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HomeMy WebLinkAboutCity of Georgetown 2020 CAFR City of Georgetown, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2020 Prepared by: Division of Finance and Administration Elaine S. Wilson, Assistant Finance Director Christi Rawls, Assistant Controller This page intentionally left blank. City of Georgetown, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2020 Table of Contents i Introductory Section (Unaudited) Letter of Transmittal .................................................................................................................................................. vii GFOA Certificate of Achievement .................................................................................................................... xviii Organizational Chart .............................................................................................................................................. xix Elected Officials and Administrative Officers ...................................................................................................... xx City of Georgetown Map ...................................................................................................................................... xxi Financial Section Independent Auditor’s Report ................................................................................................................................ 3 Management’s Discussion and Analysis of Financial Condition and Results of Operations ...................................................................................................................................... 7 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position.............................................................................................................................. 20 Statement of Activities ................................................................................................................................... 21 Fund Financial Statements Balance Sheet – Governmental Funds ....................................................................................................... 24 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................................ 25 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ...................................................................................................... 26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities ............................................................... 27 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ......................................................................................... 28 Statement of Net Position – Proprietary Funds ............................................................................................. 29 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ............... 31 Statement of Cash Flows – Proprietary Funds .............................................................................................. 32 Statement of Fiduciary Net Position – Agency Funds ................................................................................. 33 Notes to the Financial Statements ................................................................................................................. 37 Required Supplementary Information Texas Municipal Retirement System Schedules and Ratios ....................................................................... 82 Other Post-Employment Benefits Schedules and Ratios ............................................................................ 85 Modified Approach for Streets Infrastructure Capital Assets .................................................................... 86 City of Georgetown, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2020 Table of Contents – Continued ii Combining and Individual Fund Financial Statements and Schedules Combining Financial Statements – Nonmajor Governmental Funds Combining Balance Sheet .................................................................................................................................. 92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance ................................. 94 Schedules of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis Council Discretionary ....................................................................................................................................... 96 Conservation .................................................................................................................................................... 97 Court Fees .......................................................................................................................................................... 98 Development ..................................................................................................................................................... 99 Fire ..................................................................................................................................................................... 100 Library Restricted ............................................................................................................................................. 101 Parks .................................................................................................................................................................. 102 PEG Fees ........................................................................................................................................................... 103 Police ................................................................................................................................................................ 104 Public Improvement Districts ......................................................................................................................... 105 Street Sales Tax ................................................................................................................................................ 106 Tax Increment Reinvestment Zones ............................................................................................................. 107 Tourism .............................................................................................................................................................. 108 Supplementary Individual Fund Financial Statements and Schedules – Major Governmental Funds General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis ..................................................................................................... 110 Georgetown Transportation Enhancement Corporation (GTEC) Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis ..................................................................................................... 116 Debt Service Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis ..................................................................................................... 117 General Capital Projects Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis ..................................................................................................... 118 Combining Financial Statements - Nonmajor Proprietary Funds Enterprise Funds Combining Statement of Net Position ............................................................................................................. 121 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................ 122 Combining Statement of Cash Flows .............................................................................................................. 123 Internal Service Funds Combining Statement of Net Position ............................................................................................................. 124 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................ 125 Combining Statement of Cash Flows .............................................................................................................. 126 Supplementary Individual Fund Financial Statements Agency Funds Statement of Changes in Assets and Liabilities .............................................................................................. 128 City of Georgetown, Texas Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2020 Table of Contents – Continued iii Statistical Section (Unaudited) Net Position by Component ................................................................................................................................ 132 Changes in Net Position ....................................................................................................................................... 134 Fund Balances of Governmental Funds ............................................................................................................ 138 Changes in Fund Balances of Governmental Funds ....................................................................................... 140 Property Tax Rates, Levies and Collections ....................................................................................................... 142 Assessed and Estimated Actual Value of Taxable Property .......................................................................... 144 Property Tax Rates - Direct and Overlapping Governments ......................................................................... 146 Principal Property Taxpayers ............................................................................................................................... 147 Taxable Sales by Category ................................................................................................................................. 148 Direct and Overlapping Sales Tax Rates ........................................................................................................... 150 Sales Tax Revenue Payers by Industry ................................................................................................................ 151 Ratios of Outstanding Debt by Type .................................................................................................................. 152 Ratios of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt per Capita ....................................................................................... 154 Computation of Direct and Estimated Overlapping Bonded Debt ............................................................. 156 Computation of Legal Debt Margin .................................................................................................................. 158 Revenue Bond Coverage - Utility Funds ............................................................................................................ 160 Utility System Condensed Statement of Operations ....................................................................................... 162 Utility System Condensed Statement of System Equity ................................................................................... 164 Demographic and Economic Statistics ............................................................................................................. 166 Principal Employers ............................................................................................................................................... 167 Full Time Equivalent City Government Employees by Function ..................................................................... 168 Operating Indicators by Functions ..................................................................................................................... 170 Capital Assets by Functions ................................................................................................................................. 172 Ten Largest Electric Customers ........................................................................................................................... 174 Water Usage (Gallons) ......................................................................................................................................... 175 Ten Largest Water Customers.............................................................................................................................. 176 Daily Flow (Wastewater Treatment) ................................................................................................................... 177 Ten Largest Wastewater Customers ................................................................................................................... 178 Valuation, Exemptions and Ad Valorem Tax Debt .......................................................................................... 179 Taxable Assessed Valuations by Category ....................................................................................................... 180 Authorized but Unissued General Obligation Bonds ....................................................................................... 182 General Fund Revenues and Expenditure History ........................................................................................... 184 Municipal Sales Tax History .................................................................................................................................. 186 Monthly and Volumetric Water Rates ................................................................................................................ 187 Monthly Wastewater Rates .................................................................................................................................. 188 Monthly Electric Rates .......................................................................................................................................... 189 Compliance Section Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................. 193 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance ....................................................................................................... 195 Schedule of Findings and Questioned Costs ...................................................................................................... 197 Schedule of Expenditure of Federal Awards ...................................................................................................... 199 Notes to the Schedule of Expenditure of Federal Awards ............................................................................... 200 iv This page intentionally left blank. v Introductory Section vi This page intentionally left blank. vii March 31, 2021 Honorable Mayor and City Council, City Manager and Citizens of Georgetown, Texas: The comprehensive annual financial report of the City of Georgetown, Texas (the City) for the year ended September 30, 2020, is hereby submitted. The financial statements are presented in conformity with accounting principles generally accepted in the United States of America as set forth by the Governmental Accounting Standards Board (GASB) and have been audited by independent auditors in accordance with generally accepted auditing standards. Management Responsibility for Financial Information. The City’s Finance Division has prepared the report and is responsible for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed data is complete and reliable in all material respects. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The Reporting Entity. This report includes all the funds of the City, as well as, the City’s discretely presented component unit, the Georgetown Economic Development Corporation (GEDCO), its Texas 4A economic development corporation. The City provides a full range of services, which include police and fire protection; construction and maintenance of streets and other infrastructure; recreational activities and cultural events. In addition to general government activities, the City also provides electric, wastewater, water, stormwater drainage and airport services which are included in the reporting entity. The City is also financially accountable for Georgetown Transportation Enhancement Corporation (GTEC), a Texas 4B economic development corporation, which funds transportation projects that enhance economic development within the City. GTEC is presented as a blended component unit within the reporting entity. Management Discussion and Analysis. Generally accepted accounting principles (GAAP) require management to provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors’ report located at the front of the financial section of this report. DESCRIPTION OF THE CITY Georgetown is a Home Rule Charter City and operates under a Council - Manager form of government. A mayor, elected at large, and seven council members, elected from single member districts, serve staggered, three-year terms. Georgetown is located on Interstate 35, the major corridor between Dallas and San Antonio, at the intersection of State Highway 130. Georgetown was founded in 1848 with a strong agricultural base, in the heart of Williamson County, 26 miles north of Austin. Today, Georgetown has an estimated population of 75,132 within the city limits representing an annual growth of 6.6%, with an estimated population of 109,086 inclusive of the extra- territorial jurisdiction (ETJ) and serves as the county seat of Williamson County. Georgetown’s economic development initiatives to diversify tax base, expand retail and create jobs have been balanced with a focus of maintaining the community’s unique character and quality of life. The downtown commercial district, with The Most Beautiful Square in Texas, continues to expand its arts, culture, dining and entertainment venues. viii Award-winning parks, extensive river trail systems along the North and South San Gabriel Rivers and Lake Georgetown have been leveraged with the low crime rate to make the City an attractive place to live and work. In 2018, Southern Living magazine named Georgetown as the “Best City to Live in the South”. Georgetown is also home to Southwestern University, which continues to receive national recognition. The University has been named to Kiplinger’s list of the 100 best values in liberal arts colleges and has been noted as one of ‘America’s Best Value Colleges’ by the Princeton Review. With an average enrollment of 1500 students and 450 employees, the University provides substantial economic and cultural contributions to Georgetown. GEORGETOWN'S ECONOMIC OUTLOOK AND FINANCIAL CONDITIONS Economic Outlook Georgetown’s economy continued to grow during 2020, mirroring the strong development in the Austin metro region. Sales tax revenue grew by 14% in 2020, which represents a multi-year consistent trend. Sales tax has grown in Georgetown by more than 35% in the last three years. New single-family housing starts of 1,865 for the year continued to show the desirability for homes in the area. The City’s total assessed property value has grown to over $8.6 billion, representing an increase of over 17.8% from last year. The average home value decreased by 0.7% to approximately $278,000 in 2020. The map indicates the several zones that are experiencing the most growth within the City of Georgetown and its ETJ with the biggest growth. Saddle Creek, Sun City, Wolf Ranch Hillwood, and the Summit at Rivery Park continue to expand single and multi-family living options, as well as increased restaurants and shops to support the residential demands. Fiscal year 2020 experienced a 30% percent increase in total building permits compared to 2019 with a total of 2,061 building permits for the City of Georgetown and its ETJ. It is projected that by 2030, the City of Georgetown will have a population of almost 100,000 people. This rapid growth has been an increase of nearly 60% from 2010 to 2020. Infrastructure and long-range planning continue to be a top priority in order to meet the needs of the community and the growth to come. ix The Georgetown water utility district continues to grow in customers spanning around 440 square miles, an area that is 8 times larger than the City of Georgetown, which is approximately 54.3 square miles. The amount of new residential and commercial development continues to add customers to our water utility systems within and outside of Georgetown. In 2020 the City of Georgetown saw an almost 7% increase in water meter installations, totaling 3,040 new meters. This growth is attributed to around 3,000 new meters per year for at least the last 4 years. The City expects this trend to continue and is planning infrastructure to meet the need of the continued growth. The Austin area unemployment rate was 2.4% for December 2020, compared to 6.7% nationally. The Central Texas region continued to see strong growth in new jobs and in retail sales. The City’s commercial and job base continued to grow with the expansion of several small commercial and retail centers, as well as growth in the school district, county and city governments. Sales tax revenues are up 14% over the prior year and up 35% over the last three years, demonstrating strong in the local economy since 2015. NEW ECONOMIC DEVELOPMENTS The City continued its implementation of the economic development strategic plan that was developed over the past two years. The plan centers around four goals: 1) Support of existing businesses and industries; 2) Enhance targeted recruitment of identified industries; 3) Diversify workforce development and recruitment initiatives; and 4) Encourage speculative development. NorthPark35. Titan Development Real Estate and the City of Georgetown broke ground in November 2020 on the first phase of the 146-acre NorthPark35 Class A industrial development at I-35 and SH 130. Phase one of the project includes two buildings totaling more than 330,000 square feet, as well as the extension of Aviation Drive to intersect with SH 130 and I-35. One building will be partially occupied by Georgetown-based Texas Speed and Performance, while the remaining space will be available for future industrial users. The park is designed and master-planned to accommodate users in need of 25,000-250,000 square feet of space. Phase one of the project is expected to be completed next spring. It is Georgetown’s first master-planned industrial business park. Wolf Crossing. Wolf Crossing opened Fall of 2019, a 250,000-square-foot retail center, which broke ground on October 2, 2018 at the site, which is at the southeast corner of I-35 and University Avenue in Georgetown. The project includes restaurants, medical facilities, neighborhood services, a hotel, and a grocery store. Specific retailers include Marriott Fairfield Inn and Suites, Olive Garden, Verizon, P. Terry's, Jason's Deli, Tiff's Treats, First Watch café, and Salons by JC. x Holt Caterpillar. Holt Caterpillar opened a 60,000 square foot regional Caterpillar equipment sales and repair facility in November 2019. This facility is located northwest of Interstate 35 and Lakeway Drive. Holt Caterpillar invested $20M on infrastructure and improvements and it plans to create at least 129 new jobs. This facility will have a $16 million impact to the City over the next 10 years. They expect to have a minimum of $27.5 million in sales per year for the first five full calendar years of operation. Costco Wholesale. On December 10, 2019, City Council approved an agreement for Costco Warehouse to open a 158,000 square-foot store at the northwest corner of Interstate 35 and Lakeway Drive within 5 years. The business is expected to create 235 new jobs and a have a net benefit to the City of more than $11 million over 10 years. The Costco site will include a minimum of $20 million in capital costs for the project including the facility and public improvements. Sedro Crossing. Sedro Crossing is a 19-acre development featuring medical, retail and professional condos coming on Williams Drive by Sun City. Sedro Crossing offers 180,000 square feet of space designed to accommodate the needs of all sizes of medical or professional tenants. Sedro Crossing will have 26 buildings, with the first one that opened December 2019. They estimate to complete a new building every 30 days. This represents the largest office project in Georgetown to-date. Academy Sports + Outdoors. Academy opened a 65,000 square foot store in Georgetown in October 2019. This Academy is in the Bluebonnet Plaza on the northwest corner of Wolf Ranch Parkway and Highway 29. Bluebonnet Plaza. Along with Academy, Bluebonnet Plaza had a few more stores open in 2020 such as Petco, Bed Bath and Beyond, and Party City to list a few. Bluebonnet Plaza offers 100,000 square feet of rental space. Infrastructure Grants. Through its economic development corporations, GTEC and GEDCO, the City invested millions of dollars in streets and utility improvements to facilitate business development in Georgetown in 2020. The Airport Road project and the expansion of high-pressure gas lines in the downtown area are two examples of projects that increase opportunities for new business and expansion of existing business. xi Downtown Development. The City’s pedestrian oriented downtown environment continues to thrive and be a unique investment opportunity. Development for a new mixed-use office/retail/loft apartment project is underway with Phase 1, and will be home to WBW Land Investments providing quality jobs in the vibrant downtown area. Phase 2 started construction in late 2020, and the two phases will add over 50,000 SF of prime commercial development to the district. Even during a world-wide pandemic, downtown continues to see new businesses open. In FY2020 there were 11 new business openings totaling $3.3 million in private investment. In addition to the businesses that opened in FY2020, another 6 are in development with expected openings in FY2021, totaling an additional $3.1 million in private investment (as of Jan. 2021). INITIATIVES COVID-19 Response. In March of 2020, the Coronavirus pandemic swept the world creating uncertainty within the economy and operations of local communities. Georgetown, like many other cities, began to conservatively shift the adopted FY2020 budget as well as the planning around budget for FY2021 to preserve cash and maintain financial stability. Some of the tactics included freezing several positions across the city, cutting existing FY2020 budgets in areas like travel and training and significant program cuts in departments like Parks and Recreation who saw their operations change significantly with the orders put in place by the Governor and County. The City of Georgetown worked collectively with neighboring cities in Williamson County to identify a coordinated response to the pandemic to ensure operations and closures remained consistent throughout the county. The Georgetown Public Library offered home deliveries and created a curbside pickup service. The Georgetown Recreation Center shifted to online Rec@Home programming until it reopened with occupancy limits on June 1. Recreation Center staff also adjusted to provide childcare services to City employees. Some departments, while wearing masks and observing social distancing, did not slow down -- like Inspections Services, which completed 75,520 inspections for new homes and businesses in 2020. The City partnered with the Georgetown Chamber of Commerce to provide $200,000 in grants to provide immediate financial relief to 67 Georgetown’s small businesses. Each grant amounted to up to $5,000 and assisted with business expenses, such as rent and employee payroll. The City also allowed for expanded outdoor seating and retail service areas within the City rights of way and parking spaces downtown to help businesses safely accommodate more patrons. The City set aside $1 million for a COVID-19 Customer Assistance Program. The program offered up to $1,500 to residential utility customers who had past due balances in 2020 and could show their income or employment was affected by the pandemic or any resulting restrictions. xii Mobility Improvements. Georgetown, like many growing cities, is investing in infrastructure to ensure mobility needs are met for the future. The final section of Southwest Bypass from Leander Road/FM 2243 to I-35 opened May 26, 2020. The City also completed the parking lot on Eighth and Martin Luther King Jr. streets. The City opened an extension of Rivery Boulevard and broke ground on the extension of the Northwest Boulevard, including a new bridge spanning I-35. When both projects are finished, drivers in Georgetown will have an alternate route to Williams Drive and a new connection from I-35 to the Rivery retail, hotel, and convention center development. Additionally, the City was on track in July 2020 to finish 10 years’ worth of projects from the 2015 bond in seven years. Pedestrian crossings with signs, button-activated flashing lights, and crosswalk striping were installed downtown and in Sun City. The crossings and beacons improve pedestrian accessibility and safety at key intersections. City Council adopted the Georgetown Bicycle Master Plan Dec. 10, 2019. The plan is a blueprint for future transportation projects and educational efforts for a safe and well-connected bicycle network. Design to widen Southwestern Blvd. and Leander Road began in 2019. Leander Road’s widening will affect the portion between River Ridge Lane and the Southwest Bypass, while the Southwestern Blvd. will widen the portion between Raintree Drive to the Southeast Inner Loop. The Leander Road widening is slated to take place in 2020, while the Southwestern Blvd, widening is planned to begin in 2021. QUALITY GROWTH Utilities. Growth in the residential and commercial sectors of Georgetown is sustainable due to disciplined long- range planning in the utility areas. The electric utility ended the 2019-2020 fiscal year with reserves of more than $28.5 million, which is up from last year’s balance of $6.3 million. The City developed various strategies beginning in FY2019 to improve financial performance including enhanced resource portfolio management and the development of a more robust risk management policy. To improve financial reserves, the City sold assets of the Electric fund in areas that were not related to its primary goal of being a power distribution entity. The City is also working on identifying the impact of overhead costs and other cost savings that impact customer rates. The City was able to reduce the Power Cost Adjustment (PCA) by 1 cent on January 1, 2021, saving the average electric user around $10 a month. The City’s net purchased power expenses for FY 2020 totaled $59.68 million. The electric utility saw a 4.8% increase in customers. Shell Energy North America was hired in December 2019 to be the City’s energy manager to assist in managing the energy portfolio and to be the City’s Qualified Scheduling Entity (QSE). The City has renewable energy power purchase agreements with AEP, EDF, and Clearway. The City also has a firm delivery purchase power agreement with Mercuria. The City has been selling renewable energy credits (RECs) from renewable energy power purchase agreements to reduce overall purchased power costs. Because the City sells its RECs, Georgetown no longer uses the 100 percent renewable designation. The City of Georgetown electric utility achieved diamond-level status in 2019 under the American Public Power Association’s Reliable Public Power Provider (RP3) program. The designation recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workforce development, and system improvement. Georgetown is one of six public power providers in Texas to receive the diamond designation. In total, only 254 of the more than 2,000 public power utilities nationwide hold the RP3 designation. Levels of recognition include gold, platinum, and diamond. Georgetown Utility Systems had been a platinum designee since 2016. xiii The City completed the acquisition of the Chisholm Trail Special Utility District (CTSUD) in 2015 through the approval of the Public Utility Commission of Texas for the transfer of service areas. This consolidation provided for stronger regional water planning and resource management to support the continued future growth expected within the region, especially in the city’s northwestern growth corridors. On August 31, 2019 CTSUD dissolved as a government entity. Significant capital improvements, such as wastewater interceptors and water and wastewater plant expansions, are underway to continue to meet service demands for residential and commercial expansion. In addition, three elevated storage tanks were constructed to help meet service demands: Sun City, Cedar Breaks and Braun. Georgetown takes an active role in water and wastewater planning with the Brazos River Authority (BRA) to find regional solutions to the ever-increasing demand for services, while protecting the natural environment within the area. Growth within the utilities continues to have strong positive impacts to the financial and economic conditions of Georgetown. In 2019, the City of Georgetown completed a Water Conservation Plan which outlines several objectives such as: reduce overall water consumption, reduce the loss or waste of water, improve the efficiency in the use of water, and document recycling and reuse efforts. In 2020, the City of Georgetown also has a cost-of- service water rate study completed. The new rate design is aimed at achieving Council’s goals of equity and conservation. The new water rates went into effect January 1, 2021 with rates changing for wastewater and residential water customers. QUALITY OF LIFE The City Council’s vision statement for the City is “Georgetown: A caring community honoring our past and innovating for the future”. The Council and staff continue to strive to exceed in creating places and conditions that make the community a special place to live with a high quality of life, as well as a great place to visit. Public Safety. The Council continued its investments in quality of life for Georgetown residents through increasing resources towards public safety. A partnership with Emergency Services District #8 allows for city provided fire and emergency medical services in the ETJ. This partnership also provides a foundation for planning and placement of fire stations to ensure response times in future in both the City limits and the ETJ. The City completed the construction of Fire Station 6 and 7 in late 2020. Fire station 6 is at the western edge of the community, while fire station 7 is on the eastern edge of the City allowing for more efficient response times to all regions of the City. These partnerships and investments ensure that growth demands do not negatively impact high quality emergency response. The Georgetown Police Department was awarded with the Texas Police Chiefs Association’s Recognized Law Enforcement Agency award in May 2019. The department earned the award from the TPCA’s Law Enforcement Recognition Program in May after a more than two-year application process that included a critical review of the agency’s policies, procedures, facilities, and operations. Georgetown is only the 154th agency out of more than 2,700 agencies in the state to receive the recognition. The department will also be recognized at the TPCA annual conference in April 2020. xiv Award Winning Parks and Trail System. The City celebrated the grand opening of Garey Park on June 9, 2018. At 525-acres, Garey Park is one of the largest city parks in the state and is located along the South San Gabriel River at 6540 RM 2243. The donation of the 525 acres, along with $5 million for park development by Jack and Cammy Garey for the park represents the largest donation in the City’s history. The City completed construction of trails, equestrian areas, playground and splash pad, day use areas and a dog park, as well as the renovation of the former Garey home for an event destination through bonds approved by the voters in 2008. The San Gabriel Park is designated a Lone Star Legacy Park by the Texas Recreation and Parks Society due to its historic prominence within the community and the state. 200-year-old oak trees grace the park along the river, which runs through the heart of downtown. A master plan to renovate the park was developed in 2016. Renovations to Phase II of San Gabriel Park were completed at the end of 2019. Improvements included additional pavilions, a new restroom, two new playgrounds, swings and a basketball court under College Street Bridge. In addition, lights were also added to the two sand volleyball courts and restoration was completed on the two additional springs along the San Gabriel River. Design for renovations to Phase III of San Gabriel Park will begin in FY 2022. Design elements planned include one large multi-use performance pavilion, splash pad plaza, three shade shelters, a new restroom building, and a lighted skate park. In addition, a new low water crossing at the convergence of the North and South San Gabriel rivers is planned to replace the current pedestrian bridge. xv LONG RANGE PLANNING Transportation Impact Fees. The City of Georgetown is in the process of completing a transportation impact fee study. Transportation Impact Fees (TIF) are governed by Chapter 395 of the Texas Local Government Code (TLGC), and are a one-time fee on new development, or redevelopment that increases demand on the transportation system, to help pay for roadway capacity projects in the corporate limits of a municipality. A study must be completed to be compliant with TLGC Chapter 395, an Impact Fee Advisory Committee (IFAC) must be formed and give comments on the study and proposed fees, and council must hold public hearings on the study assumptions and fee and act on an ordinance, order or resolution to implement fees. Council is anticipated to take final action on an ordinance for the TIF at a 2nd reading on March 23, 2021. Fees collected from the TIF must be spent on projects included in the Transportation Impact Fee Study’s Capital Improvements Plan (CIP), and are limited to the city limits by state law (not applicable in the ETJ). The fees must also be collected and spent within Service Areas, which are defined in the study and limited to a 6-mile trip length by state law, for which Georgetown has nine (9) Service Areas. Two of the service areas, Downtown and Lake Georgetown, were determined to have $0 fees in the study due to lack of auto capacity projects in those two areas of the City. Mobility Bond. The City of Georgetown has called a bond election for Tuesday, May 1, 2021. Voters will consider one bond proposition for various street and transportation infrastructure projects. The total amount of the bond proposition is $90 million in new funding authorizations. If voters approve Proposition A, the City anticipates raising the property tax rate by 3 cents once the bonds are issued to cover the full cost of the projects. The average Georgetown resident could expect their annual property taxes to increase by $83.40, based on the average homestead taxable value in 2020 of $278,001. The City expects to start work on the projects within seven years, economic conditions permitting. The anticipated 3-cent tax rate increase would generate an estimated $120 million during the life of the bond, which is the total amount required to complete the projects. The additional $30 million generated by the tax increase will fund the completion of related transportation projects from the 2008 and 2015 bonds that were approved by voters but never funded. The bond will also allocate $10.45 million for sidewalks, bike lanes, intersections, and technology updates. FINANCIAL PLANNING AND RISK MANAGEMENT The City has initiated new practices to enhance its ability to plan for a sustainable future. Five-year debt and General Fund models were developed to enhance planning efforts and predict property tax rate impacts from capital improvements and increasing operational expenses. A land development fiscal impact model was created to objectively predict the costs of providing services and the related revenue increases for new development projects. Electric and Water five-year models were created to assist in rate development and inform the funding for growth related capital infrastructure investments. Each of these models will aid the staff and Council in sustainable decision making. The City also completed a risk assessment for all city operations to understand its risk environment and the internal control structure over functional areas and processes to identify key risks and internal controls over those risks. A ranking of mitigation strategies and plans was completed to address areas for improvement and City management provides updates on mitigation actions to the City Council. The implementation of an Enterprise Resource Planning system, Workday, is in progress with phase two of three as of October 1, 2020. Phase one automated many manual human resources processes to provide opportunities for the city to implement best management practices. Phase two implemented accounting, financial reporting, procurement and other best practices for financial management. The final phase for budget planning was being tested and implemented as of March 2021. xvi The City conducted several technology assessments and audits related to cybersecurity and has developed work plans to address sustainability of utility technology in the coming five year horizon, as well as protection of data. Homeland security audits have been conducted and cybersecurity training was conducted for all city employees. The City has also done extensive work in mitigation and review of cybersecurity and utility technology over the last year. A back-up data center was successfully brought online in the Winter of FY 2020. The purpose of this data center is to act as a failover in the case of a failure at the City’s primary data center. Failures could include physical destruction or damage to the primary datacenter by a man-made or natural disaster. Failures may also include some types of cyberattacks. In such a case, the back-up data center could be brought online and subsequently run 90 percent of the City’s technology systems within a matter of hours. This includes all the City’s mission critical data systems. The City had a third party conduct a HIPAA assessment that resulted in several recommendations that staff is working on to bolster HIPAA compliance including procedures and internal controls. The City has become a hybrid entity as a result. The City engaged with Gartner Consulting to conduct an assessment and analysis of the City’s Customer Information System (CIS), Advanced Metering Infrastructure (AMI) and Meter Data Management (MDM) systems. The objective was to evaluate the City’s CIS business processes against the current CIS system, identify gaps or areas for opportunities, and explore alternative options to improve the City’s CIS operations and supporting technologies. As well as to evaluate the business value provided by the AMI and MDM systems to enable the City to meet its smart meter information needs. Staff is completing a work plan with recommendations that came as a result of this assessment. Financial Information. The City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. The City’s Finance Director, Assistant Director, and other key staff in the Finance Division design and maintain the internal control structure. These controls are under continual review by management, and under annual review by the independent auditors. During the year, the Finance Division performs internal audits on selected procedures and operations throughout the City organization. The selection of priorities and timing of audits are determined by the Finance Director, along with the City Manager. Single Audit. As a recipient of federal and state financial assistance, the City is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. Internal controls are subject to periodic evaluation by management. The tests relating to the receipt of such funds are known as Single Audit testing. These tests are made to determine the adequacy of internal controls, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The compliance section is included in the final section of this document. Budgetary Controls. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of all funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by division and department within an individual fund. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts are reserved at year-end and carried forward into the following year. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. xvii OTHER INFORMATION Independent Audit. The City Charter requires an annual audit by independent certified public accountants. The accounting firm of Weaver and Tidwell, LLP was selected by the City Council. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2020, are free of material misstatement. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion and that the City’s financial statements for the fiscal year ended September 30, 2020, are fairly presented in conformity with GAAP. The independent auditor’s report on the basic financial statements and schedules are included in the financial section of this report. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year that ended September 30, 2019. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such Comprehensive Annual Financial Reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. The City has received a Certificate of Achievement for thirty-three (33) consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. We are also proud to report that the GFOA has presented the Distinguished Budget Presentation Award to the City of Georgetown for each of the past thirty (30) years. Acknowledgments. The presentation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Division. We would like to express our appreciation to all members of the division who assisted and contributed to its presentation. Special acknowledgment goes to the accounting and budget staff, for their dedication in preparing this report. We would also like to thank the Mayor and City Council. The preparation of this report would not be possible without their leadership and support. Sincerely, David S. Morgan Laurie Brewer, CGFO City Manager Assistant City Manager Leigh Wallace, CGFO Elaine Wilson, CGFO Finance Director Assistant Finance Director     xviii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Georgetown Texas For its Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 Executive Director/CEO xix City Of Georgetown, Texas Elected Officials and Administrative Officers September 30, 2020 xx Elected Officials Mayor Josh Schroeder City Council Member, District 1 Mary Calixtro City Council Member, District 2, Shawn Hood City Council Member, District 3 Mike Triggs City Council Member, District 4 Steve Fought City Council Member, District 5, Mayor Pro Tem Kevin Pitts City Council Member, District 6 Rachael Jonrowe City Council Member, District 7 Tommy Gonzalez Appointed Officials City Manager David Morgan City Attorney Skye Masson City Secretary Robyn Densmore Municipal Court Judge Randy Stump Other City Officials Assistant City Manager Laurie Brewer Assistant City Manager Wayne Reed Finance Director Leigh Wallace Fire Chief John Sullivan Police Chief Wayne Nero xxi Georgetown is the northern most “gateway” to the gently rolling hills of Central Texas. While Georgetown offers the amenities and charm of a small community rooted in values of days gone by, it is strategically and centrally located in the middle of the four major metropolitan areas of Texas. Austin is 26 miles south, Dallas is three hours north, Houston is three hours southeast and San Antonio is just one-and-a-half hours south, placing Georgetown in a very advantageous position for cultural and economic development. Traveling to and from Georgetown is easy, as it is at the crossroads of IH-35 going north/south and State Highway 29 going east/west. Access to Georgetown via the Austin-Bergstrom International Airport was made much easier with the opening of State Highway 130, the toll road from Georgetown to San Antonio that parallels IH-35. xxii This page intentionally left blank. 1 Financial Section 2 This page intentionally left blank. Weaver and Tidwell, L.L.P. 1601 South MoPac Expressway, Suite D250 | Austin, Texas 78746 Main: 512.609.1900 | Fax: 512.609.1911 CPAs AND ADVISORS | WEAVER.COM 3 Independent Auditor’s Report To the Honorable Mayor and Members of the City Council City of Georgetown, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Georgetown, Texas (the City), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The Honorable Mayor and Members of the City Council City of Georgetown, Texas 4 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, Texas Municipal Retirement System pension schedules, Other Post-employment Benefits schedules, and Modified Approach for Street Infrastructure Capital Assets as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generallys accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual major and nonmajor fund financial statements and schedules, statistical section, and schedule of expenditures of federal awards, as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual major and nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual major and nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. The Honorable Mayor and Members of the City Council City of Georgetown, Texas 5 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. WEAVER AND TIDWELL, L.L.P. Austin, Texas March 31, 2021 6 This page intentionally left blank. CITY OF GEORGETOWN, TEXAS MD&A 7 CITY OF GEORGETOWN, TEXAS MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of the City of Georgetown financial performance provides an overview of the City’s financial activities for the fiscal year ended September 30, 2020. Please read it in conjunction with the transmittal letter at the front of this report and the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS General Fund  At the end of the current fiscal year, the fund balance of the General Fund was $21,196,610 or 46.7% higher than FY 2019 fund balance. The fund had $11.8 million of committed fund balance, $245 thousand of nonspendable fund balance and $9.2 million of unassigned fund balance. Revenues were $2,904,742 more than the original budget estimates.  General Fund revenues increased $6.2 million, an increase of 9.8% over FY 2019. This increase is due to greater revenues from growth in sales tax, licenses and permits, other charges for services, environmental services rates and increased ad valorem taxes. While overall charges for services increased, Parks & Recreation and Library service fees were dramatically down for the year due to facility and program closures due to COVID-19.  General Fund expenditures increased by $3.1 million, an increase of 4.5 % over FY 2019. This increase was due to city-wide salary increases for merit and market adjustments that went into effect January 2020, increased environmental services costs, increased costs of public safety personnel. Expenditures in Parks & Recreation and the Library were also down significantly this year due to facility and program closures due to COVID-19. Governmental Activities  On a government-wide basis for governmental activities, the City had expenses net of program revenue of $59.4 million. General revenues and transfers totaled $85.9 million, resulting in an increase in net position of $26.4 million.  As of September 30, 2020, the City's governmental activities reported combined ending net position balances of $387.1 million. The largest element of this balance is the value of the City’s investment in capital assets, which totaled $334.8 million. Capital assets include the value of streets, parks and facilities, net of related debt.  During fiscal year ended September 30, 2020, the City issued approximately $9,080,000 in General Obligation and $11,210,000 Certificates of Obligation bonds for entity-wide purposes. The debt issue included $11,300,000 for roads, $4,216,000 for Public Safety Vehicles and Facilities, $550,000 for the Fuel Station Improvements, $1,000,000 for Sidewalk Improvements and $2,000,000 for Traffic Signal and Intersection Improvements. The City's general obligation debt is rated AA+ by Standard & Poor's as of September 30, 2020. Business-Type Activities  The net position of the City's business-type activities had a current year increase of $84.9 million. The current year increase is due to the continued growth of the customer base of the utility systems. The City also received $31.9 million of infrastructure assets contributed by developers for commercial projects and residential subdivisions.  The City’s Certificate of Obligation debt issue included $655,000 for the Stormwater Utility. The City also issued $14,430,000 in Utility Revenue bonds and $6,225,000 in Utility System Revenue Refunding bonds in FY20. The City’s Standard & Poor's rating is AA- on the utility system revenue debt as of September 30, 2020. CITY OF GEORGETOWN, TEXAS MD&A 8 Entity-Wide  The City's total net position on a government-wide basis was $983.1 million at September 30, 2020, an increase of 12.8% over September 30, 2019. Most of this balance is invested in capital assets or restricted for specific purposes.  The City received $68.3 million of grants and other capital contributions in FY 2020. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL FINANCIAL REPORT This Comprehensive Annual Financial Report consists of three sections: introductory, financial and statistical. As illustrated in the following chart, the financial section of this report has three components: management’s discussion and analysis (this section), the basic financial statements, and required supplementary information. Components of the Financial Section BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS The government-wide financial statements report information about the City as a whole, using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the government’s assets and liabilities. The statement of activities accounts for all of the current year’s revenues and expenses. Both are reported in full accrual basis of accounting meaning recognizing events during accounting period, regardless of when cash is received or paid. The two government-wide statements report the City’s net position and how it has changed. Net position, which is the difference between the City’s assets and deferred outflows and liabilities and deferred inflows, are one way to measure the financial health of the City. Over time, increases or decreases in the City’s net MANAGEMENT’S DISCUSSION AND ANALYSIS FINANCIAL STATEMENTS REQUIRED SUPPLEMENTARY INFORMATION Government-wide Governmental Activities (Full Accrual) Business-Type Activities (Full Accrual) Notes to the Financial Statements Fund Governmental (Modified Accrual) Proprietary (Full Accrual) Fiduciary (Full Accrual) CITY OF GEORGETOWN, TEXAS MD&A 9 position is an indicator of whether its financial health is improving or deteriorating. To assess the overall health of the City, one needs to consider other non-financial factors such as changes in the City’s property tax base and condition of the City’s infrastructure. The government-wide financial statements of the City are divided into two categories: Governmental Activities – Most of the City’s basic services are included here, such as police, fire and other public safety services, parks and recreation, public library, street maintenance, environmental services, and general administration. Property and sales taxes, return on investment from the City’s utility services, and charges for services finance most of these activities. Business-type Activities – The City’s Water Services Fund, which includes water, wastewater and irrigation services, as well as its Electric utility, are reported here. Stormwater Drainage and the City’s Airport are also reported in these activities. Rates and fees charged to customers fund the costs of providing these services. FUND FINANCIAL STATEMENTS The fund financial statements provide more detailed information about the City’s most significant funds and will be more familiar to traditional users of government financial statements. The focus is now on major funds rather than fund types. The City has three types of funds: Governmental Funds – General Fund, Special Revenue Funds, Capital Projects Funds and the Debt Service Fund are governmental funds, which focus on: (1) How cash and other financial assets can readily be converted to cash flow (in and out), and (2) Year-end balances readily available for spending. Consequently, the governmental funds statements provide a short-term view that helps determine whether there are greater or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government- wide statements, additional information is provided with the governmental fund financial statements that explain the reconciliation between the fund statements and the government-wide statements. Proprietary Funds – Services for which the City collects fees and rates intended to fully recover the cost of providing the service are reported in proprietary funds. Two types of proprietary funds are allowed in governmental accounting: enterprise funds and internal service funds. These funds, similar to government- wide statements, provide both long-term and short-term financial information. The City’s enterprise funds are substantially the same as its business-type activities, but the fund financial statements provide more detail and additional information, such as cash flows. The City uses enterprise funds to account for its electric, water services, airport, and stormwater drainage activities. The City uses internal service funds to report activities that provide supplies and services for the City’s other programs, activities and funds. The City’s internal service funds are used in providing facility maintenance, fleet services, joint services (providing administrative functions to the other funds), as well as information technology services and self-funded health insurance. CITY OF GEORGETOWN, TEXAS MD&A 10 Fiduciary Funds – The City is trustee, or fiduciary, for certain amounts held on behalf of others, and for certain pass-through arrangements. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The City’s fiduciary activities are reported in a separate statement of fiduciary net position. Assets for assessment collections for the City's public improvement districts and pass-through lease agreements for Texas Capital Fund projects are held in fiduciary funds. These fiduciary activities are excluded from the City’s government-wide financial statements because the City cannot use these assets to finance its operations. FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Statement of Net Position: The following table reflects the condensed Statement of Net Position: (Dollars in thousands)2020 2019 2020 2019 2020 2019 Current and other assets 147,474$ 131,079$ 181,143$ 123,728$ 328,617$ 254,807$ Capital assets 508,832 491,087 548,599 512,744 1,057,431 1,003,831 Total assets 656,306 622,166 729,742 636,472 1,386,048 1,258,638 Deferred outflows 12,814 14,994 3,272 4,362 16,086 19,356 Long-term liabilities 252,451 253,366 116,753 111,628 369,204 364,994 Other liabilities 19,371 19,069 17,921 17,148 37,292 36,217 Total liabilities 271,822 272,435 134,674 128,776 406,496 401,211 Deferred inflows 10,132 4,012 2,355 1,037 12,487 5,049 Net investment in capital assets 334,866 314,794 474,483 421,399 809,349 736,193 Restricted 10,218 5,992 - - 10,218 5,992 Unrestricted 42,054 39,926 121,502 89,622 163,556 129,548 Total net position 387,138$ 360,712$ 595,985$ 511,021$ 983,123$ 871,733$ Governmental Activities Business-Type Activities Total Primary Government 48% 13% 34% 1%4% Primary Government Net Position ‐ 9/30/2020 Bus Type ‐ Net Inv Assets Bus Type ‐ Unrestricted Govt ‐ Net Inv Assets Govt ‐ Restricted Govt ‐ Unrestricted CITY OF GEORGETOWN, TEXAS MD&A 11 (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Revenues Program revenues Charges for services 22,076$ 25,410$ 184,575$ 159,024$ 206,651$ 184,434$ Operating grants and contributions 5,900 225 133 - 6,033 225 Capital grants and contributions 11,143 9,890 51,191 31,950 62,334 41,840 General revenues Property taxes 33,731 30,784 - - 33,731 30,784 Sales taxes 31,845 27,647 - - 31,845 27,647 Other taxes 1,385 1,834 - - 1,385 1,834 Franchise taxes 5,883 5,646 - - 5,883 5,646 Interest 1,515 2,688 1,558 2,251 3,073 4,939 Other 2,634 2,632 - - 2,634 2,632 Total revenues 116,112 106,756 237,457 193,225 353,569 299,981 Expenses Culture/recreation 15,597 13,873 - - 15,597 13,873 Development 4,293 3,466 - - 4,293 3,466 Fire 24,265 19,530 - - 24,265 19,530 General government 6,844 5,684 - - 6,844 5,684 Interest on long-term debt 7,307 7,095 - - 7,307 7,095 Police 21,711 17,528 - - 21,711 17,528 Streets 7,924 9,651 - - 7,924 9,651 Environmental services 10,686 8,358 - - 10,686 8,358 Electric - - 79,180 81,229 79,180 81,229 Water services - - 56,355 45,507 56,355 45,507 Airport - - 3,964 4,306 3,964 4,306 Stormwater - - 4,052 3,723 4,052 3,723 Total expenses 98,627 85,185 143,551 134,765 242,178 219,950 Change in net position before transfers 17,485 21,571 93,906 58,460 111,391 80,031 Transfers 8,942 7,607 (8,942) (7,607) - - Change in net position 26,427 29,178 84,964 50,853 111,391 80,031 Net position - beginning 360,712 331,534 511,021 460,168 871,733 791,702 Net position - ending 387,139$ 360,712$ 595,985$ 511,021$ 983,124$ 871,733$ Governmental Activities Business-Type Activities Total Primary Government The City's combined net position increased by $111.4 million to $983.1 million from $871.7 million in FY 2019.  Net position of Governmental Activities was $387.1 million. Most of these assets are invested in capital assets or restricted for particular purposes, such as $2.1 million debt service or capital projects.  The City's unrestricted net position for governmental activities, which can be used to finance day-to- day operations, totaled $42 million.  Net position invested in capital assets net of related debt for governmental activities increased $20 million, primarily due to developer contributed capital and additions to capital assets.  Current year net position for business-type activities increased by $84.9 million, due to the growth in the customer base, developer contributed capital, and capital assets.  During 2020, the City invested $53 million towards improving and expansion of utility infrastructure, compared to $46.9 million in 2019. CITY OF GEORGETOWN, TEXAS MD&A 12 REVENUES  Program revenues are derived from the program itself and reduce the cost of the function to the City. Total program revenues for both governmental and business-type activities are described below.  Governmental activities program revenue for the fiscal year ended September 30, 2020 was $39.1 million. The Charges for Services category represents receipts primarily from environmental services, development and building inspection fees, parks fees, fire billing for services and court fines. Charges for services totaled $22.1 million in FY 2020, or 13% decrease over prior year revenues as a result of the COVID-19 pandemic. Other governmental program revenues included operating and capital grants and contributions for parks, fire and police programs, and streets. Capital grants and contributions totaled $10.1 million compared to $17 million last fiscal year.  Business-type activities program revenue totaled $235.8 million, a 23% increase over prior year. Capital grants and contributions were $19.3 million higher than the prior year due primarily to increase in developer contributions. Charges for Services, which represent receipts from utility customers for electric, water, and wastewater, increased $25.5 million. Electric charges for service increased 10% due to customer growth and rate increases. Other program revenues include airport fuel sales, hangar rentals and stormwater drainage fees.  General revenues are revenues from taxes levied on behalf of the general government and other revenues used for general government activities not specific to a program or service. These revenues and notable changes are described below.  Property taxes totaled $33.7 million. Included in these taxes are real and personal property levies which are assessed October 1, and payable before the following January 31.  Certified assessed valuations in FY 2020 increased 11%. The total growth in assessed valuations is $861 million compared to FY 2019 certified assessed valuations.  The ad valorem tax rate for fiscal year 2020 was $0.420 per $100 of assessed valuation. There is no change from the prior year’s rate of $0.420. The adopted tax rate is 1.63% above the 2020 effective rate. 51% 27% 9% 9%4% Primary Government Revenues Charges for Services Grants and Contributions Property taxes Sales taxes Other CITY OF GEORGETOWN, TEXAS MD&A 13  Sales taxes, the City’s second largest source of general revenue, totaled $31.8 million for fiscal year 2020, which was an increase of 15.2% compared to the prior year. This increase is primarily driven by the continued economic growth in retail, food, and information sectors. Sales tax revenues represented 27.4% of the general government revenue total in 2020, excluding the return-on-investment transfers from the utility funds.  Hotel/motel taxes totaled $985 thousand compared to $1.39 million in FY 2019 and are included in other taxes. This decrease is the result of the COVID-19 pandemic’s effects on the travel industry. EXPENSES  Expenses for governmental activities totaled $98.6 million, versus $85.1 million in FY 2019. Total expenses increased by $13.5 million compared to the prior year. Salary increases implemented during the fiscal year included step increases for public safety as well as merit and market increases for non-public safety employees effective January 2020. Other explanations for the changes are noted below.  Public Safety increased 24% due to additional positions added in the Fire, EMS and Police departments.  Environmental services increased 27.8% due to growth and increased costs in solid waste collection and recycling services.  Overall IT service allocations increased across departments due to new software applications and second year of change in allocation model to build cash reserve for future equipment replacement.  Expenses for business-type activities totaled $143.4 million, a 6.5% increase over the prior year, which provided electric, water, and wastewater services for customers, as well as airport and stormwater drainage programs. Salary increases implemented during the fiscal year included merit and market increases for employees effective January 2020. Notable explanations for the changes are explained below.  Electric decreased 2.6%. The decrease in expenses for electric is the result of improved power portfolio.  Water services increased 23.8%. The increase can be attributed to growth and increased utility contract costs and capital improvements. 33% 23%3% 7% 19% 8% 3%4% Primary Government Expenses Electric Water Other Enterprise Culture/recreation Public Safety Other Govermental Streets Environmental services CITY OF GEORGETOWN, TEXAS MD&A 14  The 8% decrease at the Airport is related to the fluctuations in the price of fuel compared to FY 2019.  Overall IT service allocations increased across departments due to new software applications and second year of change in allocation model to build cash reserve for future equipment replacement. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds: The City’s fund balance is the accumulated difference between assets and liabilities within governmental funds, and it allows the City to meet its contractual obligations, fund disaster or emergency costs, provide cash flow for timing purposes and fund non-recurring expenses appropriated by City Council. For the fiscal year ended September 30, 2020, the City's governmental funds reflect a combined fund balance of $107.5 million. The General Fund had a fund balance of $21.1 million for FY 2020, an increase of approximately $6.7 milllion over FY 2019. According to the Fiscal and Budgetary Policy of the City, the use of excess fund balance is limited to non-recurring one time only expenses. Excess funds are transferred to the Council Special Revenue fund for future designation. General Capital Project Fund had a fund balance of $38.3 million for FY 2020 compared to $43 million for FY 2019. This balance is primarily due to the nature of multi-year capital projects that will roll forward and is not available. Non-major governmental funds include an increase in fund balance of approximately $2.2 million due to the funding and timing of street improvement projects in the Sales Tax Maintenance Fund, and increased development fees and developer contributions, while hotel/motel receipts decreased due to the COVID-19 pandemic. Continued growth of sales tax receipts occurred while street maintenance expenditures were delayed due to the COVID-19 pandemic. Georgetown Transportation Enhancement Corporation (GTEC), the City’s blended component unit had a 43.3% increase in fund balance due to the timing of capital improvement projects. GTEC contributed $.4 million in transportation improvements to facilitate economic development in 2020, which was a decrease from prior year due to some projects being delayed due to the COVID-19 pandemic. Business-type Activities: The City’s proprietary fund statements provide the same type of information found in government-wide financial statements, but in more detail. Total unrestricted net position as of September 30, 2020 totaled $121.5 million, which included $10.8 million for Electric, $105.8 million for Water and $4.7 million for all other Non-Major funds. The change in net position for FY 2020 was $84.9 million resulting primarily from continued growth in the City’s utility systems, tiered rate blocks for commercial water customers and development funded capital improvements. GENERAL FUND BUDGETARY HIGHLIGHTS The original and final budget of the General Fund changed due to a budget amendment for increased sales tax collections and transfers in from the Council Discretionary fund. The variance between the actual ending fund balance at September 30, 2020 of $21.1 million and the final budgetary fund balance of $13.2 million is attributed to higher than expected sales tax, increases in licenses and permits, increase in interest income and lower expenditures. Expenditures were less than budgeted primarily due to the reduction of various programs and other expenditures due to COVID-19 pandemic. CITY OF GEORGETOWN, TEXAS MD&A 15 CAPITAL ASSETS The City's governmental activities (including the internal service funds) had invested $508 million in a variety of capital assets and infrastructure. The City has $549 million invested in its business-type activities capital assets. The detail is reflected in the following schedule: (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Land 21,773$ 21,773$ 2,836$ 2,784$ 24,609$ 24,557$ Land rights 20,939 20,939 1,723 1,723 22,662 22,662 Buildings 96,908 96,727 13,492 13,492 110,400 110,219 Furniture, machinery, and equip 27,178 26,002 3,677 3,598 30,855 29,600 Vehicles 37,744 33,480 74 74 37,818 33,554 Streets 290,706 278,204 - - 290,706 278,204 Distribution system 2,329 1,547 706,385 658,765 708,714 660,312 Bridges 7,777 7,777 - - 7,777 7,777 Improvements 65,212 53,409 6,232 6,232 71,444 59,641 Construction in progress 36,052 28,057 21,210 9,743 57,262 37,800 Accumulated depreciation (97,786) (76,828) (207,030) (183,667) (304,816) (260,495) Total capital assets 508,832$ 491,087$ 548,599$ 512,744$ 1,057,431$ 1,003,831$ Governmental Activities Business-Type Activities Total Primary Government The City prepared a complete inventory of street infrastructure assets in 2003 and 2004 and assigned a value to the inventory based upon the age of the street and construction indexes. This established a base line for inventory reporting under the modified approach for GASB 34 reporting. The Council adopted a financial policy that establishes an average condition level of 85 to maintain the streets in “good” condition. The Pavement Condition Index (PCI) is a measurement scale for pavement condition, ranging from zero (poor) to 100 for pavement in perfect condition. The PCI for fiscal years 2005-2007 was 91, 2008-2010 was 93, 87.7 in 2011-2013, 2014-2017 was 87.3 and for 2018-20 was 85.5. This decrease can be attributed to recently annexed areas with streets needing improvements. This assessment is conducted every three years with the next assessment to be done in 2021. The City budgets approximately $1.2 million annually of General Fund revenues for on-going street maintenance projects, along with the staff and maintenance costs of the street department. In addition, the City also budgets $3.1 million of funds received in dedicated 1/4 cent sales tax for street maintenance. The maintenance funds are allocated among various projects identified by the analysis to ensure funds are spent where needed to maintain the PCI adopted by Council. Street maintenance total for FY20 was $4.9 million. Utility infrastructure maintenance is budgeted within the utility funds. For fiscal year 2019, funding for electric and water services infrastructure maintenance was approximately $4.3 million. CITY OF GEORGETOWN, TEXAS MD&A 16 Major capital assets added in FY 2020 are noted below:  General Capital Projects: o Construction in process projects $31,870,930  San Gabriel Park  Fire Stations #6 & #7  ERP Project  Northwest Blvd Bridge  Old Town Northeast  Austin Avenue Bridge  Transfer Station  Southwestern Boulevard  Southeast Inner Loop  Leander Rd (Norwood-SW Bypass)  DB Wood (SH29 to OakRidge)  Downtown Landscaping & Public Art  SW Bypass – Wolf Ranch Extension  San Gabriel Park Improvements $7,381,349  Katy Crossing Trail $483,942  Austin Avenue (SH29-FM2243) $508,350  Downtown Parking Expansion $638,942  Shell Rd Sidewalk $203,755  Utility Infrastructure and Capital Projects:  Electric distribution system expansion (including developers) $4,900,954  Water and Wastewater $31,097,636 For more detailed notes about the City’s capital assets, please see Note 5 to the financial statements. OUTSTANDING DEBT (Dollars in thousands) 2020 2019 2020 2019 2020 2019 General obligation bonds 210,844$ 204,223$ 12,066$ 12,337$ 222,910$ 216,560$ Sales tax revenue bonds 4,960 5,555 - - 4,960 5,555 Revenue bonds - - 95,585 87,295 95,585 87,295 Premiums 10,346 11,176 4,379 4,778 14,725 15,954 Compensated absences payable 6,988 6,364 1,173 1,178 8,161 7,542 Net pension liability 15,129 22,723 3,549 6,040 18,678 28,763 Other post-employment benefits 4,183 3,325 - - 4,183 3,325 Total long-term liabilities 252,450$ 253,366$ 116,752$ 111,628$ 369,202$ 364,994$ Governmental Activities Business-type Activities Total Primary Government  As of September 30, 2020, the City had a total of $223 million in general obligation debt outstanding. This represents a 2.9% increase over prior year. This increase reflects $9,080,000 of 2020 General Obligation bonds and $11,210,000 of 2020 Certificates of Obligation issued in May 2020.  The state limits the legal amount of tax levy available for general obligation debt service to $1.50 per $100 valuation. The City's 2020 debt levy equaled $0.22453 per $100 assessed valuation, or 14.97% of the maximum allowed. CITY OF GEORGETOWN, TEXAS MD&A 17  Other long-term debts included are compensated absence payable, net pension obligation, and other post- employment benefits. These experienced a decrease over FY 2019 of $8.6 million due to changes in actuarial estimates of the net pension liability at September 30, 2019. A detailed analysis of the City’s other long-term debt liabilities are located in Note 6.A., Note 7 and Note 8.  In May 2020, the City issued $11.21 million in Combination Tax and Revenue Certificates of Obligation and $9.08 million in General Obligation bonds for Public Safety Equipment & Vehicles, Sidewalks, Traffic Signal and Intersection Improvements, Fuel Station improvements, and Stormwater equipment and projects.  A detailed analysis of the City’s long-term debt is located in Note 6 to the financial statements. ECONOMIC FACTORS During FY 2020, the City continued to see some improvements in the local and regional economy despite the COVID-19 pandemic. Total sales tax receipts grew to $31.8 million, or by 15.2% over 2019. The growth in residential and commercial development continued in FY 2020, while unemployment increased to 6.7% in 2020 from 2.4% in 2019. The residential growth in the City’s utility service area, which includes both the city limits and the City’s extra territorial jurisdiction (ETJ), continued at a steady 5% growth rate. The adopted FY 2021 budget assumes continued modest growth in new property of approximately $461 million and an adopted tax rate of $0.418 per $100 valuation. Sales taxes are projected conservatively since the state’s overall trend has slowed down due to the pandemic. A modest growth trend is also anticipated in the City’s utility funds. DISCRETELY PRESENTED COMPONENT UNIT The Georgetown Economic Development Corporation (GEDCO) has been included in the reporting entity as a discretely presented component unit since it provides benefits to other entities aside from the City. Separate audited financial statements are not issued for GEDCO. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This report is designed to provide City Council, citizens, customers, bond rating agencies, investors and creditors with a general overview of the City’s finances. If you have questions about this report or need additional financial information, contact: Finance Division City of Georgetown 808 Martin Luther King St Georgetown, Texas 78626 (512) 930-6534 www.georgetown.org finance@georgetown.org 18 This page intentionally left blank. 19 Basic Financial Statements City of Georgetown, Texas Statement of Net Position September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 20 Component Unit Georgetown Economic Governmental Business-type Development Activities Activities Total Corporation Cash and cash equivalents 35,142,568 59,067,573 94,210,141$ 971,029$ Cash and cash equivalents - restricted - - - - Investments 95,054,500 53,294,913 148,349,413 7,782,214 Investments - restricted - 33,006,748 33,006,748 - Prepaid items 401,733 7,192,779 7,594,512 - Accounts receivable Services (net of allowance for uncollectibles) 1,661,654 23,047,556 24,709,210 - Taxes and other 11,734,952 2,061,313 13,796,265 370,626 Internal balances - - - - Inventories 611,835 2,729,317 3,341,152 - Long-term note receivable 2,839,635 588,806 3,428,441 - Capital assets Land 21,772,554 2,835,683 24,608,237 - Land rights 20,938,510 1,723,151 22,661,661 - Buildings 96,908,069 13,492,399 110,400,468 - Furniture, machinery, and equipment 27,178,313 3,677,119 30,855,432 - Vehicles 37,743,709 74,230 37,817,939 - Streets 290,705,767 - 290,705,767 - Distribution system 2,329,890 706,384,574 708,714,464 - Bridges 7,777,022 - 7,777,022 - Improvements 65,212,549 6,231,935 71,444,484 139,740 Construction in progress 36,052,018 21,209,766 57,261,784 - Accumulated depreciation (97,786,253) (207,029,938) (304,816,191) - Total assets 656,279,025 729,587,924 1,385,866,949 9,263,609 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow related to pension 10,841,173 2,542,992 13,384,165 - Deferred outflow related to OPEB 688,023 - 688,023 - Deferred charge on refunding 1,284,789 728,573 2,013,362 - Total deferred outflows of resources 12,813,985 3,271,565 16,085,550 - LIABILITIES Accounts payable 13,615,643 14,235,940 27,851,583 10,000 Unearned revenue 4,690,624 397,414 5,088,038 - Accrued interest 1,065,163 441,689 1,506,852 - Payable from restricted assets Construction contracts and retainages - 1,074,426 1,074,426 - Customer deposits payable from restricted assets - 1,618,144 1,618,144 - Noncurrent liabilities, due within one year 18,646,252 8,989,526 27,635,778 201,475 Noncurrent liabilities, due in more than one year Accrued employee benefits 4,734,222 652,127 5,386,349 - Net pension liability 15,129,088 3,548,799 18,677,887 - Other post employment benefits 4,183,335 - 4,183,335 - Long-term debt 209,757,718 103,562,094 313,319,812 2,954,050 Total liabilities 271,822,045 134,520,159 406,342,204 3,165,525 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 10,038,493 2,354,708 12,393,201 - Deferred inflows related to OPEB 93,813 - 93,813 - Total deferred inflows of resources 10,132,306 2,354,708 12,487,014 - NET POSITION Net investment in capital assets 334,866,278 474,482,607 809,348,885 139,740 Restricted for Debt service 2,110,178 - 2,110,178 - Specific programs 8,107,583 - 8,107,583 - Unrestricted 42,054,620 121,502,015 163,556,635 5,958,344 TOTAL NET POSITION 387,138,659$ 595,984,622$ 983,123,281$ 6,098,084$ Primary Government ASSETS City of Georgetown, Texas Statement of Activities For the Fiscal Year Ended September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 21 Component UnitGeorgetownEconomicCharges for Operating Grants Capital Grants Governmental Business-type DevelopmentExpenses Services & Contributions & Contributions Activities Activities Total CorporationPRIMARY GOVERNMENTGovernmental activitiesCulture / recreation15,598,354$ 1,918,354$ 443,389$ 1,080,425$ (12,156,186)$ -$ (12,156,186)$ Development4,293,027 5,622,473 - 180,183 1,509,629 - 1,509,629 Fire24,264,619 2,806,272 4,735,355 - (16,722,992) - (16,722,992) General government6,844,030 1,032,226 159,506 19,360 (5,632,938) - (5,632,938) Police21,710,738 478,602 412,151 - (20,819,985) - (20,819,985) Streets7,923,523 - 150,000 9,862,711 2,089,188 - 2,089,188 Environmental services10,686,467 10,218,066 - - (468,401) - (468,401) Interest on long-term debt7,306,732 - - - (7,306,732) - (7,306,732) Total governmental activities98,627,490 22,075,993 5,900,401 11,142,679 (59,508,417) - (59,508,417) Business-type activitiesElectric79,179,630 94,842,210 1,860 6,531,987 - 22,196,427 22,196,427 Water56,354,897 82,288,865 338 31,198,103 - 57,132,409 57,132,409 Airport3,964,161 3,284,729 129,193 - - (550,239) (550,239) Stormwater4,052,203 4,159,000 1,280 13,460,732 - 13,568,809 13,568,809 Total business-type activities143,550,891 184,574,804 132,671 51,190,822 - 92,347,406 92,347,406 TOTAL PRIMARY GOVERNMENT242,178,381$ 206,650,797$ 6,033,072$ 62,333,501$ (59,508,417) 92,347,406 32,838,989 COMPONENT UNIT - GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION1,240,437$ -$ -$ -$ (1,240,437)$ General RevenuesProperty tax33,731,126 - 33,731,126 - Sales tax31,845,454 - 31,845,454 2,122,831Franchise taxes5,882,916 - 5,882,916 - Taxes - other1,384,656 - 1,384,656 - Investment income1,514,798 1,558,167 3,072,965 99,218Other2,633,974 - 2,633,974 - Transfers8,941,958(8,941,958) - - Total general revenues and transfers 85,934,882 (7,383,791) 78,551,091 2,222,049 Change in net position 26,426,465 84,963,615 111,390,080 981,612 Net position, beginning of the year 360,712,194 511,021,007 871,733,201 5,116,472 NET POSITION, END OF THE YEAR387,138,659$ 595,984,622$ 983,123,281$ 6,098,084$ Net (Expense) Revenue andProgram Revenues Changes in Net PositionPrimary GovernmentFunctions/Programs 22 This page intentionally left blank. 