HomeMy WebLinkAboutCity of Tyler - Public Financial ReportCity of Tyler
Comprehensive Annual Financial Report
For the Fiscal Year Ending Sepetember 30, 2020
EXHIBIT/
SCHEDULE PAGE(S)
INTRODUCTORY SECTION
Letter of Transmittal i-viii
GFOA Certificate of Achievement for Excellence
In Financial Reporting ix
Organizational Chart x
List of Principal Officials xi
FINANCIAL SECTION
Independent Auditors' Report 1-3
Management's Discussion and Analysis 4-12
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 1 14
Statement of Activities 215
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 16
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 4 17
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds 5 18
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 6 19
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund 7 20-21
Statement of Net Position - Proprietary Funds 8 22
Statement of Revenues, Expenses, and Changes in
Net Position - Proprietary Funds 9 23
Statement of Cash Flows - Proprietary Funds 10 24
Statement of Net Position - Fiduciary Funds 11 25
Statement of Changes in Net Position - Fiduciary Funds 12 26
Notes to the Financial Statements 28-69
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios A-1 71
Schedule of Contributions A-2 72
Schedule of Changes in Net Pension liability and Related Ratios -
Firefighters' Relief and Retirement Fund A-3 73
Schedule of Contributions - Firefighters' Relief and Retirement Fund A-4 74
Schedule of Changes in Net OPEB Liability and Related Ratios - Health Plan A-5 75
CITY OF TYLER, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
EXHIBIT/
SCHEDULE PAGE(S)
CITY OF TYLER, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
Required Supplementary Information (continued):
Schedule of Contributions - Health Plan A-6 76
Schedule of Changes in Net OPEB Liability and Related Ratios - Supplemental
Death Benefits Plan A-7 77
Additional Supplementary Information:
General Governmental Funds:
Combining Balance Sheet B-1 79
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances B-2 80
Non-Major Governmental Funds:
Combining Balance Sheet C-1 83-84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 85-86
Detailed Schedules of Revenue, Expenditures, and Changes in Fund
Balances - Budget and Actual:
Police Forfeiture Fund C-3 87
Court Special Fee Fund C-4 88
Hotel-Motel Occupancy Tax Fund C-5 89
Passenger Facility Charge Fund C-6 90
PEG Fee Fund C-7 91
CDBG Fund C-8 92
Home Grant Fund C-9 93
Housing Assistance Fund C-10 94
Transit System Fund C-11 95
TIF/TIRZ #3 Fund C-12 96
TIF/TIRZ #4 Fund C-13 97
Capital Projects Fund C-14 98
Cemeteries Fund C-15 99
Internal Service Funds:
Combining Statement of Net Position D-1 102
Combining Statement of Revenues, Expenses and Changes in Net Position D-2 103
Combining Statement of Cash Flows D-3 104-105
Detailed Schedules of Revenues and Expenses - Budget and Actual: D-4 106
Productivity Improvement Fund D-5 107
Fleet Maintenance and Replacement Fund D-6 108
Property and Liability Insurance Fund D-7 109
Retiree Benefits Fund D-8 110
Property and Facility Management Fund D-9 111
Technology Fund D-10 112
Fiduciary Funds:
Employee Benefit Trust Funds:
Combining Statement of Net Position E-1 114
Combining Statement of Changes in Net Position E-2 115
Private-Purpose Trust Funds:
Combining Statement of Net Position E-3 116
Combining Statement of Changes in Net Position E-4 117
EXHIBIT/
SCHEDULE PAGE(S)
CITY OF TYLER, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
Detailed Budgetary Comparisons:
Detailed Schedule of Revenues - Budget and Actual
General Fund F-1 119-121
Detailed Schedule of Expenditures - Budget and Actual
General Fund F-2 122-126
Detailed Schedule of Revenues - Budget and Actual
Utilities Fund F-3 127
Detailed Schedule of Expenses - Budget and Actual
Utilities Fund F-4 128-129
Detailed Schedule of Revenues and Expenses - Budget and Actual
Sanitation Fund F-5 130-131
Detailed Schedule of Revenues and Expenses - Budget and Actual
Airport Fund F-6 132
STATISTICAL SECTION (UNAUDITED)
Net Position by Component 1 137
Changes in net Position 2 138-139
Governmental Activities Tax Revenues by Source 3 140
Fund Balances of Governmental Funds 4 141
Changes in Fund Balances of Governmental Funds 5 142
General Governmental Tax Revenues by Source 6 143
Retail Sales and Sales Tax Revenue Allocation 7 144
Assessed Value and Estimated Actual Value of Taxable Property 8 145
Property Tax Rates - Direct and Overlapping Governments 9 146
Principal Property Taxpayers 10 147
Property Tax Levies and Collections 11 148
Ratios of Outstanding Debt by Type 12 149
Ratios of General Bonded Debt Outstanding 13 150
Direct and Overlapping Governmental Activities Debt 14 151
Legal Debt Margin Information 15 152
Pledged-Revenue Coverage 16 153
Demographic and Economic Statistics 17 154
Principal Employers 18 155
Full-time Equivalent City Government Employees by Function 19 156
Operating Indicators by Function 20 157
Capital Asset Statistics by Function 21 158
GOVERNMENTAL COMPLIANCE SECTION
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards 161-162
Independent Auditors' Report on Compliance for Each Major Program and on Internal
Control over Compliance Required by the Uniform Guidance 163-164
Schedule of Expenditures of Federal Awards G-1 165-166
Notes to Schedule of Expenditures of Federal Awards 167-168
Schedule of Findings and Questioned Costs 169-170
Summary Schedule of Prior Audit Findings 171
INTRODUCTORY SECTION
3.23 percent. However, such a large dependence has caused budgeting constraints and all other sources of revenues will
need to be reviewed in order to stabilize the City's revenue stream in the future. By maintaining an adequate reserve and
monitoring future economic conditions, the City plans to continue to provide for future citizen needs in a streamlined and
cost effective manner.
Relevant Financial Policies
Multi year forecasting has been utilized for eight years as a part of the revenue and expenditure budgeting process in order
to realize all potential budgetary gains during restricted budgetary cycles. An OPEB trust was created in fiscal year 2009
to separate and invest the dollars related to retiree benefits in order to realize a greater rate of return while maintaining
fiduciary responsibility and security of principal.
Major Initiatives
Tyler's rapid growth and potential for change make this the critical moment for a new comprehensive plan to guide and
shape future development. The comprehensive plan, entitled Tyler 1st, was adopted in late 2007 and sets out a strategic
framework for making decisions about the long-term physical development of Tyler. It defines a vision for the future linked
to overall goals and policies, and it contains strategies and action items for achieving those goals. During the planning
process, residents and others with a stake in Tyler's future had the opportunity to articulate and review community values
and goals through public discussion, create a vision for the kind of place they want Tyler to be for their children and
grandchildren, and identify the key areas where the city must act -- both to preserve enduring character and to shape change
so that their vision for Tyler's future can be achieved.
Tyler I st provides policy and strategic guidance on the physical development and redevelopment of the City; guides the City
to actively seek positive change and deflect negative change, rather than simply react to change; provides predictability for
developers, businesses and residents; helps the City save money because it plans for orderly investment in services, facilities
and infrastructure; and helps Tyler preserve the sense of place and identity that make it unique.
Upgraded Bond Rating
The City of Tyler received an upgrade to AAA for general obligation indebtedness by Standard and Poor during 2009. This
rating increase was due in part to the current pay as you go environment and elimination of general obligation bond debt.
Additional planning initiatives that the City began during 2009 include a Lean Sigma program for standardizing and reducing
costs as well as continued multi year planning which includes replacement funding for fleet acquisitions, HY AC replacement
and roof replacements. This rating was reaffirmed in 2014.
Industry Growth Initiative
In May 2010 an unprecedented joint meeting was held between the Tyler City Council and several community boards, the
Tyler Industry Growth Initiative (IGI) was formally adopted as a shared vision for Tyler's strategic economic growth in the
next 20 years.
Boards represented include the Tyler City Council, Smith County Commissioner's Court, Tyler Independent School District
Board of Trustees, Tyler Junior College Board of Trustees, the Tyler Metro Chamber of Commerce and the Tyler Area
Chamber of Commerce. Also represented at the meeting were members of the Leadership Roundtable, including the
University of Texas - Tyler, UT Health Science Center, Texas College, East Texas Medical Center Regional Healthcare
System, the Tyler Economic Development Council, Trinity Mother Frances Hospitals and Clinics, and others.
In early 2009, Mayor Barbara Bass and Senator Kevin Eltife brought together a group of community leaders to discuss
shared issues facing the city and region. The first item addressed by the Leadership Roundtable was the need to market
Tyler and to determine the industries that made the most sense for Tyler to pursue given our unique characteristics.
Consequently, the Leadership Roundtable began the development of the Industry Growth Initiative in mid-2009. The report
recommends 10 primary building blocks that Tyler should develop to foster an Innovation Economy and take the Tyler
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Forums The Place: Innovator's Laboratory The Innovator's Lab will provide the place where innovation happens. The Innovator's Lab is a 3,000+ square foot laboratory (Makerspace) that provides the electronics and equipment 10 foster innovation and ingenuity. The space is where invention intersects with robotics, hackers and computers, engineering, electronics and art. Joint Financial Task Force Smith County Judge Nathaniel Moran and former Tyler Mayor Martin Heines proposed a task force that would meet quarterly to discuss ways that the county and city can work together to save money. That would mean looking critically at places where both governments are providing services to the same people. The county and city would each appoint three people to the task force. The members include Mayor Don Warren, City Manager Ed Broussard, and Chief Financial Officer Keidric Trimble for the city. Judge Nathanial Moran, County Auditor Ann Wilson, and County Administrator Leonardo Brown will represent the county. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended September 30, 2019. This is the thirty-fourth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. In addition, the City has received the Government Treasurer's Organization of Texas (GTOT) Investment Policy Certificate of Distinction for the annually adopted investment policy of the City for six consecutive periods. The award is valid for a two year period. In order to qualify for the award, the City must demonstrate compliance with the State investment act and fiscal responsibility of their investments. For fourteen years in a row, the City of Tyler has been presented with the Distinguished Budget Presentation Award from the Government Finance Officers Association of the United States and Canada. This award assures that state and local governments prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA's best practices on budgeting. Vll
Government Finance Officers Association
Certificate of
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Presented to
City of Tyler
Texas
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
September 30, 2019
Executive Director/CEO
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FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
To the Honorable City Council and Audit Committee,
City of Tyler, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, the budgetary comparison information for the General Fund, and the aggregate
remaining fund information of the City of Tyler, Texas (the City), as of and for the year ended September
30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic
financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
the budgetary comparison information for the General Fund and the aggregate remaining fund information
of the City, as of September 30, 2020, and the respective changes in financial position and, where
applicable, cash flows for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, net pension liability information, and other postemployment benefit plan
information, as listed in the table of contents, be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board (“GASB”), who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
statements and schedules, additional supplemental information, and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The Schedule
of Expenditure of Federal Awards is presented for purposes of additional analysis as required by Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance), and is also not a required part of the basic
financial statements.
