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Home My WebLink AboutCity of New Braunfels - Public Financial ReportPOPULARANNUAL FY END SEPTEMBER 302021 FINANCIAL REPORT CITY OFNEW BRAUNFELS, TEXAS 2 3 TABLE OF CONTENTS MESSAGE FROM THE CITY MANAGER CITY STATISTICS ECONOMIC OUTLOOK ECONOMIC DEVELOPMENT GOVERNMENT-WIDE REVENUES & EXPENSES DEBT OBLIGATIONS BALANCE SHEET GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES GENERAL FUND REVENUE GENERAL FUND EXPENDITURES STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 4 5 6 7 8 9 10 11 12 13 14 ENTERPRISE FUNDS GOVERNMENTAL FUNDS The City of New Braunfels is pleased to present the City’s third Popular Annual Financial Report (PAFR) for the fiscal year ended September 30, 2021. The purpose of this report is to highlight and summarize key information and metrics from the City’s three guiding financial documents: the Annual Comprehensive Financial Report (ACFR), Five Year Financial Forecast and the Adopted Budget and Plan of Municipal Services. These documents support our efforts to ensure compliance with generally accepted accounting principles (GAAP) and engage our leadership and elected officials in long-term financial and strategic planning, as well as the development of annual fiscal plans that reflect the current priorities of the citizens, City Council, and leadership of the organization. Please note that the PAFR includes information from selected funds and excludes data from component units. The PAFR does not serve as a replacement to the ACFR or any other financial documents. If you wish to access any of the financial documents listed above, please visit the City’s website at www.nbtexas.org. For any questions related to the information presented in this document, please contact the Finance department at 830-221-4380. Robert Camareno | City Manager Mayor: Rusty Brockman District One: Shane Hines District Two: Justin Meadows District Three: Harry Bowers MESSAGE FROM THE CITY MANAGER CITY COUNCIL EXECUTIVE STAFF Assistant City Manager: Jared Werner Assistant City Manager: Jordan Matney Police Chief: Keith Lane Interim Fire Chief: Michael Wehman Public Works Director: Greg Malatek Finance Director: Sandy Paulos Human Resources Director: Rebecca Miears Information Technology Director: Tony Gonzalez Planning & Development Services Director: Christopher Looney Parks & Recreation Director: Stacey Laird Dicke Library Director: Gretchen Pruett Director of Economic & Community Development: Jeff Jewell Director of Communications & Community Engagement: Jenna Vinson Transportation & Capital Improvements Director: Garry Ford 4 ADMINISTRATION District Four: Lawrence Spradley District Five: Jason Hurta District Six: James Blakey City Manager: Robert Camareno City Attorney: Valeria Acevedo Municipal Court Judge: Rose Zamora MESSAGE FROM THE CITY MANAGER EXECUTIVE STAFF Assistant City Manager: Jared Werner Assistant City Manager: Jordan Matney Police Chief: Keith Lane Interim Fire Chief: Michael Wehman Public Works Director: Greg Malatek Finance Director: Sandy Paulos Human Resources Director: Rebecca Miears Information Technology Director: Tony Gonzalez Planning & Development Services Director: Christopher Looney Parks & Recreation Director: Stacey Laird Dicke Library Director: Gretchen Pruett Director of Economic & Community Development: Jeff Jewell Director of Communications & Community Engagement: Jenna Vinson Transportation & Capital Improvements Director: Garry Ford CITY STATISTICS FY 2021 1. A L 95 Creek Side Town Center 2. Central Texas Corridor Hospital LLC 3. CGT, US Limited 4. Rush Enterprises 5. Kahlig Enterprise INC 6. Grey Forest Development, LLC 7. BMEF Creekside LLC 8. BES Creekside Fund XIII LLC ET AL 9. HEB Grocery CO LP 10. Passco Lakeview Villas DST 1. Comal ISD 3,105 2. Wal-Mart Distribution Center 1,379 3. TaskUs 1,380 4. New Braunfels ISD 1,131 5. City of New Braunfels 960 6. Hunter Industries- Colorade Materials 788 7. Comal County 760 8. Sysco 670 9. HD Supply 477 10. Resolute Health 476 5 TOP PROPERTY TAXPAYERS TOP TEN EMPLOYERS Government Retail Other Government Government Manufacturing Governmentt Wholesale Wholesale Healthcare Landa Park Golf Course at Comal Springs 90,403 NEW BRAUNFELS, TX POPULATION OF - GOLF COURSE ROUNDS PLAYED ECONOMIC OUTLOOK 6 POPULATION ECONOMY Apart from some stagnation during the 2008- 2010 recession, New Braunfels has been in a sustained period of growth. In fact, the City has grown by 56% since 2011. Every year, the census releases figures of the fastest growing cities in the country. From 2010-2020, New Braunfels has been the fifth fastest growing city in the nation, and the third fastest growing city in Texas. The increase in population is driven by a number of factors such as quality of life and