23 Fund Financial Statements City of Georgetown, Texas Balance Sheet – Governmental Funds September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 24 Georgetown Transportation General Nonmajor Total Enhancement Debt Capital Governmental Governmental General Corporation Service Projects Funds Funds ASSETS Cash and cash equivalents 10,165,423$ 1,411,887$ -$ 4,677,085$ 8,256,442$ 24,510,837$ Investments 9,014,620 27,923,462 2,193,691 39,172,838 7,289,185 85,593,796 Accounts receivable, net Property taxes 215,428 - 203,115 - 677 419,220 Sales tax 3,939,129 1,514,503 - - 757,252 6,210,884 Grants 776,141 - - 334,845 10,810 1,121,796 Other 3,314,550 120,864 - - 1,680,011 5,115,425 Due from other funds 932,919 102,168 67,000 - - 1,102,087 Notes receivable 250,229 - - - 2,823 253,052 Prepaid items - - - 20,930 - 20,930 TOTAL ASSETS 28,608,439$ 31,072,884$ 2,463,806$ 44,205,698$ 17,997,200$ 124,348,027$ LIABILITIES Accounts payable and accrued liabilities 6,508,841$ 43,184$ 8,008$ 2,671,256$ 1,374,880$ 10,606,169$ Due to other funds 67,000 - 345,620 102,168 587,299 1,102,087 Unearned revenue 620,560 - - 3,096,178 1,050,417 4,767,155 Total liabilities 7,196,401 43,184 353,628 5,869,602 3,012,596 16,475,411 DEFERRED INFLOWS OF RESOURCES Deferred property taxes 215,428 - 203,116 - 676 419,220 Total deferred inflows of resources 215,428 - 203,116 - 676 419,220 FUND BALANCE Nonspendable 245,067 - - 20,930 - 265,997 Restricted - - 1,907,062 38,315,166 8,107,583 48,329,811 Committed 11,754,340 31,029,700 - - 6,876,345 49,660,385 Assigned - - - - - - Unassigned 9,197,203 - - - - 9,197,203 Total fund balance 21,196,610 31,029,700 1,907,062 38,336,096 14,983,928 107,453,396 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE 28,608,439$ 31,072,884$ 2,463,806$ 44,205,698$ 17,997,200$ 124,348,027$ City of Georgetown, Texas Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 25 Total fund balance - total governmental funds 107,453,396$ The City uses internal service funds to charge the costs of certain activities, such as capital assets, administrative services and information technology to the City's other funds. The assets and liabilities of the internal service funds are included in governmental functions in the 37,041,859 statement of net position. Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet.490,231,675 Long-term debt is not due and payable using available resources and is not recorded in the governmental funds balance sheet. The impact of recognizing long-term debt, and related items is as follows: Bonds payable (215,803,700) Premiums on bond issuance (10,346,249) Deferred charge on refunding bonds 1,284,789 Accrued interest (1,026,736) Other long-term liabilities, and related amounts, are not due and payable using available resources and are not recorded in the governmental funds balance sheet. The impact of recognizing these items is as follows: Compensated absences (6,710,062) Net pension liability (15,129,088) Deferred outflow related to pension 10,841,173 Deferred inflow related to pension (10,038,493) Other post-employment benefits (4,183,335) Deferred outflow related to other post-employment benefits 688,023 Deferred inflow related to other post-employment benefits (93,813) Revenues from property taxes are deferred in the governmental fund balance sheet until they are considered available to fund current expenditures, but such revenues are recognized in the government-wide statements.419,220 Some long-term receivables are not recognized in the governmental fund balance sheet until the funds are considered available to fund current expenditures. 2,510,000 Net position of governmental activities 387,138,659$ Amounts reported for governmental activities in the statement of net position are different because: City of Georgetown, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds For the Fiscal Year Ended September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 26 Georgetown Transportation General Nonmajor Total General Enhancement Debt Capital Governmental Governmental Fund Corporation Service Projects Funds Funds REVENUES Property taxes 15,060,591$ -$ 17,000,000$ -$ 1,747,990$ 33,808,581$ Sales tax 19,108,464 8,491,328 - - 4,245,662 31,845,454 Franchise taxes 5,757,843 - - - 125,073 5,882,916 Other taxes 399,896 - - - 984,760 1,384,656 Licenses and permits 3,435,817 - - - - 3,435,817 Charges for service 17,296,439 - - 26,582 918,148 18,241,169 Fines and forfeitures 363,513 - - - 35,494 399,007 Donations and grants 5,516,767 - - - 1,590,320 7,107,087 Investment income 244,164 272,223 69,408 547,254 196,843 1,329,892 Other revenue 122,888 - 3,167 - 620,514 746,569 Total revenues 67,306,382 8,763,551 17,072,575 573,836 10,464,804 104,181,148 EXPENDITURES Current Culture / recreation 10,485,028 - - - 1,690,630 12,175,658 Development 3,380,104 383 - - 62,718 3,443,205 Fire services 19,557,377 - - - 263,885 19,821,262 General government 4,815,269 409,423 - 35,755 152,888 5,413,335 Highways and streets 3,812,705 60,681 - - 978,704 4,852,090 Police 17,188,341 - - - 188,075 17,376,416 Environmental services 8,450,680 - - - 87,277 8,537,957 Capital outlay 1,213,733 370,569 - 18,111,164 4,012,504 23,707,970 Debt service Principal retirement - 595,000 12,889,534 - - 13,484,534 Interest and fiscal charges - 284,100 7,356,619 126,558 - 7,767,277 Total expenditures 68,903,237 1,720,156 20,246,153 18,273,477 7,436,681 116,579,704 Excess (deficiency) of revenues over (under) expenditures (1,596,855) 7,043,395 (3,173,578) (17,699,641) 3,028,123 (12,398,556) OTHER FINANCING SOURCES (USES) Transfers in 8,877,033 - 3,076,444 1,262,000 387,000 13,602,477 Transfers out (524,860) (2,403,361) - (3,204,546) (1,199,717) (7,332,484) Issuance of bonds - 4,740,000 - 14,895,000 - 19,635,000 Total other financing sources (uses) 8,352,173 2,336,639 3,076,444 12,952,454 (812,717) 25,904,993 Net change in fund balances 6,755,318 9,380,034 (97,134) (4,747,187) 2,215,406 13,506,437 FUND BALANCES, beginning of year 14,441,292 21,649,666 2,004,196 43,083,283 12,768,522 93,946,959 FUND BALANCES, end of year 21,196,610$ 31,029,700$ 1,907,062$ 38,336,096$ 14,983,928$ 107,453,396$ City of Georgetown, Texas Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities – Governmental Funds For the Fiscal Year Ended September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 27 13,506,437$ The City uses internal service funds to charge the costs of certain activities, such as fleet management and information technology to appropriate functions in other funds. The change in net position of internal service funds is recognized in governmental actvities in the statement of activities.4,426,485 Current year capital outlays are expenditures in the fund statements, but are shown as increases in capital assets in the government-wide financial statements. The effect of removing the current year capital outlays is to increase net position. Depreciation is not recognized as an expenditure in governmental funds since it does not require the use of current financial resources. Capital outlay 22,996,669 Depreciation (17,145,639) Capital assets contributed or donated to the City are not recognized in governmental funds since they do not provide current financial resources, but are recognized in the statement of activities as program revenues 10,218,066 Proceeds from issuance of long-term debt are recognized as other financing sources in the governmental funds, but are treated as an increase in liabilities in the governmental activities. Principal payments on long-term debt are recognized as expenditures in the governmental funds, but are treated as reductions of liabilities in the governmental activities. Deferred charges on refunding bonds are recognized in the governmental activities, and amortized with the related long-term debt. Premiums on long-term debt issuances are recognized as other financing sources in the governmental funds, but are presented as a component of long-term debt and amortized in the governmental activities. Bond payments 13,609,534 Issuance of bonds (19,635,000) Amortization of bond premiums 829,736 Amortization of deferred charge on refunding (293,911) Interest is accrued on outstanding debt in the governmental activities statement of net position, but in the governmental fund financial statements the expenditure is reported when due.(75,280) Compensated absences, other post-employment benefit obligations, pension liability, and related deferred inflows and outflows of resources are not recognized in the governmental funds as they will not be settled with current financial resources; however these obligations are recognized in the governmental activities statement of net position. The change in these amounts for the current year is: Net pension liability 7,593,704 Deferred outflow related to pension (2,407,721) Deferred inflow related to pension (6,136,910) Other post employment benefits (858,760) Deferred outflow related to other post-employment benefits 521,901 Deferred inflow related to other post-employment benefits 16,874 Compensated absences (537,264) Changes to revenue deferred in the governmental funds but recognized in the governmental activities and to long-term note receivables not recorded in the governmental funds for the current year are: Long-term receivable (125,000) Unavailable property taxes (77,456) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 26,426,465$ NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS Amounts reported for governmental activities in the statement of activities are different because: City of Georgetown, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – General Fund For the Fiscal Year Ended September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 28 Actual Variance to Budgetary Final Original Final Basis Budget REVENUES Property taxes 14,900,000$ 14,960,000$ 15,125,579$ 165,579$ Sales tax 17,859,375 17,861,875 19,108,465 1,246,590 Franchise taxes 5,890,270 5,910,270 5,757,843 (152,427) Other taxes 435,000 435,000 399,896 (35,104) Licenses and permits 3,344,250 3,969,250 5,434,776 1,465,526 Charges for services 20,859,122 20,337,682 19,448,361 (889,321) Fines and forfeitures 352,250 352,250 298,524 (53,726) Investment income 170,000 170,000 244,164 74,164 Miscellaneous 3,309,980 3,748,920 4,207,381 458,461 Total revenues 67,120,247 67,745,247 70,024,989 2,279,742 EXPENDITURES Culture / recreation 11,741,616 11,841,495 10,493,091 1,348,404 Development 3,574,713 3,808,610 3,380,754 427,856 Fire services 20,248,024 20,337,410 19,670,776 666,634 General government 7,002,832 7,324,682 7,532,998 (208,316) Highways and streets 5,869,090 6,730,065 4,807,705 1,922,360 Police services 17,886,900 18,107,997 17,285,839 822,158 Environmental services 8,525,875 8,532,355 8,450,680 81,675 Total expenditures 74,849,050 76,682,615 71,621,844 5,060,771 Excess (Deficiencies) of revenues over expenditures (7,728,803) (8,937,368) (1,596,855) 7,340,512 OTHER FINANCING SOURCES (USES) Transfers in 8,363,634 8,433,100 8,877,033 (443,933) Transfers out (524,860) (524,860) (524,860) - Total other financing sources (uses) 7,838,774 7,908,240 8,352,173 443,933 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)109,971 (1,029,128) 6,755,318 7,784,445 Fund balances, beginning of year 10,463,385 14,263,750 14,441,292 177,542 FUND BALANCES, end of year 10,573,356$ 13,234,622$ 21,196,610$ 7,961,987$ Budgeted Amounts City of Georgetown, Texas Statement of Net Position Proprietary Funds September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 29 Governmental Activities ASSETS CURRENT ASSETS Cash and cash equivalents 2,410,678$ 54,747,336$ 1,909,559$ 59,067,573$ 10,648,991$ Cash and cash equivalents - restricted - - 914,000 914,000 - Investments 2,137,771 48,549,524 1,693,618 52,380,913 9,443,444 Investments - restricted 11,001,085 22,005,663 - 33,006,748 - Prepaid expenses 3,574,070 3,409,642 209,067 7,192,779 380,803 Accounts receivable, net Services 13,683,496 8,679,382 684,678 23,047,556 99,131 Grants 8,095 6,257 6,297 20,649 125,348 Other 1,370,216 636,081 34,367 2,040,664 304,802 Due from other funds - 10,964 - 10,964 - Inventories 2,691,227 - 38,090 2,729,317 611,835 Total current assets 36,876,638 138,044,849 5,489,676 180,411,163 21,614,354 NONCURRENT ASSETS Long-term note receivables 43,754 542,424 2,628 588,806 76,583 Capital assets Land 635,073 1,559,074 641,536 2,835,683 695,993 Land rights 153,607 66,006 1,503,538 1,723,151 - Buildings 24,637 9,611,544 3,856,218 13,492,399 510,121 Furniture, machinery, and equipment 1,623,499 1,631,732 421,888 3,677,119 12,119,821 Vehicles 13,346 46,834 14,050 74,230 37,278,627 Distribution system 186,808,859 442,683,102 76,892,613 706,384,574 1,701,989 Improvements 173,421 219,995 5,838,519 6,231,935 1,161,233 Construction in progress 1,370,187 19,447,616 391,963 21,209,766 - Less accumulated depreciation (65,764,186) (117,521,647) (23,744,105) (207,029,938) (34,867,311) Total capital assets (net of accumulated depreciation)125,038,443 357,744,256 65,816,220 548,598,919 18,600,473 Total noncurrent assets 125,082,197 358,286,680 65,818,848 549,187,725 18,677,056 TOTAL ASSETS 161,958,835 496,331,529 71,308,524 729,598,888 40,291,410 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow related to pension 1,204,575 1,070,733 267,684 2,542,992 - Deferred charge on refunding 383,386 319,366 25,821 728,573 - Total deferred outflows of resources 1,587,961 1,390,099 293,505 3,271,565 - TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 163,546,796$ 497,721,628$ 71,602,029$ 732,870,453$ 40,291,410$ Internal Service Funds Water Services Fund Electric Fund Total Nonmajor Enterprise Funds City of Georgetown, Texas Statement of Net Position – Continued Proprietary Funds September 30, 2020 30 Governmental Activities CURRENT LIABILITIES Accounts payable 9,077,324$ 4,894,662$ 263,954$ 14,235,940$ 2,971,369$ Accrued employee benefits 246,147 240,168 34,951 521,266 122,586 Due to other funds - - 10,964 10,964 - Unearned revenue 21,222 354,122 22,070 397,414 - Current portion of long-term debt 2,831,509 4,828,521 409,169 8,069,199 - Accrued interest 150,728 263,571 27,390 441,689 - Construction contracts and retainages payable 3,375 1,071,051 - 1,074,426 - Customer deposits 1,383,703 228,395 6,046 1,618,144 - Total current liabilities 13,714,008 11,880,490 774,544 26,369,042 3,093,955 NONCURRENT LIABILITIES Accrued employee benefits 311,450 296,725 43,952 652,127 155,596 Long-term debt 33,558,003 64,451,494 5,951,658 103,961,155 - Net pension liability 1,681,010 1,494,231 373,558 3,548,799 - Total noncurrent liabilities 35,550,463 66,242,450 6,369,168 108,162,081 155,596 TOTAL LIABILITIES 49,264,471 78,122,940 7,143,712 134,531,123 3,249,551 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 1,115,388 991,456 247,864 2,354,708 - TOTAL DEFERRED INFLOWS OF RESOURCES 1,115,388 991,456 247,864 2,354,708 - NET POSITION Net investment in capital assets 102,291,659 312,709,734 59,481,214 474,482,607 18,600,473 Unrestricted 10,875,278 105,897,498 4,729,239 121,502,015 18,441,386 TOTAL NET POSITION 113,166,937 418,607,232 64,210,453 595,984,622 37,041,859 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 163,546,796$ 497,721,628$ 71,602,029$ 732,870,453$ 40,291,410$ Electric Fund Water Services Fund Nonmajor Enterprise Funds Total Internal Service Funds City of Georgetown, Texas Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For the Fiscal Year Ended September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 31 Governmental Activities OPERATING REVENUES Service charges Electric 85,733,317$ -$ -$ 85,733,317$ -$ Water - 35,208,127 - 35,208,127 - Wastewater - 14,282,982 - 14,282,982 - Other 1,143,781 7,372,343 7,385,691 15,901,815 41,465,581 Total operating revenues 86,877,098 56,863,452 7,385,691 151,126,241 41,465,581 OPERATING EXPENSES Electric 16,563,721 - - 16,563,721 1,043,323 Water - 24,778,226 - 24,778,226 - Wastewater - 5,104,410 - 5,104,410 - Depreciation 1,758,117 10,985,196 2,385,500 15,128,813 3,309,227 Utility contracts 59,684,306 6,599,573 - 66,283,879 - Plant management - 6,768,035 - 6,768,035 - Other - - 5,412,822 5,412,822 37,073,676 Total operating expenses 78,006,144 54,235,440 7,798,322 140,039,906 41,426,226 NET OPERATING INCOME (LOSS)8,870,954 2,628,012 (412,631) 11,086,335 39,355 NONOPERATING REVENUES (EXPENSES) Investment income 13,530 1,490,887 53,750 1,558,167 184,906 Donations and grants 1,860 338 130,470 132,668 - Interest and fiscal charges (1,173,486) (2,119,457) (218,039) (3,510,982) - Gain(loss) on disposed assets 4,569,628 (2,941,233) 450 1,628,845 193,714 Other 3,395,484 28,366,646 57,588 31,819,718 1,336,545 Total nonoperating revenues (expenses) 6,807,016 24,797,181 24,219 31,628,416 1,715,165 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS 15,677,970 27,425,193 (388,412) 42,714,751 1,754,520 CONTRIBUTIONS AND TRANSFERS Capital contributions 6,531,987 31,198,103 13,460,732 51,190,822 - Transfers in 500,000 - - 500,000 3,949,465 Transfers out (4,829,792) (4,183,560) (428,606) (9,441,958) (1,277,500) Total contributions and transfers 2,202,195 27,014,543 13,032,126 42,248,864 2,671,965 Change in net position 17,880,165 54,439,736 12,643,714 84,963,615 4,426,485 Net position, beginning of period 95,286,772 364,167,496 51,566,739 511,021,007 32,615,374 TOTAL NET POSITION, end of period 113,166,937$ 418,607,232$ 64,210,453$ 595,984,622$ 37,041,859$ Electric Fund Total Internal Service Funds Nonmajor Enterprise Funds Water Services Fund City of Georgetown, Texas Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 32 Governmental Water Nonmajor Activities Electric Services Enterprise Internal Fund Fund Funds Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 91,538,172$ 85,673,143$ 6,276,900$ 183,488,215$ 42,625,557$ Payments to suppliers (76,971,935) (34,313,644) (3,472,056) (114,757,635) (33,244,842) Payments to employees for services (3,276,924) (1,222,471) (728,703) (5,228,098) (3,628,731) Net cash provided by operating activities 11,289,313 50,137,028 2,076,141 63,502,482 5,751,984 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 500,000 - - 500,000 3,949,465 Transfers out (4,829,792) (4,183,560) (428,606) (9,441,958) (1,277,500) Net cash provided by (used in) noncapital financing activities (4,329,792) (4,183,560) (428,606) (8,941,958) 2,671,965 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets - (6,338,040) (1,131,838) (7,469,878) (5,166,917) Proceeds on sale of capital assets 7,070,053 - - 7,070,053 - Donations and grants 1,860 338 130,470 132,668 - Proceeds from issuance of long-term debt 5,055,000 9,375,000 607,171 15,037,171 - Principal paid on revenue and certificates of obligation bonds (2,862,035) (4,222,329) (332,350) (7,416,714) - Interest paid on revenue and certificates of obligation bonds (1,175,781) (2,124,753) (218,874) (3,519,408) - Net cash provided by (used in) capital and related financing activities 8,089,097 (3,309,784) (945,421) 3,833,892 (5,166,917) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 13,530 1,490,887 53,750 1,558,167 184,906 Change in temporary investments (12,939,064) (37,276,329) (206,481) (50,421,874) (2,512,093) Net cash provided by (used in) investing activities (12,925,534) (35,785,442) (152,731) (48,863,707) (2,327,187) Net change in cash and cash equivalents 2,123,084 6,858,242 549,383 9,530,709 929,845 CASH AND CASH EQUIVALENTS, beginning of year 287,594 47,889,094 2,274,176 50,450,864 9,719,146 CASH AND CASH EQUIVALENTS, end of year 2,410,678$ 54,747,336$ 2,823,559$ 59,981,573$ 10,648,991$ CLASSIFIED AS Current assets 2,410,678$ 54,747,336$ 1,909,559$ 59,067,573$ 10,648,991$ Restricted assets - - 914,000 914,000 - TOTAL 2,410,678$ 54,747,336$ 2,823,559$ 59,981,573$ 10,648,991$ NON-CASH DISCLOSURE CAPITAL CONTRIBUTIONS 6,531,987$ 31,198,103$ 13,460,732$ 51,190,822$ -$ OPERATING INCOME (LOSS)8,870,954$ 2,628,012$ (412,631)$ 11,086,335$ 39,355$ Adjustments to reconcile operating income (loss) to cash provided by operating activities Depreciation 1,758,117 10,985,196 2,385,500 15,128,813 3,309,225 Gain/loss on disposal of asset 4,569,628 (2,941,233) - 1,628,395 - Other income 3,395,484 28,366,646 58,038 31,820,168 1,530,259 Decrease (increase) in prepaid expenses 1,365,141 (105,464) 88,859 1,348,536 61,823 Decrease (increase) in inventories (532,339) - (392) (532,731) 234,281 Decrease (increase) in accounts receivable 1,774,033 318,621 (241,466) 1,851,188 (139,434) Increase (decrease) in due to/from other funds (9,071,579) 9,085,418 10,964 24,803 - Increase (decrease) in accounts payable (190,748) 1,421,558 153,809 1,384,619 860,780 Increase (decrease) in customer deposits (509,344) 228,395 6,046 (274,903) - Increase (decrease) in unearned revenue 901 124,424 - 125,325 (230,849) Increase (decrease) in net pension liability (156,307) 44,021 28,959 (83,327) - Increase (decrease) in accrued employee benefits 15,372 (18,566) (1,545) (4,739) 86,544 NET CASH PROVIDED BY OPERATING ACTIVITIES 11,289,313$ 50,137,028$ 2,076,141$ 63,502,482$ 5,751,984$ City of Georgetown, Texas Statement of Fiduciary Net Position Agency Funds September 30, 2020 The Notes to the Financial Statements are an integral part of this statement. 33 ASSETS Cash and cash equivalents 405,788$ TOTAL ASSETS 405,788$ LIABILITIES Accounts payable 405,788$ TOTAL LIABILITIES 405,788$ 34 This page intentionally left blank. 35 Notes Section 36 This page intentionally left blank. City of Georgetown, Texas Notes to the Financial Statements 37 Note 1. Summary of Significant Accounting Policies The accounting and reporting policies of the City of Georgetown, Texas, (the City), included in the accompanying basic financial statements conform to the generally accepted accounting principles (GAAP) applicable to state and local governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following notes to the financial statements are an integral part of the City's Comprehensive Annual Financial Report. A. Reporting Entity The City of Georgetown was incorporated under the laws of the State of Texas in 1848 and operates under a Council-Manager form of government. The City’s financial statements include the accounts of all City operations. Generally accepted accounting principles require all funds that are controlled by or are dependent on the City Council to be included in the City’s financial statements. The reporting entity is the primary government, or the City, and those component units for which the primary government is financially accountable. Financial accountability is defined as the appointment of a voting majority of the potential component unit‘s board and either the ability to impose its will by the primary government or the possibility that the component unit will provide a financial benefit or impose a financial burden on the primary government. Blended component units, although legally separate entities are, in substance, part of the government’s operations and so data from these units are combined with the data of the primary government. Based upon these considerations, the City’s financial statements include the Georgetown Transportation Enhancement Corporation (GTEC) as a blended component unit. Discretely presented component units, on the other hand, are reported in a separate column in the government- wide financial statements to emphasize they are legally separate from the primary government, and whose exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Based upon these considerations, the City’s financial statements include the Georgetown Economic Development Corporation (GEDCO) as a discretely presented component unit. Blended Component Unit GTEC, the City’s 4B economic development corporation, is a legally separate entity from the City that was created in May 2001 by voters approving an additional sales tax. GTEC is governed by a seven-member board appointed by City Council, of which two are Council members. The City Council maintains budgetary control over the corporation. The City Manager serves as the General Manager of the corporation and the City’s Finance Director acts as the Financial Manager. For financial reporting purposes, GTEC is presented as a blended component unit within City operations because its sole purpose is to utilize sales tax revenues for the improvement of the City’s transportation system. The revenues and expenditures for GTEC are accounted for in a general capital projects fund. The City issues debt on behalf of GTEC in exchange for pledged sales tax revenue that is transferred to the City to reimburse for debt service related to the bonds. GTEC’s debt is shown in the Governmental Activities in the Statement of Net Position. Discretely Presented Component Unit GEDCO has been included in the reporting entity as a discretely presented component unit. GEDCO cannot be considered a blended component unit because the revenues are not only for the benefit of the City. GEDCO was created by the City in May 2005, under the Texas Development Act of 1979 for the purpose of promoting, assisting, and enhancing economic and development activities on behalf of the City. It is funded through voter authorized sales tax. The seven member Board, which includes two City Council members, is appointed by and serves at the discretion of the City Council. City Council approval is required for annual budgets and bonded debt issuance, therefore the City can impose its will on GEDCO. In the event of dissolution, net assets of GEDCO shall be converted to the City. Accordingly, the City accounts for GEDCO as a discretely presented component unit on the government-wide financial statements. City of Georgetown, Texas Notes to the Financial Statements 38 GEDCO is audited as part of the City of Georgetown; however, separately issued unaudited financial statements are available through the City of Georgetown’s Finance Department. Related Organizations The Mayor and City Council are responsible for appointing a voting majority of the members of some local boards and commissions, but the City's accountability for these organizations does not extend beyond making the appointments. These entities are the Georgetown Industrial Development Corporation, Georgetown Hospital Authority, Georgetown Housing Authority, and Georgetown Higher Education Finance Corporation. B. Basis of Presentation Basic Financial Statements The basic financial statements include both government-wide financial statements (based on the City as a whole) and fund financial statements. Both sets of financial statements classify activities as either governmental, which are supported by taxes and intergovernmental revenues, or business-type activities, which rely on fees and charges for support. Government-Wide Financial Statements The government-wide Statement of Activities demonstrates the degree to which the direct expenses of a given program or function is offset by the program’s revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given program and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Taxes and other items not properly included among program revenues are reported instead as general revenues. The effect of interfund activity within the governmental and business-type activities columns has been removed from these statements. Fund Financial Statements The City segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Each fund is considered a separate accounting entity and the operations of each fund are accounted for using a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Separate statements are presented for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. These statements present each major fund as a separate column on the fund financial statements; all non-major funds are aggregated and presented in a single column. The government-wide focus is on the sustainability of the City as an entity and the change in net financial position resulting from the activities of the fiscal period. The focus of the fund financial statements is on the major individual funds of the governmental and business-type categories. Each presentation provides a different focus, which allows the reader to compare and analyze the information to enhance the usefulness of the statements. City of Georgetown, Texas Notes to the Financial Statements 39 Governmental Fund Types Governmental Funds are those funds through which most governmental functions typically are financed. The measurement focus of governmental funds (in the fund financial statements) is on the sources, uses, and balance of current financial resources and include the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Fund. The individual funds are described as follows: Major Governmental Funds General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Georgetown Transportation Enhancement Corporation – This capital projects fund is used to account for the City’s 4B Corporation activities, created to administer the voter approved half-cent sales tax for transportation improvements that aid in economic development efforts. Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. General Capital Projects Fund – This capital projects fund is used to account for financial resources to be used for the acquisition or construction of parks, buildings, and other facilities. Such resources are derived from proceeds of general obligation bonds or other sources of revenue specifically set aside for capital projects. Nonmajor Governmental Funds Special Revenue Funds – The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are restricted to expenditures for specified purposes. Proprietary Fund Types The Proprietary Fund Types are used to account for the City's organization and activities which are similar to those often found in the private sector. These funds are financed and operated in a manner similar to private business enterprises – where the intent of the City is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered mainly through user charges; or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principal on-going operations. Operating expenses for the proprietary funds include the cost of personnel and contractual services, supplies and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Major Proprietary Funds Electric Fund – This fund accounts for the City’s electric utility, including operations, maintenance of the infrastructure and expansion of the system within the City’s service territory. Water Services Fund – This fund accounts for the City’s water, sewer and water reuse systems, including operations, contracted maintenance, internal maintenance, expansion of the system within the City’s service territory and the costs of environmental mandates that arise. City of Georgetown, Texas Notes to the Financial Statements 40 Non-Major Proprietary Funds Enterprise Funds – The funds that are operated as enterprise funds within the City but are not considered major funds are the Stormwater Drainage and Airport Funds. Internal Service Funds – The Internal Service Funds, which provide services primarily to other funds of the government, are presented in the summary form as part of the proprietary fund financial statements. The financial statements of the internal service funds are allocated in the governmental column when presented at the government-wide level. Various operations are accounted for as internal service funds, such as operational costs associated with automobile and heavy equipment owned by the City and made available to various departments, costs related to maintaining and repairing City owned facilities, operational costs associated with the City's computer equipment within various departments, as well as jointly shared administrative departments. Fiduciary Fund Type – Agency Funds The City’s fiduciary fund is presented in the fund financial statements by type. Since by definition, these assets are being held for the benefit of a third party and cannot be used to address activities or obligations of the government, these funds are not incorporated in the government-wide statements. The City’s fiduciary fund accounts for the operations of Cimarron Hills Public Improvement District in which taxes are received from the taxable value in Cimarron Hills and subsequently disbursed to the developer. It also accounts for the City’s Flexible Spending Account funds. Deposits are made into this fund from payroll deductions until disbursements are made to the third party administrator to pay eligible claims. C. Measurement Focus/Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Measurement focus refers to what is being measured and basis of accounting refers to timing of revenue and expenditure recognition in the financial statements. The government-wide statements and fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund also uses the accrual basis of accounting. The economic resources measurement focus means all assets and liabilities (whether current or non-current) are included on the statement of net position and the operating statements present increases (revenues) and decreases (expenses) in net total position. Under the accrual basis of accounting, revenues are recognized when earned, including unbilled utility services which are accrued. Expenses are recognized at the time the liability is incurred. Governmental fund financial statements are reported using the current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers all revenues available if they are collected within sixty (60) days after year-end. Expenditures are recognized when the related fund liability is incurred, if measurable, except for principal and interest on general long-term debt, which are recorded when due, and compensated absences, which are recorded when payable from current available financial resources. City of Georgetown, Texas Notes to the Financial Statements 41 Ad valorem, sales, hotel, and franchise tax revenues recorded in the Governmental Fund Types are recognized under the susceptible to accrual concept. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except earnings on investments) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. D. Budgets At least 30 days prior to the end of each fiscal year, the City Manager submits a proposed budget presenting a complete financial plan for the ensuing fiscal year to the City Council (the Council). Public hearings are conducted, at which time all interested persons' comments concerning the budget are heard. The budget must be legally adopted by the Council through passage of an ordinance no later than the 27th day of the last month of the fiscal year. Formal budgetary integration is employed as a management control device during the year for all Governmental and Proprietary Fund Types. Budgets for all funds were legally adopted for the period. Budgetary control is exercised at the division level. All budgets are prepared on the budgetary basis, recognizing encumbrances outstanding at year-end as expenditures against that year’s appropriation. These encumbrances are reconciled to generally accepted accounting principles where appropriate. The Council may transfer any unencumbered appropriation balance or portion thereof from one division, office, department, or agency to another at any time. The City Manager has authority, without Council approval, to transfer appropriation balances from one expenditure account to another within a single division, office, department, or agency of the City; however, unbudgeted transfers between funds are prohibited. The Council may authorize by a majority plus one vote, an emergency expenditure as an amendment to the original budget, but only in a case of grave public necessity, to meet an unusual and unforeseen condition that could not have been included in the original budget through the use of reasonable, diligent thought and attention. The governing body may make changes to the budget for other municipal purposes. Budget amounts are as originally adopted, or as transferred pursuant to authorization of the City Manager or amended by the City Council. Individual amendments were not material in relation to the original appropriations, with the exception of amendments related to capital projects and grant expenditures, whose actual costs were unknown when the budget was adopted. Unencumbered appropriations lapse each year at September 30. The Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual –General Fund presents a comparison of budgetary data to actual results. The General Fund utilizes the same basis of accounting for both budgetary purposes and actual results, except for the effect of encumbrances and unrealized investment gains and losses, which are reconciled to the actual results for this comparison. E. Encumbrances Encumbrance account is employed as an extension of formal budgetary control in all governmental and proprietary funds. Encumbrance account is a process whereby purchase orders, contracts, and other commitments for the expending of monies are recorded in order to reserve that portion of the applicable appropriation. City of Georgetown, Texas Notes to the Financial Statements 42 F. Cash and Investments For cash flow purposes, cash and cash equivalents consist of demand deposits, certificates of deposits and deposits in authorized investment pools. The operating cash balances from all funds are consolidated in pooled cash and investment accounts. Excess pooled balances are invested in U.S. Treasury securities, U.S. Government agency securities, fully collateralized money market funds and local government investment pools. Maturities on all investments are consistent with the City’s cash flow requirements. Investments, except for the investment pools, for the City are reported at fair value. The investment pools operate in accordance with appropriate state laws and regulations and are reported at amortized cost. Interest earnings are then allocated to each fund based on average monthly pooled equity balances. Separate cash and investment accounts are maintained for restricted cash such as debt service and bond proceeds reserved for future construction. G. Restricted Assets Certain cash and investments are restricted by various legal and contractual obligations. Included in the restricted assets are capital recovery fees (impact fees) restricted by law for future capital improvements, customer deposits, and specific bond proceeds restricted for use. H. Inventories and Prepaid Items Inventories consist of electric materials, jet fuel, office and other supplies valued at the weighted average cost method and are recognized as expenditures or expenses when used. The prepaid items consist of required payments made to a vendor for a contract in the following fiscal year. These items are accounted for using the consumption method. I. Interfund Receivables and Payables Short-term advances between funds are accounted for in the appropriate interfund receivable and payable accounts. J. Note Receivable Long-term note receivable, which consists of the principal amount of the loan, is reported in the governmental fund statements with an offset to nonspendable fund balance as resources are not available for expenditure. Long-term note receivable reported in the governmental activities on the government-wide statement of net position is not offset by unavailable revenue as it is recorded on an accrual basis at its net realizable value. K. Interfund Transactions All legally authorized transfers have been appropriately presented as interfund transfers and are included in the fund financial statements of both Governmental and Proprietary Fund types. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. City of Georgetown, Texas Notes to the Financial Statements 43 L. Intergovernmental Revenues Intergovernmental revenues represent entitlements and shared revenues which are accounted for within the fund financed. Such revenues, received for purposes normally financed through the general government, are accounted for within the Special Revenue Funds. M. Accrued Employee Benefits All employees, with the exception of firefighters, may accumulate a maximum of two times their annual vacation, up to a cap of 240 hours, or 30 days paid upon separation. Firefighters may accrue up to a maximum cap of 360 hours that can be paid out upon separation. Upon termination, non-Civil Service employees will not receive payment of sick leave, unless they have a balance that originated prior to October 1, 2004. These employees were grandfathered under the old policy of receiving payment for one-half of their balance of sick leave up to 60 days at the rate of pay when the hours were banked. Upon termination, Civil Service employees are paid for the balance of their Civil Service sick leave earned after July 30, 2003 or October 31, 2005 (the effective date of the regulations in the City for fire civil service and police civil service employees, respectively), up to a maximum of 720 hours or 1,080 hours for those Firefighters on a 56 hour a week schedule on an annual basis. Civil Service employees hired prior to the effective date of the adoption of Civil Service regulations are also eligible under city policy to receive payment for one-half of their sick leave up to 60 days at the rate of pay when the hours were banked. Accumulated vacation and sick leave, which is expected to be liquidated with expendable available financial resources, is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of accumulated vacation leave within governmental funds that are not expected to be liquidated with expendable available financial resources are reported as a long-term liability on the statement of net position. No expenditure is reported for these amounts in the fund financial statements unless the benefits have matured, i.e. unused reimbursable leave still outstanding following an employee’s resignation or retirement. Accumulated vacation and sick leave of proprietary fund types are recorded as an expense and liability of those funds as the benefits accrue to employees. N. Capital Assets Capital Assets other than Streets and Drainage Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities column in the government-wide financial statements and in the fund financial statements for proprietary funds. All capital assets are valued at their historical cost or estimated historical cost if actual historical cost is not available. Donated assets are valued at their acquisition value on the date donated. Repairs and maintenance are recorded as expenses. Renewals and betterments are capitalized. Assets capitalized, not including infrastructure assets, have an original cost of $5,000 or more and an expected useful life of over one year. City of Georgetown, Texas Notes to the Financial Statements 44 Depreciation for assets not following the modified approach is computed using the straight-line method on the composite assets based upon the estimated useful lives as follows: Distribution systems 25 to 50 years Buildings and improvements 10 to 20 years Furniture, fixtures, and equipment 3 to 10 years The City records capital contributions to proprietary funds as revenue. Total capital contributions to the enterprise funds in fiscal year 2020 totaled $46,053,363. Contributed capital is not recorded for governmental type funds, but is recognized on the government-wide statements and totaled $14,460,645 for the year ended September 30, 2020. Capital Assets – Streets and Drainage Governmental Accounting Standards Board Statement No. 34 provides for an alternative approach to depreciation for measuring the value of infrastructure assets and the related costs incurred to maintain their service life at a locally established minimum standard. In order to adopt this alternative method, the City must use an asset management system, and must determine if the minimum standards are being maintained. This measurement occurs every three years at a minimum. The City has elected to use this alternative method for reporting its street infrastructure assets. The City contracted with the engineering firm of Dynatest North America, Inc. to complete pavement condition surveys for the City’s street network during fiscal year ended 2020. The City uses the CarteGraph PavementView Pavement Management Information System to track the condition levels of each of the street sections. The entire streets inventory is captured in the system and the condition of the pavement is based on the following factors:  Type of Distress  Amount of Distress  Severity of Distress  Deduct Values (function of the first three) The Pavement Condition Index (PCI) is a measurement scale based upon a condition index ranging from zero for a failed pavement to 100 for pavement with perfect condition. The condition index is used to classify pavement in the following conditions: PCI Rating 100-85 Good 84-45 Fair 44-0 Poor The PCI for fiscal year 2020 is 85.5. The previous score for 2014-2017 was 87. The City’s administrative policy is to maintain an average PCI level of 85. An 85 PCI is considered maintaining the streets in a “good” condition. Staff prepares a street maintenance budget that meets this target for Council’s consideration during the budget process. City of Georgetown, Texas Notes to the Financial Statements 45 O. Long-term Obligations The portion of long-term general obligation debt used to finance proprietary fund operations and payable from the revenues of the Enterprise Funds is recorded in such funds. General obligation bonds and other forms of long-term debt supported by general revenues are obligations of the City as a whole and not its individual funds. Accordingly, such unmatured obligations of the City are accounted for on the statement of net position and payments of principal and interest relating to the general obligation bonds are recorded as expenditures when they are paid in the fund statements. Self-supporting general obligation debt, which will be repaid from non-general revenue sources, is recorded in the appropriate proprietary fund. P. Pensions and Other Post-employment Benefits For purposes of measuring the net pension liability and net OPEB liability, related deferred outflows and inflows of resources, and pension expense, City specific information about its Fiduciary Net Position in the applicable plans and additions to/deductions from the City’s Fiduciary Net Position have been determined on the same basis as they are reported. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Information regarding the City’s Total Pension Liability and OPEB liability for life insurance benefits is obtained from TMRS through reports prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with applicable Governmental Accounting Standards Board (GASB) standards. Information regarding the City’s OPEB liability for retiree healthcare benefits is obtained through reports prepared for the City by its consulting actuary, Gabriel Roeder Smith & Company, in compliance with applicable GASB standards. Q. Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Specifically, the actuarial calculations used to determine the annual required contributions and related liabilities of the City’s retirement plan and post-employment obligations are based on assumptions about the possibility of events far into the future. Accordingly, actual results could differ from those estimates. R. Risk Financing Activity The City of Georgetown is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omission; injuries to employees; and natural disasters. During fiscal year 2020, the City purchased general liability and property insurance from Texas Municipal League Intergovernmental Risk Pool (TML-IRP). The City pays an annual premium to TML-IRP for such coverage. TML-IRP purchases reinsurance and the City does not retain risks of loss exceeding deductibles. Settled claims have not exceeded insurance coverage in the past three years. The workers compensation plan is administered and paid through the Texas Municipal League- Intergovernmental Risk Pool (TML-IRP). Under this plan, the City does not retain risks of loss exceeding the deductibles. TML-IRP also brokers the City’s Aviation and Underground Storage Tank Pollution liability insurance, as well as, the canine and surgical vet coverage. The City does not retain the risks of loss exceeding the deductibles. City of Georgetown, Texas Notes to the Financial Statements 46 S. Credit Risk Financial investments which potentially subject the City to concentrations of credit risk consist principally of cash, investments and accounts receivable. At September 30, 2020, there was not a significant risk arising from cash, investments, or accounts receivable. T. Nature and Purpose of Reservations and Designation of Fund Equity The City’s Fund Balance is the accumulated difference between assets and liabilities within governmental funds, and it allows the City to meet its contractual obligations, fund disaster, or emergency costs, provide cash flow for timing purposes and fund non-recurring expenses appropriated by City Council. The City Council has adopted a financial standard to maintain a General Fund minimum balance of 90 days of budgeted on-going expenditures and 75 days citywide. This policy establishes limitations on the purposes for which Fund Balances can be used in accordance with Governmental Accounting Standards Board (GASB) Statement No. 54. Five Components of Fund Balance Non-spendable Fund Balance – includes inherently non-spendable assets that will never convert to cash, as well as, assets that will not convert to cash soon enough to affect the current financial period. Assets included in this category are prepaid items, inventory, and non-financial assets held for resale. Restricted Fund Balance – represents the portion of fund balance that is restricted to specific purposes that are externally imposed by creditors, grantors, contributors, laws or regulations of other governments, such as hotel/motel tax and bond proceeds. Committed Fund Balance – describes the portion of fund balance that can only be used for specific purposes with constraints imposed by the formal action of the City Council’s adoption of an ordinance, and remains binding unless the City Council removes the limitation. Assigned Fund Balance – is that portion of fund balance that reflects the City’s intended use for a specific purpose but is neither restricted nor committed. Assigned fund balances are determined by City management based on Council direction, in accordance with our financial policies adopted by resolution. Unassigned Fund Balance – represents funds that have not been assigned to any other fund and cannot be properly classified in one of the other four categories within the general fund. City of Georgetown, Texas Notes to the Financial Statements 47 Below is the residual classification for the general fund: General Georgetown Transportation Enhancement Corporation Debt Service General Capital Projects Nonmajor Governmental Funds Total Governmental Funds Nonspendable Inventory/prepaids -$ -$ -$ 20,930$ -$ 20,930$ Note receivable 245,067 - - - - 245,067 Restricted for Debt service - - 1,907,062 - - 1,907,062 Bond funds - - - 38,315,166 - 38,315,166 Hotel/motel tax - - - - 1,675,963 1,675,963 Street maintenance tax - - - - 3,530,549 3,530,549 Other purposes - - - - 2,901,071 2,901,071 Committed for Contingency 11,414,340 - - - - 11,414,340 Benefit payout 340,000 - - - - 340,000 Other capital projects - 31,029,700 - - - 31,029,700 Nonmajor funds - - - - 6,876,345 6,876,345 Unassigned 9,197,203 - - - - 9,197,203 Total fund balance 21,196,610$ 31,029,700$ 1,907,062$ 38,336,096$ 14,983,928$ 107,453,396$ When both restricted and unrestricted fund balance amounts are available for use, it is the City’s policy to use restricted fund balance first, then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts and then unassigned amounts when expenditures are incurred for which amounts in any of those unrestricted fund balance classifications are available. Amounts assigned to encumbrances relate to purchase commitments for future periods that do not yet meet expenditure recognition criteria. U. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for reporting in this category:  Deferred charges on refundings  Pension and OPEB items: o Differences between expected and actual economic experience o Changes in actuarial assumptions o Difference between projected and actual investment earnings o Contributions to pension plan subsequent to the measurement date In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Property taxes levied, but not expected to be available to fund obligations in the current period, are recorded as deferred inflows of resources on the balance sheet. Additionally, deferred inflows of resources are recognized related to both pension and OPEB changes during the year. City of Georgetown, Texas Notes to the Financial Statements 48 V. Net Position Net position represents the difference between assets, liabilities and respective deferred outflow or inflows of resources. A portion of net position represents net investments in capital assets which is the total balance of the City’s investment in capital assets less accumulated depreciation and the outstanding balances of any borrowing spent for that acquisition, construction or improvements of those assets. Net position is reported as restricted when there are limitations imposed on their use either through (1) the enabling legislation adopted by the City, (2) through external restrictions imposed by grantors, or (3) laws or regulations of other governments. Note 2. Cash and Investments For cash flow purposes, cash and temporary investments consist of demand deposits, certificates of deposits, and authorized investment pools. The operating cash balance from all funds is consolidated in pooled cash and investment accounts. Excess pooled balances are invested in U.S. Treasury securities, U.S. Government agency securities, fully collateralized money market funds and local government investment pools. Maturities on all investments are consistent with the City’s cash flow requirements. Investments are recorded at cost. Interest earnings are allocated to each fund based on average monthly pooled equity balances. Separate cash and investment accounts are maintained for restricted cash such as debt service, utility debt reserves, and bond proceeds reserved for future construction. The investment policies of the City are governed by State statutes and a City Council adopted Investment Policy. Major provisions of the City’s investment policy include: responsibility for investments, authorized investments, security dealer selection and qualifying procedures, safekeeping and custodial procedures, statement of investment objectives, and investment reporting requirements. A. Deposits Texas Statutes require that all bank deposits be insured or fully collateralized by the U.S. government obligations or obligations of the State of Texas and its agencies. Fair value of the collateral pledged must equal at least 102% of the bank deposits not covered by federal deposit insurance. At year-end, the carrying amount of the City’s bank deposits was $14,275,762 and the bank balances were $9,505,298, all of which were entirely covered by Federal depository insurance or by collateral held by the City’s agent bank in the City’s name. In order to maximize interest earnings, the City utilizes a controlled disbursement account, which allows the City to deposit only as much money as needed to fund checks presented each day. B. Investments The City is authorized to invest in certificates of deposit, direct obligations of the U.S. government, U.S. government agency securities, fully collateralized direct repurchase agreements, no-load money market funds whose portfolios meet the City’s investment requirements, and in qualified local government investment pools as approved by the City Council. Non-participating interest earning contracts, including certificates of deposit, and money market accounts are reported at cost. Investments in external investment pools are reported at amortized cost. City of Georgetown, Texas Notes to the Financial Statements 49 Interest rate risk is the potential for a decline in market value due to rising interest rates. In compliance with the City’s Investment Policy, as of September 30, 2020, the City minimized the interest rate risk in the portfolio by limiting the weighted average maturity of security types to no longer than two years; structuring the investment portfolio so that securities matured to meet cash requirements for ongoing operations and capital improvement projects; monitoring credit ratings of portfolio positions to assure compliance with rating requirements imposed by the Public Funds Investment Act; and investing operating funds primarily in shorter-term securities and similar government investment pools. The City evaluated all of its cash and investment positions, and determined that it had none subject to recurring fair value recognition or disclosures. The City’s investment balances and weighted average maturity of such investments as of September 30, 2020 are: September 30, 2020 Weighted Average Investment pools (at amortized cost) Texas local government investment pool (TexPool)39,541,882$ 32 Texas short-term asset reserve program (TexSTAR)87,105,794 22 T-bills 2,499,970 8 Investments (at cost) Money market accounts 19,469,539 1 Certificates of deposit 113,140,672 179 Total investments 261,757,857 Portfolio weighted average maturity 90 Carrying amount - cash 13,808,445 Total cash and investments 275,566,302$ Primary Government C. Credit Risk Credit risk is the possibility that the issuer of a security will fail to make timely payments of interest or principal. In general, the lower the credit quality of a security, the higher the yield, with all other factors being equal. In compliance with the City’s Investment Policy, as of September 30, 2020, the City minimized credit risk losses due to default of security issuer or backer by limiting investments to the safest types of securities; pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City will do business; and diversifying the investment portfolio so that potential losses on individual securities were minimized. For short-term liquidity requirements, the City primarily utilizes the Texas Short-Term Asset Reserve Program (TexSTAR). JPMorgan Fleming Asset Management, Inc. and First Southwest Asset Management, Inc. serve as co-administrators under an agreement with the TexSTAR board of directors to provide investment and participant services for this pool. JPMorgan Chase Bank or its subsidiary J.P. Morgan Investor Services Co. provides the custodial, transfer agency, fund accounting, and depository services for this pool. City of Georgetown, Texas Notes to the Financial Statements 50 The City also maintains an account with the Texas Local Government Investment Pool (TexPool). Under the TexPool Participation Agreement, administrative and investment services to TexPool are provided by Federated Investors, Inc. through an agreement with the State of Texas Comptroller of Public Accounts. The State of Texas Comptroller of Public Accounts is the sole officer, director, and shareholder of the Texas Treasury Safekeeping Trust Company authorized to operate TexPool. At year end, balances in TexSTAR and TexPool were rated AAAm by Standard & Poor’s. All pools operate on a $1 net asset value basis. In order to maintain a stable $1 price of the fund, the pools will sell portfolio holdings if the ratio of the fair value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005. The pools are stated at their measured amortized cost, which is assumed to approximate fair value. Note 3. Taxes A. Property Taxes Property is appraised and a lien on such property becomes enforceable as of January 1 of each year. Taxes are levied on and payable the following October 1. Taxes become delinquent February 1 of the following year and are subject to interest and penalty charges. Under an agreement which began August 1, 2000, Williamson County Tax Office collects the City's taxes. In the fund financial statements, City property tax revenues are recognized when levied to the extent that they are collected in the current year. Taxes collected prior to the levy date to which they apply are recorded as unearned revenues and recognized as revenue of the period to which they apply. All collections from prior year levies are considered delinquent tax revenue for reporting purposes in the year collected. The allowance for uncollectible taxes at September 30, 2020 was $10,732. The City is permitted by the State of Texas to levy taxes up to $2.50 per $100 of assessed valuation for general government services and for the payment of principal and interest on general long-term debt. The combined current tax rate to finance general government services, including debt service for the fiscal year ended September 30, 2020, was $0.42 per $100 of assessed valuation. The Williamson Central Appraisal District (Appraisal District) is responsible for the recording and appraisal of property for all taxing units in Williamson County. The Appraisal District is required to assess property at 100% of its appraised value. Real property must be reappraised at least every four years. The City may, at its own expense, require annual reviews by the Appraisal District through various appeals and, if necessary, legal action. Under this system, if the rate, excluding tax rates for bonds and other contractual obligations adjusted for new improvements, exceeds the rate for the previous year by more than 3.5%, qualified voters of the City may petition for an election to determine whether to limit the tax rate to an increase of no more than 3.5%. In September 2004, voters approved an initiative to freeze property taxes for homeowners over the age of 65 or disabled. This measure mirrors the State of Texas Constitutional Amendment Proposition 13, which passed overwhelmingly statewide in 2003. Prop 13 gives local governments the option of “freezing” taxes for the elderly and disabled. City of Georgetown, Texas Notes to the Financial Statements 51 B. Sales Taxes The City has adopted the provisions of Article 1066C, Vernon's Texas Civil Statutes, as amended, which grant the City the power to impose and levy a 1% Local Sales and Use Tax within the City. Proceeds of the tax are credited to the General Fund except for sales taxes generated at the airport which are credited to the Airport (Enterprise) Fund. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits to the City monthly the proceeds of the tax, after deduction of a 2% service fee. On October 1, 2001, the City began collecting an additional half-cent sales tax for its component unit, GTEC, to fund transportation improvements that promote economic development. These funds are reported in the GTEC General Capital Projects Fund, a blended component unit of the City. On April 1, 2003, the City began collecting an additional quarter-cent sales tax in accordance with Texas House Bill 445 to fund maintenance on streets that were in existence at the time the sales tax was adopted by the voters. In November 2014 and again in November 2018, the citizens readopted this quarter-cent sales tax option. The sunset provision will expire in March 2023. These funds are reported in the Streets Special Revenue Fund. On October 1, 2005, the City began collecting an additional eighth-cent sales tax in accordance with the Texas Development Corporation Act of 1979, Article 5190.6, Section 4A Texas Revised Civil Statues for the promotion and development of new and expanded business enterprises. This sales tax is administered through GEDCO. On October 1, 2005, the City began collecting an additional eighth-cent sales tax to be used toward the reduction of ad valorem property taxes. Proceeds are credited to the City’s General Fund. Note 4. Transfers Major Funds Transfers Out General Fund Debt Service GTEC General Capital Projects Nonmajor Special Revenue Internal Services Electric Nonmajor Enterprise Funds Governmental funds Major funds General fund -$ 67,000$ -$ -$ 387,000$ 70,860$ -$ -$ 524,860$ GTEC - 2,403,361 - - - - - - 2,403,361 General capital projects - - - - - 3,204,546 - - 3,204,546 Nonmajor funds 28,634 606,083 - - - 65,000 500,000 - 1,199,717 Internal service funds - - - 1,262,000 - 15,500 - - 1,277,500 Enterprise funds Major funds Electric 4,534,733 - - - - 295,059 - - 4,829,792 Water services 4,025,560 - - - - 158,000 - - 4,183,560 Nonmajor funds 288,106 - - - - 140,500 - - 428,606 8,877,033$ 3,076,444$ -$ 1,262,000$ 387,000$ 3,949,465$ 500,000$ -$ 18,051,942 Transfers eliminated in government-wide statements (9,109,984) Net transfers - statement of activities 8,941,958$ Total Transfers Out Transfers In Major Funds Governmental Funds Enterprise Funds City of Georgetown, Texas Notes to the Financial Statements 52 The net transfers between the governmental types and business types total $8,941,958. Per the City’s fiscal and budgetary policy, utility operations transfer seven percent of gross billings for utility services to the General fund as a payment of the profits of the fund or a return on investment. Other types of transfers include grant matching, fire hydrant testing, equipment purchases, and capital project funding. Note 5. Capital Assets Capital asset activity for the year ended September 30, 2020 was as follows: Balance Balance September 30, Deletions September 30, 2019 Additions and Transfers 2020 Governmental activities Capital assets not being depreciated Land 21,772,554$ -$ -$ 21,772,554$ Land rights 20,938,510 - - 20,938,510 Streets 278,203,966 12,501,801 - 290,705,767 Construction in progress 28,056,663 17,440,473 (9,445,118) 36,052,018 Total capital assets not being depreciated 348,971,693 29,942,274 (9,445,118) 369,468,849 Capital assets being depreciated Buildings 96,726,621 181,448 - 96,908,069 Furniture, machinery, and equipment 26,002,471 1,213,159 (37,317) 27,178,313 Vehicles 33,480,030 4,263,679 - 37,743,709 Distribution system 1,547,389 782,501 - 2,329,890 Bridges 7,777,022 - - 7,777,022 Improvements 53,409,562 11,802,987 - 65,212,549 Total capital assets being depreciated 218,943,095 18,243,774 (37,317) 237,149,552 Less accumulated depreciation for Buildings (19,584,357) (2,061,898) - (21,646,255) Furniture, machinery, and equipment (22,118,622) (1,789,930) - (23,908,552) Vehicles (19,200,645) (2,559,249) - (21,759,894) Distribution system (661,866) (269,522) 37,317 (894,071) Bridges (3,697,947) (265,664) - (3,963,611) Improvements (11,564,708) (14,049,162) - (25,613,870) Total accumulated depreciation (76,828,145) (20,995,425) 37,317 (97,786,253) Total capital assets being depreciated, net 142,114,950 (2,751,651) - 139,363,299 Governmental activities capital assets, net 491,086,643$ 27,190,623$ (9,445,118)$ 508,832,148$ Electric activities Capital assets not being depreciated Land 635,073$ -$ -$ 635,073$ Land rights 153,607 - - 153,607 Construction in progress - 5,375,929 (4,005,742) 1,370,187 Total capital assets not being depreciated 788,680 5,375,929 (4,005,742) 2,158,867 Capital assets being depreciated Buildings 24,637 - - 24,637 Furniture, machinery, and equipment 1,605,747 17,752 - 1,623,499 Vehicles 13,346 - - 13,346 Distribution system 180,070,728 17,901,486 (11,163,355) 186,808,859 Improvements 173,421 - - 173,421 Total capital assets being depreciated 181,887,879 17,919,238 (11,163,355) 188,643,762 Less accumulated depreciation for Buildings (24,637) - - (24,637) Furniture, machinery, and equipment (1,282,202) (110,329) - (1,392,531) Vehicles (13,346) - - (13,346) Distribution system (53,850,587) (13,762,330) - (67,612,917) Improvements (171,161) (2,261) 3,452,667 3,279,245 Total accumulated depreciation (55,341,933) (13,874,920) 3,452,667 (65,764,186) Total capital assets being depreciated, net 126,545,946 4,044,318 (7,710,688) 122,879,576 Electric activities capital assets, net 127,334,626$ 9,420,247$ (11,716,430)$ 125,038,443$ City of Georgetown, Texas Notes to the Financial Statements 53 Balance Balance September 30, Deletions September 30, 2019 Additions and Transfers 2020 Water services activities Capital assets not being depreciated Land 1,559,074$ -$ -$ 1,559,074$ Land rights 66,006 - - 66,006 Construction in progress 9,721,532 10,627,902 (901,818) 19,447,616 Total capital assets not being depreciated 11,346,612 10,627,902 (901,818) 21,072,696 Capital assets being depreciated Buildings 9,611,544 - - 9,611,544 Furniture, machinery, and equipment 1,597,911 33,821 - 1,631,732 Vehicles 46,834 - - 46,834 Distribution system 415,943,724 31,146,204 (4,406,826) 442,683,102 Improvements 219,995 - - 219,995 Total capital assets being depreciated 427,420,008 31,180,025 (4,406,826) 454,193,207 Less accumulated depreciation for Buildings (2,832,957) (235,589) - (3,068,546) Furniture, machinery, and equipment (992,441) (201,421) (1,193,862) Vehicles (38,760) (1,642) - (40,402) Distribution system (102,896,810) (10,543,491) 430,187 (113,010,114) Improvements (205,671) (3,052) - (208,723) Total accumulated depreciation (106,966,639) (10,985,195) 430,187 (117,521,647) Total capital assets being depreciated, net 320,453,369 20,194,830 (3,976,639) 336,671,560 Water services activities capital assets, net 331,799,981$ 30,822,732$ (4,878,457)$ 357,744,256$ Other nonmajor business-type activities Capital assets not being depreciated Land 589,632$ -$ 51,904$ 641,536$ Land rights 1,503,538 - - 1,503,538 Construction in progress 21,799 883,049 (512,885) 391,963 Total capital assets not being depreciated 2,114,969 883,049 (460,981) 2,537,037 Capital assets being depreciated Buildings 3,856,218 - - 3,856,218 Furniture, machinery, and equipment 393,873 28,015 - 421,888 Vehicles 14,050 - - 14,050 Distribution system 62,750,012 14,142,601 - 76,892,613 Improvements 5,838,519 - - 5,838,519 Total capital assets being depreciated 72,852,672 14,170,616 - 87,023,288 Less accumulated depreciation for Buildings (2,290,896) (49,232) - (2,340,128) Furniture, machinery, and equipment (196,036) (10,320) - (206,356) Vehicles - - - - Distribution system (1,119,475) (2,052,061) - (3,171,536) Improvements (17,752,198) (273,887) - (18,026,085) Total accumulated depreciation (21,358,605) (2,385,500) - (23,744,105) Total capital assets being depreciated, net 51,494,067 11,785,116 - 63,279,183 Other nonmajor business-type activities capital assets, net 53,609,036$ 12,668,165$ (460,981)$ 65,816,220$ City of Georgetown, Texas Notes to the Financial Statements 54 Balance Balance September 30, Deletions September 30, 2019 Additions and Transfers 2020 Total business-type activities Capital assets not being depreciated Land 2,783,779$ -$ 51,904$ 2,835,683$ Land rights 1,723,151 - - 1,723,151 Construction in progress 9,743,331 16,886,880 (5,420,445) 21,209,766 Total capital assets not being depreciated 14,250,261 16,886,880 (5,368,541) 25,768,600 Capital assets being depreciated Buildings 13,492,399 - - 13,492,399 Furniture, machinery, and equipment 3,597,531 79,588 - 3,677,119 Vehicles 74,230 - - 74,230 Distribution system 658,764,464 63,190,291 (15,570,181) 706,384,574 Improvements 6,231,935 - - 6,231,935 Total capital assets being depreciated 682,160,559 63,269,879 (15,570,181) 729,860,257 Less accumulated depreciation for Buildings (5,148,490) (284,821) - (5,433,311) Furniture, machinery, and equipment (2,470,679) (322,070) - (2,792,749) Vehicles (52,106) (1,642) - (53,748) Distribution system (157,866,872) (26,357,882) 430,187 (183,794,567) Improvements (18,129,030) (279,200) 3,452,667 (14,955,563) Total accumulated depreciation (183,667,177) (27,245,615) 3,882,854 (207,029,938) Total capital assets being depreciated, net 498,493,382 36,024,264 (11,687,327) 522,830,319 Total business-type activities capital assets, net 512,743,643$ 52,911,144$ (17,055,868)$ 548,598,919$ Depreciation expense was charged to function/programs of the primary government as follows: Governmental activities Culture / recreation 3,103,364$ Development 770,317 Fire 3,923,502 General government 1,288,719 Highways and streets 2,944,176 Police 3,878,587 Environmental services 1,924,584 Internal service funds 3,162,176 Total depreciation expense governmental activities 20,995,425$ Business-type activities Electric 13,874,920$ Water services 10,985,195 Nonmajor 2,385,500 Total depreciation expense business-type activities 27,245,615$ City of Georgetown, Texas Notes to the Financial Statements 55 Governmental Activities Business-type Activities Total Net investment in capital assets Total capital assets (net of accumulated depreciation) 508,832,148$ 548,598,919$ 1,057,431,067$ Less long-term debt and related charges (224,865,160) (111,388,141) (336,253,301) Add unspent bond proceeds 50,899,290 37,271,829 88,171,119 Net long-term debt (173,965,870) (74,116,312) (248,082,182) Net investment in capital assets (net of related debt)334,866,278$ 474,482,607$ 809,348,885$ Note 6. Long-Term Liabilities A. Overview The following is a summary of long-term debt transactions of the City for the fiscal year ended September 30, 2020: Balance as of September 30, 2019 Additions Retirements Balance as of September 30, 2020 Due within One Year Governmental activities General obligation bonds 204,223,234$ 19,635,000$ (13,014,534)$ 210,843,700$ 14,940,801$ Sales tax revenue bonds 5,555,000 - (595,000) 4,960,000 620,000 Premiums 11,175,985 - (829,736) 10,346,249 831,430 Compensated absences 6,364,435 2,674,267 (2,050,459) 6,988,243 2,254,020 Net pension liability 22,722,792 - (7,593,704) 15,129,088 - Other post employment benefits 3,324,575 858,760 - 4,183,335 - Total governmental activities 253,366,021 23,168,027 (24,083,433) 252,450,615 18,646,251 Business-type activities Revenue bonds 87,295,000 20,655,000 (12,365,000) 95,585,000 7,070,000 General obligation bonds 12,336,775 655,000 (925,475) 12,066,300 999,199 Premiums 4,778,117 - (399,063) 4,379,054 399,061 Compensated absences 1,178,132 594,787 (599,526) 1,173,393 521,265 Net pension liability 6,040,235 - (2,491,436) 3,548,799 - Total business-type activities 111,628,259 21,904,787 (16,780,500) 116,752,546 8,989,525 Total long-term debt 364,994,280$ 45,072,814$ (40,863,933)$ 369,203,161$ 27,635,776$ Liabilities for compensated absences, net pension liability, and other post-employment benefits that are included in governmental activities are expended primarily in the General Fund as benefits are used by the employees. City of Georgetown, Texas Notes to the Financial Statements 56 At September 30, 2020, there was $85,070,000 of authorized but unissued general obligation bonds. There are no authorized but unissued revenue bonds. The City is in compliance with all bond ordinances. Fiscal Years Ending September 30, Principal Interest Principal Interest Principal Interest 2021 15,560,801$ 7,556,425$ 8,069,199$ 3,533,513$ 23,630,000$ 11,089,938$ 2022 15,647,875 6,969,962 8,327,125 3,188,084 23,975,000 10,158,046 2023 15,815,478 6,436,765 7,959,522 2,907,785 23,775,000 9,344,550 2024 16,170,402 5,858,974 7,744,598 2,626,606 23,915,000 8,485,580 2025 15,828,256 5,228,171 8,021,744 2,354,605 23,850,000 7,582,776 2026-2030 62,572,634 18,375,242 34,577,366 8,029,788 97,150,000 26,405,030 2031-2035 54,628,254 8,489,544 27,526,746 3,390,623 82,155,000 11,880,167 2036-2040 19,580,000 1,200,735 5,425,000 294,964 25,005,000 1,495,699 215,803,700$ 60,115,818$ 107,651,300$ 26,325,968$ 323,455,000$ 86,441,786$ Governmental Business-type Total During the year ended September 30, 2020, the City issued $11,210,000 in Combination Tax and Revenue Certificates of Obligation, $9,080,000 in General Obligation Bonds, and $14,430,000 in Utility System Revenue Bonds. The City also issued $6,225,000 in Utility System Revenue Refunding Bonds which results in a gross cash flow savings through the year ending September 30, 2029 of $728,905. General Obligation Debt A summary of tax-supported general obligation debt outstanding at September 30, 2020: $9,720,000, 2011 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2031; interest at 2% to 4% 5,625,000$ $12,500,000, 2012 General obligation bonds due in annual installments through February 15, 2037; interest at 1.5% to 3.625% 9,810,000 $1,650,000, 2012 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2032; interest at 1.5% to 3.375% (portion included below)722,500 $1,016,532, 2012 General obligation and Refunding bonds due in annual installments through August 15, 2029; interest at 0.2% to 3.25% (portion included below)472,328 $12,500,000, 2012A General obligation bonds due in annual installments through August 15, 2037; interest at 2.0% to 3.25% (portion included below) 9,880,000 $9,500,000, 2013 General obligation bonds due in annual installments through August 15, 2037; interest at 2.0% to 3.375% (portion included below) 6,685,000 $9,646,976, 2013 General obligation and Refunding bonds due in annual installments through August 15, 2025; interest at 2.0% to 4.0% (portion included below)3,975,381 $4,800,000, 2014 General obligation bonds due in annual installments through August 15, 2034; interest at 2.0% to 3.60% 3,795,000 $1,841,000, 2014 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2034; interest at 3.00% to 3.625%s (portion included below)1,456,728 City of Georgetown, Texas Notes to Financial Statements 57 $9,709,525, 2014 General obligation and Refunding bonds due in annual installments through August 15, 2027; interest at 2.00% to 4.00% (portion included below)6,023,465 $4,345,000, 2015 General obligation bonds due in annual installments through August 15, 2035; interest at 3.00% to 4.00% 3,550,000 $3,175,000, 2015 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2035; interest at 2.00% to 3.50% (portion included below)1,995,000 $4,042,295, 2015 General obligation and Refunding bonds due in annual installments through August 15, 2028; interest at 2.000% to 3.125% (portion included below)1,875,020 $11,785,000, 2015A General obligation bonds due in annual installments through August 15, 2035; interest at 2.000% to 3.300% 9,580,000 $12,585,000, 2016 General obligation bonds due in annual installments through August 15, 2036; interest at 2.000% to 4.000% 10,705,000 $3,105,000, 2016 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2036; interest at 2.000% to 4.000% (portion included below)2,290,000 $4,014,840, 2016 General obligation and Refunding bonds due in annual installments through August 15, 2027; interest at 2.000% to 3.000% (portion included below) 1,905,849 $8,555,000, 2017 General obligation bonds due in annual installments through August 15, 2037; interest at 3.125% to 5.000% 7,845,000 $8,655,000, 2017 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2037; interest at 3.000% to 5.000% (portion included below)7,220,000 $12,385,000, 2017 General obligation and Refunding bonds due in annual installments through August 15, 2030; interest at 2.000% to 5.000% 11,810,000 $23,555,000, 2018 General obligation bonds due in annual installments through August 15, 2038; interest at 3.00% to 5.000% 22,230,000 $10,695,000, 2018 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2038; interest at 3.000% to 4.000% 8,625,000 $4,920,000, 2019 General obligation bonds due in annual installments through August 15, 2039; interest at 3.00% to 5.000% 4,810,000 $13,830,000, 2019 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2039; interest at 3.000% to 5.000% 13,110,000 $5,815,000, 2020 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2035; interest at 1.200%5,815,000 $9,080,000, 2020 General obligation bonds due in annual installments through August 15, 2035; interest at 2.290$ 9,080,000 Total tax supported debt 170,891,271$ City of Georgetown, Texas Notes to the Financial Statements 58 A summary of self-supporting general obligation debt outstanding at September 30, 2020: $1,650,000, 2012 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2032; interest at 1.5% to 3.375%; designated for GTEC capital improvements to be paid through revenues from the ½ cent GTEC sales tax. 722,500 $2,165,180, 2012 General obligation and Refunding bonds due in annual installments through August 15, 2029; interest at 0.2% to 3.25%; designated for GTEC capital improvements to be paid through revenues from the ½ cent GTEC sales tax.1,006,043 $5,233,289, 2012 General obligation and Refunding bonds due in annual installments through August 15, 2029; interest at 0.2% to 3.25%; paid through Electric utility revenues. 2,431,629 $4,065,000, 2013 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2033; interest at 2.0% to 3.25%; to be paid through Electric and Water utility revenues. 2,945,000 $442,408, 2013 General obligation and Refunding bonds due in annual installments through August 15, 2025; interest at 2.0% to 4.0%; portion dedicated for Airport Improvements, $254,219, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements, $188,189 to be paid through monthly fees charged to utility customers within the City limits. 182,307 $915,616, 2013 General obligation and Refunding bonds due in annual installments through August 15, 2025; interest at 2.0% to 4.0%; designated for GTEC capital improvements to be paid through revenues from the ½ cent GTEC sales tax. 377,312 $459,000, 2014 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2034; interest at 3.00% to 3.625% to be paid through monthly Stormwater Drainage fees charged to utility. 363,272 $162,030, 2014 General obligation and Refunding bonds due in annual installments through August 15, 2027; interest at 2.00% to 4.00% portion dedicated for Airport Improvements, $8,593, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements, $153,438, to be paid through monthly fees charged to utility customers within City limit. 100,518 $2,403,445, 2014 General obligation and Refunding bonds due in annual installments through August 15, 2027; interest at 2.00% to 4.00% designated for GTEC capital improvements to be paid through revenues from the ½ cent GTEC sales tax. 1,491,017 City of Georgetown, Texas Notes to the Financial Statements 59 $6,470,000, 2015 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2035; interest at 2.00% to 3.60%; to be paid through annual ad valorem tax levied on all taxable property within the Rivery TIRZ.5,680,000 $675,297, 2015 General obligation and Refunding bonds due in annual installments through August 15, 2028; interest at 2.0% to 3.125%; portion dedicated for Airport Improvements, $188,168, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements, $487,129 to be paid through monthly fees charged to utility customers within the City limits. 313,290 $1,642,408, 2015 General obligation and Refunding bonds due in annual installments through August 15, 2028; interest at 2.0% to 3.125%; designated for GTEC capital improvements to be paid through revenues from the ½ cent GTEC sales tax.761,690 $3,070,000, 2015 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2035; interest at 2.00% to 3.50%; portion dedicated for Airport Improvements, $865,000, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements, $2,205,000 to be paid through monthly fees charged to utility customers within the City limits. 2,490,000 $745,000, 2015 Combination tax & revenue certificates of obligation due in annual installments through August 15, 2035; interest at 2.00% to 3.50%; paid through water utility revenues. 600,000 $10,720,000, 2016 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2036; interest at 2.000% to 3.000%; designated for GTEC capital improvements to be paid through revenues from the 1/2 cent GTEC sales tax. 9,075,000 $2,980,000, 2016 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2036; interest at 2.000% to 5.000%; designated for GEDCO-Rivery capital improvements to be paid through revenues from the .125 of a cent GEDCO sales tax. 2,510,000 $1,645,000, 2016 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2036; interest at 2.000% to 3.000%; to be paid through annual ad valorem tax levied on all taxable property within the Rivery TIRZ.1,395,000 $240,000, 2016 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2036; interest at 2.000% to 3.000%; to be paid through monthly Stormwater Drainage fees charged to utility customers within City Limits.200,000 $3,409,997, 2016 General obligation and refunding bonds due in annual installments through August 15, 2027; interest at 2.000% to 2.500%; designated for GTEC capital improvements to be paid through revenues from ½ cent GTEC sales tax.1,618,867 City of Georgetown, Texas Notes to the Financial Statements 60 $85,163, 2016 General obligation and refunding bonds due in annual installments through August 15, 2027; interest at 2.000% to 3.000%; portion dedicated for Airport Improvements, $4,620, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements $80,542 to be paid through monthly fees charged to utility customers within City limits. 