.142 (2) Reported 6n City Manager in 1992. (continued) W 4,= d a Y
~
77
i GENERAL FUND CITY OF AUSTIN, TEXAS : STATEMENT OF EXPENDITURES - Exhibit B-4 BUDGET AND ACTUAL-BUDGET BASIS (Continued) . Year ended September 30,1992 ; With Comparative totals for year ended September 30,1991 1992 1991 ; Actual- Variance- Actual-Adjustments Dudget Favorable - Budget Actual (1) Basis Budget (Unfavorable) Basis Urban growth management Planning: , Salaries and innge benefits 5 7,669,944 (12,624) 7,657,320 8,066,972 409,652 - 7,186.627 Contractual services 899,067 32,335 931,402 899,266 (32,136) 940,725 Commodities 199,704 (93) 199,611 191.854 (7.757) 307,384 - 94,065 i Indirect cost - - - - - Expense refunds (792.544 - (792,542) (807.277) (14,735) (710,222) l Capital outtay 103,365 4,718 108,083 853 (107,230) 88,579 Total urban growth management 8,079,538 24,336 8,103.874 8,351,668 247,794 7,907,158 Fiscal management Financial Services-Excluding Utdtry Customer Services: Salanes and fnnge benefits 7,007.984 (39,113) 6,968,871' 7,329,165 360,294 5,279,586 [ Contractual services 2,807,255 74,859 2.882,114 2,890,907 8,793 2,359,133 165,294 162,062 I Commodities 174,031 7,830 181,861 (16,567) Expense refunds (3,479,002) - (3,479,002) (3,693,628) (214,626) (1,407,683) Caprint out:ay 89,700 32,016 121,716 133,265 11,549 135,762 6,%99,968 75,592 6,675.560 6,825,003 149,443 6,528,860 Fmancial Services-Utaty Customer Services: Salanes and innge benetts 8,471,943 - 8,471.943 8,764,149 292,206 7,693.727 Contractual services 7,747,423 25,950 7,773,383 7,647,004 (126,379) 6,605,613 Commodrhes 337,049 28.821 365,870 356.480 (9,390) 352,606 Expense refunds (17,002.193) 265,142 (16,737,051) (17,520 #14) (782.963) (15.042 A25) { Caprtal outtay 445,778 (319,923) 125,855 752,381 626.526 390,079 r
- - +
i Office of the City Auditor, 3 Salanes and tunge benefits 1,094,692 (19,471) 1,075.221 1,075,056 (165) 1,083,834 ! Contractual services 99,231 99,232 94,893 (4,339) 89,133 1 f Commodities 20,195 - 20,195 17,873 (2,322) 20,203
- Expense refunds (439.334 -
(439,332) (439,332) - (430,804) ; Capital outlay 7,041 - 7,041 8.750 1,709 6,218 i 781,827 (19,470) 762,357 757,240 (5,117) 759,504 Total fiscal management 5 7,381. 95 56,122 7,437,917 7,582,243 144,326 7,288,364 i (continued) j f h i
~
78 ;
CITY OF AUSTIN, TEXAS GENERAL FUND STATEMENT OF EXPENDITURES - Exhibit B-4 BUDGET AND ACTUAL-BUDGET BASIS (Continued) Year ended September 30,1992 With Comparative totals for year ended September 30,1991 1992 1991 f Actual- Variance- Actual-Adjustments Budget Favorable , Budget + Actual (1) Dasis Budget (Unfavorable) Basis r Public safety Pobce:
$ 51,220,656 (327,586) 50,893,070 50,595,342 (297,728) 47.114,728 Salares and fnnge benefds ,
6,600,064 36,692 6,636,756 7,119,662 482.906 6,455,101 . Contractual services 1,177.290 37,044 1,214,334 1,145,543 (68,791) 1.859,026 Commodme s (913,903) - (913,903) (802,554) 111,349 (1,628,910) ; Dpense refunds ' 1,050,643 (12,574) 1,038,089 1,183,113 145,044 358,371 Caprtal outlay 59,134,750 (266,424) o8,868,326 59,241,106 372,780 54,158,316 r Fue: 37,945,366 (335,369) 37,609,997 38,413,962 803,965 35,648,692 Salanes and fnnge benefits 2,560,850 145,472 2,706.322 2,663,212 (43,110) - 2,188,506 Contractuu services 936,078 47,709 983,787 821,154 (162,633) 1,662,355 Commodrties 20,768 - 20,768 24,883 4,115 29,446 Indrect cost (1,594,754) - (1,594,754) (1,545.647) 49,107 (1,420,211) 4 Expense refunds 132,995 (9,585) 123,410 123,448 38 98,328 , Capital outay 40,001,303 (151,773) 39,849,530 40,501,012 651,482 38,207.116 1 Emergency Medical Services: (3) 5,725,566 (54,217) 5,671,349 5,601,084 (70,265) 5,330,191 Salaries and fringe benefits 950 968 16,585 967,553 1,045,575 78,022 871,524 Contractual services 247,667 8,273 255,940 276,338 20,398 254,660 Commodtbes
- - - - 62 Indrect cost -
[16,429) - (16,429) (35,000) (18,571) (48,188)- Expense refunds i 50,954 39,705 37,564 (2,121) 68,074 Capital oucay (11.249) 6,958,728 (40,608) 6,918,118 6,925,581 7,463 6,476,323' 106,094,779 (458,805) 105,635,974 106,667,699 1,031,725 98,841,755 Total public safety Public services and utilities Transportabon and Pubhc Services-17.243,624 (84,137) 17,159,487 17,134,135 (25,352) 14,461.412 Salanes and tringe benefds 6.559,381 392,547 6,951,928 5.785.475 (1,166.453) 4,119.027 Contractual services 2,766,238 91,879 2.858,117 2,446,683 (411,434) 2.171,976 Commodrbes 4,627,376 4,627,181 4,704,231 77,050 2,189,752 Indirect cost (195) (19 227,762) 795 (19,226,967) (17,416,663) 1,810,304 (15.279,437) l Expense refunds 284,639 88,855 373,494 377,420 3,926 92,710 l Capital oucay 4.385,866 - 4,385,866 4,385,860 (6) 4.386,285 Street $gt112ng 16,639,362 489,744 17,129.106 17,417,141 288,035 12,141,725 Total public serviceo and utilities 5 (3) Reported in pubbe health in prior yeers, (cormnued)
~
79
f
' GENERAL FUND CITY OF AUSTIN, TEXAS STATEMENT OF EXPENDITURES - Exhibit B-4 BUDGET AND ACTUAL-BUDGET BASIS (Continued) ,
Year ended September 30,1992 With Comparative totals for year ended September 30,1991 , 1992 1991 Actual- Variance- Actual-Adpstments Budget Favorable Budget Actual (1) Basis Budget (Unfavorable) Basis Public health Physician stipend $ 4,732,950 - 4.732,950 5,177,490 444,540 3,950,000 Medical Assistance Program-patient { services payments to Brackenridge Hosprtal 6.644,000 - 6,644,000 7.110,000 466,000 7,200,000 Other pubhc hea'th: Pubhc hea'th and Medical Assistance Program excluding patient services: Salanes and fringe benefits 18,691,513 (47,621) 18,643.892 17,668.532 @ 75,360) 15,928,360 Contractual services 6.110,572 649,638 6,760,210 6,476,069 (284,141) 6,221,823 Commodities 2,523.620 183,369 2,706.989 2,553,790 (153,199) 2,105.128 Indirect cost - - - - - 15,810 Expense retunds (4,468,232) - (4,468,232) (2,804,848) 1,663,384 (2,754,901) Capital out ay 257,656 350,968 608,624 686,361 77,737 55,357 Subtotal other pubhc heatth 23.115.129 1,136,354 24,251,483 24,579,904 328,421 21,571,577 l Total public health 34.492,079 1,136,354 35,628,433 36,867,394 1,238,961 32,721,577 Public recreation and culture Parks and Recreatson: Salaries and innge benefits 14.027,722 (99.018) 13.928,704 13,412,107 (516,597) 13.392,781 Contractual services 4,485,701 161,106 4,646,807 4,184,659 (462,148) 4,427,771
