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Home My WebLink AboutAgenda_GTEC_04.19.2019Notice of Meeting for the Georgetown Transportation E nhancement Corp and the Gov erning B ody of the City of Georgetown April 17, 2019 at 3:30 P M at G MC B uilding, 300-1 I ndustrial Av enue, Georgetown, T X 78626 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C all to O rder B Introduc tion of New Board Members and Visitors C R eview Board/Meeting P roc edures - Emily Koontz, G T EC Board Liais on D Indus try/C AMP O /T xDO T Updates E P resentation on the S ales Tax Model in preparation for the F Y2020 Budget --P aul Diaz, Budget Manager F P resentation of G eorgetown Trans portation Enhanc ement C orporation monthly financ ial reports for March 2019 and dis cus s ion regarding the F isc al Year 2018 external audit and C omprehensive Annual F inanc ial R eport for the C ity and G T EC . Leigh Wallac e, F inance Director, C O G , F inanc e Manager, G T EC . L egislativ e Regular Agenda G Nominations and elec tion of P res ident of the G T EC Board cons is tent with S ection 3.02 of the G T EC Bylaws . – David Morgan – G eneral Manager - G T EC H Nominations and elec tion of Vic e-P res ident of the G T EC Board cons is tent with S ection 3.02 of the G T EC Bylaws.--David Morgan-G eneral Manager, G T EC Board I Nominations and elec tion of S ecretary of the G T EC Board c onsistent with S ec tion 3.02 of the G T EC Bylaws .--David Morgan-G eneral Manager, G T EC Board J R eview and pos s ible ac tion related to the Day and Time of G T EC Board Meetings. – David Morgan - G eneral Manager, G T EC Board K C ons ideration and possible approval of the minutes from the F ebruary 20, 2019 G T EC Board Meeting. -- David Morgan - G eneral Manager, G T EC Board L Disc ussion and pos s ible actio n to rec o mmend to C ounc il a resolution of the G eorgetown Trans portation Enhanc ement C orporation authorizing the bylaws of the corporation, c larifying the roles of the G eneral Manager and F inanc e Manager and autho rizing tho s e individ uals to delegate duties and respons ibilities. Leigh Wallac e, F inance Director, C O G , F inanc e Manager, G T EC . Page 1 of 61 C E RT IF IC AT E O F P O S T IN G I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a place readily ac cessible to the general public at all times, on the ______ day of __________________, 2019, at __________, and remained so pos ted for at least 72 continuous hours preceding the sc heduled time of s aid meeting. ____________________________________ R obyn Densmore, C ity S ecretary Page 2 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: C all to O rder IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Laura Wilkins - Board Liais on Page 3 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: Introduction of New Board Members and Vis itors IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Emily Koontz - Board Liais on Page 4 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: R eview Board/Meeting P rocedures - Emily Koontz, G T EC Board Liaison IT E M S UMMARY: T he following doc uments will be provided, at the meeting, for your referenc e: Bylaws R os ter Board Member Tidbits & Don't F orgets R eview: Attendance P olicy Q uorum R equirements S ign in S heet P arking Attorney G eneral Trainings - https ://www.texasattorneygeneral.gov/og/open-government-training 1. O pen Meeting Ac t 2. P ublic Meetings Ac t F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Page 5 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: Industry/C AMP O /T xDO T Updates IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Laura Wilkins - Board Liais on Page 6 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: P res entation on the S ales Tax Model in preparation for the F Y2020 Budget --P aul Diaz, Budget Manager IT E M S UMMARY: Annually through the budget process, F inanc e presents the sales tax model and methodology us ed to develop the projec tions for s ales tax. F IN AN C IAL IMPAC T: None S UB MIT T E D B Y: P aul Diaz, Budget Manager AT TAC H ME N T S: Description Type Sales Tax Presentation Pres entation Page 7 of 61 FY2020 Annual Budget Sales Tax Methodology Page 8 of 61 FY2020 Annual Budget City Sales Tax Breakdown Page 9 of 61 FY2020 Annual Budget Lots of Data •Two Major Sources –Confidential Report from the State: This is specific to Georgetown. (Over 200,000 rows of data) •NAICS Codes –All Cities Data(230,00 rows of data) Page 10 of 61 FY2020 Annual Budget Page 11 of 61 FY2020 Annual Budget Page 12 of 61 FY2020 Annual Budget Page 13 of 61 FY2020 Annual Budget Connection via PowerPivot 1014568977 Downtown TIRZ Paul’s Pizza Shack NAICS Code 725050 = Food Page 14 of 61 FY2020 Annual Budget PowerPivot Slices Page 15 of 61 FY2020 Annual Budget Page 16 of 61 FY2020 Annual Budget Page 17 of 61 FY2020 Annual Budget Forecasting Tools •Different trend analysis –Regression types –Different timeframes •Correlation Models –Aggregate –Sector Based Page 18 of 61 FY2020 Annual Budget Consistency in Data Page 19 of 61 FY2020 Annual Budget Page 20 of 61 FY2020 Annual BudgetAnother Way to Think about this Concept Page 21 of 61 FY2020 Annual Budget Page 22 of 61 FY2020 Annual Budget Sector Based Correlation Sector Percentage Multipler Two Year Trend Aggregate Forecast Retail 46%2.174 11,951,161 25,980,785 Information 8%12.500 1,996,126 24,951,571 Food 11%9.091 2,969,567 26,996,068 Sector Percentage Multipler Three Year Trend Aggregate Forecast Retail 46%2.174 12,201,161 26,524,264 Information 8%12.500 2,046,576 25,582,196 Food 11%9.091 2,969,567 26,996,068 Sector Percentage Multipler Four Year Trend Aggregate Forecast Retail 46%2.174 12,021,161 26,132,959 Information 8%12.500 2,016,626 25,207,821 Food 11%9.091 2,924,567 26,586,977 Median 26,132,959 Average 26,106,523 STD 700,867 Page 23 of 61 FY2020 Annual Budget Multi-Level Analysis •Georgetown Data •Austin MSA region •Top Twenty