economic opportunity. New Braunfels continues to be one of the fastest growing areas in the country. With that growth in population comes an increased demand for City services which must be considered in future budgets. FY 2022 is the first year to see the effects of the loss of sales taxes from the largest sales tax contributor in the city, as they made a change to their business model that will redirect all sales currently sourced to the New Braunfels location. The full effect of this will be reflected in FY 2023. As the report indicates, General Fund reserves remain strong. Short- term budgeting and fiscal planning will once again focus on one-time investments that have potential to increase efficiency and productivity, as well as reduce long-term staffing demands. Short-term budgeting includes priorities such as the construction of the Police Department Headquarters, the Westside Library Branch and Fire Station #7. Also, another consideration will be the effects of four-decade high inflation on the budget and supply chain issues. A bond election will be held in FY 2023 to support the new bond program. Advantages for the community’s economic stability and growth include: the close proximity to both San Antonio and Austin, the Interstate Highway 35 corridor, the availability of choice industrial sites throughout the city, and the strong tourism sector of the economy. While typical greenfield residential development has been occurring at a rapid pace for the last 10-15 years, New Braunfels is beginning to see more infill development (residential and commercial). In addition, there are developments and improvements occurring throughout our downtown area. The City expects tourism to remain strong because New Braunfels offers great attractions at reasonable prices. Collectively, the various attractions, natural resources, and the commercial/ industrial development provide confidence in having a positive long- term economic outlook. SOURCE: US CENSUS BUREAU Founder’s Oak in Historic Landa Park ECONOMIC DEVELOPMENT RECENT & ONGOING DEVELOPMENTS CREEKSIDE TAX INCREMENT REINVESTMENT ZONE (TIRZ) In 2007 the City established a TIRZ district to facilitate the development of a 400-acre master planned, mixed use development (Creekside TIRZ). The original value of all property within that district was approximately $5 million. Today, the development integrates over 1 million square feet of retail with a 130- bed hospital, various restaurants, multi-family developments, and an entertainment complex. Between 2019 and 2021, the total taxable values of all improvements in the district increased by 9.1% to nearly exceed $417 million (2021 values). As the developer works towards fully building out the property, the focus has shifted to the continued development of housing to support and drive the increasing demand for lifestyle amenities such as entertainment and dining options. In 2022, the City will break ground on a new fire station and training facility within the boundaries of the Creekside TIRZ (Fire Station #7). These construction costs are fully supported by the Creekside TIRZ, as well. THE VERAMENDI PROJECT The Veramendi Development broke ground in FY 2018. This development is a 2,400-acre property that will ultimately include over 6,000 residential units, a town center, a university, and many other mixed-use amenities. The project’s developer completed the construction of a major piece of required infrastructure, which was a regional detention pond and earthen dam. During FY 2021, approximately 224 homes were permitted by the City and are either under construction or have been completed. The development team has submitted more plans for single family homes on a variety of lot sizes. Additionally, senior living and multifamily developments have been entitled and are expected to open in 2023. The project is also beginning to see commercial development with the opening of a new daycare center in early 2022. The Veramendi Development is part of a Water Control Improvement District. The District issued $6.9 million of bonds secured by property taxes received from property within the District. Although the development is not within the City limits, the City will receive 50% of the sales tax generated due to a strategic partnership agreement. Other direct revenues will be generated from this development such as permitting fees; however, there are likely to be other direct and indirect positiveeconomic impacts throughout the City. TASKUS, INC. TaskUs, Inc. is a business process outsourcing firm currently headquartered in New Braunfels. The company, founded in 2008, relocated to New Braunfels from San Antonio in 2018 and occupies 35,000 square feet in the Heritage Business Center. Originally, the company employed approximately 