- Commodtes 1.078,358 26,146 1,104.504 1,150,496 45,992 1,315,022 indireet cost 100.986 - 100,986 147,309 46,323 96,765 Expense refunds (2,742,169) -
(2,742,169) (1,767,777) 974,392 (3,128,049) , Cap:tal outlay 166,598 47,275 213,873 186.423 (27,450) 36,230 17.117,196 135,509 17,252,705 17.313.217 60,512 16.140,520 Libranes. Salanes and innge benefits 6,339,958 4,833 6.344,791 6.122,648 (222,143) 5.882,938-Contractual services 1,277,917 4,940 1,282.857 1,259,785 (23,072) 1,144,114 Commod# ties 868,937 13,905 882,842 661.640 (21,202) 1,336,879 Indirect cost 15.073 - 15,073 - (15,073) 99,259 j Expense refunds (637,358) - (637,358) (552,245) 85.113 (1,192,488) Capital outlay 5,609 27,422 '33,031 229,413 196,382 17,735 t 7,870,136 51,100 7,921,236 7,921,241 5 7,268,437 Total public recreation and culture 24,987,332 186.609 25,173,941 25,234,458 60,517 23,428,957 , Social services management 5,707,872 661,918 6,369,790 6,413,132 43,342 5.403,027 Nondepartmental expenditure s (4) 892,068 (892,068) - 584,499 584,499 - Total expenditures $ 220,426,372 1,457,113 221,883.485 225,597,948 3,714,461 204,552,394 (4) Represents amounts budgeted as operating transfers to the Fleet Maintenance Fund. (continued) , 80 _
i GENERAL FUND - CITY OF AUSTIN, TEXAS STATEMENT OF EXPENDITURES - Exhibit B-4 ! BUDGET AND ACTUAL-BUDGET BASIS (Continued) Year ended September 30,1992 With comparative totals for year ended September 30,1991 1992 192? Actual- Variance- Actual-Adpastments Budget Favorable Budget Actual (1) Basis Budget {Untavorable) ' Basis General Fund expenditures by cost category Satanes $ 185,674,631 (1,027,460) 184,647,171 185,076,678 429,507 168,593,531 , Contractuals 48,645,254 1,814,372 50,459,828 50,414,448 (45,178) 45,184,233 - Commodttees 11,116,657 470,763 11,587,420 10.489,736 {1,097,684) 13,256,738 Indirect cost 4,828,735 (195) 4,828,540 4,876,423 47,883 2,525,159 Expense refunds (44,765,706) 795 (44,764,911) (39,982,310) 4,782,601 (36,209,556) Capital outta y 3,940,995 428,988 4,369,983 3,339,480 (1,030,503) 1,412.977 Street lighting 4,385,866 - 4,385,866 4,385,8(O (6) 4,386,285 9 Social servicea management 5,707,872 661,918 6,369,790 6,413,132 43,342 5,403,027 Nondepartmental expenditores (5) 892,068 (892,068) - 584,499 584,499 - Total expenditures $ 220,426,372 1.457,113 221,883,485 225,597,946 3,714,461 204,5",2,394 (5) Flepresents amounts budgeted as operating transfers to the Fleet Maintenance Fund. 1 i t i l 6y w r l
. 1 81
L f GENERAL FUND CITY OF AUSTIN, TEXAS i Exhibit B-5 STATEMENT OF TRANSFERS - BUDGET AND ACTUAL-BUDGET BASIS Year ended September 30,1992 With comparative totals for year ended Septernber 30,1991 : 1992 1991 Actual- Variance- Actual- . Adjustments Budget Favorable Budget j
~
Actual (1) Basis Budget (Unfavorable). Basis Operating transfers in i Special revenue funds: Leveraged Loan Pool $ 50,000 - 50,000 50,000 - 141,000 ) Cable W - - - - - 100,600 Economic Devek:pment - - - - - 39,000 i Environmental and Conservation ! Services 50,000 - 50,000 50,000 - - Enterprise funds: Utihty 73,237,718 - 73,237,718 73,237,718 - 63.054,576 Hospital - 2,772,731 2,772,731 2,772,731 - 3,837,046 t Sohd Waste 498,000 72,164 570,164 581,243 (11,079) 521,379 ' Golf 69,467 - 69,467 69,467 - 65,140 Tennis 18,248 - 18,248 18,248 - 22,962 Airport 519,863 202,564 722,427 722,427 - 569.288 i Conventon Center 288,178 - 288,178 288,178 - 256,354 ' Drainage 200,000 - 200,000 - 200,000 200,000 Internal service funds: i Fleet Maintenance 453,492 - 453.492 453,492 - 695,454 Trust and agency funds: Liabihty Reserve - - - - - 260,2S3 Total operating transfers in 75,384,966 3,047,459 78,432.425 78,243,504 188,921 69,763,052 ; Opeiating transfers out 1 Special revenue funds: Voluntary Utihty Assistance 160,000 - 160,000 160,000 - 150,000 Caprtal project funds 500,000 - 500,000 500,000 - 500,000 ; Enterpnse funds: - Hospital 5,600,000 - 5,600,000 8,400,000 2,800,000 8,024,000 ; Sohd Waste 486,074 - 486,074 486,074 - 1,017,999 Transportation - - - - - 10,000 , Internal service funds: } Fleet Maintenance - 892,068 892,068 892,068 - 4,941,266 ; Trust and agency fundr , Liabihty Reserve 1,176,319 - 1,176,319 1,176,319 - - Workers' Compensation 3.457,790 - 3,457,790 3,657,75X) 200,000 2,370,136 Total operating transfers out 11,380,183 892,068 12,272,251 15,272,251 3,000,000 17.023,401 Net transfers $ 64,004,783 2,155,391 66,160,174 62,971,253 3,188,921 52,739,651 , (1) includes adjustments to actual transfers required for adjusted budget basis presentation. 1 i 4 82
t r . t SpecialRevenue Funds i i l Special Revenue Funds are used to account ; for the proceeds of specific revenue sources ; (other than special assesstnents, expendable ; trusts or major capital projects) that are legally ' t restricted to expenditures for specific pur- , poses. included in the Special Revenue Funds ' are: Federal Grants Funds; State Grants Funds; ! Other Special Revenue Grants Funds; Other Special Revenue Funds - See next e page for descriptions of the individual j funds; + L c i J
\
t s
/ I E
y e j/t y . a i s
-f 4
[ I u
. /
% / %[\ ;
\\ / +
& . " 9.p
{ - j $ 1" N 'g+ [
*~ ~ ~ ~
y - - - ~ -
- -[f,r_;' , y%(f g .1,:
~
f . _-__=-