3
The combining and individual fund statements and schedules, additional supplemental information,
statistical section, and the Schedules of Expenditure of Federal Awards are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used
to prepare the basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the combining and individual fund statements and schedules, additional supplemental
information, and the Schedules of Expenditure of Federal Awards are fairly stated in all material respects,
in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 10, 2021,
on our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
PROTHRO, WILHELMI AND COMPANY, PLLC
Tyler, Texas
March 10, 2021
4
CITY OF TYLER, TEXAS
Management’s Discussion and Analysis
For Year Ended September 30, 2020
(Unaudited)
As management of the City of Tyler, we offer readers of the City’s financial statements this narrative overview and
analysis of the financial activities for the fiscal year ended September 30, 2020. 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 i-viii of this report.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City of Tyler exceeded its liabilities and
deferred inflows of resources at September 30, 2020 by $508,457,159 (net position).
The City’s total net position increased by $20,458,052 for the current year.
As of the close of the current fiscal year, the City of Tyler’s governmental funds reported
combined ending fund balances of $62,662,928. $25,927,641 is unassigned and available for use
within the City’s fund designation and fiscal policies.
At the end of the current fiscal year the unassigned fund balance for the general fund was
$25,785,219. The general fund operating reserve targeted amount was $10,842,493 (15% of
general fund expenditures).
The City’s revenue bond payable had a net increase of $15,415,000. The City has no general
obligation bond payable.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The
City’s basic financial statements are comprised of 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.
Government-wide financial statements - The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information indicating how the City’s net position changed during the fiscal
year. All changes in net position are reported when 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 the future fiscal periods (e.g., uncollected taxes and earned but unused compensated
absences).
Both of the government-wide financial statements distinguish between functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from functions that 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 City include general government, public safety, highways and streets, public services
5
and culture and recreation. The business-type activities of the City include utilities, airport and sanitation
operations. The government-wide financial statements can be found on pages 14-15 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 City, 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 City 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 current sources and uses 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. The Governmental Funds Balance Sheet
and the Governmental Fund Statements of Revenues, Expenditures, and Changes in Fund Balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 25 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 and the Capital Projects Half Cent Sales Tax Fund, both of which are considered to be major funds. Data
from the other 23 funds are combined into a single, aggregated presentation. Individual fund data for each of these
non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic
governmental funds financial statements can be found on pages 16-21.
Proprietary Funds - The City maintains two 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 City uses
enterprise funds to account for its utilities, airport and sanitation operations. Internal service funds are an accounting
device used to accumulate and allocate costs internally among the City’s various functions. The City uses its
internal service funds to account for its fleet services, risk management, technology, property and facility
management, productivity pay, active employee benefit program and retiree benefit program. Because these
services predominantly benefit governmental rather than business-type functions, they have 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. The proprietary fund financial statements provide separate information for the utilities, airport and sanitation
funds as they are considered to be major funds of the City. All internal service funds are combined into a single
aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service
funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial
statements can be found on pages 22-24 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 City of Tyler’s own programs. The accounting used for fiduciary funds
is much like that used for proprietary funds. The basic fiduciary funds financial statements can be found on pages
25-26 of this report. Individual fund data for the fiduciary funds is provided in the form of combining statements
elsewhere in this report. An additional fiduciary fund was created in 2009 for the Other Post Employment Benefit
Trust. Information about Other Post-Employment Benefits and the related trust can be found in note 5 on pages 60-
68. The Fireman’s Relief and Retirement Fund as of 2012 is reported in the City’s financial statements as a blended
component unit. This information is included in the basic fiduciary fund statement on page 25-26. A separate
independent audit of the Fund’s financial condition is completed each fiscal year and details can be found in note 5
on pages 55-60.
6
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 28-69.
Other Information - In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City’s progress in funding its obligation to provide
pension and other post-employment benefits to its employees. Required supplementary information can be found
on pages 71-77 of this report.
The combining statements referred to earlier in connection with general governmental funds, non-major
governmental funds, enterprise funds, internal service funds and fiduciary funds are presented following the required
supplementary information on pensions. Combining and individual statements and schedules can be found on
pages 79-132 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of governments’ financial position. In the case
of the City of Tyler, assets exceeded liabilities by $508,457,159 as of September 30, 2020.
The largest portion of the City’s net position, 95.3%, or $484,742,379, reflects its investments in capital assets
(e.g., land, building, equipment, improvements, construction-in-progress and infrastructure), less any outstanding
debt used to acquire the assets. The City uses these capital assets to provide service to citizens; consequently, these
assets are not available for future spending. Although the City’s investment in its capital assets is reported net of
related debt, it should be noted 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.
2020 2019 2020 2019 2020 2019
Current and other assets $101,891,972 $94,688,568 $53,161,339 $41,509,602 $155,053,311 $136,198,170
Capital assets 265,788,679 259,297,768 297,862,289 281,613,229 563,650,968 540,910,997
Total Assets 367,680,651 353,986,336 351,023,628 323,122,831 718,704,279 677,109,167
Deferred Outflow of Resources 17,646,638 21,827,641 2,715,978 4,580,002 20,362,616 26,407,643
Non-current liabilities 97,954,886 114,520,897 93,710,761 84,416,666 191,665,647 198,937,563
Other liabilities 8,181,613 7,911,678 5,841,230 5,747,792 14,022,843 13,659,470
Total Liabilities 106,136,499 122,432,575 99,551,991 90,164,458 205,688,490 212,597,033
Deferred Inflows of Resources 19,226,384 2,324,782 5,694,862 595,888 24,921,246 2,920,670
Net Position:
Net Investment in Captial Assets 265,255,743 257,564,279 219,486,636 220,412,254 484,742,379 477,976,533
Restricted 34,968,729 36,220,286 28,681,236 16,738,113 63,649,965 52,958,399
Unrestricted (40,260,066) (42,727,945) 324,881 (207,880) (39,935,185) (42,935,825)
Total Net Position $259,964,406 $251,056,620 $248,492,753 $236,942,487 $508,457,159 $487,999,107
CITY OF TYLER’S NET POSITION – Fiscal Year 2020
Governmental Activities Business-Type Activities Total
An additional portion of the City’s net position, 12.5% or $63,649,965 represents resources that are subject to
external restriction on how they may be used. The remaining balance of unrestricted net position is (7.9%) at
$(39,935,185).
The negative remaining balance in unrestricted net position is related to the implementation of GASB 68, 71, and 75
in prior years requiring the recording of all pension and Other Post-Employment Benefits (OPEB) related assets and
7
liabilities in the financial statements. Currently Pension and OPEB liabilities exceed pension assets. The City of
Tyler has two pension plans on its books: Texas Municipal Retirement System (TMRS) and Tyler Firemen’s Relief
and Retirement Fund (TFDRRF). Texas Municipal Retirement plan has a thirty-year closed amortization period. It
is estimated that TMRS pension plan will be 100% funded in 2036. 100% funding will mean that pension and
OPEB assets will be equal to liabilities. Once that has been achieved it is expected that the City’s contribution rate
(TMRS) and actuarial determine contribution (ADC) will be reduced. Tyler Firemen’s Relief and Retirement Fund
is an open amortization plan and targets to amortize its unfunded actuarial accrued liability over a fifteen to
twenty-five year period.
This negative impact on the City’s net position is not unique to the City of Tyler. Many organizations across the
country are experiencing similar scenarios with the implementation of this new accounting standard. This new
standard has been discussed for some time and organizations have been preparing for this implementation. Pension
plans like TMRS have worked with us and made changes to make sure that we are properly setting aside the
appropriate dollars for future benefits. The City has implemented reduction in retiree Medicare RX and Medicare
supplemental insurance contributions and increased its ADC to begin work toward reducing its OPEB liability.
As of September 30, 2020, the City can report positive balances in two of the three categories of net position. The
prior fiscal year also had positive balances in two of the three categories. The following chart illustrates for the
current fiscal year the percentage of total net position each category encompasses.
Analysis of the City’s Operations – Overall, the City’s total net position increased by $20,458,052 for the current
year.
8
Governmental Activities: Governmental activities increased total net position by $8,907,786. Net position
invested in capital assets; net of related debt increased by $7,691,464 addition of assets. Restricted net position
decreased by $1,251,656.
9
Business-type Activities: Net Position from business-type activities increased by $11,550,266. This increase was
primarily due to an increase in capital assets related to the Airport and Water Utilities Fund.
10
The following table provides a summary of the City’s operations for the year ended September 30, 2020 with
comparative totals for the year ended September 30, 2019.
2020 2019 2020 2019 2020 2019
Revenues:
Program Revenues:
Charges for services $8,960,991 $14,237,454 $63,301,413 $59,639,150 $72,262,404 $73,876,604
Operating grants and contributions 19,981,326 11,744,468 - - 19,981,326 11,744,468
Capital grants and contributions 308,143 411,605 4,900,741 8,459,328 5,208,884 8,870,933
General revenues:
Property taxes 22,858,131 20,736,120 - - 22,858,131 20,736,120
Franchise taxes 11,124,504 11,019,217 - - 11,124,504 11,019,217
Sales and use taxes 49,273,911 50,168,540 - - 49,273,911 50,168,540
Investment earnings and use of money and property 1,531,778 1,264,860 1,505,184 661,536 3,036,962 1,926,396
Gain on sale of assets (336,086) 170,908 30,000 60,681 (306,086) 231,589
Donations - - - - - -
Miscellaneous - - - - - -
Total revenues 113,702,698 109,753,172 69,737,338 68,820,695 183,440,036 178,573,867
Expenses:
General government 8,546,671 6,929,613 - - 8,546,671 6,929,613
Public safety 52,163,878 54,290,654 - - 52,163,878 54,290,654
Streets 14,331,423 12,863,503 - - 14,331,423 12,863,503
Public services 18,825,525 16,293,667 - - 18,825,525 16,293,667
Culture and recreation 11,208,328 8,573,123 - - 11,208,328 8,573,123
Interest on long-term debt 43,768 68,488 - - 43,768 68,488
Water and sewer - - 39,991,263 38,465,495 39,991,263 38,465,495
Sanitation - - 14,135,998 13,836,676 14,135,998 13,836,676
Airport - - 3,735,130 3,390,497 3,735,130 3,390,497
Total Expenses 105,119,593 99,019,048 57,862,391 55,692,668 162,981,984 154,711,716
Transfers 324,681 83,936 (324,681) (83,936) - -
Change in net position 8,907,786 10,818,060 11,550,266 13,044,091 20,458,052 23,862,151
Net position – October 1 251,056,620 240,238,560 236,942,487 223,898,396 487,999,107 464,136,956
Prior Period Adjustment - - - - - -
Net position – September 30 259,964,406$ 251,056,620$ 248,492,753$ 236,942,487$ 508,457,159$ 487,999,107$
23,862,151 10,734,124 Increases (decreases) in net position before transfers 8,583,105 11,874,947 13,128,027 20,458,052
Governmental Activities Business-Type Activities Total
CITY OF TYLER’S CHANGES IN NET POSITION
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental funds - The focus of the City of Tyler’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Tyler’s governmental funds reported combined ending fund
balances of $62,662,928. Approximately 41% of this total amount, $25,927,641, constitutes unassigned fund
balance. The remainder of the fund balance is reserved to indicate that it is not available for new spending because
it has already been restricted or assigned for the following: 1) to pay for capital projects, $23,269,327; 2) to pay for
the perpetual care of city cemeteries, $3,094,567; 3) to purchase items restricted under grant and donation terms,
$1,910,615; 4) to purchase items restricted under tourism and conventions, $6,102,399 and 5) to pay for other
11
miscellaneous restrictions, $2,358,379. The City of Tyler also self imposes an operating designation in the general
fund equivalent to approximately 15 percent of total expenditures, $10,842,493.