cities in Texas (Up 6.97%) •Regions in Texas •All Cities in Texas Page 24 of 61 FY2020 Annual Budget Scorecard Fiscal Actual Projected Variance Variance % FY2015 20,984,850 21,000,000 (15,150) -0.07% FY2016 23,437,496 22,900,000 537,496 2.35% FY2017 25,102,936 25,300,000 (197,064) -0.78% FY2018 27,254,787 27,100,000 154,787 0.57% Total 96,780,070 96,300,000 480,070 0.50% Page 25 of 61 FY2020 Annual Budget What We Are Seeing •All four year end models are all in agreement. –Aggregate Linear 6M 29,931,760 –Aggregate Linear 12 M 29,938,399 –Aggregate Linear 18M 29,954,560 –Correlation 30,052,209 –Spread of only $120,000 (5.72% -6.15% over budget) –Standard deviation of less than $49,000. Page 26 of 61 FY2020 Annual Budget Next Steps •Bring forward your year end and next year projections. •Present FY2020 Budget Page 27 of 61 FY2020 Annual Budget Page 28 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: P res entation of G eorgetown Transportation Enhancement C orporation monthly financial reports for March 2019 and disc ussion regarding the F is cal Year 2018 external audit and C omprehens ive Annual F inanc ial R eport for the C ity and G T EC . Leigh Wallace, F inanc e Direc tor, C O G , F inance Manager, G T EC . IT E M S UMMARY: I. T he Bylaws of G T E C (Article V, S ection 6.02) require the F inance M anager to report the financ ial ac tivity of the C orporation to the Board. • F inancial reports • S ales Tax revenues • Any other relevant financ ial information S ales tax is rec eived two months in arrears; therefore the revenues reflec t only the amount rec eived, not actually earned, as of the report date. A report on payments made to vendors for the month of March is als o included. I I. T he F isc al Year 2018 external audit was c ompleted by Weaver & Tidwell. G T EC is cons idered a “Blended C omponent Unit” of the C ity and is included in the audit. S taff will disc uss the results of the audit and present the financ ial s tatements for G T EC . F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Leigh Wallace F inance Director, C O G F inance Manager, G T EC AT TAC H ME N T S: Description Type GTEC_Financials_CAFR Backup Material GTEC Packet Backup Material Page 29 of 61 Meeting Date April 17, 2019 Item No. _________ GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION AGENDA ITEM COVER SHEET SUBJECT: Presentation of Georgetown Transportation Enhancement Corporation monthly financial reports for March 2019 and discussion regarding the Fiscal Year 2018 external audit and Comprehensive Annual Financial Report for the City and GTEC. Leigh Wallace, Finance Director, COG, Finance Manager, GTEC. ITEM SUMMARY: I. The Bylaws of GTEC (Article V, Section 6.02) require the Finance Manager to report the financial activity of the Corporation to the Board. • Financial reports • Sales Tax revenues • Any other relevant financial information Sales tax is received two months in arrears; therefore the revenues reflect only the amount received, not actually earned, as of the report date. A report on payments made to vendors for the month of March is also included. II. The Fiscal Year 2018 external audit was completed by Weaver & Tidwell. GTEC is considered a “Blended Component Unit” of the City and is included in the audit. Staff will discuss the results of the audit and present the financial statements for GTEC. ATTACHMENTS: Monthly Financial Report Sales Tax History Disbursement Report Independent Auditor’s Report Audited Year-End Financials Balance Sheet-Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance- Governmental Funds Schedule of Revenues and Expenditures (Budget Basis) SUBMITTED BY: Leigh Wallace Finance Director, COG Finance Manager, GTEC Page 30 of 61 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR‐END PROJECTION BEGINNING FUND BALANCE 18,078,282 18,078,282 Operating Revenue Sales Tax 7,073,100 495,298 2,383,731 7,073,100 Interest 190,000 25,246 210,365 210,365 Operating Revenue Total 7,263,100 520,543 2,594,096 7,283,465 Operating Expenditure Administrative Support 391,697 32,575 195,570 391,697 Operating Expenditure Total 391,697 32,575 195,570 391,697 TOTAL NET OPERATIONS 6,871,403 487,969 2,398,526 6,891,768 Non‐Operating Revenue Debt Proceeds 7,200,000 ‐ ‐ 7,200,000 Non‐Operating Revenue Total 7,200,000 ‐ ‐ 7,200,000 Non‐Operating Expenditure Pecan Center Dr to Airport Rd (FY15) 2,445,036 2,000 (334) 2,445,036 Arterial SE1:Inner Loop/SH130 7,200,000 ‐ ‐ 7,200,000 Rivery TIA Improvements 359,496 5,885 (11,986) 359,496 FM 971 / Fontana 63,102 10,966 ‐ 63,102 Rivery‐Extension Williams Dr to NW Blvd (FY16) 730,635 6,800 460,784 730,635 IH 35 / HWY29 Intersection 606,653 ‐ 160,375 606,653 SW Bypass 2243 to IH35 128,144 ‐ ‐ 128,144 FM1460 Widening 500,783 ‐ 60 500,783 Wolf Ranch Pkwy Extension 283,350 ‐ ‐ 283,350 Mays St 4,500,000 ‐ 4 4,500,000 Available for Projects TBD 1,768,275 ‐ ‐ 1,768,275 SE Inner Loop Widening (Rock Ride ROW) 900,000 ‐ 948,251 948,251 Debt Service 3,438,747 ‐ 521,942 3,438,747 Non‐Operating Expenditure Total 22,924,221 25,651 2,079,097 22,972,472 TOTAL NET NON‐OPERATIONS (15,724,221) (25,651) (2,079,097) (15,772,472) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (8,852,818) 462,318 319,429 (8,880,704) ENDING FUND BALANCE 9,225,464 9,197,578 Column1 Column2 Column3 Column4 Column5 RESERVES Contingency 1,768,275 1,768,275 Reserves Total 1,768,275 1,768,275 AVAILABLE FUND BALANCE 7,457,189 7,429,303 Georgetown Transportation Enhancement Corporation Fund Year‐End Projection to Approved: Mar FY2019 Page 31 of 61 Variance % Var. Month [a] 2014-15 2015-16 2016-17 2017-18 2018-19 To FY 18 To FY 18 Oct 392,374 424,201 458,993 497,912 636,131 138,219 27.76% Nov 411,566 451,065 500,856 508,257 540,315 32,058 6.31% Dec 575,095 592,798 642,167 651,758 684,264 32,506 4.99% Jan 350,778 386,252 440,023 461,162 507,941 46,779 10.14% Feb 356,428 432,468 422,226 535,188 Mar 495,804 533,967 549,206 632,448 