e f Othsr Specist Revenue Funds Austin IndustrialDevelopmsnt Fund (AIDC)- Accounts for tha & administrative costs related to the Austin industrial Development Housing Assistance Fund - Proceeds from residual equity Corporation. bonds issued by the Austin Housing Finance Corporation to be 6 ' used for financing residential ownership and development and Subdivision Participation Fund - Escrow account for funds g- ' providing housing. received from contractors for construction and installation of streets, sidewalks, drainage facilities, etc. ( Leveraged Loan PooIProgram Fund- Used to leverage private , Police Seizerf Money Fund- Accounts for the redistribution of W capital and state or federal resources to stimulate business investments. proceeds generated by police enforcement activities. ( RMD loan Fund- Accounts for energy loans to customers. Railroad Right of Way- Accounts for the City's management of 0 the Austin and Northwestern Railroad right of way. g Brown & Root Conservation Fund- Monies contributud by the Brown & Root sett ement and used f or energyloans and rebates / Aviation Asset Forfeiture Fund- Accounts 1or the redistribution f incentives to customers. of proceeds generated by airport police enforcement activities. .- Cable TVFund. Payments from the Austin Cablevision Co n- Friends of East Austin Youth - Accounts for donations from the .' pany and disbursement to Austin Access Television. Friends of East Austin Youth Golf Tournament to fund programs . > benefitting the youth of East Austin. ' RMD Conservation Fund- Monies contributed by the Electric Fund to be used for energy loans and rebates / incentives to Library Literacy Program- Accounts for fundraising efforts to customers. help fund the City's Workplace Literacy Program. Child Safety Fund- Accounts f or certain fines and f ees used to HydromulchfErosion Control Fund - Escrow funds received provide school crossing guards at Crty schools. from contractors for hydromulch and erosion control. PARD Cutural Projects Fund - Records activities for cultural Environmental Conservation Services Fund - Accounts for project purposes. energy and water conservation services and environmental protection activities; funding provided by transfers from Gen-Economic Development Fund- Used f or economic development eral. Electric, Water and Wastewater arid other Funds. programs. FEMA Flood Disaster- Accounts for costs related to repairs for Austin Housing Finance Fund (AHFC)- Accounts for adminis- various damage done by the Christmas flood of 1991 to City trative costs related to the Austin Housing Finance Corporation. property. Austin Housing Finance (Travis County) Fund - Accounts for Hotel-Motel Occupancy Tax Fund- Accounts for hotelfmotel costs related to Austin Housing services provided for Travis occupancy tax revenues and transfers of these revenues to County. participating funds. - Voluntary Utility Assistance Fund- Contributions for the benefit of indigent utihty customers. d ti
I I i i 1
'I i
t i I s l
/
\
/
} l '8 ,
N \ ,
/ :.
J' . l ha -4 1 D 6 M-1 h 1 b {' . w w 83
- p. ,
CITY OF AUSTIN, TEXAS SPECi!-t REVENUE FUNDS COMDINING DALANCE SHEET Exhibit C-1 September 30,1992 With comparative totals for Septg ur 30,1991 Other Other Special Special Federal State Revenue Revenue Totals Grants Grants Grants Funds 1992 1991 ASSETS
$ 97,748 231,407 94,075 27,818,498 28,241,728 30,069,385 Pooledinvestments and cash investments, at cost - - - 6,334,239 6,334,239 7,684,333 Cash held by trustee - - - 784,011 784,01 ~ 1,336,000 Receivable from other govemments 3,309,279 553,462 1,639 - 3,864,38u 2,637,863 762,998 - - 2,872,687 3,635,685 3,598,864 OthM assets 4,170,025 784,869 9',714 d 37,809,435 42,860,043 45,326,445 Total assets LIABluTIES AND FUND BALANCES Uabilities:
642,933 32,843 515 1,694,677 2,370,968 631,487 g Accounts pa/able 543,379 3,878,743 2 906,364 Advanced poolod investments and cash 2.815,535 518,190 1,639 711,557 233,836 93,560 23,347,844 24,386,797 24,140,649 Deposits and other liabilities ~
~
4,170,025 784,869 95.714 25,585,900 30,636,508 27,678,500 Totalliabilities Fund balances:
- - - 470,327 470,327 1,077,926 R served for encumbrances 11,753,208 11,753,208 16,570,019 Unreserved, designated for future use - - -
- - 12.223,535 12,223,535 17,647,945 Total fund balances 4,170,025 784,869 95,714 37,809,435 42,860,043 45,326,445 Totalliabilities and fund balances $
l l f
- . ~ . - -- _.. .- _ - . . _ . _ . _ - , _ _ _ , . . _ . . _ . , _ - _ , _ _
I t . SPECIAL REVENUE FUNDS CITY OF AUSTIN, TEXAS - COMBINING STATEMENT OF REVENUES, EXPENDITURES Exhibit C-2 AND CHANGES IN FUND DALANCES Year ended September 30, 'GE With comparative totals for ) *srunded September 30,1991 Other Other Special Special Federal State Revenue Revenue Totals Grants Grants Grants Funds 1992 1991 REVENUES Intergovemmental: Grants $ 16,473,496 1,776,783 78,308 - 18,328,587 10,491,452 Other; interest and other - - 12,672,619 12,672,619 10,981,714 Total revenues 16,473,496 ,,776,783 78,308 12,672,619 31,001,206 21,473,166 EXPENDITURES Administration - - - 13,272,830 13,272,830 10,189,477 Special projects 16,473,496 1,776,783 78,308 - 18,323,587 10,491,452 g Total expenditures 16,473,496 1,776,783 78,308 13,272,830 31,601,417 20,680 929 Excess (deficiency) of revenues over expenditures - - - (600,211) (600,211) 792,237 OTV 5 % ,r ... ; SOURCES (USES) C;. ora. - s&,s in - - - 3,545,258 3,545,258 5,183,885 Operating transfers out - - - (10,854,28')) (10,854,289) (14.348,186) Cont.*ibuton itom ut!!it'/ - - - 2,484,832 2,484,832 4,102,215 Total other inancing sources (uses) - - - (4,824,199) (4,824,199) (5,062,086) Excess (&ficiency) of revenues and other sources over expenditures and other uses - - - (5,424,410) (5,424,410) (4,269,849) Fund brJances at beginning of year - - - 17,647,945 17,647,945 26,780,269 Res! dual equity transfer out - - - - - (4,862;475) Fund balances at end of year $ - - - 12,223,535 12,223,535 17,647,945 -r _ _ _ _ _ _ _ _ _ _ . _ _ _ _ __________._____-m_ _ _ _ . _ - . . . . . . . . -- . . . , - .. .y, , ,. . -..,,,, . - , , . - - , ,,;.._,.
