County of Hidalgo, Texas
Comprehensive Annual Financial Report For the Year Ended December 31, 2004 Prepared by the Office of the County Auditor Raymundo Eufracio, CPA
COUNTY OF HIDALGO, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2004
PREPARED BY: THE OFFICE OF THE COUNTY AUDITOR
RAYMUNDO EUFRACIO,, CPA COUNTY AUDITOR
COUNTY OF HIDALGO, TEXAS Comprehensive Annual Financial Report For the Year Ended December 31, 2004
TABLE OF CONTENTS
Page Exhibit INTRODUCTORY SECTION Letter of Transmittal-County Auditor ...... 1 2003 GFOA Certificate of Achievement ...... 8 Organizational Chart of County ...... 9 Governing Body ...... 10 List of Principal Officials...... 11
FINANCIAL SECTION
Independent Auditors’ Report ...... 12
Management’s Discussion and Analysis (MD&A) ...... 14
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets...... 23 A-1 Statement of Activities ...... 24 A-2
Fund Financial Statements
Governmental Funds Financial Statements Balance Sheet ...... 26 A-3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets...... 28 A-4 Statement of Revenues, Expenditures, and Changes in Fund Balance...... 29 A-5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities………………………………………………………...... 31 A-6 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – General Fund...... 32 A-7 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual – Head Start Program ...... 33 A-8 Proprietary Fund Financial Statements Statement of Net Assets...... 34 A-9 Statement of Revenues, Expenses, and Changes in Fund Net Assets...... 35 A-10 Statement of Cash Flows ...... 36 A-11 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets...... 37 A-12 Statement of Changes in Fiduciary Net Assets ...... 38 A-13
Notes to Basic Financial Statements ...... 39
Page Exhibit Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet-Non-Major Governmental Funds...... 62 B-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance-Non-Major Governmental Funds ...... 63 B-2
Special Revenue Funds: Combining Balance Sheet ...... 64 C-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance...... 76 C-2
Comparative Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Individual Funds):
Road and Bridge, County Wide...... 88 C-3 Road and Bridge Precinct No. 1...... 89 C-4 Road and Bridge Precinct No. 2...... 90 C-5 Road and Bridge Precinct No. 3...... 91 C-6 Road and Bridge Precinct No. 4...... 92 C-7 Parks, County Wide ...... 93 C-8 Parks, Precinct No.1 ...... 94 C-9 Parks, Precinct No.2 ...... 95 C-10 Parks, Precinct No.3 ...... 96 C-11 Parks, Precinct No.4 ...... 97 C-12 Various Officials L.E.O.S.E...... 98 C-13 District Attorney Motor Vehicle Theft ...... 99 C-14 District Attorney Bad Check Processing...... 100 C-15 District Attorney Investigative Fund HB 65...... 101 C-16 Drug Abuse and Rehabilitation Fund...... 102 C-17 Sheriff Investigation Fund...... 103 C-18 Sheriff Investigation Fund HB65...... 104 C-19 Sheriff Federal Sharing US Treasury ...... 105 C-20 Sheriff Federal Sharing Department of Justice ...... 106 C-21 Constable, Precinct 5-Investigation Fund ...... 107 C-22 District Clerk Records Management and Preservation Fund...... 108 C-23 District Clerk Title IV-D...... 109 C-24 County Clerk Records Management and Preservation Fund...... 110 C-25 County Records Management and Preservation Fund ...... 111 C-26 Court Reporter Service Fund...... 112 C-27 Juvenile Delinquency Prevention Fund ...... 113 C-28 Courthouse Security Fund...... 114 C-29 Justice Court Technology Fund...... 115 C-30 Contributions Fund ...... 116 C-31 Tax Assessor/Collector (T.A.C.) Special Vehicle Inventory Fund ...... 117 C-32 Law Library ...... 118 C-33 Youth Village Fund ...... 119 C-34 Hidalgo County Indigent Health Care Fund ...... 120 C-35 Drainage District No. 1...... 121 C-36
Grant Funds: Detail Balance Sheet ...... 122 C-37 Detail Statement of Revenues, Expenditures, and Changes in Fund Balances ...... 130 C-37
Page Exhibit Combining and Individual Fund Statements and Schedules, (Cont.):
Debt Service Funds: Combining Balance Sheet ...... 134 C-38 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance...... 136 C-39 Comparative Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Individual Funds): Notes Payable ...... 140 C-40 Road District No. 5...... 141 C-41 Road District No. 15 ...... 142 C-42 General Obligation Refunding Bonds, Series 1996 ...... 143 C-43 General Obligation Refunding Bonds, Series 1998 ...... 144 C-44 Certificates of Obligation, Series 1998 ...... 145 C-45 Certificates of Obligation, Series 2000 ...... 146 C-46 Certificates of Obligation, Series 2001 ...... 147 C-47 Certificates of Obligation, Series 2002 ...... 148 C-48 Certificates of Obligation, Series 2004 ...... 149 C-49 Drainage District No. 1...... 150 C-50
Capital Projects Funds: Combining Balance Sheet ...... 151 C-51 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance...... 154 C-52
Comparative Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Individual Funds): Capital Outlay Fund...... 157 C-53 Capital Improvements Fund ...... 158 C-54 Colonia Access Program...... 159 C-55 TxDot Projects Fund...... 160 C-56 County Buildings Renovation Fund ...... 161 C-57 Certificates of Obligation, Series 1998 ...... 162 C-58 Certificates of Obligation, Series 2000 ...... 163 C-59 Certificates of Obligation, Series 2001 ...... 164 C-60 Certificates of Obligation, Series 2002 ...... 165 C-61 Certificates of Obligation, Series 2004 ...... 166 C-62 Drainage District No. 1...... 167 C-63
Proprietary Funds: Combining Statement of Net Assets-Nonmajor Enterprise Funds ...... 168 C-64 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets-Nonmajor Enterprise Funds...... 169 C-65 Combing Statement of Cash Flows-Nonmajor Enterprise Funds ...... 170 C-66 Combining Statement of Net Assets-Internal Service Funds...... 171 C-67 Combing Statement of Revenues, Expenses, and Changes in Fund Net Assets-Internal Service Funds ...... 172 C-68 Combining Statement of Cash Flows-Internal Service Funds ...... 173 C-69
Fiduciary Funds: Statement of Fiduciary Net Assets-Affiliated Agencies Employees’ Retirement Pension Plan Funds ...... 174 C-70 Statement of Changes in Fiduciary Net Assets-Pension Trust Funds ...... 175 C-71 Statement of Fiduciary Net Assets-Private-Purpose Trust Funds...... 176 C-72 Statement of Changes in Fiduciary Net Assets-Private-Purpose Trust Funds ...... 177 C-73
Page Exhibit Combining and Individual Fund Statements and Schedules, (Cont.):
Combining Statement of Fiduciary Assets and Liabilities-Agency Funds...... 178 C-74 Combining Statement of Changes in Fiduciary Assets and Liabilities- Agency Funds ...... 182 C-75
Capital Assets Used in the Operation of Governmental Funds Comparative Schedules By Source ...... 186 C-76 Schedule by Function ...... 187 C-77 Schedule of Changes by Function...... 188 C-78
Related Agencies Community Service Agency: Combining Balance Sheet-All Fund Types and Account Groups...... 189 C-79 Combining Balance Sheet-Special Revenue Funds ...... 191 C-80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances-Special Revenue Funds ...... 194 C-81 Statement of Changes in Fiduciary Net Assets-Employees’ Retirement Plan ...... 197 C-82 Schedule of Revenues and Expenditures-Budget and Actual Community Service Block Grant: Contract No. 613042 Allocation #614 ...... 198 C-83 Community Service Block Grant: Contract No. 613042 Allocation #613 ...... 199 C-84 Comprehensive Energy Assistance Program: Contract No. 587042 Allocation #583 ...... 200 C-85 NCS Retired Senior Volunteer Program: Contract No. 02SRWTX035 ...... 201 C-86 NCS Retired Senior Volunteer Program: Contract No. 02SRWTX035 ...... 202 C-87 Community Servi ce Block Grant Migrant: Contract No. 613043 Allocation #613 ...... 203 C-88 Head Start: Combining Balance Sheet-All Fund Types and Account Groups...... 204 C-89 Combining Balance Sheet-Special Revenue Funds ...... 206 C-90 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances-Special Revenue Funds ...... 207 C-91 Combining Statement of Fiduciary Net Assets ...... 208 C-92 Combining Changes in Fiduciary Net Assets-Employees’ Retirement Plan ...... 209 C-93 Schedule of Revenues and Expenditures-Budget and Actual Head Start Program Grant 2004...... 210 C-94 Head Start Program Grant 2003...... 211 C-95 USDA Program Grant: 2003-2004 ...... 212 C-96 USDA Program Grant: 2004-2005 ...... 213 C-97 Urban County: Combining Balance Sheet-All Fund Types and Account Groups...... 214 C-98 Combining Balance Sheet-Special Revenue Funds ...... 216 C-99 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances-Special Revenue Funds ...... 218 C-100 Combining Statement of Fiduciary Net Assts ...... 220 C-101 Statement of Changes in Fiduciary Net Assets-Employees’ Retirement Plan ...... 221 C-102 Schedule of Revenues and Expenditures-Budget and Actual Colonia Fund Program #719023 ...... 222 C-103 Colonia Fund Program #722065 ...... 223 C-104 Colonia Fund Program #723065 ...... 224 C-105 Colonia Fund Program #723013 ...... 225 C-106 Colonia Fund Program #723225 ...... 226 C-107 Colonia Fund Program #723245 ...... 227 C-108
Page Exhibit STATISTICAL SECTION (UNAUDITED)
Taxes: General Governmental Expenditures by Function Last Ten Years...... 228 D-1 General Governmental Revenues By Source Last Ten Years ...... 230 D-2 Property Tax Levy and Reserve For Uncollectible Taxes Fiscal Year 2004 ...... 231 D-3 Property Tax Levies Last Ten Fiscal Years ...... 232 D-4 Delinquent Taxes Receivable Net of Uncollectible (Excludes Rollback Taxes) Last Five Tax Rolls ...... 234 D-5 Hidalgo County Property Tax Levies and Collections Last Ten Fiscal Years ...... 236 D-6 Drainage District No. 1 Property Tax Levies and Collections Last Ten Fiscal Years ...... 238 D-7 Road District No. 5 Property Tax Levies and Collections Last Ten Fiscal Years...... 240 D-8 Hidalgo County Rollback Taxes and Collections Last Ten Fiscal Years ...... 242 D-9 Drainage District No. 1 Rollback Taxes and Collections Last Ten Fiscal Years...... 243 D-10 Road District No. 5 Rollback Taxes and Collections Last Ten Fiscal Years ...... 244 D-11 Hidalgo County Market, Assessed, and Taxable Valuations Last Ten Fiscal Years 245 D-12 Drainage District No. 1 Market, Assessed, and Taxable Valuations Last Ten Fiscal Years ...... 246 D-13 Road District No. 5 Market, Assessed, and Taxable Valuations Last Ten Fiscal Years ...... 247 D-14 Hidalgo County Assessed and Market Value of Property Last Ten Fiscal Years ...... 248 D-15 Drainage District No. 1 Assessed and Market Value of Property Last Ten...... Fiscal Years ...... 249 D-16 Property Tax Rates Last Ten Fiscal Years ...... 250 D-17 Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years .... 251 D-18 Hidalgo County Principal Tax Payers...... 252 D-19 Drainage District No. 1 Principal Tax Payers ...... 253 D-20 Debt Service: Computation of Legal Debt Margin...... 254 D-21 Combined Schedule of Annual Debt Service Requirements Until Maturity All Bonded Debt ...... 255 D-22 Hidalgo County Refunding Bonds-Series 1996 Schedule of Debt Service Requirements Until Maturity ...... 256 D-23 Hidalgo County Refunding Bonds-Series 1998 Schedule of Debt Service Requirements Until Maturity ...... 257 D-24 Hidalgo County Certificate of Obligation-Series 1998 Schedule of Debt Service Requirements Until Maturity ...... 258 D-25 Hidalgo County Certificates of Obligation-Series 2000 Schedule of Debt Service Requirements Until Maturity ...... 259 D-26 Hidalgo County Certificates of Obligation-Series 2001 Schedule of Debt Service Requirements Until Maturity ...... 260 D-27 Hidalgo County Certificates of Obligation-Series 2002 Schedule of Debt Service Requirements Until Maturity ...... 261 D-28 Hidalgo County Certificates of Obligation-Series 2004 Schedule of Debt Service Requirements Until Maturity ...... 262 D-29 Hidalgo County Ratio of Net General Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Years ...... 263 D-30 Drainage District No. 1 Ratio of Net General Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Years ...... 264 D-31 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures Last Ten Fiscal Years ...... 265 D-32 Computation of Direct and Overlapping Bonded Debt General Obligation Bonds...... 266 D-33 Page Exhibit STATISTICAL SECTION (UNAUDITED). (Continued)
Miscellaneous: Demographic Statistics Last Ten Fiscal Years ...... 267 D-34 Property Value, Construction and Bank Deposits ...... 268 D-35 Miscellaneous Statistics ...... 269 D-36 General Fund Ratio of Unreserved Fund Balance to Revenues Last Ten Fiscal Years ...... 271 D-37 Graphs: Building Permits...... 272 D-38 Fixed Assets ...... 273 D-39 Total Investments-County Owned by Fund ...... 274 D-40 Total Investments-Held in Trust by Financial Institution...... 274 D-40
SINGLE AUDIT SECTION Independent Auditors’ Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ...... 275
Independent Auditors’ Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 ...... 277
Independent Auditors’ Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control over Compliance in Accordance with the State of Texas Single Audit Circular ...... 279
Schedule of Expenditures of Federal and State Awards...... 281 D-41
Notes to Schedule of Expenditures of Federal and State Awards ...... 289
Schedule of Findings and Questioned Costs ...... 290
Schedule of Status of Prior Year Findings ...... 297
County Auditor’s Department ...... 303 D-42
This report is available online at http://www.co.hidalgo.tx.us/auditor/Reports.htm
INTRODUCTORY SECTION
County of Hidalgo, Texas Transmittal Letter - For Year Ended December 31, 2004
Burton, McCumber & Cortez, LLP, an independent certified public accounting firm has audited the County of Hidalgo’s financial statements. The goal of the independent audit was to provide reasonable, but not absolute, assurance that the financial statements of the County for the year ended December 31, 2004, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Based on the independent audit performed by our external auditors, they concluded that there was a reasonable basis for rendering an unqualified opinion that the County of Hidalgo’s financial statements for the year ending December 31, 2004, are fairly presented in conformity with generally accepted accounting principles. The independent auditors’ report is presented as the first component of the Financial Section of this report.
Additionally, the County is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget’s Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The mandated “Single Audit” is designed to meet the needs of the federal grantor agencies. Standards governing the Single Audit engagement require the independent auditor to report not only on the fair presentation of the financial statements, but also on the County’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. Their consideration of the internal controls over compliance does not necessarily disclose all matters in the internal control that might be material weakness due to their auditing procedures, which are performed on a test basis. The Single Audit Section is presented in the final section of the annual report.
Generally accepted accounting principles require that management provide a narrative overview and analysis to accompany the basic financial statements in the form of a Management Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction, therewith. The County’s MD&A can be found immediately following the report of the independent auditors.
Hidalgo County Government Profile
Hidalgo County was created in 1852. At the time, the County had an area of about 2,356 square miles. When it was first organized, the County extended as far north as Nueces County. The County is bordered by Cameron and Willacy Counties on the east, Brooks County on the north, Starr County on the west, and the Rio Grande River separates the County from the Republic of Mexico on the south. The county seat is located in the city of Edinburg. The County spans a geographical area of approximately 1,570 square miles. In 2003, the County was the 89th largest county in the nation. In 2004, it had an estimated population of 666,959. Many years ago, this area was considered a rural, agriculture based economy; however, today it is known for its international trade, commercial, retail, office, industrial, medical, retirement, and educational facilities. The County is expected to become the fifth-largest Texas metropolitan area by the year 2040 based on a study done by the Texas State Data Center and Office of the State Demographer.
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County of Hidalgo, Texas Transmittal Letter - For Year Ended December 31, 2004
Of the approximate 22,000 new residents, 12,000 were related to increases in birthrate, 5,400 were from international immigration, and 4,300 relocated from other parts of Texas or the United States (Source: The McAllen Monitor). McAllen, the largest city in the County, was ranked number one in job growth, and number ten among cities with the lowest cost of living in a survey of the top metro areas of the United States (Source: Forbes Magazine 2004). The McAllen-Edinburg-Mission area was ranked one of the best performing metro areas in the United States according to the Milken Institute, which determines this ranking based on long-term and short-term employment growth.
Approximately ten miles south of McAllen is Reynosa, Mexico, the third largest city on the U.S/ Mexican border, which has been one of the most active manufacturing locations in Mexico since 2000. It occupies second place in share of maquiladoras along the Texas-Mexico border. Reynosa had the biggest growth in employment in all the Texas Border in 2004 with 3,608 new employees (Source: INEGI 2004). Currently, there are two international bridges that connect Reynosa to the United States, the McAllen- Hidalgo Bridge and the Pharr-Reynosa Bridge, and a third Bridge, the Anzalduas International Bridge, which is expected to alleviate the congested traffic on the current bridges, is planned.
The governing body of the County is its Commissioners’ Court. The court is composed of five members. One member is the county judge who is elected to a four-year term. The other four members are county commissioners, each elected from a road and bridge precinct to a four-year term. The county judge has no judicial responsibilities; instead, the judge is often referred to as the County’s Chief Executive Officer (CEO) and presides over the Commissioners’ Court meetings.
The Commissioners’ Court serves as the executive branch of county government. Among its duties and responsibilities, the five-member court has exclusive authority over a wide range of areas in the operation of the County’s government. Among them, to name a few, are the approvals of the County’s operating budget and budgetary amendments, setting ad valorem property tax rates, auditing, and directing settlement of all claims against the County. The Commissioners’ Court also determines when propositions to issue bonds will be submitted to the voters.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from a broad perspective of the specific environment in which Hidalgo County operates.
Local Economy
The population in Hidalgo County increased by 60 percent from 1990 to 2003, and this trend is expected to continue. Hidalgo County’s population is expected to make it the fifth largest Texas metropolitan by 2040 according to demographic studies done by Texas State Data Center and Office of the State Demographer, which will place the Hidalgo County metropolitan area right behind the regions of Dallas, Houston, Austin, and San Antonio. It is expected that Hidalgo and Cameron counties will have approximately 2.5 million residents by 2040 (Source: The McAllen Monitor). This expected population growth means that there will be more workers seeking more jobs in the expanding economy.
The McAllen-Edinburg-Pharr MSA grew by more than 145,500 persons since 1990, and its population is projected to exceed 132,000 by 2010. The employment growth in 2004 for the McAllen-Edinburg-Pharr MSA was 4.3 percent compared the state rate of 1.3 percent. There was a 62.3 percent employment change in the McAllen-Edinburg-Mission MSA in 2004. The greatest employment growth by industry in the McAllen-Edinburg-Pharr MSA for 2004 was in the information industry followed by education and health services, financial activities and professional and business services respectively (Source: Real Estate Center-TAMU).
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County of Hidalgo, Texas Transmittal Letter - For Year Ended December 31, 2004
The largest private sector employers in the McAllen-Edinburg-Pharr MSA for 2004 were Convergys Customer Management, Executive Administrative Services, Health Care Unlimited Inc., HEB Grocery Co., Knapp Medical Center, McAllen Hospitals LP, Rio Grande Regional Hospital Inc., Texas State Bank, Texas Visiting Nurse Service Ltd., and Wal-Mart Associate Inc. (Source: Texas Workforce Commission). The fastest growing industries in Hidalgo County are air transportation, investment offices, trusts, computer and data processing services, and functions closely related to banking (Source: Texas Workforce Commission). In 2003, Hidalgo County had a total personal income (TPI), of $9,647,638. This TPI ranked 11th in the state and accounted for 1.5 percent of the state total (Source: The Bureau of Economic Analysis).
Long Term Financial Planning
Inner/Outer Loop Study As the northern-most city in Hidalgo County, Edinburg is positioned to become the gateway for trade from northern suppliers to Mexican maquiladoras with the completion of a proposed Interstate 69 spur through the area. Preliminary expansion into U.S. Highway 281 and the future Interstate 69 began in February 2004. The importance of effective and efficient transportation is a primary concern to the County of Hidalgo. Taking into consideration that Texas accounts for 54 percent of all U.S. merchandise exported to Mexico, NAFTA has provided increased interest as well as a major avenue to facilitate this trade. As it appears, the existing ports along the Texas-Mexico border have become increasingly congested. Hidalgo County Commissioners’ Court recognizes the existing problem with the transportation infrastructure within the County. In this effort, the County proposed to develop a transportation loop. The proposed loop is to be located within a study area that includes a northern-most boundary near FM 490, a western-most boundary near FM 2221, a southern-most boundary near US 83, Military Highway, and an eastern-most boundary near FM 1015/FM 88. The study consists of various route alignments for the proposed roadway project, and the analysis and comparison of each of their overall impact to the environment, existing facilities, established residential areas, floodway encroachments and/or crossing, and the ultimate cost for constructing a controlled access highway. The study is currently undergoing roadway alignment schematics and traffic studies, environmental and public involvement, field surveying and aerial photogrammetry, bridge layouts, roadway route corridor study and traffic studies, and preliminary environmental studies. The estimated time for the completion of the study is 10 years. It is anticipated that the proposed project will be constructed in phases, contingent upon funding availability. It is the County’s intent to secure State and Federal funding sources for the construction of this project
Raymondville Drain Outfall System The development and implementation of Hidalgo County Drainage District No. 1 Master Drainage System Phase II for the design and expansion of the Raymondville Drain Outfall System involves advance planning, preliminary engineering and design, final design and plans, specifications, and estimates (PS&E), right of way map preparation, and construction of proposed improvements. The proposed improvements include approximately 12.0 miles of new storage channel/ditch facilities, as well as the widening of 48.0 miles of existing channels/ditches. In addition, the “La Sal Vieja Lake” will serve as a storage pond in order to facilitate drainage of the expanded Raymondville Drain Outfall System. Also included along the drainage outfall system are the proposed improvements involving associated facilities such as bridges, culverts, headwalls, utility crossings, and down drains.
This project is located in both Hidalgo and Willacy Counties. Its limits start on the east side of Lake Edinburg where the new storage ditch will drain north for about 4.0 miles, then east for 8.0 miles toward the existing West Hargill Drain. At this point, the project involves widening of the existing West Hargill Drain, which spans 11.0 miles where it connects to the existing Raymondville Drain and the “La Sal Vieja Lake” Ditch. At this connection point, Raymondville Drain, as well as the “La Sal Vieja Lake” Ditch, will be widened, where widening along the exiting Raymondville Drain will span approximately 33.0 miles to the Laguna Madre, the final outfall point.
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County of Hidalgo, Texas Transmittal Letter - For Year Ended December 31, 2004
The County has expensed approximately $3.5 million out of the $5 million earmarked for this project out of the Certificates of Obligation, Series 2002. This project is currently undergoing the preparation of the environmental documentation, field surveying, mapping, preliminary right of way and real estate studies, hydrological/hydraulic analysis and economic studies, plan formulation, and the study and design of the southern watersheds. It is the County’s intent to secure State-funding sources to complete this project.
New Juvenile Detention Center Hidalgo County has had a need for a new juvenile detention center since 1998 when the Rudy de la Vina Juvenile Detention Center was operating beyond its maximum capacity of 28 juveniles. Preliminary plans and studies for a new center have been in place since 2001. The County has allocated $16,783,000 for the construction of a center from the Certificates of Obligation, Series 2004. The new center will consist of six one-story detention pods with 16 beds per pod with a total of 96 beds. The construction of the new center is scheduled to begin in the summer of 2005. The expected completion date of the new center is June of 2007.
10th Street Extension The 10th Street extension project, which will expand North Tenth Street from FM107 to Monte Cristo Road in Edinburg, is finally in progress. The schematic studies and environmental assessment phases of this project have been completed. Once this project is completed, Edinburg residents will have better access to the newly developed shopping center and other locations in north McAllen.
K-Mart Property In an effort to expand its facilities to accommodate its rapid growing population, the County issued Tax Notes, Series 2004, in the amount of $2.8 million for the acquisition and renovation of the property formally known as the K-Mart property. The County paid approximately $1.7 million for the property, and expects to pay approximately $1.9 million for the renovation of the property. The County plans to relocate the following offices to the new facility: Tax Office, Auditor’s Office, Treasurer’s Office, Purchasing Department, Budget Office, Human Resources, Veterans Office, Fire Marshal, Information Technology Department and Security. The renovation of this facility is expected to begin in the fall of 2005.
TXDOT Projects The County and the Texas Department of Transportation (TXDOT) entered into various interlocal agreements in 2004 in efforts to create an efficient transportation system for the growing population. The objective of these agreements is to authorize transportation programs to meet the challenges of protecting and enhancing communities and the natural environment and advancing the nation’s economic growth, to establish federally funded programs for transportation improvements, and to construct and operate a system of highways in cooperation with local governments. Some of these agreements call for partial reimbursement from TXDOT for the rehabilitation of County and State roads, while others call for full reimbursement. The total amount expensed in connection with these interlocal agreements in 2004 was $1,414,047, which consisted of eighteen projects. The expected reimbursement from TXDOT totaled $205,415 as of December 31, 2004.
Various The Texas Commission on Environmental Quality (TCEQ) approved the final cap & closure phase of the Precinct Number Four landfill in December 2004. The closure documentation and the 30-year post closure monitoring required by the TCEQ will be initiated in 2005. The County has contracted the post closure monitoring with a local vendor for the next five-years. This monitoring will cost the County approximately $28,000 annually for the next two years and $30,000 for the following three years.
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County of Hidalgo, Texas Transmittal Letter - For Year Ended December 31, 2004
The North San Juan Alamo Park is approximately 25% complete with the park infrastructure fully completed and the construction of the parking lot to be initiated in the Spring of 2005. The expected park volleyball completion date is scheduled for August of 2005. This park will provide the public with baseball fields, volleyball courts, BBQ pits, and a jogging track. The estimated cost of this project is $1 million, which includes a $500,000 grant received from the Parks and Wildlife Department for the housing and maintaining of a wildlife refuge.
The Sub-Station Remodeling Project, which was performed to remodel the jail located in the basement of the County courthouse, is complete. Commissioners’ Court has approved the construction of the Sally Port to be accessed by the Sheriff’s Department to safely transport inmates to the courthouse jail. The expected completion date is the Summer of 2005.
Internal Controls Management of the County of Hidalgo is responsible for the establishment and maintenance of internal accounting controls that have been designed to ensure assets are safeguarded and financial transactions are properly recorded and adequately documented. Such internal controls require estimates and judgments from management so that, in attaining reasonable assurance as to the adequacy of such controls, the cost does not exceed the benefit obtained.
Budget and Fiscal Policy As a sound financial management practice, members of the Commissioners’ Court consistently emphasize maintaining sufficient undesignated fund balance levels to meet obligations of payroll and operating costs, thus assisting in maintaining financial stability for retaining or enhancing the County’s bond ratings. Thus, the County strives to maintain a general fund reserve of at least ten percent of the annual general fund budgeted appropriations, since the general fund is the County’s main operating fund.
Cash Management The County invests its funds in investments authorized by Texas laws in accordance with investment policies approved by the Commissioners’ Court. Under Texas law, the County is required to invest its funds to primarily emphasize safety of principal and liquidity. Interest income in 2004 amounted to $3,377,926 an increase of $549,442 or 19.4 percent over the previous year’s total of $2,828,484.
Capital Assets The government-wide financial statements include the capital assets of the County. A discussion of capital assets accounting is included in the MD&A Section that is part of the basic financial statements. More detailed information about the capital assets can be found in the notes to the financial statements.
Debt Administration General obligation bonds are issued pursuant to the Constitution and general laws of the State of Texas, and constitute direct obligations of the County. Principal and interest due from the proceeds are from a continuing, direct ad valorem tax levied against all taxable property within the County. Current general obligation bonds of the County are rated “Aaa” by Moody’s Investors Services and “AAA” by both Standards and Poor (“S&P”) and Fitch Ratings (“Fitch”). The County also has several issues outstanding, which are rated “Aaa” by Moody’s and “AAA” by S&P and Fitch.
Risk Management and Insurance The Commissioners’ Court provides for a Risk Manager who is primarily responsible for identifying and assessing the County’s exposure to all types of risk, and recommending the safest and most cost effective methods to eliminate or reduce the identified risks. In July of 2003, the County established a
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COUNTY OF HIDALGO, TEXAS
GOVERNING BODY
DECEMBER 31, 2004
County Judge Ramon Garcia ...... Chairman
Commissioner Sylvia Handy ...... Member
Commissioner Hector Palacios ...... Member
Commissioner Jose M. Flores ...... Member
Commissioner Oscar L. Garza...... Member
10 COUNTY OF HIDALGO, TEXAS PRINCIPAL OFFICIALS DECEMBER 31, 2004 Edward G. Aparicio...... Judge, 92nd Judicial District of Texas
Rodolfo Delgado ...... Judge, 93rd Judicial District of Texas
Ernest Aliseda ...... Judge, 139th Judicial District of Texas
Rose G. Reyna ...... Judge, 206th Judicial District of Texas
Juan R. Partida ...... Judge, 275th Judicial District of Texas
Mario E. Ramirez, Jr...... Judge, 332nd Judicial District of Texas
Noe Gonzalez ...... Judge, 370th Judicial District of Texas
Leticia Lopez ...... Judge, 389th Judicial District of Texas
Aida S. Flores ...... Judge, 398th Judicial District of Texas
Rodolfo Gonzalez ...... Judge, County Court-at-Law No. 1
Jaime Palacios...... Judge, County Court-at-Law No. 2
Homero Garza...... Judge, County Court-at-Law No. 3
Fred S. Garza, Jr...... Judge, County Court-at-Law No. 4
Arnoldo Cantu...... Judge, County Court-at-Law No. 5
Ramon Garcia...... County Judge
Sylvia Handy ...... Commissioner, Precinct No. 1
Hector Palacios...... Commissioner, Precinct No. 2
Jose M. Flores ...... Commissioner, Precinct No. 3
Oscar L. Garza, Jr...... Commissioner, Precinct No. 4
J. D. Salinas ...... County Clerk
Armando Barrera, Jr...... Tax Assessor/Collector
Omar Guerrero ...... District Clerk
Guadalupe Trevino ...... County Sheriff
Norma G. Garcia ...... County Treasurer
Rene A. Guerra ...... District Attorney
Antonio R. Sandoval...... County Auditor*
*Raymundo Eufracio, CPA was appointed County Auditor on February 2005
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INDEPENDENT AUDITORS’ REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
Management’s Discussion and Analysis
As management of the County of Hidalgo (the County), we offer readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended December 31, 2004. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-6 of this report.
Financial Highlights
• The County’s combined assets from governmental and business-type activities exceeded its liabilities at the close of the most recent fiscal year by $248,070,089 (net assets). Of this amount, $42,987,176 (unrestricted net assets) may be used to meet the County’s ongoing obligations to citizens and creditors.
• The County’s total net assets increased by $24,346,507 (11 percent). Approximately 96 percent of the increase is attributable to governmental activities and 4 percent to business-type activities.
• As of the close of the current fiscal year, the County’s governmental funds reported combined ending fund balances of $82,364,708, an increase of $30,213,187 in comparison with the prior year. Approximately 96 percent of this total amount, $79,213,388, is available for spending at the County’s discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was $13,453,401, or 14 percent of total general fund expenditures and transfers out.
• The County’s total debt increased by $30,637,641 (29 percent) during the current fiscal year. The key factor in this increase was the issuance of $32,250,000 in certificates of obligation to fund construction of a juvenile justice center, right of way acquisition, road improvements and related drainage, landfill improvements, equipment acquisition (including voting equipment), repair and renovation of county facilities, and the payment of related professional services.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Hidalgo County’s basic financial statements. The County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets are one indicator of whether the financial position of the County is improving or deteriorating.
The statement of activities presents information showing how the County’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes).
Both of the government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that
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are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities). The governmental activities of the County include general government, public safety, highways and streets, sanitation, drainage, health and welfare, culture and recreation, conservation, and urban and economic development. The business-type activities of the County include the landfill and the jail commissary.
The government-wide financial statements include not only the County itself (known as the primary government), but also Hidalgo County Drainage District No. 1, a legally separate drainage district, for which the County is financially accountable. Although legally separate, the drainage district’s governing body is the same as the governing body of the County and, therefore, has been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 23-25 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The County of Hidalgo maintains multiple individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the Head Start Program special revenue fund, and the Certificates of Obligation, Series 2004 capital projects fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The County adopts an annual appropriated budget for its governmental funds, with the exception of grant- funded special revenue funds and capital projects funds. A budgetary comparison has been provided for these funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 26-33 of this report.
Proprietary funds. The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for sanitary landfill services and the jail commissary. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County’s various functions. The County uses an internal service fund to account for its risk financing activities related to workers’ compensation. Because this service predominantly benefits
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governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Both enterprise funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the enterprise funds is provided in the form of combining statements in this report.
The basic proprietary fund financial statements can be found on pages 34-36 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on pages 37-38 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39-61 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents combining and individual fund statements and schedules, which begin on page 62 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $248,070,089 at the close of the most recent fiscal year.
By far the largest portion of the County’s net assets (73 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
County of Hidalgo, Texas Net Assets Governmental activities Business-type activities Total 2004 2003 2004 2003 2004 2003 Current and other assets$ 242,362,740 $ 190,940,718 $ 1,276,391 $ 1,121,702 $ 243,639,131 $ 192,062,420 Capital assets 271,991,217 257,203,054 1,010,993 1,011,834 273,002,210 258,214,888 Total assets 514,353,957 448,143,772 2,287,384 2,133,536 516,641,341 450,277,308
Long-term liabilities 147,294,916 111,103,158 1,523,794 2,425,638 148,818,710 113,528,796 Other liabilities 119,732,240 113,003,778 20,302 21,152 119,752,542 113,024,930 Total liabilities 267,027,156 224,106,936 1,544,096 2,446,790 268,571,252 226,553,726
Net Assets: Invested in capital assets, net of related debt 178,869,482 170,325,906 1,010,993 1,011,834 179,880,475 171,337,740 Restricted 25,135,536 23,637,349 66,902 66,902 25,202,438 23,704,251 Unrestricted 43,321,783 30,073,581 (334,607) (1,391,990) 42,987,176 28,681,591 Total net assets$ 247,326,801 $ 224,036,836 $ 743,288 $ (313,254) $ 248,070,089 $ 223,723,582 16
An additional portion of the County’s net assets (10 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($42,987,176) may be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the County is able to report positive balances in all three categories of net assets for the government as a whole, as well as for its governmental activities. The same situation held true for the prior fiscal year.
There was an increase of $1,056,542 in net assets reported in connection with the County’s business- type activities. This increase resulted from the removal of the Precinct Four landfill closure cost liability that was paid with funds from Series 2002, Certificates of Obligation.
The County’s net assets increased by $24,346,507 during the current fiscal year. This increase represents the degree to which increases in ongoing revenues have outstripped similar increases in ongoing expenses. Overall revenue increased by $23,979,701 (11 percent) of which 84 percent represents increases in property taxes. Expenses increased by $16,540,090 (9 percent). Increases in expenses are attributable to increases in the following functions: general government ($5,361,465), public safety ($2,888,649), highways and streets ($3,404,547), and health and welfare ($5,293,454).
Governmental activities. Governmental activities increased the County’s net assets by $25,319,810, thereby accounting for 96 percent of the total growth in the net assets of the County. Key elements of this increase are as follows:
County of Hidalgo, Texas Changes in Net Assets Governmental activities Business-type activities Total 2004 2003 2004 2003 2004 2003 Revenues: Program revenues: Charges for services $ 23,676,823 $ 24,694,949 $ 938,406 $ 804,915 $ 24,615,229 $ 25,499,864 Operating grants and contributions 87,892,298 84,559,482 - 87,892,298 84,559,482 Capital grants and contributions - 1,054,215 512,710 1,054,215 512,710 General revenues: Property taxes 116,851,709 96,751,927 - - 116,851,709 96,751,927 Other taxes 954,825 856,163 - - 954,825 856,163 Grants and contributions not restricted to specific programs 827,492 940,581 - - 827,492 940,581 Other 5,162,009 4,259,200 22,555 20,704 5,184,564 4,279,904 Total revenues 235,365,156 212,062,302 2,015,176 1,338,329 237,380,332 213,400,631
Expenses: General government 44,930,767 39,569,302 - - 44,930,767 39,569,302 Public safety 56,124,290 53,235,641 - - 56,124,290 53,235,641 Highways and streets 12,700,539 9,295,992 - - 12,700,539 9,295,992 Sanitation 4,442,685 2,331,373 - - 4,442,685 2,331,373 Drainage 4,281,002 6,918,506 - - 4,281,002 6,918,506 Health and welfare 66,517,299 61,223,845 - - 66,517,299 61,223,845 Culture-recreation 2,151,443 1,950,114 - - 2,151,443 1,950,114 Conservation of natural resources 440,338 478,234 - - 440,338 478,234 Urban and economic development 12,894,902 12,409,772 - - 12,894,902 12,409,772 Interest on long-term debt 5,562,081 5,326,602 - - 5,562,081 5,326,602 Sanitary landfill - - 149,381 1,048,475 149,381 1,048,475 Jail commisary - - 809,253 676,034 809,253 676,034 Total expenses 210,045,346 192,739,381 958,634 1,724,509 211,003,980 194,463,890 Increase (decrease) in net assets 25,319,810 19,322,921 1,056,542 (386,180) 26,376,352 18,936,741 Net assets-beginning (restated) 222,006,991 204,713,915 (313,254) 72,926 221,693,737 204,786,841 Net assets-ending$ 247,326,801 $ 224,036,836 $ 743,288 $ (313,254) $ 248,070,089 $ 223,723,582
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• Property taxes increased by $20,099,782 (21 percent) during the year. This increase is due to increases in assessed property values. • Operating grants for governmental activities increased by $3,332,816 (4 percent) mostly as a result of the Border Colonia Access Program. During the current fiscal year, the planning phase was completed and construction of colonia access roads began. • Charges for services declined by $1,018,126 mostly due to decreases in commissions and costs and assessing fees. In previous fiscal years, these revenues were offset by an equal amount of expenditures. These revenues and expenditures were not recognized during the current fiscal year.
Expenses and Program Revenues - Governmental Activities expenses program revenues 70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
- General Public safety Highways and Sanitation Drainage Health and Culture- Conservation Urban and Interest on government streets welfare recreation of natural economic long-term debt resources development
Revenues by Source - Governmental Activities
Property taxes Other taxes 49.65% 0.41% Unrestricted grants and contributions 0.35% Other 2.19%
Charges for services 10.06%
Operating grants and contributions 37.34%
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Expenses within governmental activities increased $17,305,965 or 9 percent from the previous fiscal year. This increase is largely due to a 5 percent increase in salaries across the board approved by Commissioners’ Court for the current fiscal year. Other key elements of this increase are as follows:
• Expenses for public defense increased by $1,572,234. • Expenses for elections increased by $944,198 during fiscal year 2004 because of the primary and general elections. • Expenses for sanitation increased by $2,111,312. • Expenses of the County Indigent Health Care Program increased by $5,637,020 during the current fiscal year. The County is required to spend 8 percent of the Aggregate General Revenue Tax Levy (AGRTL) prior to being eligible to receive 90 percent reimbursement on expenses. During year 2003, the County met the 8 percent cap and was eligible for 90 percent reimbursement early in the year. The County limited its indigent health care expenditures to the state’s allocation for the remainder of the year. Additionally, due to an increase in assessed property values, the AGRTL was higher in 2004 than in 2003.
Business-type activities. Business-type activities increased the County’s net assets by $1,056,542, accounting for 4 percent of the total growth in the County’s net assets. Key elements of this increase are as follows:
Capital grants and contributions increased by $541,505 during the current fiscal year. This increase reflects the use of proceeds from the Certificates of Obligation, Series 2002 to pay for the closure cost liabilities reported in the landfill services enterprise fund related to the Precinct 4 landfill.
Charges for services increased by $133,491 (17 percent), which reflects increased sales in the jail commissary. This increase was offset by an increase in the jail commissary expenses of $133,219.
Financial Analysis of the County’s Funds
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
Governmental funds. The focus of the County’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the County’s governmental funds reported combined ending fund balances of $82,364,708, an increase of $30,213,187 over the prior year. Approximately 96 percent of this total amount ($79,213,388) constitutes unreserved fund balance, which is available for spending at the County’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed for a variety of restricted purposes.
The general fund is the chief operating fund of the County. At the end of the current fiscal year, the unreserved fund balance of the general fund was $13,453,401, while total fund balance reached $16,208,906. As a measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 14 percent of total general fund expenditures and transfers out, while total fund balance represents 17 percent of that same amount.
During the current fiscal year, the fund balance of the County’s general fund increased by $4,707,468. Key factors in this growth are as follows:
• An increase in assessed property values (8 percent) increased tax revenues by $7,912,081 over the previous fiscal year.
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• While expenditures and transfers grew 14 percent over the previous fiscal year, they did not exceed total revenues.
During September of 2004, the County issued $32,250,000 in certificates of obligation, which were accounted for in a capital projects fund. The certificates of obligation were issued at a premium ($1,549,211). Interest earnings for the current fiscal year were $274,470. Only $615,471 of the funds were spent for issuance costs and various County and TXDOT road projects. The fund balance of the Certificates of Obligation, Series 2004 capital projects fund at the end of the year was $33,458,211.
The County Indigent Health Care Program (CIHCP) fund has a total fund balance of $5,816. The net decrease in fund balance during the current year in the CIHCP fund was $2,497,152. This decrease is attributable to a decrease in intergovernmental revenues of $613,439 and an increase in indigent health care expenditures of $5,637,021.
Proprietary funds. The County’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
Unrestricted net assets of the sanitary landfill at the end of the year amounted to -$774,188, and those for the jail commissary operation amounted to $439,581. The total growth in net assets for both funds was $923,927 and $132,615, respectively. Other factors concerning the finances of these two funds have already been addressed in the discussion of the County’s business-type activities.
General Fund Budgetary Highlights
During the year there was a $1,074,879 increase in appropriations between the original and final amended budget. Following are the key components of the increase:
• $1,547,924 increase in general government activities was due in part to an increase of $1,767,793 in the Public Defense budget to cover legal services. • $2,114,818 decrease in public safety activities. This decrease is mainly attributable to a decrease of $2,805,943 in the Jail budget for boarding of prisoners. • $906,138 increase in sanitation activities was due to supplemental appropriations to Precinct 1 for trash disposal services, Precinct 2 for the purchase of vehicles, Precinct 3 for engineering services, and Precinct 4 for the purchase of vehicles and heavy equipment from note proceeds. • $267,811 increase in health and welfare activities was due to supplemental appropriations to the Health Department to fund a projected budget shortfall. • $149,401 increase in urban and economic development activities was due to a supplemental appropriation needed for the City of Mission Tax Increment Fund. • $319,156 increase in transfers out to various special revenue funds.