Apr 410,683 435,906 469,044 540,144 May 382,794 481,672 500,753 595,044 Jun 522,356 571,069 605,936 629,252 Jul 435,977 478,136 619,557 574,462 Aug 411,552 530,326 491,386 568,616 Sep 500,805 541,513 575,588 619,457 Total 5,246,212$ 5,859,373$ 6,275,735$ 6,813,700$ 2,368,651$ 249,562$ YTD 1,729,813$ 1,854,316$ 2,042,039$ 2,119,089$ 2,368,651$ 249,562$ 11.78%[b] Notes: [a] Sales tax revenue from the State Comptroller is received two months in arrears. [b] YTD compared thru current month. Georgetown Transportation Enhancement Corporation $0.00 $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Re v e n u e s Sales Tax 3 Year Trend 2016‐17 2017‐18 2018‐19 Page 32 of 61 Check Report Summary For the Month Ending March 31, 2019 Kasberg, Patrick & Associates, LLP 8,800.00 Williams Drive Gateway Rivery Extension 6,800.00 Pecan Center Drive / Airport Road 2,000.00 Klotz Associates, Inc 10,965.74 FM 971 / Fontana (NW Bridge)10,965.74 M & S Engineering 5,885.00 Rivery TIA Improvements 5,885.00 Terracon Consultants, Inc.659.00 Rivery TIA Improvements 659.00 Williamson County Clerk 450,000.00 Rivery Ext 450,000.00 476,309.74 476,309.74 Page 33 of 61 Austin |Conroe |Dallas |Fort Worth |HoustonLos Angeles |Midland |New York City |San Antonio 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.COM3 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, 2018, 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. Page 34 of 61 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, 2018, 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. Emphasis of Matter As discussed in Note 1 to the financial statements, the City adopted the provisions of Government Accounting Standards Board Statement No. 75, Accounting and Reporting for Postemployment Benefits Other than Pensions, during the year ended September 30, 2018. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, 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 and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for the purposes of additional analysis 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), and is also not a required part of the basic financial statements. Page 35 of 61 The Honorable Mayor and Members of the City Council City of Georgetown, Texas 5 The combining and individual major and nonmajor fund financial statements and schedules and the schedule of the 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2019 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, 15, 2019 Page 36 of 61 City of Georgetown, Texas Balance Sheet – Governmental Funds September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 26 Georgetown Transportation General Nonmajor Total Enhancement Debt Capital Governmental Governmental General Corporation Service Projects Funds Funds ASSETS Cash and cash equivalents 3,994,952$ 13,371,917$ 2,113,446$ 18,939,065$ 5,451,470$ 43,870,850$ Investments 5,992,430 5,200,191 - 28,408,599 8,177,210 47,778,430 Accounts receivable, net Property taxes 290,680 - 280,908 - - 571,588 Sales tax 2,590,379 1,151,282 - - 657,451 4,399,112 Grants - 1,189,987 - - 127,607 1,317,594 Note receivable 197,633 - - - - 197,633 Other 1,998,570 - - 444,925 2,988,038 5,431,533 Due from other funds 1,416,151 - - - - 1,416,151 Prepaid items 24,133 - - - - 24,133 Inventories 9,291 - - - - 9,291 TOTAL ASSETS 16,514,219$ 20,913,377$ 2,394,354$ 47,792,589$ 17,401,776$ 105,016,315$ LIABILITIES Accounts payable and accrued liabilities 4,003,924$ 637,401$ 8,008$ 2,803,360$ 1,523,724$ 8,976,417$ Due to other funds - - - - 1,416,151 1,416,151 Unearned revenue 272,868 - - 1,636,065 1,812,539 3,721,472 Total liabilities 4,276,792 637,401 8,008 4,439,425 4,752,414 14,114,040 DEFERRED INFLOWS OF RESOURCES Deferred property taxes 290,680 - 275,925 - - 566,605 Total deferred inflows of resources 290,680 - 275,925 - - 566,605 FUND BALANCE Nonspendable 231,057 - - - - 231,057 Restricted - - 2,110,421 29,208,307 5,149,391 36,468,119 Committed 9,902,000 18,632,226 - - 5,987,421 34,521,647 Assigned 682,350 1,643,750 - 14,144,857 1,740,817 18,211,774 Unassigned 1,131,340 - - - (228,267) 903,073 Total fund balance 11,946,747 20,275,976 2,110,421 43,353,164 12,649,362 90,335,670 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE 16,514,219$ 20,913,377$ 2,394,354$ 47,792,589$ 17,401,776$ 105,016,315$ Page 37 of 61 City of Georgetown, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds For the Fiscal Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 28 Georgetown Transportation General Nonmajor Total General Enhancement Debt Capital Governmental Governmental Fund Corporation Service Pro jects Funds Funds REVENUES Property taxes 13,344,564$ -$ 13,541,712$ -$ -$ 26,886,276$ Penalties and interest 107,273 - - - - 107,273 Property assessment - - - - 1,643,160 1,643,160 Sales tax 14,827,611 6,813,700 - - 3,395,641 25,036,952 Franchise taxes 5,274,758 - - - - 5,274,758 Other taxes 338,782 - - - 1,325,212 1,663,994 Licenses and permits 2,747,720 - - - - 2,747,720 Char ges for service 13,488,592 - - - 2,637,678 16,126,270 Fines and forfeitures 352,296 - - - 104,983 457,279 Donations and grants 405,853 11,222 - 296,368 6,394,595 7,108,038 Investment income 145,865 305,665 142,856 557,318 171,115 1,322,819 Other revenue 531,222 - - 904,250 1,448,399 2,883,871 Total revenues 51,564,536 7,130,587 13,684,568 1,757,936 17,120,783 91,258,410 EXPENDITURES Current Culture / recreation 10,319,911 - - - 2,484,342 12,804,253 Development 2,910,130 - - - 312,732 3,222,862 Fire services 13,526,334 - - - 2,553,145 16,079,479 General government 4,913,556 363,312 - - - 5,276,868 Hi ghways and streets 4,868,555 - - - 7,402,478 12,271,033 Police 15,804,410 - - - 131,227 15,935,637 Environmental services 7,795,346 - - - 116,544 7,911,890 Capital outlay - 3,191,250 - 25,139,499 250,312 28,581,061 Debt service Principal retirement - 560,000 10,502,889 - - 11,062,889 Interest and fiscal charges - 281,600 5,800,641 642,525 - 