450 local employees. An incentive approved in 2021 provides the company with additional resources to expand their physical footprint to 105,000 square feet and to hire additional employees. TaskUs Inc. is now the 3rd largest employer in New Braunfels. DOWNTOWN TIRZ In September 2021, the City Council established the Downtown Tax Increment Reinvestment Zone (TIRZ #3). Similar to Creekside (TIRZ #1) and River Mill (TIRZ #2), the City’s participation is limited to 85% of the real and business personal property tax revenue. The Downtown TIRZ will support capital projects within the zone such as improvements to local streets, including paving, utility infrastructure upgrades/relocation (water, wastewater, storm water), burial of overhead utilities as well as lighting improvements, street trees/planters, and sidewalk improvements for enhancing pedestrian linkages between and throughout the historic downtown core. The 2021 Downtown TIRZ boundary covered approximately 183 acres and the baseline taxable value was approximately $168 million. 7 GOVERNMENT-WIDE REVENUES & EXPENSES The government-wide statements report information for the City as a whole. These statements are designed to provide information about costs of services, operating results and the financial position of the City as an economic entity. These statements are prepared using the accrual method of accounting, which is similar to the accounting used by private sector companies. All of the current year’s revenues and expenses are taken into account even if the cash has not yet changed hands. Prince Solms Park 8 DEBT OBLIGATIONS USES OF DEBT The City of New Braunfels issues bonds and certificates of obligation to fund needed capital improvement projects such as streets and drainage improvements, park improvements, construction of libraries, fire and police stations and a veteran’s memorial, civic/convention center renovations and additions, airport improvements, and other major projects. Construction of Fire Station #2 Neighborhood Streets in New Braunfels Construction of the new Police Department Headquarters Walnut Ave in the heart of New Braunfels 9 BALANCE SHEET GOVERNMENTAL FUNDS 10 Dry Comal Trail in New Braunfels The City uses fund accounting to ensure and demonstrate compliance with finance related reporting requirements. The focus of governmental financial statements is on near-term inflows and outflows of spendable resources and the balance of spendable resources at the end of the year. Governmental funds include: General fund, Special Revenue funds, Capital funds and Debt Service funds. 11 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS GENERAL FUND REVENUE In FY 2021, total budgeted revenues in the General fund were $72,193,759. At fiscal year end, the total actual revenue was $86,288,867, approximately 20% over budget. The increase is driven by various sources including sales tax and increases in licenses and permits and Parks and Recreation revenue. These General Fund totals include the Equipment Replacement Fund. PROPERTY & SALES TAX Property and sales taxes make up a significant portion of total General Fund revenue (60%). While property taxes can be estimated based on property values and the tax rate, sales tax tends to be a more volatile source of revenue because it is directly correlated to economic conditions and consumer spending patterns. Sales tax remains the single largest source of revenue for the General Fund (35%). As a result, staff budgets this revenue source conservatively. 12 The sun sets over a New Braunfels Neighborhood GENERAL FUND REVENUE GENERAL FUND EXPENDITURES 13 STRATEGIC PRIORITIES The focus throughout the annual budget development process is meeting City Council’s five Strategic Priorities of infrastructure, public safety, effective management, quality of life, and growth & development. The strategic priorities are all service enhancements designed to continuously improve and deliver on the demand of our growing community. In fiscal year 2021, General Fund total budgeted expenditures were $76,105,676 (does not include interfund transfers). General Fund actual expenditures totaled $72,758,903 (does not include interfund transfers), which is approximately 4% under budget due to conservative budgeting measures. These General Fund totals include the Equipment Replacement New Braunfels Public Library’s Mobile Library Vehicle GENERAL FUND EXPENDITURES 14 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - ENTERPRISE FUNDS Main Plaza in Downtown New Braunfels Enterprise funds are used to record the business activities of the City. Dry Comal Creek Trail City Tube Chute on the Comal River Construction of New PD Headquarters IH-35 through New Braunfels Tubers on the Comal River The Comal River on Memorial Day Weekend