The increase was possible because of additional anticipated revenues and projected surpluses in salaries and fringe benefit accounts and various operating accounts.
Actual revenues exceeded budgetary estimates by $2,182,126. This increase is attributable to an upturn in property tax revenues ($1,124,309), an increase in intergovernmental revenues ($173,465), an increase in various user charges ($180,143), and greater investment income ($168,720). Expenditures were $4,362,741 less than budgetary estimates mostly due to surpluses in general government activities ($1,306,998) and public safety activities ($1,918,201).
Capital Asset and Debt Administration
Capital assets. The County’s investment in capital assets for its governmental and business-type activities as of December 31, 2004, amounts to $273,002,210 (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, machinery and
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equipment, park facilities, roads, and bridges. The total increase in the County’s investment in capital assets for the current fiscal year was 6 percent. This increase is attributable to governmental activities.
Major capital asset events during the current fiscal year included the following:
• Purchase of the Kmart Property to house various administrative offices. • Completion of the Law Enforcement shooting range canopy, shooting range berm, and parking facility. • Completion of the Precinct 3 multi-purpose center. • Completion of the final cover for the Precinct 4 landfill. • Construction began on a variety of road construction projects for the Texas Department of Transportation.
County of Hidalgo, Texas Capital Assets (net of depreciation) Governmental activities Business-type activities Total 2004 2003 2004 2003 2004 2003 Land $ 28,621,889 $ 27,544,246 $ 1,001,093 $ 1,001,093 $ 29,622,982 $ 28,545,339 Buildings and systems 72,375,292 66,288,753 - - 72,375,292 66,288,753 Improvements other than buildings 4,831,011 5,774,305 - - 4,831,011 5,774,305 Machinery and equipment 19,545,631 17,957,323 9,900 10,741 19,555,531 17,968,064 Infrastructure 145,023,200 133,850,343 - - 145,023,200 133,850,343 Construction in progress 1,594,194 5,788,084 - - 1,594,194 5,788,084 Total $ 271,991,217 $ 257,203,054 $ 1,010,993 $ 1,011,834 $ 273,002,210 $ 258,214,888
Additional information about the County’s capital assets can be found in the notes to the financial statements.
Long-term debt. At the end of the current fiscal year, the County had total bonded debt outstanding of $132,560,000. This debt is backed by the full faith and credit of the government. Additionally, the County had notes payable totaling $4,013,692. This table excludes unamortized premiums, unamortized discounts, and deferred amounts on refundings.
County of Hidalgo, Texas General Obligation Bonds and Notes Outstanding Governmental activities Business-type activities Total 2004 2003 2004 2003 2004 2003 Refunding bonds$ 4,310,000 $ 5,510,000 $ - $ - $ 4,310,000 $ 5,510,000 Certificates of obligation 125,000,000 95,180,000 - - 125,000,000 95,180,000 Tax notes 3,250,000 600,000 - 3,250,000 600,000 Notes 938,692 1,366,050 - - 938,692 1,366,050 Notes-Urban County 3,075,000 3,280,000 - - 3,075,000 3,280,000 Total $ 136,573,692 $ 105,936,050 $ - $ - $ 136,573,692 $ 105,936,050
The County’s debt increased by $30,637,642 (29 percent) during the current fiscal year. The key factor in this increase was the issuance of $32,250,000 in certificates of obligation to fund construction of a juvenile justice center, right of way acquisition, road improvements and related drainage, landfill improvements, equipment acquisition (including voting equipment), repair and renovation of county facilities, and the payment of related professional services.
The County’s Certificates of Obligation, Series 2004 were assigned an “A” rating by both Standard & Poor’s and Fitch Ratings. Moody’s Investors Service upgraded to “A2” from “A3” the County’s rating,
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sighting improved financial operations, a substantial and increasing taxable value, and modest debt ratios.
The County also issued $2,800,000 of tax notes to pay for the purchase of the property formerly known as the “K-Mart Building” and improvements thereon, which property is to be used by the County to house various administrative offices.
State statutes limit the amount of general obligation debt that the County may issue to 25% of its total assessed valuation. The County’s general obligation debt is significantly below the $4.6 billion debt limitation.
Additional information about the County’s long-term debt can be found in the notes to the financial statements.
Economic Factors and Next Year’s Budgets and Rates
The following factors were considered in preparing the County’s budget for the 2005 fiscal year:
• According to the Texas Workforce Commission, the unemployment rate for the County of Hidalgo is currently 9.7 percent, compared to 10.7 percent a year ago. This compares unfavorably to the state’s average unemployment rate of 6.2 percent and the national average rate of 5.7 percent. • Assessed property values have averaged 8 percent growth over the past 9 years. • The ad valorem property tax rate was increased to $0.5007, $0.5195 and $0.5900 in fiscal years 2001, 2002 and 2003, respectively, in order to align revenues with expenditures. For fiscal year 2004, the ad valorem property tax rate remained at $0.5900 per $100 assessed valuation. • Unreserved fund balance of the general fund experienced a downward trend from 2000 to 2002. In order to overcome this downward trend, the Court increased the tax rate by 13.6 percent for 2003.
During the current fiscal year, unreserved fund balance in the general fund increased to $13,453,401. The County has appropriated $5,907,229 of this amount for spending in the 2005 fiscal year budget. It is intended that this use of available fund balance will avoid the need to raise taxes or charges during the 2005 fiscal year.
The County’s 2005 adopted budget for the general fund includes estimated revenues of $105,357,074, an increase of approximately 5 percent over 2004 actual revenues. This increase is attributed to property taxes, which benefited from increases in assessed valuations. The County will use these increases in revenues to finance programs currently offered. Budgeted expenditures for 2005 total $111,264,303, an increase of approximately 17 percent over 2004 actual expenditures. This increase is mainly attributed to the following budget increases: $511,277 for the District Attorney, $375,688 for the IT Department, $356,681 for the contingency account, $2,430,000 for County-wide Administration, $684,997 for the Tax Assessor-Collector, $621,450 for the County Clerk, $1,576,955 for the Sheriff, $4,413,112 for the Jail, $612,278 for the Health Department, and $2,780,108 in transfers out. The County has added no major new programs or initiatives to the 2005 budget.
If these estimates are realized, the County’s general fund balance is expected to decrease 44 percent to $7,546,172 by the close of 2005.
Requests for Information
This financial report is designed to provide a general overview of the County’s finances for all those interested. Questions concerning any of the information provided in this report or questions for additional financial information should be addressed to the Office of the Hidalgo County Auditor, 100 East Cano, Administration Building 3rd Floor, Edinburg, Texas 78539.
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BASIC FINANCIAL STATEMENTS
COUNTY OF HIDALGO, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2004
Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental activities: General government $ 44,930,767 $ 10,240,283 $ 1,754,698 $ - Public safety 56,124,290 1,538,569 15,624,744 - Highways and streets 12,700,539 11,519,878 6,046,631 - Sanitation 4,442,685 - - - Drainage flood control 4,281,002 93,750 - - Health and welfare 66,517,299 236,415 51,567,080 - Culture-recreation 2,151,443 47,928 - - Conservation of natural resources 440,338 - - - Urban and economic development 12,894,902 - 12,899,145 - Interest on long-term debt 5,562,081 - - - Total governmental activites 210,045,346 23,676,823 87,892,298 -
Business-type activities: Sanitary Landfill & Resource 149,381 - - 1,054,215 Jail Commissary 809,253 938,406 - - Total business-type activities 958,634 938,406 - 1,054,215 Total primary government $ 211,003,980 $ 24,615,229 $ 87,892,298 $ 1,054,215
General Revenues: Property taxes State mix drink tax Bingo tax Grants and contributions not restricted to specific programs Interest earnings Miscellaneous Gain on Sale of Capital Assets Total general revenues Change in net assets Net assets - beginning Prior period adjustment Net assets - ending
The accompanying notes are an integral part of this statement.
24 EXHIBIT A-2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business-type Activities Activities Total
$ (32,935,786) $ (32,935,786) (38,960,977) (38,960,977) 4,865,970 4,865,970 (4,442,685) (4,442,685) (4,187,252) (4,187,252) (14,713,804) (14,713,804) (2,103,515) (2,103,515) (440,338) (440,338) 4,243 4,243 (5,562,081) (5,562,081) (98,476,225) (98,476,225)
- $ 904,834 904,834 - 129,153 129,153 - 1,033,987 1,033,987 (98,476,225) 1,033,987 (97,442,238)
116,851,709 - 116,851,709 625,821 - 625,821 329,004 - 329,004 827,492 - 827,492 3,240,830 22,555 3,263,385 1,855,910 - 1,855,910 65,269 - 65,269 123,796,035 22,555 123,818,590 25,319,810 1,056,542 26,376,352 224,036,836 (313,254) 223,723,582 (2,029,845) - (2,029,845) $ 247,326,801 $ 743,288 $ 248,070,089
25 COUNTY OF HIDALGO, TEXAS BALANCE SHEET - GOVERNMENTAL FUNDS DECEMBER 31, 2004
Special Revenue Fund Head General Start Fund Program ASSETS Cash $ 11,276,224 $ - Investments, plus accrued interest 46,577,507 - Receivables (net of allowance for uncollectibles) Taxes 72,614,277 - Accounts 269,591 880 Other - 4,259 Due from other funds 94,994 219,961 Due from other governments 130,351 1,151,231 Due from others 25,453 - Advances to other funds 52,555 - Inventories 24,758 - Prepaids 7,280 67,271 Other assets 10,000 - Total assets $ 131,082,990 $ 1,443,602
LIABILITIES AND FUND BALANCES Liabilities: Bank overdraft $ - $ 130,918 Accounts payable 4,280,073 218,211 Salaries and benefits payable 1,012,444 857,164 Arbitrage payable - - Retainage payable 4,200 - Notes payable - short-term - - Due to other funds 4,837,699 219,961 Due to other governments 1,164,650 - Due to others 224,430 - Deferred revenues 103,049,180 15,078 Held in escrow 296,976 - Undistributed receipts 4,432 - Total liabilities 114,874,084 1,441,332
Fund balances: Reserved for: Other committments 150,000 - Inventory 24,759 - Advances to other funds 52,555 - Contingencies - - Restricted revenues 1,587,481 - Grant cash match 940,710 - TXDOT cash match - - Unreserved, reported in: General fund 13,453,401 - Special revenue funds - 2,270 Debt service funds - - Capital projects funds - - Total fund balances 16,208,906 2,270
Total liabilities and fund balances $ 131,082,990 $ 1,443,602
The accompanying notes are an integral part of this statement.
26 EXHIBIT A-3
Capital Projects Fund Certificates of Other Total Obligation Governmental Governmental Series 2004 Funds Funds
$ 1,516,471 $ 5,228,090 $ 18,020,785 32,094,125 38,251,355 116,922,987
- 16,516,699 89,130,976 - 70,790 341,261 - 1,051 5,310 - 5,781,369 6,096,324 - 6,515,769 7,797,351 - 1,005,312 1,030,765 - 200 52,755 - - 24,758 - 14,342 88,893 - 3,781,660 3,791,660 $ 33,610,596 $ 77,166,637 $ 243,303,825
$ - $ 2,724,433 $ 2,855,351 92,338 5,464,815 10,055,437 - 610,046 2,479,654 - 159,593 159,593 - 758,236 762,436 - 112,648 112,648 60,047 978,607 6,096,314 - 217,507 1,382,157 - 26,767 251,197 - 33,406,789 136,471,047 - 11,875 308,851 - - 4,432 152,385 44,471,316 160,939,117
- - 150,000 - 1,800 26,559 - 200 52,755 - 294,025 294,025 - 9,000 1,596,481 - - 940,710 - 90,790 90,790
- - 13,453,401 - 17,854,452 17,856,722 - 3,062,489 3,062,489 33,458,211 11,382,565 44,840,776 33,458,211 32,695,321 82,364,708
$ 33,610,596 $ 77,166,637 $ 243,303,825
27 EXHIBIT A-4 COUNTY OF HIDALGO, TEXAS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS DECEMBER 31, 2004
Total fund balances - governmental funds balance sheet $ 82,364,708
Amounts reported for governmental activities in the statement of net assets ("SNA") are different because:
1. Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land 28,621,889 Infrastructure 145,023,200 Buildings and renovations 72,375,292 Improvements other than buildings 4,831,011 Machinery and equipment 19,474,646 Construction in progress 1,594,194 271,920,232 2. Some of the County's taxes collected during the year are not available to pay for the current period's expenditures and, therefore, are reported as deferred revenues in the funds. 37,693,973
3. Governmental funds report the issuance costs for long-term debt as an expenditure. This amount is a deferred charge which is amortized as an expenditure to general government over the life of the debt. 1,750,404
4. Interest on long-term debt is not accrued in the governmental funds, but rather is recognized as an expenditure when due. Accrued interest on bonds (2,404,549) Accrued interest on notes (167,793) (2,572,342)
5. Long-term liabilities applicable to the County's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. All liabilities-both current and long-term are reported in the statement of net assets. The County has issued bonds with premiums and discounts. The amounts were received in the governmental funds and increased fund balance. The premium or discounts will will be amortized as an adjustment of interest expense in the statement of activities over the remaining life of the new debt. For refunding of debt, in prior years, the difference between the carrying and the reacquisition amount is amortized as an adjustment to interest over the remaining life of the new debt. Bonds Payable (129,310,000) Notes Payable (7,263,692) Compensated absences (4,481,918) Net pension obigation (736,880) Unamortized Premiums (1,966,580) Unamortized Discounts 120,904 Deferred amounts on refundings 59,498 (1,786,178) (143,578,668)
6. The assets and liabilities of the internal service fund are included in the governmental activities in the statement of net assets. (See Exhibit A-9) Internal service fund net assets are: (251,506)
Total net assets of governmental activities (Exhibit A-1) $ 247,326,801
The accompanying notes are an integral part of this statement.
28
COUNTY OF HIDALGO, TEXAS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Special Revenue Fund Head General Start Fund Program REVENUES Taxes $ 84,872,373 $ - Licenses and permits 93,259 - Intergovernmental 1,997,221 37,245,425 Charges for services 9,439,721 - Fines and forfeits 271,433 - Interest 1,748,320 3,710 Contributions from private sources - - Miscellaneous 1,030,673 11,709 Total revenues 99,453,000 37,260,844
EXPENDITURES Current: General government 39,191,665 - Public safety 37,162,193 - Highways and streets - - Sanitation 3,747,965 - Drainage flood control - - Health and welfare 5,363,352 37,307,110 Culture-recreation 570,380 - Conservation of natural resources 457,306 - Urban and economic development 227,085 - Debt service: Principal - - Interest and fiscal charges - - Bond issuance costs - - Total expenditures 86,719,946 37,307,110
Excess (deficiency) of revenues over (under) expenditures 12,733,054 (46,266)
OTHER FINANCING SOURCES (USES): Transfers in 3,092 - Transfers out (8,559,292) - Premium (discount) on bonds issued - - Bonds issued - - Long-term notes issued 220,000 - Sale of fixed assets 310,613 - Total other financing sources (uses) (8,025,587) -
Net change in fund balances 4,707,467 (46,266)
Fund balances at beginning of year, as previously reported 11,501,439 48,536
Prior period adjustments - -
Fund balances at beginning of year, as restated 11,501,439 48,536
Fund balances at the end of year $ 16,208,906 $ 2,270 The accompanying notes are an integral part of this statement.
29 EXHIBIT A-5
Capital Projects Fund Certificates of Other Total Obligation Governmental Governmental Series 2004 Funds Funds
$ - $ 19,151,985 $ 104,024,358 - 3,570,322 3,663,581 - 47,903,563 87,146,209 - 7,659,418 17,099,139 - 4,890,883 5,162,316 274,471 1,351,425 3,377,926 - 55,477 55,477 - 877,057 1,919,439 274,471 85,460,130 222,448,445
15,625 9,348,639 48,555,929 - 18,309,422 55,471,615 157,225 20,595,465 20,752,690 - 1,067,660 4,815,625 - 7,788,522 7,788,522 - 23,876,032 66,546,494 - 1,936,021 2,506,401 - - 457,306 - 12,858,398 13,085,483
- 4,427,359 4,427,359 - 5,196,865 5,196,865 189,267 43,850 233,117 362,117 105,448,233 229,837,406
(87,646) (19,988,103) (7,388,961)
- 25,381,551 25,384,643 (253,354) (16,571,997) (25,384,643) 1,549,211 - 1,549,211 32,250,000 - 32,250,000 - 2,800,000 3,020,000 - 632,996 943,609 33,545,857 12,242,550 37,762,820
33,458,211 (7,745,553) 30,373,859
- 40,601,547 52,151,522
- (160,673) (160,673)
- 40,440,874 51,990,849
$ 33,458,211 $ 32,695,321 $ 82,364,708
30 EXHIBIT A-6 COUNTY OF HIDALGO, TEXAS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2004
Net change in fund balances - total governmental funds $ 30,373,859
Amounts reported for governmental activities in the statement of activities ("SOA") are different because:
1. Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets are allocated over their estimated useful lives and reported as depreciation expense. Capital outlay 23,177,980 Depreciation (6,200,461) 16,977,519 2. Sales and other dispositions of capital assets are reported in the governmental funds as other financing sources. The gain or loss on the sale of capital assets should be reported in the statement of activities. A gain is reported as general revenue and a loss should (188,619) be included as part of the general government function. 65,269 (123,350) 3. Governmental funds typcially report proceeds they receive in connection with the disposal of capital assets as other financing sources. This amount must be removed and replaced by an adjustment to the appropriate capital asset and the accumulated depreciation account. Any gain or loss should be reported as discussed above. (981,052) 4. Donations of capital assets increase net assets in the SOA but not in the funds. 30,905 5. Certain property tax revenues are deferred in the funds. This is the change in these amounts this year. Related to prior years (24,911,632) Earned but unavailable 37,693,973 12,782,341 6. Under the modified accrual basis of accounting used in governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available. In addition, interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. This adjustment combines the net changes of six balances. Compensated absences (411,715) Arbitrage interest expense 159,593 Net pension obligation (16,698) Amortization of issuance costs (106,367) Amortization of debt disounts (9,821) Amortization of debt premiums 23,187 Amortization of deferred charge on refundings (29,749) Accrued interest on bonds and notes (502,551) (894,121) 7. Bond proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, the issuance of debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets. Debt issued: Bonds Certificate of Obligation, Series 2004 (32,250,000) Premium on Certificate of Obligations (1,549,211) Issuance costs on Certificate of Obligation, Series 2004 189,267 Notes Tax Note, Series 2004 (3,020,000) Issuance costs on Tax Note, Series 2004 43,850 (36,586,094) Repayments: Bond principal 3,630,000 Note principal 1,002,359 4,632,359 8. Internal service fund (See Exhibit A-10) was used by the County to charge the cost of insurance to individual funds. The operating income (loss) of the internal service fund is reported with the governmental activities. (892,556) Change in net assets of governmental activities - statement of activities $ 25,319,810 The accompanying notes are an integral part of this statement.
31
EXHIBIT A-9 COUNTY OF HIDALGO, TEXAS STATEMENT OF NET ASSETS PROPRIETARY FUNDS DECEMBER 31, 2004
Nonmajor Internal Enterprise Service Funds Funds ASSETS Current assets: Cash $ 394,622 $ 271,787 Investments, plus accrued interest 773,710 2,882,253 Restricted cash 66,902 - Receivables (net of allowance for uncollectibles) Accounts - 33,747 Due from other funds - 2,219 Intergovernmental receivables 200 - Due from others - 39,830 Inventories 43,176 - Total current assets 1,278,610 3,229,836 Noncurrent assets: Advances to other funds - 175,000 Capital assets (net of accumulated depreciation): Land 1,001,093 - Machinery and equipment 9,900 70,985 Total capital assets (net of accumulated depreciation) 1,010,993 70,985 Total noncurrent assets 1,010,993 245,985 Total assets 2,289,603 3,475,821
LIABILITIES Current liabilities: Accounts payable 10,905 4,087 Salaries and benefits payable 4,679 6,991 Due to other funds 2,219 2 Intergovernmental payables 4,718 - Compensated absences-current 4,132 1,247 Total current liabilities 26,653 12,327 Noncurrent liabilities: Compensated absences 16,373 - Claims and judgments payable - 3,715,000 Landfill closure/ postclosure care costs 1,503,289 - Total noncurrent liabilities 1,519,662 3,715,000 Total liabilities 1,546,315 3,727,327
NET ASSETS Invested in capital assets, net of related debt 1,010,993 70,985 Restricted 66,902 - Unrestricted (334,607) (322,491) Total net assets $ 743,288 $ (251,506)
The accompanying notes are an integral part of this statement.
34 EXHIBIT A-10 COUNTY OF HIDALGO, TEXAS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS - PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Nonmajor Internal Enterprise Service Funds Funds Operating revenues: Charges for services $ 937,926 $ - Interfund services provided - 4,372,827 Other operating revenues 480 176,479 Total operating revenues 938,406 4,549,306
Operating expenses: Costs of services 638,491 4,780,380 Administration 252,217 689,766 Depreciation 2,043 9,910 Operating supplies 10,025 - Inmate expense 55,858 - Total operating expenses 958,634 5,480,056
Operating income (loss) (20,228) (930,750)
Nonoperating revenues (expenses): Investment earnings 22,555 38,194 Total non-operating revenues (expenses) 22,555 38,194
Income before contributions and transfers 2,327 (892,556)
Capital contributions 1,054,215 - Transfers in - - Transfers out - -
Change in net assets 1,056,542 (892,556)
Total net assets (deficiency) - beginning (313,254) 641,050 Total net assets (deficiency) - ending $ 743,288 $ (251,506)
The accompanying notes are an integral part of this statement.
35 EXHIBIT A-11 COUNTY OF HIDALGO, TEXAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004 Governmental Business-type Activities Activities Enterprise Funds Internal Landfill Jail Service Services Commisary Totals Fund CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from interfund services provided $ - $ 941,766 $ 941,766 $ - Receipts from customers and users - - 5,125,507 Payments to vendors - (567,575) (567,575) (366,703) Payments to employees - (241,571) (241,571) (352,811) Payments to other governments - (527) (527) - Payments to interfund services used - - - (1,710,740) Net Cash Provided (Used) by Operating Activities - 132,093 132,093 2,695,253
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Transfer from other funds - - - - Transfer to other funds - - - - Advances from other funds - - - - Advances to other funds - - - (95,000) Net Cash Provided (Used) by Non-capital Financing Activities - - - (95,000)
CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES: Capital contributions - - - - Purchase of capital assets - (1,202) (1,202) (43,050) Proceeds fom sales of capital assets - - - - Net Cash Provided (Used) for Capital & Related Financing Activities - (1,202) (1,202) (43,050)
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of investments 3,795,000 575,000 4,370,000 2,100,000 Purchase of investments (3,845,000) (574,000) (4,419,000) (4,975,000) Interest and dividends received 18,486 3,443 21,929 30,941 Net Cash Provided (Used) for Investing Activities (31,514) 4,443 (27,071) (2,844,059)
Net Increase (Decrease) in Cash and Cash Equivalents (31,514) 135,334 103,820 (286,856)
Cash and Cash Equivalents at Beginning of Year 35,350 255,451 290,801 558,643 Cash and Cash Equivalents at End of Year $ 3,836 $ 390,785 $ 394,621 $ 271,787
Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income (Loss) $ (149,381) $ 129,153 $ (20,228) $ (930,750) Adjustments to Reconcile Operating Income to Net Cash Cash provided by Operating Activities Depreciation expense - 2,042 2,042 9,910 (Increase) decrease in accounts receivables - 3,360 3,360 (33,718) (Increase) decrease in governmental receivables - (100) (100) - (Increase) decrease in due from other funds - 3,460 3,460 798,224 (Increase) decrease in due from others - - - (39,830) (Increase) decrease in inventory - (10,181) (10,181) - Increase (decrease) in accrued salaries & fringe benefits payable - 2,077 2,077 4,455 Increase (decrease) in accounts payable - (2,400) (2,400) (35,141) Increase (decrease) in due to other governments - (527) (527) - Increase (decrease) in due to other funds - 2,218 2,218 (73,490) Increase (decrease) in due to others - - - (3,929) Increase (decrease) in claims and judgements - - - 2,998,275 Increase (decrease) in compensated absences - 2,991 2,991 1,247 Increase in post-closure care liability 149,381 - 149,381 - Total Adjustments 149,381 2,940 152,321 3,626,003 Net Cash Provided (Used) by Operating Activities $ - $ 132,093 $ 132,093 $ 2,695,253 The accompanying notes are an integral part of this statement.
36
EXHIBIT A-12 COUNTY OF HIDALGO, TEXAS STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS DECEMBER 31, 2004
Pension Private-Purpose Trust Trust Agency Funds Funds Funds ASSETS Cash $ 1,832 $ 843,603 $ 14,653,483 Investments, plus accrued interest 10,874,415 1,256,320 3,502,892 Accounts receivable 4,738 - 45,914,717 Other receivables - - 2,904 Due from other funds 525 - 1,230,370 Due from other government - - 57,303 Due from others - - 38,353 Investments held in trust - - 23,648,294 Capital assets (net of accumulated depreciation) - 2,576,961 - Total assets 10,881,510 4,676,884 89,048,316
LIABILITIES Bank overdraft - - 919,927 Accounts payable - - 2,382,918 Salaries and benefits payable - - 21,779 Due to other funds - - 1,230,896 Due to other governments - - 28,320,028 Due to others - - 18,858,328 Deposits - - 6,458,251 Held in escrow - - 2,129,593 Held in trust - - 28,499,216 Advance from other funds - - 227,380 Total liabilities - - 89,048,316
NET ASSETS Held in trust for others - 4,676,884 - Held in trust for pension benefits 10,881,510 - - Total net assets $ 10,881,510 $ 4,676,884 $ -
The accompanying notes are an integral part of this statement.
37 EXHIBIT A-13 COUNTY OF HIDALGO, TEXAS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Pension Private-Purpose Trust Trust Funds Funds Additions: Contributions $ 2,162,388 $ - Investment income 370,182 6,506 Other income 200 1,287,047 Total additions 2,532,770 1,293,553
Deductions: Benefits paid 872,155 - Other 50,798 655,532 Total deductions 922,953 655,532
Change in net assets 1,609,817 638,021
Net assets-beginning of the year as previously reported 9,274,773 4,038,863
Prior period adjustment (3,080) -
Net assets-beginning of the year as restated 9,271,693 4,038,863
Net assets-end of the year $ 10,881,510 $ 4,676,884
The accompanying notes are an integral part of this statement.
38
NOTES TO THE FINANCIAL STATEMENTS
COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies
The accounting and reporting policies of County of Hidalgo, Texas (the County) as reflected in the accompanying financial statements conform to accounting principles generally accepted in the United States of America applicable to state and local governments.
The following significant accounting policies were applied in the preparation of the accompanying general- purpose financial statements.
A. Reporting Entity
In accordance with Governmental Accounting Standards Board Statement No. 14 (GASB-S14), “The Financial Reporting Entity,” the basic financial statements of the County include the primary government and its blended component unit. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable, or the relationship to the primary government is such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. A blended component unit, although a legally separate entity, is, in substance, part of the County's operations and so data from this unit is combined with data of the County.
The criteria used to determine whether an organization is a component unit of the County and whether it is a discretely or a blended component unit includes: financial accountability, appointment of a voting majority, ability to impose its will on the component unit, fiscal dependency criterion, and whether there is a financial benefit or burden to the County.
Based on the application of the foregoing criteria, the following is a brief discussion of the entities that are included within the County’s reporting entity.
Related County Agencies. The following agencies do not meet the criteria for component units as set forth in GASB-S14 because they are not legally separate entities. They are part of the primary government and are as follows:
Urban County Program (Urban County) – This agency administers economic and urban development grants received primarily from the U.S. Department of Housing and Urban Development.
Head Start Program (Head Start) – This agency administers health and welfare grants received from the Department of Health and Human Services and U.S. Department of Agriculture.
Community Service Agency (CSA) – This agency administers health and welfare grants received from various federal and state grantors.
Blended Component Unit. For financial reporting purposes, the Hidalgo County Drainage District Number One is included in the operations and activities of the County as a blended component unit because it’s governing body is the same as the governing body of the County.
Hidalgo County Drainage District Number One (the District) – The District is a separate legal entity created on April 9, 1908 by order of the Commissioners’ Court of Hidalgo County, Texas, pursuant to an election held within the territory affected. Originally organized under provisions of Article III, Section 52 of the Texas Constitution, the District was later converted into a Conservation and Reclamation district under the provisions of Article XVI, Section 59 of the Texas Constitution, and has continued to exercise all of the powers and functions of such a district. Complete financial statements for the District may be obtained from:
Hidalgo County Drainage District Number One 902 North Doolittle Road Edinburg, Texas 78539
39 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation
Government-wide Financial Statements:
The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The effect of interfund activity has been removed from these statements.
The statement of net assets focuses on the net assets of the governmental and business-type activities of the primary government and its blended component unit, where net assets equal the assets less the liabilities.
The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the County and for each function of the County's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are reported as general revenues.
Fund Financial Statements:
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be measurable when the amount of the transaction can be determined and available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers collections within 60 days of the end of the current fiscal period to be revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Revenues susceptible to accrual include property taxes, fines, forfeitures, licenses, interest income, and charges for services and so have been recognized as revenues of the current fiscal period. All other revenues are considered to be measurable and available only when cash is received by the County.
Deferred revenue arises when potential revenues do not meet both the measurable and available test for recognition in the current period. Deferred revenue also arises when resources are received by the County before the County is legally entitled to them. In succeeding periods when both revenue recognition criteria are
40 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
met, or when the County has legal claim to the resources, the liability for deferred revenue is removed from the statements and revenue is recognized.
Under the terms of grant agreements, the County funds certain programs by a combination of specific cost- reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County's policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues.
The County reports the following major governmental funds: The general fund is the County's primary operating fund. It accounts for all financial resources of the County, except those required to be accounted for in another fund. The Head Start Program special revenue fund accounts for health and welfare grants received from the Department of Health and Human Services and U.S. Department of Agriculture. Certificates of Obligation, Series 2004. This fund accounts for the construction of the Hidalgo County Juvenile Justice Center, the acquisition of new federally mandated electronic voting equipment/systems and related software and computer equipment, the County’s capital improvements to County roads, renovations and major repairs of County buildings and properties, including parking facilities, and the purchase of office equipment, computer equipment, vehicles, law enforcement equipment, and heavy and other equipment for various departments. Proceeds were received from the issuance of debt on September 22, 2004, through a Limited Tax and Limited Pledge Revenue Certificates of Obligation, Series 2004. This fund is categorized as a capital projects fund. The County does not report any major enterprise funds.
Additionally, the County reports the following fund types:
The internal service fund accounts for workers’ compensation insurance provided to other departments or agencies of the County, on a cost-reimbursement basis.
The pension trust funds account for the net plan assets and changes in net plan assets of the related agencies’ employees’ retirement plan.
Private-purpose trust funds account for property escheated to the state held for private individuals and for certificates of deposit and nonexempt real property executed in trust to the Bail Bond Board.
Agency funds account for funds held for others in an agency capacity including court costs, fees, fines, restitution, bonds, seizures, and taxes that are collected by the Justices of the Peace, District Clerk, District Attorney, County Clerk, Tax Assessor-Collector, Sheriff, and Health Department.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to the same limitation. The County has elected not to follow subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
41 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the jail commissary enterprise fund and of the County’s internal service fund are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
D. Assets, Liabilities, and Net Assets or Equity
1. Deposits and Investments
For the purpose of the Statement of Net Assets, “cash and cash equivalents” include cash on hand, demand deposits, negotiable order of withdrawal (NOW) accounts, and certificates of deposit of the County. For the purpose of the proprietary fund Statement of Cash Flows, “cash and cash equivalents” include cash on hand, cash in banks, demand deposits, and NOW accounts.
Investments are carried at fair value except for short-term certificates of deposit with a remaining maturity at the time of purchase of one year or less. Those investments are reported at amortized cost. It is the County's intent to hold all investments to maturity.
2. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” for the current portion of the interfund loans or “advances to/from other funds” for the non-current portion of interfund loans. All other outstanding balances between funds are classified as “due to/from other funds.” Balances outstanding between funds within governmental activities are eliminated in the Statement of Net Assets. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balance.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available financial resources and, therefore, are not available for appropriation.
All trade and property taxes receivable are shown net of an allowance for uncollectibles.
Property taxes are levied as of October 1st on property values assessed as of the same date. Taxes become delinquent on February 1st, at which time penalties and interest are assessed.
3. Inventories and Prepaid Items
Postage inventories in the general fund are valued at cost using the first-in, first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
4. Restricted Assets
Restricted assets in the Landfill Services enterprise fund is cash set aside because its use is limited by applicable bond covenants.
42 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities, and Net Assets or Equity (Continued)
5. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements.
As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate.
In the case of donations, the County values these capital assets at the fair market value of the item at the date of its donation.
Standard capitalization thresholds have been established for each major class of assets. Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Capitalization Useful Life Asset Class Threshold In Months Land/land improvements Capitalize all N/A Buildings/building improvements $ 50,000 264 Facilities & other improvements 50,000 276 Infrastructure 100,000 312 Personal property (equipment) 1,000 15-180 Library books/materials (collections) Capitalize all 120 Works of art/historical treasures Capitalize all 120 Leasehold improvements 50,000 60 Computer software 1,000 60
On May 11, 2004, Commissioners’ Court increased the capitalization threshold for personal property (equipment) and computer software from $1,000 to $5,000 effective January 1, 2005.
GASB No. 34 requires the County to report and depreciate new infrastructure assets effective with the beginning of fiscal year 2002. The retroactive reporting of infrastructure assets purchased, constructed, or donated in fiscal years ending after June 30, 1980, will be required beginning in fiscal year 2006.
6. Compensated Absences
The County accrues accumulated unpaid vacation and sick leave when earned (or estimated to be earned) by the employee. Employees earn vacation and sick leave at varying rates depending on their employment status and years of service with the County.
Hours Earned Per Year Full-Time Employees Part-Time Employees Years of Service Vacation Leave Sick Leave Vacation Leave Sick Leave Up to 5 years 96 96 hours worked x .04615 48 5 to 10 years 108 96 hours worked x .04615 48 Over 10 years 120 96 hours worked x .04615 48
43 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities, and Net Assets or Equity (Continued)
6. Compensated Absences (Continued)
It is the County’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits as follows:
Maximum Hours Accumulated Per Year Full-Time Employees Part-Time Employees Years of Service Vacation Leave Sick Leave Vacation Leave Sick Leave Up to 10 years 160 360 160 360 10 to 15 years 240 360 240 360 Over 15 years 320 360 320 360
Employees lose, without pay, unused vacation and sick leave, which exceed these limits. Outstanding sick leave balances are cancelled, without recompense, upon termination, resignation, retirement or death.
The accrued liability for accumulated compensated absences reported in the government-wide financial statements consists of unpaid accumulated vacation leave ($3,301,703), compensatory time ($339,659), and holiday leave ($862,309) balances.
7. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the appropriate governmental activities, business-type activities or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance cost, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and are amortized over the term of the related debt.
In the fund financial statements, governmental funds recognize bond premiums, discounts, and issuance costs during the current period. The bond face amount and any premiums are reported as other financing resources while any discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported in the capital projects funds as expenditures.
8. Equity Classifications
In the government-wide statements, equity is classified as net assets and displayed in three components:
Invested in capital assets, net of related debt - Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
Restricted net assets – Consists of net assets with constraints placed on their use by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or (2) law through constitutional provisions or enabling legislation.
Unrestricted net assets – Consists of all other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.”
In the fund financial statements, governmental funds report equity as fund balance. Fund balance is further classified as reserved and unreserved. Reservations of fund balance represent amounts that are not available for appropriation or are legally restricted for specific future uses. Proprietary fund equity is classified the same as in the government-wide statements.
44 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 1 Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities, and Net Assets or Equity (Continued)
9. Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Note 2 Stewardship, Compliance, and Accountability
A. Budgetary Information
The County follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The Budget Officer has the responsibility of preparing the County's budgeted expenditures. The County Auditor by statute has the responsibility of preparing an estimate of revenues for submission to Commissioners' Court.
2. By June 30th, all County departments and organizations must submit their budget requests to the Budget Officer for the fiscal year commencing the following January 1st.
3. During July and August, Commissioners’ Court conducts informal budget workshops with each department head to discuss their budget requests.
4. On or about September 30th, the Budget Officer prepares a proposed budget to cover all proposed expenditures of the County for the following year. Copies of the proposed budget are filed with the County Clerk and County Auditor. The proposed budget is available for inspection by taxpayers.
5. Within seven calendar days after the filing of the proposed budget and prior to December 31st of the current year, Commissioners’ Court conducts a public hearing on the County's proposed budget. Any taxpayer of the County of Hidalgo has the right to be present and participate in the hearing. At the conclusion of the hearing, Commissioners’ Court, acts upon the proposed budget as submitted by the Budget Officer. The Court has the authority to make such changes in the budget, in its judgment of the facts, the law warrant, and the interest of the taxpayers demand, provided the amounts budgeted for current expenditures from the various funds for the County do not exceed the balances in these funds as of January 1st plus the anticipated revenue for the current year for which the budget is made, as estimated by the County Auditor.
6. Under no circumstances can Commissioners’ Court authorize expenditures that will exceed appropriations.
Annual budgets are prepared in conformity with GAAP using the modified accrual basis of accounting for all governmental funds except grant-funded special revenue funds and capital projects funds, which adopt project- length budgets. All annual appropriations lapse at fiscal year end. Appropriations at year end for grant-funded special revenue funds and capital projects funds are carried forward to subsequent years until the grant has terminated or the project is completed.
The appropriated budget is prepared by fund, function, department, and object. Transfers of appropriations between objects require the approval of commissioners’ court. The legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed appropriations) is at the object level. The County prepares a separate budget report that demonstrates compliance at the legal level of budgetary control. This report is available upon request.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end do not constitute expenditures or liabilities because the commitments will be honored in the subsequent year. Encumbrances outstanding at December 31, 2004, were not re-appropriated in 2005 as per
45 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 2 Stewardship, Compliance, and Accountability (Continued)
A. Budgetary Information (Continued)
Commissioners’ Court order on October 19, 2004. Any encumbrance outstanding at December 31, 2004, was to be liquidated with the year 2005 budget. As of December 31, 2004, encumbrances outstanding amounted to $8,996,219, of which $881,265 related to the general fund, $1,674,719 to the special revenue funds, $6,439,808 to the capital projects funds, and $427 to the internal service fund.
B. Excess of Expenditures Over Appropriations
The Head Start Program had excess expenditures over appropriations in the amount of $5,439,778. Estimated revenues for the year were $32,006,332, all of which was budgeted as grant revenue. Actual revenues for the year were $37,260,844, which exceeded estimated revenue by $5,254,512. However, Head Start had a deficiency of revenues over expenditures of $46,266 that was funded by available fund balance.
C. Deficit Fund Equity
The Workers’ Compensation internal service fund reported deficit net assets of $251,506 as of December 31, 2004. During 2004, the County hired By the Numbers Actuarial Consulting, Inc. (BYNAC) to prepare an actuarial report to determine the required reserves retained by the fund. The actuarial study provided for a range of rates to be charged on actual payroll to attain the desired fund level. The rates used by the County were below the minimum rates recommended by the actuarial study. The County through the Risk Management Department will review the rate structure for year 2006 to determine if an adjustment to the current rate structure will be necessary to properly charge the customers of the fund.
Note 3 Detailed Notes on all Funds
A. Deposits and Investments
Deposits and investments for the Community Service Agency, Head Start Program, and Urban County Program are held separately from the County’s investment program. The District’s deposits and investments are included in the County’s investment program.
Deposits and investments are pooled for investment purposes in each of the County's fund types. Earnings on pooled investments are allocated to the funds having equity in the pool on the basis of their relative contribution to the pool. For reporting purposes, funds with a negative cash balance within the pool were offset by available cash from other funds within the pool.
The County's Depository Agreement requires its designated financial institution to secure the County’s uninsured deposits and accrued interest thereon by 110% with collateral valued at fair value. At December 31, 2004, the County's deposits were entirely covered by federal deposit insurance or were secured by collateral held by the pledging financial institution's agent in the County's name. At year-end, the County’s carrying amount of deposits was $30,410,834 and bank balance was $28,361,368.
Cash and investments is comprised of the following at December 31, 2004: Government-wide Fiduciary Funds Statement of Statement of Net Assets Net Assets Total Cash and cash equivalents: Cash in bank and on hand$ 15,831,843 $ 14,578,991 $ 30,410,834 Certificates of deposit 120,578,950 28,407,506 148,986,456 Total cash and cash equivalent 136,410,793 42,986,497 179,397,290 Investments - 10,874,415 10,874,415 Restricted cash 66,902 - 66,902 Total$ 136,477,695 $ 53,860,912 $ 190,338,607
46 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
A. Deposits and Investments (Continued)
Investments are classified into three categories of credit risk based upon the following:
Category 1 - Insured or registered, or securities held by the County or its agent in the County's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the County's name. Category 3 - Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent, but not in the County’s name.