6,724,766 Total expenditures 60,138,242 4,396,162 16,303,530 25,782,024 13,250,780 119,870,738 Excess (deficiency) of revenues over (under ) expenditures (8,573,706) 2,734,425 (2,618,962) (24,024,088) 3,870,003 (28,612,328) OTHER FINANCING SOURCES (USES) Transfers in 9,165,637 553,201 3,082,646 1,807,914 1,797,259 16,406,657 Transfers out (1,970,809) (2,493,762) - (2,129,839) (3,299,310) (9,893,720) Premiums on issuance of bonds - - 1,845,096 1,992,525 - 3,837,621 Issuance of bonds - - - 34,250,000 - 34,250,000 Payment to refunding escrow agent - - (15,027,285) - - (15,027,285) Refunding bonds issued - - 12,890,000 - - 12,890,000 Total other financing sources (uses ) 7,194,828 (1,940,561) 2,790,457 35,920,600 (1,502,051) 42,463,273 Net change in fund balances (1,378,878) 793,864 171,495 11,896,512 2,367,952 13,850,945 FUND BALANCES, beginning of year 13,325,625 19,482,112 1,938,926 31,456,652 10,281,410 76,484,725 FUND BALANCES,end of year 11,946,747$ 20,275,976$ 2,110,421$ 43,353,164$ 12,649,362$ 90,335,670$ Page 38 of 61 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 Fiscal Year Ended September 30, 2018 118 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Sales tax 6,575,000$ 6,575,000$ 6,813,700$ 238,700$ Grants - - 11,222 11,222 Investment earnings 127,000 127,000 306,483 179,483 Total revenues 6,702,000 6,702,000 7,131,405 429,405 EXPENDITURES Operations 364,814 364,814 363,312 1,502 Principal, interest and fiscal charges 842,950 842,950 843,700 (750) Capital outlay 2,053,750 15,216,240 4,147,232 11,069,008 Total expenditures 3,261,514 16,424,004 5,354,244 11,069,760 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,440,486 (9,722,004) 1,777,161 11,499,165 OTHER FINANCING SOURCES (USES) Transfers in 553,201 553,201 553,201 - Transfers out (2,487,185) (2,487,185) (2,493,762) (6,577) Total other financing sources (uses ) (1,933,984) (1,933,984) (1,940,561) (6,577) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS 1,506,502 (11,655,988 ) (163,400) 11,492,588 Fund balance, beginning of period 9,788,621 18,241,681 17,696,565 (545,116) FUND BALANCE - BUDGETARY BASIS, end of period 11,295,123$ 6,585,693$ 17,533,165 10,947,472$ ADJUSTMENTS TO GAAP Reverse bond interest 2,100 Net changes in unrealized gains/(losses) on investments (818) Reduce restricted fund balance 560,000 Reserve for encumbrances 1,736,189 Reverse voided purchase orders 445,340 FUND BALANCE - GAAP BASIS, end of period 20,275,976$ Page 39 of 61 Meeting Date April 17, 2019 Item No. _________ GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION AGENDA ITEM COVER SHEET SUBJECT: Presentation of Georgetown Transportation Enhancement Corporation monthly financial reports for March 2019 and discussion regarding the Fiscal Year 2018 external audit and Comprehensive Annual Financial Report for the City and GTEC. Leigh Wallace, Finance Director, COG, Finance Manager, GTEC. ITEM SUMMARY: I. The Bylaws of GTEC (Article V, Section 6.02) require the Finance Manager to report the financial activity of the Corporation to the Board. • Financial reports • Sales Tax revenues • Any other relevant financial information Sales tax is received two months in arrears; therefore the revenues reflect only the amount received, not actually earned, as of the report date. A report on payments made to vendors for the month of March is also included. II. The Fiscal Year 2018 external audit was completed by Weaver & Tidwell. GTEC is considered a “Blended Component Unit” of the City and is included in the audit. Staff will discuss the results of the audit and present the financial statements for GTEC. ATTACHMENTS: Monthly Financial Report Sales Tax History Disbursement Report Independent Auditor’s Report Audited Year-End Financials Balance Sheet-Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance- Governmental Funds Schedule of Revenues and Expenditures (Budget Basis) SUBMITTED BY: Leigh Wallace Finance Director, COG Finance Manager, GTEC Page 40 of 61 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR‐END PROJECTION BEGINNING FUND BALANCE 18,078,282 18,078,282 Operating Revenue Sales Tax 7,073,100 495,298 2,383,731 7,073,100 Interest 190,000 25,246 210,365 210,365 Operating Revenue Total 7,263,100 520,543 2,594,096 7,283,465 Operating Expenditure Administrative Support 391,697 32,575 195,570 391,697 Operating Expenditure Total 391,697 32,575 195,570 391,697 TOTAL NET OPERATIONS 6,871,403 487,969 2,398,526 6,891,768 Non‐Operating Revenue Debt Proceeds 7,200,000 ‐ ‐ 7,200,000 Non‐Operating Revenue Total 7,200,000 ‐ ‐ 7,200,000 Non‐Operating Expenditure Pecan Center Dr to Airport Rd (FY15) 2,445,036 2,000 (334) 2,445,036 Arterial SE1:Inner Loop/SH130 7,200,000 ‐ ‐ 7,200,000 Rivery TIA Improvements 359,496 5,885 (11,986) 359,496 FM 971 / Fontana 63,102 10,966 ‐ 63,102 Rivery‐Extension Williams Dr to NW Blvd (FY16) 730,635 6,800 460,784 730,635 IH 35 / HWY29 Intersection 606,653 ‐ 160,375 606,653 SW Bypass 2243 to IH35 128,144 ‐ ‐ 128,144 FM1460 Widening 500,783 ‐ 60 500,783 Wolf Ranch Pkwy Extension 283,350 ‐ ‐ 283,350 Mays St 4,500,000 ‐ 4 4,500,000 Available for Projects TBD 1,768,275 ‐ ‐ 1,768,275 SE Inner Loop Widening (Rock Ride ROW) 900,000 ‐ 948,251 948,251 Debt Service 3,438,747 ‐ 521,942 3,438,747 Non‐Operating Expenditure Total 22,924,221 25,651 2,079,097 22,972,472 TOTAL NET NON‐OPERATIONS (15,724,221) (25,651) (2,079,097) (15,772,472) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (8,852,818) 462,318 319,429 (8,880,704) ENDING FUND BALANCE 9,225,464 9,197,578 Column1 Column2 Column3 Column4 Column5 RESERVES Contingency 1,768,275 1,768,275 Reserves Total 1,768,275 1,768,275 AVAILABLE FUND BALANCE 7,457,189 7,429,303 Georgetown Transportation Enhancement Corporation Fund Year‐End Projection to Approved: Mar FY2019 Page 41 of 61 Variance % Var. Month [a] 2014-15 2015-16 2016-17 2017-18 2018-19 To FY 18 To FY 18 Oct 392,374 424,201 458,993 497,912 636,131 138,219 