40,284 $555,000, 2017 General obligation and Refunding bonds due in annual installments through August 15, 2030; interest at 2.000% to 5.000% dedicated for Stormwater Drainage Improvements to be paid through monthly fees charged to utility customers within City limits. 515,000 $5,750,000, 2017 Combination tax and revenue certificates of obligation due in installments through August 15, 2037; interest at 3.000% to 5.000%; designated for GTEC capital improvements to be paid through revenues from 1/2 cent GTEC sales tax.5,185,000 $145,000, 2018 Combined tax and revenue certificates of obligation due in installments through 8/15/2038; interest at 3% to 4%; portion dedicated for Airport Improvements.135,000 $1,140,000, 2019 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2039; interest at 3.000% to 5.000%; portion dedicated for Airport Improvements, $430,000, to be paid with Airport fees. Portion dedicated for Stormwater Drainage Improvements $710,000 to be paid through monthly fees charged to utility customers within City limits.1,095,000 $5,390,000, 2019 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2039; interest at 3.000% to 5.000%; portion funded by Solid Waste fees.5,390,000 $4,740,000, 2020 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2035; interest at 1.200%; designated for GTEC capital improvements to be paid through revenues from 1/2 cent GTEC sales tax.4,740,000 $655,000, 2020 Combination tax and revenue certificates of obligation due in annual installments through August 15, 2035; interest at 1.200%; dedicated for Stormwater Drainage Improvements to be paid through monthly fees charged to utility customers within City limits.655,000 Total self-supported general obligation debt 52,018,729 Grand total outstanding general obligation debt as of September 30, 2020 222,910,000$ This amount is reported in the government-wide statements of activities as: Governmental activities 210,843,700$ Business-type activities 12,066,300 222,910,000$ City of Georgetown, Texas Notes to the Financial Statements 61 B. Sales Tax Revenue Debt – Georgetown Transportation Enhancement Corporation A summary of sales tax revenue debt outstanding at September 30, 2020 follows: $7,755,000, 2015 Senior lien sales tax revenue bonds due in annual installments through August 15, 2027; interest at 2.00% to 4.00%; repaid with 1/2 cent sales tax revenue 4,960,000$ Total outstanding sales tax revenue debt 4,960,000$ C. Discretely Presented Component Unit Georgetown Economic Development Corporation (GEDCO) participated in the City’s issuance of $18,690,000 Combination Tax and Revenue Certificates of Obligation, Series 2016 and is obligated to pay the City its portion of the principal and interest for the certificates, through 2036. Additionally, GEDCO has received a loan from the Water Services Fund as part of a tri-party agreement for economic development. Repayment of GEDCO’s outstanding long-term liabilities is as follows at September 30, 2020: Fiscal Years Ending September 30, Principal Interest 2021 192,830$ 97,911$ 2022 199,511 95,306 2023 206,559 88,966 2024 214,354 79,271 2025-2029 959,175 272,155 2030-2034 860,000 144,700 2035-2036 385,000 17,400 3,017,429$ 795,709$ GEDCO City of Georgetown, Texas Notes to the Financial Statements 62 D. Revenue Debt A summary of revenue bonds outstanding at September 30, 2020: $7,715,000, 2012 Utility System Revenue & Refunding bonds due in annual installments through August 15, 2023; interest at 2% to 4% 2,230,000$ $11,855,000, 2014 Utility System Revenue & Refunding bonds due in annual installments through August 15, 2027; interest at 2% to 4% 6,335,000 $13,000,000, 2014 Utility System Revenue bonds due in annual installments through August 15, 2034; interest at 2% to 4% 10,320,000 $5,350,000, 2014 Utility System Revenue bonds due in annual installments through August 15, 2031; interest at 1% to 4% 3,800,000 $10,920,000, 2015 Utility System Revenue & Refunding bonds due in annual installments through August 15, 2035; interest at 3.00% to 3.75% 8,925,000 $9,620,000, 2016 Utility System Revenue bonds due in annual installments through August 15, 2036; interest at 2.000% to 4.000%. 8,215,000 $6,925,000, 2016 Utility System Revenue bonds due in annual installments through August 15, 2028; interest at 3.000% to 4.000% 4,410,000 $27,915,000, 2017 Utility System Revenue bonds due in annual installments through August 15, 2037; interest at 3.000% to 4.000% 24,590,000 $6,510,000, 2018 Utility System Revenue bonds due in annual installments through August 15, 2038; interest at 2.000% to 4.000% 6,105,000 $14,430,000, 2020 Utility System Revenue bonds due in annual installments through August 15, 2035; interest at 1.950% 14,430,000 $6,225,000,Utility System Revenue bonds due in annual installments through August 15, 2029; interest at 1.350% 6,225,000 Total outstanding revenue debt as of September 30, 2020 95,585,000$ City of Georgetown, Texas Notes to the Financial Statements 63 All net revenues of the electric and water services system are pledged for the payment of debt service for the revenue bonds. Net revenues, as defined by the various bond ordinances, include income and revenues derived from the operation of the system, after deduction of the amount necessary to pay all operating, maintenance, replacement, and betterment charges of the system. These bond ordinances require that the net revenues, as defined, equal at least 1.35 times the average annual debt service on all revenue bonds. The City complied with this requirement at September 30, 2020. Note 7. Defined Benefit Pension Plan A. Plan Description The City participates as one of 866 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report that can be obtained at www.tmrs.com. All eligible employees of the city are required to participate in TMRS. B. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven actuarially equivalent payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. A summary of plan provisions for the City are as follows: Employee deposit rate 7% Matching ratio (City to employee) 2 to 1 Years required for vesting 5 Service retirement eligibility 20 years at any age, 5 years at age 60 and above Updated Service Credit 100% Repeating Annuity Increase to retirees 30% of CPU Repeating City of Georgetown, Texas Notes to the Financial Statements 64 C. Employees Covered by Benefit Terms At the December 31, 2019 valuation and measurement date, the following employees were covered by the benefit terms: Retirees or beneficiaries currently receiving benefits 211 Inactive employees entitled to but not yet receiving benefits 269 Active employees 697 1,177 D. Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the consulting actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City of Georgetown were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City of Georgetown were 12.54%, 12.36%, and 12.26% in calendar years 2018, 2019, and 2020 respectively. The City’s contributions to TMRS for the year ended September 30, 2020 were $5,912,566 and were equal to the required contributions. E. Net Pension Liability The City’s Net Pension Liability (NPL) was measured as of December 31, 2019, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The Total Pension Liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 2.75% per year Investment rate of return 6.75%, net pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees is used with a 4- year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. City of Georgetown, Texas Notes to the Financial Statements 65 The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2109 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2020 are summarized in the following table: Asset Class Global equity 30.0% 5.30% Core fixed income 10.0% 1.25% Non-core fixed income 20.0% 4.14% Real return 10.0% 3.85% Real estate 10.0% 4.00% Absolute return 10.0% 3.48% Private equity 10.0% 7.75% Total 100.0% Target Allocation Long-term Expected Real Rate of Return (Arithmetic) Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. City of Georgetown, Texas Notes to the Financial Statements 66 Changes in Net Pension Liability Total Pension Liability Plan Fiduciary Net Position Net Pension Liability (a) (b) (a) - (b) Balance at December 31, 2018 154,718,502$ 125,955,474$ 28,763,028$ Changes for the year Service cost 7,773,892 - 7,773,892 Interest 10,571,618 - 10,571,618 Change of benefit terms - - - Difference between expected and actual experience (273,287) - (273,287) Changes of assumptions 529,624 - 529,624 Contributions - employer - 5,912,566 (5,912,566) Contributions - employee - 3,384,157 (3,384,157) Net investment income - 19,503,600 (19,503,600) Benefit payments, including refund of employee contributions (3,977,775) (3,977,775) - Administrative expense - (110,028) 110,028 Other changes - (3,307) 3,307 Net changes 14,624,072 24,709,213 (10,085,141) Balance at December 31, 2019 169,342,574$ 150,664,687$ 18,677,887$ Increase (Decrease) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one-percentage-point lower (5.75%) or one-percentage-point higher (7.75%) than the current rate: 1% Decrease in Discount Rate (5.75%) Discount Rate (6.75%) 1% Increase in Discount Rate (7.75%) City's net pension liability 45,178,292$ 18,677,886$ (2,976,262)$ F. Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in a separately issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com. City of Georgetown, Texas Notes to the Financial Statements 67 G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2020, the City recognized pension expense of $7,117,547. At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual economic experience 550,744$ 590,386$ Changes in actuarial assumptions 915,306 - Difference in projected and actual investment earnings 7,288,748 11,802,815 Contributions subsequent to the measurement date 4,629,366 - Total 13,384,164$ 12,393,201$ Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date of $4,629,336 will be recognized as a reduction of the net pension liability for the measurement year ending December 31, 2020 (i.e. recognized in the city’s financial statements September 30, 2021). Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Measurement Years Ended December 31, 2020 (755,828)$ 2021 (964,063) 2022 283,804 2023 (2,210,500) 2024 (13,706) Thereafter 21,890 (3,638,403)$ City of Georgetown, Texas Notes to the Financial Statements 68 Note 8. Other Post-Employment Benefits (OPEB) A. Post-Employment Healthcare Plan Plan Description and Benefits Provided In addition to the pension benefits described in the previous note, the City has established a medical insurance benefit plan for retirees, which is a single-employer defined benefit medical plan (the Retiree Medical Plan). The Retiree Medical Plan does not issue a publicly available financial report. Eligible retirees will be provided medical insurance benefits at a set premium rate annually. Eligible retirees may also cover their eligible dependents. Retirees are responsible for paying the premiums. A retiree is defined as someone who retires from the City and receives benefit payments. The City will stop insurance coverage on the retiree and dependent on the last day of the month when one of the following occurs: 1. The retiree reaches age 65; or 2. The retiree fails to submit the required set premium rate. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The following employees were covered by the benefit terms as of December 31, 2019. Retirees or beneficiaries 13 Inactive employees, nonretired members 0 Active members 688 701 Total OPEB Liability The City’s total OPEB liability was measured as of December 31, 2019, and was determined by an actuarial valuation as of December 31, 2019. Actuarial Assumptions and Other Inputs The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial cost method Individual entry-age normal Discount rate 2.75% Inflation 2.5% per year Salary increases 3.5% to 11.5%, including inflation Demographic assumptions Based on the experience study covering the four-year period ending December 31, 2018 as conducted for the TMRS. Mortality For healthy retirees, the gender-distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are projected on a fully generational basis using the ultimate mortality improvements rates in the MP tables to account for future mortality improvements. Health care trend rates Initial rate of 7% declining to an ultimate rate of 4.15% after 15 years. Participation rates 25% for retirees with age at least 50 at retirement; 0% for retirees with age less than 50 at retirement; 20% of retirees were assumed to elect two-person coverage. City of Georgetown, Texas Notes to the Financial Statements 69 Changes in the Total OPEB Liability Increase (Decrease) Total OPEB Liability Balance at September 30, 2019 2,237,267$ Changes for the year Service cost 154,054 Interest 84,088 Change of benefit terms - Difference between expected and actual experience 65,680 Changes of assumptions 286,037 Benefit payments (95,554) Net changes 494,305 Balance at September 30, 2020 2,731,572$ Changes of Assumptions Changes of assumptions and other inputs reflect the effects of changes in the discount rate for each period. In fiscal year 2020, amounts reflect an increase in the discount rate from the beginning of the year from 3.71% to 2.75%, revised TMRS demographic assumptions, and updates to the healthcare trend assumption. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, calculated using the discount rate of 2.75%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate. 1% Decrease in Discount Rate (1.75%) Discount Rate (2.75%) 1% Increase in Discount Rate (3.75%) Total OPEB liability 3,015,469$ 2,731,572$ 2,472,181$ The following presents the total OPEB liability of the City, calculated using the current healthcare cost trend rates as well as what the City’s total OPEB liability would be if it were calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the current trend rates. 1% Decrease in Healthcare Cost Rate Healthcare Cost Rate 1% Increase in Healthcare Cost Rate Total OPEB liability 2,369,196$ 2,731,572$ 3,167,511$ City of Georgetown, Texas Notes to the Financial Statements 70 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB OPEB Expense Year Ended September 30, 2020 Service cost 154,054$ Interest 84,088 Change of benefit terms - Difference between expected and actual experience 65,680 Changes of assumptions 286,037 Benefit payments (95,554) Expense 494,305$ As of September 30, 2020, the deferred inflows and outflows of resources are as follows: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual economic experience 62,999$ -$ Changes in actuarial assumptions 335,652 73,098 Difference in projected and actual investment earnings - - Contributions subsequent to the measurement date 71,666 - Total 470,317$ 73,098$ Amounts currently reported as deferred outflows of resources and deferred inflows of resources related to other postemployment benefits will be recognized in OPEB expense as follows: Year Ending September 30, 2021 34,824$ 2022 34,824 2023 34,824 2024 34,824 2025 34,824 Thereafter 151,433 325,553$ B. Life Insurance Benefits Plan Description and Benefits Provided TMRS administers a defined benefit group-term life insurance plan known as the Supplemental Death Benefits Fund (SDBF). This is a voluntary program in which participating member cities may elect, by ordinance, to provide group-term life insurance coverage for their active members, including or not including retirees. It is considered to be a single-employer plan. The City elected, by ordinance, to provide group-term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. City of Georgetown, Texas Notes to the Financial Statements 71 The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (Calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death). The death benefit for retirees is considered an OPEB and is a fixed amount of $7,500. As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded OPEB plan (i.e. no assets are accumulated). Inactive employees currently receiving benefits 158 Inactive employees entitled to but not yet receiving benefits 84 Active employees 697 939 Contributions Valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during employee’s entire careers. The City’s contributions to the TMRS SDBF for the year ended September 30, 2020 were $4,835, which equaled the required contributions. Total OPEB Liability The City’s total OPEB liability was measured as of December 31, 2019 and was determined by an actuarial valuation as of that date. Actuarial Assumptions The City’s total OPEB liability in the December 31, 2019 valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Salary increases 3.5% to 11.5%, including inflation Discount rate 2.75% Retirees' share of benefit related costs $0 Administrative expenses All administrative expenses are paid through the Pension Trust. Mortality rates - service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Mortality rates - disabled retirees 2019 Municipal Retirees of Texas Mortality Tables with a 4 year setforward for males and a 3 year set- forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The discount rate was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2019. The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31, 2018. City of Georgetown, Texas Notes to the Financial Statements 72 Changes in the Total OPEB Liability Increase (Decrease) Total OPEB Liability Balance at December 31, 2018 1,087,308$ Changes for the year Service cost 72,518 Interest 41,595 Change of benefit terms - Difference between expected and actual experience (6,941) Changes of assumptions 262,118 Benefit payments (4,835) Net changes 364,455 Balance at December 31, 2019 1,451,763$ Due to the SDBF being considered an unfunded OPEB plan under GASB 75, benefit payments are treated as being equal to the employer’s yearly contributions for retirees. Changes in assumptions are a result of the change in municipal bond index rate from the previous year. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate of 2.75%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage-point lower (1.75%) or one percentage-point higher (3.75%) than the current rate: 1% Decrease in Discount Rate (1.75%) Discount Rate (2.75%) 1% Increase in Discount Rate (3.75%) Total OPEB liability 1,805,110$ 1,451,763$ 1,181,872$ OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended September 30, 2020, the City recognized OPEB expense of $143,164. At September 30, 2020, the City reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual economic experience -$ 20,715$ Changes in actuarial assumptions 217,706 - Difference in projected and actual investment earnings - - Contributions subsequent to the measurement date - - Total 217,706$ 20,715$ City of Georgetown, Texas Notes to the Financial Statements 73 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending September 30, 2021 29,051$ 2022 29,051 2023 29,051 2024 29,051 2025 29,051 Thereafter 51,736 196,991$ Note 9. Risk Management Health Benefits – On January 1, 2014, the City began a self-funded insurance program for provision of employee health insurance. In fiscal year 2019, the City made contributions to cover 83% of the employees’ costs for medical plan premiums. The employees authorized payroll withholdings to pay the remainder contributions for themselves, and their family members, if elected. In accordance with state statute, the City maintains a catastrophic loss insurance policy (stop-loss policy), which reimburses the City for annual claims totaling over $150,000 per covered individual. For the fiscal year ended 2020, $867,868 in stop-loss payments were received by the City. The City made no significant reductions in insurance coverage and no settlements have exceeded insurance coverage for the 2020 fiscal year. The City’s contributions for the self-insurance during the year totaled $7,940,475. Estimates of claims payable and of claims incurred but not reported at September 30, 2020 are reflected as accrued expenses of the fund. The liabilities include an amount for claims that have been incurred but were not reported until after September 30, 2020. Because actual claims liabilities depend on such complex factors such as inflation, changes in legal requirements, and damage awards, the process used in computing claims liability is an estimate that could materially change when the claims are ultimately finalized. Analysis of claims liability for the fiscal year 2020 is as follows: Unpaid claims, beginning of year 580,933$ Incurred claims 7,402,649 Claim payments (7,386,649) Unpaid claims, end of year 596,933$ Note 10. Deferred Compensation Plan The City offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or an unforeseeable emergency. City of Georgetown, Texas Notes to the Financial Statements 74 Note 11. Commitments and Contingencies A. Wholesale Power Agreements The City has the following long-term agreements, which represent significant commitments:  American Electric Power (AEP), through 2028  Électricité de France Renewable Energy (EDF-RE), through 2035  Clearway Energy, through 2043  Mercuria Energy America (MEA) through 2021 B. Brazos River Authority (BRA) Water Contracts Effective September 1, 2001, the City revised its previous water availability agreements with the BRA to further plan for future water needs and to standardize the pricing to a system-wide rate. The effective system-wide rate for Lake Georgetown Water and Lake Stillhouse Hollow Water fiscal year beginning September 1, 2020 is $79.00 per acre-foot and for Colorado River Basin for fiscal year beginning September 1, 2020 is $181.25 per acre-foot. The City paid a total of $3,625,861 for water during the fiscal year. The City has three separate agreements with the BRA as follows: Lake Georgetown Water – This agreement, effective September 1, 2001 and expiring August 31, 2050, requires BRA to make available to the City 6,720 acre-feet of water per year at BRA’s system wide rate. The City paid $531,728 for water under this agreement in fiscal year 2020. Lake Stillhouse Hollow Water – This agreement, effective September 1, 2001 and expiring August 31, 2040, requires BRA to make available to the City 38,987 acre-feet of water per year at BRA’s system wide rate. The City paid $3,084,895 for water under this agreement in fiscal year 2020. Colorado River Basin – This agreement, effective July 1, 2020, and expiring August 31, 2030, requires BRA to make available to the City 1,200 acre-feet of water per calendar year based on the Total LCRA Water Rate under the LCRA contract with the BRA. The City paid $9,237 for water under this agreement in fiscal year 2020. C. Brazos River Authority – Williamson County Regional Raw Water Line Agreement The City is a party to an agreement dated June 30, 1986, with the Brazos River Authority (BRA), City of Round Rock, Jonah Water Special Utility District, and Chisholm Trail Special Utility District (CTSUD). The Brazos River Authority designed, constructed, owns, and operates a pipeline to transport water from Lake Stillhouse Hollow to Lake Georgetown to benefit the parties in the agreement. Total project construction cost for the raw water line was approximately $40,000,000. In 2007, BRA refunded a portion of the original $89,000,000 in debt, leaving approximately $69,000,000 outstanding debt, including principal and interest. Each participant agreed to pay for the annual cost of debt and operations of the line. The City’s obligation is $50,500,000, including principal and interest, to be repaid annually through 2032. The amount for fiscal year 2020 was $2,371,890. City of Georgetown, Texas Notes to the Financial Statements 75 The following schedule reflects the principal portion of the City’s obligation: Years Ending September 30, 2021 2,277,352$ 2022 2,273,009 2023 2,276,986 2023 2,271,146 2025-2033 15,079,182 24,177,675$ As part of the CTSUD acquisition that occurred on September 12, 2014, the City assumed the ownership interest and related obligations of CTSUD’s portion of this project. D. Georgetown Village Public Improvement District In 1999, the City of Georgetown created the Georgetown Village Public Improvement District No. 1, pursuant to Chapter 372 of the Texas Local Government Code. The City is required to construct and provide operation, repair, and maintenance of parks, recreational facilities, alleyways, lighting, landscaping and related improvements to the district that are above the standards that are met elsewhere in the City. Property owners are assessed an annual maintenance assessment of $0.14 per $100 valuation. Assessment revenue of $458,669 was recognized for 2020. As of September 30, 2020, $780,381 of costs associated with the Georgetown Village Public Improvement District have been reimbursed. E. Cimarron Hills Public Improvement District In May 2000, the City and Paloma Cimarron Hills, L.P. entered into a development agreement for a 606 home, 813 acre subdivision within the City’s Extraterritorial Jurisdiction (ETJ). As part of this agreement, the City created the Cimarron Hills PID to reimburse the developer for costs of certain infrastructure improvements. Each lot within the development is assessed an annual fee based on its type of usage. The City also collects a per unit transportation fee which will be used to fund necessary roadway improvements and bridge crossings in the area. PID assessment collection began in 2002. In 2020, no PID assessments were received. The developer was reimbursed $1,686 from current year collections and available fund balance. The assessments and related disbursements are recorded in the Agency Funds. F. Gateway Tax Increment Reinvestment Zone (TIRZ) This was established in November 2006 to fund improvements needed for redevelopment of the Williams Drive gateway area. A master plan for the area was developed in 2006, with implementation planned for future years. For the year ending September 30, 2020, total revenues were $52,471 with no expenditures. G. Downtown Tax Increment Reinvestment Zone (TIRZ) This was established in 2004 to fund improvements in the downtown overlay district to assist in funding the downtown master plan. For the year ending September 30, 2020, total revenues were $307,300 with total expenditures of $50,484. City of Georgetown, Texas Notes to the Financial Statements 76 H. Rivery Park Tax Increment Reinvestment Zone (TIRZ) This was established in 2008 to fund a convention center/hotel complex, as well as, an expansion to Rivery Park. In January 2014, the City entered into agreements for a 220-room Sheraton hotel and conference center at the 32-acre Rivery site for the development of the Summit at Rivery Park (Rivery) project. This project includes a 16,000 square-foot conference center that can accommodate up to 4,500 people and a public parking garage. Plans for the project include future phases with retail stores, restaurant sites, single-family homes, and multifamily residences for a total project investment of $150,000,000 including $65,000,000 for the hotel, conference center, and parking garage. Private investors funded most of the project costs. A total of $16,800,000 in future City and County property taxes generated at the site will be used to reimburse the City and the developer for the cost of the hotel and conference center, parking garage, and other public improvements. This includes $12,500,000 of investments by the City and its related entities including GEDCO and GTEC. In December 2014, the city council extended the construction and completion dates for the various development agreements for the project. Ground breaking occurred in February 2015, while the grand opening occurred on July 28, 2016. The City and Williamson County agreed to reimburse up to $25,000,000 for the project. The City will contribute 100% and Williamson County will contribute 80% of their respective incremental ad valorem tax valuation generated at the 32-acre site to fund the project. The City will remit half of the 1% City sales tax generated at the site to Williamson County as part of the agreement. For the year ending September 30, 2020, total revenues were $754,131 with total expenditures of $606,083. I. South Georgetown Tax Increment Reinvestment Zone (TIRZ) In June 2014, the City created the South Georgetown TIRZ on 595 undeveloped acres along Westinghouse Road near IH-35 to accelerate and ensure quality development and job creation in the area. This project abuts the high-growth corridor in neighboring Round Rock. The City intends to use this TIRZ to proactively build infrastructure, including sewer and road improvements, using future TIRZ revenues to reimburse the City for the costs of these improvements. The TIRZ is expected to fund up to $50,000,000 of public improvements through December 2044, with an estimated future assessed valuation within the TIRZ in excess of $573,000,000. The City is currently in negotiations with landowners and developers in the area to facilitate and leverage the TIRZ improvements to ensure the success of the project. For the year ending September 30, 2020, total revenues were $542,807 with expenditures of $500,000. J. Wolf Lakes Tax Increment Reinvestment Zone (TIRZ) In December 2018, the City created the Wolf Lakes TIRZ on 164 acres located at the northwest corner of Interstate 35 and University Ave (SH29), bounded by Wolf Ranch Parkway to the west and the River Hills subdivision to the north. The purpose of the TIRZ is to provide economic and qualitative benefits by facilitating a program of public improvements. The City and Williamson County agreed to reimburse up to $130,000,000 for public improvement projects in the TIRZ. The City will contribute 70% of their respective incremental ad valorem tax valuation generated up to $100,000,000 and Williamson County will contribute 50% of their respective incremental ad valorem tax valuation generated up to $30,000,000. City of Georgetown, Texas Notes to the Financial Statements 77 K. Chapter 552 Infrastructure Financing Reimbursement Agreement In August 2014, the City entered into a Chapter 552 Infrastructure Financing/Reimbursement Agreement for the Hillwood Wolf Ranch Development Project. This agreement is one of several associated with this project which included the City’s consent to the creation of an In-City Municipal Utility District (MUD) to finance the costs of various improvements. This Chapter 552 agreement, allowable under Chapter 552 of the Local Government Code, facilitates the reimbursement of up to $25,000,000 to the MUD for construction of specified public improvements within the Hillwood Wolf Ranch development. The annual repayment amount is funded from City ad valorem tax revenues received by the City for property within the MUD at a rate of $0.15/per $100 assessed valuation. The terms of this Chapter 552 Agreement continue until dissolution of the MUD or the date on which the City pays the maximum reimbursement amount of $25,000,000, whichever occurs first. Reimbursements were made in FY2020 totaling $255,414. L. Chapter 380 Agreement Sales Tax Grant In 2017, the City entered into a 380 Agreement with Holt Texas Ltd as part of an economic development agreement as an incentive for Holt Texas Ltd to expand its investment in infrastructure, land, and other improvements. As an incentive to expand Holt’s investment, the City agreed to provide five (5) sales tax grants equal to 50% of the 1% general fund sales taxes collected by the City from Holt sales tax receipts in a 12 months sales tax reporting period up to a maximum of $2,000,000. Holt Texas Ltd is required to meet a minimum sale of taxable items of $35,000,000 in each sales tax reporting period in order to be eligible for the sales tax grant for that year. Holt Texas Ltd will open the expanded facility in the fourth quarter of 2019 with the first reporting period to be in 2020, fiscal year 2021. The agreement expires after the fifth sales tax grant is issued or the maximum $2,000,000 is met. M. Garey Park Trust In June 2014, the City entered into a memorandum of understanding (MOU) whereby Alan Jack Garey donated his 525-acre ranch and home, on the conditions that the property shall be used exclusively as a public park and recreational facility for the benefit of all residents of the City of Georgetown and surrounding areas. The Gareys deeded 321.45 acres of land to the Texas Parks and Recreation Foundation, in trust for the benefit of the City. All of the land is now in the City of Georgetown’s name. We have accepted operations and maintenance for the park. Garey Park opened in June 2018. N. Grants Amounts received or receivable from grantor agencies, principally the federal government, are subject to audit and adjustment by the agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. O. Litigation The City is involved in various legal actions in which claims of varying amounts are being asserted against the City. The City follows the practice of providing for these claims only when they become probable and reasonably determinable in amount. In the opinion of City management, these actions will not result in a significant change in the City's financial position. P. Construction Contracts Encumbrances on construction projects in progress as of September 30, 2020 are approximately $10,439,000 for Governmental Funds and approximately $14,437,000 for Enterprise Funds. City of Georgetown, Texas Notes to the Financial Statements 78 Note 12. Financial Hedging In an effort to mitigate the financial and market risk associated with the purchase of natural gas, energy, and congestion price volatility, the City has established a Risk Management Policy. This policy was authorized by the City Council to enter into forward contracts for natural gas, swaps, and congestion rights for the purpose of reducing exposure to natural gas, energy, and congestion price risk. Use of these types of instruments for the purpose of reducing exposure to price risk is performed as a hedging activity. At September 30, 2020, the City had multiple outstanding contracts, with wholesale customers to provide power supply and/or qualified scheduling entity services. For the power supply customers, the City charges an energy charge which is based on the quantity of power supplied multiplied by a fixed price, or multiplied by a fixed heat rate and a fuel index price. In order to hedge the City’s risk, the City has entered into corresponding power supply agreements with counterparties to hedge against energy price or heat rate fluctuation in the market. These contracts meet the definition of a derivative instrument as defined by GASB Statement No. 53, Accounting and Reporting for Derivative Instruments (GASB 53). However, these contracts meet the normal purchases and sales exemption of GASB 53 as the City intends to use the physical commodity in its normal utility operations to supply energy to its customers. Accordingly, these contracts are not within the scope of GASB 53 and are not recorded on the City’s Statement of Net Position. At September 30, 2020, the City maintains a $3,000,000 Letter of Credit at the Electric Reliability Council of Texas (ERCOT) in lieu of maintaining an unsecured deposit with that agency to comply with fiscal surety requirements. A. Risks Credit Risk. The City’s over-the-counter agreements for natural gas and energy expose the City to credit risk. In the event of default, the City’s operations will not be materially affected. However, the City does not expect the counterparties to fail to meet their obligations. The City maintains contracts with contractual provisions under the EEI (Edison Electric Institute) and EPC (Energy Procurement Contract) agreements. Termination Risk. Termination risk is the risk that a derivative will terminate prior to its scheduled maturity date due to a contractual event. Contractual events include illegality, tax and credit events upon merger and other events. The City’s exposure to termination risk for over-the counter agreements is minimal due to the high credit rating of the counterparties, and the contractual provisions under the EEI and EPC agreements applied to these contracts. Termination risk is associated with all of the City’s derivatives up to their fair value of the instrument. Netting Arrangements. The City enters into netting arrangements whenever it has entered into more than one derivative transaction with counterparty. Under the terms of these arrangements, should one party become insolvent or otherwise default on its obligations, close-out netting provisions permit the non- defaulting party to accelerate and terminate all outstanding transactions and net the transaction’s fair values so that a single sum will be owed by or owed to the non-defaulting party. City of Georgetown, Texas Notes to the Financial Statements 79 Note 13. Subsequent Events Due to the major winter storm that hit the State of Texas in February 2021, the price of energy experienced record price increases for an extended period of time. Due to these price increases, the Georgetown Electric Fund owes Shell Energy North America, our Qualified Scheduling Entity for the Texas market, between $45 - $50 million by April 1, 2021. With approval of the City Council, the City of Georgetown is looking to finance this obligation with tax-supported debt for a ten-year period. The City Council has set Electric utility rates sufficient to repay this debt obligation. Due to this additional obligation, Standard & Poor’s lowered the rating on the Utility System Revenue Bonds to A+ as of February 2021. 80 This page intentionally left blank. 81 Required Supplementary Information City of Georgetown, Texas Required Supplementary Information For the Fiscal Year Ended September 30, 2020 82 Texas Municipal Retirement System – Schedule of Changes in Net Pension Liability and Related Ratios* Measurement Measurement Measurement Measurement Measurement Measurement 2019 2018 2017 2016 2015 2014 Total pension liability Service cost 7,773,892$ 7,418,271$ 6,897,077$ 6,387,917$ 5,660,967$ 4,549,949$ Interest 10,571,618 9,700,878 8,852,731 8,051,567 7,402,393 6,747,717 Changes of benefit terms - - - - - - Difference between expected and actual experience (273,287) (511,751) 231,554 486,906 903,470 71,207 Changes of assumptions 529,624 - - - 1,980,757 - Benefit payments (3,977,775) (3,792,957) (3,560,669) (3,063,090) (2,491,010) (2,652,717) Net change in total pension liability 14,624,072 12,814,441 12,420,693 11,863,300 13,456,577 8,716,156 Total pension liability - beginning 154,718,502 141,904,061 129,483,368 117,620,068 104,163,491 95,447,335 Total pension liability - ending (a)169,342,574$ 154,718,502$ 141,904,061$ 129,483,368$ 117,620,068$ 104,163,491$ Plan fiduciary net position Contributions - employer 5,912,566$ 5,725,188$ 5,323,953$ 4,630,015$ 4,371,324$ 3,800,520$ Contributions - employee 3,384,157 3,229,347 3,009,880 2,798,414 2,592,095 2,256,459 Net investment income 19,503,600 (3,736,957) 14,606,240 6,398,399 132,967 4,694,918 Benefit payments (3,977,775) (3,792,957) (3,560,669) (3,063,089) (2,491,010) (2,652,717) Administrative expense (110,028) (72,138) (75,638) (72,218) (80,978) (49,007) Other (3,307) (3,767) (3,833) (3,891) (4,000) (4,029) Net change in plan fiduciary net position 24,709,213 1,348,716 19,299,933 10,687,630 4,520,398 8,046,144 Plan fiduciary net position - beginning 125,955,476 124,606,760 105,306,827 94,619,197 90,098,799 82,052,655 Plan fiduciary net position - ending (b) 150,664,689 125,955,476 124,606,760 105,306,827 94,619,197 90,098,799 Net pension liability - ending (a) - (b)18,677,885$ 28,763,026$ 17,297,301$ 24,176,541$ 23,000,871$ 14,064,692$ Plan fiduciary net position as a percentage of total pension liability 88.97% 81.41% 87.81% 81.33% 80.44% 86.50% Covered payroll 48,345,099$ 46,133,526$ 42,892,268$ 39,775,322$ 37,121,089$ 32,235,133$ Net pension liability as a percentage of covered payroll 38.63% 62.35% 40.33% 60.78% 61.96% 43.63% *Schedule will include 10 years of information as it becomes available. City of Georgetown, Texas Required Supplementary Information – Continued For the Fiscal Year Ended September 30, 2020 83 Texas Municipal Retirement System – Schedule of Contributions* September 30, September 30, September 30, September 30, September 30, September 30, 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 5,912,566$ 5,900,133$ 5,682,270$ 5,172,343$ 4,519,980$ 4,165,570$ Contributions in relation to the actuarially determined contribution 5,912,566 5,900,133 5,682,270 5,172,343 4,519,980 4,165,570 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ Covered payroll 48,345,099$ 48,020,769$ 45,293,424$ 39,775,322$ 37,121,089$ 32,235,133$ Contributions as a percentage of covered payroll 12.23% 12.29% 12.55% 13.00% 12.18% 12.92% *Schedule will include 10 years of information as it becomes available. City of Georgetown, Texas Required Supplementary Information – Continued For the Fiscal Year Ended September 30, 2020 84 Notes to TMRS Schedules TMRS schedules are intended to show information for ten years, and future years’ information will be displayed as it becomes available. Valuation Date Actuarial determined contribution rates are calculated as of December 31 and become effective in January, 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial cost method Entry age normal Amortization method Level percentage of payroll, closed Remaining amortization period 26 years Asset valuation method 10 year smoothed market, 12.00% soft corridor Inflation 2.50% Salary increases 3.50% to 11.50%, including inflation Investment rate of return 6.75% Retirement age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2019 valuation pursuant to an experience study of the period 2014 - 2018. Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projected on a fully generational basis with scale UMP. There were no benefit changes during the year. City of Georgetown, Texas Required Supplementary Information – Continued For the Fiscal Year Ended September 30, 2020 85 Post-employment Healthcare Plan – Schedule of Changes in the OPEB Liability and Related Ratios* Measurement Measurement Measurement 2019 2018 2017 Total OPEB liability Service cost 154,054$ 144,760$ 128,392$ Interest 84,088 73,344 74,997 Changes of benefit terms - - - Difference between expected and actual experience 65,680 4,261 - Changes of assumptions 286,037 (90,006) 106,325 Benefit payments (95,554) (77,104) (63,836) Net change in total OPEB liability 494,305 55,255 245,878 Total OPEB liability - beginning 2,237,267 2,182,012 1,936,134 Total OPEB liability - ending 2,731,572$ 2,237,267$ 2,182,012$ Covered payroll 48,345,099$ 46,133,526$ 40,193,300$ Total OPEB liability as a percentage of covered payroll 5.65% 4.85% 5.43% Life Insurance Benefits – Schedule of Changes in the OPEB Liability and Related Ratios* Measurement Measurement Measurement 2019 2018 2017 Total OPEB liability Service cost 72,518$ 83,040$ 64,338$ Interest 41,595 37,420 34,993 Changes of benefit terms - - - Difference between expected and actual experience (6,941) (25,887) - Changes of assumptions 262,118 (93,944) 100,531 Benefit payments (4,835) (4,613) (4,289) Net change in total OPEB liability 364,455 (3,984) 195,573 Total OPEB liability - beginning 1,087,308 1,091,292 895,719 Total OPEB liability - ending 1,451,763$ 1,087,308$ 1,091,292$ Covered payroll 48,345,099$ 46,133,526$ 42,892,268$ Total OPEB liability as a percentage of covered payroll 3.00% 2.36% 2.54% *Schedules will include 10 years of information as it becomes available. City of Georgetown, Texas Required Supplementary Information – Continued For the Fiscal Year Ended September 30, 2020 86 Modified Approach for Streets Infrastructure Capital Assets GASB Statement 34 allows the City to use the Modified Approach with respect to infrastructure assets instead of depreciating these assets. The City Council adopted an average PCI level of 85, which is considered “good” condition for a street. The City’s system for reporting assets is fully discussed in Note 1(n) of the notes. The following is additional information for the City’s streets infrastructure for fiscal year 2020. This information is updated every three years and comparative data is included. Condition Rating Segments % of Segments Area (sq. ft., in 000's) % of Segments Excellent 95-100 1,350 33.0% 18,386 29.6% Good 85-95 1,264 30.9% 16,699 26.9% Fair 75-85 691 16.9% 8,878 14.3% Marginal 65-75 348 8.5% 4,425 7.1% Poor 40-65 348 8.5% 4,707 7.6% Damaged <40 95 2.3% 8,921 14.4% 4,096 100.0% 62,016 100.0% 2008-2010 2011-2013 2014-2017 2018-2020 Arterial 93.00 89.70 90.00 94.50 Collector 93.75 86.30 86.10 85.80 Local 92.70 87.50 86.50 83.70 Overall network 93.00 87.70 87.30 85.50 Fiscal Years Ending September 30, 2020 2019 2018 2017 2016 2015 Estimated maintenance cost 6,147,579$ 6,801,616$ 7,544,210$ 4,202,259$ 3,625,000$ 3,570,000$ Budgeted maintenance cost 5,081,762 6,945,399 7,525,408 4,813,259 4,520,000 4,811,850 Actual maintenance cost 4,984,964 4,851,658 4,749,625 4,126,042 4,550,677 4,106,996 Condition Rating Summary PCI Rating by Functional Class Costs to Maintain System at Designated Level 87 Combining and Individual Fund Financial Statements and Schedules City of Georgetown, Texas Combining and Individual Fund Financial Statements and Schedules – Nonmajor Governmental Funds 88 Special Revenue Funds Special Revenue Funds (SRFs) are used to account for proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City of Georgetown utilizes multiple SRFs to provide an extra level of transparency and accountability to the taxpayers. Council Discretionary – This SRF was created in July 2015 and includes the projected year-end General Fund balance not allocated in the budget. These funds will be expended at the direction of the City Council for specific one-time purposes. Conservation – is dedicated to energy efficiency programs and projects, and is supported solely by the $.20 Conservation Fee charged monthly to all City of Georgetown electric customers on their utility bills. This fee is used to maintain compliance with House Bill 3693, which calls for enhancement of existing energy efficiency programs and strengthening of statutory requirements, as well as, to promote more electric demand management by customers. Specific programs supported by the Conservation SRF include Home Energy Audits, Weatherization Programs, and the LED Light Bulb Exchange Program. Court Fees – includes the following SRFs:  Court Security Fund  Court Technology Fund  Court Child Safety Fund  Juvenile Case Manager Fund The Court Security Fund is used to account for the receipt and expenditure of court costs related to security personnel. The Court Technology Fund is used to finance the purchase or maintenance of technological enhancements for the Municipal Court. Court Child Safety Fund is used to fund school crossing guard programs or other safety activities. All funds are governed by State statute. The Juvenile Case Manager Fund is used for the receipt and expenditure of a court fee that is collected for a juvenile case manager. The fund is to finance the salary, benefits, training, travel expenses, office supplies, and other necessary expenses of the juvenile case manager, as outlined by statute. Development includes the following SRFs:  Permitting Fund  Community Development Block Grant (CDBG) Fund  Main Street Façade Fund The Permitting Fund’s source is technology fees charged to builders and property owners. These fees support the MyPermitNow system which is a comprehensive electronic permit, inspection, and tracking system for all types of construction projects. This system allows for efficient and improved customer service for both the internal and external customers by providing real time online permit information to customers. The CDBG Fund is financed through the US Department of Housing and Urban Affairs Division. CDBG funds are administered through Williamson County and fund infrastructure improvements, such as sidewalks in eligible geographic areas. City of Georgetown, Texas Combining and Individual Fund Financial Statements and Schedules – Nonmajor Governmental Funds – Continued 89 The Main Street Façade Fund accounts for grants distributed by the Main Street Board for the improvement of commercial facades in the Downtown Overlay District. Revenue sources include General Fund contributions and fund raising efforts by the Main Street Board. Fire – includes the following SRFs:  Fire Billing Fund  EMS Paramedic Fund The Fire Billing Fund’s revenue is derived from inspections and billing insurance carriers for fire protection services. These funds are used to purchase fire equipment and special needs. Revenues are also used to help fund fire prevention needs and public education. Library – accounts for the receipt and expenditure of restricted donations such as memorials and gifts for a designated library purchase or program. Parks – includes the following funds:  Tree Fund  Parks Restricted Fund  Parkland Dedication  Cemetery Fund The Tree Fund is financed by fees assessed when development projects remove trees. These funds are used to plant, prune, irrigate, maintain, and fund other associated tree activities in City parks, or other City- owned property. The Parks Restricted Fund is used to account for transfers in, donations, and grants. Funds are used for equipment replacement for parks. The Parkland Dedication Fund was established through the Parkland Dedication Ordinance. When new residential developments are built, the developer is required to dedicate land or pay a fee in lieu of dedication. When a fee is paid, the money is set aside to be used in a restricted zone near the development. The funds must be used for parks and recreation improvements such as new playgrounds, new parks, new trails, or to buy parkland. The Cemetery Fund pays for the ongoing maintenance of the City’s cemeteries. Revenues are generated from plot sales and maintenance fees. In addition, the City Council committed to transfer money in from the General Fund to plan for long-term maintenance. PEG Fee – The Public, Education, and Government (PEG) Fund is used to account for the receipt and expenditure of PEG fees collected through cable providers that are legally restricted for capital expenditures related to the City's cable access channel. Police – includes the following funds:  Police Seizures Fund  Abandoned Vehicle Fund  Animal Services Fund City of Georgetown, Texas Combining and Individual Fund Financial Statements and Schedules – Nonmajor Governmental Funds – Continued 90 The Police Seizures Fund is used to account for properties and revenues seized by the Georgetown Police Department. Federal and Texas State Law requires the funds only be used for a defined set of law enforcement purposes such as law enforcement training, crime prevention awareness programs, asset accounting and tracking, and witness-related costs. Purchases of police equipment and facilities equipment are also permitted under state law. The Abandoned Vehicle Fund is used to track costs and related revenues for vehicles that have been impounded and are later auctioned. The Animal Services Fund accounts for donations received from various sources and is used for items and projects that are related to the capital and service needs of the animal shelter. Public Improvement Districts (PIDs) – includes the following funds:  Village PID Fund  Wolf Ranch PID Fund The Village PID Fund accounts for taxes collected from property assessments in the Georgetown Village PID Tax District. The revenue is used for basic maintenance of parks and open spaces of less than one acre. Basic maintenance of parks one acre and larger are maintained by the City of Georgetown and is not paid for by the PID. Revenue is also used for landscape, nature trails and pedestrian walkways, park benches, trash containers, and entry signs and other similar signs. The Wolf Ranch PID Fund was created to account for the collection of debt service incurred by the issuance of $10,500,000 in sales tax revenue bonds which were used to complete the IH 35 frontage in front of the Wolf Ranch development site. Streets Sales Tax – accounts for the receipt and expenditure of revenues collected from the quarter-cent sales tax approved by the citizens in November 2001 under Texas House Bill 445. The funds are required to be spent on maintenance of streets that were in existence at the time of adoption of the tax. This tax was reauthorized by voters in November of 2006, 2010, 2014, and 2018. Tax Increment Reinvestment Zones (TIRZ) – accounts for public improvements within an area that will generate private-sector development. The tax base is frozen at a predevelopment level and the increases in taxes derived from increases in assessed valuations are used to retire bonds originally issued for the development or to leverage future growth in the assigned areas. TIRZ includes the following funds:  Downtown TIRZ  Rivery TIRZ  Gateway TIRZ  South Georgetown TIRZ  Wolf Lakes TIRZ The Downtown TIRZ was created by Ordinance No. 2004-77 and covers approximately 66 (+/-) acres, located entirely in Williamson County and within the corporate limits of the City. This fund is used to account for the development and redevelopment of downtown Georgetown into a mixed use, pedestrian- oriented environment, consistent with the goals of the City’s Downtown Master Plan. The Rivery TIRZ was created by Ordinance No. 2011-91, and the duration is through December 31, 2041. This fund is to help provide a financing vehicle necessary to facilitate a program of public improvements to allow and encourage the development of a hotel and conference center, enhance the overall park experience, the establishment of single and multifamily residential development, and commercial/retail space. City of Georgetown, Texas Combining and Individual Fund Financial Statements and Schedules – Nonmajor Governmental Funds – Continued 91 The Gateway TIRZ was created by Ordinance No. 2006-204, and the duration is through December 31, 2031. This fund is to help finance a program of public improvements to allow and encourage the development and redevelopment of the Williams Drive Gateway area into a mixed use, pedestrian oriented environment, consistent with the goals of the City’s Williams Drive Gateway Redevelopment Plan. The South Georgetown TIRZ was created by Ordinance No. 2014-31 and the duration is through December 31, 2044. The fund will be used to account for public infrastructure necessary to encourage high quality commercial/retail development at the intersection of IH-35 and Westinghouse Road, which is seen as the next major node as growth continues to move north from Round Rock, Texas. The Wolf Lakes TIRZ was created by Ordinance No. 2018-76 and the duration is through December 31, 2049. The fund is to provide economic and qualitative benefits by facilitating a program of public improvements on the northwest corner of IH-35 and its intersection with SH-29. Tourism – accounts for the receipt and expenditure of funds received by the City from the assessment of the 7% Hotel Occupancy Tax for hotel stays within the City. Eligible expenses are defined by state law and include operating a visitor center, promotion of local cultural sites, and historic preservation. City of Georgetown, Texas Combining Balance Sheet Nonmajor Governmental Funds September 30, 2020 92 Council Discretionary Development Fire ASSETS Cash and cash equivalents 58,811$ 514,836$ 55,052$ 277,259$ 245,961$ 67,378$ Investments 52,154 456,552 48,679 245,871 185,550 59,750 Accounts receivable, net Property tax - - - - - - Sales tax - - - - - - Grants - - - 10,810 - - Other - - - - 796,431 - Notes - - - - - - TOTAL ASSETS 110,965$ 971,388$ 103,731$ 533,940$ 1,227,942$ 127,128$ LIABILITIES AND FUND BALANCE Accounts payable -$ -$ 3,985$ 20,923$ 48,527$ 12,997$ Due to other funds - - - - - - Unearned revenue - - - - 794,742 - Total liabilities - - 3,985 20,923 843,269 12,997 DEFERRED INFLOWS - PROPERTY TAXES - - - - - - FUND BALANCE Restricted - - 99,746 - - - Committed 110,965 971,388 - 513,017 384,673 114,131 Total fund balance 110,965 971,388 99,746 513,017 384,673 114,131 TOTAL LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCE 110,965$ 971,388$ 103,731$ 533,940$ 1,227,942$ 127,128$ Conservation Court Fees Library Restricted 93 Street Sales Parks PEG Fees Police Tax Tourism Total 2,531,157$ 118,779$ 183,170$ 460,239$ 2,005,676$ 835,689$ 902,435$ 8,256,442$ 2,244,611 105,333 162,575 408,137 1,778,619 741,082 800,272 7,289,185 - - - 677 - - - 677 - - - - 757,252 - - 757,252 - - - - - - - 10,810 - 40,605 - 842,975 - - - 1,680,011 - - - - - - 2,823 2,823 4,775,768$ 264,717$ 345,745$ 1,712,028$ 4,541,547$ 1,576,771$ 1,705,530$ 17,997,200$ 24,802$ -$ 3,230$ 213,631$ 1,010,998$ 6,220$ 29,567$ 1,374,880$ - - - 587,299 - - - 587,299 - - - 255,675 - - - 1,050,417 24,802 - 3,230 1,056,605 1,010,998 6,220 29,567 3,012,596 - - - 676 - - - 676 - 264,717 311,310 654,747 3,530,549 1,570,551 1,675,963 8,107,583 4,750,966 - 31,205 - - - - 6,876,345 4,750,966 264,717 342,515 654,747 3,530,549 1,570,551 1,675,963 14,983,928 4,775,768$ 264,717$ 345,745$ 1,712,028$ 4,541,547$ 1,576,771$ 1,705,530$ 17,997,200$ Tax Increment Reinvestment Zones Public Improvement Districts City of Georgetown, Texas Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds For the Fiscal Year Ended September 30, 2020 94 Council Discretionary Conservation Court Fees Development Fire Library Restricted REVENUES Property tax/assessments -$ -$ -$ -$ -$ -$ Sales tax - - - - - - Franchise tax - - - - - - Other taxes - - - - - - Charges for services - 67,143 - 189,113 142,877 - Fines and forfeitures - - 34,880 614 - - Donations and grants - - - 181,678 33,575 178,606 Investment income 1,582 13,922 1,204 5,927 6,013 2,068 Other revenue - - 15,192 58,763 115,357 85 Total revenues 1,582 81,065 51,276 436,095 297,822 180,759 EXPENDITURES Culture / recreation - - - - - 84,072 Development - - - 62,718 - - Fire services - - - - 263,885 - General government - - - 112,516 - - Highways and streets - - - 3,175 - - Police - - 16,558 - - - Environmental services - 87,277 - - - - Capital outlay - - - 148,017 - - Total expenditures - 87,277 16,558 326,426 263,885 84,072 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,582 (6,212) 34,718 109,669 33,937 96,687 OTHER FINANCING SOURCES (USES) Transfers in - - - 15,000 - - Transfers out - - - - - (65,000) Total other financing sources (uses) - - - 15,000 - (65,000) Net change in fund balance 1,582 (6,212) 34,718 124,669 33,937 31,687 Fund balances, beginning of period 109,383 977,600 65,028 388,348 350,736 82,444 FUND BALANCES, end of period 110,965$ 971,388$ 99,746$ 513,017$ 384,673$ 114,131$ 95 Parks PEG Fees Police Public Improvement Districts Street Sales Tax Tax Increment Reinvestment Zones Tourism Total -$ -$ -$ 458,668$ -$ 1,289,322$ -$ 1,747,990$ - - - - 4,245,662 - - 4,245,662 - 125,073 - - - - - 125,073 - - - - - - 984,760 984,760 517,983 - 1,032 - - - - 918,148 - - - - - - - 35,494 1,087,212 - 61,977 - - - 47,272 1,590,320 54,886 2,388 4,658 16,400 50,115 16,357 21,323 196,843 - - 988 - - 351,032 79,097 620,514 1,660,081 127,461 68,655 475,068 4,295,777 1,656,711 1,132,452 10,464,804 402,977 - - 223,846 - - 979,735 1,690,630 - - - - - - - 62,718 - - - - - - - 263,885 - - - - - 40,372 - 152,888 - - - - 975,529 - - 978,704 - - 171,517 - - - - 188,075 - - - - - - - 87,277 206,231 28,349 - 556,535 3,063,261 10,111 - 4,012,504 609,208 28,349 171,517 780,381 4,038,790 50,483 979,735 7,436,681 1,050,873 99,112 (102,862) (305,313) 256,987 1,606,228 152,717 3,028,123 372,000 - - - - - - 387,000 - - - - - (1,106,083) (28,634) (1,199,717) 372,000 - - - - (1,106,083) (28,634) (812,717) 1,422,873 99,112 (102,862) (305,313) 256,987 500,145 124,083 2,215,406 3,328,093 165,605 445,377 960,060 3,273,562 1,070,406 1,551,880 12,768,522 4,750,966$ 264,717$ 342,515$ 654,747$ 3,530,549$ 1,570,551$ 1,675,963$ 14,983,928$ City of Georgetown, Texas Council Discretionary Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 96 REVENUES Investment earnings2,500$ 2,500$ 1,582$ (918)$ Total revenues 2,500 2,500 1,582 (918) EXPENDITURES Operations - - - - Capital outlay - - - - Total expenditures - - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 2,500 2,500 1,582 (918) OTHER FINANCING SOURCES (USES) Transfer in - - - - Transfers out - - - - Total other financing sources (uses) - - - - EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)2,500 2,500 1,582 (918) Fund balance, beginning of year 109,415 109,415 109,383 (32) FUND BALANCE, end of year 111,915$ 111,915$ 110,965$ (950)$ Original Budget Variance to Budget Final Budget Actual Budgetary Basis City of Georgetown, Texas Conservation Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 97 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Investment earnings 12,000$ 12,000$ 13,922$ 1,922$ Conservation revenue 60,000 60,000 67,143 7,143 Total revenues 72,000 72,000 81,065 9,065 EXPENDITURES Operations 231,000 231,000 87,277 143,723 Total expenditures 231,000 231,000 87,277 143,723 EXCESS OF REVENUES OVER EXPENDITURES (159,000) (159,000) (6,212) 152,788 OTHER FINANCING (USES) Transfers out (4,207) - 4,207 Total other financing (uses) - (4,207) - 4,207 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING (USES)(159,000) (163,207) (6,212) 156,995 Fund balance, beginning of year 847,035 847,035 977,600 130,565 FUND BALANCE, end of period 688,035$ 683,828$ 971,388$ 287,560$ City of Georgetown, Texas Court Fees Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 98 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Court fees 34,275$ 25,275$ 34,880$ 9,605$ Investment earnings 1,000 10,000 1,204 (8,796) Other - 15,757 15,192 (565) Total revenues 35,275 51,032 51,276 244 EXPENDITURES Operations 45,500 61,257 16,558 44,699 Total expenditures 45,500 61,257 16,558 44,699 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (10,225) (10,225) 34,718 44,943 OTHER FINANCING SOURCES Transfers in - - - - Transfers out - - - - Total other financing sources - - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)(10,225) (10,225) 34,718 44,943 Fund balance, beginning of year 93,723 93,723 65,028 (28,695) FUND BALANCE, end of period 83,498$ 83,498$ 99,746$ 16,248$ City of Georgetown, Texas Development Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 99 REVENUES Donations and grants 400,000$ 582,994$ 181,678$ (401,316)$ Charges for services - - 189,113 189,113 Fines and forfeitures - - 614 614 Investment income 4,000 4,000 5,927 1,927 Other revenue 168,000 168,000 58,763 (109,237) Total revenues 572,000 754,994 436,095 (318,899) EXPENDITURES Operations 260,808 311,860 178,409 133,451 Capital outlay 400,000 582,994 148,017 434,977 Total expenditures 660,808 894,854 326,426 568,428 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (88,808) (139,860) 109,669 249,529 OTHER FINANCING SOURCES (USES) Transfers in 15,000 15,000 15,000 - Total other financing sources (uses) 15,000 15,000 15,000 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)(73,808) (124,860) 124,669 249,529 Fund balance, beginning of period 273,144 324,196 388,348 64,152 FUND BALANCE, end of period 199,336$ 199,336$ 513,017$ 313,681$ Original Budget Final Budget Actual Budgetary Basis Variance to Budget City of Georgetown, Texas Fire Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 100 REVENUES Charges for service -$ -$ 33,575$ 33,575$ Investment income 1,000 1,000 6,014 5,014 Donations and grants - - 142,877 142,877 Other revenue 241,000 241,000 115,357 (125,643) Total revenues 242,000 242,000 297,824 55,824 EXPENDITURES Operations 334,596 334,596 263,887 70,709 Total expenditures 334,596 334,596 263,887 70,709 EXCESS OF REVENUES OVER EXPENDITURES (92,596) (92,596) 33,937 126,533 OTHER FINANCING SOURCES Transfers in - - - - Total other financing sources - - - - EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (92,596) (92,596) 33,937 126,533 Fund balance, beginning of year 92,596 92,596 350,736 258,140 FUND BALANCE, end of year -$ -$ 384,673$ 384,673$ ADJUSTMENTS TO GAAP Original Budget Final Budget Actual Budgetary Basis Variance to Budget City of Georgetown, Texas Library Restricted Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 101 REVENUES Investment income 1,200$ 1,200$ 2,068$ 868$ Donations and grants 165,000 165,000 178,606 13,606 Other revenue - - 85 85 Total revenues 166,200 166,200 180,759 14,559 EXPENDITURES Operations 125,000 125,000 84,072 40,928 Total expenditures 125,000 125,000 84,072 40,928 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 41,200 41,200 96,687 55,487 OTHER FINANCING SOURCES Transfers in (65,000) (65,000) (65,000) - Total other financing sources (65,000) (65,000) (65,000) - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING (USES)(23,800) (23,800) 31,687 55,487 Fund balance, beginning of year 65,659 65,659 82,444 16,785 FUND BALANCE, end of year 41,859$ 41,859$ 114,131$ 72,272$ Original Budget Final Budget Actual Budgetary Basis Variance to Budget City of Georgetown, Texas Parks Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 102 REVENUES Investment income 41,000$ 41,000$ 54,886$ 13,886$ Donations and grants 12,500 12,500 1,087,212 1,074,712 Other 910,650 910,650 517,983 (392,667) Total revenues 964,150 964,150 1,660,081 695,931 EXPENDITURES Operations 1,006,000 1,401,586 329,369 1,072,217 Capital outlay 394,000 628,451 279,839 348,612 Total expenditures 1,400,000 2,030,037 609,208 1,420,829 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (435,850) (1,065,887) 1,050,873 2,116,760 OTHER FINANCING SOURCES Transfers in 372,000 372,000 372,000 - Total other financing sources 372,000 372,000 372,000 - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (63,850) (693,887) 1,422,873 2,116,760 Fund balance, beginning of year 2,464,462 3,182,102 3,328,093 145,991 FUND BALANCE, end of year 2,400,612$ 2,488,215$ 4,750,966$ 2,262,751$ Original Budget Final Budget Actual Budgetary Basis Variance to Budget City of Georgetown, Texas PEG Fees Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 103 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Investment earnings 1,000$ 1,000$ 2,388$ 1,388$ Franchise taxes - - 125,073 125,073 Other revenue 165,000 165,000 - (165,000) Total revenues 166,000 166,000 127,461 (38,539) EXPENDITURES Capital outlay 20,000 71,000 28,349 42,651 Total expenditures 20,000 71,000 28,349 42,651 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 146,000 95,000 99,112 4,112 OTHER FINANCING SOURCES (USES) Transfers out - - - - Total other financing sources (uses) - - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING (USES)146,000 95,000 99,112 4,112 Fund balance, beginning of year 160,153 165,605 165,605 - FUND BALANCE, end of year 306,153$ 260,605$ 264,717$ 4,112$ City of Georgetown, Texas Police Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 104 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Investment income 3,500$ 3,500$ 4,658$ 1,158$ Donations and grants 40,000 40,000 61,977 21,977 Charges for services - - 1,032 1,032 Other revenue - - 988 988 Total revenues 43,500 43,500 68,655 25,155 EXPENDITURES Operations 80,000 260,757 171,517 89,240 Capital outlay 9,094 9,050 - 9,050 Total expenditures 89,094 269,807 171,517 98,290 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (45,594) (226,307) (102,862) 123,445 Fund balance, beginning of year 261,601 467,985 445,377 (22,608) FUND BALANCE, end of year 216,007$ 241,678$ 342,515$ 100,837$ City of Georgetown, Texas Public Improvement Districts Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 105 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Property assessments 452,210$ 452,310$ 458,668$ 6,358$ Investment revenue 5,100 5,000 16,400 11,400 Total revenues 457,310 457,310 475,068 17,758 EXPENDITURES Operations 300,828 308,102 223,846 84,256 Capital outlay - 725,338 556,535 168,803 Total expenditures 300,828 1,033,440 780,381 253,059 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 156,482 (576,130) (305,313) 270,817 Fund balance, beginning of year 151,636 960,054 960,060 6 FUND BALANCE, end of year 308,118$ 383,924$ 654,747$ 270,823$ City of Georgetown, Texas Street Sales Tax Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 106 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Sales tax 3,968,750$ 3,968,750$ 4,245,662$ 276,912$ Investment income 50,000 50,000 50,115 115 Total revenues 4,018,750 4,018,750 4,295,777 277,027 EXPENDITURES Operating - 1,508,271 975,529 532,742 Capital outlay 4,281,264 4,639,308 3,063,261 1,576,047 Total expenditures 4,281,264 6,147,579 4,038,790 2,108,789 EXCESS OF REVENUES OVER EXPENDITURES (262,514) (2,128,829) 256,987 2,385,816 OTHER FINANCING (USES) Transfers out - - - - Total other financing (uses)- - - - EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)(262,514) (2,128,829) 256,987 2,385,816 Fund balance, beginning of year 1,012,514 3,067,145 3,273,562 206,417 FUND BALANCE, end of year 750,000$ 938,316$ 3,530,549$ 2,592,233$ City of Georgetown, Texas Tax Increment Reinvestment Zones Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 107 REVENUES Property assessments 1,230,084$ 929,178$ 1,289,322$ 360,144$ Investment earnings 4,500 309,406 16,357 (293,049) Other 279,000 275,000 351,032 76,032 Total revenues 1,513,584 1,513,584 1,656,711 143,127 EXPENDITURES Operations - 194,250 40,372 153,878 Capital outlay 521,100 339,645 10,111 329,534 Total expenditures 521,100 533,895 50,483 483,412 EXCESS OF REVENUES OVER EXPENDITURES 992,484 979,689 1,606,228 626,539 OTHER FINANCING SOURCES (USES) Transfers out (1,273,768) (1,272,768) (1,106,083) 166,685 Total other financing sources (uses)(1,273,768) (1,272,768) (1,106,083) 166,685 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES)(281,284) (293,079) 500,145 793,224 Fund balance, beginning of year 973,361 1,031,963 1,070,406 38,443 FUND BALANCE, end of year 692,077$ 738,884$ 1,570,551$ 831,667$ Actual Budgetary Basis Final Budget Original Budget Variance to Budget City of Georgetown, Texas Tourism Special Revenue Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 108 REVENUES Hotel/motel tax 1,300,000$ 1,300,000$ 984,760$ (315,240)$ Investment earnings 36,500 18,000 21,323 3,323 Donations and grants 47,272 47,272 Other 144,283 162,783 79,097 (83,686) Total revenues 1,480,783 1,480,783 1,132,452 (348,331) EXPENDITURES Personnel 413,567 413,567 367,959 45,608 Operations 998,714 1,010,452 611,776 398,676 Total expenditures 1,412,281 1,424,020 979,735 444,285 EXCESS OF REVENUES OVER EXPENDITURES 68,502 56,763 152,717 95,954 OTHER FINANCING SOURCES (USES) Transfers out (28,634) (28,634) (28,634) - Total other financing sources (uses) (28,634) (28,634) (28,634) - EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES 39,868 28,129 124,083 95,954 Fund balance, beginning of year 1,437,144 1,551,889 1,551,880 (9) FUND BALANCE, end of year 1,477,012$ 1,580,018$ 1,675,963$ 95,945$ Actual Budgetary Basis Variance to Budget Original Budget Final Budget 109 Supplementary Individual Fund Financial Statements and Schedules – Major Governmental Funds City of Georgetown, Texas General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 110 Actual Original Final Budgetary Variance Budget Budget Basis to Budget REVENUES Taxes Property tax 14,900,000$ 14,960,000$ 15,125,579$ 165,579$ Sales tax 17,859,375 17,861,875 19,108,465 1,246,590 Franchise taxes 5,890,270 5,910,270 5,757,843 (152,427) Other 435,000 435,000 399,896 (35,104) Total taxes 39,084,645 39,167,145 40,391,783 1,224,638 LICENSES AND PERMITS Permits and inspection fees 3,343,500 3,969,250 5,434,776 1,465,526 Licenses 750 - - - Total licenses and permits 3,344,250 3,969,250 5,434,776 1,465,526 CHARGES FOR SERVICES Library 97,220 45,000 42,971 (2,029) Animal services 65,000 65,000 82,640 17,640 Parks and recreation 2,833,100 2,656,400 1,475,032 (1,181,368) Environmental services 10,155,450 9,955,450 10,086,812 131,362 Fire protection 7,176,152 7,156,032 7,366,605 210,573 Police support 532,200 459,800 394,301 (65,499) Total charges for services 20,859,122 20,337,682 19,448,361 (889,321) FINES AND FORFEITURES 352,250 352,250 298,524 (53,726) INTEREST AND OTHER Investment income 170,000 170,000 244,164 74,164 Rent 165,900 404,340 110,711 (293,629) Miscellaneous 3,144,080 3,344,580 4,096,670 752,090 Total interest and other 3,479,980 3,918,920 4,451,545 532,625 TOTAL REVENUES 67,120,247 67,745,247 70,024,989 2,279,742 (continued) City of Georgetown, Texas General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis – Continued For the Fiscal Year Ended September 30, 2020 111 Actual Original Final Budgetary Variance Budget Budget Basis to Budget EXPENDITURES Culture recreation Downtown & community service admin Personnel 264,254$ 264,254$ 267,839$ (3,585)$ Operations 356,639 360,699 333,443 27,256 Total downtown & community service admin 620,893 624,953 601,282 23,671 Parks Personnel 2,031,977 2,031,977 1,842,941 189,036 Operations 1,700,078 1,720,979 1,451,697 269,282 Captal outlay - 5,000 8,056 (3,056) Total parks 3,732,055 3,757,956 3,302,694 455,262 Recreation Personnel 1,559,194 1,559,194 1,517,375 41,819 Operations 1,194,090 1,239,090 1,141,496 97,594 Total recreation 2,753,284 2,798,284 2,658,871 139,412 Recreation programs Personnel 941,957 941,957 598,714 343,243 Operations 877,975 893,104 539,899 353,205 Total recreation programs 1,819,932 1,835,061 1,138,613 696,447 Arts & culture Personnel - - - - Operations 36,729 36,729 44,405 (7,676) Capital outlay - - - - Total arts and culture 36,729 36,729 44,405 (7,676) Library Personnel 1,778,768 1,778,769 1,720,337 58,431 Operations 817,662 1,009,745 1,026,889 (17,144) Capital outlay 182,293 - - - Total library 2,778,723 2,788,513 2,747,226 41,287 Total culture recreation 11,741,616 11,841,495 10,493,091 1,348,404 (continued) City of Georgetown, Texas General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis – Continued For the Fiscal Year Ended September 30, 2020 112 Actual Original Final Budgetary Variance Budget Budget Basis to Budget Development Planning Personnel 1,246,540$ 1,246,540$ 1,179,717$ 66,823$ Operations 456,750 690,649 474,409 216,239 Total planning 1,703,290 1,937,189 1,654,126 283,062 Inspection services Personnel 1,199,969 1,199,969 1,168,388 31,581 Operations 147,071 147,071 140,938 6,133 Total inspection services 1,347,040 1,347,040 1,309,326 37,714 Code enforcement Personnel 421,436 421,436 338,769 82,667 Operations 102,947 102,946 77,882 25,064 Capital outlay - - 651 (651) Total code enforcement 524,383 524,382 417,302 107,080 Total development 3,574,713 3,808,610 3,380,754 427,856 Environmental services Operations 8,525,875 8,532,355 8,450,680 81,675 Total environmental services 8,525,875 8,532,355 8,450,680 81,675 (continued) City of Georgetown, Texas General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis – Continued For the Fiscal Year Ended September 30, 2020 113 Actual Original Final Budgetary Variance Budget Budget Basis to Budget Fire servicesSupport Services Personnel 2,011,091$ 2,011,090$ 2,253,131$ (242,041)$ Operations 1,109,254 1,124,533 1,023,708 100,825 Capital outlay - 24,720 16,270 8,450 Total support services 3,120,345 3,160,343 3,293,109 (132,766) EMS Personnel 2,133,962 2,133,962 1,676,673 457,289 Operations 713,054 673,154 690,402 (17,248) Capital outlay - 57,750 5,940 51,810 Total emergency services 2,847,016 2,864,866 2,373,015 491,851 Emergency Services Personnel 11,906,761 11,906,762 11,937,129 (30,367) Operations 2,308,902 2,250,190 1,976,606 273,584 Capital outlay 65,000 155,249 90,917 64,332 Total emergency services 14,280,663 14,312,201 14,004,652 307,549 Total fire services 20,248,024 20,337,410 19,670,776 666,634 General government Operations 3,261,450 3,443,750 4,148,434 (704,684) Total operations 3,261,450 3,443,750 4,148,434 (704,684) City council Personnel 150,434 150,434 141,477 8,957 Operations 27,174 27,174 20,282 6,892 Total city council 177,608 177,608 161,758 15,850 Community services Personnel 213,587 213,587 219,453 (5,866) Operations 52,145 52,151 33,127 19,024 Total community services 265,732 265,738 252,580 13,158 City manager's office Personnel 1,534,786 1,527,785 1,450,332 77,453 Operations 259,520 406,066 284,076 121,990 Total city manager's office 1,794,306 1,933,851 1,734,407 199,443 City secretary Personnel 512,599 512,599 514,925 (2,326) Operations 306,684 306,684 219,167 87,517 Total city secretary 819,283 819,283 734,092 85,191 Communication office Personnel 397,184 397,184 370,292 26,892 Operations 287,269 287,269 131,435 155,834 Capital outlay - - - - Total communication office 684,453 684,453 501,726 182,726 Total general government 7,002,832 7,324,682 7,532,998 (208,316) (continued) City of Georgetown, Texas General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis – Continued For the Fiscal Year Ended September 30, 2020 114 Actual Original Final Budgetary Variance Budget Budget Basis to Budget Highways and streets Transportation admin Personnel 530,491$ 530,491$ 422,485$ 108,006$ Operations 878,462 928,562 617,893 310,669 Capital outlay 60,100 10,000 294 9,706 Total transportation admin 1,469,053 1,469,053 1,040,671 428,381 Streets Personnel 1,358,332 1,358,332 1,114,165 244,167 Operations 1,410,818 2,094,697 1,658,161 436,536 Capital outlay 1,630,887 1,807,984 994,708 813,276 Total streets 4,400,037 5,261,012 3,767,034 1,493,979 Total highways and streets 5,869,090 6,730,065 4,807,705 1,922,360 Police services Organization and administration Personnel 555,439 555,439 586,394 (30,955) Operations 1,872,223 2,077,223 1,825,603 251,620 Total organization and administration 2,427,662 2,632,662 2,411,997 220,665 Field operations bureau Personnel 12,178,480 12,178,480 11,942,576 235,904 Operations 1,625,177 1,536,588 1,348,930 187,658 Capital outlay 18,000 106,697 96,895 9,802 Total field operations bureau 13,821,657 13,821,765 13,388,401 433,364 Animal services Personnel 696,530 696,529 670,010 26,519 Operations 276,988 292,978 243,767 49,211 Total animal services 973,518 989,507 913,776 75,730 Municipal court Personnel 554,170 554,170 495,729 58,442 Operations 109,893 109,893 75,936 33,957 Total municipal court 664,063 664,063 571,665 92,398 Total police services 17,886,900 18,107,997 17,285,839 822,158 TOTAL EXPENDITURES 74,849,050 76,682,615 71,621,844 5,060,771 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (7,728,803) (8,937,368) (1,596,855) 7,340,512 (continued) City of Georgetown, Texas General Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis – Continued For the Fiscal Year Ended September 30, 2020 115 Actual Original Final Budgetary Variance Budget Budget Basis to Budget OTHER FINANCING SOURCES (USES) Transfers in 8,363,634$ 8,433,100$ 8,877,033$ 443,933$ Transfers out (524,860) (524,860) (524,860)- Total other financing sources (uses)7,838,774 7,908,240 8,352,173 443,933 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS 109,971 (1,029,128) 6,755,318 7,784,445 Fund balance, beginning of year 10,463,385 14,263,750 14,441,292 177,542 FUND BALANCE, end of year 10,573,356$ 13,234,622$ 21,196,610$ 7,961,987$ City of Georgetown, Texas Georgetown Transportation Enhancement Corporation (GTEC) Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 116 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Sales tax 7,937,500$ 7,937,500$ 8,491,328$ 553,828$ Grants - - - - Investment earnings 230,000 230,000 272,223 42,223 Total revenues 8,167,500 8,167,500 8,763,551 596,051 EXPENDITURES Operations 410,223 410,223 470,487 (60,264) Capital outlay 13,234,375 15,259,855 370,569 14,889,286 Principal, interest and fiscal charges 3,333,921 4,916,725 879,100 4,037,625 Total expenditures 16,978,519 20,586,803 1,720,156 18,866,647 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (8,811,019) (12,419,303) 7,043,395 19,462,698 OTHER FINANCING SOURCES (USES) Issuance of bonds 4,700,000 4,700,000 4,740,000 40,000 Transfers out - (2,401,571) (2,403,361) (1,790) Total other financing sources (uses) 4,700,000 2,298,429 2,336,639 38,210 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS (4,111,019) (10,120,874) 9,380,034 19,500,908 Fund balance, beginning of year 17,130,653 21,649,666 21,649,666 - FUND BALANCE, end of year 13,019,634$ 11,528,792$ 31,029,700$ 19,500,908$ City of Georgetown, Texas Debt Service Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 117 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Ad valorem taxes 17,000,000$ 17,000,000$ 17,000,000$ -$ Investment earnings 150,000 150,000 72,575 (77,425) Total revenues 17,150,000 17,150,000 17,072,575 (77,425) EXPENDITURES AND OTHER Principal, interest and fiscal charges (20,027,904) (20,461,720) (20,246,153) 215,567 OTHER FINANCING SOURCES (USES) Transfers in 3,381,759 3,381,759 3,076,444 (305,315) Premium on issuance of bonds - - - Refunding bonds issued - - - Payment to refunding escrow agent - - - Total other financing sources (uses) 3,381,759 3,381,759 3,076,444 (305,315) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS 503,855 70,039 (97,134) (167,173) Fund balances, beginning of year 1,950,739 1,950,950 2,004,196 53,246 FUND BALANCE, end of year 2,454,594$ 2,020,989$ 1,907,062$ (113,927)$ City of Georgetown, Texas General Capital Projects Fund Schedule of Revenues and Expenditures (Budget Basis) – Budget and Actual (Non-GAAP) – Reconciled to GAAP Basis For the Fiscal Year Ended September 30, 2020 118 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Investment earnings 640,000$ 640,000$ 547,254$ (92,746)$ Other 110,000 110,000 26,582 (83,418) Total revenues 750,000 750,000 573,836 (176,164) EXPENDITURES Operations - - 35,755 (35,755) Capital outlay 20,660,000 53,893,889 18,111,164 35,782,725 Bond issuance cost 689,504 560,504 126,558 433,946 Total expenditures 21,349,504 54,454,393 18,273,477 36,180,916 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (20,599,504) (53,704,393) (17,699,641) 36,004,752 OTHER FINANCING SOURCES (USES) Issuance of bonds 18,575,200 14,766,000 14,895,000 129,000 Transfers in 1,250,000 1,262,000 1,262,000 - Transfers out (3,186,200) (3,227,692) (3,204,546) 23,146 Total other financing sources (uses) 16,639,000 12,800,308 12,952,454 152,146 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS (3,960,504) (40,904,085) (4,747,187) 36,156,898 Fund balances, beginning of period 6,854,520 43,198,383 43,083,283 (115,100) FUND BALANCE, end of year 2,894,016$ 2,294,298$ 38,336,096$ 36,041,798$ 119 Combining Financial Statements – Nonmajor Proprietary Funds City of Georgetown, Texas Combining Financial Statements Nonmajor Proprietary Funds 120 Enterprise Funds – The City's utilities are accounted for and operated in a manner similar to private business enterprises. Each utility accounted for as an independent entity, is an enterprise fund. Enterprise fund accounting is used where the intent of the City Council is to finance or recover the costs of providing goods or services to the general public on a continuing basis primarily through user charges or when the City Council has decided that periodic determination of net income is appropriate for accountability purposes. Airport Fund – used to account for revenues and expenses related to the operation and maintenance of the City's airport. Stormwater Drainage Fund – used to account for revenues and expenses related to the operations, capital projects, and debt service of the stormwater drainage facilities. Internal Service Funds – This fund is used to account for services performed by one government organization or department for others. Fleet Services Fund – The City uses this fund to purchase and account for all major equipment and vehicles. Each item is assigned annual lease and maintenance values which the leasing department pays to the Internal Service Fund. The annual lease value is determined by the projected replacement cost divided by the years of useful life of the item. The lease and maintenance payments made