The investments of the County as of December 31, 2004, are categorized below to give an indication of the level of risk assumed:
Book Fair Category Balance Value 1 2 3 Investments not subject to categorization: Related Agencies’ Retirement Plan $ 10,874,415 $ 10,874,415 $ - $ - $ - $ 10,874,415 $ 10,874,415 $ - $ - $ -
County funds may be invested in: • Obligations of the United States or its agencies and instrumentalities • Direct obligations of the State of Texas or its agencies and instrumentalities • Collateralized mortgage obligations directly issued by the United States or its agencies • Other obligations insured by the State of Texas or the United States • Obligations of other governmental units with at least an “A” rating • Bank certificates of deposit that are guaranteed. • Fully collateralized repurchase agreements (under certain conditions) • Bankers’ acceptances • SEC registered, no-load, AAA rated money market mutual funds (under certain conditions) • Investment pools with at least a AAA or AAA-m rating
B. Receivables
County receivables in the aggregate, including the applicable allowance for uncollectible accounts, were as follows at December 31, 2004:
Head Certificates of Nonmajor General Start Obligation Governmental Fund Program Series 2004 Funds Total Receivables: Taxes $ 80,036,548 $ - $ - $ 18,738,549 $ 98,775,097 Accounts 269,591 880 - 70,790 341,261 Other - 4,259 - 1,051 5,310 Intergovernmental 130,351 1,151,231 - 6,515,769 7,797,351 Less: allowance for uncollectibles ( 7,422,271) - - ( 2,221,850) ( 9,644,121) Total net receivables $ 73,014,219 $ 1,156,370 $ - $ 23,104,309 $ 97,274,898
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At December 31, 2004, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows:
47 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
B. Receivables (Continued) Unavailable Unearned Total Property taxes receivable (general fund) $ 30,757,719 $ 72,162,966 $102,920,685 Property taxes receivable (special revenue) 3,107,937 7,427,820 10,535,757 Property taxes receivable (debt service funds) 3,828,317 9,023,976 12,852,293 Court ordered restitutions owed to Hidalgo County 128,495 128,495 Culvert revenues for future installations to various subdivisions - 360,643 360,643 Grant draw downs prior to meeting all eligibility requirements - 9,673,174 9,673,174 Total deferred/unearned revenue for governmental funds $ 37,693,973 $ 98,777,074 $136,471,047
C. Capital Assets
Capital asset activity was as follows for the year ended December 31, 2004: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets not being depreciated: Land$ 4,164,479 $ 1,266,963 $ - $ 5,431,442 Easements 23,379,767 271,025 (460,345) 23,190,447 Infrastructure 111,495,017 - - 111,495,017 Construction in progress 5,788,084 3,943,170 (8,137,060) 1,594,194 Total capital assets not being depreciated 144,827,347 5,481,158 (8,597,405) 141,711,100 Capital assets, being depreciated: Buildings 87,664,094 8,550,866 (140,819) 96,074,141 Improvements other than buildings 5,774,305 346,606 (49,900) 6,071,011 Machinery and equipment 41,004,787 5,099,500 (993,414) 45,110,873 Infrastructure 22,816,330 11,960,762 (302,081) 34,475,011 Total capital assets being depreciated 157,259,516 25,957,734 (1,486,214) 181,731,036 Less accumulated depreciation for: Buildings (21,375,341) (2,326,713) 3,205 (23,698,849) Improvements other than buildings - (1,240,000) - (1,240,000) Machinery and equipment (23,047,464) (3,310,687) 792,909 (25,565,242) Infrastructure (461,004) (505,358) 19,534 (946,828) Total accumulated depreciation (44,883,809) (7,382,758) 815,648 (51,450,919) Total capital assets being depreciated, net 112,375,707 18,574,976 (670,566) 130,280,117 Governmental activities capital assets, net $ 257,203,054 $ 24,056,134 $ (9,267,971) $ 271,991,217
Business-type activities: Capital assets not being depreciated: Land$ 1,001,093 $ - - $ 1,001,093 Total capital assets not being depreciated 1,001,093 - - 1,001,093 Capital assets, being depreciated: Buildings 321,589 - - 321,589 Machinery and equipment 240,941 1,201 - 242,142 Total capital assets being depreciated 562,530 1,201 - 563,731 Less accumulated depreciation for: Buildings (321,589) - - (321,589) Machinery and equipment (230,200) (2,042) (232,242) Total accumulated depreciation (551,789) (2,042) - (553,831) Total capital assets being depreciated, net 10,741 (841) - 9,900 Business-type activities capital assets, net $ 1,011,834 $ (841) $ - $ 1,010,993 48 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
C. Capital Assets (Continued)
Depreciation expense was charged to the various functions as follows:
Governmental activities: General government$ 1,421,559 Public safety 2,469,539 Highways and streets, including depreciation of general infrastructure assets 1,585,164 Sanitation 94,110 Drainage 311,764 Health and welfare 1,158,283 Culture and recreation 306,003 Conservation 14,377 Urban and economic development 21,959 Total depreciation expense - governmental activities $ 7,382,758
Business-type activities Jail Commissary$ 77 Landfill Services 1,965 Total depreciation expense - business-type activities $ 2,042
Construction Commitments
The County has active construction projects as of December 31, 2004. At year-end the County’s commitments with contractors are as follows: Remaining Financing Project Spent-to-date Commitment Source TXDOT Projects $1,016,958 $ 615,754 R&B Funds, Cert. of Obligation, 2002 & 2004 Pct. 3 Community Resource Center 1,593,795 21,409 Certificates of Obligation, Series 2002 Raymondville Drainage Project 795,490 1,452,793 Certificates of Obligation, Series 2002 Border Colonia Access Projects 2,082,866 1,449,896 Certificates of Obligation, Series 2002 $5,489,109 $3,539,852
D. Interfund Receivables, Payables and Transfers
Interfund balances consisted of the following at December 31, 2004:
Due to general fund from: Nonmajor governmental funds$ 94,992 Internal service fund 2 Due to headstart from: Nonmajor governmental funds 219,961 Due to nonmajor governmental funds from: General fund 4,837,697 Nonmajor governmental funds 943,660 Due to agency funds from: Nonmajor governmental funds 1,186,901 Agency funds 43,994 Total$ 7,327,207
49 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
D. Interfund Receivables, Payables and Transfers (Continued)
These balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.
Interfund transfers consisted of the following for the year ended December 31, 2004:
Transfers Out: Cert. Of General Oblig. Nonmajor Transfers In: Fund Series 2004 Governmental Total General fund $ - $ - $ 3,091 $ 3,091 Nonmajor governmental 8,559,292 253,354 16,568,906 25,381,552 Total $ 8,559,292 $ 253,354 $ 16,571,997 $ 25,384,643
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute for budget requires to expend them, (2) move funds restricted to debt service to the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.
E. Restricted Assets
In August of 1991, the County sold Certificates of Obligation in the principal amount of $4,700,000 of which $2,300,000 was designated for the purchase of two hundred twelve (212) acres of land for a sanitation landfill, acquisition of equipment, and for paying legal, fiscal engineering, and architectural fees in connection with this project. An enterprise fund has been set up to account for all of Hidalgo County's landfill operations. Accordingly, since the above-mentioned debt is to be paid from future property tax revenues, the $2,300,000 received by the Landfill Services enterprise fund is reported as restricted cash. Cash totaling $66,902 ($2,300,000 - $2,233,098) has been restricted since 1997.
F. Leases
Operating Leases
The County has various lease commitments for office space and office equipment. The office equipment leases range from 3 to 5 years and the office space leases range from 2 to 5 years with the exception of two ongoing leases. Lease expense totaled $722,226 (for leases of more than one year) for the year ended December 31, 2004. The future minimum lease payments are as follows:
Year Ended December 31, Amount
2005 $ 673,484
2006 289,159 2007 75,319 2008 25,577 2009 10,518 2010-2014 31,067
Total $ 1,105,124
50 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
F. Leases (Continued)
Operating Leases (Continued)
The County has also entered into five lease agreements as the lessor for land and buildings. The annual lease payments received totaled $136,211 for the year ended December 31, 2004. The cost of the leased assets is $2,446,414 less depreciation of $430,670 for a carrying value of $2,015,744. The future minimum lease payments receivable are as follows:
Year Ended December 31, Amount
2005 $ 133,211 2006 133,210 2007 133,210 2008 133,210 2009 133,210 2010-2014 275,000 2015-2019 7,200 Total $ 948,251
G. Long-term Debt
General and Certificates of Obligation Bonds
The County issues general and certificates of obligation bonds to provide the resources for both the acquisition and construction of capital assets. These bonds have been issued for both governmental and business-type activities. The beginning balance of the general and certificates of obligation bonds issued in prior years was $100,690,000. During the year, combination tax and limited pledge revenue certificates of obligation totaling $32,250,000 were issued to fund construction of a juvenile justice center, right of way acquisition, road improvements and related drainage, landfill improvements, equipment acquisition (including voting equipment), repair and renovation of county facilities, and the payment of related professional services.
General and certificates of obligation bonds are direct obligations of the County, payable from the levy and collection of a direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property located within the County in an amount sufficient to provide payment of principal and interest. All bonds have principal maturities on August 15th. Interest is payable semi-annually on February and August 15th.
The General Obligation Refunding Bonds, Series 1996 and Series 1998 are not subject to redemption prior to maturity. The Certificates of Obligation, Series 2001 included $10,020,000 of term bonds. The term bonds, which mature on August 15, 2019 and 2021, are subject to mandatory redemption in part prior to maturity on August 15. All other bonds may be prepaid or redeemed prior to their respective scheduled due dates as per provisions in the bond agreements.
51 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
G. Long-term Debt (Continued)
General and certificate of obligation bonds and tax notes currently outstanding are as follows:
Interest Issue Maturity Purpose Type Rates Date Date Amount Governmental activities Refunding bonds 5.00 – 6.75% 1996 2006$ 1,030,000 Governmental activities Refunding bonds 3.85 – 4.30% 1998 2008 3,280,000 Governmental activities Certificates of obligation 3.85 – 5.00% 1998 2018 6,810,000 Governmental activities Certificates of obligation 5.00 – 5.62% 2000 2020 41,545,000 Governmental activities Certificates of obligation 4.00 – 5.25% 2001 2021 23,995,000 Governmental activities Certificates of obligation 2.00 – 5.00% 2002 2022 20,400,000 Governmental activities Tax note 5.25% 2003 2006 450,000 Governmental activities Certificates of obligation 3.00 – 5.25% 2004 2024 32,250,000 Governmental activities Tax note 5.25% 2004 2011 2,800,000 $ 132,560,000
Debt Service Requirements
Annual debt service requirements to maturity for general and certificates of obligation bonds are as follows:
Year Ending Governmental Activities December 31, Principal Interest Total 2005$ 4,808,335 $ 6,527,965 $ 11,336,300 2006 5,486,670 6,352,386 11,839,056 2007 5,991,670 6,112,293 12,103,963 2008 6,466,670 5,862,809 12,329,479 2009 6,901,670 5,588,083 12,489,753 2010-2014 36,864,985 23,070,703 59,935,688 2015-2019 39,225,000 13,528,140 52,753,140 2020-2024 26,815,000 3,170,575 29,985,575 Total$ 132,560,000 $ 70,212,954 $ 202,772,954
Advance Refundings and Defeasances
In prior years, the County defeased certain general obligation bonds by placing the proceeds of new bonds in irrevocable trust with an escrow agent to provide for all future debt service payments on the old bonds. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the governmental activities column of the statement of net asset. The following table summarizes the defeased bonds outstanding at December 31, 2004:
Description Refunding Bonds Outstanding Years of Maturity 1990 General Obligation Refunding Bonds 700,000 2005-2006 1991 General Obligation Refunding Bonds 2,345,000 2005-2008 1990-A Certificates of Obligation 240,000 2005-2006
Notes Payable-Hidalgo County
The following amounts financed are payable from the levy and collection of a direct and continuing ad valorem tax within the limits prescribed by law, on all taxable property within the County. All notes have a variable interest rate. The notes are as follows:
52 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
G. Long-term Debt (Continued)
Interest Rate at Issue Maturity 12/31/04 Date Date Amount International Bank of Commerce 5.25% 2001 2005 57,869 First National Bank 5.25% 2002 2005 17,977 First National Bank 5.25% 2002 2006 384,214 Subtotal tax pledged notes $ 460,060
For each of the following amounts financed, the equipment purchased is used as collateral on the debt. The notes are as follows:
Interest Rate at Issue Maturity 12/31/04 Date Date Amount First National Bank 5.25% 2001 2006 $ 152,594 First National Bank 5.25% 2002 2006 106,038 First National Bank 5.25% 2004 2007 220,000 Subtotal unpledged notes 478,632 Hidalgo County notes $ 938,692
Notes Payable-Urban County
The County of Hidalgo, through the Urban County Program, has entered into loan agreements with the U.S. Department of Housing and Urban Development (HUD) under HUD’s Section 108 Loan Guarantee Program. The purpose of the loans was to assist certain cities in obtaining the necessary financing to construct vital community projects. Each City will repay its loan with City funds or from the City’s Community Development Block Grant (CDBG) allotment from the Urban County Program. Principal and interest will be remitted to Chase Manhattan Bank, HUD’s trustee. Note principal and interest will be used to pay Section 108 Government Guaranteed Participation Certificates purchased by underwriters selected by HUD. Interest is payable semiannually on February 1st and August 1st. Principal payments are due as scheduled on February 1st until maturity.
Interest Issue Maturity Urban County Rate Date Date Amount City of La Joya 7.03% 1997 2007 $ 405,000 City of Alton 6.56% 2001 2020 2,670,000 Urban County notes $ 3,075,000
Changes in Long-Term Liabilities
Certificates of Obligation, Series 1998, 2000, and 2001 were all issued with discounts and are amortized over the life of the bond.
53 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 3 Detailed Notes on all Funds (Continued)
G. Long-Term Debt (Continued)
Long-term liability activity was as follows for the year ended December 31, 2004:
Balance Balance Amounts January 1, December 31, Due Within 2004 Additions Deductions 2004 One Year Governmental activities: Bonds and notes payable: General obligation bonds $ 100,690,000 $ 32,250,000 $ (3,630,000) $ 129,310,000 $ 4,350,000 Tax Notes 600,000 2,800,000 (150,000) 3,250,000 458,335 Notes 1,366,051 220,000 (647,359) 938,692 546,899 Notes-Urban County 3,280,000 - (205,000) 3,075,000 220,000 105,936,051 35,270,000 (4,632,359) 136,573,692 5,575,234 Plus premiums on bonds 440,556 1,549,211 (23,187) 1,966,580 - Less issuance discounts (130,725) - 9,821 (120,904) - Less deferred amount on refundings (89,247) - 29,749 (59,498) - Total bonds and notes payable 106,156,635 36,819,211 (4,615,976) 138,359,870 5,575,234
Other liabilities: Compensated absences 4,070,206 4,416,105 (4,003,145) 4,483,166 595,731 Claims and judgments 716,725 2,998,275 - 3,715,000 - Net pension obligation 720,182 16,698 - 736,880 - Total other liabilities 5,507,113 7,431,078 (4,003,145) 8,935,046 595,731 Governmental activities long-term liabilities $ 111,663,748 $ 44,250,289 $ (8,619,121) $ 147,294,916 $ 6,170,965
Business-type activities: Landfill closure/post-closure care costs $ 2,408,124 $ 149,380 $ (1,054,215) $ 1,503,289 $ - Compensated absences 17,514 16,234 (13,243) 20,505 4,132 Business-type activities long-term liabilities $ 2,425,638 $ 165,614 $ (1,067,458) $ 1,523,794 $ 4,132
H. Short-Term Debt
The County of Hidalgo, through the Urban County Program, has a $500,000 line of credit with First National Bank of Edinburg. The purpose of the line of credit is to finance the costs of construction and general administration expenses prior to reimbursement from the Texas Department of Housing and Community Affairs (TDHCA) and/or the Office of Rural Community Affairs (ORCA). Principal amounts obtained from the line of credit are re-paid directly from the corresponding TDHCA or ORCA grants. The County is responsible for any accrued interest.
Short-term debt activity was as follows for the year ended December 31, 2004:
Balance Balance January 1, December 31, 2004 Additions Deductions 2004 Urban County Program: Colonia Fund Line of Credit $ 0 $ 514,594 $ (401,946) $ 112,648
54 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information
A. Risk Management
The County is exposed to various risks of loss relating to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. On July 1, 2003, the County established a Workers’ Compensation Fund (an internal service fund) to account for and finance its uninsured risk of loss for workers’ compensation. The primary government and its blended component unit participate in the program and make payments to the Workers’ Compensation Fund based on historical cost information. Under this program, the Workers’ Compensation Fund provides coverage for up to a maximum of $350,000 for each worker’s compensation claim. The County purchases commercial insurance for claims in excess of coverage provided by the Fund. As of December 31, 2004, the County had a total of 924 reported claims. The claims liability of $3,715,000 reported in the Fund and in the governmental activities column of the government-wide statement of net assets at December 31, 2004, is based on the requirements of Governmental Accounting Standards Board Statement No. 10, as amended, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Workers’ compensation claims liabilities for the past two years are as follows:
2004 2003 Claims liabilities at beginning of year $ 716,725 $ - Claims incurred during the year 4,780,380 929,985 Changes in the estimate for claims of prior years - - Payments on claims 1,782,105 213,260 Claims liabilities at end of year $ 3,715,000 $ 716,725
The County participates in the Texas Association of Counties County Governmental Risk Management Pool (“the Pool”) for coverage in the following areas: general liability, law enforcement professional liability, public officials liability, auto liability, auto physical damage, and unemployment compensation. These policies are fully funded policies, with no liability to the County for unbilled or unpaid claims except for any settled lawsuits. The County purchased coverage for property from Chubb Group of Insurance Companies, a commercial insurance carrier. Changes in the deductible amounts for the policies per incident were:
Type of Insurance 2004/2005 2003/2004
General Liability $50,000 $50,000 Law Enforcement Professional Liability $50,000 $50,000 Public Officials Liability $50,000 $50,000 Auto Liability $50,000 $50,000 Auto Physical Damage $10,000 $ 5,000 Property $25,000 $25,000
Settled claims have not exceeded coverage in the past three fiscal years. There were no significant reductions in the major categories of risk from coverage in the prior years.
B. Subsequent Events
On January 25, 2005, Commissioners’ Court approved an administrative services agreement with United of Omaha Life Insurance Company for the administration of the County’s health benefits self-insurance fund. The County became self-insured for health insurance benefits effective February 1, 2005.
On March 29, 2005, Commissioners’ Court approved the issuance of $51,640,000 in Limited Tax General Obligation Refunding Bonds, Series 2005, to advance refund the Series 1998, 2000, and 2001 Certificates of Obligation. Interest rates for the refunding bonds range from 3 to 5 percent. The refunding bonds are scheduled to mature in varying amounts through 2021.
55 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information (Continued)
C. Contingent Liabilities
1. Litigation Various lawsuits are pending against the County involving general liability, civil rights, actions, and various contractual matters. In the opinion of County management, the potential claims against the County not covered by insurance resulting from such litigation will not materially affect the financial position of the County.
2. Federally Assisted Programs The County and its Agencies participate in a number of federally assisted grant programs. Although the grant programs have been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 and OMB Circular A-133 through December 31, 2004, these programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the County and its Agencies expect that such amounts, if any, will not materially impact the financial position of the County.
D. Employee Retirement Plan
Texas County and District Retirement System
Plan Description The County of Hidalgo, Texas (the County), including Hidalgo County Drainage District Number One (the District) provides retirement, disability, and death benefits for all of its full-time employees through a nontraditional defined benefit pension plan in the statewide Texas County and District Retirement System (TCDRS). The Board of Trustees of TCDRS is responsible for the administration of the statewide agent multiple-employer public employee retirement system consisting of 517 nontraditional defined benefit pension plans. TCDRS, in the aggregate, issues a comprehensive annual financial report (CAFR) on a calendar year basis. The CAFR is available upon written request from the TCDRS Board of Trustees at P.O. Box 2034, Austin, Texas 78768-2034.
The plan provisions are adopted by the governing body of the County and the District, within the options available in the Texas state statutes governing TCDRS (TCDRS Act). Members with the County can retire at age 60 and above with 8 or more years of service, with 20 years of service regardless of age, or when their age and years of service equals 75 or more. Members with the County are vested after 8 years of service but must leave their accumulated contributions in the plan to receive any employer-financed benefits. Members with the District can retire at age 60 and above with 10 or more years of service, with 20 years of service regardless of age, or when their age and years of service equals 80 or more. Members with the District are vested after 10 years of service but must leave their accumulated contributions in the plan to receive any employer-financed benefits. Members with the County or the District who withdraw their personal deposits in a lump sum are not entitled to any amounts contributed by their employer.
Benefit amounts are determined by the sum of the employee's contributions to the plan, with interest, and employer-financed monetary credits. The level of these monetary credits is adopted by the governing body of the County and the District within the actuarial constraints imposed by the TCDRS Act so that resulting benefits can be expected to be adequately financed by the County and District’s commitment to contribute. At retirement, death, or disability, the benefit is calculated by converting the sum of the employee's accumulated contributions and the employer-financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the TCDRS Act.
Funding Policy The County and the District have elected the annually determined contribution rate (Variable-Rate) plan provisions of the TCDRS Act. The plan is funded by monthly contributions from both employee members and the employer based on the covered payroll of employee members. Under the TCDRS Act, the contribution rate of the County and the District is actuarially determined annually. The rate was 8.26% for the County and 9.99% for the District for the calendar year 2004. The deposit rate payable by the employee members is the rate of 7% as adopted by both governing bodies of the County and the District. The employee deposit rate and the employer contribution rate may be changed by the governing body of the County and the District within the options available in the TCDRS Act. 56 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information (Continued)
D. Employee Retirement Plan (Continued)
Annual Pension Cost and Pension Assets
For the County and District's accounting year ending December 31, 2004, the annual pension cost for the TCDRS plan for its employees was $5,480,597 and $212,909, respectively, and the actual contributions were $5,469,155 and $207,653, respectively.
Drainage Hidalgo District County No. 1 Total 1. Annual required contributions $ 5,469,155 $ 213,421 $ 5,682,576 2. Interest on net pension obligation (NPO) 80,775 ( 15,959) 64,816 3. Adjustment to ARC ( 69,333) 15,447 ( 53,886) 4. Annual pension cost [ (1) + (2) + (3) ] 5,480,597 212,909 5,693,506 5. Contributions made 5,469,155 207,653 5,676,808 6. Increase (decrease) in NPO [ (4) - (5) ] 11,442 5, 256 16,698 7. NPO beginning of year 897,499 ( 177,317) 720,182 8. NPO end of year [ (6) + (7) ] $ 908,941 $( 172,061) $ 736,880
Employer Contributions
The annual required contributions were actuarially determined as a percent of the covered payroll of the participating employees, and were in compliance with GASB Statement No. 27 parameters based on the actuarial valuation as of December 31, 2002, the basis for determining the contribution rate for calendar year 2004. The actuarial valuation at December 31, 2003 is the most recent valuation.
Hidalgo County Actuarial Valuation Information Actuarial valuation date December 31, 2001 December 31, 2002 December 31, 2003 Actuarial cost method Entry Age Entry Age Entry Age Amortization method Level Percentage of Level Percentage of Level Percentage of Payroll, Open Payroll, Open Payroll, Open Amortization period in years 20 20 20 Asset valuation method Long-term appreciation Long-term appreciation Long-term appreciation with adjustment with adjustment with adjustment Actuarial Assumptions: Investment return 8.00% 8.00% 8.00% Project salary increases 5.50% 5.50% 5.50% Inflation 3.50% 3.50% 3.50% Cost-of-living adjustments 0.00% 0.00% 0.00%
57 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information (Continued)
D. Employee Retirement Plan (Continued)
Drainage District Number One Actuarial Valuation Information Actuarial valuation date December 31, 2001 December 31, 2002 December 31, 2003 Actuarial cost method Entry Age Entry Age Entry Age Amortization method Level Percentage of Level Percentage of Level Percentage of Payroll, Open Payroll, Open Payroll, Open Amortization period in years 20 20 20 Asset valuation method Long-term appreciation Long-term appreciation Long-term appreciation with adjustment with adjustment with adjustment Actuarial Assumptions: Investment return 8.00% 8.00% 8.00% Project salary increases 5.50% 5.50% 5.50% Inflation 3.50% 3.50% 3.50% Cost-of-living adjustments 0.00% 0.00% 0.00%
Trend Information for the Retirement Plan for the Employees of The County of Hidalgo, Texas and Drainage District Number One Accounting Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation Hidalgo County December 31, 2002 $ 4,397,647 99.7% $ 886,201 Hidalgo County December 31, 2003 $ 5,093,965 99.8% $ 897,499 Hidalgo County December 31, 2004 $ 5,480,597 99.8% $ 908,941
Drainage District No. 1 December 31, 2002 $ 175,905 100.6% $( 176,807) Drainage District No. 1 December 31, 2003 $ 197,657 100.3% $( 177,317) Drainage District No. 1 December 31, 2004 $ 212,909 97.5% $( 172,061)
Schedule of Funding Progress for the Retirement Plan for Employees of the County of Hidalgo, Texas and Drainage District Number One Actuarial UAAL as a Actuarial Accrued Unfunded Annual Percentage Actuarial Value of Liability AAL Funded Covered of Covered Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) Hidalgo County 12/31/2001 $ 84,027,951 $ 99,029,046 $15,001,095 84.85% $48,150,938 31.15% 12/31/2002 $ 90,649,163 $108,564,489 $17,915,326 83.49% $55,003,869 32.57% 12/31/2003 $102,983,246 $119,648,385 $16,665,139 86.07% $62,115,673 26.83%
Drainage District No. 1 12/31/2001 $ 2,171,471 $ 2,433,545 $ 262,074 89.23% $ 1,692,003 15.48% 12/31/2002 $ 2,503,475 $ 2,856,551 $ 353,076 87.63% $ 1,847,657 19.10% 12/31/2003 $ 3,008,110 $ 3,377,941 $ 369,831 89.05% $ 2,038,770 18.14%
58 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information (Continued)
D. Employee Retirement Plan (Continued)
County of Hidalgo 457 Savings Plan
On March 8, 2004, the Commissioners’ Court of the County approved a 457 Savings Plan for all employees of the County except part-time employees working less than 20 hours per week. The 457 Savings Plan will become effective July 1, 2005. Under the plan, eligible employees may invest pretax a minimum of $12.50 per pay period up to a maximum of $14,000 for calendar year 2005. The County will remit the amounts withheld from employees directly to Nationwide Life Insurance Company.
County of Hidalgo Affiliated Agencies Employees’ Retirement Plan (Plan)
The following description of the Plan provides only general information. Participants should refer to the Plan agreement for a more comprehensive description of the Plan's provisions.
General The Plan is a tax deferred money purchase pension plan and covers all employees of Hidalgo County Urban County Program, Hidalgo County Head Start Program and Hidalgo County Community Services Agency. The Plan was adopted in 1993 and amended effective January 1, 2001. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions Employees of the various Agencies are eligible to participate in the Plan once they complete six months of service or accumulate 501 hours of service. All eligible employees shall contribute 7% of their compensation to the Plan. The employer shall contribute on behalf of each eligible participant 7% of such participant's annual compensation.
Participants Accounts Each participant's account is credited with the participant's contribution and allocations of (a) the Agency's contribution and (b) Plan earnings, and charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. Forfeited balances of terminated participants nonvested accounts are first used to pay Plan administrative expenses for the year with any remaining balance or forfeitures treated as additional employer contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.
Vesting Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Agencies contribution portion of their accounts plus earnings thereon is based on a five-year vesting schedule. A participant is 100% vested after the fifth year of service. A participant is always 100% vested upon normal retirement age regardless of years of service.
Payment of Benefits Distribution of benefits upon termination of employment due to death, disability, or retirement will be made in accordance with the provisions in the Plan agreement. Distributions will be in the form of an annuity or as a lump- sum distribution.
Contributions to the Plan approximated $2,162,388 at December 31, 2004.
E. Landfill Closure and Post-closure Care Costs
State and federal laws and regulations require the County to place final covers on its landfill sites located in Precinct Three and Four when it stops accepting waste at these sites. During 2004, the County placed a final cover on the Precinct Four landfill. The County will be required to perform certain maintenance and monitoring functions at both landfill sites for a minimum of thirty years after closure.
59 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information (Continued)
E. Landfill Closure and Post-closure Care Costs (Continued)
The Governmental Accounting Standards Board (GASB) Statement Number 18, "Accounting for Municipal Solid Waste Landfill Closure and Post-closure Care Costs," addresses the financial statement effect of complying with EPA and state requirements. GASB Statement 18 requires that all closure and post-closure care costs be recognized during the operating life of the landfill. Accordingly, a portion of the total estimated closure and post- closure care costs, based on the ratio of landfill capacity, should be recognized as an expense and/or liability each period the landfill accepts waste.
Closure and post-closure care costs related to the County's landfill site in Precinct Three (MSW-1727) are based on a five-acre cell out of twelve acres that are currently in operation. The County has recognized a liability of $237,289 for closure and post-closure care costs as of December 31, 2004. The County obtained approval from Texas Commission on Environmental Quality (previously Texas Natural Resources Conservation Commission) to expand the landfill capacity of the above five-acre cell in 1998.
Closure and post-closure care costs related to the County's landfill site in Precinct Four are based on eighteen acres of landfill (MSW-1593A). In 2004, the County submitted the Final Cover System Evaluation Report (FCSER) to the Texas Commission on Environmental Quality, which satisfied the documentation requirements for closure in 30 TAC§330.253(e)(6). The County has recognized a liability of $1,266,000 for post-closure care costs as of December 31, 2004.
At December 31, 2004, the total liability of $1,503,289 for both landfill sites is based on the County performing all of the contractual work. However, due to changes in technology, inflation, or changes in laws and regulations, actual costs may change. Hidalgo County implemented financial assurance requirements related to landfill closure and post-closure care costs as required by the Texas Commission on Environmental Quality and will continue to do so in future years.
F. Prior Period Adjustments
The following fund balances at December 31, 2003, have been restated.
Special Capital Revenue Projects Funds Funds Balances at December 31, 2003, As previously reported $ 20,291,921 $ 18,474,633 To close out old fiscal year grants ( 366) - To correct due to other governments ( 1,184) - To reclassify expenditures 470 - To clear up reserve and set up arbitrage payable due in July 2005 - ( 159,593) Balances at December 31, 2003, As restated $ 20,290,841 $ 18,315,040
Additionally, the government-wide statement of net assets reported a prior period adjustment of $1,869,172 at December 31, 2004. The government-wide prior period adjustment consisted of $720,182 for the net pension obligation at December 31, 2003 and $1,148,990 of accumulated depreciation for other structures at December 31, 2003.
60 COUNTY OF HIDALGO, TEXAS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2004
Note 4 Other Information (Continued)
G. Property Taxes
Levy and Collections The County is responsible for the assessment, collection, and apportionment of property taxes for all jurisdictions including the schools and special districts within the County. The County Commissioners’ Court levies property taxes as of October 1st based on the assessed value listed as of the date the enforceable lien attaches. Property taxes attach as an enforceable lien as of January 1st. Appraised values are established by the Hidalgo County Appraisal District, assessed at 100% of appraised value, and certified by the Appraisal Review Board. These taxes are due from October 1st, of the year in which levied, until January 31st of the following year without interest or penalty. No early payment discounts are allowed. On February of each year, the taxes are subject to simple interest and penalties.
The current tax levy, reduced by an allowance for uncollectible taxes, is recognized in the accounts when levied on October 1st, and is recorded as deferred revenue at that time. Such deferred revenues are recognized as revenues in the next fiscal year as taxes are collected and become available. Prepayments that are collected in advance of the fiscal year to which they apply are recorded as deferred revenue when collected and recognized as revenue on the first day of the year.
Tax Rate The constitutional tax rate limit for both operations and debt service is $0.80 on each $100 of assessed valuation. The tax rate of the 2003 tax roll (for fiscal year 2004) was $0.59 per $100 which means that the County has a tax margin of $0.21 per $100 and could have raised up to $33,005,232 additional tax from the 2004 valuation of $15,716,777,121 before the tax limit was reached.
61
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
EXHIBIT B-1 COUNTY OF HIDALGO, TEXAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2004
Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds (See Funds Funds Funds Exhibit A-3) ASSETS Cash $ 2,261,351 $ 415,085 $ 2,551,654 $ 5,228,090 Investments, plus accrued interest 25,051,229 3,325,694 9,874,432 38,251,355 Receivables (net of allowance for uncollectibles) Taxes 7,436,551 9,080,148 - 16,516,699 Accounts 70,095 - 695 70,790 Other 1,051 - - 1,051 Due from other funds 2,099,406 3,093,853 588,110 5,781,369 Due from other governments 3,734,662 - 2,781,107 6,515,769 Due from others 1,005,312 - - 1,005,312 Advances to other funds 200 - - 200 Prepaids 14,342 - - 14,342 Other assets 3,781,660 - - 3,781,660 Total assets $ 45,455,859 $ 15,914,780 $ 15,795,998 $ 77,166,637
LIABILITIES AND FUND BALANCES Liabilities: Bank overdraft $ 1,317,142 $ - $ 1,407,291 $ 2,724,433 Accounts payable 3,741,525 - 1,723,290 5,464,815 Salaries and benefits payable 610,046 - - 610,046 Arbitrage payable - - 159,593 159,593 Retainage payable 90,193 - 668,043 758,236 Notes payable - short-term 112,648 - - 112,648 Due to other funds 581,591 - 397,016 978,607 Due to other governments 217,507 - - 217,507 Due to others 26,767 - - 26,767 Deferred revenues 20,496,298 12,852,291 58,200 33,406,789 Held in escrow 11,875 - - 11,875 Total liabilities 27,205,592 12,852,291 4,413,433 44,471,316
Fund balances: Reserved for: Inventory 1,800 - - 1,800 Advances to other funds 200 - - 200 Contingencies 294,025 - - 294,025 Restricted revenues 9,000 - - 9,000 TXDOT cash match 90,790 - - 90,790 Unreserved, reported in: Special revenue funds 17,854,452 - - 17,854,452 Debt service funds - 3,062,489 - 3,062,489 Capital projects funds - - 11,382,565 11,382,565 Total fund balances 18,250,267 3,062,489 11,382,565 32,695,321
Total liabilities and fund balances $ 45,455,859 $ 15,914,780 $ 15,795,998 $ 77,166,637
62 EXHIBIT B-2 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004 Total Nonmajor Special Debt Capital Governmental Revenue Service Projects Funds (See Funds Funds Funds Exhibit A-5) REVENUES Taxes $ 8,717,488 $ 10,434,497 $ - $ 19,151,985 Licenses and permits 3,570,322 - - 3,570,322 Intergovernmental 42,351,647 - 5,551,916 47,903,563 Charges for services 7,659,418 - - 7,659,418 Fines and forfeits 4,890,883 - - 4,890,883 Interest 686,039 257,459 407,927 1,351,425 Contributions form private sources 55,477 - - 55,477 Miscellaneous 876,410 647 - 877,057 Total revenues 68,807,684 10,692,603 5,959,843 85,460,130
EXPENDITURES Current: General government 5,358,513 96,830 3,893,296 9,348,639 Public safety 17,405,146 - 904,276 18,309,422 Highways and streets 12,318,181 - 8,277,284 20,595,465 Sanitation - - 1,067,660 1,067,660 Drainage flood control 5,039,292 - 2,749,230 7,788,522 Health and welfare 23,876,032 - - 23,876,032 Culture-recreation 1,796,895 - 139,126 1,936,021 Urban and economic development 12,858,398 - - 12,858,398 Debt service: Principal - 4,427,359 - 4,427,359 Interest and fiscal charges - 5,196,865 - 5,196,865 Bond issuance costs - - 43,850 43,850 Total expenditures 78,652,457 9,721,054 17,074,722 105,448,233
Excess (deficiency) of revenues over (under) expenditures (9,844,773) 971,549 (11,114,879) (19,988,103)
OTHER FINANCING SOURCES (USES): Transfers in 23,314,909 226,142 1,840,500 25,381,551 Transfers out (15,707,695) (18,731) (845,571) (16,571,997) Long-term notes issued - - 2,800,000 2,800,000 Sale of fixed assets 245,521 - 387,475 632,996 Total other financing sources (uses) 7,852,735 207,411 4,182,404 12,242,550
Net change in fund balances (1,992,038) 1,178,960 (6,932,475) (7,745,553)
Fund balances at beginning of year, as previously reported 20,243,385 1,883,529 18,474,633 40,601,547
Prior period adjustments (1,080) - (159,593) (160,673)
Fund balances at beginning of year, as restated 20,242,305 1,883,529 18,315,040 40,440,874
Fund balances at the end of year $ 18,250,267 $ 3,062,489 $ 11,382,565 $ 32,695,321
63
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditure for specified purposes.
COUNTY OF HIDALGO, TEXAS Special Revenue Funds December 31, 2004
Road and Bridge Funds These funds are used to account for the County’s share of tax revenue and other revenue sources that are legally restricted to the maintenance and construction of the County’s roads and bridges. The Road and Bridge Fund is authorized to share with the General Fund the $0.80 per $100.00 valuation which is granted by the Texas Constitution. The Road and Bridge Fund also has authority to assess a special tax of $0.15 per $100.00 valuation.
Park Funds These funds are used to account for the County’s share of tax revenue and other revenue sources that are specifically restricted to the maintenance of the County’s parks. The Park Fund is authorized to share with the General Fund the $.80 per $100 valuation, which is granted by the Texas Constitution. Additionally, Local Government Code Section 331.004 provides for an additional tax that the Park Fund may levy. There is no limit on this tax except for the limits provided by the Texas Constitution.
Law Enforcement Officers Special Education (LEOSE) This fund was created in 1999 to account for revenues received from the state pursuant to Section 1701.157 of the Occupations Code for training of law enforcement officers.
District Attorney Motor Vehicle Theft This fund was created in 1998 to account for the auction proceeds of vehicles that are awarded by court judgment to the district attorney.
District Attorney Bad Check Processing This fund is used to account for fees collected under Article 102.007 (formerly Article 53.08) of the Code of Criminal Procedure. The fund may be used only to defray the salaries and expenses of the prosecutor’s office.
District Attorney Investigation (HB 65) This fund is used to account for confiscations (after October 18, 1989) awarded by court judgment to the District Attorney. Article 59.06 of the Code of Criminal Procedure requires that the attorney use the funds solely for the official purposes of his office.
Drug Abuse Prevention and Rehabilitation This fund was created in 1991 to account for 10% of drug related confiscated funds, awarded by the courts to the County. H.B. 1185, Section 1, Article 59.06, Code of Criminal Procedure requires that funds be used for drug abuse prevention and rehabilitation.
Sheriff Investigation This fund is used to account for confiscations (prior to October 18, 1989) awarded to the Sheriff’s Department.
Sheriff Investigation (HB 65) This fund is used to account for confiscations (after October 18, 1989) awarded to the Sheriff’s Department. Article 59.06 of the Code of Criminal Procedure requires that the funds be used solely for law enforcement purposes.
Sheriff Federal Sharing-U.S. Treasury This fund was created in 1996 to account for court ordered confiscations awarded to the Sheriff’s Department.
Sheriff Federal Sharing-U.S. Department of Justice This fund was created in 1996 to account for court ordered confiscations awarded to the Sheriff’s Department.
Constable Precinct 4 Investigation (HB 65) This fund was created in 1997 to account for court ordered confiscations awarded to the Precinct 4 Constable.
Constable Precinct 5 Investigation (HB 65) This fund was created in 1994 to account for court ordered confiscations awarded to the Precinct 5 Constable.
District Clerk Records Management and Preservation This fund was created in 2003 to account for a $20.00 fee on conviction of an offense in a county court, county court at law, or district court pursuant to Article 102.005 of the Code of Criminal Procedure. The fund may be used only for records management and preservation purposes.
District Clerk Title IV-D This fund was created in 1998 to account for revenue received from the State Attorney General. The fund is used to pay for child support employees at the District Clerk’s Office.
County Clerk Records Management and Preservation This fund was created in 1982 to account for the collection of the County Clerk’s Records Management and Preservation Fees. Section 118.011(b) of the Local Government Code requires that all funds collected from this fee only be spent for specific records management and preservation projects.
County Records Management and Preservation This fund was created in 1993 to account for a $10.00 fee on conviction of an offense in a county court at law or a district court. The fee can only be used for records management and preservation purposes in the County as required by Chapter 203 of the Local Government Code.
Court Reporter Service This fund was created in 1995 in compliance with Section 51.601 of the Government Code. This section states that the clerk of each court that has an official court reporter shall collect a court reporter service fee of $15.00 in the Court Reporter Service Fund as a court cost in each civi l case filed with the clerk to maintain a court reporter who is available for assignment.
Juvenile Delinquency Prevention This fund was created in 1998 to account for a $5.00 fee on conviction of an offense under Section 28.08, Penal Code, in a county court, county court at law, or district court. This fund can be used only to repair damage caused by the commission of offenses, provide educational and intervention programs, and provide to the public rewards for identifying and aiding in the apprehension and prosecution of offenders.
Courthouse Security This fund was created in 1993 to account for the collection of a security fee in accordance with Subchapter A, Chapter 102 of the Code of Criminal Procedure. This fund may be used only to finance items when used for the purpose of providing security services for buildings housing a district, county, justice, or municipal court. Justice Court Technology This fund was created in 2001 to account for fees received on misdemeanor offenses in a justice court to be used only to finance the purchase of technological enhancements for a justice court. The authority to collect this technology fee expires on September 1, 2005.
Probate Court Contributions This fund was created in 2002 to account for additional fees under Government Code Section 51.704 used only for court-related purposes for the support of the statutory probate court in the County.
Appellate Judicial System This fund was created in 2003 to account for a court cost fee of $5.00 for each civil suit filed in a county court, county court at law, probate court, or district court. The fund may be used only to defray the County’s costs incurred for the 13th Court of Appeals.
Tax Assessor/Collector Special Vehicle Inventory This fund was created in 1996 to account for interest generated by the Motor Vehicle Trust Account. Pursuant to Section 23.122 of the Tax Code, the funds may be used solely to defray administration costs of the collector.
Law Library This fund used to maintain a law library in the county courthouse and is financed by special fees charged for each civil case filed in a county or district court, except suits for delinquent taxes pursuant to Chapter 323 of the Local Government Code. The fund may be used only for purchasing or leasing library materials, maintaining the library, or acquiring furniture, shelving, or equipment for the library.
Youth Village This fund was created in 1982 to account for revenues and expenditures related to housing of repeat juvenile offenders.
County Indigent Health Care This fund was created in 1986 in compliance with Article 443f V.T.C.S. to account for eligible indigent health care expenses and state reimbursements for 90% of eligible expenses when such expenses exceed 8% of the County’s general revenue tax levy.
GRANTS
Designated Purpose Grants High Intensity Drug Trafficking Area (HIDTA) Women, Infants, and Children (WIC) Health Department Juvenile Probation Juvenile Post-Adjudication Facility Title IV-E Federal Foster Care Adult Probation These funds were created to account for federal, state, and local grants. Brief descriptions and detailed financial data for each grant within these funds can be found at the end of this section.
RELATED AGENCIES
Community Service Agency This agency administers health and welfare grants received from various federal and state grantors.
Urban County Program This agency administers economic and urban development grants received primarily from the U.S. Department of Housing and Urban Development.
BLENDED COMPONENT UNIT
Drainage District No. 1 (the District) The District was created on April 9, 1908 by order of the Commissioners’ Court of Hidalgo County, Texas, pursuant to an election held within the territory affected. The District is organized as a Conservation and Reclamation district under the provisions of Article XVI, Section 59 of the Texas Constitution.
