COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 CITY OF CORPUS CHRISTI, TEXAS WWW.CCTEXAS.COM CITY OF CORPUS CHRISTI, TEXAS Comprehensive Annual Financial Report For Fiscal Year Ended September 30, 2016 CITY COUNCIL City Manager Margie C. Rose Mayor Pro-Tem Lucy Rubio Assistant City Managers Mark Van Vleck Sylvia Carrillo City Council Members Samuel “Keith” Selman Carolyn Vaughn Paulette M. Guajardo Director of Financial Services Joe McComb Constance P. Sanchez, CPA, CPM Rudy Garza, Jr. Ben Molina Assistant Director of Financial Services Michael T. Hunter Alma I. Casas Greg Smith Controller Judy Sandroussi Chief Accountant Martha A. Messer, CPA Prepared by the staff of the Financial Services Department Barbara Bailey Rocky Barrera Eva Barton Adriana Berlanga Rose Bond Margarita Cruz Kim Galan-Flores Teddi Giggy Jason Gooding, CPA Hilda Mihalco David Riggs Diana Silguero Judy Villalon, CPA City of Corpus Christi ______________________________________________________________________________ Comprehensive Annual Financial Report For the Year Ended September 30, 2016 TABLE OF CONTENTS Exhibit Page Number Number INTRODUCTORY SECTION Letter of Transmittal i GFOA Certificate of Achievement for Excellence in Financial Reporting xiii City Organizational Chart xiv FINANCIAL SECTION Independent Auditor’s Report 1 Management’s Discussion and Analysis 5 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 1-A 20 Statement of Activities 1-B 22 Fund Financial Statements Governmental Funds Balance Sheet 2-A 24 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 2-B 29 Statement of Revenues, Expenditures, and Changes in Fund Balance 2-C 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 2-D 35 General Fund Statement of Revenues, Expenditures, and Changes In Fund Balance - Budget and Actual 3 36 Proprietary Funds Statement of Net Position 4-A 38 Statement of Revenues, Expenses, and Changes in Net Position 4-B 41 Statement of Cash Flows 4-C 42 Fiduciary Funds Statement of Net Position 5-A 44 Statement of Changes in Fiduciary Net Position 5-B 45 Notes to the Financial Statements Note 1 - Summary of Significant Accounting Policies 47 Note 2 - Budget Policy and Budgetary Accounting 55 Note 3 - Sales Tax Revenue 56 Note 4 - Property Taxes 56 Note 5 – Cash, Cash Equivalents and Investments 56 Note 6 - Budgetary Data 61 Note 7 - Receivables 62 Note 8 - Capital Assets 62 City of Corpus Christi ______________________________________________________________________________ TABLE OF CONTENTS Exhibit Page Number Number Note 9 - Employment Retirement Benefits 65 Note 10 - Post-Employment Health Care Benefits 72 Note 11 - Risk Management 75 Note 12 - Operating Leases 78 Note 13 - Long-term Obligations 79 Note 14 - Advance Refundings and Defeasances 88 Note 15 - Interfund Transfers, Receivables and Payables 89 Note 16 - Fund Deficits 90 Note 17 - Conduit Debt Obligations 90 Note 18 - Commitments 90 Note 19 - Service Concession Arrangement for City Golf Courses 91 Note 20 - Segment Information for Enterprise Funds 91 Note 21 - Other Information 92 Required Supplementary Information Other Post-Employment Benefits Plans – Analysis of Funding Progress 94 Schedules of Changes in the City’s Net Pension Liabilities and Related Ratios 95 Schedules of Contributions 98 Combining and Individual Fund Financial Statements and Schedules Governmental Funds General Fund Balance Sheet 6-A 103 Schedule of Revenues and Other Financing Sources (Budget Basis), Compared to Budget 6-B 104 Schedule of Expenditures (Budget Basis), Compared to Budget 6-C 116 Debt Service Fund Balance Sheet 7-A 126 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 7-B 127 Non-major Governmental Funds Combining Balance Sheet 8-A 130 Combining Statement of Revenue, Expenditures, and Changes in Fund Balances 8-B 132 Special Revenue Funds Combining Balance Sheet 9-A 136 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 9-B 144 Visitors Facilities Fund Balance Sheet 10-A 148 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 10-B 149 City of Corpus Christi ______________________________________________________________________________ TABLE OF CONTENTS Exhibit Page Number Number Hotel Occupancy Tax Fund Balance Sheet 11-A 150 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 11-B 151 State Hotel Occupancy Tax for Beaches Fund Balance Sheet 