27.76% Nov 411,566 451,065 500,856 508,257 540,315 32,058 6.31% Dec 575,095 592,798 642,167 651,758 684,264 32,506 4.99% Jan 350,778 386,252 440,023 461,162 507,941 46,779 10.14% Feb 356,428 432,468 422,226 535,188 Mar 495,804 533,967 549,206 632,448 Apr 410,683 435,906 469,044 540,144 May 382,794 481,672 500,753 595,044 Jun 522,356 571,069 605,936 629,252 Jul 435,977 478,136 619,557 574,462 Aug 411,552 530,326 491,386 568,616 Sep 500,805 541,513 575,588 619,457 Total 5,246,212$ 5,859,373$ 6,275,735$ 6,813,700$ 2,368,651$ 249,562$ YTD 1,729,813$ 1,854,316$ 2,042,039$ 2,119,089$ 2,368,651$ 249,562$ 11.78%[b] Notes: [a] Sales tax revenue from the State Comptroller is received two months in arrears. [b] YTD compared thru current month. Georgetown Transportation Enhancement Corporation $0.00 $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Re v e n u e s Sales Tax 3 Year Trend 2016‐17 2017‐18 2018‐19 Page 42 of 61 Check Report Summary For the Month Ending March 31, 2019 Kasberg, Patrick & Associates, LLP 8,800.00 Williams Drive Gateway Rivery Extension 6,800.00 Pecan Center Drive / Airport Road 2,000.00 Klotz Associates, Inc 10,965.74 FM 971 / Fontana (NW Bridge)10,965.74 M & S Engineering 5,885.00 Rivery TIA Improvements 5,885.00 Terracon Consultants, Inc.659.00 Rivery TIA Improvements 659.00 Williamson County Clerk 450,000.00 Rivery Ext 450,000.00 476,309.74 476,309.74 Page 43 of 61 Austin |Conroe |Dallas |Fort Worth |HoustonLos Angeles |Midland |New York City |San Antonio 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.COM3 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, 2018, 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. Page 44 of 61 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, 2018, 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. Emphasis of Matter As discussed in Note 1 to the financial statements, the City adopted the provisions of Government Accounting Standards Board Statement No. 75, Accounting and Reporting for Postemployment Benefits Other than Pensions, during the year ended September 30, 2018. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, 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 and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for the purposes of additional analysis 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), and is also not a required part of the basic financial statements. Page 45 of 61 The Honorable Mayor and Members of the City Council City of Georgetown, Texas 5 The combining and individual major and nonmajor fund financial statements and schedules and the schedule of the 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2019 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, 15, 2019 Page 46 of 61 City of Georgetown, Texas Balance Sheet – Governmental Funds September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 26 Georgetown Transportation General Nonmajor Total Enhancement Debt Capital Governmental Governmental General Corporation Service Projects Funds Funds ASSETS Cash and cash equivalents 3,994,952$ 13,371,917$ 2,113,446$ 18,939,065$ 5,451,470$ 43,870,850$ Investments 5,992,430 5,200,191 - 28,408,599 8,177,210 47,778,430 Accounts receivable, net Property taxes 290,680 - 280,908 - - 571,588 Sales tax 2,590,379 1,151,282 - - 657,451 4,399,112 Grants - 1,189,987 - - 127,607 1,317,594 Note receivable 197,633 - - - - 197,633 Other 1,998,570 - - 444,925 2,988,038 5,431,533 Due from other funds 1,416,151 - - - - 1,416,151 Prepaid items 24,133 - - - - 24,133 Inventories 9,291 - - - - 9,291 TOTAL ASSETS 16,514,219$ 20,913,377$ 2,394,354$ 47,792,589$ 17,401,776$ 105,016,315$ LIABILITIES Accounts payable and accrued liabilities 4,003,924$ 637,401$ 8,008$ 2,803,360$ 1,523,724$ 8,976,417$ Due to other funds - - - - 1,416,151 1,416,151 Unearned revenue 272,868 - - 1,636,065 1,812,539 3,721,472 Total liabilities 4,276,792 637,401 8,008 4,439,425 4,752,414 14,114,040 DEFERRED INFLOWS OF RESOURCES Deferred property taxes 290,680 - 275,925 - - 566,605 Total deferred inflows of resources 290,680 - 275,925 - - 566,605 FUND BALANCE Nonspendable 231,057 - - - - 231,057 Restricted - - 2,110,421 29,208,307 5,149,391 36,468,119 Committed 9,902,000 18,632,226 - - 5,987,421 34,521,647 Assigned 682,350 1,643,750 - 14,144,857 1,740,817 18,211,774 Unassigned 1,131,340 - - - (228,267) 903,073 Total fund balance 11,946,747 20,275,976 2,110,421 43,353,164 12,649,362 90,335,670 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE 16,514,219$ 20,913,377$ 2,394,354$ 47,792,589$ 17,401,776$ 105,016,315$ Page 47 of 61 City of Georgetown, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds For the Fiscal Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 28 Georgetown Transportation General Nonmajor Total General Enhancement Debt Capital Governmental Governmental Fund Corporation Service Pro jects Funds Funds REVENUES Property taxes 13,344,564$ -$ 13,541,712$ -$ -$ 26,886,276$ Penalties and interest 107,273 - - - - 107,273 Property assessment - - - - 1,643,160 1,643,160 Sales tax 14,827,611 6,813,700 - - 3,395,641 25,036,952 Franchise taxes 5,274,758 - - - - 5,274,758 Other taxes 338,782 - - - 1,325,212 1,663,994 Licenses and permits 2,747,720 - - - - 2,747,720 Char ges for service 13,488,592 - - - 2,637,678 16,126,270 Fines and forfeitures 352,296 - - - 104,983 457,279 Donations and grants 405,853 11,222 - 296,368 6,394,595 7,108,038 Investment income 145,865 305,665 142,856 557,318 171,115 1,322,819 Other revenue 531,222 - - 904,250 1,448,399 2,883,871 Total revenues 51,564,536 7,130,587 13,684,568 1,757,936 17,120,783 91,258,410 EXPENDITURES Current Culture / recreation 10,319,911 - - - 2,484,342 12,804,253 Development 2,910,130 - - - 312,732 3,222,862 Fire services 13,526,334 - - - 2,553,145 16,079,479 General government 4,913,556 363,312 - - - 5,276,868 Hi ghways and streets 4,868,555 - - - 7,402,478 12,271,033 Police 15,804,410 - - - 131,227 15,935,637 