COUNTY OF HIDALGO, TEXAS EXHIBIT C-3 ROAD AND BRIDGE COUNTY WIDE SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Licenses and permits $ 3,443,000 $ 3,485,000 $ 3,570,322 $ 85,322 Intergovernmental 3,120,000 3,185,768 3,184,814 (954) Charges for services - 275,452 304,837 29,385 Fines and forfeits 5,142,000 4,737,000 4,471,596 (265,404) Interest 50,000 70,000 108,704 38,704 Miscellaneous - - 100 100 Total revenues 11,755,000 11,753,220 11,640,373 (112,847)
EXPENDITURES Current: General government 151,924 353,099 226,013 127,086 Highways and streets 1,408,305 751,180 455,827 295,353 Total expenditures 1,560,230 1,104,279 681,840 422,439
Excess (deficiency) of revenues over (under) expenditures 10,194,770 10,648,941 10,958,533 309,592
OTHER FINANCING SOURCES (USES): Transfers out (10,201,863) (11,013,163) (11,013,163) - Total financing sources (uses) (10,201,863) (11,013,163) (11,013,163) -
Net change in fund balances (7,093) (364,222) (54,630) 309,592
Fund balances at beginning of year, as previously reported - - 478,162 478,162
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 478,162 478,162
Fund balances at the end of year $ (7,093) $ (364,222) $ 423,532 $ 787,754
88 COUNTY OF HIDALGO, TEXAS EXHIBIT C-4 ROAD AND BRIDGE PRECINCT NO. 1 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 91,290 $ 70,381 $ (20,909) Charges for services - - 854 854 Interest 1,000 1,800 2,364 564 Contributions from private sources - 7,487 7,487 - Miscellaneous - 78,729 78,899 170 Total revenues 1,000 179,305 159,985 (19,320)
EXPENDITURES Current: Highways and streets 2,512,036 3,150,951 3,059,678 91,273 Total expenditures 2,512,036 3,150,951 3,059,678 91,273
Excess (deficiency) of revenues over (under) expenditures (2,511,036) (2,971,646) (2,899,693) 71,953
OTHER FINANCING SOURCES (USES): Transfers in 2,550,466 2,761,766 2,761,766 - Transfers out (48,387) (126,186) (120,712) 5,474 Sale of fixed assets - - 358 358 Total financing sources (uses) 2,502,079 2,635,580 2,641,412 5,832
Net change in fund balances (8,957) (336,066) (258,281) 77,785
Fund balances at beginning of year, as previously reported - - 337,066 337,066
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 337,066 337,066
Fund balances at the end of year $ (8,957) $ (336,066) $ 78,785 $ 414,851
89 COUNTY OF HIDALGO, TEXAS EXHIBIT C-5 ROAD AND BRIDGE PRECINCT NO. 2 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 135,727 $ 24,837 $ (110,890) Charges for services - - 925 925 Interest 25,000 35,000 53,897 18,897 Miscellaneous - - 1,083 1,083 Total revenues 25,000 170,727 80,742 (89,985)
EXPENDITURES Current: Highways and streets 2,695,235 5,530,729 3,028,638 2,502,091 Total expenditures 2,695,235 5,530,729 3,028,638 2,502,091
Excess (deficiency) of revenues over (under) expenditures (2,670,235) (5,360,002) (2,947,896) 2,412,106
OTHER FINANCING SOURCES (USES): Transfers in 2,550,466 2,756,466 2,756,466 - Transfers out - (205,871) (182,584) 23,287 Sale of fixed assets - - 3,676 3,676 Total financing sources (uses) 2,550,466 2,550,595 2,577,558 26,963
Net change in fund balances (119,769) (2,809,407) (370,338) 2,439,069
Fund balances at beginning of year, as previously reported - - 2,844,244 2,844,244
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 2,844,244 2,844,244
Fund balances at the end of year $ (119,769) $ (2,809,407) $ 2,473,906 $ 5,283,313
90 COUNTY OF HIDALGO, TEXAS EXHIBIT C-6 ROAD AND BRIDGE PRECINCT NO. 3 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 122,636 $ 23,093 $ (99,543) Interest - 7,700 9,843 2,143 Contributions from private sources - 46,250 48,050 1,800 Miscellaneous - - 10,213 10,213 Total revenues - 176,586 91,199 (85,387)
EXPENDITURES Current: Highways and streets 2,437,310 3,702,972 2,632,320 1,070,652 Total expenditures 2,437,310 3,702,972 2,632,320 1,070,652
Excess (deficiency) of revenues over (under) expenditures (2,437,310) (3,526,386) (2,541,121) 985,265
OTHER FINANCING SOURCES (USES): Transfers in 2,550,466 2,767,251 2,767,251 - Transfers out (109,578) (111,978) (103,425) 8,553 Total financing sources (uses) 2,440,888 2,655,273 2,663,826 8,553
Net change in fund balances 3,578 (871,113) 122,705 993,818
Fund balances at beginning of year, as previously reported (1) (1) 967,109 967,110
Prior period adjustment - - 4,470 4,470
Fund balances at beginning of year, as restated (1) (1) 971,579 971,580
Fund balances at the end of year $ 3,577 $ (871,114) $ 1,094,284 $ 1,965,398
91 COUNTY OF HIDALGO, TEXAS EXHIBIT C-7 ROAD AND BRIDGE PRECINCT NO. 4 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 86,904 $ 63,282 $ (23,622) Charges for services - 1,966 3,576 1,610 Interest - 3,500 5,707 2,207 Contributions from private sources - - (60) (60) Miscellaneous - - 876 876 Total revenues - 92,369 73,381 (18,988)
EXPENDITURES Current: Highways and streets 2,519,730 3,264,669 2,901,115 363,554 Total expenditures 2,519,730 3,264,669 2,901,115 363,554
Excess (deficiency) of revenues over (under) expenditures (2,519,730) (3,172,300) (2,827,734) 344,566
OTHER FINANCING SOURCES (USES): Transfers in 2,550,466 2,777,412 2,777,412 - Transfers out (35,336) (155,178) (87,028) 68,150 Sale of fixed assets - - 20,417 20,417 Total financing sources (uses) 2,515,130 2,622,234 2,710,801 88,567
Net change in fund balances (4,600) (550,066) (116,933) 433,133
Fund balances at beginning of year, as previously reported - 1 557,478 557,477
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - 1 557,478 557,477
Fund balances at the end of year $ (4,600) $ (550,065) $ 440,545 $ 990,610
92 COUNTY OF HIDALGO, TEXAS EXHIBIT C-8 PARKS, COUNTY WIDE SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 1,630,097 $ 1,645,000 $ 1,666,667 $ 21,667 Interest 4,000 11,500 20,368 8,868 Miscellaneous - - 94 94 Total revenues 1,634,097 1,656,500 1,687,129 30,629
EXPENDITURES Current: General government 42,182 42,182 15,322 26,860 Culture and recreation 16,000 16,000 13,185 2,815 Total expenditures 58,182 58,182 28,507 29,675
Excess (deficiency) of revenues over (under) expenditures 1,575,915 1,598,318 1,658,622 60,304
OTHER FINANCING SOURCES (USES): Transfers in 150,000 - - - Transfers out (1,594,528) (1,594,528) (1,594,528) - Total financing sources (uses) (1,444,528) (1,594,528) (1,594,528) -
Net change in fund balances 131,387 3,790 64,094 60,304
Fund balances at beginning of year, as previously reported - - 52,643 52,643
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 52,643 52,643
Fund balances at the end of year $ 131,387 $ 3,790 $ 116,737 $ 112,947
93 COUNTY OF HIDALGO, TEXAS EXHIBIT C-9 PARKS, PRECINCT NO. 1 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 170 $ 474 $ 304 Miscellaneous - - 181 181 Total revenues - 170 655 485
EXPENDITURES Current: Culture and recreation 651,982 671,050 655,448 15,602 Total expenditures 651,982 671,050 655,448 15,602
Excess (deficiency) of revenues over (under) expenditures (651,982) (670,880) (654,793) 16,087
OTHER FINANCING SOURCES (USES): Transfers in 671,982 709,482 709,482 - Sale of fixed assets - - 25 25 Total financing sources (uses) 671,982 709,482 709,507 25
Net change in fund balances 20,000 38,602 54,714 16,112
Fund balances at beginning of year, as previously reported - - (932) (932)
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - (932) (932)
Fund balances at the end of year $ 20,000 $ 38,602 $ 53,782 $ 15,180
94 COUNTY OF HIDALGO, TEXAS EXHIBIT C-10 PARKS, PRECINCT NO. 2 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ - $ 2,000 $ 1,914 $ (86) Interest - 2,000 2,181 181 Miscellaneous - - 59 59 Total revenues - 4,000 4,154 154
EXPENDITURES Current: Culture and recreation 320,655 581,741 380,966 200,775 Total expenditures 320,655 581,741 380,966 200,775
Excess (deficiency) of revenues over (under) expenditures (320,655) (577,741) (376,812) 200,929
OTHER FINANCING SOURCES (USES): Transfers in 320,655 358,155 358,155 - Total financing sources (uses) 320,655 358,155 358,155 -
Net change in fund balances - (219,586) (18,657) 200,929
Fund balances at beginning of year, as previously reported - - 261,096 261,096
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 261,096 261,096
Fund balances at the end of year $ - $ (219,586) $ 242,439 $ 462,025
95 COUNTY OF HIDALGO, TEXAS EXHIBIT C-11 PARKS, PRECINCT NO. 3 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 2,550 $ 3,445 $ 895 Miscellaneous - - 234 234 Total revenues - 2,550 3,679 1,129
EXPENDITURES Current: Culture and recreation 490,001 735,012 628,576 106,436 Total expenditures 490,001 735,012 628,576 106,436
Excess (deficiency) of revenues over (under) expenditures (490,001) (732,462) (624,897) 107,565
OTHER FINANCING SOURCES (USES): Transfers in 527,001 564,501 564,501 - Total financing sources (uses) 527,001 564,501 564,501 -
Net change in fund balances 37,000 (167,961) (60,396) 107,565
Fund balances at beginning of year, as previously reported - (1) 356,649 356,650
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - (1) 356,649 356,650
Fund balances at the end of year $ 37,000 $ (167,962) $ 296,253 $ 464,215
96 COUNTY OF HIDALGO, TEXAS EXHIBIT C-12 PARKS, PRECINCT NO. 4 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 1,100 $ 1,302 $ 202 Miscellaneous - - 4 4 Total revenues - 1,100 1,306 206
EXPENDITURES Current: Culture and recreation 131,889 248,046 118,720 129,326 Total expenditures 131,889 248,046 118,720 129,326
Excess (deficiency) of revenues over (under) expenditures (131,889) (246,946) (117,414) 129,532
OTHER FINANCING SOURCES (USES): Transfers in 131,889 169,389 169,389 - Total financing sources (uses) 131,889 169,389 169,389 -
Net change in fund balances - (77,557) 51,975 129,532
Fund balances at beginning of year, as previously reported - 1 117,205 117,204
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - 1 117,205 117,204
Fund balances at the end of year $ - $ (77,556) $ 169,180 $ 246,736
97 COUNTY OF HIDALGO, TEXAS EXHIBIT C-13 VARIOUS OFFICIALS L.E.O.S.E. SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 50,434 $ 50,433 $ (1) Interest - 600 1,113 513 Miscellaneous - - 584 584 Total revenues - 51,034 52,130 1,096
EXPENDITURES Current: General government - 4,556 1,450 3,106 Public safety - 85,068 44,359 40,709 Total expenditures - 89,624 45,809 43,815
Excess (deficiency) of revenues over (under) expenditures - (38,590) 6,321 44,911
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (38,590) 6,321 44,911
Fund balances at beginning of year, as previously reported - - 39,190 39,190
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 39,190 39,190
Fund balances at the end of year $ - $ (38,590) $ 45,511 $ 84,101
98 COUNTY OF HIDALGO, TEXAS EXHIBIT C-14 DISTRICT ATTORNEY MOTOR VEHICLE THEFT SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 49 $ 49 Miscellaneous - - 50 50 Total revenues - - 99 99
EXPENDITURES Current: General government - 27 - 27 Total expenditures - 27 - 27
Excess (deficiency) of revenues over (under) expenditures - (27) 99 126
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (27) 99 126
Fund balances at beginning of year, as previously reported - - 10,609 10,609
Prior period adjustment - - (4,000) (4,000)
Fund balances at beginning of year, as restated - - 6,609 6,609
Fund balances at the end of year $ - $ (27) $ 6,708 $ 6,735
99 COUNTY OF HIDALGO, TEXAS EXHIBIT C-15 DISTRICT ATTORNEY BAD CHECK PROCESSING SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 200,000 $ 200,000 $ 188,018 $ (11,982) Total revenues 200,000 200,000 188,018 (11,982)
EXPENDITURES Current: General government - 306,139 172,133 134,006 Total expenditures - 306,139 172,133 134,006
Excess (deficiency) of revenues over (under) expenditures 200,000 (106,139) 15,885 122,024
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 200,000 (106,139) 15,885 122,024
Fund balances at beginning of year, as previously reported - - 600,520 600,520
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 600,520 600,520
Fund balances at the end of year $ 200,000 $ (106,139) $ 616,405 $ 722,544
100 COUNTY OF HIDALGO, TEXAS EXHIBIT C-16 DISTRICT ATTORNEY INVESTIGATIVE FUND-HB 65 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Fines and forfeits $ 25,000 $ 75,000 $ 130,595 $ 55,595 Interest 22,000 27,000 31,844 4,844 Miscellaneous 1,200 1,200 752 (448) Total revenues 48,200 103,200 163,191 59,991
EXPENDITURES Current: General government - 343,428 279,776 63,652 Total expenditures - 343,428 279,776 63,652
Excess (deficiency) of revenues over (under) expenditures 48,200 (240,228) (116,585) 123,643
OTHER FINANCING SOURCES (USES): Sale of fixed assets - - 144,683 144,683 Total financing sources (uses) - - 144,683 144,683
Net change in fund balances 48,200 (240,228) 28,098 268,326
Fund balances at beginning of year, as previously reported - - 1,269,551 1,269,551
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 1,269,551 1,269,551
Fund balances at the end of year $ 48,200 $ (240,228) $ 1,297,649 $ 1,537,877
101 COUNTY OF HIDALGO, TEXAS EXHIBIT C-17 DRUG ABUSE AND REHABILITATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Fines and forfeits $ - $ 1,852 $ 1,852 $ - Interest - - 18 18 Total revenues - 1,852 1,870 18
EXPENDITURES Current: Health and welfare - 5,429 5,429 - Total expenditures - 5,429 5,429 -
Excess (deficiency) of revenues over (under) expenditures - (3,577) (3,559) 18
OTHER FINANCING SOURCES (USES): Sale of fixed assets - - 1,940 1,940 Total financing sources (uses) - - 1,940 1,940
Net change in fund balances - (3,577) (1,619) 1,958
Fund balances at beginning of year, as previously reported - - 5,429 5,429
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 5,429 5,429
Fund balances at the end of year $ - $ (3,577) $ 3,810 $ 7,387
102 COUNTY OF HIDALGO, TEXAS EXHIBIT C-18 SHERIFF INVESTIGATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 300 $ 508 $ 208 Total revenues - 300 508 208
EXPENDITURES Current: Public safety - 15,930 - 15,930 Total expenditures - 15,930 - 15,930
Excess (deficiency) of revenues over (under) expenditures - (15,630) 508 16,138
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (15,630) 508 16,138
Fund balances at beginning of year, as previously reported - - 33,196 33,196
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 33,196 33,196
Fund balances at the end of year $ - $ (15,630) $ 33,704 $ 49,334
103 COUNTY OF HIDALGO, TEXAS EXHIBIT C-19 SHERIFF INVESTIGATION FUND-HB 65 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Fines and forfeits $ - $ 8,096 $ 8,096 $ - Interest - 600 1,063 463 Miscellaneous - - 181 181 Total revenues - 8,696 9,340 644
EXPENDITURES Current: Public safety - 74,980 20,673 54,307 Total expenditures - 74,980 20,673 54,307
Excess (deficiency) of revenues over (under) expenditures - (66,284) (11,333) 54,951
OTHER FINANCING SOURCES (USES): Sale of fixed assets - - 1,552 1,552 Total financing sources (uses) - - 1,552 1,552
Net change in fund balances - (66,284) (9,781) 56,503
Fund balances at beginning of year, as previously reported - - 133,511 133,511
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 133,511 133,511
Fund balances at the end of year $ - $ (66,284) $ 123,730 $ 190,014
104 COUNTY OF HIDALGO, TEXAS EXHIBIT C-20 SHERIFF FEDERAL SHARING-U.S. TREASURY SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 650 $ 1,248 $ 598 Miscellaneous - - 193 193 Total revenues - 650 1,441 791
EXPENDITURES Current: Public safety - 77,567 19,393 58,174 Total expenditures - 77,567 19,393 58,174
Excess (deficiency) of revenues over (under) expenditures - (76,917) (17,952) 58,965
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (76,917) (17,952) 58,965
Fund balances at beginning of year, as previously reported - - 77,567 77,567
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 77,567 77,567
Fund balances at the end of year $ - $ (76,917) $ 59,615 $ 136,532
105 COUNTY OF HIDALGO, TEXAS EXHIBIT C-21 SHERIFF FEDERAL SHARING-DEPARTMENT OF JUSTICE SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Fines and forfeits $ - $ - $ 128,069 $ 128,069 Interest - - 34 34 Total revenues - - 128,103 128,103
EXPENDITURES Current: Public safety - 4,732 - 4,732 Total expenditures - 4,732 - 4,732
Excess (deficiency) of revenues over (under) expenditures - (4,732) 128,103 132,835
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (4,732) 128,103 132,835
Fund balances at beginning of year, as previously reported - - 4,732 4,732
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 4,732 4,732
Fund balances at the end of year $ - $ (4,732) $ 132,835 $ 137,567
106 COUNTY OF HIDALGO, TEXAS EXHIBIT C-22 CONSTABLE, PRECINCT 5 - INVESTIGATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 7 $ 7 Total revenues - - 7 7
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - - 7 7
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - - 7 7
Fund balances at beginning of year, as previously reported - - 1,436 1,436
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 1,436 1,436
Fund balances at the end of year $ - $ - $ 1,443 $ 1,443
107 COUNTY OF HIDALGO, TEXAS EXHIBIT C-23 DISTRICT CLERK RECORDS MANAGEMENT & PRESERVATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ - $ 20,000 $ 25,258 $ 5,258 Interest - - 141 141 Total revenues - 20,000 25,399 5,399
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - 20,000 25,399 5,399
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - 20,000 25,399 5,399
Fund balances at beginning of year, as previously reported - - - -
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - - -
Fund balances at the end of year $ - $ 20,000 $ 25,399 $ 5,399
108 COUNTY OF HIDALGO, TEXAS EXHIBIT C-24 DISTRICT CLERK TITLE IV-D SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 400 $ 351 $ (49) Interest - - 1 1 Total revenues - 400 352 (48)
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - 400 352 (48)
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - 400 352 (48)
Fund balances at beginning of year, as previously reported - - 15 15
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 15 15
Fund balances at the end of year $ - $ 400 $ 367 $ (33)
109 COUNTY OF HIDALGO, TEXAS EXHIBIT C-25 COUNTY CLERK RECORDS MANAGEMENT AND PRESERVATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 600,000 $ 690,000 $ 684,026 $ (5,974) Interest 500 3,000 6,074 3,074 Total revenues 600,500 693,000 690,100 (2,900)
EXPENDITURES Current: General government 669,277 738,657 598,606 140,051 Total expenditures 669,277 738,657 598,606 140,051
Excess (deficiency) of revenues over (under) expenditures (68,777) (45,657) 91,494 137,151
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances (68,777) (45,657) 91,494 137,151
Fund balances at beginning of year, as previously reported - - 270,685 270,685
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 270,685 270,685
Fund balances at the end of year $ (68,777) $ (45,657) $ 362,179 $ 407,836
110 COUNTY OF HIDALGO, TEXAS EXHIBIT C-26 COUNTY RECORDS MANAGEMENT AND PRESERVATION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 165,000 $ 151,000 $ 157,863 $ 6,863 Interest - - 212 212 Total revenues 165,000 151,000 158,075 7,075
EXPENDITURES Current: General government 301,392 301,392 237,350 64,042 Total expenditures 301,392 301,392 237,350 64,042
Excess (deficiency) of revenues over (under) expenditures (136,392) (150,392) (79,275) 71,117
OTHER FINANCING SOURCES (USES): Transfers in 136,392 110,310 110,310 - Total financing sources (uses) 136,392 110,310 110,310 -
Net change in fund balances - (40,082) 31,035 71,117
Fund balances at beginning of year, as previously reported - 1 40,081 40,080
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - 1 40,081 40,080
Fund balances at the end of year $ - $ (40,081) $ 71,116 $ 111,197
111 COUNTY OF HIDALGO, TEXAS EXHIBIT C-27 COURT REPORTER SERVICE FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 130,000 $ 123,000 $ 126,365 $ 3,365 Interest - - 115 115 Total revenues 130,000 123,000 126,480 3,480
EXPENDITURES Current: General government 130,000 340,762 305,683 35,079 Total expenditures 130,000 340,762 305,683 35,079
Excess (deficiency) of revenues over (under) expenditures - (217,762) (179,203) 38,559
OTHER FINANCING SOURCES (USES): Transfers in - 192,000 192,000 - Total financing sources (uses) - 192,000 192,000 -
Net change in fund balances - (25,762) 12,797 38,559
Fund balances at beginning of year, as previously reported - - 25,762 25,762
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 25,762 25,762
Fund balances at the end of year $ - $ (25,762) $ 38,559 $ 64,321
112 COUNTY OF HIDALGO, TEXAS EXHIBIT C-28 JUVENILE DELINQUENCY PREVENTION FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ - $ 54 $ 124 $ 70 Interest - - 2 2 Total revenues - 54 126 72
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - 54 126 72
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - 54 126 72
Fund balances at beginning of year, as previously reported - - 456 456
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 456 456
Fund balances at the end of year $ - $ 54 $ 582 $ 528
113 COUNTY OF HIDALGO, TEXAS EXHIBIT C-29 COURT HOUSE SECURITY FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 280,000 $ 290,050 $ 287,368 $ (2,682) Interest 20,000 20,000 24,908 4,908 Miscellaneous - 555 555 - Total revenues 300,000 310,605 312,831 2,226
EXPENDITURES Current: Public safety 431,851 527,867 475,644 52,223 Total expenditures 431,851 527,867 475,644 52,223
Excess (deficiency) of revenues over (under) expenditures (131,851) (217,262) (162,813) 54,449
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances (131,851) (217,262) (162,813) 54,449
Fund balances at beginning of year, as previously reported - - 1,100,691 1,100,691
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 1,100,691 1,100,691
Fund balances at the end of year $ (131,851) $ (217,262) $ 937,878 $ 1,155,140
114 COUNTY OF HIDALGO, TEXAS EXHIBIT C-30 JUSTICE COURT TECHNOLOGY FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 95,000 $ 105,000 $ 101,737 $ (3,263) Interest - 1,900 3,891 1,991 Total revenues 95,000 106,900 105,628 (1,272)
EXPENDITURES Current: General government - 130,445 70,418 60,027 Total expenditures - 130,445 70,418 60,027
Excess (deficiency) of revenues over (under) expenditures 95,000 (23,545) 35,210 58,755
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 95,000 (23,545) 35,210 58,755
Fund balances at beginning of year, as previously reported - - 167,497 167,497
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 167,497 167,497
Fund balances at the end of year $ 95,000 $ (23,545) $ 202,707 $ 226,252
115 COUNTY OF HIDALGO, TEXAS EXHIBIT C-31 CONTRIBUTIONS FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ 30,000 $ 40,000 $ 64,053 $ 24,053 Interest - 950 1,763 813 Total revenues 30,000 40,950 65,816 24,866
EXPENDITURES Current: General government - 51,500 19,156 32,344 Total expenditures - 51,500 19,156 32,344
Excess (deficiency) of revenues over (under) expenditures 30,000 (10,550) 46,660 57,210
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 30,000 (10,550) 46,660 57,210
Fund balances at beginning of year, as previously reported - - 96,430 96,430
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 96,430 96,430
Fund balances at the end of year $ 30,000 $ (10,550) $ 143,090 $ 153,640
116 COUNTY OF HIDALGO, TEXAS EXHIBIT C-32 TAX ASSESSOR/COLLECTOR (T.A.C.) SPECIAL VEHICLE INVENTORY FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 20,000 $ 20,000 $ 18,123 $ (1,877) Interest 3,000 2,500 11,329 8,829 Total revenues 23,000 22,500 29,452 6,952
EXPENDITURES Current: General government 56,936 54,705 40,156 14,549 Total expenditures 56,936 54,705 40,156 14,549
Excess (deficiency) of revenues over (under) expenditures (33,936) (32,205) (10,704) 21,501
OTHER FINANCING SOURCES (USES): Transfers out - (15,866) (14,841) 1,025 Total financing sources (uses) - (15,866) (14,841) 1,025
Net change in fund balances (33,936) (48,071) (25,545) 22,526
Fund balances at beginning of year, as previously reported - - 72,024 72,024
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 72,024 72,024
Fund balances at the end of year $ (33,936) $ (48,071) $ 46,479 $ 94,550
117 COUNTY OF HIDALGO, TEXAS EXHIBIT C-33 LAW LIBRARY FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 272,000 $ 270,000 $ 268,615 $ (1,385) Interest - 4,800 7,942 3,142 Total revenues 272,000 274,800 276,557 1,757
EXPENDITURES Current: General government 284,244 285,634 232,974 52,660 Total expenditures 284,244 285,634 232,974 52,660
Excess (deficiency) of revenues over (under) expenditures (12,244) (10,834) 43,583 54,417
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances (12,244) (10,834) 43,583 54,417
Fund balances at beginning of year, as previously reported - - 324,176 324,176
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 324,176 324,176
Fund balances at the end of year $ (12,244) $ (10,834) $ 367,759 $ 378,593
118 COUNTY OF HIDALGO, TEXAS EXHIBIT C-34 YOUTH VILLAGE FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ - $ 170,000 $ 129,840 $ (40,160) Interest 500 4,100 5,191 1,091 Total revenues 500 174,100 135,031 (39,069)
EXPENDITURES Current: Public safety - 512,663 472,456 40,207 Total expenditures - 512,663 472,456 40,207
Excess (deficiency) of revenues over (under) expenditures 500 (338,563) (337,425) 1,138
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 500 (338,563) (337,425) 1,138
Fund balances at beginning of year, as previously reported - - 388,600 388,600
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 388,600 388,600
Fund balances at the end of year $ 500 $ (338,563) $ 51,175 $ 389,738
119 COUNTY OF HIDALGO, TEXAS EXHIBIT C-35 HIDALGO COUNTY INDIGENT HEALTH CARE FUND SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 2,031,741 $ 1,616,916 $ (414,825) Interest - 22,000 24,443 2,443 Miscellaneous - 1,403 72,244 70,841 Total revenues - 2,055,144 1,713,603 (341,541)
EXPENDITURES Current: Health and welfare 6,900,000 11,118,526 11,110,755 7,771 Total expenditures 6,900,000 11,118,526 11,110,755 7,771
Excess (deficiency) of revenues over (under) expenditures (6,900,000) (9,063,382) (9,397,152) (333,770)
OTHER FINANCING SOURCES (USES): Transfers in 6,900,000 6,900,000 6,900,000 - Total financing sources (uses) 6,900,000 6,900,000 6,900,000 -
Net change in fund balances - (2,163,382) (2,497,152) (333,770)
Fund balances at beginning of year, as previously reported - - 2,502,968 2,502,968
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 2,502,968 2,502,968
Fund balances at the end of year $ - $ (2,163,382) $ 5,816 $ 2,169,198
120 COUNTY OF HIDALGO, TEXAS EXHIBIT C-36 DRAINAGE DISTRICT NO. 1 SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 6,558,407 $ 6,558,407 $ 7,032,698 $ 474,291 Charges for services 83,000 83,000 93,750 10,750 Interest 100,000 100,000 178,662 78,662 Miscellaneous 80,000 80,000 538,978 458,978 Total revenues 6,821,407 6,821,407 7,844,088 1,022,681
EXPENDITURES Current: General government 1,455,789 1,542,884 1,218,222 324,662 Drainage flood control 5,787,786 6,330,643 5,039,292 1,291,351 Total expenditures 7,243,575 7,873,527 6,257,514 1,616,013
Excess (deficiency) of revenues over (under) expenditures (422,168) (1,052,120) 1,586,574 2,638,694
OTHER FINANCING SOURCES (USES): Transfers out - (426,354) (426,354) - Sale of fixed assets - - 72,870 72,870 Total financing sources (uses) - (426,354) (353,484) 72,870
Net change in fund balances (422,168) (1,478,474) 1,233,090 2,711,564
Fund balances at beginning of year, as previously reported - - 4,226,559 4,226,559
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 4,226,559 4,226,559
Fund balances at the end of year $ (422,168) $ (1,478,474) $ 5,459,649 $ 6,938,123
121
COUNTY OF HIDALGO, TEXAS Grants December 31, 2004
Designated Purpose Grants
Texas Court Improvement Project This is a federal grant to improve the judicial handling of child abuse and neglect for children in protective or foster care.
Indigent Defense Discretionary Grant The grant is from the Task Force on Indigent Defense for the purpose of purchasing and installing electronic equipment to enable telecommunication between prisoners at the jail, their defense attorneys and the court system. This grant is in compliance with the Fair Defense Act.
Juvenile Justice Accountability Program The grant is to promote greater accountability of juveniles in the juvenile justice system.
Combined Government Drug Enforcement and Special Crimes Task Force (Narcotics Trafficking Task Force) The purpose of this grant is to dismantle and/or disrupt through interdiction, investigation and prosecution identified drug trafficking organizations. This program creates a system that empowers agencies to synchronize their efforts. In addition to providing additional equipment and technology, the program enables drug control agencies to pioneer new ways of collaboration.
District Attorney - Child Protective Services Court This grant is to improve the judicial handling of child abuse and neglect for children in protective or foster care.
LLEBG Auxiliary Court This grant provides funds to units of local government for the purposes of reducing crime and improving public safety. Funds may also be used to contract with private, non-profit entities or community-based organizations to carry out the purposes of their Block Grants Program.
District Attorney State Supplement This grant is for the payment of salaries of assistant district attorneys, investigators, and/or secretarial help and expenses, including travel for these personnel as determined by the district attorney, criminal district attorney, and county attorneys.
Victim Coordinator Liaison Grant This grant is used to enhance crime victim services in the community.
Tax Assessor/Collector Automobile Title and Registration Division (TACATRD) This grant is from the Texas Automobile Theft Prevention Authority to help fund the recovery of stolen vehicles when they are discovered through the title and registration process.
Sheriff’s COPS in School The purpose of this grant is to increase police presence and improve cooperative efforts between law enforcement agencies and members of the community; to expand community policing efforts; to increase security and reduce violence in our nation’s schools; to address crime and disorder problems and to otherwise enhance public safety.
South Texas Auto Theft Enforcement This grant is from the Texas Department of Transportation. It involves an interlocal agreement between Hidalgo County and Cameron County in an effort to combat the high incidence of auto theft in the South Texas region.
Victim Assistance This grant is used to enhance crime victim services in the community.
COPS More 2002 This grant allows law enforcement agencies to purchase technology and equipment or hire civilian support staff, allowing sworn officers to be redeployed back to the streets engaging in community policing initiatives.
COPS Mercedes This grant provides for the funding of salaries and fringe benefits of officers assigned at the Mercedes school district in support of the COPS in School Program.
COPS Sharyland This grant provides for the funding of salaries and fringe benefits of officers assigned at the Sharyland school district in support of the COPS in School Program.
COPS Weslaco This grant provides for the funding of salaries and fringe benefits of officers assigned at the Weslaco school district in support of the COPS in School Program.
Cops Universal Hiring This grant provides funding directly to law enforcement agencies for the hiring of new or additional law enforcement officers.
Purchase of Juvenile Justice Alternatives This grant is to assist in juvenile justice and delinquency prevention.
Stop Truancy on Patrol (STOP) This grant makes available truant officers at the schools to work with at-risk youth to encourage them to continue their education.
Specialized Treatment and Rehabilitation (STAR) Project This grant is from the McAllen Independent School District for at-risk youth from McAllen ISD. This specialized disciplinary program is thought to be a more cost-effective alternative to the incarceration, suspension, or expulsion of at-risk youth.
GED Connection & Job Readiness Grant (Lower Rio Grande Valley Workforce Development Board) Funding is used for providing classroom-training instruction necessary to obtain a GED and to provide job search leadership development opportunities for 50 out of school youths.
GED Connection & Job Readiness Grant (Urban County) Funding is used for providing classroom-training materials and supplies associated with the Lower Rio Grande Valley Workforce Development Board GED Connection & Job Readiness grant.
GED Connection & Job Readiness Grant (Rio Grande Valley Empowerment Zone) Funding is used for providing office furniture and equipment associated with the Lower Rio Grande Valley Workforce Development Board GED Connection & Job Readiness grant.
Homeland Security Grants Funding used for the procurement and management of equipment used to respond to terrorism incidents involving chemical, biological, nuclear, radiological, incendiary and explosive devices. FEMA Grant Funding is used to identify and prioritize Hidalgo County’s flood mapping needs and develop a scope of study to produce and updated digital flood map.
Early Prevention Program This grant is to enable juvenile courts and the Juvenile Probation Department to be more effective and efficient in holding juvenile offenders accountable for their behavior, thus reducing recidivism.
Lower Rio Grande Valley Development Council This Grant is funded through Texas Commission on Environmental Quality. These funds must be used for projects involving reducing, recycling, or composting solid waste. Additionally, funds may also be used for community collection stations and educational or training demonstrations.
High Intensity Drug Trafficking Area (HIDTA)
This grant is from the Office of National Drug Control Policy to significantly reduce drug trafficking and related money laundering and violent crimes.
Women, Infants and Children (WIC)
WIC Administration The purpose of this grant is to provide supplemental nutritious food, nutrition education, and referrals to health care providers at no cost to low-income pregnant, breastfeeding, and postpartum women, infants, and children to age five determined to be at nutritional risk. WIC Breastfeeding The purpose of this grant is to provide supplemental food instruments, nutrition education and counseling to enhance good health care at no cost to low-income pregnant and postpartum women, infants and children identified to be at nutritional risk.
Health Department
Health Department Administration Program Income Percentage of revenue retained from fees for services to non-eligible participants used for the general operation of the Health Department not funded by other sources.
Office of Public Health Practice (OPHP) The purpose of this grant is to improve or strengthen local public health infrastructure by utilizing resources provided through this contract to conduct activities and services that provide or support the delivery of essential public health services.
Tuberculosis Control The purpose of this grant is to develop and provide basic services for tuberculosis (TB) prevention and control and expand outreach services to individuals of identified sub-groups who have tuberculosis or who are at high risk of developing tuberculosis throughout the performing agency’s defined service area.
Tuberculosis Elimination The purpose of this grant is to assist state and local health agencies in carrying out tuberculosis control activities designed to prevent transmission of infection and disease.
Immunization The purpose of this grant is to prevent, control, and eliminate vaccine-preventable diseases.
Immunization Program Income Local revenue generated from non-eligible client population who receive immunizations.
Bioterrorism The purpose of this grant is to assist state and local health authorities in controlling communicable diseases, chronic diseases and disorders and other preventable health conditions.
Service Delivery Integration (SDI) The purpose of this grant is to develop, modify, and evaluate activities, tools and processes, which facilitate integration of Primary Health Care, Title V Maternal and Child Health Services, Title XX Family Planning and/or Tuberculosis Elimination.
Juvenile Probation
Progressive Sanctions – Level 5 Placements Partial cost reimbursement for costs incurred for court ordered level 5 or higher juvenile placements.
Community Corrections Assistance Program (TJPC-Y) The purpose of this grant is to develop community alternatives for juveniles at risk of commitment to the Texas Youth Commission.
TEA–Juvenile Justice Alternative Education Program (TEA-JJAEP) The purpose of this grant is to fund salaries and benefits for administration of Juvenile Justice Alternative Education programs that benefit students that are expelled from public schools.
Juvenile Justice Alternative Education Program – Donna ISD Cost reimbursement by Donna ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – La Joya ISD Cost reimbursement by La Joya ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program (TJPC-P) State funding based on cost reimbursement for counties with a population of 125,000 or more for operation of Juvenile Justice Alternative Education Program for students that have been expelled from public schools under Category A, mandatory expulsion.
Juvenile Justice Alternative Education Program – McAllen ISD Cost reimbursement by McAllen ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – PSJA ISD Cost reimbursement by PSJA ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – Sharyland ISD Cost reimbursement by Sharyland ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – Edinburg ISD Cost reimbursement by Edinburg ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – Edcouch-Elsa ISD Cost reimbursement by Edcouch-Elsa ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – Discretionary Balancing account for excess revenue from school districts resulting when the month’s actual billing from the contractor differs from the amount received (as per agreement) by the school district. The differences are caused by the different methods of calculating cost per student by the County and by the contractor. The revenue is used when the County must pay more in a particular month than the amount received from the school district for Juvenile Justice Alternative Education Programs for students that are expelled from public schools under Category B and C of section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – Mission ISD Cost reimbursement by Mission ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Juvenile Justice Alternative Education Program – Monte Alto ISD Cost reimbursement by Monte Alto ISD for Juvenile Justice Alternative Programs, Category B or C for students expelled from school as per Section 37.011, Texas Education Code.
Criminal Justice Department – Juvenile Accountability Incentive Block Grant (CJD-JAIB) This grant is administered through the Criminal Justice Division of the Governor’s Office. Funds are designated for use in offsetting the costs to reduce juvenile crime. Its function is to aid juvenile justice court operations and provide juvenile service for the prevention of juvenile delinquency.
Post-Adjudication Juvenile Boot Camp
State funds to aid in the operational costs of the Juvenile Post-Adjudication Facility (Boot Camp) for juveniles sent to the facility by order of the court.
Title IV-E Federal Foster Care
Foster Care Reimbursement of eligible juvenile probation children who qualify under Title IV-E for juvenile court order placement at a pre-determined rate as established by the Texas Department of Protective and Regulatory Services.
Enhanced Administration The purpose of this grant is for payment of non-secure placement facilities for juvenile offenders as sentenced by the court.
Adult Probation
Basic Supervision Funding is used to cover the basic costs of the CSCD in providing services to offenders such as employee’s salaries, training, and supplies.
Restitution Center Funding is used for probationers who are in the restitution center.
Mentally Impaired Funding is used for probationers who have mental incapacity.
Community Corrections (Boot Camp) Funding for the maintenance of the boot camp facility and costs associated with its operations.
TAIP Funding is used for substance abuse screening, assessment, referral and treatment of offenders who do not qualify or can not afford any other treatment.
Drug Court Funding is used for probationers for drug court expenses.
Sex Offenders Funding is used for probationers who are sex offenders.
Border Colonia Access Program
To enhance and construct public roadway infrastructure of colonia access roads in Hidalgo County.
DEBT SERVICE FUNDS
Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.
COUNTY OF HIDALGO, TEXAS Debt Service Funds December 31, 2004
Notes Payable This fund accounts for the accumulation of resources for, and the payment of, principal and interest on the County’s long-term notes. As of December 31, 2004, the County had 24 notes outstanding. Financing for 14 of the notes is provided by an annual property tax levy. Transfers in from the individual funds that incurred the debt finance the remaining notes.
General Obligation Refunding Bonds, Series 1996 This fund accounts for the payment of principal and interest on bonds issued in 1996 in the amount of $4,085,000. The bonds were issued for the purpose of (i) refunding a court settlement agreement entered into by Hidalgo County in reference to past due compensation for overtime work by employees in the Sheriff’s Department and (ii) refunding the General Obligation Refunding Bonds, Series 1995.
General Obligation Refunding Bonds, Series 1998 This fund accounts for the payment of principal and interest on bonds issued in 1998 in the amount of $5,845,000. The bonds were issued to advance refund portions of the General Obligation Refunding Bonds, Series 1990, 1991, and Certificates of Obligation, Series 1990-A.
Certificate of Obligations, Series 1998 This fund accounts for the payment of principal and interest on certificates of obligation issued in 1998 in the amount of $6,990,000. The certificates were issued for the construction of health clinics, (ii) construction of a county general services building, (iii) improvements to county buildings to satisfy the requirements of the Americans with Disabilities Act, (iv) the purchase of land and a building to serve as an adult restitution center, (v) the payment of professional services for the development of plans for roadways, and (vi) the payment of legal, fiscal, engineering, architectural and professional fees for services connected with these projects.
Certificate of Obligations, Series 2000 This fund accounts for payment of principal and interest on certificates of obligation issued in 2000 in the amount of $48,160,000. The certificates were issued for (i) the construction and equipping of a County detention facility and law enforcement center, (ii) the construction and equipping of a maintenance facility related to the detention facility, (iii) the purchase of a necessary site for expansion and improvement of the juvenile detention center, and (iv) the payment of surveying, architectural, engineering, and other professional services.
Certificate of Obligations, Series 2001 This fund accounts for the payment of principal and interest on certificates of obligation issued in 2001 in the amount of $25,675,000. The certificates were issued to pay for (i) improvements to County roads (including acquisition of right of way), (ii) the County juvenile detention facility, (iii) construction of a new County courthouse parking lot, (iv) improvements to County buildings, (v) clean up and closure of County landfill, (vi) acquisition of equipment, (vii) land acquisition and construction of a park, and (viii) professional services to undertake aerial surveying and mapping for planning long-range road, transportation, and drainage improvements.
Certificate of Obligations, Series 2002 This fund accounts for the payment of principal and interest on certificates of obligation issued in 2002 in the amount of $20,910,000. The certificates were issued to pay for (i) the construction of new County buildings, (ii) renovation of buildings (including ADA compliance), (iii) clean up and closure of County landfill, (iv) the acquisition of motor vehicles and road construction and repair equipment, (v) acquisition of computer software and hardware, (vi) acquisition of emergency management equipment, (vii) improvements to drainage system, and (viii) professional services to undertake engineering and planning of long-range road, transportation, and drainage improvements.
Certificate of Obligations, Series 2004 This fund accounts for the payment of principal and interest on certificates of obligation issued in 2004 in the amount of $32,250,000. The certificates were issued to pay for (i) the construction of Hidalgo County Juvenile Justice Center and all construction related costs, (ii) the acquisition of new federally mandated electronic voting equipment/systems and related software and computer equipment, (iii) the renovations and major repairs, and parking lot resurfacing, (iv) road/street construction, ROW acquisition, and improvement including engineering services, related traffic signaling equipment, and heavy and other equipment, (v) park improvement and construction including ROW acquisition, Precinct/County facility, (vi) renovation of the old jail, and (vii) the purchase of office equipment, computer equipment, computer software, vehicles, law enforcement equipment, and heavy and other equipment for various departments.