m. 6 i e i SPECIAL REVENUE FUNDS " COMBINING BALANCE SHEET - ALL SPECIAL REVENUE GRANTS September 30,1992 l Assets Receivables , Pooled from CFDA Fund 'nvestments Other Other ' Total [ Number Number and Cash Governments Assets Assets ' FEDERAL GRANTS , I U S. DEPARTMENT OF AGRICULTURE Texas Health Department: Women / Infants / Children 90-91 10.557 177 $ - - - Women / Infants / Children 91-92 10.557 174 - 203,509 - 203,509 WIC-Beeastfeeding Peer Counseling 10 557 152 - - - - WIC-P per Counseling 10557 229 - 9.423 - 9.423
- 212,932 - 212,932 Texas De partment of Human Services:
Summe. Food Program 10 559 132 - - - - Summer Food Program 10.559 279 - 40.631 - 40,631
- 40,631 - 40,631 Total U.S. Department of Agrcu!ture - 253,563 - 253,563 j U.S. DEPARTMENT OF EDUCATION Texas State Library:
Cent al Tx Library Sys 473.3 84.035 608 - 4,734 - 4.734 Central Tx Library Sys 427.3 84.035 166 - - - - Central Tx Library Sys 449.3 84.035 234 - 69.553 - 69,553 . Interlibrary Loan 428 2 B4.035 191 - - - interlibrary Loan 450.3 64 035 235 - 61,779 - 61,779 - Inte. library Loan 474.2 64.035 622 - 12,09S - 12,098 LSCA / Title 1478.4 84.035 624 - - - - , LSCATTitle 1436 4 64.035 194 - - - - LSCA /Murls 455.4 84.035 243 - 11,248 - 11.248 Service To Disadvantaged 434.2 84.035 142 - - - - Service To Dtsadvantaged 457.2 84.035 244 - 14.248 - 14,248 Service To Disadvantaged 480.1 84.035 625 - - - - TotalU.S Department of Education - 173,660 - 173.660 . EQ'JAL EMPLOYMENT OPPORTUNITY COMMISSION Equa! Employment Opportunity 86 30.002 153 - - - - Equal Employment Opportunity 91 30.002 179 - - - Equal Employment Opportunity 92 30.002 192 - 71,077 - 1,077 - Total Equal Employment Opportunity - 71.077 - 71.077 i U.S. DEPARTMENT OF JUSTICE i Strategic Intervention High Risk Yth 16 573 159 - 731 - 731 ; Texas Govemor's Office CriminalJustee Drvision: Property Crime Sting Operaton 16.573 162 - - - Vetim Assistance Program /2 92.006 250 - 23,390 - 23,390 Anti-drug Abuse Tesk Force /2 16.579 247 - - - - Anti-drug Abuse Task Force /4 16.574 173 - - - - Ant,-drug Abuse Task Force /5 16.574 124 - 77.117 - 77.117 l 100,507 - 100,507 TetalU.S.Departmentof Justee $ - 101.23e - 101.238 86
CITY OF AUSTIN, TEXAS Exhibit C-3 Liabilities and Fund Balances Advanced Total Pooled Liabilities Accounts investments Other Total Fund and Fund Payable and Cash Liabilities Liabilities Balances Balances 6.562 196,947 - 203,509 - 203,509 3,478 5,945 - 9,423 - 9,423 10.040 202,892 - 212,932 - 212,932 ' 1,108 39,523 - 40,631 - 40,631 1,108 39,523 - 40,631 - 40,6M 11,148 242,415 - 253,563 - 253,563 4.734 - 4.734 - 4,734 519 69,034 - 69,553 - 69.553 1,091 60.688 - 61,779 - 61,779 374 11,724 - 12.098 - 12,090 11.248 - 11,248 - 11.248 14.248 - 14,248 - 14,248 1/104 171,676 - 173.660 - 173,660 71,077 - 71,077 - 71,077 71,077 - 71,077 - 71,077
-i 520 211 -
731 - 731
- 23,390 - 23,390 -
23,390
. - - _ _ i 36A46 40,271 77.117 -
77,117 i
- 60,236 40,271 100,507 - 100,507 l C 520 60,447 40,271 101,238 - 101,238 -1
-__ 1 (continued) l l
87 l
SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET - ALL SPECIAL REVENUE GRANTS September 30,1992 . Assets Receivables Pooled from CFDA Fund Investments Other Other Total Numter Number and Cash Governments Assets Assets U.S. DEPARTMENT OF LABOR National Council of Senior Citizens: Senior Aides Program 91 17235 29B $ 351.f/* 351 Senior Aides Program 92 17.235 147 -1s 495 - 495 Senior Aides Program 93 17235 294 3.571 - - - 3,571 3,922 D 495 - 4,417 State Department of Commerce: Summer Youth Employment 17.250 293 - 226,560 - 226fA0 Total U.S. Department of Labor 3,922 iM.055 - 230,977 U.S. ENVIRONMENTAL PROTECTION AGENCY Dry Weather Flow Monitoring 66.463 261 - - - Texas Water Commission: Town Lake Ph 1 Clean Lake 66.419 164 - 43,978 - 43,978 Urban NPS Work Plan 66.505 135 - 21,341 - 21,341
- 65,319 - 65,319 Total U.S. Environmental Protection Agency - 65,319 - 65,319 U.S. DEPARTMENT OF TRANSPORTATION Texas State Highways and Public Transportatbn Department:
F.H.W.A. Section 112 90-91 20.205 161 - - - F.H W.A. Section 112 91-92 20205 140 - 54,810 - 54,810 Star Flight DWI Awareness 90-91 20.600 121 - - - STEP-DW1 Program 90-91 20.600 182 - - - STEP-DWl Program 91-92 20.600 193 - 17.830 2,408 20.238 STEP-Occupant Restraint 90-91 20.600 196 - - - STEP-Occupant Restraint 91-92 20.600 221 - 9,326 - 9,326 STEP-National Maximum Speed Limit 91 20 600 245 - - - STEP-National Maximum Speed Limit 92 20.600 195 - 22,193 - 22,193 STEP-Traser 90-91 20.600 274 - - - Total U.S. Department of Transportation - 104,159 2,408 106,567 U.S. FEDERAL EMERGENCY MANAGEMENT Texas Department of Public Safety. FEMA 92 Flood Disaster Relief 83.516 205 - 218.322 - 218,322 FEMA 90-91 83.503 154 - - - - FEMA 91-92 83 503 189 - 28,665 - 28,665 Total U S. Federal Emergency Management 5 - 246,987 - 246,987 88