Environmental services 7,795,346 - - - 116,544 7,911,890 Capital outlay - 3,191,250 - 25,139,499 250,312 28,581,061 Debt service Principal retirement - 560,000 10,502,889 - - 11,062,889 Interest and fiscal charges - 281,600 5,800,641 642,525 - 6,724,766 Total expenditures 60,138,242 4,396,162 16,303,530 25,782,024 13,250,780 119,870,738 Excess (deficiency) of revenues over (under ) expenditures (8,573,706) 2,734,425 (2,618,962) (24,024,088) 3,870,003 (28,612,328) OTHER FINANCING SOURCES (USES) Transfers in 9,165,637 553,201 3,082,646 1,807,914 1,797,259 16,406,657 Transfers out (1,970,809) (2,493,762) - (2,129,839) (3,299,310) (9,893,720) Premiums on issuance of bonds - - 1,845,096 1,992,525 - 3,837,621 Issuance of bonds - - - 34,250,000 - 34,250,000 Payment to refunding escrow agent - - (15,027,285) - - (15,027,285) Refunding bonds issued - - 12,890,000 - - 12,890,000 Total other financing sources (uses ) 7,194,828 (1,940,561) 2,790,457 35,920,600 (1,502,051) 42,463,273 Net change in fund balances (1,378,878) 793,864 171,495 11,896,512 2,367,952 13,850,945 FUND BALANCES, beginning of year 13,325,625 19,482,112 1,938,926 31,456,652 10,281,410 76,484,725 FUND BALANCES,end of year 11,946,747$ 20,275,976$ 2,110,421$ 43,353,164$ 12,649,362$ 90,335,670$ Page 48 of 61 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 Fiscal Year Ended September 30, 2018 118 Original Budget Final Budget Actual Budgetary Basis Variance to Budget REVENUES Sales tax 6,575,000$ 6,575,000$ 6,813,700$ 238,700$ Grants - - 11,222 11,222 Investment earnings 127,000 127,000 306,483 179,483 Total revenues 6,702,000 6,702,000 7,131,405 429,405 EXPENDITURES Operations 364,814 364,814 363,312 1,502 Principal, interest and fiscal charges 842,950 842,950 843,700 (750) Capital outlay 2,053,750 15,216,240 4,147,232 11,069,008 Total expenditures 3,261,514 16,424,004 5,354,244 11,069,760 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,440,486 (9,722,004) 1,777,161 11,499,165 OTHER FINANCING SOURCES (USES) Transfers in 553,201 553,201 553,201 - Transfers out (2,487,185) (2,487,185) (2,493,762) (6,577) Total other financing sources (uses ) (1,933,984) (1,933,984) (1,940,561) (6,577) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS 1,506,502 (11,655,988 ) (163,400) 11,492,588 Fund balance, beginning of period 9,788,621 18,241,681 17,696,565 (545,116) FUND BALANCE - BUDGETARY BASIS, end of period 11,295,123$ 6,585,693$ 17,533,165 10,947,472$ ADJUSTMENTS TO GAAP Reverse bond interest 2,100 Net changes in unrealized gains/(losses) on investments (818) Reduce restricted fund balance 560,000 Reserve for encumbrances 1,736,189 Reverse voided purchase orders 445,340 FUND BALANCE - GAAP BASIS, end of period 20,275,976$ Page 49 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: Nominations and election of P resident of the G T EC Board c onsistent with S ec tion 3.02 of the G T EC Bylaws. – David Morgan – G eneral Manager - G T EC IT E M S UMMARY: P er the Bylaws of the G eorgetown Transportation Enhanc ement C o rp o ration Board – “S ec tion 3.02 – O ffic ers. T he offic ers of the corporatio n s hall be a president, vice pres ident and s ecretary. T he b o ard , at each annual meeting, s hall elect thes e offic ers . T he b o ard may ap p o int such o ther offic ers as it deems nec es s ary, who s hall have the authority, and shall p erfo rm such d uties as from time to time may be pres cribed by the board.” F IN AN C IAL IMPAC T: n/a S UB MIT T E D B Y: David Morgan - G eneral Manager, G T EC Board Page 50 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: Nominations and election of Vice-P resident of the G T EC Board c onsistent with S ec tion 3.02 of the G T EC Bylaws .--David Morgan-G eneral Manager, G T EC Board IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan - G eneral Manager, G T EC Board Page 51 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: Nominations and election of S ec retary of the G T EC Board cons is tent with S ection 3.02 of the G T EC Bylaws.--David Morgan-G eneral Manager, G T EC Board IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan - G eneral Manager, G T EC Board Page 52 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: R eview and possible action related to the Day and Time of G T EC Board Meetings . – David Morgan - G eneral Manager, G T EC Board IT E M S UMMARY: P er the G T EC Bylaws Section 2.03 Time & Date of Regular Meeting. T he board shall meet on a regular basis, at a s pecified time, day and loc ation as approved annually by the board. All meetings shall be called and held in acc ordanc e with the Texas O pen Meetings Act, C hapter 551, G overnment C ode, as amended. T he pres ident of the board may cancel the meeting if there is no busines s to be conduc ted. Currently, the GT E C Board meets on the third Wednesday of each month at 3:30 P M. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan - G eneral Manager, G T EC Board AT TAC H ME N T S: Description Type GTEC Dates 2019 Backup Material Page 53 of 61 GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION (GTEC) Meeting Schedule March 2019 – February 2020 All Regular Meetings will be held on the third Wednesday of every month at 3:30 p.m. at the Georgetown Municipal Complex, located at 300-1 Industrial Avenue. Please contact Emily Koontz at 512-930-6556 if you have any questions regarding meeting dates or times. MARCH 20, 2019 APRIL 17, 2019 MAY 15, 2019 JUNE 19, 2019 JULY 17, 2019 AUGUST 21, 2019 SEPTEMBER 18, 2019 OCTOBER 16, 2019 NOVEMBER 20, 2019 DECEMBER 18, 2019 JANUARY 15, 2020 FEBRUARY 19, 2020 Page 54 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: C onsideration and pos s ible approval of the minutes from the F ebruary 20, 2019 G T EC Board Meeting. -- David Morgan - G eneral Manager, G T EC Board IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan - G eneral Manager, G T EC Board AT TAC H ME N T S: Description Type GTEC Minutes 