COUNTY OF HIDALGO, TEXAS EXHIBIT C-40 NOTES PAYABLE DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 831,654 $ 842,731 $ 868,846 $ 26,115 Interest - - 3,094 3,094 Miscellaneous - - 66 66 Total revenues 831,654 842,731 872,006 29,275
EXPENDITURES Current: General government 28,235 28,235 8,580 19,655 Debt service: Principal 847,359 847,359 797,359 50,000 Interest and fiscal charges 157,370 157,370 70,083 87,287 Total expenditures 1,032,964 1,032,964 876,022 156,942
Excess (deficiency) of revenues over (under) expenditures (201,310) (190,233) (4,016) 186,217
OTHER FINANCING SOURCES (USES): Transfers in 244,201 244,201 226,142 (18,059) Total financing sources (uses) 244,201 244,201 226,142 (18,059)
Net change in fund balances 42,891 53,968 222,126 168,158
Fund balances at beginning of year, as previously reported - - 154,394 154,394
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 154,394 154,394
Fund balances at the end of year $ 42,891 $ 53,968 $ 376,520 $ 322,552
140 COUNTY OF HIDALGO, TEXAS EXHIBIT C-41 ROAD DISTRICT NO. 5 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ - $ 7,583 $ 7,584 $ 1 Interest - 300 273 (27) Total revenues - 7,883 7,857 (26)
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - 7,883 7,857 (26)
OTHER FINANCING SOURCES (USES): Transfers out - (16,785) (16,785) - Total financing sources (uses) - (16,785) (16,785) -
Net change in fund balances - (8,902) (8,928) (26)
Fund balances at beginning of year, as previously reported - - 8,928 8,928
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 8,928 8,928
Fund balances at the end of year $ - $ (8,902) $ - $ 8,902
141 COUNTY OF HIDALGO, TEXAS EXHIBIT C-42 ROAD DISTRICT NO. 15 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ - $ 1,378 $ 1,377 $ (1) Interest - - 21 21 Total revenues - 1,378 1,398 20
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - 1,378 1,398 20
OTHER FINANCING SOURCES (USES): Transfers out - (1,946) (1,946) - Total financing sources (uses) - (1,946) (1,946) -
Net change in fund balances - (568) (548) 20
Fund balances at beginning of year, as previously reported - - 548 548
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 548 548
Fund balances at the end of year $ - $ (568) $ - $ 568
142 COUNTY OF HIDALGO, TEXAS EXHIBIT C-43 GENERAL OBLIGATION REFUNDING BONDS - SERIES 1996 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 749,847 $ 790,341 $ 774,500 $ (15,841) Interest 2,000 7,500 9,946 2,446 Miscellaneous - - 23 23 Total revenues 751,847 797,841 784,469 (13,372)
EXPENDITURES Current: General government 16,524 16,524 7,354 9,170 Debt service: Principal 485,000 485,000 485,000 - Interest and fiscal charges 76,400 76,400 76,307 93 Total expenditures 577,924 577,924 568,661 9,263
Excess (deficiency) of revenues over (under) expenditures 173,923 219,917 215,808 (4,109)
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 173,923 219,917 215,808 (4,109)
Fund balances at beginning of year, as previously reported - - 46,805 46,805
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 46,805 46,805
Fund balances at the end of year $ 173,923 $ 219,917 $ 262,613 $ 42,696
143 COUNTY OF HIDALGO, TEXAS EXHIBIT C-44 GENERAL OBLIGATION REFUNDING BONDS - SERIES 1998 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 1,019,313 $ 1,031,170 $ 1,051,383 $ 20,213 Interest 6,000 10,500 12,983 2,483 Miscellaneous - - 55 55 Total revenues 1,025,313 1,041,670 1,064,421 22,751
EXPENDITURES Current: General government 26,868 26,518 9,958 16,560 Debt service: Principal 715,000 715,000 715,000 - Interest and fiscal charges 167,108 167,458 167,458 - Total expenditures 908,976 908,976 892,416 16,560
Excess (deficiency) of revenues over (under) expenditures 116,337 132,694 172,005 39,311
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 116,337 132,694 172,005 39,311
Fund balances at beginning of year, as previously reported 1 1 106,100 106,099
Prior period adjustment - - - -
Fund balances at beginning of year, as restated 1 1 106,100 106,099
Fund balances at the end of year $ 116,338 $ 132,695 $ 278,105 $ 145,410
144 COUNTY OF HIDALGO, TEXAS EXHIBIT C-45 CERTIFICATES OF OBLIGATION - SERIES 1998 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 490,231 $ 496,561 $ 508,199 $ 11,638 Interest 2,000 4,200 6,536 2,336 Miscellaneous - - 17 17 Total revenues 492,231 500,761 514,752 13,991
EXPENDITURES Current: General government 13,265 12,915 4,903 8,012 Debt service: Principal 35,000 35,000 35,000 - Interest and fiscal charges 324,100 324,450 324,450 - Total expenditures 372,365 372,365 364,353 8,012
Excess (deficiency) of revenues over (under) expenditures 119,866 128,396 150,399 22,003
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 119,866 128,396 150,399 22,003
Fund balances at beginning of year, as previously reported - - 90,435 90,435
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 90,435 90,435
Fund balances at the end of year $ 119,866 $ 128,396 $ 240,834 $ 112,438
145 COUNTY OF HIDALGO, TEXAS EXHIBIT C-46 CERTIFICATES OF OBLIGATION - SERIES 2000 (JAIL PROJECT) DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 3,798,724 $ 3,794,218 $ 3,870,098 $ 75,880 Interest 25,000 32,000 36,844 4,844 Miscellaneous - - 239 239 Total revenues 3,823,724 3,826,218 3,907,181 80,963
EXPENDITURES Current: General government 99,049 99,049 35,239 63,810 Debt service: Principal 1,650,000 1,650,000 1,650,000 - Interest and fiscal charges 2,324,493 2,324,493 2,324,193 300 Total expenditures 4,073,542 4,073,542 4,009,432 64,110
Excess (deficiency) of revenues over (under) expenditures (249,818) (247,324) (102,251) 145,073
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances (249,818) (247,324) (102,251) 145,073
Fund balances at beginning of year, as previously reported - 1 741,755 741,754
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - 1 741,755 741,754
Fund balances at the end of year $ (249,818) $ (247,323) $ 639,504 $ 886,827
146 COUNTY OF HIDALGO, TEXAS EXHIBIT C-47 CERTIFICATES OF OBLIGATION - SERIES 2001 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 1,951,968 $ 1,970,902 $ 2,000,550 $ 29,648 Interest 10,000 15,500 19,383 3,883 Miscellaneous - - 126 126 Total revenues 1,961,968 1,986,402 2,020,059 33,657
EXPENDITURES Current: General government 53,982 53,982 18,539 35,443 Debt service: Principal 610,000 610,000 610,000 - Interest and fiscal charges 1,257,830 1,257,830 1,257,430 400 Total expenditures 1,921,812 1,921,812 1,885,969 35,843
Excess (deficiency) of revenues over (under) expenditures 40,156 64,590 134,090 69,500
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 40,156 64,590 134,090 69,500
Fund balances at beginning of year, as previously reported - - 325,573 325,573
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 325,573 325,573
Fund balances at the end of year $ 40,156 $ 64,590 $ 459,663 $ 395,073
147 COUNTY OF HIDALGO, TEXAS EXHIBIT C-48 CERTIFICATES OF OBLIGATION - SERIES 2002 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 1,210,078 $ 1,227,902 $ 1,259,020 $ 31,118 Interest 10,000 12,300 17,643 5,343 Miscellaneous - - 121 121 Total revenues 1,220,078 1,240,202 1,276,784 36,582
EXPENDITURES Current: General government 46,528 46,528 12,257 34,271 Debt service: Principal 135,000 135,000 135,000 - Interest and fiscal charges 977,294 977,294 976,944 350 Total expenditures 1,158,822 1,158,822 1,124,201 34,621
Excess (deficiency) of revenues over (under) expenditures 61,256 81,380 152,583 71,203
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 61,256 81,380 152,583 71,203
Fund balances at beginning of year, as previously reported - - 400,959 400,959
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 400,959 400,959
Fund balances at the end of year $ 61,256 $ 81,380 $ 553,542 $ 472,162
148 COUNTY OF HIDALGO, TEXAS EXHIBIT C-49 CERTIFICATES OF OBLIGATION - SERIES 2004 DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 150,533 $ 150,533 Total revenues - - 150,533 150,533
EXPENDITURES Current: Total expenditures - - - -
Excess (deficiency) of revenues over (under) expenditures - - 150,533 150,533
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - - 150,533 150,533
Fund balances at beginning of year, as previously reported - - - -
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - - -
Fund balances at the end of year $ - $ - $ 150,533 $ 150,533
149 COUNTY OF HIDALGO, TEXAS EXHIBIT C-50 DRAINAGE DISTRICT NO. 1 DEBT SERVICE DEBT SERVICE FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Taxes $ 85,072 $ 85,072 $ 92,940 $ 7,868 Interest - - 203 203 Total revenues 85,072 85,072 93,143 8,071
EXPENDITURES Current: General government 842 842 - 842 Total expenditures 842 842 - 842
Excess (deficiency) of revenues over (under) expenditures 84,230 84,230 93,143 8,913
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances 84,230 84,230 93,143 8,913
Fund balances at beginning of year, as previously reported - - 8,032 8,032
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 8,032 8,032
Fund balances at the end of year $ 84,230 $ 84,230 $ 101,175 $ 16,945
150
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital projects (other than those financed by proprietary funds and trust funds).
COUNTY OF HIDALGO, TEXAS Capital Projects Funds December 31, 2004
Capital Outlay Fund This fund was created in 2004 to account for the renovations and improvements to the K-Mart Property located in Edinburg, Texas for the relocation of various departments currently housed in the Administration Building. A $2,800,000 tax note is the funding source for this project.
Road District No. 5 This fund is used to account for road improvements in Road District No. 5. The voters in this District voted to issue $3,500,000 in bonds to finance the road improvements.
Capital Improvement Fund This fund was created in 1998 to account for the construction of an office for the Justice of the Peace in Elsa, Texas. Funding for this project was provided by a transfer-in from the General Fund.
Border Colonia Access Program This fund was created in 2002 to account for the construction of colonia access roads. Funding for this project is provided by the Texas Department of Transportation on a cost reimbursement basis.
TXDOT Projects Fund This fund was created in 2004 to account for the construction and paving of county and state roads in an effort to create an efficient transportation system for the growing population. Funding for these projects is on a partial and full reimbursements basis from the Texas Department of Transportation.
County Buildings Renovation This fund was created in 1999 to account for the construction of two courtrooms for the 389th and 398th District Courts, which were created by state legislature. Funding for the new courtrooms was provided by a transfer-in from the General Fund.
Certificate of Obligations, Series 1998 This fund is used to account for the construction of health clinics, (ii) construction of a county general services building, (iii) improvements to county buildings to satisfy the requirements of the Americans with Disabilities Act, (iv) the purchase of land and a building to serve as an adult restitution center, (v) the payment of professional services for the development of plans for roadways, and (vi) the payment of legal, fiscal, engineering, architectural and professional fees for services connected with these projects.
Certificate of Obligations, Series 2000 This fund is used to account for (i) the construction and equipping of a County detention facility and law enforcement center, (ii) the construction and equipping of a maintenance facility related to the detention facility, (iii) the purchase of a necessary site for expansion and improvement of the juvenile detention center, and (iv) the payment of surveying, architectural, engineering, and other professional services.
Certificate of Obligations, Series 2001 This fund is used to account for (i) improvements to County roads (including acquisition of right of way), (ii) the County juvenile detention facility, (iii) construction of a new County courthouse parking lot, (iv) improvements to County buildings, (v) clean up and closure of County landfill, (vi) acquisition of equipment, (vii) land acquisition and construction of a park, and (viii) professional services to undertake aerial surveying and mapping for planning long-range road, transportation, and drainage improvements.
Certificate of Obligations, Series 2002 This fund is used to account for (i) the construction of new County buildings, (ii) renovation of buildings (including ADA compliance), (iii) clean up and closure of County landfill, (iv) the acquisition of motor vehicles and road construction and repair equipment, (v) acquisition of computer software and hardware, (vi) acquisition of emergency management equipment, (vii) improvements to drainage system, and (viii) professional services to undertake engineering and planning of long-range road, transportation, and drainage improvements.
Certificate of Obligations, Series 2004 This fund is used to account for (i) the construction of Hidalgo County Juvenile Justice Center and all construction related costs, (ii) the acquisition of new federally mandated electronic voting equipment/systems and related software and computer equipment, (iii) the renovations and major repairs of County buildings and properties, including parking facilities, (iv) road/street construction, ROW acquisition, and improvement including engineering services, related traffic signaling equipment, and heavy and other equipment, (v) park improvement and construction including ROW acquisition, (vi) renovation of the old jail, and (vii) the purchase of office equipment, computer equipment, computer software, vehicles, law enforcement equipment, and heavy and other equipment for various departments
COUNTY OF HIDALGO, TEXAS EXHIBIT C-53 CAPITAL OUTLAY FUND CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 475 $ 475 Total revenues - - 475 475
EXPENDITURES Current: General government - 2,756,150 1,701,422 1,054,728 Bond issuance costs Debt service: Bond issuance costs - 43,850 43,850 - Total expenditures - 2,800,000 1,745,272 1,054,728
Excess (deficiency) of revenues over (under) expenditures - (2,800,000) (1,744,797) 1,055,203
OTHER FINANCING SOURCES (USES): Long-term notes issued - 2,800,000 2,800,000 - Total financing sources (uses) - 2,800,000 2,800,000 -
Net change in fund balances - - 1,055,203 1,055,203
Fund balances at beginning of year, as previously reported - - - -
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - - -
Fund balances at the end of year $ - $ - $ 1,055,203 $ 1,055,203
157 COUNTY OF HIDALGO, TEXAS EXHIBIT C-54 CAPITAL IMPROVEMENT FUND CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 276 $ 276 Total revenues - - 276 276
EXPENDITURES Current: General government - 332 - 332 Total expenditures - 332 - 332
Excess (deficiency) of revenues over (under) expenditures - (332) 276 608
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (332) 276 608
Fund balances at beginning of year, as previously reported - - 15,064 15,064
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 15,064 15,064
Fund balances at the end of year $ - $ (332) $ 15,340 $ 15,672
158 COUNTY OF HIDALGO, TEXAS EXHIBIT C-55 COLONIA ACCESS PROGRAM CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 12,666,676 $ 5,551,916 $ (7,114,760) Total revenues - 12,666,676 5,551,916 (7,114,760)
EXPENDITURES Current: Highways and streets - 12,666,676 5,551,916 7,114,760 Total expenditures - 12,666,676 5,551,916 7,114,760
Excess (deficiency) of revenues over (under) expenditures - - - -
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - - - -
Fund balances at beginning of year, as previously reported - - 329 329
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 329 329
Fund balances at the end of year $ - $ - $ 329 $ 329
159 COUNTY OF HIDALGO, TEXAS EXHIBIT C-56 TXDOT PROJECTS FUND CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ - $ 600,000 $ - $ (600,000) Total revenues - 600,000 - (600,000)
EXPENDITURES Current: Highways and streets - 4,581,719 1,259,511 3,322,208 Drainage flood control - 307,853 154,536 153,317 Total expenditures - 4,889,572 1,414,047 3,475,525
Excess (deficiency) of revenues over (under) expenditures - (4,289,572) (1,414,047) 2,875,525
OTHER FINANCING SOURCES (USES): Transfers in - 4,289,572 1,414,047 (2,875,525) Total financing sources (uses) - 4,289,572 1,414,047 (2,875,525)
Net change in fund balances - - - -
Fund balances at beginning of year, as previously reported - - - -
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - - -
Fund balances at the end of year $ - $ - $ - $ -
160 COUNTY OF HIDALGO, TEXAS EXHIBIT C-57 COUNTY BUILDINGS RENOVATION FUND CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 117 $ 117 Total revenues - - 117 117
EXPENDITURES Current: General government - 730 - 730 Total expenditures - 730 - 730
Excess (deficiency) of revenues over (under) expenditures - (730) 117 847
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (730) 117 847
Fund balances at beginning of year, as previously reported - - 6,498 6,498
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 6,498 6,498
Fund balances at the end of year $ - $ (730) $ 6,615 $ 7,345
161 COUNTY OF HIDALGO, TEXAS EXHIBIT C-58 CERTIFICATES OF OBLIGATION - SERIES 1998 CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 22,700 $ 23,064 $ 364 Total revenues - 22,700 23,064 364
EXPENDITURES Current: Highways and streets - 1,086,142 785,759 300,383 Total expenditures - 1,086,142 785,759 300,383
Excess (deficiency) of revenues over (under) expenditures - (1,063,442) (762,695) 300,747
OTHER FINANCING SOURCES (USES): Total financing sources (uses) - - - -
Net change in fund balances - (1,063,442) (762,695) 300,747
Fund balances at beginning of year, as previously reported - - 1,100,083 1,100,083
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 1,100,083 1,100,083
Fund balances at the end of year $ - $ (1,063,442) $ 337,388 $ 1,400,830
162 COUNTY OF HIDALGO, TEXAS EXHIBIT C-59 CERTIFICATES OF OBLIGATION - SERIES 2000 (JAIL PROJECT) CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 16,000 $ 28,181 $ 12,181 Total revenues - 16,000 28,181 12,181
EXPENDITURES Current: Public safety - 846,390 727,985 118,405 Total expenditures - 846,390 727,985 118,405
Excess (deficiency) of revenues over (under) expenditures - (830,390) (699,804) 130,586
OTHER FINANCING SOURCES (USES): Transfers in - - 100 100 Total financing sources (uses) - - 100 100
Net change in fund balances - (830,390) (699,704) 130,686
Fund balances at beginning of year, as previously reported - - 1,077,904 1,077,904
Prior period adjustment - - (159,593) (159,593)
Fund balances at beginning of year, as restated - - 918,311 918,311
Fund balances at the end of year $ - $ (830,390) $ 218,607 $ 1,048,997
163 COUNTY OF HIDALGO, TEXAS EXHIBIT C-60 CERTIFICATES OF OBLIGATION - SERIES 2001 CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 32,800 $ 64,483 $ 31,683 Total revenues - 32,800 64,483 31,683
EXPENDITURES Current: General government - 263,722 - 263,722 Public safety - 74,630 73,065 1,565 Highways and streets - 731,445 322,466 408,979 Sanitation - 108,054 - 108,054 Culture and recreation - 571,004 - 571,004 Urban and economic development - 6,988 - 6,988 Total expenditures - 1,755,843 395,531 1,360,312
Excess (deficiency) of revenues over (under) expenditures - (1,723,043) (331,048) 1,391,995
OTHER FINANCING SOURCES (USES): Transfers out - (907,607) (311,164) 596,443 Total financing sources (uses) - (907,607) (311,164) 596,443
Net change in fund balances - (2,630,650) (642,212) 1,988,438
Fund balances at beginning of year, as previously reported - 1 2,677,877 2,677,876
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - 1 2,677,877 2,677,876
Fund balances at the end of year $ - $ (2,630,649) $ 2,035,665 $ 4,666,314
164 COUNTY OF HIDALGO, TEXAS EXHIBIT C-61 CERTIFICATES OF OBLIGATION - SERIES 2002 CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ 109,000 $ 249,992 $ 140,992 Total revenues - 109,000 249,992 140,992
EXPENDITURES Current: General government - 2,218,969 2,191,874 27,095 Public safety - 415,712 103,226 312,486 Highways and streets - 1,953,413 357,632 1,595,781 Sanitation - 1,177,290 1,067,660 109,630 Drainage flood control - 2,547,650 1,012,878 1,534,772 Culture and recreation - 173,849 139,126 34,723 Total expenditures - 8,486,883 4,872,396 3,614,487
Excess (deficiency) of revenues over (under) expenditures - (8,377,883) (4,622,404) 3,755,479
OTHER FINANCING SOURCES (USES): Transfers out - (2,243,053) (534,407) 1,708,646 Total financing sources (uses) - (2,243,053) (534,407) 1,708,646
Net change in fund balances - (10,620,936) (5,156,811) 5,464,125
Fund balances at beginning of year, as previously reported - - 11,341,062 11,341,062
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 11,341,062 11,341,062
Fund balances at the end of year $ - $ (10,620,936) $ 6,184,251 $ 16,805,187
165 COUNTY OF HIDALGO, TEXAS EXHIBIT C-62 CERTIFICATES OF OBLIGATION - SERIES 2004 CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 274,471 $ 274,471 Total revenues - - 274,471 274,471
EXPENDITURES Current: General government - 5,247,272 15,625 5,231,647 Public safety - 12,500,000 - 12,500,000 Highways and streets - 6,567,000 157,225 6,409,775 Sanitation - 700,000 - 700,000 Health and welfare - 3,500,000 - 3,500,000 Culture and recreation - 500,000 - 500,000 Conservation of natural resources - 75,000 - 75,000 Bond issuance costs Debt service: Bond issuance costs - 200,000 189,267 10,733 Total expenditures - 29,289,272 362,117 28,927,155
Excess (deficiency) of revenues over (under) expenditures - (29,289,272) (87,646) 29,201,626
OTHER FINANCING SOURCES (USES): Transfers out - (733,000) (253,354) 479,646 Premium (discount) on bonds issued - 1,549,211 1,549,211 - Bonds issued - 32,250,000 32,250,000 - Total financing sources (uses) - 33,066,211 33,545,857 479,646
Net change in fund balances - 3,776,939 33,458,211 29,681,272
Fund balances at beginning of year, as previously reported - - - -
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - - -
Fund balances at the end of year $ - $ 3,776,939 $ 33,458,211 $ 29,681,272
166 COUNTY OF HIDALGO, TEXAS EXHIBIT C-63 DRAINGE DISTRICT NO. 1 CAPITAL PROJECTS CAPITAL PROJECTS FUND BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2004
Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Interest $ - $ - $ 41,303 $ 41,303 Total revenues - - 41,303 41,303
EXPENDITURES Current: Drainage flood control - 2,148,385 1,581,816 566,569 Total expenditures - 2,148,385 1,581,816 566,569
Excess (deficiency) of revenues over (under) expenditures - (2,148,385) (1,540,513) 607,872
OTHER FINANCING SOURCES (USES): Transfers in - 426,354 426,353 (1) Sale of fixed assets - - 387,475 387,475 Total financing sources (uses) - 426,354 813,828 387,474
Net change in fund balances - (1,722,031) (726,685) 995,346
Fund balances at beginning of year, as previously reported - - 2,241,667 2,241,667
Prior period adjustment - - - -
Fund balances at beginning of year, as restated - - 2,241,667 2,241,667
Fund balances at the end of year $ - $ (1,722,031) $ 1,514,982 $ 3,237,013
167
PROPRIETARY FUNDS
Proprietary funds are used to account for a government’s business-type activities. There are two different types of proprietary funds: enterprise funds and internal service funds.
Enterprise funds are used to report activities for which a fee is charged to external users for goods or services.
Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. COUNTY OF HIDALGO, TEXAS Proprietary Fund December 31, 2004
Enterprise Funds
Landfill Services This fund is used to account for the closure and post-closure care costs of the County’s two landfill sites in Precinct No. 3 (MSW 1727) and Precinct No. 4 (MSW 1593A).
Jail Commissary This fund is used to account for services provided to the jail inmate population.
Internal Service Fund
Workers’ Compensation This fund is used to account for employer contributions set aside to cover claims resulting from on the job injuries sustained by County employees.
EXHIBIT C-64 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS DECEMBER 31, 2004
Enterprise Enterprise Total Fund Fund Nonmajor Enterprise Landfill Jail Funds (See Services Commissary Exhibit A-9) ASSETS Current assets: Cash $ 3,837 $ 390,785 $ 394,622 Investments, plus accrued interest 726,652 47,058 773,710 Restricted cash 66,902 - 66,902 Receivables (net of allowance for uncollectibles) Intergovernmental receivables - 200 200 Inventories - 43,176 43,176 Total current assets 797,391 481,219 1,278,610 Noncurrent assets: Capital assets (net of accumulated depreciation): Land 1,001,093 - 1,001,093 Machinery and equipment - 9,900 9,900 Total capital assets (net of accumulated depreciation) 1,001,093 9,900 1,010,993 Total noncurrent assets 1,001,093 9,900 1,010,993 Total assets $ 1,798,484 $ 491,119 $ 2,289,603
LIABILITIES Current liabilities: Accounts payable $ 1,388 $ 9,517 $ 10,905 Salaries and benefits payable - 4,679 4,679 Due to other funds - 2,219 2,219 Intergovernmental payables - 4,718 4,718 Compensated absences-current - 4,132 4,132 Total current liabilities 1,388 25,265 26,653 Noncurrent liabilities: Compensated absences - 16,373 16,373 Landfill closure/ postclosure care costs 1,503,289 - 1,503,289 Total noncurrent liabilities 1,503,289 16,373 1,519,662 Total liabilities 1,504,677 41,638 1,546,315
NET ASSETS Invested in capital assets, net of related debt 1,001,093 9,900 1,010,993 Restricted 66,902 - 66,902 Unrestricted (774,188) 439,581 (334,607) Total net assets $ 293,807 $ 449,481 $ 743,288
168 EXHIBIT C-65 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004 Enterprise Enterprise Total Fund Fund Nonmajor Enterprise Landfill Jail Funds (See Services Commissary Exhibit A-10) Operating revenues: Charges for services $ - $ 937,926 $ 937,926 Other operating revenues - 480 480 Total operating revenues - 938,406 938,406
Operating expenses: Costs of services 149,381 489,110 638,491 Administration - 252,217 252,217 Depreciation - 2,043 2,043 Operating supplies - 10,025 10,025 Inmate expense - 55,858 55,858 Total operating expenses 149,381 809,253 958,634
Operating income (loss) (149,381) 129,153 (20,228)
Nonoperating revenues (expenses): Investment earnings 19,091 3,464 22,555 Total non-operating revenues (expenses) 19,091 3,464 22,555
Income before contributions and transfers (130,290) 132,617 2,327
Capital contributions 1,054,215 - 1,054,215 Transfers in - - - Transfers out - - -
Change in net assets 923,925 132,617 1,056,542
Total net assets-beginning (630,118) 316,864 (313,254) Total net assets-ending $ 293,807 $ 449,481 $ 743,288
169 EXHIBIT C-66 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004 Total Nonmajor Enterprise Landfill Jail Funds (See Services Commissary Exhibit A-11) CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from interfund services provided $ - $ 941,766 $ 941,766 Receipts from customers and users Payments to vendors - (567,575) (567,575) Payments to employees - (241,571) (241,571) Payments to other governments - (527) (527) Payments for interfund services used - - - Net Cash Provided (Used) by Operating Activities - 132,093 132,093
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Transfer from other funds - - - Transfer to other funds - - - Advances from other funds - - - Advances to other funds - - - Net Cash Provided (Used) by Non-capital Financing Activities - - -
CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES: Capital contributions - - - Purchase of capital assets - (1,202) (1,202) Proceeds from sales of capital assets - - - Net Cash Provided (Used) for Capital & Related Financing Activities - (1,202) (1,202)
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of investment 3,795,000 575,000 4,370,000 Purchase of investments (3,845,000) (574,000) (4,419,000) Interest and dividends received 18,486 3,443 21,929 Net Cash Provided (Used) for Investing Activities (31,514) 4,443 (27,071)
Net Increase (Decrease) in Cash and Cash Equivalents (31,514) 135,334 103,820
Cash and Cash Equivalents at Beginning of Year 35,350 255,451 290,801 Cash and Cash Equivalents at End of Year $ 3,836 $ 390,785 $ 394,621
Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income (Loss) $ (149,381) $ 129,153 $ (20,228) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation expense - 2,042 2,042 (Increase) decrease in accounts receivable - 3,360 3,360 (Increase) decrease in governmental receivables - (100) (100) (Increase) decrease in due from other funds - 3,460 3,460 (Increase) decrease in due from others - - - (Increase) decrease in inventory - (10,181) (10,181) Increase (decrease) in accrued salaries & fringe benefits payable - 2,077 2,077 Increase (decrease) in accounts payable - (2,400) (2,400) Increase (decrease) in due to other governments - (527) (527) Increase (decrease) in due to other funds - 2,218 2,218 Increase (decrease) in due to others - - - Increase (decrease ) in claims and judgements - - - Increase (decrease) in compensated absences - 2,991 2,991 Increase in post-closure care liability 149,381 - 149,381 Total Adjustments 149,381 2,940 152,321 Net Cash Provided (Used) by Operating Activities $ - $ 132,093 $ 132,093
170
EXHIBIT C-67 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS DECEMBER 31, 2004
Total Internal Self-Funded Service Workers Funds (See Comp Exhibit A-9) ASSETS Current assets: Cash $ 271,787 $ 271,787 Investments, plus accrued interest 2,882,253 2,882,253 Receivables (net of allowance for uncollectibles) Accounts 33,747 33,747 Due from other funds 2,219 2,219 Due from others 39,830 39,830 Total current assets 3,229,836 3,229,836 Noncurrent assets: Advances to other funds 175,000 175,000 Capital assets (net of accumulated depreciation): Machinery and equipment 70,985 70,985 Total capital assets (net of accumulated depreciation) 70,985 70,985 Total noncurrent assets 245,985 245,985 Total assets $ 3,475,821 $ 3,475,821
LIABILITIES Current liabilities: Accounts payable $ 4,087 $ 4,087 Salaries and benefits payable 6,991 6,991 Due to other funds 2 2 Compensated absences-current 1,247 1,247 Total current liabilities 12,327 12,327 Noncurrent liabilities: Claims and judgments payable 3,715,000 3,715,000 Total noncurrent liabilities 3,715,000 3,715,000 Total liabilities 3,727,327 3,727,327
NET ASSETS Invested in capital assets, net of related debt 70,985 70,985 Unrestricted (322,491) (322,491) Total net assets $ (251,506) $ (251,506)
171 EXHIBIT C-68 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004 Total Internal Self-Funded Service Workers Funds (See Comp Exhibit A-10) Operating revenues: Charges for services $ - $ - Interfund services provided 4,372,827 4,372,827 Other operating revenues 176,479 176,479 Total operating revenues 4,549,306 4,549,306
Operating expenses: Costs of services 4,780,380 4,780,380 Administration 689,766 689,766 Depreciation 9,910 9,910 Total operating expenses 5,480,056 5,480,056
Operating income (loss) (930,750) (930,750)
Nonoperating revenues (expenses): Investment earnings 38,194 38,194 Total non-operating revenues (expenses) 38,194 38,194
Income before contributions and transfers (892,556) (892,556)
Transfers in - - Transfers out - -
Change in net assets (892,556) (892,556)
Total net assets-beginning 641,050 641,050 Total net assets-ending $ (251,506) $ (251,506)
172 EXHIBIT C-69 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004 Total Internal Self-Funded Service Workers Funds (See Comp Exhibit A-11) CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from interfund services provided $ - $ - Receipts from customer and users 5,125,507 $ 5,125,507 Payments to vendors (366,703) (366,703) Payments to employees (352,811) Payments to other governments - - Payments to interfund services used (1,710,740) (1,710,740) Net Cash Provided (Used) by Operating Activities 2,695,253 2,695,253
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES: Transfer from other funds - - Transfer to other funds - - Advances from other funds - - Advances to other funds (95,000) (95,000) Net Cash Provided (Used) by Non-capital Financing Activities (95,000) (95,000)
CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES: Capital contributions - - Purchase of capital assets (43,050) (43,050) Proceeds from sale of capital assets - - Net Cash Provided (Used) for Capital & Related Financing Activities (43,050) (43,050)
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of investment 2,100,000 2,100,000 Purchase of investments (4,975,000) (4,975,000) Interest and dividends received 30,941 30,941 Net Cash Provided (Used) for Investing Activities (2,844,059) (2,844,059)
Net Increase (Decrease) in Cash and Cash Equivalents (286,856) (286,856)
Cash and Cash Equivalents at Beginning of Year 558,643 558,643 Cash and Cash Equivalents at End of Year $ 271,787 $ 271,787
Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating Income (Loss) $ (930,750) $ (930,750) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation expense 9,910 9,910 (Increase) decrease in accounts receivable (33,718) (33,718) (Increase) decrease in governmental receivables - - (Increase) decrease in due from other funds 798,224 798,224 (Increase) decrease in due from others (39,830) (39,830) (Increase) decrease in inventory - - Increase (decrease) in accrued salaries & fringe benefits payable 4,455 4,455 Increase (decrease) in accounts payable (35,141) (35,141) Increase (decrease) in due to other governments - - Increase (decrease) in due to other funds (73,490) (73,490) Increase (decrease) in due to others (3,929) (3,929) Increase (decrease ) in claims and judgements 2,998,275 2,998,275 Increase (decrease) in compensated absences 1,247 1,247 Increase in post-closure care liability - - Total Adjustments 3,626,003 3,626,003 Net Cash Provided (Used) by Operating Activities $ 2,695,253 $ 2,695,253
173
FIDUCIARY FUNDS
Fiduciary funds are used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. There are four types of fiduciary funds: pension trust funds (or similar funds), investment trust funds, private- purpose trust funds, and agency funds.
The County uses three of these types: pension trust funds, private-purpose trust funds, and agency funds. COUNTY OF HIDALGO, TEXAS Fiduciary Funds December 31, 2004
Pension Trust Funds
Affiliated Agencies Employees’ Retirement Plan (Plan) The Plan is a tax deferred money purchase pension plan and covers all employees of Hidalgo County Urban County Program, Hidalgo County Head Start Program, and Hidalgo County Community Services Agency.
Private-Purpose Trust Funds
Unclaimed Money Fund and County Clerk Unclaimed Money Fund These funds are used to account for escheat property.
Bond Sureties Fund This fund is used to account for the collateral posted by bondsmen to secure bail bonds.
Agency Funds
Clearing Fund This fund is used as a clearing account for payroll deductions including: FICA, retirement, health insurance, other optional insurance, unemployment compensation, workers’ compensation, and child support payments.
Group Insurance Fund The group insurance fund accounts for the fiscal activity related to group health and life provided to all county employees. This fund is used as a clearing account for health insurance premiums collected from County employees under Leave Without Pay and from non-employees under Cobra and Retiree. Monies are forwarded to the County’s commercial insurance carrier for health insurance.
Justice of the Peace This fund is used to account for monies collected by the Justice of the Peace. Monies collected that do not pertain to state or county funds include restitution, bonds, monies held for civil cases, arrest fees, warrant fees and service fees that will be paid out to other entities. Monies collected that do pertain to state or county funds include court costs, court fees, and court fines, which are directly deposited with the County Treasurer in the general fund.
District Attorney The District Attorney is custodian for monies seized by various law enforcement agencies. This fund is used to account for all forfeited property. These monies are immediately placed in certificates of deposit and redeemed when a judgment is rendered. This fund was established to record and track money or any asset of value paid to the court that the court will hold for the benefit of others.
District Clerk The District Clerk has four clearing accounts. The Fee Account for the collection of court costs and fines, the Registry Account for the collection of monies awarded to minors, the Child Support Account for the collection of child support payments disbursed to the Attorney General and the Jury Script Account which is advanced from the general fund for payment to jurors for their services. Tax Collector The Tax Collector fund consists of three accounts. The Tax General Account for the collection of current and delinquent taxes, tax title fees and miscellaneous revenues. The Special Inventory Account for the collection of escrow and annual disbursements of special inventory taxes. The Motor Vehicle Registration Account for the collection of vehicle registration stickers and titles.
County Clerk This fund is used to record and track money or any asset of value paid to the court that the court will hold for the benefit of others.
Sheriff This fund has six accounts. The Fee account is to account for money collected by the Sheriff for fees which include finger print records, clearance letter, insurance reports, boarding of prisoners, telephone commissions, tuition, and service of process. The B account is for cash bail bonds received from inmates held at the county jail. The D account accounts for the receipt of payments for the satisfaction of court costs, fees, and fines of inmates placed in the county jail upon their release. The Investigation account is for drug investigations, gas meals, hotels, and other expenses, which may occur during criminal investigations. The Inmate account is for the safekeeping of funds belonging to an inmate. The Jail Commissary account is used to record all transactions at the jail commissary.
Adult Probation The probation fees account is comprised of probation service fees ordered by the court and collected by the county. Fees consist of various court services and surcharges on penalty assessments.
Other Agency Funds This group of funds accounts for monies collected by the five constables, Law Library, Anzalduas Park, Delta Park, Swimming Pool, County Treasurer, and instant cash for funds not yet deposited with the County Treasurer or transmitted to the governmental agencies or individuals.
Health Clinics This fund was established to account for fees collected for health services provided at nine health clinics to residents of Hidalgo County.
Workers Compensation Fund This fund was established to account for monies paid to the third party administrator to cover claims resulting from on the job injuries sustained by employees of the County.
Head Start Program Fund This fund is used to account for monies received by the county to provide comprehensive child development services to children and families.
Urban County Program Fund This fund is used to account for Housing and Urban Development Section 108 projects. Proceeds from bank loans, collateralized by future awards are held by Urban County and used to pay the costs associated with approved projects for local municipalities.
EXHIBIT C-70 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF FIDUCIARY NET ASSETS PENSION TRUST FUNDS DECEMBER 31, 2004
Total Pension Head Urban Community Trust Start County Service Funds (See Program Program Agency Exhibit A-12) ASSETS Cash $ - $ 1,609 $ 223 $ 1,832 Investments, plus accrued interest 9,780,790 426,563 667,062 10,874,415 Accounts receivable - - 4,738 4,738 Due from other funds - 525 - 525 Total assets $ 9,780,790 $ 428,697 $ 672,023 $ 10,881,510
LIABILITIES Total liabilities - - - -
NET ASSETS Held in trust for others - - - - Held in trust for pension benefits $ 9,780,790 $ 428,697 $ 672,023 $ 10,881,510 Total net assets $ 9,780,790 $ 428,697 $ 672,023 $ 10,881,510
174 EXHIBIT C-71 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS ALL PENSION TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Total Pension Head Urban Community Trust Start County Service Funds (See Program Program Agency Exhibit A-13) Additions: Contributions $ 1,914,279 $ 125,584 $ 122,525 $ 2,162,388 Investment income 342,076 11,317 16,789 370,182 Other income - - 200 200 Total additions 2,256,355 136,901 139,514 2,532,770
Deductions: Benefits paid 742,433 87,626 42,096 872,155 Other 38,005 9,551 3,242 50,798 Total deductions 780,438 97,177 45,338 922,953
Change in net assets 1,475,917 39,724 94,176 1,609,817
Net assets-beginning of year, as previously reported 8,304,873 388,973 580,927 9,274,773
Prior period adjustment - - (3,080) (3,080)
Net assets-beginning of year, as previously reported 8,304,873 388,973 577,847 9,271,693
Net assets-end of year $ 9,780,790 $ 428,697 $ 672,023 $ 10,881,510
175 EXHIBIT C-72 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF FIDUCIARY NET ASSETS PRIVATE-PURPOSE TRUST FUNDS DECEMBER 31, 2004 Total Private- Purpose Unclaimed Unclaimed Money Bail Trust Money Fund Bond Funds (See Fund County Clerk Sureties Exhibit A-12) ASSETS Cash $ 299,796 $ 543,807 $ - $ 843,603 Investments, plus accrued interest - - 1,256,320 1,256,320 Capital assets (net of accumulated depreciation) - - 2,576,961 2,576,961 Total assets $ 299,796 $ 543,807 $ 3,833,281 $ 4,676,884
LIABILITIES Total liabilities - - - -
NET ASSETS Held in trust for others $ 299,796 $ 543,807 $ 3,833,281 $ 4,676,884 Total net assets $ 299,796 $ 543,807 $ 3,833,281 $ 4,676,884
176 EXHIBIT C-73 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS ALL PRIVATE-PURPOSE TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Total Private-Purpose Unclaimed Unclaimed Money Bail Trust Money Fund Bond Funds (See Fund County Clerk Sureties Exhibit A-13) Additions: Contributions $ - $ - $ - $ - Investment income 2,296 4,210 - 6,506 Other income 5,584 - 1,281,463 1,287,047 Total additions 7,880 4,210 1,281,463 1,293,553
Deductions: Benefits paid - - - - Other - - 655,532 655,532 Total deductions - - 655,532 655,532
Change in net assets 7,880 4,210 625,931 638,021
Net assets-beginning of year 291,916 539,597 3,207,350 4,038,863 Net assets-end of year $ 299,796 $ 543,807 $ 3,833,281 $ 4,676,884
177
COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Balance Balance January 1, 2004 Additions Deductions December 31, 2004 Clearing Fund Assets Cash$ 1,128,665 $ 84,209,531 $ 83,517,383 $ 1,820,813 Due from others 13,750 3,587,568 3,600,681 637 Total assets $ 1,142,415 $ 87,797,099 $ 87,118,064 $ 1,821,450
Liabilities Accounts payable$ 1,142,415 $ 56,877,432 $ 56,198,397 $ 1,821,450 Total liabilities $ 1,142,415 $ 56,877,432 $ 56,198,397 $ 1,821,450
Group Insurance Fund Assets Cash$ 43,412 $ 29,592 $ 60,267 $ 12,737 Total assets $ 43,412 $ 29,592 $ 60,267 $ 12,737
Liabilties Accounts Payable$ 43,412 $ 89,535 $ 120,210 $ 12,737 Total liabilities $ 43,412 $ 89,535 $ 120,210 $ 12,737
Justice of the Peace Assets Cash$ 69,060 $ 42,344 $ 75,847 $ 35,557 Account receivable 3,326 11,028 12,783 1,571 Total assets $ 72,386 $ 53,372 $ 88,630 $ 37,128
Liabilties Due to other governments$ 1,178 $ - $ 1,178 $ - Due to others 36,166 77,032 89,505 23,693 Deposits 35,017 9,307 30,914 13,410 Advance from other funds 25 - - 25 Total liabilities $ 72,386 $ 86,339 $ 121,597 $ 37,128
District Attorney Assets Cash$ 102,759 $ 2,522,716 $ 2,551,659 $ 73,816 Investments 1,132,931 997,573 902,294 1,228,210 Account receivable 11,915 619 - 12,534 Total assets $ 1,247,605 $ 3,520,908 $ 3,453,953 $ 1,314,560
Liabilties Due to others$ 28,536 $ 25,644 $ 22,752 $ 31,428 Held in trust 1,219,069 997,437 933,374 1,283,132 Total liabilities $ 1,247,605 $ 1,023,081 $ 956,126 $ 1,314,560
182 COUNTY OF HIDALGO, TEXAS EXHIBIT C-75 COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES Page 1 of 2 AGENCY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Balance Balance January 1, 2004 Additions Deductions December 31, 2004 District Clerk Assets Cash$ 2,905,868 $ 25,366,626 $ 25,394,914 $ 2,877,580 Investments 997,203 183,488 183,327 997,364 Account receivable 41,443 30,044 39,537 31,950 Due from funds 55,841 811,398 823,389 43,850 Due from others - 22,592 - 22,592 Investments held in trust 16,966,453 212,343,404 210,957,904 18,351,953 Total assets $ 20,966,808 $ 238,757,552 $ 237,399,071 $ 22,325,289
Liabilties Due to other governments$ 17,525 $ 22,017 $ 37,982 $ 1,560 Due to others 171,633 5,292,133 5,315,243 148,523 Deposits 2,005,015 88,474 67,445 2,026,044 Held in trust 18,747,610 224,930,017 223,553,490 20,124,137 Advance from other funds 25,025 - - 25,025 Total liabilities $ 20,966,808 $ 230,332,641 $ 228,974,160 $ 22,325,289
Tax Collector Assets Investments$ 1,096,239 $ 18,709,282 $ 18,598,431 $ 1,207,090 Account receivable$ 11,046,148 $ 130,919,083 $ 110,248,707 $ 31,716,524 Due from others$ 13,683 $ 2,495,859 $ 2,497,369 $ 12,173 Total assets $ 12,156,070 $ 152,124,224 $ 131,344,507 $ 32,935,787
Liabilties Bank overdraft$ (11,238,398) $ (304,467,796) $ (316,626,121) $ 919,927 Due to other governments 20,287,216 405,977,505 397,948,634 28,316,087 Due to others 2,808,664 21,530,542 20,717,448 3,621,758 Held in escrow 282,938 3,225,167 3,451,240 56,865 Advance from other funds 15,650 5,500 - 21,150 Total liabilities $ 12,156,070 $ 126,270,918 $ 105,491,201 $ 32,935,787
County Clerk Assets Cash$ 6,269,348 $ 5,034,230 $ 4,907,100 $ 6,396,478 Investments 70,000 228 - 70,228 Account receivable 53,955 82,508 87,430 49,033 Due from funds 836 144 836 144 Investments held in trust 4,555,700 751,202 10,561 5,296,341 Total assets $ 10,949,839 $ 5,868,312 $ 5,005,927 $ 11,812,224
Liabilties Due to other governments$ 27,047 $ - $ 27,047 $ - Due to others 21,365 70,708 68,395 23,678 Deposits 3,209,729 3,854,552 2,645,484 4,418,797 Held in escrow 3,135,318 1,121,781 2,184,371 2,072,728 Held in trust 4,555,700 751,202 10,561 5,296,341 Advance from other funds 680 - - 680 Total liabilities $ 10,949,839 $ 5,798,243 $ 4,935,858 $ 11,812,224
183 COUNTY OF HIDALGO, TEXAS COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Balance Balance January 1, 2004 Additions Deductions December 31, 2004 Sheriff Assets Cash$ 139,751 $ 4,152,859 $ 3,894,357 $ 398,253 Account receivable 72,956 38,536 67,953 43,539 Due from funds - 221 221 - Due from governments 22,472 125,022 90,191 57,303 Total assets $ 235,179 $ 4,316,638 $ 4,052,722 $ 499,095
Liabilties Due to others$ 124,980 $ 21,441 $ 68,036 $ 78,385 Held in trust 43,472 4,311,536 3,934,398 420,610 Advance from other funds 66,727 - 66,627 100 Total liabilities $ 235,179 $ 4,332,977 $ 4,069,061 $ 499,095
Adult Probation Assets Cash$ 976,507 $ 4,789,351 $ 4,854,301 $ 911,557 Account receivable 13,077,906 25,278,118 24,296,577 14,059,447 Total assets $ 14,054,413 $ 30,067,469 $ 29,150,878 $ 14,971,004
Liabilties Due to goverments$ 1,670 $ 17,151 $ 16,440 $ 2,381 Due to other funds 56,677 891,481 904,163 43,995 Due to others 14,249,112 27,472,123 26,796,807 14,924,428 Advance from other funds 200 - - 200 Total liabilities $ 14,307,659 $ 28,380,755 $ 27,717,410 $ 14,971,004
Other Agency Funds Assets Cash$ 4,762 $ 153,152 $ 153,333 $ 4,581 Due from others 715 - - 715 Total assets $ 5,477 $ 153,152 $ 153,333 $ 5,296
Liabilties Due to others$ 277 $ 47,981 $ 48,162 $ 96 Advance from other funds 5,200 - - 5,200 Total liabilities $ 5,477 $ 47,981 $ 48,162 $ 5,296
Health Clinics Assets Cash$ 4,421 $ 202,082 $ 200,283 $ 6,220 Accounts receivable 45 345 271 119 Total assets $ 4,466 $ 202,427 $ 200,554 $ 6,339
Liabilties Due to others$ 4,466 $ 201,946 $ 200,073 $ 6,339 Total liabilities $ 4,466 $ 201,946 $ 200,073 $ 6,339
184 COUNTY OF HIDALGO, TEXAS EXHIBIT C-75 COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES Page 2 of 2 AGENCY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2004
Balance Balance January 1, 2004 Additions Deductions December 31, 2004 Workers' Compensation Fund Assets Cash$ 80,000 $ 3,570,822 $ 3,478,058 $ 172,764 Due from others - 2,236 - 2,236 Total assets $ 80,000 $ 3,573,058 $ 3,478,058 $ 175,000
Liabilties Advance from other funds$ 80,000 $ 95,000 $ 175,000 Total liabilities $ 80,000 $ 95,000 $ - $ 175,000
Head Start Program Assets Cash$ 121 $ 46,420,187 $ 46,208,985 $ 211,323 Total assets $ 121 $ 46,420,187 $ 46,208,985 $ 211,323
Liabilties Accounts payable$ 121 $ 17,624,192 $ 17,412,990 $ 211,323 Total liabilities $ 121 $ 17,624,192 $ 17,412,990 $ 211,323
Urban County Program Assets Cash$ 1,620,063 $ 14,043,692 $ 13,931,951 $ 1,731,804 Due from other funds 1,172,764 13,612 - 1,186,376 Other receivables 2,904 - - 2,904 Total assets $ 2,795,731 $ 14,057,304 $ 13,931,951 $ 2,921,084
Liabilties Accounts payable$ 366,300 $ 13,351,343 $ 13,380,235 $ 337,408 Salaries and benefits payable 13,692 20,919 12,832 21,779 Due to other funds 1,084,387 102,514 - 1,186,901 Held in trust 1,331,352 43,644 - 1,374,996 Total liabilities $ 2,795,731 $ 13,518,420 $ 13,393,067 $ 2,921,084
185
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
Capital assets used in the operation of governmental funds are used to account for capital assets not used in enterprise fund operations or accounted for in trust funds.