Cl1Y OF AUSTIN, TEXAS : Exhibit C-3 1 (Continued)
- Liabilities and Fund Balances Advanced Total ';
Pooled Liabilities Accounts investments Other Total Fund and Fund ! , Payable and Cash Liabilities Liabilities Balances Balances i 351 - - 351 - 351
- 495 -
495 - 495
- - 3,571 3.571 - 3,571 i 351 495 3,571 4,417 - 4,417 P
1,062 225,498 - 226.560 - 226,560 , 1,413 225,993 3.571 230,977 - 230,977 r h h
- 43,978 - 43,978 - 43,978
- 21,341 - 21,341 - 21,341
- 65,319 - 65,319 - 65,319 >
- 65,319 - 65,319 - 65,319 ese e,s m = w ese
- 54,810 -
54.810 - 54,810 M W - e - m
- 20,238 - 20,238 -
20.238
- 9,326 - 9,326 - 9,326
- 22,193 - 22,193 - 22,193 106.567 -
106.567 - 106,567 P
- 218,322 -
218,322 - 218,322
- 28,665 -
28.665 - 28.04 5 246.987 - 246,987 - 246,987 J (continued) 1 89
- SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET - ALL SPECIAL REVENUE GRANTS September 30,1992 Assets Receivables Pooled from , CFDA Fund investments Other Other Total ' Number Number and Cash Govemments Assets Assets ' U.S. HEALTH & HUMAN SERVICES Nursing Student Loans 13.3G4 190 $ 13,400 - 18,116 31,516 High Risk Youth Initiative 93.035 258 - 33,266 - 33,266 , Ryan White 111 (DHHS) 93.928 620 - - - - t 13,400 33,266 18,11S 64,782 ; Texas Departmentof Human Resources: ; Family Planning Title XX 91-92 13.217 257 - - - - Family Planning Title XX 92-93 13.217 635 - 31,226 - 31,226 31,226 - 31,226 > L Capital Area Planning Council: ' Elderly Suppor1 Services 91-92 13.633 242 - 21.010 - 21,010 "i, Elderly Support Services 90-91 13 633 208 - - - - l, Senior Luncheon Program 91-92 13.635 241 - 61,618 968 62,586- 4 Senior Luncheon Program 90-91 13.635 206 - - - - 82,628 968 83,596 Texas Commu.'; Affairs: Community Semees Block Grant 89 13.665 239 - 20,830 - 20,830
. Community Services Block Grant 91 13.665 263 - - - -
Community Services Block Grant 92 13.665 230 - 131,525 - 131,525 Emergency Community Service 68-89 13.665 171 4,168 - - 4,168 Emergency Community Service 89-90 13.665 299 - - - - Emergency Community Service 90-91 13 665 228 - - - - Emergency Community Service 91-92 13.665 145 - - - - 1 Emergency Community Service 92-93 13 665 134 - 11,704- - 11,704
$ 4,168 164,059 - 168,227 r
P k 90
CITY OF AUSTIN, TEXAS
. Exhibit C-3 (Continued)
Liabilities and Fund Balances Advanced Total Pooled Liabilities Accounts Investments Other Total Fund and Fund Payable and Cash Liabilities Liabilities Balances Balances
- - 31,516 31,516 - 31,516 1.457 31,809 -
33.266 - 33,266 1,457 31,809 31,516 64,782 - 64,782 31,226 - - 31,226 - 31,226 31,226 - - 31,226 - 31,226 , 3,360 16.436 1,214 21,010 - 21,010 32,279 30,307 - 62,586 - 62,586 35,639 46,743 1,214 83.596 - 83,596
- 20,830 - 20,830 - 20,830 72.894 56,631 - 131,525 - 131,525 4,168 4,168 -
4,168
- 11,704 - 11,704 - 11,704 72,894 91,165 4,168 168,227 - 168,227 (continued) 4 e
ed e f4 7 91
i l SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET - ALL SPECIAL REVENUE GRANTS , September 30,1992 )! Assets Receivables Pooled from CFDA Fund Investments Other Other Total Number Number and Cash Governments Assets Assets i i U.S. HEALTH & HUMAN SERVICES, ! CCNTINUED i Texas Health Department: Matemal and Child Health 90-91 13.994 165 $ - - - - Matemal and Child Health Att 10 State 169 - 31,008 - 31,008 Tuberculosis Control 90-91 13.116 176 - - - - Tuberculosis Control Att 5 13.116 146 - - - - Tuberculosis Control Att 6 State 163 - 9,207 - 9,207 6 AIDS: H!V/HSS 13.118 272 - - - - AIDS: HIV/HSS State 256 - 52,494 - 52,494 ; AIDS: HIV/HSS State 616 - 2,022 - 2,022 H!V - Division Att 2 (CTRPN) 93.118 126 - 12,181 - 12,181 HIV - Division Att 2 93.118 156 - - - - H!V - Division Att 3 93.118 157 - - - - HIV - Division Att 4 93.118 158 - - - - HIV-Surveillance Att 5 93.118 138 - 2,638 - 2,638 HIV-Division Pediatric Att 6 93.118 232 - 7,954 - 7,954 , H!V-CTRPN Att 3 Testing 91-92 93.118 265 - 6,579 - 6,579 HIV-CTRPN Att 4 Partner 91-92 93.118 266 - 3,816 - 3,816 AIDS: HTLV-lh Counseling 90 13.118 178 - - - - Family Planning Clinic 88-89 93.217 139 - - - - Famity Planning Clinic 91-92 93.217 149 - - - - ' Family