by the departments enable the Internal Service Fund to replace equipment and vehicles on a pre-planned schedule to minimize maintenance costs and reduce safety risks due to worn out equipment and vehicles. The fund also provides maintenance for all vehicles through the Vehicle Service Center. Joint Services Fund – The Joint Services Fund is composed of departments which provide services to more than one city fund. Charges for services provided are determined by allocating each specific department's cost to the using fund. Facilities Maintenance Fund – The City uses this fund to account for janitorial service, light maintenance, painting, landscape maintenance and roofing and air conditioning repairs for all City buildings. Each building is assigned an annual maintenance cost, which is paid to the Internal Service Fund by the occupying departments, based on square footage occupied. The payments made by the departments enable the Internal Service Fund to provide major and minor facility repairs on a preplanned schedule to minimize maintenance costs and provide preventative care to reduce long- term maintenance and replacement costs. Information Technology Fund – The City uses this fund to account for purchases and maintenance of the City's computer systems. Each department pays an annual predetermined lease payment, based upon the equipment the department has. These payments enable the fund to replace older equipment and upgrade the City's computer resources and provide assistance in maintenance of equipment. This fund also provides for the management of the City's computer systems through personnel in the Information Services department. Self-Insurance Fund – The City uses this account for its self-insurance program providing health insurance to employees and their family members. City of Georgetown, Texas Combining Statement of Net Position Nonmajor Enterprise Funds September 30, 2020 121 Stormwater Total Nonmajor Airport Drainage Enterprise Fund Fund FundsASSETS Current assets Cash and cash equivalents 675,098$ 1,234,461$ 1,909,559$ Cash and cash equivalents - restricted 56,681 857,319 914,000 Investments 598,687 1,094,931 1,693,618 Accounts receivable Services (net of allowance for uncollectibles)88,859 595,819 684,678 Grants 1,433 4,864 6,297 Other 49,103 (14,736) 34,367 Prepaid expenses 209,067 - 209,067 Inventories 38,090 - 38,090 Total current assets 1,717,018 3,772,658 5,489,676 Noncurrent assets Long-term note receivables 826 1,802 2,628 Capital assets Land 641,536 - 641,536 Land rights 391,868 1,111,670 1,503,538 Buildings 3,856,218 - 3,856,218 Furniture, machinery, and equipment 366,452 55,436 421,888 Vehicles - 14,050 14,050 Distribution system 10,354,295 66,538,318 76,892,613 Improvements 5,838,519 - 5,838,519 Construction in progress - 391,963 391,963 Less accumulated depreciation (9,086,952) (14,657,153) (23,744,105) Total capital assets (net of accumulated depreciation)12,361,936 53,454,284 65,816,220 Total noncurrent assets 12,362,762 53,456,086 65,818,848 TOTAL ASSETS 14,079,780 57,228,744 71,308,524 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow related to pension 133,842 133,842 267,684 Deferred charge on refunding 9,997 15,824 25,821 Total deferred outflows of resources 143,839 149,666 293,505 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 14,223,619$ 57,378,410$ 71,602,029$ LIABILITIES Current liabilities Accounts payable 131,905$ 132,049$ 263,954$ Accrued employee benefits 11,088 23,863 34,951 Due to other funds 10,964 - 10,964 Unearned revenue - 22,070 22,070 Current portion of long-term debt 89,813 319,356 409,169 Accrued interest 6,702 20,688 27,390 Customer deposits 6,046 - 6,046 Total current liabilities 256,518 518,026 774,544 Noncurrent liabilities Accrued employee benefits 15,058 28,894 43,952 Long-term debt payable 1,435,973 4,515,685 5,951,658 Net pension liability 186,779 186,779 373,558 Total noncurrent liabilities 1,637,810 4,731,358 6,369,168 Total liabilities 1,894,328 5,249,384 7,143,712 DEFERRED INFLOWS OF RESOURCES Deferred inflow related to pension 123,932 123,932 247,864 Total deferred inflow of resources 123,932 123,932 247,864 Net position Net investment in capital assets 10,846,147 48,635,067 59,481,214 Unrestricted 1,359,212 3,370,027 4,729,239 Total net position 12,205,359 52,005,094 64,210,453 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION 14,223,619$ 57,378,410$ 71,602,029$ City of Georgetown, Texas Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2020 122 Total Stormwater Nonmajor Airport Drainage Enterprise Fund Fund Funds OPERATING REVENUES 3,227,141 4,158,550$ 7,385,691$ Total operating revenues 3,227,141 4,158,550 7,385,691 OPERATING EXPENSES Depreciation 829,261 1,556,239 2,385,500 Other 3,077,265 2,335,557 5,412,822 Total operating expenses 3,906,526 3,891,796 7,798,322 NET OPERATING INCOME (LOSS)(679,385) 266,754 (412,631) NONOPERATING REVENUES (EXPENSES) Investment income 18,272 35,478 53,750 Donations and grants 129,190 1,280 130,470 Interest and fiscal charges (57,632) (160,407) (218,039) Gain on asset disposal - 450 450 Other 57,588 - 57,588 Total nonoperating revenues (expenses) 147,418 (123,199) 24,219 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (531,967) 143,555 (388,412) CONTRIBUTIONS AND TRANSFERS Capital contributions - 13,460,732 13,460,732 Transfers out - (428,606) (428,606) Total contributions and transfers - 13,032,126 13,032,126 CHANGE IN NET POSITION (531,967) 13,175,681 12,643,714 Total net position, beginning of period 12,737,326 38,829,413 51,566,739 TOTAL NET POSITION, end of period 12,205,359$ 52,005,094$ 64,210,453$ City of Georgetown, Texas Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended September 30, 2020 123 Stormwater Total Airport Drainage Nonmajor Fund Fund Enterprise Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 3,218,465$ 3,058,435$ 6,276,900$ Payments to suppliers (2,580,934) (891,122) (3,472,056) Payments to employees for services (326,026) (402,677) (728,703) Net cash provided by operating activities 311,505 1,764,636 2,076,141 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers out - (428,606) (428,606) Net cash provided by (used in) noncapital financing activities - (428,606) (428,606) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (89,118) (1,042,720) (1,131,838) Donations, grants, and other 129,190 1,280 130,470 Proceeds from issuance of long-term debt - 607,171 607,171 Principal paid on revenue and certificates of obligation bonds (91,865) (240,485) (332,350) Interest paid on revenue and certificates of obligation bonds (58,957) (159,917) (218,874) Net cash used in capital and related financing activities (110,750) (834,671) (945,421) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 18,272 35,478 53,750 Change in temporary investments (143,007) (63,474) (206,481) Net cash used in investing activities (124,735) (27,996) (152,731) Net change in cash and cash equivalents 76,020 473,363 549,383 Cash and cash equivalents, beginning of year 655,759 1,618,417 2,274,176 CASH AND CASH EQUIVALENTS, end of year 731,779$ 2,091,780$ 2,823,559$ NON-CASH DISCLOSURE OF CAPITAL ACTIVITY DEVELOPER CONTRIBUTIONS -$ 13,460,732$ 13,460,732$ NONCASH GRANTS RECEIVED 5,876,282$ -$ 5,876,282$ Operating income (loss) (679,385)$ 266,754$ (412,631)$ Adjustments to reconcile operating income (loss) to cash provided by (used in) operating activities Depreciation 829,261 1,556,239 2,385,500 Other income 57,588 450 58,038 Decrease (increase) in accounts receivable (72,310) (169,156) (241,466) Decrease (increase) in prepaid expenses 88,859 - 88,859 Decrease (increase) in inventories (392) - (392) Increase (decrease) in accounts payable 57,787 96,022 153,809 Increase (decrease) in deposits 6,046 - 6,046 Increase (decrease) in due to other funds 10,964 - 10,964 Increase (decrease) in unearned revenue - - - Increase (decrease) in net pension liability 11,822 17,137 28,959 Increase (decrease) in accrued employee benefits 1,265 (2,810) (1,545) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 311,505$ 1,764,636$ 2,076,141$ City of Georgetown, Texas Combining Statement of Net Position Internal Service Funds September 30, 2020 124 Fleet Joint Facilities Information Self Services Services Maintenance Technology Insurance Fund Fund Fund Fund Fund Total ASSETS Current Cash and cash equivalents 3,182,862$ 1,364,276$ 1,600,651$ 1,532,170$ 2,969,032$ 10,648,991$ Investments 2,822,536 1,209,830 1,419,445 1,358,717 2,632,916 9,443,444 Prepaid expense - 211,146 - 1,657 168,000 380,803 Accounts receivable 283,285 183,372 62,265 359 - 529,281 Inventories - 611,835 - - - 611,835 Total current assets 6,288,683 3,580,459 3,082,361 2,892,903 5,769,948 21,614,354 Noncurrent Long-term note receivables 5,990 52,191 3,731 14,671 - 76,583 Property and equipment Land 481,927 214,066 - - - 695,993 Buildings 13,500 432,955 63,666 - - 510,121 Furniture, machinery, and equipment 1,649,319 1,232,943 1,534,149 7,703,410 - 12,119,821 Vehicles 37,278,627 - - - - 37,278,627 Distribution system - - - 1,701,989 - 1,701,989 Improvements 12,681 33,300 1,115,252 - - 1,161,233 Total property and equipment cost 39,436,054 1,913,264 2,713,067 9,405,399 - 53,467,784 Less accumulated depreciation (22,902,537) (1,698,774) (2,390,011) (7,875,989) - (34,867,311) Net property and equipment 16,533,517 214,490 323,056 1,529,410 - 18,600,473 TOTAL ASSETS 22,828,190$ 3,847,140$ 3,409,148$ 4,436,984$ 5,769,948$ 40,291,410$ LIABILITIES AND NET POSITION Liabilities Current liabilities Accounts payable 85,788$ 1,421,213$ 192,887$ 585,039$ 686,442$ 2,971,369$ Accrued employee benefits 20,960 - 17,568 84,058 - 122,586 Unearned revenue - - - - - - Due to other funds - - - - - - Total current liabilities 106,748 1,421,213 210,455 669,097 686,442 3,093,955 Noncurrent liabilities Accrued employee benefits 27,546 - 21,472 106,578 - 155,596 Total liabilities 134,294 1,421,213 231,927 775,675 686,442 3,249,551 Net position Net investment in capital assets 16,533,517 214,490 323,056 1,529,410 - 18,600,473 Unrestricted 6,160,379 2,211,437 2,854,165 2,131,899 5,083,506 18,441,386 Total net position 22,693,896 2,425,927 3,177,221 3,661,309 5,083,506 37,041,859 TOTAL LIABILITIES AND NET POSITION 22,828,190$ 3,847,140$ 3,409,148$ 4,436,984$ 5,769,948$ 40,291,410$ City of Georgetown, Texas Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Fiscal Year Ended September 30, 2020 125 Fleet Joint Facilities Information Self Services Services Maintenance Technology Insurance Fund Fund Fund Fund Fund Total OPERATING REVENUES Charges for services 3,035,135$ 17,275,170$ 3,505,776$ 7,644,778$ 10,004,722$ 41,465,581$ OPERATING EXPENSES Administration - - - - - - Accounting - 1,100,196 - - - 1,100,196 Business Improvement Process (BIP)- 287,241 - - - 287,241 City wide HR services - 1,001,744 - - - 1,001,744 Conservation - 589,662 - - - 589,662 Customer care - 5,016,033 - - - 5,016,033 Economic development administration - 568,546 - - - 568,546 Engineering support - 1,047,469 - - - 1,047,469 Facilities maintenance contracts - - 2,145,667 - - 2,145,667 Facilities maintenance services - - 691,261 - - 691,261 Finance and administration - 941,310 - - - 941,310 Fleet services operations 1,992,481 - - - - 1,992,481 Human resources - 1,324,175 - - - 1,324,175 Information technology - - - 6,146,929 - 6,146,929 IT capital replacement and contracts - - - 691,011 - 691,011 Joint services contracts - 1,435,607 - - - 1,435,607 Legal services - 1,030,141 - - - 1,030,141 Main street - - - - - - Medical insurance - - - - 8,941,188 8,941,188 Purchasing - 877,266 - - - 877,266 Service center - - - - - - Systems engineering - 2,289,074 - - - 2,289,074 Depreciation 2,624,141 10,261 239,758 435,065 - 3,309,225 Total operating expenses 4,616,622 17,518,725 3,076,686 7,273,005 8,941,188 41,426,226 NET OPERATING INCOME (LOSS)(1,581,487) (243,555) 429,090 371,773 1,063,534 39,355 NONOPERATING REVENUES (EXPENSES) Investment income 53,776 20,038 32,507 21,005 57,580 184,906 Other 733,463 683,482 65,502 1,711 46,101 1,530,259 Total nonoperating revenues (expenses) 787,239 703,520 98,009 22,716 103,681 1,715,165 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (794,248) 459,965 527,099 394,489 1,167,215 1,754,520 CONTRIBUTIONS AND TRANSFERS Transfers in 3,582,200 313,405 - 53,860 - 3,949,465 Transfers out (562,000) (129,171) - (586,329) - (1,277,500) Total contributions and transfers 3,020,200 184,234 - (532,469) - 2,671,965 CHANGE IN NET POSITION 2,225,952 644,199 527,099 (137,980) 1,167,215 4,426,485 Net position, beginning of period 20,467,944 1,781,728 2,650,122 3,799,289 3,916,291 32,615,374 NET POSITION, end of period 22,693,896$ 2,425,927$ 3,177,221$ 3,661,309$ 5,083,506$ 37,041,859$ City of Georgetown, Texas Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended September 30, 2020 126 Fleet Joint Facilities Information Self Services Services Maintenance Technology Insurance Fund Fund Fund Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES Department contributions 3,488,453$ 17,913,987$ 3,516,924$ 7,655,370$ 10,050,823$ 42,625,557$ Payments to suppliers (1,475,623) (16,363,012) (2,481,314) (4,055,582) (8,869,311) (33,244,842) Payments to employees for services (588,371) (649,373) (343,810) (2,047,177) - (3,628,731) Net cash provided by (used in) operating activities 1,424,459 901,602 691,800 1,552,611 1,181,512 5,751,984 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 3,582,200 313,405 - 53,860 - 3,949,465 Transfers out (562,000) (129,171) - (586,329) - (1,277,500) Net cash provided by (used in) noncapitalfinancing activities 3,020,200 184,234 - (532,469) - 2,671,965 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (4,263,677) - (89,063) (814,177) - (5,166,917) Net cash provided by (used in) capital and related financing activities (4,263,677) - (89,063) (814,177) - (5,166,917) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 53,776 20,038 32,507 21,005 57,580 184,906 Change in temporary investments (456,576) (607,857) (443,857) (159,657) (844,146) (2,512,093) Net cash provided by (used in) investing activities (402,800) (587,819) (411,350) (138,652) (786,566) (2,327,187) Net increase (decrease) in cash (221,818) 498,017 191,387 67,313 394,946 929,845 Cash and cash equivalents, beginning of year 3,404,680 866,259 1,409,264 1,464,857 2,574,086 9,719,146 CASH AND CASH EQUIVALENTS, end of year 3,182,862$ 1,364,276$ 1,600,651$ 1,532,170$ 2,969,032$ 10,648,991$ NON-CASH DISCLOSURE DEVELOPER CONTRIBUTIONS RECEIVED -$ -$ -$ -$ -$ -$ OPERATING INCOME (LOSS)(1,581,487)$ (243,555)$ 429,090$ 371,773$ 1,063,534$ 39,355$ Adjustments to reconcile operating income (loss) to cash provided by (used in) operating activities: Depreciation 2,624,141 10,261 239,758 435,065 - 3,309,225 Other income 733,463 683,482 65,502 1,711 46,101 1,530,259 Decrease (increase) in prepaid expenses - (174,589) - 269,412 (33,000) 61,823 Decrease (increase) in inventories - 234,281 - - - 234,281 Decrease (increase) in accounts receivable (280,145) 186,184 (54,354) 8,881 - (139,434) Increase (decrease) in accounts payable (72,552) 436,387 (1,816) 393,884 104,877 860,780 Increase (decrease) in unearned revenue - (230,849) - - - (230,849) Increase (decrease) in accrued employee benefits 1,039 - 13,620 71,885 - 86,544 NET CASH PROVIDED BY (USED IN) OPERATING ACTVITIES 1,424,459$ 901,602$ 691,800$ 1,552,611$ 1,181,512$ 5,751,984$ 127 Supplementary Individual Fund Financial Statements City of Georgetown, Texas Agency Funds Statement of Changes in Assets and Liabilities For the Fiscal Year Ended September 30, 2020 128 Balance Balance October 1, September 30, 2019 Additions Deductions 2020 CAFETERIA PLAN-FLEX SPENDING ASSETS Cash and cash equivalents 26,742$ 344,860$ 327,054$ 44,548$ TOTAL ASSETS 26,742$ 344,860$ 327,054$ 44,548$ LIABILITIES Accounts payable 26,742$ 408,037$ 390,231$ 44,548$ TOTAL LIABILITIES 26,742$ 408,037$ 390,231$ 44,548$ PUBLIC IMPROVEMENT DISTRICTS Assets Cash and cash equivalents 398,429$ 874,645$ 911,834$ 361,240$ TOTAL ASSETS 398,429$ 874,645$ 911,834$ 361,240$ Liabilities Accounts payable 379,653$ 386,570$ 404,983$ 361,240$ TOTAL LIABILITIES 379,653$ 386,570$ 404,983$ 361,240$ TOTAL AGENCY FUNDS Assets Cash and cash equivalents 425,171$ 1,219,505$ 1,238,888$ 405,788$ TOTAL ASSETS 425,171$ 1,219,505$ 1,238,888$ 405,788$ Liabilities Accounts payable 406,395$ 794,607$ 795,214$ 405,788$ TOTAL LIABILITIES 406,395$ 794,607$ 795,214$ 405,788$ 129 Statistical Section (Unaudited) 130 This page intentionally left blank. City of Georgetown, Texas Statistical Section (Unaudited) 131 This part of the City of Georgetown's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents: Financial Trend ......................................................................................................................................................... 132 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity ................................................................................................................................................. 142 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity ......................................................................................................................................................... 152 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information ......................................................................................................... 166 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information ........................................................................................................................................... 170 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report related to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. City of Georgetown, Texas Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 132 2020 2019 2018 2017 2016 Governmental activities Net investment in capital assets 334,866,278$ 314,793,619$ 276,645,061$ 266,518,836$ 254,289,833$ Restricted 10,217,761 5,992,268 7,677,564 6,423,693 4,958,105 Unrestricted 42,054,620 39,926,307 47,211,812 35,069,898 27,598,778 Total governmental activities net position 387,138,659$ 360,712,194$ 331,534,437$ 308,012,427$ 286,846,716$ Business-type activities Net investment in capital assets 474,482,607 421,399,112 361,380,352 374,238,275 380,034,944 Unrestricted 121,502,015 89,621,895 98,787,599 63,291,864 27,740,653 Total business-type activities net position 595,984,622$ 511,021,007$ 460,167,951$ 437,530,139$ 407,775,597$ Primary government Net investment in capital assets 809,348,885$ 736,192,731$ 638,025,413$ 640,757,111$ 634,324,777$ Restricted 10,217,761 5,992,268 7,677,564 6,423,693 4,958,105 Unrestricted 163,556,635 129,548,202 145,999,411 98,361,762 55,339,431 Total primary government net position 983,123,281$ 871,733,201$ 791,702,388$ 745,542,566$ 694,622,313$ 133 20152014201320122011 239,377,879$ 211,305,899$ 174,798,105$ 144,196,394$ 138,536,744$ 3,958,088 824,704 1,109,220 26,064,001 30,407,806 20,056,114 33,401,250 40,995,207 28,542,479 21,859,346 263,392,081$ 245,531,853$ 216,902,532$ 198,802,874$ 190,803,896$ 328,886,853 287,569,126 230,939,554 220,809,992 210,252,907 48,127,105 57,575,322 36,040,786 37,049,395 30,771,961 377,013,958$ 345,144,448$ 266,980,340$ 257,859,387$ 241,024,868$ 568,264,732$ 498,875,025$ 405,737,659$ 365,006,386$ 348,789,651$ 3,958,088 824,704 1,109,220 26,064,001 30,407,806 68,183,219 90,976,572 77,035,993 65,591,874 52,631,307 640,406,039$ 590,676,301$ 483,882,872$ 456,662,261$ 431,828,764$ City of Georgetown, Texas Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 134 2020 2019 2018 2017 2016 EXPENSES Governmental activities Culture-recreation 15,598,354$ 13,872,915$ 13,151,439$ 11,904,166$ 12,128,222$ Development 4,293,027 3,465,789 3,356,356 2,561,792 2,805,625 Fire 24,264,619 19,530,308 17,642,881 16,113,850 15,089,501 General government 6,844,030 5,684,392 4,989,778 5,959,340 6,348,544 Police 21,710,738 17,528,376 17,174,693 16,537,297 15,938,090 Streets 7,923,523 9,651,202 12,773,454 7,376,116 8,270,333 Environmental services 10,686,467 8,357,796 8,246,680 6,325,688 5,964,867 Interest on long-term debt 7,306,732 7,095,415 7,172,983 5,826,012 4,455,057 Total governmental activities expenses 98,627,490 85,186,193 84,508,264 72,604,261 71,000,239 Business-type activities Airport 79,179,630 4,306,091 3,675,044 3,123,008 2,655,035 Electric 56,354,897 81,228,070 77,960,552 66,383,559 59,649,218 Stormwater 3,964,161 3,723,377 3,707,981 3,882,824 3,844,129 Water 4,052,203 45,506,608 42,004,858 39,960,102 36,679,504 Total business-type activities expenses 143,550,891 134,764,146 127,348,435 113,349,493 102,827,886 Total primary government expenses 242,178,381$ 219,950,339$ 211,856,699$ 185,953,754$ 173,828,125$ PROGRAM REVENUES Governmental activities Charges for services Culture-recreation 1,918,354$ 3,012,266$ 3,255,788$ 2,534,735$ 2,781,283$ Development 5,622,473 4,434,081 3,169,625 2,653,201 2,666,369 Fire 2,806,272 7,641,026 4,538,006 4,116,783 3,718,280 General government 1,032,226 45,532 365,766 356,455 1,155,218 Police 478,602 992,621 1,004,922 743,304 200,276 Streets - - - 4,124,813 843,386 Environmental services 10,218,066 9,284,703 8,782,764 7,329,850 7,380,876 Operating grants and contributions 5,900,401 225,105 1,560,956 470,604 397,920 Capital grants and contributions 11,142,679 9,890,127 15,480,125 5,612,025 12,784,076 Total governmental activities program revenues 39,119,073 35,525,461 38,157,952 27,941,770 31,927,684 Business-type activities Charges for services Airport 3,284,729 3,376,373 3,500,244 3,318,983 2,905,729 Electric 94,842,210 86,335,438 73,419,224 70,109,269 66,916,207 Stormwater 4,159,000 3,618,468 3,571,582 3,409,626 3,277,508 Water 82,288,865 65,693,605 65,542,222 42,729,980 45,485,151 Operating grants and contributions 132,671 - - - - Capital grants and contributions 51,190,822 31,949,771 11,757,245 32,180,271 25,104,637 Total business-type activities program revenues 235,898,297 190,973,655 157,790,517 151,748,129 143,689,232 Total primary government program revenues 275,017,370$ 226,499,116$ 195,948,469$ 179,689,899$ 175,616,916$ Net (expense)/revenue Governmental activities (59,508,417)$ (49,660,732)$ (46,350,312)$ (44,662,491)$ (39,072,555)$ Business-type activities 92,347,406 56,209,509 30,442,082 38,398,636 40,861,346 Total primary government net expense 32,838,989$ 6,548,777$ (15,908,230)$ (6,263,855)$ 1,788,791$ 135 2015 2014 2013 2012 2011 11,003,525$ 10,438,052$ 9,775,209$ 9,328,048$ 9,393,530$ 2,317,907 2,037,449 1,650,530 2,284,858 2,374,321 11,731,142 10,378,471 9,144,092 8,634,002 8,110,294 5,435,195 5,239,050 6,447,308 4,851,250 5,293,370 13,284,900 12,862,736 12,042,349 11,522,334 11,029,444 6,463,416 9,486,497 5,459,183 5,564,690 6,522,933 5,700,681 5,097,618 4,855,404 4,830,921 4,339,101 5,061,021 5,738,394 3,806,106 4,375,653 3,656,673 60,997,787 61,278,267 53,180,181 51,391,756 50,719,666 2,838,401 3,289,827 3,171,550 3,012,745 3,751,193 59,043,948 60,073,430 46,543,022 56,407,348 54,289,631 2,983,286 2,638,430 2,204,172 1,905,019 1,970,307 33,360,468 24,158,727 22,844,363 21,597,278 22,224,364 98,226,103 90,160,414 74,763,107 82,922,390 82,235,495 159,223,890$ 151,438,681$ 127,943,288$ 134,314,146$ 132,955,161$ 2,506,592$ 3,146,318$ 2,425,587$ 2,285,209$ 2,252,608$ 2,510,092 1,942,914 1,659,670 1,668,635 905,118 1,740,719 1,200,894 1,433,679 1,137,982 1,032,663 1,321,261 1,474,961 1,261,561 1,206,994 435,926 831,461 805,728 959,027 895,703 1,009,004 625 1,021 1,125 - - 6,811,773 5,266,815 6,059,904 5,491,495 5,116,570 642,448 286,431 256,593 956,438 962,183 17,701,672 23,901,801 5,999,666 2,431,374 4,422,720 34,066,643 38,026,883 20,056,812 16,073,830 16,136,792 2,631,211 3,254,368 2,906,267 2,881,144 3,388,816 63,197,781 60,319,235 54,743,979 59,344,615 58,535,067 2,638,945 2,487,548 2,206,108 2,132,810 2,036,047 43,488,320 33,659,956 27,244,363 26,596,509 27,142,648 25,056 25,056 25,589 147,601 127,051 9,405,360 76,095,951 4,558,296 3,917,721 2,062,382 121,386,673 175,842,114 91,684,602 95,020,400 93,292,011 155,453,316$ 213,868,997$ 111,741,414$ 111,094,230$ 109,428,803$ (26,931,144)$ (23,251,384)$ (33,123,369)$ (35,317,926)$ (34,582,874)$ 23,160,570 85,681,700 16,921,495 12,098,010 11,056,516 (3,770,574)$ 62,430,316$ (16,201,874)$ (23,219,916)$ (23,526,358)$ City of Georgetown, Texas Changes In Net Position Last Ten Fiscal Years – Continued (Accrual Basis Of Accounting) 136 2020 2019 2018 2017 2016 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities Property tax 33,731,126$ 30,784,640$ 27,118,902$ 24,734,830$ 22,815,206$ Sales tax 31,845,454 27,647,382 25,036,952 23,008,606 21,556,336 Franchise taxes 5,882,916 5,646,479 5,274,758 4,973,295 4,926,315 Taxes - other 1,384,656 1,833,555 1,663,994 3,027,357 2,459,912 Investment income 1,514,798 2,687,704 1,518,679 731,135 398,206 Other 2,633,974 2,631,661 - 164,835 - Transfers 8,941,958 7,607,068 9,259,037 9,188,144 10,371,215 Total governmental activities 85,934,882$ 78,838,489$ 69,872,322$ 65,828,202$ 62,527,190$ Business-type activities Investment income 1,558,167$ 2,250,615$ 1,454,767$ 544,050$ 271,508$ Other - - - - - Transfers (8,941,958) (7,607,068) (9,259,037) (9,188,144) (10,371,215) Total business-type activities (7,383,791) (5,356,453) (7,804,270) (8,644,094) (10,099,707) Total primary government 78,551,091$ 73,482,036$ 62,068,052$ 57,184,108$ 52,427,483$ CHANGES IN NET POSITION Governmental activities 26,426,465$ 29,177,757$ 23,522,010$ 21,165,711$ 23,454,635$ Business-type activities 84,963,615 50,853,056 22,637,812 29,754,542 30,761,639 Total primary government 111,390,080$ 80,030,813$ 46,159,822$ 50,920,253$ 54,216,274$ 137 2015 2014 2013 2012 2011 20,650,114$ 18,984,850$ 17,037,036$ 15,751,826$ 14,362,895$ 19,165,963 18,655,801 17,002,757 15,045,592 14,148,242 4,925,043 4,478,899 4,471,487 3,924,052 3,874,815 2,118,567 1,939,217 1,331,281 1,143,217 1,100,490 201,492 169,477 241,449 230,788 187,314 82,963 36,854 1,129,389 710,403 590,398 4,904,089 7,615,607 11,719,799 6,511,026 6,871,447 52,048,231$ 51,880,705$ 52,933,198$ 43,316,904$ 41,135,601$ 167,866$ 98,015$ 126,322$ 156,329$ 171,947$ - - 4,919,258 4,003,968 2,971,392 (4,904,089) (7,615,607) (11,719,799) (6,511,026) (6,871,447) (4,736,223) (7,517,592) (6,674,219) (2,350,729) (3,728,108) 47,312,008$ 44,363,113$ 46,258,979$ 40,966,175$ 37,407,493$ 25,117,087$ 28,629,321$ 19,809,829$ 7,998,978$ 6,552,727$ 18,424,347 78,164,108 10,247,276 9,747,281 7,328,408 43,541,434$ 106,793,429$ 30,057,105$ 17,746,259$ 13,881,135$ City of Georgetown, Texas Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 138 2020 2019 2018 2017 2016 General fund Nonspendable 245,067$ 454,443$ 231,057$ 246,648$ 507,929$ Committed Contingency 11,414,340 9,977,771 8,500,000 7,925,000 7,925,000 Economic stability - - 1,150,000 1,150,000 - Benefit payout 340,000 170,000 252,000 222,000 - Assigned - 1,011,219 682,350 919,906 1,502,188 Unassigned 9,197,203 2,827,859 1,131,340 2,862,071 2,561,845 Total general fund 21,196,610$ 14,441,292$ 11,946,747$ 13,325,625$ 12,496,962$ Other governmental funds Nonspendable 20,930$ -$ -$ -$ -$ Restricted Debt service 1,907,062 2,004,196 2,110,421 1,938,926 1,867,190 Bond funds 38,315,166 32,713,686 29,208,307 17,258,365 23,602,097 Hotel/motel tax 1,675,963 1,551,880 1,301,053 853,337 499,231 Street maintenance tax 3,530,549 1,558,875 3,301,181 3,422,465 2,388,379 Other purposes 2,901,071 638,729 547,157 762,196 692,834 Committed Other capital projects 31,029,700 20,821,652 16,896,037 11,556,682 10,985,484 Other purposes 6,876,345 6,747,159 7,723,610 5,405,555 3,324,663 Assigned - 13,469,490 17,529,424 22,456,924 26,160,650 Unassigned - - (228,267) (495,350) (105,707) Total all other governmental funds 86,256,786$ 79,505,667$ 78,388,923$ 63,159,100$ 69,414,821$ Note: City of Georgetown first applied GASB Statement No. 54 in fiscal year 2011; therefore, the new fund balance distinctions for years prior to fiscal year 2011 are not available. 139 2015 2014 2013 2012 66,702$ 22,810$ 18,697$ 2,110$ 7,695,000 7,500,000 7,400,000 7,000,000 - - - - - - - - 1,835,134 1,755,953 1,631,482 1,210,247 2,407,019 2,893,916 3,999,924 2,419,053 12,003,855$ 12,172,679$ 13,050,103$ 10,631,410$ -$ -$ -$ -$ 1,489,314 1,268,186 1,109,220 1,749,324 15,336,646 14,840,447 15,438,897 18,112,419 544,252 579,118 515,525 526,488 2,534,655 2,773,940 5,029,263 4,205,153 344,436 352,032 188,072 244,969 8,489,829 12,386,987 12,292,845 8,770,010 4,202,843 4,009,871 2,174,368 2,293,194 7,606,841 13,385,685 25,444,232 8,891,080 (663,535) - - - 39,885,281$ 49,596,266$ 62,192,422$ 44,792,637$ 2011 General fund Reserved 1,894,618$ Unreserved 8,260,029 Total general fund 10,154,647$ Other governmental funds Reserved 31,712,735$ Unreserved, reported in Special revenue funds - Capital projects funds 10,682,665 Total all other governmental funds 42,395,400$ City of Georgetown, Texas Changes In Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 140 2020 2019 2018 2017 2016 REVENUES Property taxes 33,808,581$ 30,854,570$ 28,636,709$ 26,109,522$ 25,276,211$ Sales tax and other taxes 33,230,110 29,480,937 26,700,946 24,588,124 21,556,336 Franchise taxes 5,882,916 5,646,479 5,274,758 4,973,295 4,926,315 Licenses and permits 3,435,817 3,756,125 2,747,720 2,652,279 2,113,126 Charges for service 18,241,169 19,299,458 16,126,270 14,273,666 12,512,232 Fine and forfeitures 399,007 473,251 457,279 500,577 525,510 Donations and grants 7,107,087 1,263,616 7,108,038 5,231,886 6,852,346 Investment income 1,329,892 2,379,050 1,322,819 672,070 356,761 Other revenue 746,569 2,082,621 2,883,871 1,875,015 3,207,387 Total revenues 104,181,148 95,236,107 91,258,410 80,876,434 77,326,224 EXPENDITURES Culture / recreation 12,175,658 13,051,248 12,804,253 11,362,281 11,144,256 Development 3,443,205 3,260,516 3,222,862 2,517,985 5,565,942 Fire services 19,821,262 18,373,565 16,079,479 14,848,470 13,823,467 General government 5,413,335 5,347,716 5,276,868 4,791,467 3,361,740 Highways and streets 4,852,090 9,079,580 12,271,033 6,992,059 7,794,109 Police 17,376,416 16,490,203 15,935,637 14,737,071 13,876,795 Environmental services 8,537,957 7,862,780 7,911,890 6,328,860 5,951,829 Capital outlay 23,707,970 32,473,431 28,581,061 39,219,989 23,482,464 Debt service Principal retirement 13,484,534 12,600,418 11,062,889 10,372,836 8,860,415 Interest and fiscal charges 7,767,277 7,454,605 6,724,766 5,808,925 4,931,447 Total expenditures 116,579,704 125,994,062 119,870,738 116,979,943 98,792,464 Excess (deficiency) of revenues over expenditures (12,398,556) (30,757,955) (28,612,328) (36,103,509) (21,466,240) OTHER FINANCING SOURCES (USES) Transfers in 13,602,477 12,093,253 16,406,657 15,963,898 14,712,268 Transfers out (7,332,484) (6,939,985) (9,893,720) (10,046,733) (7,421,944) Premiums on issuance of bonds - 2,489,315 3,837,621 1,799,286 1,831,554 Sale of property - 2,631,661 - - - Payment to refunding escrow agent - - (15,027,285) - (7,877,733) Bonds issued 19,635,000 24,095,000 47,140,000 22,960,000 50,244,742 Total other financing sources (uses) 25,904,993 34,369,244 42,463,273 30,676,451 51,488,887 NET CHANGE IN FUND BALANCES 13,506,437$ 3,611,289$ 13,850,945$ (5,427,058)$ 30,022,647$ Debt service as a percentage of noncapital expenditures 22.9% 21.4% 19.5% 20.8% 18.3% 141 2015 2014 2013 2012 2011 22,721,315$ 20,938,464$ 17,584,750$ 16,236,905$ 14,904,657$ 19,165,963 18,655,801 17,790,450 15,698,207 14,724,741 4,925,043 4,478,899 4,471,487 3,924,052 3,874,815 2,002,380 1,932,563 1,536,660 1,236,478 890,948 10,671,299 9,762,561 9,479,669 8,493,243 8,199,073 586,853 668,566 739,556 682,760 810,950 1,435,279 8,236,215 3,979,292 1,687,184 4,121,625 172,952 152,252 212,629 230,788 187,313 2,106,152 1,474,961 2,960,559 2,870,008 1,735,082 63,787,236 66,300,282 58,755,052 51,059,625 49,449,204 10,448,536 9,613,918 9,262,282 8,377,084 8,229,049 2,322,321 2,299,379 1,626,315 2,155,243 2,195,537 11,513,926 9,748,456 8,804,938 8,253,567 7,725,794 4,115,280 3,412,293 3,144,173 3,178,251 3,595,481 6,075,407 8,810,437 3,422,340 5,061,214 6,044,755 13,010,497 11,875,081 11,677,968 10,577,384 10,221,220 5,703,227 5,092,327 4,857,396 4,823,170 4,321,888 24,006,253 32,164,540 16,760,621 15,938,457 12,604,835 7,868,518 7,765,414 6,452,644 5,533,987 4,998,369 4,595,331 4,449,327 3,771,791 4,094,247 3,686,318 89,659,296 95,231,172 69,780,468 67,992,604 63,623,246 (25,872,060) (28,930,890) (11,025,416) (16,932,979) (14,174,042) 10,972,315 12,570,645 13,969,841 9,734,354 7,915,723 (9,313,269) (7,506,242) (4,331,850) (5,492,299) (2,654,379) 1,001,947 - - - - - 3,550,000 - - - (14,098,445) (11,911,063) (11,356,689) (3,416,787) - 27,429,703 18,753,970 32,562,592 18,981,711 21,650,000 15,992,251 15,457,310 30,843,894 19,806,979 26,911,344 (9,879,809)$ (13,473,580)$ 19,818,478$ 2,874,000$ 12,737,302$ 19.0% 19.4% 19.3% 18.5% 17.0% City of Georgetown, Texas Property Tax Rates, Levies and Collections Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 142 Interest and Current Percent Fiscal Tax General Sinking Total Tax of Levy Year Rate Fund Fund Tax Levy Collections Collected 2011 0.3562 0.2199 0.1363 15,098,808 14,635,299 96.93% 2012 0.3875 0.2229 0.1646 16,444,180 16,050,914 97.61% 2013 0.4100 0.2364 0.1736 17,806,346 17,384,594 97.63% 2014 0.4395 0.2160 0.2235 19,697,573 19,270,107 97.83% 2015 0.4340 0.2074 0.2266 21,383,874 20,968,385 98.06% 2016 0.4340 0.2072 0.2268 23,803,581 23,354,913 98.12% 2017 0.4240 0.1967 0.2273 25,551,262 25,470,885 99.69% 2018 0.4200 0.1927 0.2273 28,043,693 27,622,737 98.50% 2019 0.4200 0.1996 0.2205 30,490,501 30,291,980 99.35% 2020 0.4200 0.1955 0.2245 33,674,169 33,495,990 99.47% Source: City of Georgetown Tax Assessor. 143 Total Outstanding Collections Delinquent Delinquent as a Percent Outstanding Taxes as a Tax Total Tax of Current Delinquent Percent of Collections Collections Levy Taxes Current Levy 120,092 14,755,391 97.73% 343,417 2.27% 44,797 16,095,711 97.88% 349,082 2.12% 76,902 17,461,496 98.06% 344,851 1.94% 81,450 19,351,557 98.24% 346,016 1.76% 36,825 21,005,210 98.23% 378,664 1.77% 71,125 23,426,038 98.41% 377,543 1.59% (6,876) 25,464,009 99.66% 452,566 1.77% 89,789 27,712,526 98.82% 581,133 2.07% 69,555 30,361,535 99.58% 509,410 1.67% 52,780 33,548,770 99.63% 429,275 1.27% City of Georgetown, Texas Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years 144 Personal Property Estimated Estimated Fiscal Assessed Actual Assessed Actual Year Value (1)Value Value (1)Value 2011 3,786,177,221 3,786,177,221 269,771,730 269,771,730 2012 3,885,150,718 3,885,150,718 311,033,417 311,033,417 2013 4,033,324,389 4,033,324,389 382,683,621 382,683,621 2014 4,227,513,729 4,227,513,729 370,699,347 370,699,347 2015 4,801,066,109 4,801,066,109 326,852,517 326,852,517 2016 5,460,868,492 5,460,868,492 372,206,180 372,206,180 2017 6,055,421,970 6,055,421,970 426,545,483 426,545,483 2018 6,547,754,115 6,547,754,115 542,912,696 542,912,696 2019 7,402,055,252 7,402,055,252 428,295,165 428,295,165 2020 8,112,088,405 8,112,088,405 569,752,477 569,752,477 Real Property Source: Williamson County Appraisal District Tax Assessor/Collector. (1) Net of exemptions. 145 Total Total Ratio of Total Estimated Direct Assessed Value Assessed Actual Tax to Total Estimated Value (1)Value Rate Actual Value 4,055,948,951 4,055,948,951 0.3562 100.00% 4,196,184,135 4,196,184,135 0.3875 100.00% 4,416,008,010 4,416,008,010 0.4100 100.00% 4,598,213,076 4,598,213,076 0.4395 100.00% 5,127,918,626 5,127,918,626 0.4340 100.00% 5,838,074,672 5,838,074,672 0.4340 100.00% 6,481,967,453 6,481,967,453 0.4240 100.00% 7,090,666,811 7,090,666,811 0.4200 100.00% 7,830,350,417 7,830,350,417 0.4200 100.00% 8,681,840,882 8,681,840,882 0.4200 100.00% City of Georgetown, Texas Property Tax Rates – Direct and Overlapping Governments (Per $100 of Assessed Value) Last Ten Fiscal Years 146 Debt Georgetown Fiscal General Service Total Independent Williamson Year Fund Fund City School District County Total 2011 0.21 0.14 0.35 1.36 0.49 2.20 2012 0.22 0.16 0.38 1.40 0.49 2.27 2013 0.24 0.17 0.41 1.40 0.49 2.30 2014 0.22 0.22 0.44 1.40 0.49 2.33 2015 0.21 0.23 0.44 1.40 0.49 2.33 2016 0.21 0.23 0.44 1.40 0.48 2.32 2017 0.21 0.22 0.42 1.41 0.48 2.31 2018 0.19 0.23 0.42 1.41 0.46 2.29 2019 0.20 0.22 0.42 1.41 0.46 2.29 2020 0.20 0.22 0.42 1.34 0.46 2.22 City of Georgetown Source: Information furnished by respective tax assessors. City of Georgetown, Texas Principal Property Taxpayers Current Year and Nine Years Ago 147 Percentage Percentage of Total of Total Type of Assessed Assessed Assessed Assessed Taxpayer Business Value Rank Value (1)Value Rank Value (1) Citicorp North America Development 203,336,161$ 1 2.34% 41,714,222$ 3 1.03% WPG Wolf Ranch LLC Development 89,994,394 2 1.04% 55,874,164 1 1.38% Citigroup Technology Inc Development 82,650,000 3 0.95% BT-JV VG LLC Development 77,471,609 4 0.89% Carroll at Rivery Ranch LLC Apartments 46,598,805 5 0.54% LG WR1 LLC Development 42,545,746 6 0.49% St. David's Healthcare Partnership Hospital 42,325,855 7 0.49% Water's Edge Luxury Apartments LLC Apartments 42,006,832 8 0.48% 41,949,819 2 1.03% MRP Wolf Ranch LP Development 38,711,340 9 0.45% PBH Georgetown Apts LLC Apartments 37,000,000 10 0.43% The Bassham Trust Development 23,620,874 4 0.58% Citicorp North America Inc 3375 Development 22,530,014 5 0.56% South Austin Ave Prof Bldg Hospital 18,086,744 6 0.45% Wal-Mart Real Estate Bus Trust Grocer 16,241,376 7 0.40% Del Webb Texas Ltd Development 12,859,498 8 0.32% Republic Square K/C Ltd Development 12,500,000 9 0.31% Hewlett Holdings Ltd Automobile Dealer 12,059,642 10 0.30% Total 702,640,742$ 8.09% 257,436,353$ 6.35% 2020 2011 Source: City Tax Assessor/Collector. (1) The total assessed valuation for the fiscal year ended September 30, 2020 was certified at $8,681,840,882. *Per certified roll. Does not include some major property owners whose property is under protest as of date of certification. City of Georgetown, Texas Taxable Sales by Category Last Ten Fiscal Years 148 NAICS Sectors 2020* 2019 2018 2017 2016 Agriculture/Forestry/Fishing/Hunting -$ -$ -$ -$ -$ Mining, quarrying, oil & gas extraction - - - - - Utilities 35,016,212 43,667,940 30,132,050 24,653,363 24,509,458 Construction 33,901,554 40,056,047 25,020,124 24,798,897 18,369,915 Manufacturing 123,745,096 115,742,117 120,869,078 82,046,181 7,590,482 Wholesale trade 27,978,783 27,804,152 24,744,056 24,816,039 21,912,478 Retail trade 599,889,893 549,216,372 534,956,456 525,453,413 552,269,512 Transportation, warehousing 4,564,338 3,677,032 3,834,944 3,219,999 2,159,562 Information 76,362,611 77,390,775 62,540,410 47,709,743 51,059,437 Finance, insurance 2,632,221 2,612,369 3,303,579 3,557,444 3,357,319 Real estate, rental, leasing 3,827,475 3,444,769 3,364,139 3,387,155 3,393,642 Professional, scientific, technical svcs 12,500,619 9,757,092 9,359,072 8,624,509 8,189,352 Management of companies, enterprises 604,538 638,249 180,993 - 315,805 Admin, support, waste mgmt, remediation svcs 10,492,522 12,919,075 10,208,258 8,787,903 8,131,282 Educational svcs 356,809 540,780 645,249 479,225 538,758 Healthcare, social assistance 585,190 734,147 546,285 607,795 439,596 Arts, entertainment, recreation 9,140,944 12,786,896 12,774,273 13,139,889 12,251,028 Accommodation, food services 155,984,061 152,328,276 141,635,730 134,051,840 127,069,718 Other svcs (except public administration)79,418,380 40,019,932 30,602,131 27,870,439 26,724,994 Public administration - 1,027 57,786 31,743 18,245 Other - - - 2,613 - Total 1,177,001,246$ 1,093,337,047$ 1,014,774,613$ 933,238,189$ 868,300,583$ City direct sales tax rate 2.00% 2.00% 2.00% 2.00% 2.00% Source: Window on State Government - Glenn Hegar, Texas Comptroller of Public Accounts website. Amounts subject to sales tax have been restated by the state since the 2012 comprehensive annual financial report release. Notes: All reporting is by North American Industry Classification System (NAICS) sector. Standard Industrial Classification (SIC) Codes are no longer being assigned to taxpayers. *2020 is projected as 4th Quarter actuals were not in at time of update. 