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Financial Report for the Fiscal Year Ended September 30, 2018

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Financial Report for the Fiscal Year Ended September 30, 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 CITY OF CORPUS CHRISTI, TEXAS WWW.CCTEXAS.COM This document is formatted for optimal viewing using View>Page Display>Two Page View. CITY OF CORPUS CHRISTI, TEXAS Comprehensive Annual Financial Report For Fiscal Year Ended September 30, 2018 CITY COUNCIL City Manager 6DPXHO³.HLWK´6HOPDQ, Interim Mayor Joe McComb Assistant City Managers Chief Mike Markle, Interim Constance P. Sanchez, CPA, CPM, Interim City Council Members Mark Van Vleck Everett Roy, District 1 Ben Molina, District 2 Director of Financial Services Roland Barrera, District 3 Alma I. Casas, Interim Greg Smith, District 4 Gil Hernandez, District 5 Controller Rudy Garza, Jr., At-Large Judy Sandroussi Paulette Guajardo, At-Large Michael T. Hunter, At-Large Chief Accountant Martha A. Messer, CPA Prepared by the staff of the Financial Services Department Rocky Barrera Eva Barton Adriane Ferraro Teddi Giggy Vicky Glenn, CPA Emily Gonzalez Jason Gooding, CPA David Riggs Tina Samford Rayna Sherman Diana Silguero Judy Villalon, CPA City of Corpus Christi, Texas For the Year Ended September 30, 2018 TABLE OF CONTENTS Exhibit Page Number Number INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 17 City Organizational Chart 18 FINANCIAL SECTION Independent Auditor's Report 19 Management's Discussion and Analysis 23 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 1-A 34 Statement of Activities 1-B 36 Fund Financial Statements Governmental Funds Balance Sheet 2-A 38 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 2-B 41 Statement of Revenues, Expenditures and Changes in Fund Balance 2-C 42 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 2-D 45 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 3 46 Proprietary Funds Statement of Net Position 4-A 48 Statement of Revenues, Expenses and Changes in Net Position 4-B 51 Statement of Cash Flows 4-C 52 Fiduciary Funds Statement of Net Position 5-A 54 Statement of Changes in Fiduciary Net Position 5-B 55 Notes to the Financial Statements Note 1. Summary of Significant Accounting Policies 57 Note 2. Budget Policy and Budgetary Accounting 65 Note 3. Sales Tax Revenue 66 Note 4. Property Taxes 66 Note 5. Cash, Cash Equivalents, and Investments 67 Note 6. Budgetary Data 71 Note 7. Receivables 72 Note 8. Capital Assets 72 Note 9. Employment Retirement Benefits 74 Note 10. Other Postemployment Benefits 80 Note 11. Risk Management 83 Note 12. Operating Leases 84 Note 13. Long-term obligations 85 Note 14. Advance Refundings and Defeasances 93 Note 15. Interfund Transfers, Receivables and Payables 93 Note 16. Fund Deficits 94 Note 17. Conduit Debt Obligations 94 Note 18. Commitments 94 Note 19. Agreement for City Golf Courses 95 Note 20. Segment Information for Enterprise Funds 95 Note 21. Tax Abatements 97 Required Supplementary Information City of Corpus Christi, Texas For the Year Ended September 30, 2018 TABLE OF CONTENTS Exhibit Page Number Number Schedule of Changes in the City's Net Pension Liabilities and Related Ratios - Texas Municipal Retirement System 99 Schedule of Changes in the City's Net Pension Liabilities and Related Ratios - Fire Fighters' Retirement System 100 Schedule of Contributions - Texas Municipal Retirement System 102 Schedule of Contributions - Fire Fighters' Retirement System 104 Schedule of Changes in the City's Total OPEB Liability and Related Ratios 106 Combining and Individual Fund Financial Statements and Schedules Governmental Funds General Fund Balance Sheet 6-A 107 Schedule of Revenues and Other Financing Sources, Compared to Budget 6-B 108 Schedule of Expenditures, Compared to Budget 6-C 114 Debt Service Fund Balance Sheet 7-A 134 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 7-B 135 Non-major Governmental Funds Combining Balance Sheet 8-A 138 Combining Statement of Revenue, Expenditures and Changes in Fund Balances 8-B 139 Special Revenue Funds Combining Balance Sheet 9-A 142 Combining Statement of Revenue, Expenditures and Changes in Fund Balances 9-B 146 Visitors Facilities Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 10 150 Hotel Occupancy Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 