In the general fund, the City’s original budget planned to decrease the fund balance on a budget basis by $56,816.
Additional amendments were made to fund various expenses required for operations for a net budgeted decrease in
fund balance of $257,338. Due to both revenue and expenditure budget variances the actual net increase in fund
balance for fiscal year 2020 was $6,798,375. Capital Projects Half Cent Sales Tax Fund balance decreased in 2020
by $1,193,396. Other non-major governmental fund balances increased in 2020 by $265,456, from $13,579,311 to
$13,884,767.
Proprietary funds - The City’s proprietary fund statements provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net position of the respective proprietary funds are Utilities - $178,540, Sanitation – $(2,606,116) and
Airport – $32,775. The following funds had a net position increase in 2020 as follows: Utilities
$7,375,105, Sanitation $186,608, and Airport- $3,988,553.
General Fund Budgetary Highlights - The City revised the original budget appropriations approved by the City
Council. Overall, these changes resulted in increased budgeted appropriations of $202,197.
Actual revenues were above the final budgeted amounts by a total of $4,911,134. Actual expenditures including
transfers were below final budgeted amounts by a total of $2,144,579.
CAPITAL ASSETS
The City of Tyler’s investment in capital assets for its governmental and business-type activities as of September 30,
2020 amounts to $563,650,968, (net of accumulated depreciation). This investment in capital assets includes land,
water rights, building, equipment, improvements, infrastructure, and construction in progress. The total net increase
in capital assets for the current fiscal year was $22,739,971.
Major capital asset events during the current fiscal year included the following:
$ 7,937,350 Roadway improvement projects
$ 5,331,808 Airport capital projects
$ 18,409,412 Water and Sewer capital projects
$ 3,061,480 Parks
$ 4,070,285 Drainage Capital Projects
2020 2019 2020 2019 2020 2019
Land $17,684,384 $18,243,886 $11,792,909 $11,412,159 $29,477,293 $29,656,045
Water rights - - 12,526,700 12,526,700 12,526,700 12,526,700
Building 34,676,850 35,981,215 27,649,874 29,082,014 62,326,724 65,063,229
Improvements 45,342,566 33,052,512 196,032,907 178,790,611 241,375,473 211,843,123
Machinery & equipment 20,437,499 19,691,904 5,815,048 5,583,937 26,252,547 25,275,841
Infrastructure 127,200,200 135,244,307 16,882,622 17,371,248 144,082,822 152,615,555
Construction in progress 20,447,180 17,083,944 27,162,229 26,846,560 47,609,409 43,930,504
Total $265,788,679 $259,297,768 $297,862,289 $281,613,229 $563,650,968 540,910,997
Capital Assets at Year End
Net of Accumulated Depreciation
Governmental Activities Business-Type Activities Total
Additional information on the City of Tyler’s capital assets can be found in note 4 on page 43-45 of this report.
12
DEBT ADMINISTRATION
At the end of the current fiscal year, the City of Tyler had a total bonded debt of $73,645,000 comprised of bonds
secured by water and sewer revenues $72,935,000 and airport customer facility revenue $710,000.
2020 2019 2020 2019 2020 2019
Capital leases 1,621,501$ 1,733,492$ 51,691$ 102,423$ 1,673,192$ 1,835,915$
Revenue bonds payable - - 73,645,000 58,230,000 73,645,000 58,230,000
Total 1,621,501$ 1,733,492$ 73,696,691$ 58,332,423$ 75,318,192$ 60,065,915$
Outstanding Debt at Year End
Bonds and Notes Payable
Governmental Activities Business-Type Activities Total
During the fiscal year, the City’s revenue bond debt increased by $15,415,000 or 26.5%.
The City’s General Obligation and Revenue Bond ratings are listed below.
Moody’s Standard
Investors Service & Poor’s
General Obligation Bonds Aa2 AAA
Revenue Bonds Aa2 AA+
Revenue Bonds (Senior Lien Debt) Aa2 AAA
Please see note 4 on page 47 for an explanation of reserve requirements for the City of Tyler. State statutes limit the
amount of general obligation debt a governmental entity may issue to 10 percent of its total assessed valuation. The
current debt limitation for the City of Tyler is $939,938,978. The City of Tyler has no outstanding general obligation
bond debt.
Additional information on the City of Tyler’s long term-debt can be found in note 4 on pages 46-48 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The unemployment rate for the City of Tyler is currently 5.9%, which is an increase from 3.2% a year ago.
This compares to the state’s average unemployment rate of 7.1% and the national average rate of 6.5%.
The office space occupancy rate for the City of Tyler increased slightly in 2020 to 84.47% from 82.58%
occupancy in 2019.
Sales tax receipt growth over a ten year average increased slightly to 3.20%. Property values have grown
at an average of 3.08% over the last ten years. Growth in values include new and existing values.
All of these factors were considered in preparing the budget for the fiscal year 2020-2021 and the City of Tyler
anticipates that total net position will remain at similar levels by September 30, 2021.
REQUEST FOR INFORMATION
The financial report is designed to provide our citizens, customers, investors and creditors with general overview of
the City’s finances. If you have questions about this report or need any additional information, contact the
Department of Finance, Attn: Chief Financial Officer at P.O. Box 2039, Tyler, Texas 75710, call (903) 531-1138,
or email cfo@tylertexas.com.
BASIC FINANCIAL STATEMENTS
EXHIBIT 1
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTIVITIES TOTAL
ASSETS
Cash and cash equivalents 44,720,297$ 13,756,494$ 58,476,791$
Receivables (net of allowance for doubtful accounts) 30,689,086 8,598,793 39,287,879
Internal balances (2,719,682) 2,719,682 -
Inventories 398,616 691,187 1,089,803
Prepaid items 170,037 42,237 212,274
Restricted Assets:
Temporarily restricted
Cash and cash equivalents 22,644,548 27,352,946 49,997,494
Permanently restricted
Cash and cash equivalents 3,092,164 - 3,092,164
Other post employment benefits asset 14,707 - 14,707
Investment in joint venture 2,882,199 - 2,882,199
Capital assets not being depreciated:
Land 17,684,384 11,792,909 29,477,293
Water rights - 12,526,700 12,526,700
Construction in progress 20,447,180 27,162,229 47,609,409
Capital Assets net of accumulated depreciation:
Buildings 34,676,850 27,649,874 62,326,724
Improvements, other than buildings 45,342,566 196,032,907 241,375,473
Machinery and equipment 20,437,499 5,815,048 26,252,547
Infrastructure 127,200,200 16,882,622 144,082,822
Total assets 367,680,651 351,023,628 718,704,279
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 17,976,950 2,407,354 20,384,304
Deferred outflows related to OPEB (330,312) (57,835) (388,147)
Deferred charge on refunding (net of amortization) - 366,459 366,459
Total deferred outflows of resources 17,646,638 2,715,978 20,362,616
LIABILITIES
Accounts payable 5,297,565 5,534,767 10,832,332
Deposits and other refundable balances 1,284,336 66,180 1,350,516
Insurance claims payable 1,545,166 - 1,545,166
Accrued interest payable 22,541 240,283 262,824
Unearned revenues 32,005 - 32,005
Non-current liabilities:-
Due within one year 1,378,364 3,695,528 5,073,892
Due in more than one year 96,576,522 90,015,233 186,591,755
Total liabilities 106,136,499 99,551,991 205,688,490
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 6,725,640 2,489,366 9,215,006
Deferred inflows related to pensions 12,500,744 3,205,496 15,706,240
Total deferred inflows of resources 19,226,384 5,694,862 24,921,246
NET POSITION
Net investment in capital assets 265,255,743 219,486,636 484,742,379
Restricted for:
Perpetual care - nonexpendable 3,094,567 - 3,094,567
Storm water management - 1,328,290 1,328,290
Public Safety 495,082 - 495,082
Capital improvements 527,438 - 527,438
Tourism and convention 5,975,133 - 5,975,133
Donor restrictions 362,873 - 362,873
Capital projects 21,942,766 25,355,673 47,298,439
Airport improvements 127,192 - 127,192
Communications 895,936 - 895,936
Housing assistance 1,160,377 - 1,160,377
Grant restrictions 387,365 - 387,365
Debt service - 1,997,273 1,997,273
Unrestricted (40,260,066) 324,881 (39,935,185)
Total net position 259,964,406$ 248,492,753$ 508,457,159$
PRIMARY GOVERNMENT
STATEMENT OF NET POSITION
CITY OF TYLER, TEXAS
SEPTEMBER 30, 2020
The notes to the financial statements are an integral part of this statement.