Planning Clinic 92-93 93.217 233 - 45,019 - 45,019 SLIAG 13.786 276 1,554 - - 1,554 SLIAG 91-92 13,705 648 - 587,815 - 587,815 STD Control Division - Att 1 93.977 155 - - - - STD Personne190-91 13.977 175 - - - - STD Att 7 State 164 - 22,513 - 22,513 STD Control Division - Att 1 93.977 273 - 1,468 - 1,468 Ryan White, Title 11 93.917 251 - - - - Ryan White. Title il insurance Att 7 93.917 268 - 14,392 - 14,392 Ryan White. Title 11 Consortia Att B 93 928 283 - 40.539 - 40,539 Early intervention Prog., Title 111 13.994 259 - 137,515 - 137,515 Immunization Drvision 93.268 181 - - - - Immunization Division Att 9 93.268 168 - 11,761 - 11,761' , Preventative Health Services imm 93 268 260 - 29,727 - 29,727 1,554 1,018,648 - 1,020,202 i TotalU S. Heat:h & Human Services $ 19,122 1,329,827 19,084 1,368,033 i E C _____________________________._______:__________
CITY OF AUSTIN, TEXAS Exhibit C-3 (Continued) ; Liabilities and Fund Balances Advanced Total Pooled Liabilities Accounts investments Other Total Fund . and Fund Payable and Cash Liabilities Liabilities Balances Balances 1 2.667 28,341 - 31,008 - 31,008 722 8,485 - 9,207 - 9,207 7,524 44,970 - 52.494 - 52,494
- 2,022 - 2,022 - 2,022 i 12.181 - 12,181 -
12,161
- 2,638 -
2.638 - 2,638
- 7,954 - 7,954 - 7,954 46 6,533 - 6,579 -
6,579 21 3,795 - 3,816 - 3,816 16,184 28,835 - 45,019 - 45,019 [
- - 1,554 1,554 - 1,554 587,815 587,815 -
587,815
- 22,513 - 22,513 - 22,513 1,468 - 1,468 - 1,468 7.127 7.265 - 14,392 - 14,392 17,991 22,548 - 40,539 -
40,539 28,768 108,747 - 137,515 - 137,515 154 11,607 - 11,761 - 11,761 5,356 24,371 - 29,727 - 29,727 86,560 344,273 589,369 1,020,202 - 1,020,202 227,776 513,990 626,267 1,368,033 - 1,368,033 (continued) i 1 1
~
93
SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET - ALL SPECIAL..dVENUE GRANTS September 30,1992 Assets Receivables Pooled from CFDA Fund investments Other Other Total 3 Number Number and Cash Governments Assets Assets U.S. HOUSING / URBAN DEVELOPMENT Section 8 Substantial Rehab 87-88 14.156 209 $ - - - - Section 8 Substantial Rehab 88-89 14.156 248 - - - - Section 8 Substantial Rehab 89-90 14.156 292 - 149 - 149 Section 8 Substantial Rehab 90-91 14.156 188 - 5,550 - 5,550 Section 8 Substantial Rehab 91-92 14.156 237 33,708 - - 33,708 Community Development Block 9 14.218 212 - - - - Community Development Block 11 14.218 215 - - - - Community Development Block 12 14.218 203 - 2,045 - 2,045 Community Development Block 13 14.218 204 - - - - Community Development Block 14 14.218 252 - 58,915 - 58,915 Community Development Block 15 14 218 287 - 103.024 - 103.024 Community Development Block 16 14.218 271 - 242,798 86,006 328,804 Community Development Block 17 14.218 218 - 202,055 655,500 857,555 Section 312 Loan Funds FYB7-88 14.220 211 31 - - 31 Rental Rehab Grant 85-86 14.230 217 - - - - Rental Rehab Grant 86-87 14.230 207 - - - - Rental Rehab Grant 87-88 14.230 210 4,938 - - 4,938 Rental Rehab Grant 88-89 14 230 249 4,563 - - 4,563 Rental Rehab Grant 89-90 14.230 253 1,145 - - 1,145 Rental Rehab Grant 90-91 14.230 187 - - - - Rental Rehab Grant 91-92 14.230 219 - 19,300 - 19,300 Youth in Sports Program 14.218 137 - - - - Home Grant 14.218 236 - - - - Emergency Shelter Grant FYB7 14.218 185 - - - - Emergency Shelter Grant 89-90 14.218 197 - - - - Emergency Shelter Grant 90-91 14.218 123 23,159 - - 23,159 Emergency Shelter Grant 91-92 14.218 127 - 12,800 - 12,800 Emergency Shelter Grant 92-93 14.218 284 - 688 - 688 Total U.S. Housing / Urban Development $ 67,544 647,324 741,506 1,456,374 66
CITY OF AUSTIN, TEXAS Exhibit C-3 (Continued) Liabilities and Fund Balances Advanced ! Total Pooled Liabilities Accoents investments Other Total Fund and Fund l Payable and Cash Liabilities Liabilities Balances Balances ; i 149 - 149 - 149
- 5,550 - 5,550 -
5,550 6,367 - 27,341 33,708 - 33,708 1.846 199 - 2,045 - 2,045 6,571 52,344 - 58,915 - 58,915 44 102.980 - 103,024 - 103,024 55,859 272,945 -- 328,804 - 328,804 299,872 557,683 - 857,555 - 857,555 31 31 - 31
~ -
4,938 4,938 - 4,938
- - 4,563 4,563 -
4,563 1,145 1,145 - 1,145 19,300 - 19,300 - 19,300 23,159 - - 23,159 - 23,159 2,644 10,156 - 12.800 - 12,800 688 - 688 - 688 396,362 1,021,994 38.018 1,456,374 - 1,456,374 (continued) s 5 95
SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET - ALL SPECIAL REVENUE GRANTS September 30,1992 Assets Receivables Pooled from CFDA Fund Investments Other Other Total Number Number and Cash Governments Assets Assets U.S. NATIONAL FOUNDATION ON THE ARTS AND HUMANITIES National Endowment for the Arts: 1.M.S. General Operating 91 45.301 148 $ 2,391 - - 2,391 1 M.S.. General Operating 92 45.301 604 1,407 - - 1,407 3,798 - - 3,798 Texas Commission on the Arts: - Educational And Tech. Asst Prog. 45.007 268 - - - Art in Public Places 45.007 275 1,467 - - 1,467 Art in Public Places 45.007 214 - - - Organ Assist Cultural Affairs 45.007 130 - - - Preparation Touring Assistance 45.007 220 1,095 - - 1,895 3,362 - - 3,362 National Endowment for the Humantties: Texas Committee on the Humanities: - O' Henry-Austin 45.007 277 - - Total U.S. National Foundation on the Arts and Humanities 7,160 - - 7.160 U.S. DEPARTMENT OF INTERIOR . UPARR-Mabson Baseball Field 15.919 150 - 62,199 - 62,199 U.S. DEPARTMENT OF ENERGY Least Cost Planning Grant 81.086 216 - - Urban Consorttum Energy Task Force: Sustainable Build:ng Source Book B1.086 246 - 26,871 - 26,871 TotalU.S.Departmentof Energy - 26,871 - 26,871 Total Federal Grants S 97,748 3,309,279 762,999 4,170,025 fG
CITY OF AUSTIN, TEXAS Exhibit C-3 (Continued) Liabilities and Fund Balances Advanced Total Pooled Liabilities Accounts investments Other Total Fund and Fund Payable and Cash Liabilities Liabilities Balances Balances i I 1,433 2,391 - 2,391 958 - 877 - 530 1,407 - 1,407 1.835 - 1,963 3,798 - 3,798
- - 1,467 1,467 - 1,467 M - - SiDD m m 1,895 - - 1,895 - 1,895 1,467 3.362 - 3,362 1.895 -
L f
= eise -
- - =
3.730 - 3,430 7,160 - 7,160 l 1
- 62,199 - 62,199 -
62.199 M -
- M M 6
26,871 - 26,871 26.871 -
- 26,871 - 26,871 - 26,871 642,933 2.815.535 711,557 4,170,025 - 4,170.025 (continued) 1 l
l 1 1 i e l i e,
- 97 -l
SPECIAL REVENUE FUNDS COMBINING BAl.ANCE SHEET - ALL SPECIAL REVENUE GRANTS September 30,1992 Assets Receivables Pooled from Fund investments Other Other Total { Number and Cash Governments Assets . Assets STATE GRANTS I TEXAS GOVERNOR'S OFFICE l CRIM!NAL JUSTICE DMSlON Stolen Pawned Property Recovery /1 183 $ - - - - Stolen Pawned Property Recovery /2 227 - 6.170 - 6,170 l D Process / imaging and AFiS/1 201 - - - -
- 6,170 - ' 6,170 TEXAS GOVERNOR'S OFFICE ENERGY MANAGEMENT CENTER Small Business Energy Management 131 - 17,578 - 17,578 Non-Proftt Energy Action Directive 255 - 5,900 - 5,900 23.478 - 23,478 TEXAS HEALTH DEPARTMENT Community and Rural Health 90-91 172 - - - -
l Community and Rural Health Att 8 167 - 13,169 - 13,169 , Community and Rural Health Att 11 613 9.909 4,757 - 14,666 j Chronically til/ Disabled Children 606 - 5 - 5 j STD Att to 617 - 4,765 - 4.765 ; TB Elimination Att 18 289 - 2,152 - 2,152 ; TB Eliminaton 619 - 1,503 - 1,503 ! TB Att 9 618 - 5.521 - 5,521 Maternal and Child Health Att 13 611 - 18.859 - 18,B59 ; Maternal hf ant Health improvement Act Att 10 180 - - - MatemalInf ant Health improvement Act Att 2 186 - 23.688 - 23,688 IMM Att 14 61< - 4.511 - 4,51) 9.909 78,930 - 88,839-TEXAS STATE LIBRARY Central Tx Library 472.3 607 192,916 - - 192,916 ( Central'x Library 426.3 160 - - - - Central Tx Library 448.3 231 28,582 13.082 - 41.664 221,498 13,082 - 234,580 TEXAS PARKS AND W!LDLIFE Austin Veloway Park 120 - Dove Springs Park 605 - 11,773 - 11,773 Austin Searight Park 122 - 159,183 - 159,183 170.956 - 170,956 TEXAS WATER COMM:SSION Regional Water Supply and Wastewater Plan 278 - 28.654 - 28,654 Envirrmmental Work Program for Youth 290 - 53,258 - 53.258 Yard Waste Composting Program 295 - - -
- 81,912 -
81.912 Texas A & M University Effectiveness of Natrve Species Buffer Zone 285 - - - -
$ - 81,912 - 81,912 r
98 -
l CITY OF AUSTIN, TEXAS Exhibit C-3 (Continued) Liabilitic; and Fund Balances Advanced Total Pooled Liabilities Accounts investments Other Total Fund and Fund Payable and Cash Liabilities Liabilities Balances Balances
- 6,170 - 6,170 - 6,170
- 6,170 -
6.170 - 6,170
- 17,578 - 17,578 - 17,578
- 5,900 -
5,900 - 5,900
- 23,478 - 23,478 - 23,478 7.316 5,653 - 13,169 - 13,169
- - 14,666 14,666 - 14,666 5 - -
5 - 5 129 2,264 2.372 4.765 - 4.765
- 2,152 - 2,152 - 2,152
- 1,503 - 1,503 -
1.503 532 4,989 - 5.521 - 5.521 451 18,408 - 10,859 - 18,859 574 23,114 - 23,688 - 23.688 45 4.466 - 4,511 - 4,511 9,052 62.749 17.038 BB,839 - 68,839 1,153 - 191,763 192,916 - 1Q2,916 16,629 - 25,035 41,664 - 41,664 ' 17,782 - 216,79S 234,580 - 234fA0
- 11,773 - 11,773 - 11,773
- 159,183 - 159,183 - 159,183
- 170,956 - 170,956 - 170,956 28,654 - 28,654 - 28,654 1,956 51,302 - 53,258 - 53,258 1,956 79,956 - 81,912 - 81,912 i .