RELATED AGENCIES
This section contains financial and grant information on the County’s related agencies, which are as follows:
Community Service Agency (CSA) – This agency administers health and welfare grants from various Federal and State grantors.
Head Start Program (Head Start) – This agency administers health and welfare grants from the U.S. Department of Health and U.S. Department of Agriculture.
Urban County Program (Urban) - This agency administers economic and urban development grants received from the U.S. Department of Housing and Urban Development.
STATISTICAL SECTION
(UNAUDITED)
COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS
Highways Drainage Fiscal General Public and Flood Year Government Safety Streets Sanitation Control
1995 21,612,764 23,046,085 5,097,256 16,158 2,277,626 1996 21,850,198 26,626,937 6,188,246 20,000 2,177,276 1997 22,934,014 24,360,065 8,589,906 529,920 3,431,901 1998 27,863,207 27,894,379 10,313,903 675,013 4,146,342 1999 28,965,400 33,085,584 10,603,188 1,720,430 4,769,788 2000 31,662,181 42,110,170 13,480,318 2,374,040 5,794,805 2001 33,843,587 71,597,469 17,865,079 4,600,716 6,209,584 2002 37,780,973 60,609,236 21,640,397 3,371,920 6,670,941 2003 40,313,533 53,676,762 19,542,670 3,216,608 8,340,924 2004 48,555,929 55,471,615 20,752,690 4,815,625 7,788,522
(1) Includes general, special revenue, debt service, and capital projects funds.
228 EXHIBIT D-1
Health Urban and Culture and Economic and Debt Welfare Development Recreation Conservation Service Total
31,110,094 17,727,533 972,634 333,544 7,285,326 109,479,020 32,430,830 16,970,603 948,612 363,551 2,345,587 109,921,840 37,359,256 23,552,052 1,408,608 388,099 2,370,904 124,924,725 39,162,080 28,905,398 1,541,128 434,341 2,564,810 143,500,601 44,145,320 33,432,894 1,713,280 436,454 2,842,122 161,714,460 51,734,653 12,234,166 1,742,132 430,784 3,896,992 165,460,241 53,062,072 13,117,800 2,494,910 468,703 8,003,620 211,263,540 65,772,318 16,071,098 2,423,382 477,354 9,735,523 224,553,142 59,694,388 12,629,770 2,056,069 466,229 9,963,632 209,900,585 66,546,494 13,085,483 2,506,401 457,306 9,857,341 229,837,406
229 COUNTY OF HIDALGO, TEXAS EXHIBIT D-2 STATISTICAL SECTION
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS
Licenses Fiscal and Charges for Investment Year Taxes Permits Intergovernmental Services Fines Earnings Miscellaneous Total
1994$ 39,877,792 $ 1,241,840 $ 53,846,635 $ 8,518,158 $ 1,957,879 $ 873,959 $ 3,594,252 $ 109,910,515 1995 44,024,704 2,347,004 49,429,269 8,584,067 2,103,949 1,365,806 4,482,447 112,337,246 1996 43,571,116 2,507,780 47,555,444 8,597,284 2,112,094 1,536,868 4,877,647 110,758,233 1997 47,014,918 2,654,896 57,352,391 8,545,749 2,780,641 2,156,136 7,105,488 127,610,219 1998 53,084,433 2,802,703 64,052,505 10,519,184 3,016,016 2,895,617 8,780,336 145,150,794 1999 53,571,179 3,082,613 82,771,000 11,706,165 3,728,306 3,139,830 8,696,067 166,695,160 2000 56,305,474 3,074,184 63,185,889 13,551,705 4,057,699 5,169,633 9,187,768 154,532,352 2001 67,309,294 3,227,405 65,392,770 13,987,213 5,384,387 4,996,912 9,363,089 169,661,070 2002 79,302,169 3,364,047 84,755,066 16,772,415 5,087,087 2,761,810 2,063,195 194,105,789 2003 95,475,729 3,554,518 84,126,728 17,131,243 5,809,959 2,828,482 1,886,023 210,812,682 2004 104,024,358 3,663,581 87,146,209 17,099,139 5,162,316 3,377,926 1,974,916 222,448,445
(1) Includes general, special revenue, debt service, and capital projects funds.
230 COUNTY OF HIDALGO, TEXAS EXHIBIT D-3 STATISTICAL SECTION
PROPERTY TAX LEVY AND RESERVE FOR UNCOLLECTIBLE TAXES FISCAL YEAR 2004
Current Tax Reserve For Levy Net of Uncollectible Uncollectible Tax Levy (1) Taxes Amount
Hidalgo County Operating: General Fund$ 81,228,534 $ (1,160,025) $ 80,068,509 Road & Bridge Fund - - - Park Fund 1,571,760 (22,446) 1,549,313 Total Operating 82,800,294 (1,182,471) 81,617,823
Debt Service: Refunding Bonds 1996 754,445 (10,774) 743,670 Refunding Bonds 1998 1,021,644 (14,590) 1,007,054 Certificates of Obligation 1998 502,963 (7,183) 495,780 Certificates of Obligation 2000 3,615,047 (51,626) 3,563,420 Certificates of Obligation 2001 1,901,829 (27,160) 1,874,669 Certificates of Obligation 2002 1,257,408 (17,957) 1,239,451 Notes Payable 880,185 (12,570) 867,615 Total Debt Service 9,933,520 (141,861) 9,791,660
Total Hidalgo County 92,733,814 (1,324,332) 91,409,483
Drainage District No. 1 Operating 6,596,873 (94,210) 6,502,663 Debt Service - - - Total Drainage District No. 1 6,596,873 (94,210) 6,502,663
Total All Funds $ 99,330,687 $ (1,418,542) $ 97,912,145
(1) 2003 Tax Roll
231 COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
PROPERTY TAX LEVIES LAST TEN FISCAL YEARS
Fiscal Year: 2004 2003 2002 2001 Tax Roll: 2003 2002 2001 2000
Hidalgo County Operating: General Fund$ 81,228,534 $ 74,673,421 $ 60,811,147 $ 52,540,263 Road & Bridge Fund - - 560,031 1,235,079 Park Fund 1,571,760 1,459,891 1,365,929 1,235,079 Total Operating 82,800,294 76,133,312 62,737,106 55,010,421
Debt Service: Certificates of Obligation 1990A - - - - Refunding Bonds 1990 - - - - Refunding Bonds 1991 - - - - Certificates of Obligation 1992 - - - - Certificates of Obligation 1993 - - - - Certificates of Obligation 1995 - - - - Refunding Bonds 1996 754,445 350,374 450,756 463,772 Refunding Bonds 1998 1,021,644 846,737 819,557 107,452 Certificates of Obligation 1998 502,963 262,780 327,823 284,068 Certificates of Obligation 2000 3,615,047 3,693,524 4,125,105 5,974,695 Certificates of Obligation 2001 1,901,829 1,956,254 2,499,650 - Certificates of Obligation 2002 1,257,408 1,868,660 - - Notes Payable 880,185 1,021,924 - - Total Debt Service 9,933,520 10,000,253 8,222,891 6,829,987
Total Hidalgo County 92,733,814 86,133,564 70,959,997 61,840,408
Drainage District No. 1 Operating 6,596,873 6,388,415 5,946,384 4,466,952 Debt Service - - - - Total Drainage District No. 1 6,596,873 6,388,415 5,946,384 4,466,952
Road District No. 5 - - - -
Total All Funds $ 99,330,687 $ 92,521,979 $ 76,906,382 $ 66,307,361
232 EXHIBIT D-4
2000 1999 1998 1997 1996 1995 1999 1998 1997 1996 1995 1994
$ 44,147,620 $ 41,695,232 $ 43,271,951 $ 38,610,800 $ 35,318,326 $ 31,752,831 2,911,078 2,755,658 984,572 900,859 864,797 535,391 1,119,645 1,059,869 984,572 900,859 795,614 601,286 48,178,344 45,510,759 45,241,095 40,412,517 36,978,737 32,889,508
- 63,592 147,686 135,129 129,720 164,736 55,982 116,586 295,372 351,335 354,567 444,787 201,536 190,776 443,058 450,429 354,567 255,341 - - - 90,086 198,903 255,341 - - - - - 90,605 - - - - 553,470 - 649,394 582,928 610,435 486,464 - - 436,662 413,349 - - - - 492,644 466,342 ------1,836,219 1,833,573 1,496,550 1,513,442 1,591,227 1,210,808
50,014,563 47,344,332 46,737,645 41,925,960 38,569,964 34,100,316
4,105,987 4,080,482 3,616,251 3,515,418 3,386,306 3,021,801 - - - - - 5,456,030 4,105,987 4,080,482 3,616,251 3,515,418 3,386,306 8,477,831
188,532 300,670 327,968 313,401 289,830 213,288
$ 54,309,081 $ 51,725,484 $ 50,681,864 $ 45,754,779 $ 42,246,100 $ 42,791,435
233 COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
DELINQUENT TAXES RECEIVABLE NET OF UNCOLLECTIBLES (EXCLUDES ROLLBACK TAXES) AS OF DECEMBER 31, 2004
Fiscal Year: 2004 2003 2002 2001 Tax Roll: 2003 2002 2001 2000
Hidalgo County Operating: General Fund$ 6,099,644 $ 3,767,049 $ 2,353,995 $ 1,699,141 Road & Bridge Fund - - 21,679 39,942 Park Fund 118,027 73,647 52,875 39,942 Total Operating 6,217,671 3,840,696 2,428,548 1,779,025
Debt Service: Refunding Bond Series 1996 56,653 17,675 17,449 14,998 Refunding Bond Series 1998 76,718 42,715 31,725 9,187 Certificates of Obligation 1998 37,769 13,256 12,690 3,475 Certificates of Obligation 2000 271,462 186,327 159,682 193,320 Certificates of Obligation 2001 142,813 98,687 96,761 - Certificates of Obligation 2002 94,422 94,268 - - Notes Payable 66,095 51,553 - - Total Debt Service 745,932 504,483 318,307 220,980
Total Hidalgo County 6,963,603 4,345,179 2,746,856 2,000,005
Drainage District No. 1 Operating Fund 506,404 332,564 239,702 149,252 Debt Service Fund - - - - Total Drainage District No. 1 506,404 332,564 239,702 149,252
Road Districts Road District 2 - - - - Road District 5 - - - - Road District 7 - - - - Road District 11 - - - - Road District 12 - - - - Road District 14 - - - - Road District 15 - - - - Total Road Districts - - - -
Total All Funds $ 7,470,007 $ 4,677,743 $ 2,986,558 $ 2,149,257
234 EXHIBIT D-5
Reserves Net Property 2000 & Prior Not Barred For Loss On Taxes 1999 & Prior By Limitation Collections Receivable
$ 4,704,746 $ 18,624,574 $ 6,435,594 $ 12,188,980 43,829 105,450 59,954 45,496 100,203 384,695 137,068 247,627 4,848,779 19,114,719 6,632,616 12,482,104
39,403 146,179 53,899 92,279 54,239 214,583 74,193 140,391 23,496 90,686 32,139 58,546 243,003 1,053,795 332,402 721,393 115,751 454,012 158,335 295,677 54,825 243,515 74,995 168,520 34,127 151,775 46,682 105,093 564,843 2,354,545 772,646 1,581,899
5,413,622 21,469,265 7,405,261 14,064,003
811,805 2,039,727 968,148 1,071,579 58,884 58,884 30,748 28,136 870,688 2,098,611 998,896 1,099,715
150 150 150 - 32,863 32,863 27,433 5,430 132 132 132 - 160 160 160 - 11 11 11 - 94 94 94 - 4,650 4,650 4,650 - 38,060 38,060 32,629 5,430
$ 6,322,370 $ 23,605,935 $ 8,436,787 $ 15,169,148
235 COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
HIDALGO COUNTY PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS
Late Year-to-Date Year-to-Date Fiscal Taxable Tax Productivity Original Tax RollAdjusted Year Value Rate Penalties Tax Levy Modifications Tax Levy
1995$ 8,236,193,489 $ 0.4140 $ 2,458 $ 34,100,316 $ 123,931 $ 34,224,247 1996 8,647,184,824 0.4460 3,497 38,569,964 (81,334) 38,488,630 1997 9,007,808,083 0.4654 3,607 41,925,960 (40,796) 41,885,164 1998 9,845,334,746 0.4747 1,832 46,737,645 659,103 47,396,748 1999 10,598,450,332 0.4467 1,039 47,344,332 72,518 47,416,851 2000 11,195,949,023 0.4467 2,248 50,014,563 86,915 50,101,478 2001 12,349,731,525 0.5007 5,284 61,840,408 173,806 62,014,214 2002 13,658,743,604 0.5195 2,806 70,959,997 70,014 71,030,011 2003 14,598,086,778 0.5900 4,814 86,133,564 54,816 86,188,380 2004$ 15,716,777,121 $ 0.5900 $ 4,795 $ 92,733,814 $ 299,364 $ 93,033,178
Hidalgo County Original Property Tax Levies
Millions $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
* Taxes collected for the year are allocated between current and delinquent. Taxes recognized as revenues during the current year include taxes collected in advance during the period October thru December of the previous year and those taxes collected from January thru December for the current year. Due to the change in reporting of current taxes, collections presented for fiscal years 1998 thru present represent tax collections for a 15-month period (October thru December of prior year and January thru December of current year). We are unable to obtain detail data for collections for fiscal years 1997 and prior; therefore, these year's collections represent tax collections for a 9-month period (October thru December of prior year and January thru June of current year).
236 EXHIBIT D-6
Ratio of Ratio of Percent Total Tax Delinquent Current of Adjusted Year-to-Date Year-to-Date Collections Outstanding Taxes Tax Tax Levy Delinquent Tax Total Tax to Adjusted Delinquent to Adjusted Collections Collected * Collections Collections Tax Levy Taxes Tax Levy
$ 30,077,103 87.88%$ 3,797,181 $ 33,874,284 98.98%$ 349,963 1.02% 33,776,402 87.76% 4,262,535 38,038,937 98.83% 449,693 1.17% 36,673,464 87.56% 4,633,311 41,306,775 98.62% 578,388 1.38% 41,404,893 87.36% 5,269,216 46,674,109 98.48% 722,639 1.52% 43,180,735 91.07% 3,350,688 46,531,422 98.13% 885,428 1.87% 45,606,298 91.03% 3,336,010 48,942,309 97.69% 1,159,169 2.31% 55,986,455 90.28% 4,027,754 60,014,209 96.77% 2,000,005 3.23% 64,698,658 91.09% 3,584,497 68,283,155 96.13% 2,746,856 3.87% 79,109,706 91.79% 2,733,495 81,843,201 94.96% 4,345,179 5.04% $ 86,069,576 92.51%$ - $ 86,069,576 92.51%$ 6,963,603 7.49%
Hidalgo County Tax Rates
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
237 COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
DRAINAGE DISTRICT NO. 1 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS
Late Year-to-Date Year-to-Date Fiscal Taxable Tax Productivity Original Tax RollAdjusted Year Value Rate Penalties Tax Levy Modifications Tax Levy
1995$ 7,630,216,114 $ 0.1111 $ 636 $ 8,477,831 $ 41,667 $ 8,519,497 1996 8,158,961,084 0.0415 313 3,386,306 (5,456) 3,380,851 1997 8,594,487,242 0.0409 264 3,515,418 (309) 3,515,109 1998 9,272,024,403 0.0390 143 3,616,251 64,000 3,680,251 1999 9,952,154,491 0.0410 83 4,080,482 10,240 4,090,722 2000 10,692,170,976 0.0409 183 4,105,987 12,029 4,118,016 2001 11,879,150,544 0.0376 372 4,466,952 8,312 4,475,265 2002 13,039,767,508 0.0456 235 5,946,384 (15,688) 5,930,696 2003 14,008,885,044 0.0456 354 6,388,415 2,511 6,390,926 2004$ 15,164,471,918 $ 0.0435 $ 309 $ 6,596,873 $ 14,649 $ 6,611,522
Drainage District No. 1 Original Property Tax Levies
Millions $9 $8 $7 $6 $5 $4 $3 $2 $1 $- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
* Taxes collected for the year are allocated between current and delinquent. Taxes recognized as revenues during the current year include taxes collected in advance during the period October thru December of the previous year and those taxes collected from January thru December for the current year. Due to the change in reporting of current taxes, collections presented for fiscal years 1998 thru present represent tax collections for a 15-month period (October thru December of prior year and January thru December of current year). We are unable to obtain detail data for collections for fiscal years 1997 and prior; therefore, these year's collections represent tax collections for a 9-month period (October thru December of prior year and January thru June of current year).
238 EXHIBIT D-7
Ratio of Ratio of Percent Total Tax Delinquent Current of Adjusted Year-to-Date Year-to-Date Collections Outstanding Taxes Tax Tax Levy Delinquent Tax Total Tax to Adjusted Delinquent to Adjusted Collections Collected * Collections Collections Tax Levy Taxes Tax Levy
$ 7,432,151 87.24%$ 997,212 $ 8,429,363 98.94%$ 90,134 1.06% 2,950,249 87.26% 390,021 3,340,270 98.80% 40,581 1.20% 3,064,200 87.17% 401,196 3,465,396 98.59% 49,713 1.41% 3,194,886 86.81% 427,732 3,622,618 98.43% 57,632 1.57% 3,709,107 90.67% 302,145 4,011,253 98.06% 79,470 1.94% 3,735,857 90.72% 283,660 4,019,517 97.61% 98,498 2.39% 4,027,518 90.00% 298,495 4,326,013 96.66% 149,252 3.34% 5,380,845 90.73% 310,149 5,690,994 95.96% 239,702 4.04% 5,849,426 91.53% 208,936 6,058,362 94.80% 332,564 5.20% $ 6,105,118 92.34%$ - $ 6,105,118 92.34%$ 506,404 7.66%
Drainage District No. 1 Tax Rates
$0.12
$0.10
$0.08
$0.06
$0.04
$0.02
$0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
239 COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
ROAD DISTRICT NO. 5 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS
Late Year-to-Date Year-to-Date Fiscal Taxable Tax Productivity Original Tax RollAdjusted Year Value Rate Penalties Tax Levy Modifications Tax Levy
1995$ 1,066,374,097 $ 0.0200 $ 10 $ 213,288 $ 641 $ 213,929 1996 1,159,220,993 0.0250 14 289,830 (584) 289,246 1997 1,253,544,676 0.0250 5 313,401 153 313,554 1998 1,425,871,378 0.0230 17 327,968 3,104 331,073 1999 1,541,848,202 0.0195 7 300,670 (105) 300,565 2000 1,729,517,739 0.0109 14 188,532 1,361 189,892 2001 ------2002 ------2003 ------2004$ - $ - $ - $ - $ - $ -
Road District No. 5 Original Property Tax Levies
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
* Taxes collected for the year are allocated between current and delinquent. Taxes recognized as revenues during the current year include taxes collected in advance during the period October thru December of the previous year and those taxes collected from January thru December for the current year. Due to the change in reporting of current taxes, collections presented for fiscal years 1998 thru present represent tax collections for a 15-month period (October thru December of prior year and January thru December of current year). We are unable to obtain detail data for collections for fiscal years 1997 and prior; therefore, these year's collections represent tax collections for a 9-month period (October thru December of prior year and January thru June of current year).
240 EXHIBIT D-8
Ratio of Ratio of Percent Total Tax Delinquent Current of Adjusted Year-to-Date Year-to-Date Collections Outstanding Taxes Tax Tax Levy Delinquent Tax Total Tax to Adjusted Delinquent to Adjusted Collections Collected * Collections Collections Tax Levy Taxes Tax Levy
$ 182,320 85.22%$ 29,644 $ 211,964 99.08%$ 1,965 0.92% 247,102 85.43% 39,156 286,258 98.97% 2,988 1.03% 266,003 84.83% 43,700 309,703 98.77% 3,851 1.23% 283,153 85.53% 43,355 326,508 98.62% 4,564 1.38% 268,557 89.35% 26,477 295,034 98.16% 5,531 1.84% 171,686 90.41% 14,098 185,784 97.84% 4,108 2.16% ------$ - - $ - $ - - $ - -
Road District No. 5 Tax Rates
$0.0250
$0.0200
$0.0150
$0.0100
$0.0050
$- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
241 COUNTY OF HIDALGO, TEXAS EXHIBIT D-9 STATISTICAL SECTION
HIDALGO COUNTY ROLLBACK TAXES AND COLLECTIONS LAST TEN FISCAL YEARS
Percent of Beginning Adjusted Rollback Ending Total Fiscal Rollback Taxes Tax Roll Rollback Taxes Taxes Rollback Taxes Rollback Taxes Year (1) Receivable Modifications (2) Receivable Collected Receivable Collected
1995 (3) (3) (3) (3) (3) (3) 1996 (3) (3) (3) (3) (3) (3) 1997 (3) (3) (3) (3) (3) (3) 1998 (3) (3) (3) (3) (3) (3) 1999$ 156,160 $ 88,385 $ 244,545 $ 162,097 $ 82,448 66.29% 2000 82,448 343,140 425,588 243,814 181,774 57.29% 2001 181,774 230,211 411,986 252,360 159,626 61.25% 2002 159,626 395,351 554,977 338,428 216,549 60.98% 2003 216,549 589,331 805,880 538,218 267,661 66.79% 2004$ 267,661 $ 342,814 $ 610,475 $ 459,971 $ 150,504 75.35%
(1) As of January 1 of each year. (2) All rollback taxes added to the tax roll are entered as tax modifications. (3) Unable to obtain amounts.
242 COUNTY OF HIDALGO, TEXAS EXHIBIT D-10 STATISTICAL SECTION
DRAINAGE DISTRICT NO. 1 ROLLBACK TAXES AND COLLECTIONS LAST TEN FISCAL YEARS
Percent of Beginning Adjusted Rollback Ending Total Fiscal Rollback Taxes Tax Roll Rollback Taxes Taxes Rollback Taxes Rollback Taxes Year (1) Receivable Modifications (2) Receivable Collected Receivable Collected
1995 (3) (3) (3) (3) (3) (3) 1996 (3) (3) (3) (3) (3) (3) 1997 (3) (3) (3) (3) (3) (3) 1998 (3) (3) (3) (3) (3) (3) 1999$ 28,756 $ 11,667 $ 40,424 $ 26,310 $ 14,114 65.09% 2000 14,114 31,897 46,010 26,187 19,823 56.92% 2001 19,823 18,617 38,440 23,218 15,222 60.40% 2002 15,222 33,231 48,452 28,765 19,687 59.37% 2003 19,687 48,296 67,983 44,969 23,015 66.15% 2004$ 23,015 $ 27,342 $ 50,356 $ 37,689 $ 12,667 74.85%
(1) As of January 1 of each year. (2) All rollback taxes added to the tax roll are entered as tax modifications. (3) Unable to obtain amounts.
243 COUNTY OF HIDALGO, TEXAS EXHIBIT D-11 STATISTICAL SECTION
ROAD DISTRICT NO. 5 ROLLBACK TAXES AND COLLECTIONS LAST TEN FISCAL YEARS
Percent of Beginning Adjusted Rollback Ending Total Fiscal Rollback Taxes Tax Roll Rollback Taxes Taxes Rollback Taxes Rollback Taxes Year (1) Receivable Modifications (2) Receivable Collected Receivable Collected
1995 (3) (3) (3) (3) (3) (3) 1996 (3) (3) (3) (3) (3) (3) 1997 (3) (3) (3) (3) (3) (3) 1998 (3) (3) (3) (3) (3) (3) 1999$ 1,002 $ 1,358 $ 2,360 $ 1,276 $ 1,084 54.08% 2000 1,084 2,145 3,229 2,055 1,173 63.65% 2001 1,173 1,294 2,468 1,514 954 61.34% 2002 954 1,798 2,752 1,527 1,225 55.49% 2003 1,225 1,077 2,302 1,818 483 79.00% 2004$ 483 $ 330 $ 813 $ 665 $ 148 81.75%
(1) As of January 1 of each year. (2) All rollback taxes added to the tax roll are entered as tax modifications. (3) Unable to obtain amounts.
244 COUNTY OF HIDALGO, TEXAS EXHIBIT D-12 STATISTICAL SECTION
HIDALGO COUNTY MARKET, ASSESSED, AND TAXABLE VALUATIONS LAST TEN FISCAL YEARS
Fiscal Tax Roll Market Assessed Taxable Year Year Valuation Valuation Valuation
1995 1994$ 10,494,489,360 $ 8,536,556,180 $ 8,236,193,489 1996 1995 11,050,454,363 8,960,617,911 8,647,184,824 1997 1996 11,586,641,398 9,351,159,065 9,007,808,083 1998 1997 12,590,909,776 10,208,364,787 9,845,334,746 1999 1998 13,467,306,013 10,974,937,775 10,598,450,332 2000 1999 14,230,603,869 11,585,759,364 11,195,949,023 2001 2000 15,860,932,254 12,751,038,753 12,349,731,525 2002 2001 17,464,594,237 14,297,752,213 13,658,743,604 2003 2002 18,700,029,906 15,384,983,549 14,598,086,778 2004 2003$ 20,200,588,126 $ 16,627,216,306 $ 15,716,777,121
Hidalgo County Assessed Valuations
Billions $18
$16
$14
$12
$10
$8
$6
$4
$2
$- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
245 COUNTY OF HIDALGO, TEXAS EXHIBIT D-13 STATISTICAL SECTION
DRAINAGE DISTRICT NO. 1 MARKET, ASSESSED, AND TAXABLE VALUATIONS LAST TEN FISCAL YEARS
Fiscal Tax Roll Market Assessed Taxable Year Year Valuation Valuation Valuation
1995 1994$ 9,361,163,800 $ 7,633,555,650 $ 7,630,216,114 1996 1995 10,012,967,786 8,162,392,498 8,158,961,084 1997 1996 10,570,019,158 8,608,373,142 8,594,487,242 1998 1997 11,390,514,626 9,286,355,826 9,272,024,403 1999 1998 12,175,717,775 9,966,987,302 9,952,154,491 2000 1999 13,053,722,630 10,706,899,519 10,692,170,976 2001 2000 14,663,333,482 11,894,546,013 11,879,150,544 2002 2001 15,947,289,354 13,121,563,700 13,039,767,508 2003 2002 17,200,753,536 14,231,115,859 14,008,885,044 2004 2003$ 18,750,945,748 $ 15,524,252,711 $ 15,164,471,918
Hidalgo County Drainage District No. 1 Assessed Valuations
Billions $16
$14
$12
$10
$8
$6
$4
$2
$- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
246 COUNTY OF HIDALGO, TEXAS EXHIBIT D-14 STATISTICAL SECTION
ROAD DISTRICT NO. 5 MARKET, ASSESSED, AND TAXABLE VALUATIONS LAST TEN FISCAL YEARS
Fiscal Tax Roll Market Assessed Taxable Year Year Valuation Valuation Valuation
1995 1994$ 1,291,320,720 $ 1,067,126,167 $ 1,066,374,097 1996 1995 1,389,150,205 1,160,011,896 1,159,220,993 1997 1996 1,485,585,725 1,256,542,979 1,253,544,676 1998 1997 1,693,656,378 1,428,954,454 1,425,871,378 1999 1998 1,824,599,947 1,545,011,462 1,541,848,202 2000 1999 2,029,037,556 1,732,757,940 1,729,517,739 2001 2000 - - - 2002 2001 - - - 2003 2002 - - - 2004 2003$ - $ - $ -
Hidalgo County Road District No. 5 Assessed Valuations
Millions $2,000
$1,500
$1,000
$500
$- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
Note: A Tax has not been levied for Road District No. 5 since Fical Year 2001
247 COUNTY OF HIDALGO, TEXAS EXHIBIT D-15 STATISTICAL SECTION
HIDALGO COUNTY ASSESSED AND MARKET VALUE OF PROPERTY LAST TEN FISCAL YEARS
Ratio of Total Assessed Real Property Minerals & Personal Property Exemptions Total Value to Total Fiscal Assessed Market Assessed Market All Assessed Market Market Year Value Value Value Value Property Value Value Value
1995$ 8,464,175,389 $ 8,464,175,389 $ 2,030,313,971 $ 2,030,313,971 $ 1,957,933,180 $ 8,536,556,180 $ 10,494,489,360 81.34% 1996 9,074,704,168 9,074,704,168 1,975,750,195 1,975,750,195 2,089,836,452 8,960,617,911 11,050,454,363 81.09% 1997 9,498,482,924 9,498,482,924 2,088,158,474 2,088,158,474 2,235,482,333 9,351,159,065 11,586,641,398 80.71% 1998 10,230,012,960 10,230,012,960 2,360,896,816 2,360,896,816 2,382,544,989 10,208,364,787 12,590,909,776 81.08% 1999 10,972,704,840 10,972,704,840 2,494,601,173 2,494,601,173 2,492,368,238 10,974,937,775 13,467,306,013 81.49% 2000 11,816,643,081 11,816,643,081 2,413,960,788 2,413,960,788 2,644,844,505 11,585,759,364 14,230,603,869 81.41% 2001 13,290,403,077 13,290,403,077 2,570,529,177 2,570,529,177 3,109,893,501 12,751,038,753 15,860,932,254 80.39% 2002 13,997,925,380 13,997,925,380 3,466,668,857 3,466,668,857 3,166,842,024 14,297,752,213 17,464,594,237 81.87% 2003 15,100,222,451 15,100,222,451 3,599,807,455 3,599,807,455 3,315,046,357 15,384,983,549 18,700,029,906 82.27% 2004$ 16,452,036,246 $ 16,452,036,246 $ 3,748,551,880 $ 3,748,551,880 $ 3,573,371,820 $ 16,627,216,306 $ 20,200,588,126 82.31%
248 COUNTY OF HIDALGO, TEXAS EXHIBIT D-16 STATISTICAL SECTION
DRAINAGE DISTRICT NO. 1 ASSESSED AND MARKET VALUE OF PROPERTY LAST TEN FISCAL YEARS
Ratio of Total Assessed Real Property Minerals & Personal Property Exemptions Total Value to Total Fiscal Assessed Market Assessed Market All Assessed Market Market Year Value Value Value Value Property Value Value Value
1995$ 8,032,230,169 $ 8,032,230,169 $ 1,328,933,631 $ 1,328,933,631 $ 1,727,608,150 $ 7,633,555,650 $ 9,361,163,800 81.54% 1996 8,633,351,658 8,633,351,658 1,379,616,128 1,379,616,128 1,850,575,288 8,162,392,498 10,012,967,786 81.52% 1997 9,021,192,517 9,021,192,517 1,548,826,641 1,548,826,641 1,961,646,016 8,608,373,142 10,570,019,158 81.44% 1998 9,731,329,663 9,731,329,663 1,659,184,963 1,659,184,963 2,104,158,800 9,286,355,826 11,390,514,626 81.53% 1999 10,459,177,818 10,459,177,818 1,716,539,957 1,716,539,957 2,208,730,473 9,966,987,302 12,175,717,775 81.86% 2000 11,118,040,214 11,118,040,214 1,935,682,416 1,935,682,416 2,346,823,111 10,706,899,519 13,053,722,630 82.02% 2001 12,695,200,230 12,695,200,230 1,968,133,252 1,968,133,252 2,768,787,469 11,894,546,013 14,663,333,482 81.12% 2002 13,385,672,996 13,385,672,996 2,561,616,358 2,561,616,358 2,825,725,654 13,121,563,700 15,947,289,354 82.28% 2003 14,460,622,160 14,460,622,160 2,740,131,376 2,740,131,376 2,969,637,677 14,231,115,859 17,200,753,536 82.74% 2004$ 15,784,952,138 $ 15,784,952,138 $ 2,965,993,610 $ 2,965,993,610 $ 3,226,693,037 $ 15,524,252,711 $ 18,750,945,748 82.79%
249 COUNTY OF HIDALGO, TEXAS EXHIBIT D-17 STATISTICAL SECTION
PROPERTY TAX RATES (1) LAST TEN FISCAL YEARS
Fiscal Year: 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 Tax Roll: 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
Hidalgo County Operating: General Fund$ 0.5168 $ 0.5115 $ 0.4452 $ 0.4254 $ 0.3943 $ 0.3934 $ 0.4395 $ 0.4286 $ 0.4084 $ 0.3855 Road & Bridge Fund - - 0.0041 0.0100 0.0260 0.0260 0.0100 0.0100 0.0100 0.0065 Park Fund 0.0100 0.0100 0.0100 0.0100 0.0100 0.0100 0.0100 0.0100 0.0092 0.0073 Total Operating 0.5268 0.5215 0.4593 0.4454 0.4303 0.4294 0.4595 0.4486 0.4276 0.3993
Debt Service: Certificates of Obligation 1990A - - - - - 0.0006 0.0015 0.0015 0.0015 0.0020 Refunding Bonds 1990 - - - - 0.0005 0.0011 0.0030 0.0039 0.0041 0.0054 Refunding Bonds 1991 - - - - 0.0018 0.0018 0.0045 0.0050 0.0041 0.0031 Certificates of Obligation 1992 ------0.0010 0.0023 0.0031 Certificates of Obligation 1993 ------0.0011 Certificates of Obligation 1995 ------0.0064 - Refunding Bonds 1996 0.0048 0.0024 0.0033 0.0038 0.0058 0.0055 0.0062 0.0054 - - Refunding Bonds 1998 0.0032 0.0058 0.0024 0.0023 0.0039 0.0039 - - - - Certificates of Obligation 1998 0.0065 0.0018 0.0060 0.0009 0.0044 0.0044 - - - - Certificates of Obligation 2000 0.0230 0.0253 0.0302 0.0484 ------Certificates of Obligation 2001 0.0121 0.0134 0.0183 ------Certificates of Obligation 2002 0.0080 0.0128 ------Notes Payable 0.0056 0.0070 ------Total Debt Service 0.0632 0.0685 0.0602 0.0553 0.0164 0.0173 0.0152 0.0168 0.0184 0.0147
Total Hidalgo County 0.5900 0.5900 0.5195 0.5007 0.4467 0.4467 0.4747 0.4654 0.4460 0.4140
Drainage District No. 1 Operating 0.0435 0.0456 0.0456 0.0376 0.0409 0.0410 0.0390 0.0409 0.0415 0.0396 Debt Service ------0.0715 Total Drainage District No. 1 0.0435 0.0456 0.0456 0.0376 0.0409 0.0410 0.0390 0.0409 0.0415 0.1111
Road District No. 5 $ - $ - $ - $ - $ 0.0109 $ 0.0195 $ 0.0230 $ 0.0250 $ 0.0250 $ 0.0200
(1) These property tax rates are expressed in dollars per $100 assessed valuation.