14
EXHIBIT 2FUNCTIONS / PROGRAMS EXPENSESCHARGES FOR SERVICESOPERATING GRANTS AND CONTRIBUTIONSCAPITAL GRANTS AND CONTRIBUTIONSGOVERNMENTAL ACTIVITIESBUSINESS-TYPE ACTIVITIES TOTAL Governmental activities: General government 8,546,671$ 2,602,642$ 5,916,821$ -$ (27,208)$ -$ (27,208)$ Public safety 52,163,878 3,401,998 394,878 308,143 (48,058,859) - (48,058,859) Highways and streets 14,331,423 - - - (14,331,423) - (14,331,423) Public services 18,825,525 2,832,501 13,669,627 - (2,323,397) - (2,323,397) Culture and recreation 11,208,328 123,850 - - (11,084,478) - (11,084,478) Interest on long term debt 43,768 - - - (43,768) - (43,768) Total governmental activities 105,119,593 8,960,991 19,981,326 308,143 (75,869,133) - (75,869,133) Business-type activities:Utilities 39,991,263 47,113,899 - - - 7,122,636 7,122,636 Sanitation 14,135,998 14,164,974 - - - 28,976 28,976 Airport 3,735,130 217,900 - 5,804,364 - 2,287,134 2,287,134 Total business-type activities 57,862,391 61,496,773 - 5,804,364 - 9,438,746 9,438,746 Total primary government162,981,984$ 70,457,764$ 19,981,326$ 6,112,507$ (75,869,133) 9,438,746 (66,430,387) General revenues: Property taxes22,858,131 - 22,858,131 Franchise taxes11,124,504 - 11,124,504 Sales and use taxes49,273,911 - 49,273,911 Unrestricted investment earnings and use of money and property 1,531,778 2,406,201 3,937,979 Gain (loss) on sale of assets (336,086) 30,000 (306,086) Transfers324,681 (324,681) - Total general revenues and transfers 84,776,919 2,111,520 86,888,439 Change in net position 8,907,786 11,550,266 20,458,052 Net position - beginning of year 251,056,620 236,942,487 487,999,107 Net position - end of year259,964,406$ 248,492,753$ 508,457,159$ NET (EXPENSE) REVENUE ANDCHANGES IN NET ASSETSPROGRAM REVENUESCITY OF TYLER, TEXASSTATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2020The notes to the financial statements are an integral part of this statement. 15
EXHIBIT 3
MAJOR FUNDS OTHER
NON-MAJOR TOTAL
GOVERNMENTAL GOVERNMENTAL
GENERAL FUNDS FUNDS
ASSETS
Cash and cash equivalents 16,646,688$ -$ 8,311,861$ 24,958,549$
Receivables (net of allowance for
doubtful accounts) :
Property taxes 636,729 - - 636,729
Other 25,033,247 2,687,683 2,010,082 29,731,012
Due from other funds 1,217,559 - - 1,217,559
Inventories 74,900 - 4,450 79,350
Prepaid items 93,973 - 102 94,075
Cash - restricted - 20,225,030 5,511,682 25,736,712
Total assets 43,703,096$ 22,912,713$ 15,838,177$ 82,453,986$
LIABILITIES
Accounts payable 2,822,753 969,817 545,873 4,338,443
Deposits and other refundable balances 1,025,996 - 258,210 1,284,206
Other liabilities - 130 - 130
Due to other funds - - 1,188,498 1,188,498
Unearned revenues 31,176 - 829 32,005
Total liabilities 3,879,925 969,947 1,993,410 6,843,282
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes 607,738 - - 607,738
Unavailable revenue-fines 12,299,925 - - 12,299,925
Unavailable revenue-permits 40,113 - - 40,113
Total deferred inflows of resources 12,947,776 - - 12,947,776
FUND BALANCES
Nonspendable:
Inventory 74,900 - 4,450 79,350
Prepaid items 93,973 - - 93,973
Permanent fund principal - - 3,094,567 3,094,567
Restricted for:
Public Safety - - 495,082 495,082
Capital improvements - - 527,438 527,438
Tourism and convention - - 5,975,133 5,975,133
Donor restrictions - - 362,873 362,873
Capital projects - 21,942,766 - 21,942,766
Airport improvements - - 127,192 127,192
Communications - - 895,936 895,936
Housing assistance - - 1,160,377 1,160,377
Grant restrictions - - 387,365 387,365
Assigned to:
Development services 794,038 - - 794,038
Capital projects - - 671,931 671,931
Tourism and convention 127,266 - - 127,266
Unassigned 25,785,218 - 142,423 25,927,641
Total fund balances 26,875,395 21,942,766 13,844,767 62,662,928
Total liabilities, deferred inflows of
resources, and fund balances 43,703,096$ 22,912,713$ 15,838,177$ 82,453,986$
CITY OF TYLER, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
ONE-HALF CENT
SALES TAX
The notes to the financial statements are an integral part of this statement. 16
EXHIBIT 4
Total fund balances governmental funds (Exhibit 3) 62,662,928$
Other post employment benefits in governmental activities are not current financial resources and therefore
are not reported in the governmental funds balance sheet. (Includes other post employment benefit assets of
Internal Service Funds)14,707
Capital assets used in governmental activities are not current financial resources and, therefore, are not
reported in the governmental funds balance sheet. 246,929,681
Equity in an affiliated joint venture is included in governmental activities in the statement of net assets. 2,882,199
Other long-term assets are not available to pay for current-period expenditures and, therefore, are
reported as unavailable revenue in the funds.12,947,776
Deferred outflows of funds related to pension and OPEB activities 17,323,001
Deferred inflows of funds related to pension and OPEB activities (18,461,458)
Net pension and OPEB liabilities reflected under GASB 68 and 75 at year end (81,216,098)
Internal service funds are used by management to charge the costs of various goods or services provided to
other departments or agencies of the City. The assets and liabilities of the internal service funds are included
in governmental activities in the statement of net assets (Net of the amount allocated to business-type
activities - $2,719,682 )29,227,687
Long term liabilities are not due and payable in the current period and therefore are not reported in
the governmental funds balance sheet.(12,346,017)
Net position of governmental activities (Exhibit 1) 259,964,406$
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
CITY OF TYLER, TEXAS
The notes to the financial statements are an integral part of this statement. 17
EXHIBIT 5
GENERAL ELIMINATIONS
REVENUES
Taxes:
Property 22,732,277$ -$ 94,198$ -$ 22,826,475$
Franchise 11,000,729 - 123,775 - 11,124,504
Sales and use 31,110,809 15,315,318 2,847,784 - 49,273,911
Licenses and permits 1,728,305 - 6,525 - 1,734,830
Fines, forfeitures, and penalties 3,532,014 - 477,581 - 4,009,595
Revenues from use of money or property 531,635 370,071 258,374 - 1,160,080
Charges for current services 2,483,110 - 471,613 - 2,954,723
Revenues from other agencies 6,311,699 - 13,977,770 - 20,289,469
Donations - - 168,415 - 168,415
Miscellaneous 995,692 - 42,358 - 1,038,050
Total revenues 80,426,270 15,685,389 18,468,393 - 114,580,052
EXPENDITURES
Current:
General government 7,061,471 175,000 106,907 - 7,343,378
Public safety 49,359,878 - 429,032 - 49,788,910
Public services 2,782,929 - 12,985,064 - 15,767,993
Highways and streets 4,839,899 - - - 4,839,899
Culture and recreation 8,017,086 - 398,972 - 8,416,058
Capital outlay 222,024 16,049,570 4,535,350 - 20,806,944
Debt service:
Principal retirement - - 136,114 - 136,114
Interest and fiscal charges - - 17,715 - 17,715
Total expenditures 72,283,287 16,224,570 18,609,154 - 107,117,011
Excess (deficiency) of revenues
over (under) expenditures 8,142,983 (539,181) (140,761) - 7,463,041
OTHER FINANCING SOURCES (USES)
Transfers in 1,833,500 - 2,493,392 (112,371) 4,214,521
Transfers out (3,178,108) (654,215) (2,087,175) 112,371 (5,807,127)
Total other financing sources (uses) (1,344,608) (654,215) 406,217 - (1,592,606)
Net change in fund balances 6,798,375 (1,193,396) 265,456 - 5,870,435
Fund balances - beginning of year 20,077,020 23,136,162 13,579,311 - 56,792,493
Fund balances - end of year 26,875,395$ 21,942,766$ 13,844,767$ -$ 62,662,928$
ONE-HALF CENT
SALES TAX
OTHER NON-MAJOR
GOVERNMENTAL
FUNDS
TOTAL
GOVERNMENTAL
FUNDS
CITY OF TYLER, TEXAS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
MAJOR FUNDS
The notes to the financial statements are an integral part of this statement.
18
EXHIBIT 6
Amounts reported for governmental activities in the statement of activities (Exhibit 2) are different because:
Net change in fund balances - total governmental funds 5,870,435$
Governmental funds report capital outlays as expenditures. However, in the statement of activities the
cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlay exceeded depreciation in the current period. 6,258,299
The net increase of the equity in investment in an affiliated joint venture is reflected on the
statement of activities.102,133
The net effect of various transactions involving capital assets (i.e., sales, trade-ins, and donations)
is to decrease net assets.(597,177)
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds. The current adjustment reflects a net decrease in the deferral of the revenue. (1,084,733)
The issuance of long-term debt (e.g. capital leases) provides current financial resources to governmental
funds, while the repayment of the principal of long-term debt consumes the current financial
resources of governmental funds.151,286
Some expenses reported in the statement of activities do not require the use of current financial resources;
therefore, they are not reported as expenditures in governmental funds. This amount reflects the change
in the accrued liability for compensated absences, accrued legal expenses, and net pension expense. (4,756,000)
Internal service funds are used by management to charge the costs of certain activities, such as insurance
and fleet management, to individual funds. The net revenue of the internal service funds is reported with
governmental activities.2,963,543
Change in net assets of governmental activities (Exhibit 2) 8,907,786$
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF TYLER, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
The notes to the financial statements are an integral part of this statement.
19
EXHIBIT 7
Page 1 of 2
VARIANCE WITH
FINAL BUDGET
ORIGINAL FINAL ACTUAL POSITIVE (NEGATIVE)
REVENUES
Property tax collections 22,859,193$ 22,859,193$ 22,732,277$ (126,916)$
Franchise fees 10,925,687 10,925,687 11,000,729 75,042
Sales and use taxes 30,611,458 30,611,458 31,110,809 499,351
Licenses and permits 2,021,743 2,021,743 1,728,305 (293,438)
Fines, forfeitures, and penalties 4,102,600 4,102,600 3,532,014 (570,586)
Revenues from use of money or property 972,036 973,711 531,635 (442,076)
Charges for current services 2,583,411 2,583,411 2,483,110 (100,301)
Revenues from other agencies 461,252 461,252 6,311,699 5,850,447
Miscellaneous 976,081 976,081 995,692 19,611
Total revenues 75,513,461 75,515,136 80,426,270 4,911,134
EXPENDITURES
GENERAL GOVERNMENT:
General Government Services 4,464,058 4,381,030 3,898,482 482,548
Communications 454,519 454,519 412,671 41,848
Finance 1,292,395 1,292,395 1,258,077 34,318
Human Resources 483,213 483,213 446,260 36,953
Legal 1,032,607 1,032,607 1,002,992 29,615
Parking Garage 28,428 50,795 22,009 28,786
Innovation Pipeline 7,373 22,202 20,980 1,222
Total General Government 7,762,593 7,716,761 7,061,471 655,290
PUBLIC SAFETY
Police 28,713,871 28,713,871 28,668,849 45,022
Fire 19,022,359 19,022,359 18,966,615 55,744
Municipal Court 1,790,779 1,790,779 1,724,414 66,365
Total Public Safety 49,527,009 49,527,009 49,359,878 167,131
PUBLIC SERVICES
Animal Services 1,138,766 1,138,766 1,040,713 98,053
Planning and Zoning Services 651,765 651,765 622,074 29,691
Building Services 1,189,644 1,189,644 1,120,142 69,502
Total Public Services 2,980,175 2,980,175 2,782,929 197,246
(Continued)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
FUND BALANCE - BUDGET AND ACTUAL
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
GENERAL FUND
CITY OF TYLER, TEXAS
BUDGET AMOUNTS
The notes to the financial statements are an integral part of this statement.
20
EXHIBIT 7
Page 2 of 2
VARIANCE WITH
FINAL BUDGET
ORIGINAL FINAL ACTUAL POSITIVE (NEGATIVE)
EXPENDITURES (continued)
HIGHWAYS AND STREETS
Engineering 534,370$ 534,370$ 470,970$ 63,400$
Street administration 2,507,681 2,507,681 2,198,081 309,600
Traffic operations 2,408,542 2,471,042 2,170,848 300,194
Total Highways and Streets 5,450,593 5,513,093 4,839,899 673,194
CULTURE AND RECREATION
Library 1,609,891 1,609,891 1,608,173 1,718
Parks administration 2,675,377 2,697,181 2,915,280 (218,099)
Indoor recreation 579,198 567,394 519,398 47,996
Outdoor recreation 230,064 230,064 145,683 84,381
Median maintenance and arborist 439,400 429,400 481,584 (52,184)
Rose Garden center 290,284 279,284 272,411 6,873
Rose Garden maintenance 587,087 574,587 579,234 (4,647)
Visitor facilities 934,103 966,098 887,108 78,990
Main Street 449,690 469,690 334,700 134,990
Liberty Hall 295,244 326,244 273,515 52,729
Total Culture and Recreation 8,090,338 8,149,833 8,017,086 132,747
Capital Outlay 92,800 218,834 178,024 40,810
Total expenditures 73,949,508 74,151,705 72,283,287 1,868,418
Excess (deficiency) of revenues
over (under) expenditures 1,563,953 1,363,431 8,142,983 6,779,552
OTHER FINANCING SOURCES (USES)
Transfers in 1,833,500 1,833,500 1,833,500 -
Transfers out (3,454,269) (3,454,269) (3,178,108) 276,161
Total other financing sources (uses) (1,620,769) (1,620,769) (1,344,608) 276,161
Net change in fund balance (56,816) (257,338) 6,798,375 7,055,713
Fund balance - beginning of year 16,295,654 14,742,019 20,077,020 5,335,001
Fund balance - end of year 16,238,838$ 14,484,681$ 26,875,395$ 12,390,714$
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
BUDGET AMOUNTS
CITY OF TYLER, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
The notes to the financial statements are an integral part of this statement.