i sa 1,956 79,956 - 81,912 - 81,912
- r ,
^* (continued) W9, 1 l I l 2 l l 99 1
SPECIAL REVENUE FUNDS COMBINING BAI.ANCE SHEET - ALL SPECIAL REVENUE GRANTS September 30,1992 Assets Receivables Pooled from - Fund Investments Other Other Total Number and Cash Governments Assets Assets TEXAS STATE HIGHWAYS ANO PUBUC TRANSPORTATION 18,227 - 18,227 Traffic Ught Synchronization /1 238 $ - 280 - 159,230 - 159,230 Traffic Ught Synchronization /2 - - - Traffic Management Project 136 -
- 177,457 - 177,457
~
TEXAS DEPARTMENT ON AGING Southwestem Bell Telephone 1,477 226 - 1,477 - Senor Adult Literacy Targeted TEXAS WATER DEVELOPMENT BOARD - - Xeriscape Research Project 262 - 231,407 553,462 - 784,869 Total State Grants OTHER SPECIAL REVENUE GRANTS : NATIONAL EMERGENCY MEDICINE ASSOCIATION 7,246 - - 7,246 -l CPR Training 240 TEXAS NURSES FOUNDATION / TEXAS CANCER COUNCIL 133 - 1,639 - 1,639 l Nurse Oncology Education Program NEW YORK UNIVERSITY 270 - - - - Strategic Intervention High Risk Youth 47,617 l 199 47,617 - - Strategic Intervention High Risk Youth 47,617 - - 47,617 AMERICAN FOUNDATION FOR AIDS RESEARCH - - Technical Assistance to Community Organizations 141 - CITY OF CHICAGO 254 14,339 - - - 14.339 Energy Star Sustainable Systems Rating TRAVIS COUNTY - 206 Star Flight DW1 Awareness Program 91-92 224 206 - 637 4,767 - - 4,767 Star Flight DWI Awareness Program 92-93 4.973 - - 4,973 THE TOBACCO INSTITUTE 264 2.054 - - 2,054 Children's Safety & Fire Education SMALL BUSINESS ASSOCIATION 198 13,035 - - 13,035 Neighborwood's Tree Project JUNIOR LEAGUE OF AUSTIN 4,811 - - 4,811 Star Fhght DWI Awareness Program 92-93 281 THE MEADOWS FOUNDATION - Restoraton Old Bakery Porch 282 - 94,075 1,639 - 95,714 Total Other Special Revenue Grants 423,230 3.864,380 762,998 5,050,608 Total All Grants S -z - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9@3) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CITY OF AUSTIN, TEXAS Exhibit C-3 I (Continued) Liabilities and Fund Balances Advanced Total Pooled Liabilities Accounts Investments Other Total Fund and Fund Payable and Cash Liabilities Liabilities Balances Palances ,
- 18,227 - 18,227 - 18,227 3,562 155,668 -
159.230 - 159,230 3,562 173.895 - 177,457 - 177,457 491 986 - 1,477 - 1.477 b 32.843 518,190 233,836 784,869 - 784,869 57 - 7,189 7,246 - 7,246
- 1,639 - 1,639 - 1,639
_ _ _ _ _ _ j
- - 47,617 47,617 -
47.617 ,
- - 47,617 47,617 - 47,617 ,
- - 14,339 14,339 - 14,339 206 206 -
206
- - 4,767 4,767 - 4,767 4.973 4.973 -
4.973
- - 2,054 2.054 - 2,054 309 - 12,726 13.035 - 13,035 149 - 4,662 4,811 - 4,811 t
515 1,639 93,560 95,714 - 95,714 676,291 3,335,364 1,038,953 5,050,60S - 5,050,60S f M -- 101
SPECIAL REVENUE FUNDS COMBINING SCHEDULE OF EXPENDITURES - ALL SPECIAL REVENUE GRANTS From inception to September 30,1992 Total Expenditures at l September 30,1991 CFDA Fund in-Kind Number Number Grant Match Total FEDERAL GRANTS .
.t U.S. DEPARTMENT OF AGRICULTURE Texas Health Department:
Women / Infants / Children 90-91 10.557 177 $ 911,767 45,278 957,045-Women / Infants / Children 91-92 10.557 174 - - WIC-Breastfeedog Peer Counseling 10.557 152 17.889 - 17,889 : WIC-Peer Counseling 10.557 229 - - 929.656 45,278 974,934 Texas Department of Human Services: Summer Food Program 10.559 132 230,040 - 230,040 Summer Food Program 10.559 279 - - 230,040 - 230,040 Total U.S. Department of Agriculture 1,159,696 45,278 1.204,974 U.S. DEPARTMENT OF EDUCATION Texas State Library: Central Tx Library Sys 473.3 84.035 608 - - - Central Tx Library Sys 427.3 84.035 166 232,095 - 232,095 Central Tx Library Sys 449.3 84.035 234 576 - 576 Interlibrary Loan 428.2 84.035 191 168,618 - 168.618 Interlibrary Loan 450.3 84.035 235 9,507 - 9.507 Interlibrary Loan 474.2 84.035 622 - - - LSCA / Title 1478.4 84.035 624 - - - LSCA / Title 1436.4 84.035 194 40,419 - 40,419 LSCA /Murls 455.4 84 035 243 - - - Service To Disadvantaged 434.2 84.035 142 35,722 - 35,722 Service To Disadvantaged 457.2 84.035 244 513 - 513 Service To Disadvantaged 480.1 84.035 625 - - - Total U.S. Department of Education 487.450 - 487,450 EQUAL EMPLOYMENT OPPORTUNITY COMM:SSION , Equal Employment Opportunity 86 30 002 153 79,703 - 79.703 i Equal Employment Opportunity 91 30.002 179 169,801 - 169.801 + Equal Employment Opportunity 92 30.002 192 - - Total Equal Employment Opportunity 249,504 - 249,504 U.S. DEPARTMENT OF JUSTICE Strategic Intervention High Risk Yth 16.573 159 - - - Texas Governor's Offee Criminat Justee Division: Property Crime Sting Operation 16.573 162 1,688 1,689 3,377 Votim Assistance Prograrn/2 92.006 250 - - - - Anti-drug Abuse Task Force /2 16.579 247 56.647 2.210 58.857 Anti-drug Abuse Task Force /4 16.574 173 426.660 188,805 615,545 Anti-drug Abuse Task Force /5 16.574 124 142,347 53,670 196,017 627,342 246,454 873,796 Total U.S. Department of Justice $ 627,342 246.454 873,796 i 102 < ,
CITY OF AUSTIN, TEXAS Exhibit C-4 ' l Total Expenditures at Current Year Septernber 30,1992 Budget in- Kind in-Kind in-Kind Grant Match Grant Match Total Grant Match Total 30,000 (30,005) 941,767 15,273 957,040 922,954 - 922,954 1,012.080 135,567 1,012.080 135,567 1,147,647 1,051,333 - 1,051,333 1 - 17,890 - 17,890 20,000 - 20,000 , 34,637 - 34,637 - 34,637 34,977 - 34,977 1,076,718 105,562 2,006,374 150,840 2,157,214 2,029,264 - 2,029,264 13,754 - 243,794 - 243,794 464,200 - 464.200 392,591 - 392,591 - 392,591 464.200 - 464,200 ' 406 345 - 636,385 - 636,385 928,400 - 928,400 1,483,063 105,562 2,642,759 150,840 2.793,599 2.957,664 - 2,957,664 4,734 - 4,734 - 4.734 294.413 - 294,413
- - 232,095 - 232,095 232,095 - 232,095 196,060 - 196,636 - 196,636 196,676 - 196,676
- - 168,618 -
168,618 168.329 - 168,329 t 170,500 273 180,015 273 180,288 180,259 - 180,259 12,098 2 12,098 2 12,100 185,611 - 185,611 43,028 - 43,028 40,419 - 40,419 40,419 - 40,419 43,028 - 43,028 - 43,028 43.028 - 43,028 35,722 - 35,722 37,150 - 37,150 28,406 - 28,919 - 28,919 31,757 - 31,757 13,442 - 13,442 454,834 275 942,284 275 942,559 1,466,207 - 1,466,207 (15,725) - 63,978 - 63,978 81,613 -}}