Hidalgo County Property Tax Rates Per $100 Valuation
0.60 0.55 0.50 0.45 0.40 0.35 0.30 Debt Service 0.25 Tax Rates Operating 0.20 0.15 0.10 0.05 0.00 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 Fiscal Years
250 COUNTY OF HIDALGO, TEXAS EXHIBIT D-18 STATISTICAL SECTION
PROPERTY TAX RATES (1) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS
Fiscal Year: 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 Tax Roll: 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
Hidalgo County$ 0.5900 $ 0.5900 $ 0.5195 $ 0.5007 $ 0.4467 $ 0.4467 $ 0.4747 $ 0.4654 $ 0.4460 $ 0.4140 Drainage District No. 1 0.0435 0.0456 0.0456 0.0376 0.0384 0.0410 0.0394 0.0409 0.0415 0.1111 Road District No. 5 - - - - 0.0109 0.0195 0.0230 0.0250 0.0250 0.0200 EMS District No. 1 0.0183 0.0183 0.0189 0.0191 0.0200 0.0225 0.0284 0.0295 0.0179 0.0171 EMS District No. 2 0.0275 0.0275 0.0275 0.0275 0.0275 0.0283 0.0300 0.0300 0.0297 0.0295 EMS District No. 3 0.0125 0.0125 0.0125 0.0150 0.0150 0.0150 0.0175 0.0195 0.0211 0.0205 EMS District No. 4 0.0241 0.0257 0.0253 0.0254 0.0255 0.0267 0.0267 0.0286 0.0286 0.0282 City of Alamo 0.5223 0.5364 0.5364 0.5364 0.5394 0.6353 0.6700 0.6819 0.6819 0.6819 City of Alton 0.4296 0.3990 0.4056 0.4056 0.4056 0.4056 0.4056 0.4250 0.4250 0.4208 City of Donna 1.0398 1.0398 1.0373 1.0347 1.0200 1.0200 1.0320 1.0548 0.8968 0.8453 City of Edcouch 0.7972 0.7824 0.7849 0.7900 0.7966 0.7522 0.7500 0.7692 0.7470 0.7231 City of Edinburg 0.6350 0.6350 0.6350 0.6350 0.6350 0.6350 0.6350 0.6350 0.6350 0.6400 City of Elsa 0.7511 0.7534 0.7534 - 0.7328 0.7328 0.7328 0.7633 0.7630 0.7251 City of Granjeno 0.2755 0.2534 0.2531 0.2590 0.2500 0.2307 0.2500 - - - City of Hidalgo 0.3514 0.3514 0.3514 - 0.3514 0.3514 0.3514 0.3514 0.3514 0.3514 City of La Joya 0.6465 0.6604 0.6708 0.6767 0.6800 0.6800 0.6632 0.6632 0.6150 0.5900 City of La Villa 0.7610 0.8175 0.7787 0.7787 0.7637 0.7637 0.8082 0.8082 0.8317 0.8317 City of McAllen 0.4213 0.4213 0.4213 0.4213 0.4213 0.4213 0.4213 0.4532 0.4532 0.4668 City of Mercedes 0.8700 0.8400 0.8500 0.8600 0.8800 0.8905 0.8995 0.8627 0.8627 0.8361 City of Mission 0.5500 0.5500 0.6200 0.6200 0.6200 0.6200 0.6000 0.6100 0.5847 0.5900 City of Palmview 0.3107 0.3081 0.3119 - 0.3247 0.3247 0.3243 0.3257 0.3300 0.3500 City of Peñitas 0.3000 0.2934 0.2934 0.3000 0.3000 - - - - - City of Pharr 0.6831 0.6900 0.6623 0.6423 0.6423 0.6300 0.6000 0.6000 0.6000 0.5700 City of Progreso 0.3873 0.3654 0.3654 0.3654 0.3654 0.3654 0.4000 - - - City of San Juan 0.6831 0.6875 0.6875 0.6875 0.7129 0.7229 0.8108 0.8421 0.8521 0.8681 City of Sullivan 0.3000 ------City of Weslaco 0.6995 0.7359 0.7791 0.7850 0.7850 0.7859 0.7600 0.7234 0.7236 0.6985 Donna ISD 1.6600 1.5600 1.4900 - 1.5000 1.5600 1.4100 1.4100 1.3500 1.2500 Edcouch-Elsa ISD 1.6000 1.6000 1.6000 - 1.5400 1.6000 1.5500 1.4100 1.3900 1.3000 Edinburg ISD 1.5993 1.5516 1.4111 1.5520 1.5300 1.5550 1.4750 1.3950 1.3450 1.2600 Hidalgo ISD 1.5900 1.5700 1.5700 1.5700 1.5700 1.5700 1.5400 1.4244 1.3900 1.3631 La Joya ISD 1.5699 1.5699 1.5280 1.4558 1.5560 1.5560 1.4663 1.5560 1.5000 1.4064 La Villa ISD 1.5867 1.5667 1.4276 1.5763 1.5850 1.5850 1.5850 1.5000 1.4000 1.3200 McAllen ISD 1.5400 1.5425 1.5425 1.5800 1.5300 1.5300 1.4500 1.4500 1.3454 1.3100 Mercedes ISD 1.6200 1.6200 1.5900 1.5900 1.5100 1.5100 1.4100 1.4100 1.3600 1.3100 Mission ISD 1.5841 1.5841 1.5341 1.5341 1.5050 1.5050 1.4550 1.4550 1.3950 1.4000 Monte Alto ISD 1.5776 1.5806 1.5459 1.5400 1.4500 1.4500 1.4300 1.4000 1.3600 1.3100 Pharr-San Juan-Alamo ISD 1.6115 1.6221 1.6217 1.6300 1.5900 1.5900 1.5739 1.5000 1.4299 1.4296 Progreso ISD 1.6540 1.5900 1.5900 1.5800 1.5800 1.5500 1.5300 1.4300 1.4100 1.4100 Sharyland ISD 1.5550 1.5400 1.5400 1.5400 1.4600 1.4600 1.4100 1.4100 1.3700 1.3700 South Texas College 0.1738 0.1776 0.0897 0.0922 0.0920 0.0918 0.0949 0.1000 - - South Texas ISD 0.0392 0.0392 0.0392 0.0372 0.0372 0.0372 0.0385 0.0370 0.0369 0.0363 Valley View ISD 1.4800 1.4700 1.4700 - 1.4200 1.4200 1.3800 1.3800 1.3500 1.3200 Weslaco ISD 1.4300 1.4300 1.4300 1.4300 1.3975 1.3975 1.3975 1.3975 1.3975 1.3975 Donna Irrigation District No. 1 0.2000 2.0000 0.2000 - 0.0170 0.2100 0.2100 0.2100 0.2100 0.1800 Engleman Water District #6 0.3357 0.3357 0.3357 0.3357 0.3290 0.3279 0.3520 0.3631 0.3631 0.3631 Mercedes Water District #9 - - - - 0.2100 0.2400 0.2000 0.2000 0.2000 0.2000 Valley Acres Water District$ - $ - $ - $ - $ - $ - $ 0.8326 $ 0.8386 $ 0.7839 $ 0.7588
(1) These property taxes rates are expressed in dollars per $100 assessed valuation.
251 COUNTY OF HIDALGO, TEXAS EXHIBIT D-19 STATISTICAL SECTION
HIDALGO COUNTY PRINCIPAL TAXPAYERS FISCAL YEAR 2004
Taxable % of Taxpayer Type of Business Value (1) Total Levy (2) Tax (3)
Shell Western E & P, Inc. Natural Gas & Oil Properties,$ 302,203,010 1.92%$ 1,782,998 Real Estate
Calpine Constrn Finance Co LP Electric Utility 233,210,190 1.48% 1,375,940
El Paso Production Oil & Gas Natural Gas & Oil Properties 161,414,300 1.03% 952,344
AEP Texas Central Co Electric Utility 153,265,270 0.98% 904,265
Southwestern Bell Tele Telephone Utility 100,410,407 0.64% 592,421
Chevron USA Inc Natural Gas & Oil Properties 95,690,999 0.61% 564,577
H E Butt Grocery Company Retail Sales 69,683,810 0.44% 411,134
Wal-Mart Stores Texas LP # 452 Retail Sales 66,846,041 0.43% 394,392
Universal Health Services Health Services 62,685,769 0.40% 369,846
Calpine Hidalgo Energy Center Electric Utility 45,833,280 0.29% 270,416
Total $ 1,291,243,076 8.22%$ 7,618,334
(1) Appraisal District certified values as of 7/29/03 for FY2004. (2) Total tax levy is $92,733,814$ 92,733,814 (3) Tax rate is $0.5900 $ 0.5900
252 COUNTY OF HIDALGO, TEXAS EXHIBIT D-20 STATISTICAL SECTION
DRAINAGE DISTRICT NO. 1 PRINCIPAL TAXPAYERS FISCAL YEAR 2004
Taxable % of Taxpayer Type of Business Value (1) Total Levy (2) Tax (3)
Calpine Construction Finance Co LP Electric Utility$ 201,236,130 1.33%$ 87,538
AEP Texas Central Co Electric Utility 133,707,740 0.88% 58,163
Frontera Generation LTP Electric Utility 125,587,000 0.83% 54,630
Southwestern Bell Telephone Utility 96,984,527 0.64% 42,188
H. E. Butt Grocery Company Retail Sales 79,382,262 0.52% 34,531
Wal-Mart Stores East, Inc. #452 Retail Sales 69,829,564 0.46% 30,376
Universal Health Services Health Services 66,780,559 0.44% 29,050
El Paso Production Oil & Gas Natural Gas & Oil Properties 46,783,980 0.31% 20,351
Calpine Hidalgo Energy Center Electric Utility 45,833,280 0.30% 19,937
Rio Grande Regional Hospital Health Services 39,034,063 0.26% 16,980
Total $ 905,159,105 5.97%$ 393,744
(1) Appraisal District certified values as of 7/29/03 for FY2004. (2) Total tax levy is $6,596,873$ 6,596,873 (3) Tax rate is $0.0456 $ 0.0435
253 COUNTY OF HIDALGO, TEXAS EXHIBIT D-21 STATISTICAL SECTION
COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 2004
Assessed Value (1) $ 18,652,628,614
Legal debt margin: Debit limitation - 25 percent of assessed value (2) $ 4,663,157,154
Debt applicable to limitation: Bonded debt: County Wide $ 129,310,000 Road Districts - Drainage District No. 1 - Total bonded debt 129,310,000 Less: amounts available for repayment of general obligation bonds Road Districts $ - Drainage District No. 1 101,175 Notes Payable Fund 376,520 Refunding Bonds, Series 1996 262,613 Refunding Bonds, Series 1998 278,105 Certificates of Obligation, Series 1998 240,834 Certificates of Obligation, Series 2000 369,504 Certificates of Obligation, Series 2001 459,662 Certificates of Obligation, Series 2002 553,542 Certificates of Obligation, Series 2004$ 150,533 Total amount available for repayment of general obligation bonds$ 2,792,488 Total debt applicable to limitation (126,517,512)
Legal debt margin $ 4,536,639,642
(1) FY 2005 Real Estate Assessed Valuation (2004 Tax Roll / Values as of Oct. 9, 2004) (2) Texas Constitution, Article III, Section 52
254 COUNTY OF HIDALGO, TEXAS EXHIBIT D-22 STATISTICAL SECTION
COMBINED SCHEDULE OF ANNUAL DEBT SERVICE REQUIREMENTS UNTIL MATURITY ALL BONDED DEBT
County Wide Issues Year of Principal Interest Total Annual Payment Requirements Requirements Debt Requirements
2005$ 4,350,000.00 $ 6,412,131.26 $ 10,762,131.26 2006 4,795,000.00 6,218,636.26 11,013,636.26 2007 5,525,000.00 6,013,126.26 11,538,126.26 2008 6,000,000.00 5,786,976.26 11,786,976.26 2009 6,435,000.00 5,535,583.76 11,970,583.76 2010 6,650,000.00 5,232,993.76 11,882,993.76 2011 7,015,000.00 4,952,431.26 11,967,431.26 2012 7,240,000.00 4,640,451.26 11,880,451.26 2013 7,480,000.00 4,288,561.26 11,768,561.26 2014 7,780,000.00 3,921,266.26 11,701,266.26 2015 7,165,000.00 3,524,507.50 10,689,507.50 2016 7,545,000.00 3,136,645.00 10,681,645.00 2017 7,970,000.00 2,726,107.50 10,696,107.50 2018 8,380,000.00 2,294,295.00 10,674,295.00 2019 8,165,000.00 1,846,585.00 10,011,585.00 2020 9,065,000.00 1,412,675.00 10,477,675.00 2021 7,135,000.00 923,137.50 8,058,137.50 2022 6,955,000.00 544,175.00 7,499,175.00 2023 1,785,000.00 192,150.00 1,977,150.00 2024 1,875,000.00 98,437.50 1,973,437.50
TOTALS$ 129,310,000.00 $ 69,700,872.60 $ 199,010,872.60
Debt Service Requirements Until Maturity
Millions $12
$10
$8
$6 Interest Principal $4
$2
$- 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 Fiscal Years
255 COUNTY OF HIDALGO, TEXAS EXHIBIT D-23 STATISTICAL SECTION
HIDALGO COUNTY REFUNDING BONDS, SERIES 1996 (1426) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005 $ 25,750.00 $ 25,750.00 8/15/2005 5.000%$ 510,000.00 25,750.00 535,750.00 2/15/2006 13,000.00 13,000.00 8/15/2006 5.000% 520,000.00 13,000.00 533,000.00
TOTALS$ 1,030,000.00 $ 77,500.00 $ 1,107,500.00
DATE: July 15, 1996 ISSUED: $4,085,000.00 PAYABLE: Chase Bank of Texas, N.A., San Antonio, Texas OPTION: No Option COUNTY WIDE ISSUE
256 COUNTY OF HIDALGO, TEXAS EXHIBIT D-24 STATISTICAL SECTION
HIDALGO COUNTY REFUNDING BONDS, SERIES 1998 (1427) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005 $ 68,750.00 $ 68,750.00 8/15/2005 4.100%$ 750,000.00 68,750.00 818,750.00 2/15/2006 53,375.00 53,375.00 8/15/2006 4.150% 800,000.00 53,375.00 853,375.00 2/15/2007 36,775.00 36,775.00 8/15/2007 4.200% 840,000.00 36,775.00 876,775.00 2/15/2008 19,135.00 19,135.00 8/15/2008 4.300% 890,000.00 19,135.00 909,135.00
TOTALS$ 3,280,000.00 $ 356,070.00 $ 3,636,070.00
DATE: September 15, 1998 ISSUED: $5,845,000.00 PAYABLE: The Bank of New York OPTION: No Option COUNTY WIDE ISSUE
257 COUNTY OF HIDALGO, TEXAS EXHIBIT D-25 STATISTICAL SECTION
HIDALGO COUNTY CERTIFICATES OF OBLIGATION, SERIES 1998 (1428) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005$ 161,007.50 $ 161,007.50 8/15/2005 4.150%$ 30,000.00 161,007.50 191,007.50 2/15/2006 160,385.00 160,385.00 8/15/2006 4.200% 30,000.00 160,385.00 190,385.00 2/15/2007 159,755.00 159,755.00 8/15/2007 4.250% 380,000.00 159,755.00 539,755.00 2/15/2008 151,680.00 151,680.00 8/15/2008 4.300% 375,000.00 151,680.00 526,680.00 2/15/2009 143,617.50 143,617.50 8/15/2009 4.400% 485,000.00 143,617.50 628,617.50 2/15/2010 132,947.50 132,947.50 8/15/2010 4.500% 505,000.00 132,947.50 637,947.50 2/15/2011 121,585.00 121,585.00 8/15/2011 4.600% 530,000.00 121,585.00 651,585.00 2/15/2012 109,395.00 109,395.00 8/15/2012 4.700% 555,000.00 109,395.00 664,395.00 2/15/2013 96,352.50 96,352.50 8/15/2013 4.750% 580,000.00 96,352.50 676,352.50 2/15/2014 82,577.50 82,577.50 8/15/2014 4.800% 605,000.00 82,577.50 687,577.50 2/15/2015 68,057.50 68,057.50 8/15/2015 4.900% 635,000.00 68,057.50 703,057.50 2/15/2016 52,500.00 52,500.00 8/15/2016 5.000% 665,000.00 52,500.00 717,500.00 2/15/2017 35,875.00 35,875.00 8/15/2017 5.000% 700,000.00 35,875.00 735,875.00 2/15/2018 18,375.00 18,375.00 8/15/2018 5.000% 735,000.00 18,375.00 753,375.00
TOTALS$ 6,810,000.00 $ 2,988,220.00 $ 9,798,220.00
DATE: September 15, 1998 ISSUED: $6,990,000.00 PAYABLE: The Bank of New York CALL OPTION: Bonds maturing on 08/15/2009 to 08/15/2018 callable in whole or in part on any date beginning 08/15/2008 @ par. COUNTY WIDE ISSUE
258 COUNTY OF HIDALGO, TEXAS EXHIBIT D-26 STATISTICAL SECTION
HIDALGO COUNTY CERTIFICATES OF OBLIGATION, SERIES 2000 (1430) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005$ 1,120,671.25 $ 1,120,671.25 8/15/2005 5.000%$ 1,735,000.00 1,120,671.25 2,855,671.25 2/15/2006 1,077,296.25 1,077,296.25 8/15/2006 5.000% 1,815,000.00 1,077,296.25 2,892,296.25 2/15/2007 1,031,921.25 1,031,921.25 8/15/2007 5.000% 1,910,000.00 1,031,921.25 2,941,921.25 2/15/2008 984,171.25 984,171.25 8/15/2008 5.000% 2,010,000.00 984,171.25 2,994,171.25 2/15/2009 933,921.25 933,921.25 8/15/2009 5.050% 2,100,000.00 933,921.25 3,033,921.25 2/15/2010 880,896.25 880,896.25 8/15/2010 5.100% 2,210,000.00 880,896.25 3,090,896.25 2/15/2011 824,541.25 824,541.25 8/15/2011 5.150% 2,320,000.00 824,541.25 3,144,541.25 2/15/2012 764,801.25 764,801.25 8/15/2012 5.200% 2,435,000.00 764,801.25 3,199,801.25 2/15/2013 701,491.25 701,491.25 8/15/2013 5.250% 2,565,000.00 701,491.25 3,266,491.25 2/15/2014 634,160.00 634,160.00 8/15/2014 5.300% 2,700,000.00 634,160.00 3,334,160.00 2/15/2015 562,610.00 562,610.00 8/15/2015 6.000% 2,845,000.00 562,610.00 3,407,610.00 2/15/2016 477,260.00 477,260.00 8/15/2016 6.000% 3,015,000.00 477,260.00 3,492,260.00 2/15/2017 386,810.00 386,810.00 8/15/2017 5.500% 3,195,000.00 386,810.00 3,581,810.00 2/15/2018 298,947.50 298,947.50 8/15/2018 5.550% 3,370,000.00 298,947.50 3,668,947.50 2/15/2019 205,430.00 205,430.00 8/15/2019 5.600% 3,560,000.00 205,430.00 3,765,430.00 2/15/2020 105,750.00 105,750.00 8/15/2020 5.625% 3,760,000.00 105,750.00 3,865,750.00
TOTALS$ 41,545,000.00 $ 21,981,357.50 $ 63,526,357.50
DATE: June 15, 2000 ISSUED: $48,160,000.00 PAYABLE: Texas State Bank, McAllen, Texas CALL OPTION: Bonds maturing on 08/15/2011 to 08/15/2020 callable in whole or in part on any date beginning 08/15/2010 @ par. COUNTY WIDE ISSUE
259 COUNTY OF HIDALGO, TEXAS EXHIBIT D-27 STATISTICAL SECTION
HIDALGO COUNTY CERTIFICATES OF OBLIGATION, SERIES 2001 (1431) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005$ 616,340.00 $ 616,340.00 8/15/2005 4.000%$ 1,025,000.00 616,340.00 1,641,340.00 2/15/2006 595,840.00 595,840.00 8/15/2006 4.150% 500,000.00 595,840.00 1,095,840.00 2/15/2007 585,465.00 585,465.00 8/15/2007 4.250% 595,000.00 585,465.00 1,180,465.00 2/15/2008 572,821.25 572,821.25 8/15/2008 4.400% 690,000.00 572,821.25 1,262,821.25 2/15/2009 557,641.25 557,641.25 8/15/2009 4.500% 940,000.00 557,641.25 1,497,641.25 2/15/2010 536,491.25 536,491.25 8/15/2010 4.550% 1,025,000.00 536,491.25 1,561,491.25 2/15/2011 513,172.50 513,172.50 8/15/2011 5.250% 1,120,000.00 513,172.50 1,633,172.50 2/15/2012 483,772.50 483,772.50 8/15/2012 4.750% 1,190,000.00 483,772.50 1,673,772.50 2/15/2013 455,510.00 455,510.00 8/15/2013 4.850% 1,245,000.00 455,510.00 1,700,510.00 2/15/2014 425,318.75 425,318.75 8/15/2014 5.750% 1,300,000.00 425,318.75 1,725,318.75 2/15/2015 387,943.75 387,943.75 8/15/2015 5.750% 1,365,000.00 387,943.75 1,752,943.75 2/15/2016 348,700.00 348,700.00 8/15/2016 5.750% 1,445,000.00 348,700.00 1,793,700.00 2/15/2017 307,156.25 307,156.25 8/15/2017 5.750% 1,535,000.00 307,156.25 1,842,156.25 2/15/2018 263,025.00 263,025.00 8/15/2018 5.250% 1,620,000.00 263,025.00 1,883,025.00 2/15/2019 220,500.00 220,500.00 8/15/2019 5.250% 2,265,000.00 220,500.00 2,485,500.00 2/15/2020 161,043.75 161,043.75 8/15/2020 5.250% 2,385,000.00 161,043.75 2,546,043.75 2/15/2021 98,437.50 98,437.50 8/15/2021 5.250% 3,750,000.00 98,437.50 3,848,437.50
TOTALS$ 23,995,000.00 $ 14,258,357.50 $ 38,253,357.50
DATE: April 15, 2001 ISSUED: $25,675,000.00 PAYABLE: Texas State Bank, McAllen, Texas CALL OPTION: Bonds maturing on 08/15/2012 to 08/15/2017 and 08/15/2019 and 08/15/2021 callable in whole or in part on any date beginning 08/15/2011 @ par. The following term bonds are subject to mandatory sinking fund redemption each 8/15 @ par as follows: Mty 08/15/2019: 1,620M-08/15/2018; 2,265M matures 08/15/2019. Mty 08/15/2021: 2,385M-08/15/2020; 3,750M matures 08/15/2021. COUNTY WIDE ISSUE
260 COUNTY OF HIDALGO, TEXAS EXHIBIT D-28 STATISTICAL SECTION
HIDALGO COUNTY CERTIFICATES OF OBLIGATION, SERIES 2002 (1432) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005$ 486,971.88 $ 486,971.88 8/15/2005 2.250%$ 100,000.00 486,971.88 586,971.88 2/15/2006 485,846.88 485,846.88 8/15/2006 2.650% 100,000.00 485,846.88 585,846.88 2/15/2007 484,521.88 484,521.88 8/15/2007 2.950% 135,000.00 484,521.88 619,521.88 2/15/2008 482,530.63 482,530.63 8/15/2008 3.250% 305,000.00 482,530.63 787,530.63 2/15/2009 477,574.38 477,574.38 8/15/2009 3.500% 840,000.00 477,574.38 1,317,574.38 2/15/2010 462,874.38 462,874.38 8/15/2010 3.700% 870,000.00 462,874.38 1,332,874.38 2/15/2011 446,779.38 446,779.38 8/15/2011 3.800% 915,000.00 446,779.38 1,361,779.38 2/15/2012 429,394.38 429,394.38 8/15/2012 3.900% 940,000.00 429,394.38 1,369,394.38 2/15/2013 411,064.38 411,064.38 8/15/2013 4.000% 980,000.00 411,064.38 1,391,064.38 2/15/2014 391,464.38 391,464.38 8/15/2014 4.125% 1,015,000.00 391,464.38 1,406,464.38 2/15/2015 370,530.00 370,530.00 8/15/2015 4.200% 1,055,000.00 370,530.00 1,425,530.00 2/15/2016 348,375.00 348,375.00 8/15/2016 5.500% 1,100,000.00 348,375.00 1,448,375.00 2/15/2017 318,125.00 318,125.00 8/15/2017 5.500% 1,165,000.00 318,125.00 1,483,125.00 2/15/2018 286,087.50 286,087.50 8/15/2018 5.500% 1,225,000.00 286,087.50 1,511,087.50 2/15/2019 252,400.00 252,400.00 8/15/2019 5.500% 1,295,000.00 252,400.00 1,547,400.00 2/15/2020 216,787.50 216,787.50 8/15/2020 5.500% 1,365,000.00 216,787.50 1,581,787.50 2/15/2021 179,250.00 179,250.00 8/15/2021 5.500% 1,750,000.00 179,250.00 1,929,250.00 2/15/2022 131,125.00 131,125.00 8/15/2022 5.000% 5,245,000.00 131,125.00 5,376,125.00
TOTALS$ 20,400,000.00 $ 13,323,405.10 $ 33,723,405.10
DATE: August 1, 2002 ISSUED: $20,910,000.00 PAYABLE: Texas State Bank, McAllen, Texas CALL OPTION: Bonds maturing on 08/15/2013 to 08/15/2022 callable in whole or in part on any date beginning 08/15/2012 @ par. COUNTY WIDE ISSUE
261 COUNTY OF HIDALGO, TEXAS EXHIBIT D-29 STATISTICAL SECTION
HIDALGO COUNTY CERTIFICATES OF OBLIGATION, SERIES 2004 (1434) SCHEDULE OF DEBT SERVICE REQUIREMENTS UNTIL MATURITY
Interest Rate (Per Bond) Date of February & Principal Interest Total Annual Payment August 15th Requirements Requirements Requirements
2/15/2005$ 726,575.00 $ 726,575.00 8/15/2005 3.000%$ 200,000.00 726,575.00 926,575.00 2/15/2006 723,575.00 723,575.00 8/15/2006 3.000% 1,030,000.00 723,575.00 1,753,575.00 2/15/2007 708,125.00 708,125.00 8/15/2007 3.000% 1,665,000.00 708,125.00 2,373,125.00 2/15/2008 683,150.00 683,150.00 8/15/2008 3.250% 1,730,000.00 683,150.00 2,413,150.00 2/15/2009 655,037.50 655,037.50 8/15/2009 5.000% 2,070,000.00 655,037.50 2,725,037.50 2/15/2010 603,287.50 603,287.50 8/15/2010 3.250% 2,040,000.00 603,287.50 2,643,287.50 2/15/2011 570,137.50 570,137.50 8/15/2011 3.500% 2,130,000.00 570,137.50 2,700,137.50 2/15/2012 532,862.50 532,862.50 8/15/2012 5.000% 2,120,000.00 532,862.50 2,652,862.50 2/15/2013 479,862.50 479,862.50 8/15/2013 5.000% 2,110,000.00 479,862.50 2,589,862.50 2/15/2014 427,112.50 427,112.50 8/15/2014 5.000% 2,160,000.00 427,112.50 2,587,112.50 2/15/2015 373,112.50 373,112.50 8/15/2015 5.000% 1,265,000.00 373,112.50 1,638,112.50 2/15/2016 341,487.50 341,487.50 8/15/2016 4.000% 1,320,000.00 341,487.50 1,661,487.50 2/15/2017 315,087.50 315,087.50 8/15/2017 5.000% 1,375,000.00 315,087.50 1,690,087.50 2/15/2018 280,712.50 280,712.50 8/15/2018 5.000% 1,430,000.00 280,712.50 1,710,712.50 2/15/2019 244,962.50 244,962.50 8/15/2019 4.250% 1,045,000.00 244,962.50 1,289,962.50 2/15/2020 222,756.25 222,756.25 8/15/2020 5.000% 1,555,000.00 222,756.25 1,777,756.25 2/15/2021 183,881.25 183,881.25 8/15/2021 5.250% 1,635,000.00 183,881.25 1,818,881.25 2/15/2022 140,962.50 140,962.50 8/15/2022 5.250% 1,710,000.00 140,962.50 1,850,962.50 2/15/2023 96,075.00 96,075.00 8/15/2023 5.250% 1,785,000.00 96,075.00 1,881,075.00 2/15/2024 49,218.75 49,218.75 8/15/2024 5.250% 1,875,000.00 49,218.75 1,924,218.75
TOTALS$ 32,250,000.00 $ 16,715,962.50 $ 48,965,962.50
DATE: August 15, 2004 ISSUED: $32,700,000.00 PAYABLE: Texas State Bank, McAllen, TX CALL OPTION: Bonds maturing on and after 08/15/2015 are callable in whole or in part on any date beginning 08/15/2014 @ par. COUNTY WIDE ISSUE
262 COUNTY OF HIDALGO, TEXAS EXHIBIT D-30 STATISTICAL SECTION
HIDALGO COUNTY RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS
Ratio of Net Gross Less Net Bonded Debt Net Bonded Fiscal Assessed Bonded Debt Service Bonded to Assessed Debt per Year Population (1) Value Debt Fund (2) Debt Value Capita
1995 467,315$ 8,536,556,180 $ 9,820,000 $ 3,657,467 $ 6,162,533 0.07%$ 13.19 1996 486,147 8,960,617,911 11,850,000 4,191,898 7,658,102 0.09% 15.75 1997 505,739 9,351,159,065 11,120,000 4,564,154 6,555,846 0.07% 12.96 1998 526,120 10,208,364,787 17,665,000 5,035,733 12,629,267 0.12% 24.00 1999 547,323 10,974,937,775 16,765,000 5,534,882 11,230,118 0.10% 20.52 2000 569,463 11,585,759,364 63,910,000 2,193,279 61,716,721 0.53% 108.38 2001 592,412 12,751,038,753 86,610,000 2,118,188 84,491,812 0.66% 142.62 2002 616,286 14,297,752,213 104,320,000 2,311,931 102,008,069 0.71% 165.52 2003 641,122 15,384,983,549 100,690,000 1,883,528 98,806,472 0.64% 154.11 2004 666,959$ 16,627,216,306 $ 129,310,000 $ 2,792,488 $ 126,517,512 0.76%$ 189.69
(1) The population figures for years 1995-1999 are based on an estimated annual increase of 4.03% over the 1990 Federal Census of 383,545. The population figures for years 2001-2004 are based on an estimated annual increase of 4.03% over the 2000 Federal Census of 569,463. All population figures are for the entire County of Hidalgo. (2) Amount available for repayment of general obligation bonds as of December 31st.
Hidalgo County Net Bonded Debt Per Capita
$200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Years
263 COUNTY OF HIDALGO, TEXAS EXHIBIT D-31 STATISTICAL SECTION
DRAINAGE DISTRICT NO. 1 RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS
Ratio of Net Gross Less Net Bonded Debt Net Bonded Fiscal Assessed Bonded Debt Service Bonded to Assessed Debt per Year Population (1) Value Debt Fund (2) Debt Value Capita
1995 467,315$ 7,633,555,650 $ 1,910,000 $ 2,766,486 $ - 0.00%$ - 1996 486,147 8,162,392,498 1,635,000 3,253,186 - 0.00% - 1997 505,739 8,608,373,142 1,345,000 3,537,685 - 0.00% - 1998 526,120 9,286,355,826 1,040,000 3,785,377 - 0.00% - 1999 547,323 9,966,987,302 715,000 3,889,075 - 0.00% - 2000 569,463 10,706,899,519 - 250,396 - 0.00% - 2001 592,412 11,894,546,013 - 480,339 - 0.00% - 2002 616,286 13,121,563,700 - 652,718 - 0.00% - 2003 641,122 14,231,115,859 - 8,032 - 0.00% - 2004 666,959$ 15,524,252,711 $ - $ 101,175 $ - 0.00%$ -
(1) The population figures for years 1995-1999 are based on an estimated annual increase of 4.03% over the 1990 Federal Census of 383,545. The population figures for years 2001-2004 are based on an estimated annual increase of 4.03% over the 2000 Federal Census of 569,463. All population figures are for the entire County of Hidalgo. (2) Amount available for repayment of general obligation bonds as of December 31st.
264 COUNTY OF HIDALGO, TEXAS EXHIBIT D-32 STATISTICAL SECTION
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS
Ratio of Total Debt Service to General General Fiscal Total Governmental Governmental Year Principal Interest (1) Debt Service Expenditures (2) Expenditures
1995$ 6,020,000 $ 941,141 $ 6,961,141 $ 109,479,020 6% 1996 1,365,000 850,555 2,215,555 109,921,840 2% 1997 1,245,000 905,924 2,150,924 124,924,725 2% 1998 1,340,000 810,139 2,150,139 143,500,601 1% 1999 1,475,000 1,335,638 2,810,638 161,714,460 2% 2000 2,030,000 847,983 2,877,983 165,460,241 2% 2001 2,975,000 3,720,307 6,695,307 211,263,540 3% 2002 3,200,000 4,877,398 8,077,398 224,553,142 4% 2003 3,630,000 5,319,611 8,949,611 209,900,585 4% 2004$ 3,630,000 $ 5,123,224 $ 8,753,224 $ 229,837,406 4%
(1) Excludes bond issuance and other costs (2) Includes general, special revenue, debt service, and capital projects funds.
Debt Service Payments
Millions $9 $8 $7 $6 $5 Interest $4 Principal $3 $2 $1 $- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year
265 COUNTY OF HIDALGO, TEXAS EXHIBIT D-33 STATISTICAL SECTION
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT GENERAL OBLIGATION BONDS DECEMBER 31, 2004
Amount Gross Debt Percentage Applicable to Amount Less Cash Applicable to Hidalgo County Applicable to Jurisdiction Investments Hidalgo County as of Hidalgo County
Direct Debt: Hidalgo County $ 125,212,355 100.00% 07/01/04$ 125,212,355 Total Direct Debt 125,212,355 125,212,355
Overlapping Debt: Independent School District Donna 66,212,955 100.00% 08/31/03 66,212,955 Edcouch - Elsa 29,312,913 100.00% 08/31/03 29,312,913 Edinburg 110,459,457 100.00% 08/31/03 110,459,457 Hidalgo 22,934,185 100.00% 08/31/03 22,934,185 La Joya 169,562,642 100.00% 08/15/04 169,562,642 La Villa 4,118,925 100.00% 08/31/03 4,118,925 McAllen 36,350,000 100.00% 09/30/04 36,350,000 Mercedes 37,312,466 100.00% 08/31/03 37,312,466 Mission 64,421,339 100.00% 08/31/03 64,421,339 Monte Alto 3,105,000 100.00% 09/30/04 3,105,000 Pharr - San Juan - Alamo 14,334,248 100.00% 08/31/03 14,334,248 Progreso 1,168,242 100.00% 08/31/02 1,168,242 Sharyland 35,421,763 100.00% 12/31/03 35,421,763 Valley View 2,868,838 100.00% 08/31/03 2,868,838 Weslaco 9,422,954 100.00% 12/31/03 9,422,954 Cities Alamo 3,183,465 100.00% 07/31/03 3,183,465 Alton 250,000 100.00% 09/30/04 250,000 Donna 7,030,488 100.00% 09/30/02 7,030,488 Edcouch 438,970 100.00% 09/30/04 438,970 Edinburg 22,989,173 100.00% 09/30/03 22,989,173 Elsa 949,776 100.00% 09/30/04 949,776 Hidalgo 7,895,000 100.00% 09/30/04 7,895,000 La Joya 250,000 100.00% 09/30/04 250,000 La Villa - 100.00% 09/30/04 - McAllen 1,017,898 100.00% 09/30/03 1,017,898 Mercedes 4,283,026 100.00% 09/30/02 4,283,026 Mission 16,920,854 100.00% 12/31/03 16,920,854 Pharr 19,197,182 100.00% 09/30/02 19,197,182 San Juan 1,568,301 100.00% 09/30/03 1,568,301 Weslaco 25,037,357 100.00% 09/30/03 25,037,357 Drainage District Hidalgo County Drainage District No. 1 - 100.00% 09/30/04 - Road Districts Road District No. 5 - 100.00% 09/30/04 - County Line School District Lyford 5,270,000 3.75% 09/30/04 197,625 South Texas College District 108,409,996 84.04% 09/30/04 91,107,761
Total Debt $ 956,909,768
Total Direct and Overlapping Debt $ 934,535,158
NOTE: The information contained in this statement is provided by the Municipal Advisory Council of Texas (11/02/04) and is subject to the same disclaimer as given by the Council.
266 COUNTY OF HIDALGO, TEXAS EXHIBIT D-34 STATISTICAL SECTION
DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS
Fiscal School Per Capita Unemployment Year Population (1) Enrollment (2) Income (3) Rate (3)
1995 467,315 127,503 $ 11,073 19.8% 1996 486,147 129,613 11,541 19.0% 1997 505,739 131,493 12,056 18.2% 1998 526,120 133,288 12,529 17.8% 1999 547,323 136,393 12,870 14.5% 2000 569,463 139,965 13,578 13.6% 2001 592,412 144,804 14,278 13.1% 2002 616,286 151,589 14,769 13.2% 2003 641,122 159,746 (4) 13.6% 2004 666,959 173,571 (4) 9.1%
(1) The population figures for years 1995-1999 are based on an estimated annual increase of 4.03% over the 1990 Federal Census of 383,545. The population figures for years 2001-2004 are based on an estimated annual increase of 4.03% over the 2000 Federal Census of 569,463. All population figures are for the entire County of Hidalgo. (2) Source: Texas Education Agency (TEA) (3) Source: Texas Workforce Commission (4) Unable to obtain figures for Fiscal Years 2003 and 2004.
267 COUNTY OF HIDALGO, TEXAS EXHIBIT D-35 STATISTICAL SECTION
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS
Fiscal Property Value (1) Building Permits (2) Bank Year Commercial Residential Total Commercial Residential Total Deposits*(3)
1995$ 6,112,543,759 $ 2,351,631,630 $ 8,464,175,389 $ 111,526,682 $ 140,964,535 $ 252,491,217 $ 3,056,479 1996 6,570,950,925 2,503,753,243 9,074,704,168 210,649,859 166,454,575 377,104,434 3,341,673 1997 6,900,202,345 2,598,280,579 9,498,482,924 180,502,314 135,947,075 316,449,389 3,493,435 1998 7,319,857,341 2,910,155,619 10,230,012,960 178,403,869 196,211,337 374,615,206 3,978,910 1999 7,703,848,978 3,268,855,862 10,972,704,840 253,332,032 188,064,996 441,397,028 4,246,299 2000 8,201,627,787 3,615,015,294 11,816,643,081 186,677,046 252,380,315 439,057,361 4,495,866 2001 9,370,658,824 3,919,744,253 13,290,403,077 259,418,539 313,367,565 572,786,104 4,987,586 2002 9,828,893,582 4,169,031,798 13,997,925,380 327,316,618 338,397,610 665,714,228 5,463,923 2003 10,377,159,882 4,723,062,569 15,100,222,451 340,790,989 386,057,830 726,848,819 5,890,234 2004$ 11,206,368,518 $ 5,245,667,728 $ 16,452,036,246 $ 358,729,432 $ 521,374,414 $ 880,103,846 $ 6,349,957
* Amounts expressed in thousands (1) Market value from the Assessed and Market Value of Property tables in this section (2) Source: Rio Grande Valley Chamber of Commerce (3) Source: Federal Deposit Insurance Corporation
268
COUNTY OF HIDALGO, TEXAS STATISTICAL SECTION
MISCELLANEOUS STATISTICS DECEMBER 31, 2004
Area Information
Name County of Hidalgo Number of Cities 22 Date of Incorporation 1852 Number of Water Supply Corporations 6 Form of Government County Judge & Four Commissioners Number of Banks 17 County Seat Edinburg, Texas Total 2004 Deposits$ 77,471,351,562 Number of employees 2,378 Number of Industrial Sites 7 Area in acres 986,240
Miles of County maintained roads: Precinct 1 543 Precinct 2 267 Precinct 3 476 Precinct 4 290
Education
Four year universities University of Texas-Pan American Edinburg Community colleges South Texas College McAllen Number of school districts 16
Hospitals
Cornerstone Regional Hospital McAllen Doctor's Hospital Edinburg Driscoll Children's Hospital McAllen Edinburg Regional Medical Center Edinburg Knapp Medical Center Weslaco Lifecare Hospital South Texas Edinburg McAllen Heart Hospital McAllen McAllen Medical Center McAllen Mission Hospital Mission Rio Grande Regional Hospital McAllen South Texas Cancer Center McAllen The Heart Hospital of South Texas McAllen
Recreation
Museums Donna Hooks Fletcher Historical Museum Donna Museum of South Texas History Edinburg International Museum of Art and Science McAllen Rio Grande Military Museum Mission Weslaco Bicultural Museum Weslaco Number of libraries 16 County parks 10 State parks Bensten RGV State Park Mission US Wildlife Santa Ana National Wildlife Refuge Alamo Number of golf courses 21
Infrastructure
Airports Edinburg International Airport McAllen-Miller International Airport Mid-Valley Airport - Weslaco International Bridges McAllen-Hidalgo - Reynosa International Bridge Pharr - Reynosa International Bridge Progreso - Nuevo Progreso International Bridge Los Ebanos - Reynosa Ferry (hand-drawn, two car capacity) Foreign Trade Zones McAllen Foreign Trade Zones Edinburg (at the Edinburg International Airport)
269 EXHIBIT D-36
Economic
Median household income$ 24,926 Principal industries: Health Care Services People below poverty level 238,333 Professional Services % of people below poverty level 38% Retail Sales Labor force 254,944 Food Services Employment 231,739 Wholesale Sales Unemployment 23,205 Apparel Manufacturing Unemployment rate 9.1% Farming
Gross Sales Industry 2002 2003 2004 * Agriculture 50,519,420 54,347,300 39,391,927 Construction 524,488,855 542,848,634 392,036,854 Finance, Real Estate, Insurance 15,711,204 18,029,773 14,802,026 Manufacturing 966,410,965 875,070,354 496,108,682 Mining 113,380,330 106,981,892 74,484,026 Non-Classifiable 8,992 - - Other - 19,217 6,246 Retail 5,748,413,597 6,137,134,959 4,475,159,370 Services 633,075,404 664,372,719 503,707,681 Transportation, Communications, and Utilities 244,629,570 295,777,871 234,562,388 Wholesale 1,209,094,704 1,437,842,235 834,993,383 9,505,733,041 10,132,424,954 7,065,252,583
* Through 3rd Quarter 2004
Agriculture Acres Products Raised (2004) Crops Harvested Yield Grain Sorghum 134,800 4,313,600 Bushels Cotton 63,883 48,095,500 Bales Corn 14,600 876,000 Bushels Sugar Cane (1) (1) Tons Sunflowers 1,000 400,000 Pounds
Resources: Websites: Valley Chamber of Commerce, Federal Deposit Insurance Corporation, Yellow Pages, US Census Bureau Texas Comptroller of Public Accounts
(1) unable to obtain figures.
270 COUNTY OF HIDALGO, TEXAS EXHIBIT D-37 STATISTICAL SECTION
COUNTY OF HIDALGO RATIO OF GENERAL FUND UNRESERVED BALANCES TO REVENUES FOR THE LAST TEN FISCAL YEARS
Fiscal General Fund General Fund Year Revenes Unreserved Balance Savings Ratio
1995$ 41,182,974 $ 2,133,739 5.18% 1996 44,399,059 2,262,305 5.10% 1997 48,024,406 3,495,738 7.28% 1998 55,591,869 4,619,991 8.31% 1999 61,466,286 6,899,027 11.22% 2000 59,032,352 5,641,176 9.56% 2001 66,341,603 4,534,763 6.84% 2002 76,218,294 702,648 0.92% 2003 91,758,775 9,834,101 10.72% 2004$ 99,453,000 $ 13,453,401 13.53%
Savings Ratio Analysis
14.00%
12.00%
10.00%
8.00%
6.00% Savings Ratio 4.00%
2.00%
0.00% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Fiscal Year
271 COUNTY OF HIDALGO, TEXAS EXHIBIT D-38 STATISTICAL SECTION
HIDALGO COUNTY RIO GRANDE VALLEY, TEXAS BUILDING PERMITS FOR THE COUNTY BUILDING PERMITS FOR THE VALLEY FOR THE LAST NINE YEARS FOR THE LAST NINE YEARS
$1,400 $1,371 $1,300 $1,000 $1,200 $1,159 $900 $880 $1,100 $1,000 $1,055 $800 $974 $733 $900 $700 $665 $800 $798 $833 $600 $572 $700 $500 $600 $620 $572 $563 $443 $439 $500 $400 $377 $376 $400 $424 AMOUNT IN MILLIONS $300 $318 $253 $300
AMOUNT IN MILLIONS IN AMOUNT $200 $200
$100 $100 1995 1996 $0 1997 1998 1999 2000 2001 2002 1995 1996 1997 1998 2003 1999 2000 2001 2002 2003 2004 2004 YEAR YEAR
RIO GRANDE VALLEY, TEXAS BUILDINGS PERMITS - BY COUNTY FOR THE LAST NINE YEARS
$900 $880 $850 $800
$750 $733
$700 $665 $650 $600 $572 $550 $443 $500 $439 $377 $450 $376 $459 $318 $383 $400 $386 $408 $253 $379 $350 $326
$238 $300 $239
AMOUNT IN MILLIONS AMOUNT IN $192 $250 $169 $200 $150 $100 $1 $50 $1 $4 $0 $1 $20 $1 $0 $2 HIDALGO COUNTY $4 $1 $9 $2 $9 $1 CAMERON COUNTY 1995 $12 $2 1996 $6 1997 $8 1998 $16 $26 WILLACY COUNTY 1999 2000 2001 STARR COUNTY 2002 YEAR 2003 2004
272 COUNTY OF HIDALGO, TEXAS EXHIBIT D-39 STATISTICAL SECTION
HIDALGO COUNTY, TEXAS CAPITAL ASSETS AT HISTORICAL COST DECEMBER 31, 2004
CAPITAL ASSETS GENERAL CAPITAL ACCOUNTS
161-LAND 161.1-EASMTS 162-INFRAST 163-BLDGS 164-IMPROV 165-M&E 166-CIP
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
- LAND EAS INFR BLDG IMPR M&E CIP 5,431,442 23,190,447 145,023,200 72,375,292 4,831,011 19,545,631 1,594,194
COMBINED TOTAL $ 271,991,217
CAPITAL ASSETS GENERAL ACCOUNTS FUND ACCOUNTS
154,243,571
32,590,410 1,212,378 70,985 82,874,875 998,998 GENERAL FUND SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS PROPRIETARY FUNDS DONATIONS FORFEITURES SOURCE TOTALS AS OF DECEMBER 31, 2004 = $ 271,991,217
273 COUNTY OF HIDALGO, TEXAS EXHIBIT D-40 STATISTICAL SECTION
Hidalgo County Investments Total Investments - County Owned by Fund December 31, 2004 Amount Invested $46,577,507 $50,000,000 $41,968,557 $45,000,000
$40,000,000
$35,000,000
$30,000,000 $25,051,229
$25,000,000 $15,633,627 $20,000,000
$15,000,000
$10,000,000 $3,325,694 $3,655,963
$5,000,000
$0 General Fund Special Revenue Debt Service Capital Projects Trust & Agency Proprietary FUND
Total Investments Held in Trust by Financial Institution
Wells Fargo Bank of Texas$803
Texas State Bank $1,248,100
Security First Federal Credit Union$0
Rio Bank $26,742
Meryll Lynch $55,505
Mercedes National Bank$0
McAllen National Bank $12,818 HIDALGO COUNTY, TEXAS - DETAIL OF INSURANCE COVERAGE AND PREMIUMS PAID AS OF DECEMBER 31, 2004 Mainstay Bank $10,846
Lone Star National $13,080,047
International Bank Of Commerce $1,246,303
Inter National $704,536
Hibernia Bank $1,324,277
Frost Bank$0
First National Bank - Edinburg $5,686,431
Elsa State Bank $13,835
City National $22,724
Chase $88,415
Bank of America $119,095
Alamo Bank $7,817
$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000
274
SINGLE AUDIT SECTION
This section contains information regarding grant activity for the year ended December 31, 2004, which was audited under the guidelines of the Single Audit Act Amendments of 1996, the United States Office of Management and Budget’s Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the State of Texas Single Audit Circular.
COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
FEDERAL AWARDS PRIMARY GOVERNMENT
U.S. Department of Agriculture Passed Through Texas Deparment of Health
7460007176-2004-04 WIC Administration 10.557 $ 5,682,505 $ - 7460007176-2005-01 WIC Administration 10.557 1,798,108 - 7460007176-2004-04 WIC Breastfeeding Peer Counceling Program a 10.557 103,475 - 7460007176-2005-01 WIC Breastfeeding Peer Counceling Program a 10.557 39,349 - 7460007176-2004-04 WIC Operational 10.557 21,031 - Total CFDA Number 10.557 7,644,468 -
Total Passed Through Texas Department of Health 7,644,468 -
Total U.S. Department of Agriculture $ 7,644,468 $ -
U.S. Department of Justice Direct Programs
2003-LB-BX-0497 Office of Justice Programs - Block Grant / Auxiliary Court 16.592 $ 328,391 $ - 2002-LB-BX-0126 Office of Justice Programs - Block Grant / Auxiliary Court 16.592 49,974 - 2001-LB-BX-1125 Office of Justice Programs - Block Grant / Auxiliary Court 16.592 12,661 - Total CFDA Number 16.592 391,026 -
2001-SHWX-0636 Community Oriented Policing Services (COPS) 16.710 498,118 - 2002-CLWX-0004 Community Oriented Policing Services (COPS) 16.710 124,579 - Total CFDA Number 16.710 622,697 -
Total U.S. Department of Justice Direct Programs 1,013,723 -
Passed Through Texas Office of Criminal Justice
JB-00-J20-13378-05 Juvenile Accountability Incentive Block Grant 16.523 47,984 - JB-00-J20-13378-06 Juvenile Accountability Incentive Block Grant 16.523 32,202 - Total CFDA Number 16.523 80,186 -
JA-01-J20-14716-05 CJD Purchase of Juvenile Services 16.540 20,000 - Total CFDA Number 16.540 20,000 -
Total Passed Through Texas Office of Criminal Justice 100,186 -
Passed Through Texas Department of Family and Protective Services
9901-0424 TX Court Improvement Project Amend. #4 16.592 1,619 - 9901-0424 TX Court Improvement Project Amend. #3 16.592 276 - Total CFDA Number 16.592 1,895 -
Total Passed Through Texas Department of Family and Protective Services 1,895 -
281 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
Passed Through Texas State Office of Court Administration
JB-00-J20-14800-05 Juvenile Justice Accountability Project 16.523 140,510 - JB-00-J20-14800-06 Juvenile Justice Accountability Project 16.523 84,278 - SF-03-J20-16304-02 Stop Truacy On Patrol (STOP) - Const Pct 3 16.523 97,745 - SF-05-J20-16304-03 Stop Truacy On Patrol (STOP) - Const Pct 3 16.523 39,662 - Total CFDA Number 16.523 362,195 -
Total Passed Through Texas State Office of Court Administration 362,195 -
Total U.S. Department of Justice $ 1,477,999 $ -
Executive Office of the President for National Drug Control Policy
14PSSP573Z Financial Disruption Task Force - HIDTA 16.579 $ 393,421 $ - I3PSSP573 Financial Disruption Task Force - HIDTA 16.579 243,680 - N/A Financial Disruption Task Force - HIDTA 16.579 508,786 - Total CFDA Number 16.579 1,145,887 -
Total Executive Office of the President for National Drug Control Policy $ 1,145,887 $ -
U.S. Department of Health and Human Services Passed Through Texas Department of Health
7460007176-2005-01 TDH TB Elimination 93.116 $ 297,336 $ - Total CFDA Number 93.116 297,336 -
7460007176-2005-02 TDH Immunization 93.268 139,217 - Total CFDA Number 93.268 139,217 -
7460007176-2004-04 TDH Bureau of Regional/LOCAL Health Operations 93.991 90,328 - 7460007176-2005-04 TDH Bureau of Regional/LOCAL Health Operations 93.991 45,616 Total CFDA Number 93.991 135,944 -
7460007176-2004-05 TDH PHPSB Bioterrorism 93.283 741,290 - 7460007176-2005-05 TDH PHPSB Bioterrorism 93.283 197,468 - Total CFDA Number 93.283 938,758 -
7460007176-2004-01 TDH SDI 93.994 432,671 - 7460007176-2005-01 TDH SDI 93.994 207,601 - Total CFDA Number 93.994 640,272 -
Total Passed Through Texas Department of Health 2,151,527 -
Total U.S. Department of Health and Human Services $ 2,151,527 $ -
U.S. Department of Homeland Security Direct Programs
EMT2004-CA-0119 Federal Emergency Management Agency 97.045 $ 240,603 $ - Total CFDA Number 97.045 240,603 -
Total U.S. Department of Homeland Security Direct Programs 240,603 -
Passed Through Texas Engineering Extension Service
2002-TE_CX-0074 2002 Homeland Security Grant 97.004 56,837 - 2003-TE-TX0174 2003(PRE 2004) Homeland Security Grant 97.004 26,595 - Total CFDA Number 97.004 83,432 -
Total Passed Through Texas Engineering Extension Service 83,432 -
Total U.S. Department of Homeland Security $ 324,035 $ -
TOTAL PRIMARY GOVERNMENT $ 12,743,916 $ - 282 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
URBAN COUNTY
U.S. Department of Housing and Urban Development (HUD) Direct Programs
B-95-UC48-0501 Community Development Block Grant - 21th Year 14.218 $ 2,766 $ 2,766 B-96-UC48-0501 Community Development Block Grant - 22th Year 14.218 651 651 B-97-UC48-0501 Community Development Block Grant - 23rd Year 14.218 15,396 15,396 B-98-UC48-0501 Community Development Block Grant - 24th Year 14.218 9,601 9,601 B-99-UC48-0501 Community Development Block Grant - 25th Year 14.218 4,521 4,521 B-00-UC48-0501 Community Development Block Grant - 26th Year 14.218 349,707 349,707 B-01-UC48-0501 Community Development Block Grant - 27th Year 14.218 792,760 792,760 B-02-UC48-0501 Community Development Block Grant - 28th Year 14.218 2,327,677 2,311,418 B-03-UC48-0501 Community Development Block Grant - 29th Year 14.218 5,050,636 4,092,264 B-04-UC48-0501 Community Development Block Grant - 30th Year 14.218 726,037 559,302 Total CFDA Number 14.218 9,279,752 8,138,386
M-94-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 1 1 M-95-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 736 736 M-96-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 22 22 M-97-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 4,001 4,001 M-98-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 31,644 31,644 M-99-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 30,019 30,019 M-00-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 92,265 92,265 M-01-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 274,828 274,828 M-02-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 765,633 754,082 M-03-UC-48-0501 Home Investment Partnership Program (HOME) 14.239 1,403,484 1,121,948 Total CFDA Number 14.239 2,602,633 2,309,546
S-02-UC-48-0501 Emergency Shelter 14.231 145,799 145,799 S-03-UC-48-0501 Emergency Shelter 14.231 84,094 71,017 S-04-UC-48-0501 Emergency Shelter 14.231 17,692 15,488 Total CFDA Number 14.231 247,585 232,304
Total Direct Programs 12,129,970 10,680,236
Passed Through Texas Department of Housing and Community Affairs
719023 Colonia VIII 14.228 18,480 18,480 722065 Colonia XVII 14.228 469,700 469,700 723065 Colonia XVIII 14.228 23,000 23,000 723013 Colonia XVIIII 14.228 140,353 123,276 723225 Colonia XX 14.228 3,526 - 723245 Colonia XXl 14.228 3,065 - Total CFDA Number 14.228 658,124 634,456
Total Passed Through Texas Department of Housing and Community Affairs 658,124 634,456
Total U.S. Department of Housing and Urban Development (HUD) $ 12,788,094 $ 11,314,692
TOTAL URBAN COUNTY $ 12,788,094 $ 11,314,692
283 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
HEAD START
U.S. Department of Health and Human Services Direct Programs
06CH0183-22 Head Start Program 93.600 $ 192,424 $ - 06CH0183-23 Head Start Program 93.600 35,044,344 - Total CFDA Number 93.600 35,236,768 -
Total Direct Programs 35,236,768 -
Total U.S. Department of Health and Human Services $ 35,236,768 $ -
U.S. Department of Agriculture Passed Through Texas Department of Human Services
TX-1080006 Child Care Food Program 10.558 $ 1,450,380 $ - TX-1080006 Child Care Food Program 10.558 619,962 - Total CFDA Number 10.558 2,070,342 -
Total Passed Through Texas Department of Human Services 2,070,342 -
Total U.S. Department of Agriculture $ 2,070,342 $ -
TOTAL HEAD START $ 37,307,110 $ -
COMMUNITY SERVICE AGENCY
U.S. Department of Health and Human Services Passed Through Texas Department of Housing and Community Affairs
587042-584 Comprehensive Energy Assistance Program 93.568 $ 782,021 $ - Total CFDA Number 93.568 782,021 -
613042-613 Community Services Block Grant 93.569 252,307 - 613042-614 Community Services Block Grant 93.569 1,227,264 - Total CFDA Number 93.569 1,479,571 -
Total Passed Through Texas Department of Housing and Community Affairs 2,261,592 -
Total U.S. Department of Health and Human Services $ 2,261,592 $ -
Corporation For National and Community Services Direct Programs
02SRWTX035 Retired Senior Volunteer Program 94.002 $ 26,735 $ - 02SRWTX035 Retired Senior Volunteer Program 94.002 67,634 - Total CFDA Number 94.002 94,369 -
Total Direct Programs 94,369 -
284 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
Passed Through Texas Department on Aging
03SRWTX025 Retired Senior Volunteer Program 94.002 24,078 - 04SRWTX025 Retired Senior Volunteer Program 94.002 1,859 - Total CFDA Number 94.002 25,937 -
Total Passed Through Texas Department on Aging 25,937 -
Total Corporation For National and Community Services $ 120,306 $ -
Federal Emergency Management Agency Direct Programs
Phase XXII Emergency Management Assistance 83.523 $ 70,026 $ - Total CFDA Number 83.523 70,026 -
Total Direct Programs 70,026 -
Total Federal Emergency Management Agency $ 70,026 $ -
TOTAL COMMUNITY SERVICES AGENCY $ 2,451,924 $ -
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 65,291,043 $ 11,314,692
STATE AWARDS PRIMARY GOVERNMENT
Texas Department of Health
N/A Health Department - Administration N/A $ 220,180 $ - 7460007176-2004-03 TDH TB Control N/A 45,011 - 7460007176-2005-03 TDH TB Control N/A 22,471 - N/A Program Income N/A 13,684 - N/A Program Income N/A 11,360 -
Total Texas Department of Health $ 312,706 $ -
Texas Adult Probation Commission
108-900 Basic Supervision N/A $ 4,321,409 $ - 108-900 Basic Supervision N/A 2,304,163 - 108-002 Community Corrections (Boot Camp) N/A 1,028,349 - 108-002 Community Corrections (Boot Camp) N/A 475,947 - 108-014 Drug Court N/A 608 - 108-014 Drug Court N/A 31,609 - 108-013 Mentally Impaired Caseload N/A 44,710 - 108-013 Mentally Impaired Caseload N/A 86,910 - 108-005 Restitution Center N/A 680,903 - 108-005 Restitution Center N/A 336,047 - 108-007 Sex Offender Caseload N/A 140,164 - 108-007 Sex Offender Caseload N/A 73,170 - 108-006 Treatment Alternatives to Incarceration Program N/A 130,302 - 108-006 Treatment Alternatives to Incarceration Program N/A 37,433 -
Total Texas Adult Probation Commission $ 9,691,724 $ -
285 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
Texas Juvenile Probation Commission
TJPC-Y-2005-108 Community Corrections N/A $ 486,372 $ - TJPC-Y-2004-108 Community Corrections N/A 285,322 - N/A Computerization (Interest Earnings on Fund 1294) N/A 49,270 - TJPC-V-2004-108 Facility Operating Costs N/A 169,632 - N/A JJAEP Discretionary (Derived from School Districts) N/A 25,931 - N/A JJAEP Discretionary (Derived from School Districts) N/A 6,490 - TJPC-P-2004-108 Juvenile Justice Alternative Education N/A 301,321 - TJPC-P-2005-108 Juvenile Justice Alternative Education N/A 248,626 - N/A Level 5 Progressive Sanctions N/A 1,240 - TJPC-O-2004-108 Progressive Sanctions ISJPO N/A 75,268 - TJPC-O-2005-108 Progressive Sanctions ISJPO N/A 31,533 - TJPC-F-2004-108 Progressive Sanctions JPO N/A 167,274 - TJPC-F-2005-108 Progressive Sanctions JPO N/A 88,577 - TJPC-G-2004-108 Progressive Sanctions Level 1, 2, 3: N/A 100,096 - TJPC-G-2005-108 Progressive Sanctions Level 1, 2, 3: N/A 90,110 - TJPC-Z-2004-108 Salary Adjustment Funding N/A 108,636 - TJPC-Z-2005-108 Salary Adjustment Funding N/A 57,165 - TJPC-M-2004-108 Special Needs (TCOMI) Funding N/A 66,560 - TJPC-M-2005-108 Special Needs (TCOMI) Funding N/A 30,810 - TJPC-A-2005-108 State Aid N/A 232,066 - TJPC-A-2004-108 State Aid N/A 142,066 - TJPC-E-04-108 Title IV-E Enhanced Administration N/A 518,259 - TJPC-E-05-108 Title IV-E Enhanced Administration N/A 14,245 - TJPC-E-05-108 Title IV-E Federal Foster Care N/A 184,840 - TJPC-E-04-108 Title IV-E Federal Foster Care N/A 139,200 -
Total Texas Juvenile Probation Commission $ 3,620,909 $ -
Texas State Comptroller's Office
FY2004 District Attorney State Supplement N/A $ 21,588 $ - FY2005 District Attorney State Supplement N/A 4,197 -
Total Texas State Comptroller's Office $ 25,785 $ -
Texas Education Agency
TEA-JJAEP Juvenile Justice Acter. Ed. Prgm 1/98-Present N/A $ 32,782 $ -
Total Texas Education Agency $ 32,782 $ -
Texas Department of Transportation
3BCF5001 Border Colonia Access Program N/A $ 5,551,916 $ - 583XXF5023 Impaired Driving Mobilization (STEP) N/A 10,405 -
Total Texas Department of Transportation $ 5,562,321 $ -
286 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
Texas Natural Resource Conservation Commission and Lower Rio Grande Valley Development Council
04-21-G11 Solid Waste Project - Const Pct 3 N/A $ 39,186 $ -
Total Texas Natural Resource Conservation Commission and Lower Rio Grande Valley Development Council $ 39,186 $ -
Texas Task Force on Indigent Defense
212-04-108 Discretionary Indigent Grant N/A $ 263,723 $ - 212-03-D10 Discretionary Indigent Grant N/A 25,672 -
Total Texas Task Force on Indigent Defense $ 289,395 $ -
Texas Automobile Theft Prevention Authority
SA-TO3-10053-04 Tax Assessor & Collector Automobile Title & Registration Div. N/A $ 45,540 $ -
Total Texas Automobile Theft Prevention Authority $ 45,540 $ -
City of Brownsville
SA-T01-10041-04 South Texas Auto Theft Enforcement Task Force N/A $ 111,550 $ - SA-T01-10041-05 South Texas Auto Theft Enforcement Task Force N/A 53,108 -
Total City of Brownsville $ 164,658 $ -
Independent School Districts/ COPS in School Program
N/A COPS Mercedes ISD N/A $ 39,251 $ - N/A COPS Sharyland ISD N/A 12,517 - N/A COPS Weslaco ISD N/A 107,280 -
Total Independent School Districts/ Cops in School Program $ 159,048 $ -
Independent School Districts/ Juvenile Justice Alternative Edu.
N/A Donna ISD N/A $ 14,514 $ - N/A Donna ISD N/A 12,331 - N/A Edcouch-Elsa ISD N/A 3,658 - N/A Edcouch-Elsa ISD N/A 1,711 - N/A Edinburg Consolidated N/A 18,762 - N/A Edinburg Consolidated N/A 7,021 - N/A La Joya ISD N/A 26,196 - N/A La Joya ISD N/A 472 - N/A McAllen ISD N/A 16,284 - N/A McAllen ISD N/A 9,027 - N/A Mission ISD N/A 14,573 - N/A Mission ISD N/A 8,378 - N/A PSJA ISD N/A 33,807 - N/A PSJA ISD N/A 8,142 - N/A Sharyland ISD N/A 10,856 - N/A Sharyland ISD N/A 4,543 -
Total Independent School Districts/ Juvenile Justice Alternative Edu. $ 190,275 $ -
287 COUNTY OF HIDALGO, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
FEDERAL GRANTOR/ FEDERAL PASS THROUGH GRANT PASS-THROUGH GRANTOR/STATE CFDA FEDERAL/STATE AMOUNT TO NUMBER GRANTOR/PROGRAM TITLE NUMBER EXPENDITURES SUBRECIPIENTS
City of McAllen
DB-03-A1013888-05 Hidalgo County Combined Governmental Drug (DA) N/A $ 81,542 $ - DB-03-A1013888-06 Hidalgo County Combined Governmental Drug (DA) N/A 5,544 - DB-03-A1013888-06 Hidalgo County Combined Governmental Drug (SHERIFF) N/A 127,704 - DB-03-A1013888-05 Hidalgo County Combined Governmental Drug (SHERIFF) N/A 94,924 -
Total City of McAllen $ 309,714 $ -
McAllen Independent School District
FY2004 STAR Project N/A $ 121,140 $ - FY2005 STAR Project N/A 60,364 -
Total McAllen Independent School District $ 181,504 $ -
Hidalgo County Empowerment Zone
N/A Pct 1 Empowerment Zone Project - RGV-GED N/A $ 24,815 $ - N/A Pct 1 Empowerment Zone Project - URBAN COUNTY-GED N/A 9,863 - 04-WIA-YS-023 Pct 1 Empowerment Zone Project - WORKFORCE SOLUTIONS-GED N/A 35,627 -
Total Hidalgo County Empowerment Zone $ 70,305 $ -
Texas State Attorney General
04G03938 Victim Assistance (Criminal District Attorney) N/A $ 26,081 $ - 04G03938 Victim Assistance (Criminal District Attorney) N/A 13,034 - 04G04115 Victim Assistance (Sheriff's Department) N/A 26,221 - 04G04115 Victim Assistance (Sheriff's Department) N/A 12,919 -
Total Texas State Attorney General $ 78,255 $ -
TOTAL PRIMARY GOVERNMENT $ 20,774,107 $ -
TOTAL EXPENDITURES OF STATE AWARDS $ 20,774,107 $ -
TOTAL EXPENDITURES OF FEDERAL AND STATE AWARDS $ 86,065,150 $ 11,314,692
288 COUNTY OF HIDALGO, TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED DECEMBER 31, 2004
General
The accompanying Schedule of Expenditures of Federal and State Awards presents the federal and state grant activity for the County of Hidalgo, Texas (the County). The reporting entity is defined in Note 1 to the County’s financial statements.
Basis of Presentation
The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting, which is described in Note 1 of the County’s notes to the financial statements. The information in this schedule is presented in accordance with the requirements of OMB-Circular A- 133, Audits of States, Local Governments and Non-Profit Organizations and the State of Texas Single Audit Circular. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Relationship to Federal and State Financial Reports
Amounts reported in the accompanying schedule may not agree with the amounts reported in the related Federal and State financial reports filed with the grantor agencies because of accruals made in the schedule which will be included in future reports filed with agencies.
289 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section I - Summary of Auditors’ Results Description
Financial Statements
Type of auditors’ report issued: Unqualified
Internal control over financial reporting: • Material weakness(es) Identified? No • Reportable condition(s) identified not considered to be material weaknesses? No
Noncompliance material to the financial statements? No
Federal Awards
Internal control of major programs: • Material weakness(es) Identified? No • Reportable condition(s) identified not considered to be material weaknesses? Yes
Type of auditors’ report issued on compliance for major programs: Qualified
Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a)? Yes
Dollar threshold used to distinguish between Type A and Type B programs: $1,958,732
Auditee qualified as low-risk auditee? No
Identification of Major Federal Programs: Women, Infants and Children (WIC) 10.557
Child Care Food Program 10.558
Community Development Block Grant (CDBG) 14.218
HOME Investment Partnership Program 14.239
Head Start Program 93.600
290 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section I - Summary of Auditors’ Results Description
State Awards
Internal control of major programs: • Material weakness(es) Identified? No • Reportable condition(s) identified not considered to be material weaknesses? Yes
Type of auditors’ report issued on compliance for major programs: Qualified
Any audit findings disclosed that are required to be reported in accordance with the State of Texas Single Audit Circular? Yes
Dollar threshold used to distinguish between Type A and Type B programs: $623,223
Auditee qualified as low-risk auditee? No
Identification of Major State Programs: Texas Juvenile Probation Commission Community Corrections Juvenile Justice Alternative Education State Aid Title VI-E Enhanced Administration
Border Colonia Access Program
291 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section III – Findings and Questioned Costs
Federal Awards Description
04 – 1 Criteria: Special care should be exercised over the management of cash in Cash Management – order to reduce the lapse of time between advance draws and expenditures. WIC Program Statement of Condition: At the beginning of each program year, the County receives an advance draw for 2-3 months operations, in addition to the advance the County continues to draw monthly expenditure reimbursements resulting in high cash balance.
Cause of Condition: Department of Health grant agreement requires the County to draw down an initial advance draw for operations for the W.I.C. program.
Effect of Condition: Cash management compliance requirement to reduce the lapse of time from when advanced draws are taken and expended is not being adhered.
Questioned Cost: $0
Recommendation: We recommend management review the need for advance draws. If not needed, the County should not draw such advances.
Auditee’s Response: In 2004, Hidalgo County exercised the option of requesting a cash advance in accordance with WIC Program Policies and Procedures. Policy Number AC:26.0 of the WIC Program Policies and Procedures requires advance funds to be liquidated no later than July and August of the contract period so that after the final billing, the County shall not have advance funds on hand. Interest earned on the cash advance is treated as program income and handled in accordance with WIC Program Policies and Procedures.
04 – 2 Criteria: Eligibility compliance requirements should be followed. Eligibility – HOME Program Statement of Condition: During the HOME Program eligibility testing, the following items were noted: • Four instances were noted where the participant’s file did not contain a signed program application. • One instance was noted where the participant file did not include supporting documentation for federal income tax return filed. • Two instances where participant files did not contain verification of bank statements for proof of income and funds. • One instance was noted where the participant file did not contain certificate of homebuyer counseling course. • Two instances were noted where the participant’s file did not contain project completion date, final inspection documentation or occupancy certificate.
Cause of Condition: The program manager did not complete all required documentation for eligibility.
292 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section III – Findings and Questioned Costs
Federal Awards Description
04 – 2 Effect of Condition: Ineligible participants may receive program Eligibility – assistance. HOME Program (continued) Questioned Cost: $0
Recommendation: We recommend for management to adhere to the eligibility requirements as expressed in the program manual.
Auditee’s Response: Management concurs. In 2004, the UCP HOME Program went through a total employee turnover. The new HOME Manager and staff have been working diligently reviewing prior completed project files and current files making sure files are in compliance. The UCP monitoring department will also be assisting in making sure compliance is strictly being adhered.
293 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section III – Findings and Questioned Costs
State Awards Description
04 – 3 Criteria: Grantees and sub-grantees must not make any award or permit Suspension & Debarment – any award (sub-grant or contract) at any tier to any party which is debarred Border Colonia Access Program or suspended or is otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549, “Debarment and Suspension.”
Statement of Condition: The County of Hidalgo did not obtain suspension and debarment certification from construction contractors performing services during the year. In addition, no verification of suspension and debarment for any contractors was conducted during the year.
Cause of Condition: The County does not have a formal policy requiring such certification or verification for state awarded contracts.
Effect of Condition: Lack of certification may allow contractors who have been suspended or debarred to perform services or supply goods with the use of grant funds. Expenditures for contracts for which certification was not obtained may result in unallowed costs by the granting agency.
Questioned Cost: $0
Recommendation: We recommend the County adopt a policy to ensure that either certification is obtained from contractors or a search for suspension or debarment is performed in the General Services Administration suspension and debarment publication.
Auditee’s Response: The County will add a suspension and debarment certification clause to all construction contracts and require a certification statement prior to the execution of any contract.
04 – 4 Criteria: Compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) as Davis-Bacon Act – supplemented by Department of Labor regulations (29 CFR Part 5) is Border Colonia Access Program required for construction contracts.
Statement of Condition: The County did not monitor any of their contractors for compliance with the Davis-Bacon Act.
Cause of Condition: There are no procedures in place to verify compliance with the Act.
Effect of Condition: Lack of monitoring may allow construction contractors to pay wages below the required standards as set by the Department of Labor. Expenditures for contracts for which Davis-Bacon Act requirements are not met may be considered un-allowed costs by the grantor and would require alternate funding.
Questioned Cost: $0
294 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section III – Findings and Questioned Costs
State Awards Description
04 – 4 Recommendation: We recommend the County adopt a policy to ensure Davis-Bacon Act – that periodic monitoring for Davis-Bacon Act compliance is met by Border Colonia Access Program construction contractors that provide service to the County. (continued) Auditee’s Response: Current contracts with contractors require compliance with the Davis-Bacon Act. The County will adopt a monitoring policy for compliance with the Act.
04 – 5 Criteria: Provisions of the grant require the Hidalgo County Juvenile Equipment Management – Probation maintain equipment records, take a physical inventory at least Texas Juvenile Probation Commission once every two years and reconcile to equipment records, implement an appropriate control system to safeguard equipment and maintain equipment adequately.
Statement of Condition: The Hidalgo County Juvenile Probation has not performed a 100% physical inventory within the past two years.
Cause of Condition: Procedures in place to inventory all fixed assets at least once every 2 years were not performed.
Effect of Condition: Lack of physical inventory on equipment gives rise to the risk of misappropriation of assets.
Questioned Cost: $0
Recommendation: Hidalgo County Juvenile Probation should perform inventory of equipment at least once every two years.
Auditee’s Response: The County Auditor’s office will provide the Juvenile Probation Department with guidelines to properly maintain equipment records, perform complete physical inventory counts at least every two years and reconcile inventory counts to the equipment records. A physical inventory has been scheduled for 2005.
295 COUNTY OF HIDALGO, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2004
Section IV – Contact Persons Regarding Findings and Questioned Costs Description
Primary Government Raymundo Eufracio, County Auditor Hidalgo County Auditor’s Office 100 East Cano, 3rd Floor, Adm. Bldg. Edinburg, Texas, 78539-3587 (956) 383-2511 (956) 383-2577(fax)
Head Start Program Teresa Flores, Program Director Hidalgo County Head Start Program P.O. Box 0117 Edinburg, Texas, 78540-0117 (956) 383-0706
Urban County Program Diana R. Serna, Program Director Hidalgo County Urban County Program 1916 Tesoro Blvd. Pharr, TX 78577 (956) 787-8127
296
COUNTY OF HIDALGO, TEXAS SCHEDULE OF STATUS OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2004
REFERENCE NUMBER
Program Description
00 – 2 Condition: The County Clerk maintains deposits with local banks as County Clerk Investments Held in Trust – directed by court order, primarily in the form of certificates of deposit. The County of Hidalgo (Primary Government) following exceptions were noted during our review of County Clerk Investments held in trust:
• We noted several instances where subsidiary ledger balances had not been updated to include earned interest. • We noted seven accounts totaling $307,442, which were confirmed by banks at December 31, 2003. These accounts should have been, but were not listed on the subsidiary ledger.
Recommendation: We recommend that the subsidiary ledger be reconciled monthly. Additionally, a process should be developed to ensure that funds entrusted to the County Clerk’s office are included in the subsidiary ledger and once released to the beneficiary, removed from the ledger.
Status: As of December 31, 2004, funds entrusted to the County Clerk’s office are included in the subsidiary ledger. There were no instances noted where the funds were not removed once they were released to the beneficiary.
00 – 3 Condition: The District Clerk maintains an account to record “court cost District Clerk Cost Deposits – County deposits.” The subsidiary ledger for court cost deposits is incomplete; of Hidalgo (Primary Government) certain amounts are lacking information to determine the depositor. The account balance was $2,005,015 and $2,016,214 at December 31, 2003 and 2002, respectively.
Recommendation: We recommend that amounts be identified to specific depositors and unidentified deposits be escheated in accordance with state statues as unclaimed funds, after approval by legal counsel.
Status: The District Clerk’s Office continues its efforts in identifying all amounts on the subsidiary listing. The account balance was $1,989,020 at December 31, 2004.
Auditee’s Response: The District Clerk’s Office is continuing efforts to identify all cost on deposit. This is a massive undertaking, which requires additional time and personnel. At this time, we have new personnel (bookkeeper, assistant bookkeeper and cashier). We are currently training new employees. We have identified all cost on deposits as of January 1, 2003 through the date of this letter. We are still working on previous years.
297 COUNTY OF HIDALGO, TEXAS SCHEDULE OF STATUS OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2004
REFERENCE NUMBER
Program Description
01 – 1 Condition: The County does not have a formal disaster recovery plan to Data Processing - County of Hidalgo prevent the complete loss of financial information. A written disaster (Primary Government and all recovery plan should document emergency procedures for the procurement, Agencies) recovery and implementation of key financial equipment and financial information.
Recommendation: A comprehensive contingency plan should be developed, documented and tested to ensure the continuity of data processing services in the event of a disaster.
Status: No corrective action has been taken for Primary Government and Drainage District No.1. As of December 31, 2004, Urban County Program, Head Start Program, and Community Service Agency implemented a formal management information system (disaster recovery plan) contingency plan.
Auditee’s Response: All Information Technology (IT) interdepartmental managers and the County Chief Information Officer adopted a formal county IT policy on April 20, 2004. The new policy requires proper procedures and documentation in case of a disaster. Formal monthly meetings will be held to address policy compliance, current IT projects, and the implementation of a countywide disaster recovery plan.
01 - 6 Condition: Our review of 2003 program expenditures revealed 8 instances Procurement – Head Start Program where the purchase requisition and purchase order were dated after the invoice date, indicating that proper procurement procedures were not followed.
Recommendation: Head Start should adhere to procurement policies established by the Primary Government.
Status: Our audit of 2004 program expenditures revealed no instances where the purchase requisition and purchase order were dated after the invoice date.
298 COUNTY OF HIDALGO, TEXAS SCHEDULE OF STATUS OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2004
REFERENCE NUMBER
Program Description
02 – 2 Criteria: The County Clerk does not maintain a listing that designates the Bond Funds Held Pending Judgment – current status of court cases for which bond monies have been received and County Clerk held pending final outcome.
Statement of Condition: Bond Funds Held Pending Judgment are held long after court cases have been tried and are not disposed of timely.
Cause of Condition: The County does not have a policy to monitor the status of court cases for which bond funds have been received.
Effect of Condition: Amounts not accounted for nor resolved timely are high risk for misappropriation.
Questioned Cost: $0.
Recommendation: We recommend that the County Clerk maintain a current status on all cases for which bond money has been collected and held pending final outcome of the case. The County Clerk should research the status of all cases for which bond money is held. Forfeited bonds should be transferred to the County Treasurer’s Office. Bond funds that should have been released to individuals should be held pending notification of that individual. If no response is received from the individual, the County should send bond funds to the State Comptrollers Office in accordance with State Escheat Laws.
Status: No corrective action has been taken.
Auditee’s Response: Due to the magnitude of the cash bonds being held from previous administrations, the County Clerk’s Office with the assistance of the County Auditor’s Office has been linking the County Clerk’s Office computer system with the Sheriff’s Office law enforcement computer module and the District Attorney’s Office prosecutor computer system to try to eliminate this extensive bond listing. This effort has managed to eliminate a significant percentage of these outstanding bonds, however, the work is not completed.
As far as the forfeited bonds are concerned, bearing in mind that the County Clerk’s Office can not do anything without a court order, this office has transferred these monies from the forfeited bonds on a regular, timely basis, once the order is received from the District Attorney’s Office.
Regarding the escheating of funds, during the early part of 2005, the County Clerk’s Office with the assistance of the County Auditor’s Office did attempt to come up with a listing of bonds to escheat to the comptroller’s office, but it was decided not to do it, because the District Attorney’s Office was in the process of forfeiting some of the bonds we were going to escheat. It is our intent that this year, we will follow up with this list and escheat regardless of the forfeit procedure pending with the District Attorney’s Office.
299 COUNTY OF HIDALGO, TEXAS SCHEDULE OF STATUS OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2004
REFERENCE NUMBER
Program Description
02 – 3 Condition: During the course of our 2003 audit, we encountered difficulty General Ledger Maintenance and when reconciling certain account balances, including fund balance, amount Preparation of Financial Statements – due from governments and fixed assets. During 2003, management of the Head Start Program Program did not receive from the Finance Department and therefore did not review a complete set of Program financial statements.
The maintenance of a general ledger is an integral part of any internal control structure. The general ledger is used to ensure a double entry method of accounting and to facilitate the preparation of financial statements. The accounting\ finance department of the Program should be charged with the responsibility of submitting complete and accurate monthly financial statements to management. Management is responsible for reviewing and understanding the statements submitted.
Recommendation: We recommend that control procedures be implemented to ensure that account balances are reconciled timely. Also, a complete set of financial statements, by fund, including, a balance sheet and statement of revenues, expenditures and changes in fund balance, should be submitted to management at least one level above the Finance Director. We recommend that the Finance Director and a designated member of management sign the financial statements indicating that the statements are complete and have been reviewed.
Status: During the course of our 2004 audit, twenty-four audit adjustments were proposed by management in order to properly state the Program financial statements at December 31, 2004. Adjustments were made to correct HS fund balance, due to\ from accounts, and payroll fund liability accounts.
Auditee’s Response: Since the time this recommendation was offered the integrity of our financial reporting system has been re-established by the administrative decisions to revamp the areas of personnel and reporting capabilities. The program has replaced the finance director and the finance assistant with qualified personnel. The new personnel have the appropriate credentials and experience in finance, accounting and budgeting to provide more the adequate supervision and monitoring of the reporting mechanism to management.
In late 2003, with the assistance of a CPA consultant, and throughout 2004, with the assistance of Ms. Keller, Finance Director and Mr. Alvaro Chuc, Finance Assistant, we have consistently implemented measures to improve and upgrade our reporting system. Upper management can now review monthly account reconciliations and accurate trial balances.
Presently the financial statements are issued to management in a timely manner which will enable management to review the financial activity of Head Start. The Finance Assistant monitors the general ledger activity on a monthly basis which enables us to detect adjustments that may be needed.
300 COUNTY OF HIDALGO, TEXAS SCHEDULE OF STATUS OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2004
REFERENCE NUMBER
Program Description
02 – 5 Criteria: Provisions of the grant require that Hidalgo County CSCD maintain Program Fixed Asset Inventory – equipment records, take a physical inventory at least once every two years Hidalgo County Community Services and reconcile to equipment records, implement an appropriate control and Corrections Department system to safeguard equipment and maintain equipment adequately.
Statement of Condition: An un-reconciled difference in the amount of $41,509 was noted between the general ledger and fixed asset listing.
Cause of Condition: Hidalgo County Auditor’s Office does not reconcile the general ledger to the fixed asset listing on a recurring basis.
Effect of Condition: Compliance requirements as dictated in the grant agreement are also passed through to subrecipients of grant funds. Lack of reconciliation between general ledger and fixed asset listing gives rise to the risk of misappropriation of assets.
Questioned Cost: $0
Recommendation: Hidalgo County CSCD and Hidalgo County Auditor’s Office should implement a strategy to reconcile general ledger and fixed asset listing periodically.
Status: Using the guidelines set by the County Auditor’s Office, CSCD maintained equipment records, performed a complete physical inventory and reconciled to equipment records.
03 – 1 Condition: Because journal entries are the source of many transactions Journal Entries – which do not result from routine cash receipts and disbursements, special Head Start Program care should be exercised over their preparation and recording. During the course of our audit, we noted numerous instances where journal entries with This finding was a material weakness. little or no description were recorded in the general ledger. Also, in many cases the preparer of the journal entry could not be identified and, consequently, we could not determine whether the entry was approved by the appropriate level of management.
Recommendation: In connection with the system of handling and recording adjusting journal entries we recommend the following:
• A journal voucher should be prepared for each journal entry. • Explanations and supporting documentation should be provided so that the reason for the entries is clear to the accounting staff and adjustments are not duplicated. • All journal entries should be initialed by both the preparer and Finance Director. • A log of all journal vouchers should be kept in numerical sequence to reduce the possibility of misplacing records.
301 COUNTY OF HIDALGO, TEXAS SCHEDULE OF STATUS OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2004
REFERENCE NUMBER
Program Description
03 – 1 Status: During 2004, management implemented a system for creating, Journal Entries – approving and recording adjusting journal entries, including the creation of a Head Start Program- continued new journal voucher form. Explanations are indicated on the journal voucher form and supporting documentation is attached accordingly. The accountant who prepared the journal entry and the finance director must sign the form acknowledging the necessity of posting the entry. The financial accounting software (MIP) automatically assigns a journal voucher number to each journal entry and all documentation is filed in a binder in numerical sequence. This will ensure accountability of all journal entries.
03 – 2 Criteria: Hidalgo County is required to submit accurate financial status Financial Status Reports – reports to the grantor in a timely manner. In our review of 2003 Head Start Head Start Program financial status reports, which are submitted to the grantor, we noted that the reports were submitted in a timely manner; however, the reports were not accurate. Reports were amended subsequent to issuance.
Recommendation: We recommend that someone other than the preparer review the reports prior to filing them.
Status: During 2004, Head Start financial status reports were submitted to the grantor timely. The 3rd quarter Form-272 report was amended and resubmitted December 2, 2004.
03 –3 Condition: Grant provisions require that the WIC Program maintain Fixed Asset Inventory – WIC – County of equipment records, perform a physical inventory at least once every two Hidalgo (Primary Government) years and reconcile to equipment records, implement an appropriate control system to safeguard equipment and maintain equipment adequately. Hidalgo County WIC has not performed a complete physical inventory during the past two years.
Recommendation: We recommend that Hidalgo County WIC and the Hidalgo County Auditor’s Office implement a strategy to observe and inventory all equipment.
Status: Using the guidelines set by the County Auditor’s Office, Hidalgo County WIC maintained equipment records, performed a complete physical inventory and reconciled to equipment records.
302 COUNTY OF HIDALGO, TEXAS EXHIBIT D-42
COUNTY AUDITOR’S OFFICE
PERSONNEL
Raymundo Eufracio, CPA County Auditor
Faustino Hernandez, C.P.A. First Assistant
Accounting, Grants, and CIP Division Linda C. Fong Division Director Marcela Morales Division Supervisor Marta R. Barrera Division Supervisor Kaochi Hsu Division Supervisor Gilbert Saenz, Jr. Division Supervisor Caroline P. Aquino Assistant Auditor Miguel A. Escaname Assistant Auditor Alma D. Fonseca Assistant Auditor Maria Elena Gaitan Assistant Auditor Oscar Garcia Assistant Auditor Eliza Hernandez Assistant Auditor San Juanita Lozano Assistant Auditor Abel S. Martinez Assistant Auditor Roberto Morales Assistant Auditor Nancy Ponce Assistant Auditor Reynaldo Salazar Assistant Auditor Rossana Schettino Assistant Auditor Angelica M. Tapia Assistant Auditor
Internal Audit and Accounts Payable Division Reyes Cortez, CPA Division Director Maria Arcilia Duran, MBA Division Supervisor Julio C. Espinosa Division Supervisor Elizabeth Cano Division Supervisor Juan M. Alvarado Assistant Auditor Ivan Cantu Assistant Auditor Daniel G. Chavez Assistant Auditor Leticia Chavez Assistant Auditor Sergio Cruz Assistant Auditor Guadalupe Y. Garza Assistant Auditor Sandra Garza Assistant Auditor Maria E. Gomez Assistant Auditor Dora B. Gonzalez Assistant Auditor Gabriel Guajardo, Jr. Assistant Auditor Maricela Jackson Assistant Auditor Edna Kirby Assistant Auditor Rolando Lopez Assistant Auditor Sandra Montalvo Assistant Auditor Criselda Reyna Assistant Auditor Belinda M. Salinas Assistant Auditor Abraham Suarez Assistant Auditor Sandra Suarez Assistant Auditor Yvonne Torres Assistant Auditor
Support Staff Yolanda Agado Assistant Auditor
303