21
EXHIBIT 8
GOVERNMENTAL
ACTIVITIES
TOTAL INTERNAL
ENTERPRISE SERVICE
ASSETS UTILITIES SANITATION AIRPORT FUNDS FUNDS
Current assets:
Unrestricted current assets:
Cash and cash equivalents 11,761,949$ 1,132,073$ 862,472$ 13,756,494$ 19,761,748$
Prepaid expenses 41,510 727 - 42,237 75,962
Accounts receivable (net of allowance for doubtful accounts)5,955,873 2,386,029 240,385 8,582,287 321,345
Accrued interest receivable 16,297 - 209 16,506 -
Inventories - at average cost 691,187 - - 691,187 319,266
Total unrestricted current assets 18,466,816 3,518,829 1,103,066 23,088,711 20,478,321
Restricted Current assets:
Temporarily restricted:
Cash and cash equivalents for payment of current maturities
of revenue bond principal and interest 1,893,093 - 104,180 1,997,273 -
Total restricted current assets 1,893,093 - 104,180 1,997,273 -
Total current assets 20,359,909 3,518,829 1,207,246 25,085,984 20,478,321
Noncurrent assets:
Restricted assets:
Temporarily restricted
Cash and cash equivalents 25,144,299 211,374 - 25,355,673 -
Total restricted assets 25,144,299 211,374 - 25,355,673 -
Other post employment benefits asset - - - - 14,707
Capital assets:
Land 6,842,055 3,285,312 1,665,542 11,792,909 93,938
Water rights 12,526,700 - - 12,526,700 -
Buildings and infrastructure 41,380,122 727,319 42,144,225 84,251,666 1,692,125
Improvements other than buildings 272,481,798 591,665 57,140,435 330,213,898 2,233,569
Machinery and equipment 5,992,795 8,603,443 1,266,521 15,862,759 49,013,123
Construction in progress 3,668,511 54,280 23,439,438 27,162,229 14,500
Less accumulated depreciation (150,839,878) (5,992,524) (27,115,470) (183,947,872) (34,188,257)
Total capital assets net of accumulated depreciation 192,052,103 7,269,495 98,540,691 297,862,289 18,858,998
Total noncurrent assets 217,196,402 7,480,869 98,540,691 323,217,962 18,873,705
Total assets 237,556,311 10,999,698 99,747,937 348,303,946 39,352,026
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 1,531,807 726,853 148,694 2,407,354 521,961
Deferred outflows related to OPEB (43,648) (12,710) (1,477) (57,835) (198,324)
Deferred charge on refunding (net of amortization)366,459 - - 366,459 -
Total deferred outflows of resources 1,854,618 714,143 147,217 2,715,978 323,637
LIABILITIES
Current liabilities:
Unrestricted current liabilities
Accounts and contracts payable 4,545,055 851,062 138,650 5,534,767 959,122
Due to other funds - - - - -
Insurance claims payable - - - - 1,545,166
Current portion of capital lease payment - - 51,691 51,691 628,851
Current portion of compensated absences payable 30,216 12,157 21,464 63,837 10,331
Total unrestricted current liabilities 4,575,271 863,219 211,805 5,650,295 3,143,470
Current liabilities payable from restricted assets
Revenue bonds payable 3,500,000 - 80,000 3,580,000 -
Customer deposits 66,180 - - 66,180 -
Accrued interest 240,283 - - 240,283 22,541
Total current liabilities payable from restricted assets 3,806,463 - 80,000 3,886,463 22,541
Total current liabilities 8,381,734 863,219 291,805 9,536,758 3,166,011
Noncurrent liabilities:
Revenue bonds payable 74,165,653 - 630,000 74,795,653 -
Capital lease payable - - - - 444,542
Net pension obligation 6,363,730 2,911,979 591,249 9,866,958 2,286,694
Net OPEB obligation 3,053,197 1,286,832 207,513 4,547,542 826,046
Compensated absences 574,101 230,979 - 805,080 196,307
Total noncurrent liabilities 84,156,681 4,429,790 1,428,762 90,015,233 3,753,589
Total liabilities 92,538,415 5,293,009 1,720,567 99,551,991 6,919,600
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to OPEB 1,711,653 687,980 89,733 2,489,366 236,908
Deferred inflows related to pensions 2,230,189 858,099 117,208 3,205,496 528,018
Total deferred inflows of resources 3,941,842 1,546,079 206,941 5,694,862 764,926
NET POSITION
Net investment in capital assets 114,386,450 7,269,495 97,830,691 219,486,636 18,858,998
Restricted for:
Debt service 1,893,093 - 104,180 1,997,273 -
Storm water management 1,328,290 - - 1,328,290 -
Capital projects 25,144,299 211,374 - 25,355,673 -
Unrestricted 178,540 (2,606,116) 32,775 (2,394,801) 13,132,139
Total net position 142,930,672$ 4,874,753$ 97,967,646$ 245,773,071$ 31,991,137$
Reconciliation to government-wide statements of net assets:
Adjustment to reflect the consolidation of internal service fund
activities related to enterprise funds 2,719,682
Net position of business-type activities 248,492,753$
ENTERPRISE FUNDS
CITY OF TYLER, TEXAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2020
BUSINESS-TYPE ACTIVITIES
The notes to the financial statements are an integral part of this statement.
22
EXHIBIT 9
GOVERNMENTAL
ACTIVITIES
TOTAL INTERNAL
ENTERPRISE SERVICE
UTILITIES SANITATION AIRPORT FUNDS FUNDS
OPERATING REVENUES
Water and sewer operations 44,456,111$ -$ -$ 44,456,111$ -$
Trash and garbage - 14,128,961 - 14,128,961 -
Airport sales and rentals - - 177,996 177,996 -
Charges for services - - - - 18,626,081
Contributions - - - - 11,137,643
Miscellaneous 2,657,788 36,013 39,904 2,733,705 2,684,727
Total operating revenues 47,113,899 14,164,974 217,900 61,496,773 32,448,451
OPERATING EXPENSES
Water and sewer operations 29,783,127 - - 29,783,127 -
Sanitation operations - 13,485,214 - 13,485,214 -
Municipal airport operations - - 1,363,021 1,363,021 -
Garage operations - - - - 5,915,499
Depreciation 7,715,415 650,784 2,340,657 10,706,856 4,185,046
Insurance claims - - - - 13,286,966
Administrative - - - - 6,775,988
Special services - - - - 874,442
Maintenance - - - - 410,240
Total operating expenses 37,498,542 14,135,998 3,703,678 55,338,218 31,448,181
Operating income (loss) 9,615,357 28,976 (3,485,778) 6,158,555 1,000,270
NON-OPERATING REVENUES (EXPENSES)
Revenues from use of money and property 780,448 686,867 938,886 2,406,201 415,007
Gain (loss) on sale of assets - 30,000 - 30,000 261,091
Interest expense (2,492,721) - (31,452) (2,524,173) (26,051)
Total non-operating revenues (expenses) (1,712,273) 716,867 907,434 (87,972) 650,047
Income (loss) before income from other agencies
and transfers 7,903,084 745,843 (2,578,344) 6,070,583 1,650,317
Income from other agencies - - 5,804,364 5,804,364 -
Transfers in 22,694,205 1,497,269 767,882 24,959,356 1,480,252
Transfers out (23,222,184) (2,056,504) (5,349) (25,284,037) (137,965)
Net transfers and income from other agencies (527,979) (559,235) 6,566,897 5,479,683 1,342,287
Change in net position 7,375,105 186,608 3,988,553 11,550,266 2,992,604
Net position - beginning of year 135,555,567 4,688,145 93,979,093 234,222,805 28,998,533
Net position - end of year 142,930,672$ 4,874,753$ 97,967,646$ 245,773,071$ 31,991,137$
ENTERPRISE FUNDS
BUSINESS-TYPE ACTIVITIES
CITY OF TYLER, TEXAS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
The notes to the financial statements are an integral part of this statement.
23
EXHIBIT 10
GOVERNMENTAL
ACTIVITIES
TOTAL INTERNAL
ENTERPRISE SERVICE
UTILITIES SANITATION AIRPORT FUNDS FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 47,581,286$ 13,970,237$ 2,312,791$ 63,864,314$ 31,904,906$
Cash paid to suppliers for goods and services (16,982,196) (8,922,230) (3,062,009) (28,966,435) (11,498,617)
Cash paid to employees for services (11,003,754) (4,567,804) (670,018) (16,241,576) (2,573,562)
Insurance claims paid - - - - (12,871,111)
Net cash provided by (used in) operating activities 19,595,336 480,203 (1,419,236) 18,656,303 4,961,616
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in from other funds 22,694,205 1,497,269 767,882 24,959,356 1,480,252
Transfers out to other funds (23,222,184) (2,056,504) (5,349) (25,284,037) (137,965)
Net cash (used in) provided by non-capital financing activities (527,979) (559,235) 762,533 (324,681) 1,342,287
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (20,560,589) (1,234,043) (5,537,034) (27,331,666) (4,516,968)
Proceeds from grants for capital purposes 21,033,477 - 5,804,364 26,837,841 -
Proceeds from sale of assets - 520,641 - 520,641 261,091
Payments on debt (4,075,000) - (75,000) (4,150,000) (427,349)
Interest paid (2,492,721) - (31,452) (2,524,173) (21,362)
Net cash provided by (used in) capital and related financing activities (6,094,833) (713,402) 160,878 (6,647,357) (4,704,588)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 826,751 628,649 938,880 2,394,280 404,773
Net cash (used in) provided by investing activities 826,751 628,649 938,880 2,394,280 404,773
Net increase (decrease) in cash and cash equivalents 13,799,275 (163,785) 443,055 14,078,545 2,004,088
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 25,000,066 1,507,232 523,597 27,030,895 17,507,660
CASH AND CASH EQUIVALENTS AT END OF YEAR 38,799,341$ 1,343,447$ 966,652$ 41,109,440$ 19,511,748$
Reconciliation to Exhibit 8:
Unrestricted cash and cash equivalents 11,761,949$ 1,132,073$ 862,472$ 13,756,494$ 19,761,748$
Restricted cash - current asset 1,893,093 - 104,180 1,997,273 -
Restricted cash - noncurrent asset 25,144,299 211,374 - 25,355,673 -
Total Cash and Cash Equivalents at End of Year 38,799,341$ 1,343,447$ 966,652$ 41,109,440$ 19,761,748$
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) 9,615,357$ 28,976$ (3,485,778)$ 6,158,555$ 1,000,270$
Adjustments to reconcile operating income (loss) to net cash
provided by (used in) operating activities:
Gain on sale of assets - (30,000) - (30,000) -
Depreciation expense 7,715,415 650,784 2,340,657 10,706,856 4,185,046
(Increase) decrease in accounts receivable 466,788 (153,406) 2,094,682 2,408,064 (262,637)
(Increase) decrease in prepaid expenses (390) (727) - (1,117) (7,316)
(Increase) decrease in inventories (32,481) - - (32,481) 224
(Increase) decrease in deferred outflows related to pensions 1,027,761 411,941 53,351 1,493,053 253,278
(Increase) decrease in deferred outflows related to OPEB 89,892 35,997 4,648 130,537 195,558
Increase (decrease) in accounts payable 2,167,273 199,928 (2,283,713) 83,488 (46,414)
Increase (decrease) in claims payable - - - - 443,792
Increase (decrease) in accrued interest payable - - - - 4,528
Increase (decrease) in customer deposits 10,980 - - 10,980 -
Increase (decrease) in compensated absences payable 159,671 (5,301) (7,206) 147,164 23,653
Increase (decrease) in capital lease payable - - (50,732) (50,732) -
Increase (decrease) in post employment benefits liability (2,055,959) (823,112) (106,281) (2,985,352) (495,277)
Increase (decrease) in deferred inflows related to pensions 1,933,139 767,962 99,461 2,800,562 471,434
Increase (decrease) in deferred inflows related to OPEB 1,594,964 638,511 82,445 2,315,920 207,617
Increase (decrease) in net pension obligation (3,097,074) (1,241,350) (160,770) (4,499,194) (762,140)
Total adjustments 9,979,979 451,227 2,066,542 12,497,748 4,211,346
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 19,595,336$ 480,203$ (1,419,236)$ 18,656,303$ 5,211,616$
CITY OF TYLER, TEXAS
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
The notes to the financial statements are an integral part of this statement. 24
EXHIBIT 11
TOTAL
ASSETS
Equity in pooled cash 2,572,310$ 2,837,242$ 5,409,552$
Investments, at fair value
Equities 6,026,623 89,440 6,116,063
Mutual funds 78,021,138 - 78,021,138
Total investments 84,047,761 89,440 84,137,201
Receivables
Contributions receivable 123,849 - 123,849
Interest receivable 14,627 2,200 16,827
Total receivables 138,476 2,200 140,676
Total assets 86,758,547 2,928,882 89,687,429$
LIABILITIES
Accounts payable 844,619 - 844,619
Total liabilities 844,619 - 844,619
NET POSITION
Restricted for OPEB 13,032,059 - 13,032,059
Restricted for pensions 72,675,517 - 72,675,517
Held in trust for other purposes 206,352 2,928,882 3,135,234
Total net position restricted for pension/OPEB benefits and other purposes 85,913,928$ 2,928,882$ 88,842,810$
EMPLOYEE
BENEFIT TRUST
FUNDS
PRIVATE-
PURPOSE TRUST
FUNDS
CITY OF TYLER, TEXAS
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2020
The notes to the financial statements are an integral part of this statement.