12-A 152 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 12-B 153 Public Education and Governmental Cable TV Fund Balance Sheet 13-A 154 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 13-B 155 Development Services Fund Balance Sheet 14-A 156 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 14-B 158 Redlight Photo Enforcement Fund Balance Sheet 15-A 160 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 15-B 161 Parking Improvement Fund Balance Sheet 16-A 162 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 16-B 163 Streets Maintenance Fund Balance Sheet 17-A 164 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 17-B 165 Residential/Local Street Fund Balance Sheet 18-A 166 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 18-B 167 Federal/State Grants Fund Balance Sheet 19-A 168 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 19-B 169 Municipal Court Fees Fund Balance Sheet 20-A 170 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 20-B 171 Community Enrichment Fund Balance Sheet 21-A 172 Statement of Revenues, Expenditures, and Changes in Fund Balance 21-B 173 City of Corpus Christi ______________________________________________________________________________ TABLE OF CONTENTS Exhibit Page Number Number Infrastructure Fund Balance Sheet 22-A 174 Statement of Revenues, Expenditures, and Changes in Fund Balance 22-B 175 Local Emergency Planning Committee Balance Sheet 23-A 176 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 23-B 177 Health Medicaid Waiver Fund Balance Sheet 24-A 178 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Compared to Budget 24-B 179 Corpus Christi Community Improvement Corporation Balance Sheet 25-A 180 Statement of Revenues, Expenditures, and Changes in Fund Balance 25-B 181 Corpus Christi Housing Finance Corporation Schedule of Net Position 26-A 182 Schedule of Activities 26-B 183 Balance Sheet 26-C 184 Statement of Revenues, Expenditures, and Changes in Fund Balance 26-D 185 Corpus Christi Industrial Development Corporation Balance Sheet 27-A 186 Statement of Revenues, Expenditures, and Changes in Fund Balance 27-B 187 Coastal Bend Health Facilities Development Corporation Balance Sheet 28-A 188 Statement of Revenues, Expenditures, and Changes in Fund Balance 28-B 189 Corpus Christi Crime Control and Prevention District Schedule of Net Position 29-A 190 Schedule of Activities 29-B 191 Balance Sheet 29-C 192 Statement of Revenues, Expenditures, and Changes in Fund Balance 29-D 193 Corpus Christi Business and Job Development Corporation Schedule of Net Position 30-A 194 Schedule of Activities 30-B 195 Balance Sheet 30-C 196 Schedule of Revenues, Expenditures, and Changes in Fund Balance 30-D 198 Seawall Improvement Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 30-E 200 City of Corpus Christi ______________________________________________________________________________ TABLE OF CONTENTS Exhibit Page Number Number Arena Facility Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 30-F 201 Economic Development Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 30-G 202 Seawall Debt Service Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 30-H 203 Arena Debt Service Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 30-I 204 Economic Development Debt Service Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Compared to Budget 30-J 205 North Padre Island Development Corporation Schedule of Net Position 31-A 206 Schedule of Activities 31-B 207 Balance Sheet 31-C 208 Schedule of Revenues, Expenditures, and Changes in Fund Balance 31-D 209 General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 31-E 211 Reinvestment Zone #3 Balance Sheet 32-A 212 Statement of Revenues, Expenditures, and Changes in Fund Balance – Compared to Budget 32-B 213 Capital Projects Funds Street Capital Projects Fund Balance Sheet 33-A 216 Statement of Revenues, Expenditures, and Changes in Fund Balance 33-B 217 Combining Balance Sheet 34-A 218 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 34-B 222 Proprietary Funds Enterprise Funds Utility System Fund Combining Statement of Net Position 35-A 228 Combining Statement of Revenues, Expenses, and Changes in Net Position 35-B 231 Combining Statement of Cash Flows 35-C 232 City of Corpus Christi ______________________________________________________________________________