02.20.19 Backup Material Page 55 of 61 Minutes of the Meeting of Georgetown Transportation Enhancement Corporation and the Governing Body of the City of Georgetown, Texas Wednesday, February 20, 2019 The Georgetown Transportation Enhancement Corporation of the City of Georgetown, Texas, met on Wednesday, February 20, 2019. Board Members Present: Jay Warren – President, John Hesser – Vice-President, Colin McGahey – Secretary, Al Hajka Board Members Absent: Joe Pondrom, Bob Whetsell, Rachael Jonrowe Staff Present: David Morgan, Laurie Brewer, Jim Briggs, Wesley Wright, Michaela Dollar, Octavio Garza, Ray Miller, Nathan Parras, Emily Koontz Others Present: None Minutes Regular Session: (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order: Meeting was called to order at 3:30 PM by Warren B. Introduction of Visitors: No visitors C. Industry/CAMPO/TxDOT Updates: Miller gave updates. Presentation is included in the packet. D. June 2018 GTEC Updates -- Wesley Wright, P.E., Systems Engineering Director/Michael Hallmark, CIP Manager - Wright gave updates. All updates included in the packet. E. Presentation of Georgetown Transportation Enhancement Corporation preliminary monthly financial reports for October, November and December 2018. Leigh Wallace, Finance Director, COG, Finance Manager, GTEC. Parras gave updates. Reports included in the packet. Warren asked why October was such a huge month and Parras replied that it partly the data center and partly the technology center. Legislative Regular Agenda: Page 56 of 61 F. Consideration and possible approval of the minutes from the GTEC Regular Board Meeting held January 16, 2019. – David Morgan – General Manager, GTEC Board. Motion by Hesser, second by McGahey to approve the minutes as presented – APPROVED 4-0-3 (Pondrom, Whetsell, Jonrowe - absent) G. EXECTUIVE SESSION In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon’s Texas Codes, Annotated, the item listed below will be discussed in closed session and is subject to action in the regular session. Sec. 551.087 Deliberations Regarding Economic Development Negotiations Project Access and Project Big C - Michaela Dollar, Economic Development Director H. Action from Executive Session – Project Access and Project Big C Motion by Hesser, second by Hajka to approve incentives for Project Access as discussed in executive session. APPROVED 4-0-3 (Pondrom, Whetsell, Jonrowe - absent) Motion by Hesser, second by McGahey to approve incentives for Project Big C as discussed in executive session. APPROVED 4-0-3 (Pondrom, Whetsell, Jonrowe - absent) ADJOURNMENT: MOTION by Hesser, second by McGahey to adjourn the meeting. APPROVED 4-0-3 (Pondrom, Whetsell, Jonrowe - absent) Meeting adjourned at 4:12 PM. Adjournment Approved: Attest: _______________________ ________________________ Jay Warren- President Colin McGahey – Secretary _________________________ Emily Koontz – Board Liaison Page 57 of 61 City of Georgetown, Texas Transportation Enhancement Corp April 17, 2019 S UB J E C T: Dis cus s ion and possible ac tio n to recommend to C o uncil a res o lutio n o f the G eorgetown Transportation Enhanc ement C orporatio n autho rizing the b ylaws of the c o rp o ration, c larifying the roles of the G eneral Manager and F inanc e Manager and authorizing tho s e individ uals to d elegate d uties and res ponsibilities . Leigh Wallace, F inanc e Direc tor, C O G , F inance Manager, G T EC . IT E M S UMMARY: T he purpos e of this item is to amend the bylaws of G T EC s o that the G eneral Manager (C ity Manager) and F inance Manager (F inance Director) may apply financ ial proc edures and internal controls cons is tent with other operations of the C ity. T hese controls continue to follow indus try standards, state law and are reviewed by the C ity’s external auditor. T he c urrent language of the bylaws res tric ts the G eneral Manager and F inance Manager from delegating duties . T his means both pos itions are manually receipting invoic es for G T EC ’s major capital projec ts and right of way acquis ition before payment is authorized, in addition to projec t managers , Director, and As s is tant C ity Manager. In future, the approvals will be c onsistent with the C ity’s polic y and procedures on approving invoices. Engineering Department staff, Director and As s is tant C ity Manager will rec eipt for the invoices bas ed on amount. T hes e c hanges to the bylaws will allow for streamlined processing of payments now, as well as in the new financ ial software currently being implemented by the C ity. C ity of G eorgetown Invoic e Approval Limits: Amendments to the bylaws are subject to C ity C ouncil approval. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Leigh Wallace, F inanc e Direc tor, C O G , F inance Manager, G T EC . AT TAC H ME N T S: Description Type Resolution_Bylaws_GTEC Resolution Letter Redline GTEC Bylaws Backup Material Page 58 of 61 {00010307 / v2 / CMCNABB / BOARDS / RES / 12/4/2018} Georgetown Transportation Enhancement Corporation (GTEC) Page 1 Resolution No. __________ Approved: _____________, 2019 RESOLUTION NO. _____________ A RESOLUTION OF THE GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION (GTEC) OF THE CITY OF GEORGETOWN, TEXAS AUTHORIZING THE BYLAWS OF THE CORPORATION CLARIFYING THE DUTIES AND RESPONSIBILITIES OF THE GENERAL MANAGER AND THE FINANCE MANAGER AND AUTHORIZE THOSE INDIVIDUALS TO DELEGATE SUCH DUTIES AND RESPONSIBILITIES TO THOSE RESPONSIBLE FOR THEM. BE IT RESOLVED: Sections 6.01 and 6.02 of the Bylaws are amended to read as follows: Section 6.01 GENERAL MANAGER The City Manager of the City of Georgetown, Texas, shall be the General Manager of the Corporation and be in charge of the properties and affairs of the Corporation, shall administer all work orders, requisitions for payment, purchase orders, contract administration/oversight, and other instruments or activities as prescribed by the Board in