25
EXHIBIT 12
TOTAL
ADDITIONS
Contributions:
Employees 1,952,694$ -$ 1,952,694$
Employer 5,991,515 - 5,991,515
Other - 33,000 33,000
Total contributions 7,944,209 33,000 7,977,209
Investment income:
Interest and dividend income 2,506,562 55,453 2,562,015
Net appreciation (depreciation) in fair value of investments 3,448,920 4,487 3,453,407
Less investment expense (234,464) (3,488) (237,952)
Total investment income 5,721,018 56,452 5,777,470
Other income 35,654 - 35,654
Total additions 13,700,881 89,452 13,790,333
DEDUCTIONS
Reimbursement for benefit claims 1,595,263 - 1,595,263
Benefits 7,906,144 - 7,906,144
Total deductions 9,501,407 - 9,501,407
Change in net position 4,199,474 89,452 4,288,926
Net position - beginning of year 81,714,454 2,839,430 84,553,884
Net position - end of year 85,913,928$ 2,928,882$ 88,842,810$
EMPLOYEE
BENEFIT TRUST
FUNDS
PRIVATE-
PURPOSE TRUST
FUNDS
CITY OF TYLER, TEXAS
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The notes to the financial statements are an integral part of this statement.
26
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
28
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General Statement
The City of Tyler, Texas (City) was incorporated January 29, 1850. The City Charter was adopted February 9, 1937. The
City operates under a Council-Manager form of government and provides the following services as authorized by its
charter: public safety (police and fire), highways and streets, health and social services, culture-recreation, public
transportation, public improvements, planning and zoning, and general administrative services.
The accounting and reporting policies of the City relating to the funds included in the accompanying basic financial
statements conform to accounting practices generally accepted in the United States of America applicable to state and
local governments. Generally accepted accounting principles for local governments include those principles prescribed
by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants in
the publication entitled Audits of State and Local Governments Units and by the Financial Accounting Standards Board
(when applicable). The more significant accounting policies of the City are described below.
B. Blended Component Unit
The criteria for including organizations as component units within the City’s reporting entity, as set forth in Section
2100 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards, include whether:
the organization is legally separate (can sue in their own name)
the City holds the corporate powers of the organization.
the City appoints a voting majority of the organization’s board.
the City can impose its will on the organization.
the organization has the potential to impose a financial benefit/burden on the City.
there is fiscal dependency by the organization on the City.
Based upon the aforementioned criteria, the City has two component units.
The Tyler One-Half Cent Sales Tax Corporation, Inc.
The Tyler One-Half Cent Sales Tax Corporation, Inc. was formed in 1996, and is governed by a seven-
member board of directors. Each member of the City Council and the Mayor may nominate one member.
Directors are appointed for a two-year term and are removable by the City Council at any time without cause.
For financial reporting purposes, the Tyler One-Half Cent Sales Tax Corporation, Inc. has been presented as
a blended component unit of the City. It is reported as a Capital Projects Fund, because its purpose is to
account for construction activities funded by the revenues generated by the one-half cent sales tax. The Tyler
One-Half Cent Sales Tax Corporation, Inc. does not issue separate financial statements. The City uses the
proceeds of the one-half cent sales tax to pay for infrastructure, thereby removing the need for debt financing
of such improvements, which has resulted in the elimination of general obligation indebtedness and has enabled
the City to reduce its property tax rate.
Tyler Fire Department Relief and Retirement Fund
The City’s fire department employees participate in the Tyler Fire Department Relief and Retirement Fund
(TFDRRF). TFDRRF functions for the benefit of these employees and is governed by a pension board. The
City and TFDRRF participants are obligated to fund all TFDRRF costs based upon actuarial valuations. The
City is authorized to approve the actuarial assumptions used in the determination of contribution levels. For
financial reporting purposes, TFDRRF is reported if it were a part of the City’s operations as a fiduciary fund,
and therefore is not included in the government wide financial statements. TFDRRF’s fiscal year-end is
December 31 but the information reported corresponds with the City’s September 30, 2020 reporting period.
Financial statements of TFDRRF can be obtained directly from the FIRE Pension Board, 1718 West Houston
St., Tyler, Texas 75702.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
29
C. Government-Wide and Fund Financial Statements
The government-wide financial statements (the statement of net position and the statement of activities) report
information on all the nonfiduciary activities of the primary government. 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 statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program
revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational
or capital requirements of a particular function. Taxes and other items not properly included among program revenues
are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental funds
and major individual enterprise funds are reported as separate columns in the fund financial statements.
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
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 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. Revenues are recognized as soon as they are both measurable and available.
Revenues are available when they are collectible within the current period or soon enough thereafter to pay liabilities
of the current period. For this purpose, the government considers revenues, except grants and similar items, to be
available if they are collected within 60 days of the end of the current fiscal period. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 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.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is susceptible to accrual as revenue of the current period.
All other revenue items are measurable when earned.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The One-Half Cent Sales Tax Fund accounts for the acquisition and construction of major capital facilities
other than those financed by Proprietary Funds and Trust Funds.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
30
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - continued
The government reports the following major proprietary funds:
The Utilities Fund is used to account for sale of water and wastewater treatment by the City to businesses
and residential customers and to surrounding communities.
The Sanitation Fund accounts for residential and commercial solid waste collection, disposal services, and
recycling operations of the City.
The Airport Fund is used to account for operations of the Tyler Pounds Regional Airport.
Additionally, the government reports the following fund types:
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 City on a cost-reimbursement basis.
The City of Tyler reports the following Internal Service Funds:
1. Productivity Improvement Fund – to track performance pay of City employees. This fund accounts for
City University, Lean Six Sigma, and the Internal Audit functions.
2. Fleet Maintenance and Replacement Fund – performs maintenance and repair work on vehicles of all
City departments. The fund also acquires vehicles and equipment for use by all City departments.
3. Property and Liability Insurance Funds – accounts for the City’s property, casualty, liability, disability,
and workers’ compensation insurance programs.
4. Employee Benefits Fund – accounts for the City’s self-insurance program for health and dental insurance
as well as life insurance for current employees.
5. Retiree Benefits Fund – accounts for the City’s self-insurance program for health and dental insurance
as well as life insurance for retired employees.
6. Property and Facility Management Fund – accounts for maintenance on City’s facilities including roof
and HVAC repairs and replacement.
7. Technology Fund – accounts for the City’s investment and maintenance of technology and office
automation.
The City of Tyler reports the following Fiduciary Funds:
The Employee Benefit Trust (Section 125 Plan) Fund is used to account for the resources accumulated and
payments made on behalf of the City employees enrolled in the City’s cafeteria plan administered by Health
First.
The OPEB Trust Fund is used to account for the resources accumulated to meet ARC (annual required
contributions) and long-term liability requirements associated with administering post-employment health,
dental and life benefits for retired employees in accordance with GASB 43 and 45.
The Tyler Fire Department Relief and Retirement Fund is used to account for the resources accumulated to
be used for the retirement benefits payments to the members of the fund.
The Greenwood Landfill Private-Purpose Trust Fund is used to accumulate resources held in trust for Allied
Waste Management and is used for closure and post-closure expenses of the Greenwood Landfill.
The Lindsey Trust Fund is used to account for the endowment fund created for the charitable purpose of
making awards to police officers and firefighters employed by the City of Tyler for outstanding service and
providing aid to those injured in the line of duty.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
31
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – continued
Generally, the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to the general rule are payments-in-lieu of taxes and other charges between the government’s water utilities
function and various other functions. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
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, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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 City’s enterprise funds and of the internal
service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion
of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expense, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When more than one classification of fund balance is available for use, it is the government’s policy to use the most
restricted resources first.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1. Equity in Pooled Cash and Investments
The City classifies certain cash, investments, due to, and due from accounts into "equity in pooled cash and
investments." Each fund participates on a daily transaction basis and income for all assets included in "pooled
cash and investments" is allocated to individual funds based on their respective balance in "equity in pooled
cash and investments."
For the statements of cash flows for the Proprietary and Internal Service Funds, the City considers all assets
included in "equity in pooled cash and investments" to be "cash and cash equivalents."
2. Investments
Accounting pronouncement Governmental Accounting Standards Board Statement 31, Accounting and
Financial Reporting for Certain Investments and for External Investment Pools, is applied to investments in
external investment pools, investments purchased with maturities greater than one-year, mutual funds, and
certain investment agreements. Generally, governmental entities are required to report the "fair value" changes
for these investments at year-end and record these gains or losses on their income statement. Investments with
maturities less than one year at the time of purchase are stated at cost or amortized cost. The fair value of the
City’s position in these investment pools is the same as the value of the pool shares.
Methods and Assumptions used to Estimate Fair Value
The City maintains investment accounting records and adjusts those records to "fair value" on an annual basis.