11 151 State Hotel Occupancy Tax for Beaches Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 12 152 Public Education and Governmental Cable TV Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 13 153 Development Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 14 154 Redlight Photo Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 15 156 Parking Imrpovement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 16 157 Streets Maintenance Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 17 158 Residential/Local Street Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 18 160 Federal/State Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 19 161 Municipal Court Fees Fund City of Corpus Christi, Texas For the Year Ended September 30, 2018 TABLE OF CONTENTS Exhibit Page Number Number Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 20 162 Local Emergency Planning Committee Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 21 163 Health Medicaid Waiver Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 22 164 Corpus Christi Crime Control and Prevention District Statement of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 23 165 Corpus Christi Business and Job Development Corporation Balance Sheet 24-A 166 Schedule of Revenues, Expenditures and Changes in Fund Balance 24-B 168 Seawall Improvement Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 24-C 170 Arena Facility Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance- Compared to Budget 24-D 171 Economic Development Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 24-E 172 Seawall Debt Service Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 24-F 173 Arena Debt Service Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 24-G 174 Economic Development Debt Service Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 24-H 175 Corpus Christi B Corporation Corpus Christi B Corporation - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 25 176 North Padre Island Development Corporation Balance Sheet 26-A 177 Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 26-B 178 General Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 26-C 179 Reinventment Zone #3 Statement of Revenues, Expenditures and Changes in Fund Balance - Compared to Budget 27 180 Capital Projects Funds Street Capital Projects Funds Balance Sheet 28-A 220 Statement of Revenues, Expenditures and Changes in Fund Balance 28-B 221 Combining Balance Sheet 29-A 222 Combining Statement of Revenues, Expenditure and Changes in Fund Balance 29-B 226 Proprietary Funds Enterprise Funds City of Corpus Christi, Texas For the Year Ended September 30, 2018 TABLE OF CONTENTS Exhibit Page Number Number Utility System Fund Combining Statement of Net Position 30-A 232 Combining Statement of Revenues, Expenses and Changes in Net Position 30-B 235 Combining Statement of Cash Flows 30-C 235 Non-major Proprietary Funds Combining Statement of Net Position 31-A 238 Combining Statement of Revenues, Expenses, and Changes in Net Position 31-B 241 Combining Statement of Cash Flows 31-C 242 Internal Service Funds Combining Statement of Net Position 32-A 246 Combining Statement of Revenues, Expenses and Changes in Net Position 32-B 250 Combining Statement of Cash Flows 32-C 252 Capital Assets Used in the Operation of Governmental Funds Schedule by Source 33-A 257 Schedule by Function and Activity 33-B 258 Schedule of Changes by Function and Activity 33-C 260 STATISTICAL SECTION Net Position by Component 1 264 Changes in Net Position 2 266 Fund Balance of Governmental Funds 3 270 Changes in Fund Balances of Governmental Funds 4 272 General Governmental Tax and Business Fees by Source 5 276 Assessed Value and Estimated Actual Value of Taxable Property 6 277 Property Tax Rates - Direct and Overlapping Governments 7 278 Principal Property Taxpayers 8 280 Property Tax Levies and Collections 9 281 Adopted Tax Rate 10 282 Ratios of Outstanding Debt by Type 11 284 Ratios of General Bonded Debt Outstanding 12 286 Direct and Overlapping Governmental Activities Debt 13 287 Legal Debt Margin Information 14 288 Pledged-Revenue Coverage 15 290 Demographic and Economic Statistics 16 292 Principal Employers 17 293 Full-time Equivalent City Government Employees by Function 18 294 Operating Indicators
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