the name of the Corporation. The General Manager shall employ such full or part-time employees as are needed to carry out the programs of the Board. These employees shall be employees of the City or another city-authorized entity focused on economic development, and they shall perform those duties as are assigned to them. These employees shall be compensated as prescribed in Article III, Section 3.08 of these Bylaws. The General Manager shall have the authority, and subject to provisions of the City Charter and policies and procedures of the City, to hire, fire, direct, and control the work, as functionally appropriate, of such employees, as well as to delegate such of the General Manager’s responsibility as the General Manager deems appropriate. Section 6.02 FINANCE MANAGER The Finance Manager shall be the City’s Director of Finance & Administration. The Finance Manager shall have the responsibility to see to the handling, custody, and security of all funds and securities of the Corporation in compliance with City of Georgetown’s financial policies. When necessary or proper, the Finance Manager, or designee, shall endorse and sign, on behalf of the Corporation, for collection or issuance, checks, notes and other obligations drawn upon such bank Page 59 of 61 {00010307 / v2 / CMCNABB / BOARDS / RES / 12/4/2018} Georgetown Transportation Enhancement Corporation (GTEC) Page 2 Resolution No. __________ Approved: _____________, 2019 or banks or depositories as shall be designated by the City Council consistent with these Bylaws. The Finance Manager shall see to the entry in the books of the Corporation of full and accurate accounts of all monies received and paid out on account of the Corporation. The Finance Manager shall, at the expense of the Corporation, give such bond for the faithful discharge of the duties in such form and amount as the City Council shall require, by resolution. The Finance Manager shall also coordinate an annual audit of the Corporation’s Financial Statements by an independent outside audit firm approved by the City Council. With approval of the General Manager, the Finance Manager may delegate such of the Finance Manager’s responsibility as the Finance Manager deems appropriate. The Finance Manager shall submit a report to the Board each month, in sufficient detail, of all checks or drafts issued on behalf of the Corporation for the previous month. The Finance Manager shall provide a quarterly financial report to the City Council concerning activities of the Corporation in a format consistent with other financial reports of the City. Except as amended herein, the Bylaws shall remain unchanged. This Resolution shall become effective on the ____ day of _______________, 2019. PASSED AND APPROVED on the _____ day of _________________, 2019. ATTEST: CITY OF GEORGETOWN, TEXAS ______________________________ By: _____________________________ Robyn Densmore, City Secretary Dale Ross, Mayor APPROVED AS TO FORM: ______________________________ Charlie McNabb, City Attorney Page 60 of 61 GTEC Redline: Section 6.01 GENERAL MANAGER The City Manager of the City of Georgetown, Texas, shall be the General Manager of the Corporation and be in general charge of the properties and affairs of the Corporation, shall administer all work orders, requisitions for payment, purchase orders, contract administration/oversight, and other instruments or activities as prescribed by the board Board in the name of the Corporation. The General Manager shall employ such full or part-time employees as are needed to carry out the programs of the boardBoard. These employees shall be employees of the City and or another city- authorized entity focused on economic development, and they shall perform those duties as are assigned to them. These employees shall be compensated as prescribed in Article III, Section 3.09 3.08 of these bylawsBylaws. The General Manager shall have the authority, and subject to provisions of the City Charter and policies- and procedures of the City, to hire, fire, direct, and control the work, as functionally appropriate, of such employees, as well as to delegate such of the General Manager’s responsibility as the General Manager deems appropriate. Section 6.02 FINANCE MANAGER The Finance Manager shall be the City’s Director of Finance & Administration. The Finance Manager shall have the responsibility to see to the handling, custody, and security of all funds and securities of the Corporation in compliance with City of Georgetown’s financial policies. When necessary or proper, the Finance Manager , or designee, shall endorse and sign, on behalf of the Corporation, for collection or issuance, checks, notes and other obligations drawn upon such bank or banks or depositories as shall be designated by the City Council consistent with these bylawsBylaws. The Finance Manager shall see to the entry in the books of the Corporation of full and accurate accounts of all monies received and paid out on account of the Corporation. The Finance Manager shall, at the expense of the Corporation, give such bond for the faithful discharge of the duties in such form and amount as the City Council shall require, by resolution. The Finance Manager shall be an employee of the Cityalso coordinate an annual audit of the Corporation’s Financial Statements by an independent outside audit firm approved by the City Council. With approval of the General Manager, the Finance Manager may delegate such of the Finance Manager’s responsibility as the Finance Manager deems appropriate. The Finance Manager shall periodically submit a report to the boardBoard each month, in sufficient detail, of all checks or drafts issued on behalf of the Corporation for the previous month. The Finance Manager shall provide a quarterly financial report to the City Council concerning activities of the Corporation in a format consistent with other financial reports of the City. Page 61 of 61