This information is provided by the City’s investment custodian. The investments held by the City are widely
traded in the financial markets and trading values are readily available from numerous published sources.
Material unrealized gains and losses are recorded on an annual basis and the carrying value of its investments
is considered "fair value".
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
32
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
Consistent with Governmental Accounting Standards Board Statement 42, Fair Value Measurement and
Application, the City categorizes its fair value measurements within the fair value hierarchy. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in
active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are
significant unobservable inputs. A detail of the fair value hierarchy of investments held by the City is disclosed
in Note 4 to the financial statements.
Investment Pools
The City holds investments in an external investment pool, TexPool.
Texas Local Government Investment Pool (TexPool) was created by the Texas Treasury Safekeeping Trust
Company, which was authorized by the Texas Legislature in 1986. Only local governments having contracted
to participate in TexPool have an undivided beneficial interest in its pool of assets. TexPool does not place
any restrictions such as notice periods or maximum transaction amounts. TexPool is not registered with the
Securities and Exchange Commission as an investment company but is subject to annual review by an
independent auditor consistent with the Public Funds Investment Act. Audited financial statements of the
Pool are available by request at www.texpool.com.
The investment pool carries investments at amortized cost as the pool meets the requirements of Governmental
Accounting Standards Board Statement 79, Certain External Investment Pools and Pool Participants. The
investment pool is priced daily and compared to carrying value. If the ratio of the fair value of the portfolio of
investments to the carrying value of investments is less than .995 or greater than 1.005, the investment pool
will sell investment securities, as required, to maintain the ratio at a point between .995 and 1.005.
Other
State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds,
and repurchase agreements. The City is authorized by its governing board to invest in the obligations of the
United States government, bonds guaranteed by the United States government, certificates of deposit at financial
institutions, local government investment pools, direct obligations of the State of Texas, no load government
money market mutual funds, and repurchase agreements. Investments are stated at cost or amortized cost.
3. 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” (the current portion of interfund loans) or “advances
to/from other funds” (the non-current portion of interfund loans). All other outstanding balances between funds
are reported as “due to/from other funds.” Any residual balances outstanding between the governmental
activities and business-type activities are reported in the government-wide financial statements as “internal
balances.”
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
33
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
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 for appropriation and are not
expendable available financial resources.
The City provides an allowance for doubtful accounts based upon the anticipated collectability of each specific
account, as determined by experience. All receivables are shown net of this allowance. A detailed schedule of
receivables can be found at Note 4B.
Property taxes are levied October 1 on the assessed value of property at January 1 and are due by January 31 of
the following year. Unpaid taxes attach as an enforceable lien on property as of January 31. Revenue from taxes
assessed is recorded as unavailable revenue on October 1. The unavailable revenue from taxes is then recognized
as revenue during the year as the taxes are received. All delinquent property taxes receivables are assets of the
General Fund.
The City Charter limits the City's ad valorem tax rate to $1.75 per $100 of assessed valuation. The tax rate for
the year ended September 30, 2020, was $.25990 per $100, which means that the City has a tax margin of
$1.4901 per $100 and could raise up to $135,041,324 additional taxes a year from the present valuation of
$9,062,567,868 before the limit is reached.
4. Inventories and Prepaid Items
Inventories of materials and supplies are accounted for using the consumption method. Under the consumption
method, inventories are recorded as expenditures when they are used with significant amounts on hand reported
on the balance sheet at average cost.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid in
both the government-wide and fund financial statements. Prepaid items are accounted for using the consumption
method.
In Governmental Funds, reported inventories and prepaid items do not represent available spendable resources
and are, therefore, equally offset by a non-spendable fund balance account.
5. Due from Other Funds
Current portions of long-term interfund loans receivable (reported in "Due from" asset accounts) are considered
"available spendable resources."
6. 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 columns
in the government-wide financial statements. Capital assets are defined by the government as assets with an
initial, individual cost of more than $3,000 (amount not rounded) and an estimated life in excess of two years.
Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets
lives are not capitalized. Donated capital assets are recorded at acquisition value. Infrastructure assets are
reported retroactively based on estimated historical cost.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred
during the construction phase of capital assets of business-type activities is included as part of the capitalized
value of the assets constructed.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
34
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
Property, plant, and equipment of the primary government, as well as the component units, is depreciated using
the straight-line method over the following estimated useful lives:
Assets Years
Buildings 50
Building improvements 10 to 20
Improvements other than buildings 10 to 50
Public domain infrastructure 15 to 50
Heavy equipment 7 to 10
Small equipment 3 to 7
Vehicles 3 to 5
Computer and other electronic equipment 3 to 5
Office equipment 3
7. Construction-in-Progress
Expenditures on incomplete capital projects have been capitalized as construction-in-progress. The assets
resulting from these projects will be transferred from the construction-in-progress accounts to the appropriate
asset account as the projects are completed.
8. Restricted Assets
Certain proceeds of the City’s enterprise fund revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because they are maintained in separate
bank accounts and their use is limited by applicable bond covenants. The Utilities Fund is used to report
those proceeds of revenue bond issuances that are restricted for use in water and sewer projects. The Utilities
Fund is also used to segregate resources accumulated for debt service payments over the life of the bonds.
The City also classifies other cash and cash equivalents as restricted because of the restrictions due to
enabling legislation and trust agreements established to govern the spending of funds for the permanent care
of the City’s cemeteries.
9. Compensated Absences
Non-Civil Service Employees
Full-time, permanent, non-civil service employees earn paid time off (PTO), which may be used as vacation,
sick time or personal time. The PTO is accrued in hourly increments at the end of each pay period. The total
amounts accrued annually depend on the number of years of service with the City. Maximums are from 18 to
24 days. All existing non-civil service employees at January 1, 1999, with accumulated vacation and sick time,
were allowed to carryover accrued vacation into the PTO program at a maximum of 240 hours. The employees
with accrued sick time could carryover up to 720 hours, only to be paid after 10 years of service. The employees
eligible to receive accrued sick leave balance upon termination would be paid at the pay rate applicable when
the PTO program was implemented.
Any non-civil service employees hired after January 1, 1999 were enrolled into the PTO program and may only
carryover 30 days of PTO per year. Any amount accrued above the 30 days carryover is lost as of December 31
of that year. Unused PTO up to 30 days will be paid to the employee upon termination at employee’s current
pay rate.
Civil Service Employees
Civil service employees are granted vacation and sick time benefits in varying amounts to specified maximums
depending on tenure with the City. Civil service employees are 100% vested in both sick time and vacation time
at the start of their employment.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
35
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
Civil and Non-Civil Service Employees
Vested or accumulated vacation leave is recorded as an expense and a liability, as the benefits accrue to
employees, in the government-wide, proprietary, and fiduciary fund financial statements. In accordance with
the provisions of Governmental Accounting Standards Board Statement No.16, “Accounting For Compensated
Absences,” no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. However, a
liability is recognized for that portion of cumulative sick leave benefits that it is estimated will be taken as
“terminal leave” prior to retirement.
10. 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 applicable governmental activities,
business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported
net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred.
11. Bond Premiums, Discounts, and Issuance Costs
Bond premiums in enterprise funds are amortized over the term of the bonds using the effective interest
amortization method. Gains or losses on enterprise fund refundings are reported as deferred inflows or outflows
and are amortized over the term of the lessor of the new bonds or the refunded bonds using the effective interest
method. Debt issuance costs are recognized as expenditures/expenses when incurred.
12. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents
a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow
of resources (expense/expenditure) until then. The City’s deferred charge on refunding reported in the
government-wide statement of net position and the proprietary funds statement of net position qualifies for
reporting in this category. A deferred charge on refunding results from the difference in the carrying value
of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the
life of the refunded or refunding debt. The City also has deferred outflows related to pension and other
postemployment benefit activities that are reported in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has one type of item, which arises only under a
modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report
unavailable revenues from three sources: property taxes, fines, and permits. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available. The City also has
deferred inflows related to pension and other postemployment benefit activities that are reported in this
category.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
36
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
13. Fund Equity
In the fund financial statements, governmental funds report fund balance categorized as non-spendable,
restricted, committed, assigned or unassigned.
Non-spendable fund balance – represents amounts that cannot be spent because they are either not in spendable
form (such as inventory or prepaid items) or legally required to remain intact (such as notes receivables or
principal of a permanent fund).
Restricted fund balance – represents amounts with external constraints placed on the use of these resources
(such as debt covenants, grantors, other governments, etc.) or imposed by enabling legislation.
Committed fund balance – represents amounts that can only be used for specific purposes imposed by an
ordinance of the City’s highest level of decision-making authority, the City Council. Committed resources
cannot be used for any other purpose unless the City Council removes or changes the specified use by the same
type of action previously used to commit those amounts.
Assigned fund balance – represents amounts the City intends to use for the specific purpose as expressed by the
City Council. The City Council may also assign fund balance when appropriating fund balance to cover a gap
between estimated revenues and appropriations in the subsequent year’s appropriated budget. The amount
reflected in the financial statements has been assigned for the purpose intended by the City Council.
Unassigned fund balance – represents the residual classification for the general fund or deficit balances in other
funds.
The City’s minimum fund balance policy requires that fund balance shall be maintained at a level of 15 percent
of estimated annual operating expenditures for the General Fund and at 15 percent of estimated annual operating
expenses in the Utility Fund and Solid Waste Fund.
When an expenditure is incurred for a purpose for which more than one fund balance classification could be
used, the City considers the expenditure to be made from the most restrictive classification first.
14. Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred
inflows of resources. Net invested in capital assets consists of the City’s capital assets, net of accumulated
depreciation, reduced by any outstanding debt used for the acquisition or construction of those assets less
unspent cash acquired through debt at year-end. Net position reported as restricted are those amounts which
have limitations imposed by creditors, grantors or other laws and regulations. The government-wide statement
of net position reports $63,649,866 of restricted net position, of which $13,476,826 is restricted by enabling
legislation.
15. Tax Abatements
The City has evaluated the total tax abatements issued for the year and has determined that the amount is not
material to the financial statements.
16. Pensions and Other Post-Employment Benefits
For purposes of measuring the net pension and OPEB liabilities, deferred outflows of resources and deferred
inflows of resources related to pension and OPEB, and pension and OPEB expense, information about the
fiduciary net position of the City’s retirement and OPEB plan and additions to/deductions from the plans’
fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
37
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
For the fiscal year ending September 30, 2020, the City recognized total pension expense of $11,710,097,
$7,088,288 of which was for the TMRS Plan and $4,621,809 for the TFDRRF Plan. For the fiscal year ending
September 30, 2020, the City recognized total OPEB expense of $702,855, $456,171 of which was for the
Health Plan and $246,684 for the TMRS Supplemental Death Benefit Plan.
17. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows
of resources, liabilities, and deferred inflows of resources at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
18. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure
of monies are recorded to reserve that portion of the applicable appropriation, is employed in Governmental
Funds. However, encumbrances in the Governmental Funds lapse at the end of each year and are re-budgeted
during the next fiscal year.
Encumbrance accounting is also employed by Proprietary Funds for management control purposes.
Encumbrances outstanding at year-end are not reported as restrictions of net position nor have they been
included as expenses or liabilities of Proprietary Funds.
19. Future Implementation of New Standards
In January 2017, the GASB issued Statement No. 84, Fiduciary Activities, which will enhance consistency
and comparability by establishing specific criteria for identifying activities that should be reported as
fiduciary activities and clarifying whether and how business-type activities should report their fiduciary
activities. This statement is effective for reporting periods beginning after December 15, 2019. The City is
evaluating the impact of this statement on the City’s financial statements.