149 2015 2014 2013 2012 2011 -$ 448$ -$ 4,825$ -$ - - - - - 23,612,396 21,368,744 19,031,408 19,253,904 18,628,820 33,485,247 33,585,485 5,384,717 4,967,279 4,002,432 5,902,324 5,486,476 8,554,720 4,585,577 5,873,390 16,065,173 14,122,397 16,091,304 16,186,257 14,174,184 514,459,509 468,668,683 446,244,500 405,055,103 378,427,824 1,202,760 1,316,100 1,218,175 1,242,589 1,061,271 43,345,486 40,292,168 33,781,552 30,485,692 29,916,065 1,009,355 578,893 563,947 482,899 424,931 2,719,424 3,000,201 2,370,540 2,165,251 3,781,875 7,915,851 7,237,174 8,234,560 7,522,451 5,292,086 - - - - - 7,493,100 4,548,385 4,190,713 3,601,364 3,359,965 349,784 344,038 359,795 372,185 154,882 504,981 279,142 213,183 308,645 444,834 12,529,599 11,347,603 11,787,222 11,914,044 11,362,973 116,778,321 104,451,832 97,227,191 86,308,956 81,339,685 28,398,634 28,483,626 24,097,238 18,603,403 16,990,190 32,673 31,222 53,482 20,023 31,428 - - - - 1,198 815,804,617$ 745,142,617$ 679,404,247$ 613,080,447$ 575,268,033$ 2.00% 2.00% 2.00% 2.00% 2.00% City of Georgetown, Texas Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years 150 City Fiscal Direct State of Year Rate Texas 2011 2% 6.25% 2012 2% 6.25% 2013 2% 6.25% 2014 2% 6.25% 2015 2% 6.25% 2016 2% 6.25% 2017 2% 6.25% 2018 2% 6.25% 2019 2% 6.25% 2020 2% 6.25% Source: Information furnished by City of Georgetown. City of Georgetown, Texas Sales Tax Revenue Payers by Industry Fiscal Years 2020 and 2011 151 Number Percent Tax Percent NAICS Sectors of Filers of Total Liability of Total Agriculture/Forestry/Fishing/Hunting 10.05% -$ -$ 0.00% Mining, quarrying, oil & gas extraction 2 0.10% - - 0.00% Utilities 6 0.31% 35,660,320 713,206 3.00% Construction 179 9.32% 35,781,396 715,628 3.01% Manufacturing 136 7.08% 122,576,987 2,451,540 10.31% Wholesale trade 70 3.65% 27,880,477 557,610 2.35% Retail trade 642 33.44% 607,273,044 12,145,461 51.09% Transportation, warehousing 12 0.63% 4,530,240 90,605 0.38% Information 40 2.08% 77,367,465 1,547,349 6.51% Finance, insurance 16 0.83% 2,640,367 52,807 0.22% Real estate, rental, leasing 40 2.08% 3,867,843 77,357 0.33% Professional, scientific, technical svcs 142 7.40% 12,564,144 251,283 1.06% Management of companies, enterprises 5 0.26% 618,621 12,372 0.05% Admin, support, waste mgmt, remediation svcs 100 5.21% 10,475,575 209,511 0.88% Educational svcs 16 0.83% 364,484 7,290 0.03% Healthcare, social assistance 44 2.29% 622,333 12,447 0.05% Arts, entertainment, recreation 58 3.02% 9,589,139 191,783 0.81% Accommodation, food services 224 11.67% 157,410,584 3,148,212 13.24% Other svcs (except public administration)145 7.55% 79,452,500 1,589,050 6.68% Public administration 3 0.16% - - 0.00% Other 39 2.03% - - 0.00% Totals 1,920 100.00% 1,188,675,519$ 23,773,510$ 100.00% Number Percent Tax Percent NAICS Sectors of Filers of Total Liability of Total Agriculture/Forestry/Fishing/Hunting 00.00% -$ -$ 0.00% Mining, quarrying, oil & gas extraction 5 0.34% - - 0.00% Utilities 7 0.44% 17,151,900 343,038 2.98% Construction 104 6.55% 3,233,450 64,669 0.56% Manufacturing 104 6.57% 5,926,500 118,530 1.03% Wholesale trade 63 3.95% 10,540,450 210,809 1.83% Retail trade 591 37.22% 386,600,025 7,732,000 67.15% Transportation, warehousing 20 1.26% 1,160,500 23,210 0.20% Information 31 1.96% 29,951,650 599,033 5.20% Finance, insurance 10 0.61% 426,650 8,533 0.07% Real estate, rental, leasing 25 1.59% 3,726,150 74,523 0.65% Professional, scientific, technical svcs 135 8.48% 5,080,350 101,607 0.88% Management of companies, enterprises 1 0.06% - - 0.00% Admin, support, waste mgmt, remediation svcs 95 5.98% 3,200,650 64,013 0.56% Educational svcs 10 0.65% 137,000 2,740 0.02% Healthcare, social assistance 23 1.47% 501,700 10,034 0.09% Arts, entertainment, recreation 44 2.79% 11,167,200 223,344 1.94% Accommodation, food services 144 9.05% 81,149,925 1,622,998 14.09% Other svcs (except public administration)144 9.05% 15,801,000 316,020 2.74% Public administration 6 0.40% - - 0.00% Other 25 1.57% - - 0.00% Totals 1,588 100.00% 575,755,099$ 11,515,102$ 100.00% 2020* 2011 Source: Window on State Government. Notes: The City direct sales tax rate for both 2019 and 2010 is 2%. Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. All reporting is now by North American Industry Classification System (NAICS) sectors. Standard Industrial Classification (SIC) Codes are no longer being assigned to taxpayers, and data on SIC filers is no longer available. * 2020 is projected as 4th quarter actuals were not available at the time of update. City of Georgetown, Texas Ratios of Outstanding Debt by Type Last Ten Fiscal Years 152 General Sales Tax General Fiscal Obligation Revenue Related Revenue Obligation Related Year Bonds Bonds Premiums * Bonds Bonds Premiums * 2011 89,613,941$ 9,870,000$ -$ 55,945,000$ 12,981,059$ -$ 2012 100,356,664 9,420,000 - 51,425,000 11,618,336 - 2013 116,738,088 8,955,000 - 48,090,268 14,551,893 - 2014 116,200,602 8,470,000 - 61,885,000 13,884,399 - 2015 122,965,751 7,755,000 - 67,910,000 16,414,254 - 2016 154,191,338 7,225,000 4,596,657 72,545,000 15,286,384 2,943,619 2017 170,194,599 6,685,000 6,020,112 92,730,000 13,865,309 5,152,405 2018 192,278,643 6,125,000 9,391,939 93,335,000 12,491,356 5,043,308 2019 204,223,234 5,555,000 11,175,985 87,295,000 12,336,775 4,778,117 2020 210,843,700 4,960,000 10,360,307 100,220,124 12,066,301 4,925,077 Governmental Activities Business-Type Activities Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. * The City began including premiums related to debt for the 2016 presentation. 153 Total Percentage Primary of Personal Per Government Income Capita 168,410,000$ 11.63% 3,444$ 172,820,000 11.97% 3,469 188,335,249 11.84% 3,728 200,440,001 11.15% 3,839 215,045,005 10.28% 3,786 256,787,998 10.25% 4,373 294,647,425 9.56%4,859 318,665,246 9.88% 5,040 325,364,111 11.12% 4,802 338,450,432 8.82% 4,685 City of Georgetown, Texas Ratios of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Years 154 Taxable Assessed Gross Less Debt Fiscal Assessed Valuation Bonded Service Funds Year Population Value (1)Per Capita Debt (2)Available 2011 48,902 4,055,948,951$ 82,940$ 102,595,000$ 1,976,586$ 2012 49,543 4,196,184,135 84,698 111,975,000 1,749,324 2013 50,513 4,416,008,010 87,423 131,190,000 1,109,220 2014 52,214 4,598,213,076 88,065 130,085,001 1,268,186 2015 56,798 5,127,918,626 90,283 139,380,005 1,489,313 2016 58,723 5,838,074,672 99,417 169,477,722 1,867,190 2017 60,642 6,481,967,453 106,889 184,059,908 1,946,870 2018 63,227 7,090,666,811 112,146 204,770,000 2,113,651 2019 67,756 7,830,350,417 115,567 216,560,000 2,242,784 2020 72,243 8,681,840,882 120,176 222,910,000 2,195,384 Sources: WCAD Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Net of exemptions. (2) Includes all long-term general obligation debt. Beginning in 2019, related premiums and discounts are also included. (3) Less debt service funds available. 155 Ratio of Net Ratio of Gross Net Bonded Debt Bonded Debt Net Bonded Total Bonded Bonded to Assessed to Assessed Debt Per Debt Per Debt Value (3)Value (3)Capita (3)Capita (3) 73,396,051$ 1.81% 2.48% 1,501$ 2,058$ 83,698,631 1.99% 2.63% 1,689 2,225 101,604,245 2.30% 2.95% 2,011 2,575 128,816,815 2.80% 2.80% 2,467 2,467 137,890,692 2.69% 2.69% 2,428 2,428 167,610,532 2.87% 2.87% 2,854 2,854 182,113,038 2.81% 2.81% 3,003 3,003 202,656,349 2.86% 2.86% 3,205 3,205 214,317,216 2.74% 2.74% 3,163 3,163 220,714,616 2.54% 2.54% 3,055 3,055 City of Georgetown, Texas Computation of Direct and Estimated Overlapping Bonded Debt Last Ten Fiscal Years 156 Debt Per Taxing Body Amount As of Percent Amount Capita (1) ESTIMATED OVERLAPPING DEBT Georgetown I.S.D. 417,470,000$ 09/30/2020 66.21% 276,406,887$ 2,588$ Austin CCD 386,625 09/30/2020 0.03% 116 0 Jarrell ISD 99,305,000 09/30/2020 33.05% 32,820,303 2,563 Southeast Williamson County 17,925,000 09/30/2020 100.00% 17,925,000 248 Williamson County 1,010,794,956 09/30/2020 12.40% 125,338,575 212 Williamson Co MUD #28 27,250,000 09/30/2020 100.00% 27,250,000 377 Total estimated overlapping debt 1,554,819,956 29.70% 461,815,764 5,989 DIRECT DEBT - City of Georgetown 228,295,000 09/30/2020 100.00% 228,295,000 3,160 DIRECT AND ESTIMATED OVERLAPPING DEBT 1,783,114,956$ 690,110,764$ 9,149$ RATIO OF DIRECT AND OVERLAPPING TAX SUPPORTED DEBT TO TAXABLE ASSESSED VALUATION City's Share (2) Source: Municipal Advisory Council of Texas and entities listed. (1) GISD taxypayer population – 106,800 Williamson County population – 590,551 Jarrell ISD taxpayer poplulation – 12,806 City of Georgetown population – 72,243 Williamson Co. MUD #28 population – 690 (2) Information represents the share of the respective debt which are obligations of the citizens of the City of Georgetown. 157 This page intentionally left blank. City of Georgetown, Texas Computation of Legal Debt Margin Last Ten Fiscal Years 158 2020 2019 2018 2017 2016 DEBT LIMIT 97,670,710$ 97,670,710$ 79,770,002$ 72,922,134$ 65,678,340$ Total net debt applicable to limit (1)13,940,000 12,502,643 12,725,000 10,354,174 9,082,545 LEGAL DEBT MARGIN 83,730,710$ 85,168,067$ 67,045,002$ 62,567,960$ 56,595,795$ Total net debt applicable to limit as a percentage of debt limit 14.27%12.80% 15.95%14.20%13.83% ASSESSED VALUATION MINUS EXEMPTIONS 2020 8,681,840,882$ Allowable tax levy for annual debt service purpose: $1.25 per $100 of assessed valuation, assuming 90% collection rate 97,670,710$ 2020 annual debt service requirements for general obligation debt: Principal 20,943,695 Interest and fiscal charges 11,176,562 32,120,257 Legal margin for annual debt service requirements 65,550,453$ Note: All taxable property within the City is subject to the assessment levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal and interest on the Bonds within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits the maximum ad valorem tax rate to $2.50 per $100 assessed valuation (for all City purposes). The Charter of the City adopts the provisions of the constitution without further limitation. Under rules promulgated by the Office of the Attorney General of Texas, such office will not approve tax bonds of the City unless the City can demonstrate its ability to pay debt service requirements on all outstanding City tax bonds, including the issue to be approved, from a tax levy of $1.25 per $100 of valuation, based on 90% collection of tax. (1) The legal margin computation includes the general obligation debt that will be repaid by self-supporting sources such as the Airport, Stormwater Drainage, Water, Electric, and Georgetown Transportation Enhancement Corporation (GTEC) funds. 159 2015 2014 2013 2012 2011 57,689,085$ 51,729,897$ 49,680,090$ 47,207,072$ 45,629,426$ 6,652,866 6,521,597 8,570,145 7,350,236 8,640,634 51,036,219$ 45,208,300$ 41,109,945$ 39,856,836$ 36,988,792$ 11.53% 12.61% 17.25% 15.57% 18.94% City of Georgetown, Texas Revenue Bond Coverage Utility Funds (1) Last Ten Fiscal Years 160 Operating Expenses Net Revenue Fiscal Eligible Interest (Excluding Available for Year Revenues Earnings Depreciation) Debt Service 2011 88,605,410$ 159,888$ 65,271,517$ 23,493,781$ 2012 89,907,801 144,460 66,531,990 23,520,271 2013 86,876,459 118,277 58,803,394 28,191,342 2014 93,979,191 93,850 72,927,251 21,145,790 2015 106,686,101 164,921 78,010,309 28,840,713 2016 112,401,358 263,279 82,451,857 30,212,780 2017 126,705,643 529,545 91,766,018 35,469,170 2018 138,961,446 1,421,310 103,030,548 37,352,208 2019 152,029,043 2,185,604 107,422,916 46,791,731 2020 175,502,680 2,185,604 119,498,271 58,190,013 Source: Finance and Administration Division. Notes: (1) Electric, Water, and Wastewater only. 161 Debt Service Requirements Interest and Times Principal Fiscal Charges Total Coverage 3,880,000$ 1,859,107$ 5,739,107$ 4.09 4,255,000 1,742,974 5,997,974 3.92 3,970,000 1,963,653 5,933,653 4.75 4,716,977 2,231,375 6,948,352 3.04 5,421,104 2,100,147 7,521,251 3.83 5,227,329 2,738,792 7,966,121 3.79 5,845,826 2,931,943 8,777,769 4.04 6,717,094 3,433,854 10,150,948 3.68 6,982,358 3,681,909 10,664,267 4.39 7,660,031 3,314,390 10,974,421 5.30 City of Georgetown, Texas Utility System Condensed Statement of Operations (1) For the Last Ten Fiscal Years 162 2020 2019 2018 2017 2016 2015 REVENUES Water System 49,491,109$ 44,271,022$ 41,055,098$ 37,776,171$ 34,861,125$ 26,358,532$ Electric System 85,733,317 80,255,956 69,170,339 65,001,374 61,570,922 60,870,094 Miscellaneous other 8,516,124 6,447,569 6,348,385 5,661,272 5,107,307 14,746,510 Interest Earnings 1,504,417 2,185,604 1,421,310 529,545 263,279 164,921 Total revenues 145,244,967 133,160,151 117,995,132 108,968,362 101,802,633 102,140,057 EXPENSES (1) Water System 29,882,636 24,329,664 22,201,454 21,485,743 13,520,486 11,885,339 Electric System 16,563,721 18,713,967 18,876,347 16,712,384 14,623,945 8,259,062 Utility Contracts 66,283,879 61,833,672 59,621,450 53,567,891 51,999,930 55,419,233 Total expenses 112,730,236 104,877,303 100,699,251 91,766,018 80,144,361 75,563,634 NET AVAILABLE FOR DEBT SERVICE 32,514,731$ 28,282,848$ 17,295,881$ 17,202,344$ 21,658,272$ 26,576,423$ Notes: (1) Excluding depreciation costs & plant management cost (2) Electric, Water & Wastewater only Information provided to comply with continuing disclosure requirements of SEC Rule 15c2-12. Average Annual Principal and Interest Requirements, 2021-2040 $ 6,742,175 Coverage of Average Requirements by Fiscal Year 2020 Net Income 4.82 Maximum Principal and Interest Requirements, 2021 $10,931,978 Coverage of Maximum Requirements by Fiscal Year 2020 Net Income 2.97 163 2014 2013 2012 2011 24,953,208$ 24,930,408$ 25,026,601$ 25,896,644$ 58,017,664 53,780,319 58,403,735 57,694,311 4,997,415 4,888,117 3,966,677 2,927,695 93,850 118,277 144,460 159,888 88,062,137 83,717,121 87,541,473 86,678,538 8,561,671 7,737,541 7,053,864 7,708,924 7,056,224 7,265,433 8,828,039 5,554,896 55,147,284 43,800,420 50,650,087 52,007,697 70,765,179 58,803,394 66,531,990 65,271,517 17,296,958$ 24,913,727$ 21,009,483$ 21,407,021$ City of Georgetown, Texas Utility System Condensed Statement of System Equity (2) For the Last Ten Fiscal Years 164 2020 2019 2018 2017 2016 2015 Utility system (1)645,250,729$ 611,718,902$ 553,287,525$ 525,643,929$ 494,823,457$ 457,712,841$ Less: accumulated depreciation (183,285,833) (162,305,826) (146,759,978) (133,268,971) (121,636,964) (110,006,443) Net value of system 461,964,896 449,413,076 406,527,547 392,374,958 373,186,493 347,706,398 Plus: Construction fund 20,817,803 9,721,532 12,635,837 7,358,762 12,759,150 5,468,908 Net plant 482,782,699 459,134,608 419,163,384 399,733,720 385,945,643 353,175,306 Plus: Working capital 149,323,989 93,607,376 93,545,021 93,642,260 62,636,620 65,108,279 Total 632,106,688 552,741,984 512,708,405 493,375,980 448,582,263 418,283,585 Revenue bond debt (2)95,585,000 87,295,000 98,311,788 99,715,131 84,655,583 79,967,207 CITY'S EQUITY IN SYSTEM 536,521,688$ 465,446,984$ 414,396,617$ 393,660,849$ 363,926,680$ 338,316,378$ PERCENTAGE CITY'S EQUITY IN SYSTEM 84.88% 84.21% 80.83% 79.79% 81.13% 80.88% Notes: (1) Electric, Water and Wastewater funds only (2) Changes in bond ordinances no longer require reservation of interest and sinking or reserve funds for utility revenue debt. Information provided to comply with continuing disclosure requirements of SEC Rule 15c2-12. 165 2014 2013 2012 2011 424,822,231$ 338,199,636$ 313,923,709$ 306,424,774$ (99,974,691) (91,339,365) (82,719,027) (76,797,760) 324,847,540 246,860,271 231,204,682 229,627,014 4,910,605 12,193,462 22,866,932 11,692,027 329,758,145 259,053,733 254,071,614 241,319,041 51,655,164 35,992,864 33,419,764 35,700,091 381,413,309 295,046,597 287,491,378 277,019,132 74,051,097 59,028,078 59,050,004 64,540,000 307,362,212$ 236,018,519$ 228,441,374$ 212,479,132$ 80.59% 79.99% 79.46% 76.70% City of Georgetown, Texas Demographic and Economic Statistics Last Ten Fiscal Years 166 Per Capita Fiscal Personal Personal School Unemployment Year Population Income Income Enrollment Rate 2011 48,902 1,959,356,434$ 40,067$ 10,470 7.08% 2012 49,543 2,090,070,541 42,187 10,396 7.08% 2013 50,513 2,097,602,838 41,526 10,396 5.70% 2014 52,214 2,234,028,204 42,786 10,582 5.30% 2015 56,798 2,211,600,524 38,938 10,924 3.70% 2016 59,134 2,572,210,732 43,498 11,452 4.00% 2017 60,642 2,709,423,918 44,679 11,444 2.90% 2018 63,227 3,040,649,657 48,091 11,512 2.90% 2019 67,756 3,440,378,656 50,776 11,804 3.40% 2020 72,243 3,839,354,235 53,145 11,827 6.70% Sources: Population: City of Georgetown Planning and Development Division. Per Capita Personal Income: U.S. Dept. of Commerce / Bureau of Economic Analysis School Enrollment: Georgetown Independent School District. Unemployment Rate: Texas Workforce Commission, Labor Market and Career Information TRACER. Notes: Per capita personal income is for Williamson County and reflects estimates available as of January 1, 2020. Population for 2020 reflects city's population estimate for month ending Sep 30, 2020. Personal income calculated using city's population estimate and per capita income data. Unemployment rate reflects estimate for month ending Sep 30, 2020. City of Georgetown, Texas Principal Employers Current Year and Nine Years Ago 167 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Georgetown ISD 1,911 1 2.74% 1,700 1 3.74% Williamson County Govt 1,785 2 2.56% 1,500 2 3.30% City of Georgetown 876 3 1.25% 531 4 1.17% Airborn, Inc 602 4 0.86% 550 3 1.21% St. David's Hospital 457 5 0.65% 441 6 0.97% Southwestern University 436 6 0.62% 507 5 1.12% Wesleyan Homes 392 7 0.56% 301 7 0.66% Caring Home Health 310 8 0.44% 269 8 0.59% Smile Doctors 300 9 0.43% 0.00% Lone Star Cirlce of Care 256 10 0.37% 0.00% Sun City (Del Webb) 0.00% 260 9 0.57% Home Depot 0.00% 249 10 0.55% Totals 7,325 10.49% 6,308 13.88% 2020 2011 Source: Economic Development Department City of Georgetown, Texas Full Time Equivalent City Government Employees by Function Last Ten Fiscal Years 168 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Function General Government Culture & Recreation Administration 2 2 2 2 - 5 4 4 3 - CVB 5 5 5 5 ------ Parks 28 29 28 20 21 22 21 21 23 23 Recreation 26 25 25 23 27 42 39 39 39 39 Rec. Programs 6 6 6 6 6 4 4 4 3 3 Library 24 24 24 24 23 22 22 22 23 22 Development Administration -------2 Planning 13 13 12 11 10 9 8 8 11 11 Inspection Svcs.15 15 14 14 13 10 10 10 12 13 Code Enforcement 6 5 5 5 5 5 4 4 4 6 Environmental Environmental Svcs.1 1 1 1 1 1 1 1 1 1 Fire Services Fire Based Paramedic Program 23 23 23 19 15 15 ---- Support Svcs.15 15 14 14 14 13 7 6 7 6 Emergency Svcs.106 106 88 88 84 81 86 84 84 81 General Government General Government 4 3 3 3 2 3 2 2 2 2 City Secretary 2 6 6 5 5 5 4 - - - City Council 6 - - - - - - 3 3 2 City Manager's Office -9 9 10 10 4 5 6 4 6 Highways / Streets Transportation Admin.4 3 3 4 2 3 3 2 2 1 Streets 19 20 20 19 19 19 19 19 19 19 Police Services Administration 4 4 4 4 4 4 4 4 5 5 Field Operations 117 111 110 106 103 102 98 98 99 99 Animal Svcs.12 12 11 11 11 11 11 9 9 9 Municipal Court 7 7 7 7 7 7 7 6 7 7 Fleet Services 10 10 9 9 9 8 8 8 7 6 Facilities Maintenance 6 6 6 7 7 7 7 6 7 7 Information Technology 25 25 23 22 18 18 16 13 13 13 Joint Svcs.110 110 109 104 101 92 87 82 78 76 Water 60 57 52 58 51 37 19 19 19 20 Sewer 7 7 7 7 7 14 14 14 14 14 Electric 74 77 77 67 73 60 57 54 49 44 Other Enterprises 15 15 14 15 14 13 13 11 11 11 Total 764 746 710 690 658 632 575 555 553 544 Source: City Finance and Administration Division Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time equivalent employment is calculated by dividing total labor hours by 2,080. 169 This page intentionally left blank. City of Georgetown, Texas Operating Indicators by Functions Last Ten Fiscal Years 170 Function 2020 2019 2018 2017 2016 Culture and recreation Recreation Center memberships 11,713 13,127 13,001 12,433 12,944 CVB number of visitor inquiries 39,063 78,857 77,119 75,302 69,108 Library Circulation 430,995 547,279 498,281 533,602 513,725 Number of patrons added 3,025 4,791 4,100 3,529 3,818 Economic Development Number of proposals generated 68 61 68 62 51 Community Development Inspections/Code Enforcement Number of inspections 75,520 61,741 55,702 41,834 40,500 New residential permits issued 1,882 1,334 1,193 728 703 New commercial permits issued/TFO/Industrial 70 48 66 85 66 Number of code enforcement violations 13,838 17,687 18,777 8,702 13,784 Planning and Development Services Development applications filed 600 530 430 408 385 Annexations (in acres)75 428 962 649 246 Fire Services Number of calls for service 10,613 10,539 10,070 9,362 8,510 General Govt Bond rating - S&P AA+ AA+ AA+ AA+ AA+ City Manager's Office Number of public information requests processed 2,493 2,028 1,818 1,589 1,290 Police Services Number of calls for service 35,090 33,618 30,307 25,803 24,704 Number of traffic accidents 2,244 2,534 2,358 2,145 2,156 Animal Services Number of pets impounded 1,384 1,358 1,462 1,533 1,891 Number of adoptions 783 803 888 1,028 872 Municipal Court Number of court cases 3,397 4,406 3,925 4,797 4,905 Number of warrants served 170 150 146 225 278 Utility Office Number of utility customers 54,206 50,539 46,534 43,281 40,372 Water Number of new connects 4,003 3,065 4,446 2,351 1,532 Average daily water treated (million gallons)22.5 19 20 19 13 Average daily consumption (million gallons)22.5 19 18 16 16 Sewer Number of new connects 1,827 2,873 2,355 2,006 1,221 Average daily wastewater treated (million gallons)5.4 6 5 4 5 Electric kWhs consumed 664,967,846 643,472,635 649,208,058 621,464,114 605,019,836 Number of new connects 1,501 1,102 1,254 581 315 AMR Total number of work orders completed 38,205 9,237 5,203 3,677 3,223 Total reads by AMR 852,737 1,064,472 741,638 723,463 694,802 Other Enterprises Stormwater & Drainage Number of detention ponds cleaned 318 600 600 552 456 Number of work orders 225 340 263 233 242 Airport Gallons of fuel sold 793,970 732,974 759,400 866,833 778,328 Sources: Various City departments and City-Monthly Activity Indicators Report. 171 2015 2014 2013 2012 2011 11,604 9,901 10,678 13,769 16,044 55,156 54,188 50,617 42,901 35,749 527,987 559,209 550,683 552,032 527,746 3,428 2,161 2,446 2,526 2,184 56 44 48 38 36 31,828 29,818 30,282 21,270 18,383 718 701 777 664 509 92 92 61 89 97 14,052 16,213 15,225 11,535 11,090 373 370 313 290 284 2,022 152 161 61 703 7,084 6,250 6,153 5,706 5,674 AA+ AA+ AA+ AA+ AA+ 1,129 871 678 759 835 24,744 23,044 22,747 23,018 22,161 2,091 1,940 1,888 1,679 1,525 1,889 1,860 1,664 1,670 1,560 983 904 690 822 686 5,641 7,658 7,833 7,347 8,902 374 349 398 313 587 38,450 28,400 27,559 26,345 25,563 1,909 1,455 909 705 530 16 16 16 15 17 16 13 13 13 14 1,154 1,295 955 939 523 5 4 4 4 4 590,029,360 565,518,133 544,339,879 537,985,801 547,475,852 1,230 598 484 226 477 1,489 1,554 1,113 826 2,419 568,896 542,058 616,296 - - 454 422 404 372 372 489 530 710 552 196 636,128 648,065 565,851 581,450 765,839 City of Georgetown, Texas Capital Assets by Functions Last Ten Fiscal Years 172 Function 2020 2019 2018 2017 2016 Culture and recreation Parks (developed acres)1,084 1,054 1,054 494 480 Recreation Centers 1 1 1 1 1 Senior Centers 1 1 1 1 1 Libraries 1 1 1 1 1 Fire Services Fire stations 5 5 5 5 5 Fire vehicles 48 43 38 36 36 Highways and streets Center line miles 397 438 327 326 324 Police Services Police stations 1 1 1 1 1 Police vehicles 99 97 92 91 88 Police motorcycle units 4 6 6 6 6 Electric Meters 28,562 27,660 26,558 25,607 24,881 Sources: Various City departments and City budget document. 173 2015 2014 2013 2012 2011 480 473 473 473 473 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 4 34 29 25 22 18 312 310 310 305 295 1 1 1 1 1 84 84 87 87 93 6 6 4 4 4 24,147 22,918 22,660 22,504 22,090 City of Georgetown, Texas Ten Largest Electric Customers For the Fiscal Year Ended September 30, 2020 174 % of Total Customer Electric Usage CITICORP OF N AMERICA, IN 9.60% CITY OF GEORGETOWN 5.86% SOUTHWESTERN UNIVERSITY 2.72% WILLIAMSON COUNTY 2.63% SCOTT & WHITE MEDICAL CENTER 1.74% GEORGETOWN INDEPENDENT SCHOOL DISTRICT 1.74% ROUND ROCK PREMIUM OUTLETS 1.49% HEB GROCERY CO 1.31% ST DAVIDS GTWN HOSPTAL 1.10% R&D MOULDERS 1.01% TOTAL 29.20% Source: City of Georgetown Customer Care. City of Georgetown, Texas Water Usage (Gallons) Last Ten Fiscal Years 175 Fiscal Average Year Day Peak Day Total Ended Usage Production Usage September 30, (000s) (000s) (000s) 2011 14,024 26,778 5,955,541 2012 16,152 30,058 5,748,912 2013 15,976 28,818 5,121,278 2014 15,987 28,687 4,750,902 2015 15,875 35,394 5,794,201 2016 15,603 34,712 5,695,453 2017 15,815 38,003 5,772,395 2018 17,304 41,217 6,316,003 2019 19,130 41,692 6,449,467 2020 19,629 42,870 7,184,253 Source: City of Georgetown City of Georgetown, Texas Ten Largest Water Customers For the Fiscal Year Ended September 30, 2020 176 Water Usage% of Total Customer (1,000 Gallons) Water Usage CITY OF GEORGETOWN 57,029 0.79% GEORGETOWN INDEPENDENT SCHOOL DISTRICT 52,546 0.73% SOUTHWESTERN UNIVERSITY 51,281 0.71% N3 OWNER LP 43,031 0.60% SUN CITY TX COMM ASSOC 41,207 0.57% CITY OF LEANDER 35,195 0.49% CITICORP OF N AMERICA, IN 35,037 0.49% WILLIAMSON COUNTY 34,137 0.48% WESLEYAN HOMES 32,069 0.45% CYPRESS CREEK AT RIVER BEND 26,264 0.37% TOTAL 407,796 5.68% Source: City of Georgetown Customer Care. City of Georgetown, Texas Daily Flow (Wastewater Treatment) Last Ten Fiscal Years 177 Fiscal Year Gallons 2011 3,327,000 2012 3,594,000 2013 3,641,000 2014 4,260,000 2015 4,607,964 2016 4,871,523 2017 4,068,219 2018 4,517,592 2019 6,433,000 2020 6,216,592 Average Daily Wastewater Flow Source: City of Georgetown City of Georgetown, Texas Ten Largest Wastewater Customers For the Fiscal Year Ended September 30, 2020 178 Volume Customer (1,000 Gallons) % of Total Georgetown Independent School District 41,561 1.83% CITICORP OF N AMERICA, IN 31,164 1.37% SOUTHWESTERN UNIVERSITY 30,862 1.36% WILLIAMSON COUNTY 26,983 1.19% CYPRESS CREEK AT RIVER BEND 25,386 1.12% N3 OWNER LP 18,751 0.83% PULTE HOMES OF TEXAS LP 17,118 0.75% ST DAVIDS GTWN HOSPTAL 15,455 0.68% City of Georgetown 14,865 0.66% INDIAN CREEK APTS 14,793 0.65% 236,937 10.44% Source: City of Georgetown City of Georgetown, Texas Valuation, Exemptions and Ad Valorem Tax Debt For the Fiscal Year Ended September 30, 2020 179 2019/20 Market Valuation Established by Williamson Central Appraisal District (excluding totally exempt property)9,138,263,855 Less Exemptions/Reductions at 100% Market Value: (456,422,973) 2019/20 Taxable Assessed Valuation 8,681,840,882 City Funded Debt Payable from Ad Valorem Taxes (1)202,620,000$ The Bonds 9,080,000 The Certificates 11,210,000 Total Debt Payable from Ad Valorem Taxes (1)222,910,000 Interest and Sinking Fund (2,195,384) Net Debt Payable from Ad Valorem Taxes 220,714,616 Ratio of Net Tax Supported Debt to Taxable Assessed Valuation (1)2.33% 2020 Estimated Population - 72,944 Per Capita Taxable Assessed Valuation - $119,020.63 Per Capita Net Ad Valorem Tax Debt Payable from Ad Valorem Taxes - $3,025.81 Notes: (1) Includes $5,792,554 of self-supporting debt paid from Stormwater and Airport revenues and $6,544,222 of self-supporting debt paid from Electric and Water revenues. Includes $21,910,010 of self-supporting debt paid from the City's sales tax levied for economic development pursuant to an interlocal agreement with the City's Type B Corporation (GTEC). There is also $9,720,000 of self- supporting debt paid from ad valorem tax revenues within the Rivery and Downtown TIRZs. City of Georgetown, Texas Taxable Assessed Valuations by Category Last Ten Fiscal Years 180 Category Amount % of Total Amount % of Total Real, Residential, Single-Family 6,186,218,922$ 64.77% 5,771,630,770$ 66.32% Real, Residential, Multi-Family 553,433,317 5.79% 392,904,514 4.51% Real, Vacant Lots/Tracts 132,587,985 1.39% 126,008,013 1.45% Real, Acreage (Land Only)376,424,722 3.94% 380,712,227 4.37% Real, Farm and Ranch Improvements 94,432,830 0.99% 86,900,050 1.00% Real, Commercial/industrial 1,376,948,403 14.42% 1,327,848,862 15.26% Real and Intangible, Personal, Utilities, Other 69,585,049 0.73% 65,072,520 0.75% Tangible Personal, Commercial 462,417,703 4.84% 316,561,698 3.64% Tangible Personal, Industrial - 0.00% - 0.00% Tangible Personal, Other, Inventory 298,544,512 3.13% 235,348,599 2.70% Total Appraisal Value Before Exemptions 9,550,593,443$ 100.00% 8,702,987,253$ 100.00% Less: Total Exemptions/Reductions 868,752,561 872,636,836 Taxable Assessed Value 8,681,840,882$ 7,830,350,417$ Category Amount % of Total Amount % of Total Real, Residential, Single-Family 3,919,149,977$ 41.04% 3,383,707,151$ 65.32% Real, Residential, Multi-Family 180,615,033 1.89% 141,539,008 2.73% Real, Vacant Lots/Tracts 107,717,396 1.13% 105,728,114 2.04% Real, Acreage (Land Only)329,513,434 3.45% 274,265,523 5.29% Real, Farm and Ranch Improvements 10,841,218 0.11% 9,762,143 0.19% Real, Commercial/industrial 959,342,874 10.04% 852,941,178 16.46% Real and Intangible, Personal, Utilities, Other 51,686,900 0.54% 41,161,229 0.79% Tangible Personal, Commercial 234,873,665 2.46% 294,627,224 5.69% Tangible Personal, Industrial - 0.00% - 0.00% Tangible Personal, Other, Inventory 93,708,389 0.98% 76,722,581 1.48% Total Appraisal Value Before Exemptions 5,887,448,886$ 61.64% 5,180,454,151$ 100.00% Less: Total Exemptions/Reductions 759,530,260 582,241,075 Taxable Assessed Value 5,127,918,626$ 4,598,213,076$ 2015 2020 2019 2014 Source: Williamson County Appraisal District 181 Amount % of Total Amount % of Total Amount % of Total 5,269,955,833$ 60.55% 4,843,150,575$ 66.57% 4,461,872,364$ 66.73% 321,729,040 3.70% 301,347,956 4.14% 244,374,369 3.65% 113,986,653 1.31% 102,618,534 1.41% 109,578,980 1.64% 413,248,527 4.75% 392,906,486 5.40% 400,074,586 5.98% 12,051,614 0.14% 11,464,706 0.16% 10,959,024 0.16% 1,090,806,455 12.53% 1,119,423,577 15.39% 1,018,036,078 15.22% 55,881,385 0.64% 20,955,168 0.29% 39,895,007 0.60% 441,440,286 5.07% 365,113,563 5.02% 294,660,363 4.41% - 0.00% - 0.00% - 0.00% 120,423,148 1.38% 118,430,638 1.63% 107,456,924 1.61% 7,839,522,941$ 90.08% 7,275,411,203$ 100.00% 6,686,907,695$ 100.00% 748,856,130 793,443,750 848,833,023 7,090,666,811$ 6,481,967,453$ 5,838,074,672$ Amount % of Total Amount % of Total Amount % of Total 3,212,802,019$ 64.13% 3,051,782,791$ 62.49% 2,951,917,721$ 62.66% 136,323,871 2.72% 134,630,205 2.76% 136,781,699 2.90% 110,691,837 2.21% 112,194,608 2.30% 117,503,406 2.49% 287,098,365 5.73% 277,760,619 5.69% 280,860,043 5.96% 9,458,303 0.19% 7,749,074 0.16% 7,748,104 0.16% 838,635,946 16.74% 873,539,170 17.89% 827,031,630 17.55% 45,546,793 0.91% 47,029,662 0.96% 45,209,184 0.96% 302,428,949 6.04% 315,920,307 6.47% 278,224,342 5.91% - 0.00% 2,281,333 0.05% 2,234,106 0.05% 67,225,632 1.34% 60,766,941 1.24% 63,594,310 1.35% 5,010,211,715$ 100.00% 4,883,654,710 100.00% 4,711,104,545 99.99% 594,203,705 687,470,575 655,155,594 4,416,008,010$ 4,196,184,135$ 4,055,948,951$ 2012 2011 2017 20162018 2013 City of Georgetown, Texas Authorized but Unissued General Obligation Bonds September 30, 2020 182 Authorization Date Amount Amount Being Unissued Purpose Authorized Authorized Issued Used Balance Roads 11/04/2008 46,000,000$ 25,050,000$ -$ 20,950,000$ Parks & recreation 11/04/2008 35,500,000 22,710,000 - 12,790,000 Roads 05/09/2015 105,000,000 53,670,000 - 51,330,000 Total 186,500,000$ 101,430,000$ -$ 85,070,000$ 183 This page intentionally left blank. City of Georgetown, Texas General Fund Revenues and Expenditure History Last Ten Fiscal Years 184 2020 2019 2018 2017 2016 Revenues: Taxes 40,326,794$ 36,564,950$ 33,892,988$ 31,618,006$ 29,675,061$ Licenses and Permits 3,435,817 3,756,125 2,747,720 2,652,279 2,113,126 Charges for Services 17,296,439 19,138,571 13,488,592 11,838,632 10,676,249 Fines and Forfeitures 363,513 348,353 352,296 453,675 476,138 Miscellaneous and Interest 5,883,819 1,511,303 1,082,940 825,006 1,074,393 Total Revenues 67,306,382 61,319,302 51,564,536 47,387,598 44,014,967 Expenditures: General Government 4,815,269 4,914,894 4,913,556 4,436,866 3,237,092 Development Services 3,380,104 3,126,561 2,910,130 2,389,998 2,297,979 Culture / Recreation 10,485,028 10,994,484 10,319,911 9,552,133 9,447,132 Fire Services 19,557,377 18,113,884 13,526,334 12,500,721 11,806,803 Police Services 17,188,341 16,295,091 15,804,410 14,471,049 13,778,073 Environmental Services / Streets 12,263,385 12,294,557 12,663,901 10,310,775 10,333,422 Capital outlay 1,213,733 - - - - Total Expenditures 68,903,237 65,739,471 60,138,242 53,661,542 50,900,501 Excess (Deficiency) of Revenues Over Expenditures (1,596,855) (4,420,169) (8,573,706) (6,273,944) (6,885,534) Transfers In 8,877,033 7,686,360 9,165,637 9,592,342 8,909,975 Transfers Out (524,860) (771,646) (1,970,809) (2,489,735) (1,531,334) Net Increase (Decrease) 6,755,318 2,494,545 (1,378,878) 828,663 493,107 Fund Balance, Beginning of Year 14,441,292 11,946,747 13,325,625 12,496,962 12,003,855 Fund Balance, End of Year 21,196,610$ 14,441,292$ 11,946,747$ 13,325,625$ 12,496,962$ Fiscal Year Ending September 30, Source: City's Audited Financial Statements. 185 2015 2014 2013 2012 2011 27,331,498$ 25,293,544$ 24,522,441$ 22,013,241$ 21,335,893$ 2,002,380 1,932,563 1,536,660 1,236,478 890,948 10,556,447 9,682,702 9,302,816 8,268,169 8,082,889 529,920 598,717 670,582 616,815 762,923 722,772 682,447 1,460,008 579,060 614,138 41,143,017 38,189,973 37,492,507 32,713,763 31,686,791 3,762,714 3,013,544 2,908,971 2,992,852 3,384,950 2,148,991 2,003,688 1,579,575 1,890,481 2,195,537 9,156,876 8,401,551 7,945,906 7,183,369 7,289,676 10,595,388 9,455,714 8,638,166 7,590,667 7,011,366 12,899,092 11,687,498 11,471,418 10,498,193 10,060,311 9,281,051 9,435,835 8,236,375 8,247,315 7,347,201 - - - - - 47,844,112 43,997,830 40,780,411 38,402,877 37,289,041 (6,701,095) (5,807,857) (3,287,904) (5,689,114) (5,602,250) 7,720,944 6,964,508 6,655,673 6,200,518 6,079,801 (1,188,673) (2,034,075) (949,076) (34,641) (85,022) (168,824) (877,424) 2,418,693 476,763 392,529 12,172,679 13,050,103 10,631,410 10,154,647 9,762,118 12,003,855$ 12,172,679$ 13,050,103$ 10,631,410$ 10,154,647$ Fiscal Year Ending September 30, City of Georgetown, Texas Municipal Sales Tax History – General Fund Last Ten Fiscal Years 186 Fiscal Year % of Equivalent of Ended Total Ad Valorem Ad Valorem Per Tax September 30, Collected Tax Levy Tax Rate Capita Levy Rate 2011 7,803,863$ 52.41% 0.1867 160 14,889,961$ 0.3562 2012 8,277,502 49.10% 0.1903 167 16,856,914 0.3875 2013 9,326,554 50.78% 0.2082 185 18,367,332 0.4100 2014 10,984,723 53.24% 0.2340 210 20,632,709 0.4395 2015 11,296,645 49.55% 0.2150 199 22,799,091 0.4340 2016 12,679,188 54.22% 0.2353 216 23,384,947 0.4340 2017 13,595,005 53.21% 0.2256 232 25,551,262 0.4240 2018 14,827,612 52.87% 0.2221 235 28,043,693 0.4200 2019 16,581,705 54.38% 0.2284 245 30,490,501 0.4200 2020 19,108,465 56.75% 0.2383 265 33,674,169 0.4200 City of Georgetown, Texas Monthly and Volumetric Water Rates For the Fiscal Year Ended September 30, 2020 187 Customer Meter Size Inside City Outside City 5/8 inch $15.50 $18.50 3/4 inch 23.00 27.50 1 inch 38.50 46.00 1 1/2 inch 76.50 91.50 2 inch 153.50 183.50 3 inch 368.00 440.00 4 inch 644.00 770.00 6 inch 1,410.00 1,686.00 8 inch 2,450.00 2,929.50 Residential Water Rates 1,000 Gallons Volumetric Rate 0 - 10 $1.75 11 - 20 2.40 21 - 40 4.00 41 - 60 6.50 61 and over 8.50 Nonresidential Water Rates Cost per thousand gallons, Tier 1 $2.40 Cost per thousand gallons, Tier 2 6.50 Irrigation Meter, cost per thousand gallons, Tier 1 4.00 Irrigation Meter, cost per thousand gallons, Tier 1 8.50 Customer Charge per Month Source: City of Georgetown Note: Rates effective January 1, 2019 City of Georgetown, Texas Monthly Wastewater Rates For the Fiscal Year Ended September 30, 2020 188 Net Monthly Rate: Flat Rate Inside City Limits: $32.00 per month * Flat Rate Outside City Limits: $36.75 per month * * Low income residential discount: 20% below current flat rate for qualifying households Net Monthly Rate: a. Inside City Limits 1. Customer Charge $48.40 per month * 2. Volumetric Charge*$2.75 per 1,000 gallons b. Outside City Limits 1. Customer Charge $55.65 per month 2. Volumetric Charge*$3.15 per 1,000 gallons Net Monthly Rate: a. Inside City Limits 1. Customer Charge $85.95 per month 2. Volumetric Charge*$2.75 per 1,000 gallons b. Outside City Limits 1. Customer Charge $98.85 per month 2. Volumetric Charge*$3.15 per 1,000 gallons Net Monthly Rate: a. Inside City Limits 1. Customer Charge $48.4 per month 2. Volumetric Charge*$4.50 per 1,000 gallons b. Outside City Limits 1. Customer Charge $55.65 per month 2. Volumetric Charge*$5.20 per 1,000 gallons Net Monthly Rate: a. Inside City Limits 1. Customer Charge $114.95 per month 2. Volumetric Charge*$2.75 per 1,000 gallons b. Outside City Limits 1. Customer Charge $132.20 per month 2. Volumetric Charge*$3.15 per 1,000 gallons Commercial Large Commercial High Strength Commercial Multifamily Residential and Small Commercial * The volumetric charges are calculated using the actual water consumption billed per month. Source: City of Georgetown Notes: Rates effective October 1, 2019 City of Georgetown, Texas Monthly Electric Rates For the Fiscal Year Ended September 30, 2020 189 All Customers Purchased Power Cost Adjustment: $0.02375 per kWh Transmission Cost of Service: $0.0000 per kWh Residential Sales Tax: 2.00% of total electric charges; outside City limits: None Commercial Sales Tax: 8.25% of total electric charges; outside City limits: 6.25% Residential Service Customer Charge: $24.80 per month Energy Charge: $0.0958 per kWh Small General Service Customer Charge: $50.00 per month Energy Charge: $0.0902 per kWh School Charge Customer Charge: $200.00 per month Energy Charge: $0.1150 per kWh Water & Wastewater Pumping Service Customer Charge: $195.00 per month Demand Charge: $19.58 per kWh Energy Charge: $0.04504 per kWh Large General Service Customer Charge: $175.00 per month Demand Charge: $11.00 per kWh (50 kW minimum) Energy Charge: $0.06543 per kWh Minimum Bill: $725.00 Industrial Customer Charge: $350.00 per month Demand Charge: $16.00 per kWh (500 kW minimum) Energy Charge: $0.05648 per kWh Minimum Bill: $8,350.00 Large Industrial Service Customer Charge: $510.00 per month Demand Charge: $19.25 per kWh (2000 kW minimum) Energy Charge: $0.05317 per kWh Minimum Bill: $39,010.00 Municipal Service Customer Charge: $132.00 per month Energy Charge: $0.0700 per kWh Lighting Service High Pressure Sodium Municipal Street Retail Street 100 Watt per light (35 kWh) $8.50 per month $5.09 per month $5.26 per month 200 Watt per light (71 kWh) $14.50 per month $9.29 per month $9.75 per month 250 Watt per light (86 kWh) $16.70 per month $11.13 per month $11.64 per month 400 Watt per light (137 kWh) $23.50 per month $17.33 per month $18.17 per month Source: City of Georgetown Effective January 7, 2019 PCA effective February 1, 2019 190 This page intentionally left blank. 191 Compliance Section 192 This page intentionally left blank. Weaver and Tidwell, L.L.P. 1601 South MoPac Expressway, Suite D250 | Austin, Texas 78746 Main: 512.609.1900 | Fax: 512.609.1911 CPAs AND ADVISORS | WEAVER.COM 193 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards To the Honorable Mayor and Members of the City Council City of Georgetown, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Georgetown, Texas (the City), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated March 31, 2021. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider material weaknesses. However, material weaknesses may exist that were not identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The Honorable Mayor and Members of the City Council City of Georgetown, Texas 194 Purpose of the Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. WEAVER AND TIDWELL, L.L.P. Austin, Texas March 31, 2021 Weaver and Tidwell, L.L.P. 1601 South MoPac Expressway, Suite D250 | Austin, Texas 78746 Main: 512.609.1900 | Fax: 512.609.1911 CPAs AND ADVISORS | WEAVER.COM 195 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance To the Honorable Mayor and Members of the City Council City of Georgetown, Texas Report on Compliance for Each Major Federal Program We have audited the City of Georgetown, Texas’ (the City’s) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended September 30, 2020. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the federal statutes, regulations, and terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2020. The Honorable Mayor and Members of the City Council City of Georgetown, Texas 196 Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. WEAVER AND TIDWELL, L.L.P. Austin, Texas March 31, 2021 City of Georgetown, Texas Schedule of Findings and Questioned Costs Fiscal Year Ended September 30, 2020 197 Section 1. Summary of Auditor’s Results Financial Statements An unmodified opinion was issued on the financial statements. Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiencies identified that are not considered to be material weakness(es)? _ Yes X None reported Noncompliance material to financial statements noted? _Yes X No Federal Awards Internal control over major programs: Material weakness(es) identified? _ Yes X No Significant deficiencies identified that are not considered to be material weakness(es)? _ Yes X None reported An unmodified opinion was issued on compliance for major programs. Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a)? _Yes X No Identification of major programs: 97.083 FEMA SAFER Grant Dollar threshold used to distinguish between type A and type B programs? $750,000 Auditee qualified as low-risk auditee? _Yes X No City of Georgetown, Texas Schedule of Findings and Questioned Costs – Continued Fiscal Year Ended September 30, 2020 198 Section 2. Financial Statement Findings None Section 3. Federal Award Finding None City of Georgetown, Texas Schedule of Expenditures of Federal Awards Fiscal Year Ended September 30, 2020 The Notes to the Schedule of Expenditures of Federal Awards are an integral part of this statement. 199 Federal Grantor/ Federal Pass-Through Federal Pass-Through Grantor/ CFDA Entity Identifying Program Program Title Number Number Expenditures DEPARTMENT OF JUSTICE Direct Program Bulletproof Vest Program 16.607 1,554$ Equitable Sharing Funds 16.922 73,562 Total Department of Justice 75,116 DEPARTMENT OF TREASURY Direct Program Equitable Sharing Funds 21.016 6,372 Total direct programs 6,372 Passed through Williamson County Wilco Forward Phase II CARES COVID-19 Relief Fund 21.019 COVID-19 108,399 Total passed through programs 108,399 Total Department of Treasury 114,771 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Passed through Williamson County CDBG (17th Street Sidewalk)14.218 B-17-UC-48-0502 149,738 CDBG (Home Repair)14.218 B-19-UC-48-0502 31,940 Total Department of Housing and Urban Development 181,678 DEPARTMENT OF TRANSPORTATION Passed through Texas Parks and Wildlife National Recreational Trails Fund 20.219 RT-017010 183,760 Total Department of Transportation 183,760 DEPARTMENT OF HOMELAND SECURITY Passed through Federal Emergency Management Agency SAFER 97.083 EMW-2017-FH-00496 718,167 TIFMAS - Hurricane Laura Deployment 97.036 TX-TIFMAS-200013 10,817 Total Department of Homeland Security 728,984 Total Expenditures of Federal Awards 1,284,309$ City of Georgetown, Texas Notes to the Schedule of Expenditures of Federal Awards Fiscal Year Ended September 30, 2020 200 Note 1. General The accompanying schedule of expenditures of federal awards presents the activity of all applicable federal awards of the City of Georgetown, Texas (the City). The City’s reporting entity is defined in Note 1 to the City’s financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the respective schedule. The City has not elected to use the 10% de minimis indirect cost rate. Note 2. Basis of Accounting The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Note 3. Relationship to Federal Financial Reports Grant expenditures reports as of September 30, 2020, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will agree at termination of the grant, as the discrepancies noted are timing differences. 201