In June 2017, the GASB issued Statement No. 87, Leases, which will increase the usefulness of governments’
financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will
enhance comparability of financial statements among governments by requiring lessees and lessors to report
leases under a single model. This statement also will enhance the decision-usefulness of the information
provided to financial statement users by requiring notes to financial statements related to the timing,
significance, and purpose of a government’s leasing arrangements. This statement is effective for reporting
periods beginning after June 15, 2021. The City is evaluating the impact of this statement on the City’s
financial statements.
In June 2018, GASB issued Statement No. 89 Accounting for Interest Cost Incurred before the End of a
Construction Period which will (1) enhance the relevance and comparability of information about capital
assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred
before the end of a construction period. This statement establishes accounting requirements for interest cost
incurred before the end of a construction period by requiring that interest costs incurred before the end of a
construction period be recognized as an expense in the period in which the cost is incurred for financial
statements prepared using the economic resources measurement focus. As a result, interest cost incurred
before the end of a construction period will not be included in the cost of a capital asset reported in a business-
type activity or enterprise fund. This statement is effective for reporting periods beginning after December
15, 2020. The City is evaluating the impact of this statement on its financial statements.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
38
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity – continued
In August 2018, GASB issued Statement No. 90 Majority Equity Interests – An Amendment of GASB
Statements No. 14 and No. 61 which will improve the consistency and comparability of reporting the
government’s majority equity interest in a legally separate organization and to improve the relevance of
financial statement information for certain component units. The requirements of this statement are effective
for reporting periods beginning after December 15, 2019. The City is evaluating the impact of this statement
on its financial statements.
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment
of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32, which will (1) increase
consistency and comparability related to the reporting of fiduciary component units in circumstances in which
the potential component unit does not have a governing board and the primary government performs the
duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of
certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans,
and employee benefit plans other than pension plans or OPEB plans as fiduciary component units in fiduciary
financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and
financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457
plans) that meet the definition of a pension plan for benefits provided through those plans. This statement is
effective for reporting periods beginning after June 15, 2021. The City is evaluating the impact of this
statement on its financial statements.
NOTE 2: RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental fund balance sheet and the government-wide
statement of net assets
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net
assets – governmental activities as reported in the government-wide statement of net position. One element of that
reconciliation states that “Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred in the funds.” The details of this $12,947,776 difference are as follows:
Another element of that reconciliation explains “long-term liabilities, including bonds payable, are not due and payable
in the current period and therefore are not reported in the funds.” The details of this $(12,346,017) difference are as
follows:
Unavailable property tax revenues 607,738$
Unavailable fines 12,299,925
Unavailable permits 40,113
Net adjustment to increase fund balance - total governmental funds
to arrive at net position - governmental activities 12,947,776$
Claims and judgements (100,000)$
Capital leases (532,936)
Compensated absences (11,713,081)
Net adjustment to reduce fund balance - total governmental funds
to arrive at net position - governmental activities (12,346,017)$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
39
B.Explanation of certain differences between the governmental fund statement of revenues, expenditures, and
changes in fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances – total governmental funds and changes in net assets of governmental activities as
reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental
funds report capital outlays as expenditures”. However, in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense. The details of this $6,258,299 difference are as
follows:
NOTE 3: STEWARDSHIP, COMPLIANCE, AND ACCOUNTIBILITY
A.Budgetary Information
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. After August 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the means of
financing them.
2.Public hearings are conducted in Council chambers at City Hall to obtain taxpayer comments.
3.Prior to October 1, the budget is legally enacted through passage of an ordinance.
4.Budgetary control is established at the fund level. The City Manager is authorized to transfer budgeted amounts
between departments within any fund; however, any revisions that alter the total expenditures of any fund must
be approved by the City Council. The City Charter prohibits budgeting total proposed expenditures in excess of
total anticipated revenues and any unencumbered funds from prior years; therefore, expenditures may not
legally exceed revenues and unencumbered fund balances from prior years for each fund.
5.Formal budgetary integration is employed as a management control device during the year for the General Fund,
certain Special Revenue Funds (Police Forfeiture Fund, Court Special Fee Fund, Hotel-Motel Occupancy Tax
Fund, PEG Fee Fund, Homeownership and Housing Fund, CDBG Fund, Home Grant Fund, Housing Assistance
Payment Fund, Transit System Fund, TIF/TIRZ #3 Fund, Economic Development Fund, TIF/TIRZ #4 Fund,
Tourism & Convention Fund, Airport Passenger Facility Fund, Rainy Day Fund, Fair Plaza Fund, Grant Fund),
Capital Projects Fund, all Enterprise Funds, all Internal Service Funds and Permanent Funds.
Budgets for the General Fund, certain Special Revenue Funds (Police Forfeiture Fund, Court Special Fee Fund,
Hotel-Motel Occupancy Tax Fund, PEG Fee Fund, Homeownership and Housing Fund, CDBG Fund, Home
Grant Fund, Housing Assistance Payment Fund, Transit System Fund, TIF/TIRZ #3 Fund, Economic
Development Fund, TIF/TIRZ #4 Fund, Tourism & Convention Fund, Airport Passenger Facility Fund, Rainy
Day Fund, Fair Plaza Fund, Grant Fund), Capital Projects Fund and Permanent Funds are adopted by the
Council and presented in this report on a basis consistent with generally accepted accounting principles (GAAP).
Budgeted expenditures for the General Fund's current fiscal year as adopted in the original budget and
amendments thereto were $73,357,432. Appropriations, which are not expended or encumbered at year-end,
must be re-budgeted in the succeeding year.
Capital outlay 19,373,019$
Depreciation expense (13,114,720)
Net adjustment to increase net changes in fund balance - total
governmental funds to arrive at changes in position - governmental
activities 6,258,299$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
40
A. Budgetary Information – continued
6. Budgets for Proprietary Funds are adopted on a basis consistent with GAAP (accrual basis) except that for
budgetary comparisons capital outlay items are expensed, accrual for compensated absences is excluded, and
principal payments on debt are treated as expenses. The budgetary comparisons for Proprietary Funds are on
this non-GAAP budgetary basis.
B. Expenditures Over Appropriations
For the year ended September 30, 2020, neither the general fund nor any major special revenue fund had expenditures in
excess of appropriations.
C. Deficit Fund Equity
As of September 30, 2020, no funds had a deficit in net position.
NOTE 4: DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
Statutes authorize the City to invest in obligations of the U.S. Treasury and U.S. Agencies, municipal bonds, and managed
public funds investment pools. The City's cash and investments for the year ended September 30, 2020, are as follows:
Custodial Credit Risk – Deposits – At September 30, 2020, the City held several bank accounts, including a NOW interest
bearing account, at one financial institution. The City’s account balances, less outstanding checks and deposits totaled
$40,282,381 and the bank balances totaled $40,599,528. All bank balances not covered by federal depository insurance,
were covered by collateral held in the pledging financial institutions’ trust department in the City’s name. In accordance
with the City’s deposit and investment policy, all deposits placed at a financial institution shall be insured or collateralized
in compliance with applicable State law. The City requires fair value of pledged securities in excess of 102% of all
uninsured deposits.
Statement of net position:
Primary Government
Cash and cash equivalents 58,476,791$
Temporarily restricted cash and cash equivalents 24,641,821
Permanently restricted cash and cash equivalents 28,447,837
Fiduciary Funds
Cash and cash equivalents 5,409,552
Investments 84,137,201
Total Cash and Investments 201,113,202$
Cash on hand 13,032$
Savings and checking accounts 40,282,381
Cash and cash equivalents held in investment accounts 1,547,968
Investments 159,269,821
Total Cash and Investments 201,113,202$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
41
A. Deposits and Investments – continued
Investments are stated at fair value or amortized costs, which approximates fair value. As of September 30, 2020,
the City had the following investments:
Interest Risk Rate – This is the risk that changes in market risk rates will adversely affect the fair value of an investment.
Investments with interest rates that are fixed for longer periods of time are more likely to be subject to increased variability
in their fair values due to changes in the market interest rates. The City, in compliance with its investment policy adopted
by the City Council, invests in shorter-term securities to protect market valuation from unanticipated rate movements. In
addition, the City will not directly invest in securities maturing more than two years from the date of purchase.
Credit Risk – This is the risk that an issuer or other counterparty of a debt type investment will not fulfill its obligation
to the holder of the investment. The City’s investment policy requires the City to invest in U.S. Treasury and Agency
securities along with Texas Local Government Pool (TexPool) investments. In addition, the City’s investment policy
requires approved broker/dealer meeting strict qualification.
Concentration of Credit Risk – This is the risk of loss attributed to the magnitude of a government’s investment in a
single issuer. The City’s attempts to avoid over-investment in local government pools and matches a portion of its
investments with anticipated cash flow requirements.
Custodial Credit Risk – This custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities
that are in the possession of an outside party. As noted previously, the City requires fair value of pledged securities in
excess of 102% of all uninsured deposits.
Foreign Currency Risk – This is the risk that exchange rates will adversely affect the fair value of an investment. At year-
end, the City was not exposed to foreign currency risk.
Weighted Average
Investment Type Fair Value Maturity (Years) Credit Risk
Primary Government
Certificates of deposit 74,916,665$ 0.97 N/A
Texpool 215,955 0.10 AAAm
Total Primary Government 75,132,620
Fiduciary Funds
Equities 6,116,063 N/A N/A
Mutual Funds 78,021,138 N/A N/A
Total Fiduciary Funds 84,137,201
Total Reporting Entity 159,269,821$
Portfolio weighted average maturity (years) 0.96
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
42
A. Deposits and Investments – continued
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets, level 2 inputs are significant other observable inputs, and
level 3 inputs are significant unobservable inputs.
A summary of the City’s investments under the requirements of the fair value hierarchy as of September 30, 2020 are as
follows:
B. Receivables
Receivables as of year-end for the City’s individual major funds and nonmajor, internal service and fiduciary funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
C. Lindsey Trust Fund
The S.A. Lindsey Police and Firemen’s Trust was created by Louise Lindsey Merrick on July 20, 1971 for the
charitable purpose of making awards to police officers and firefighters employed by the City of Tyler for outstanding
service and to aid those and their families injured in the line of duty. The S.A. Lindsey Police and Fireman’s Trust
was terminated by court order on September 24, 2007, on the petition of the Trustee, Bank of America, due to new
legislation making continuation of the trust economically infeasible.
Level 1 Level 2 Level 3 Total
Primary Government:
Certificates of Deposit -$ 74,916,665$ -$ 74,916,665$
Texas Government Investment Pool - 215,955 - 215,955
Total Primary Government - 75,132,620 - 75,132,620
Fiduciary Funds:
Equities 6,116,063 - - 6,116,063
Mutual Funds 78,021,138 - - 78,021,138
Total Fiduciary Funds 84,137,201 - - 84,137,201
Total Reporting Entity 84,137,201$ 75,132,620$ -$ 159,269,821$
Assets at Fair Value as of September 30, 2020
One-Half Cent Non-Major Internal
General Sales Tax Utilities Sanitation Airport Governmental Service
Receivables:Fund Fund Fund Fund Fund Funds Funds Total
Accounts 19,834,881$ -$ 6,170,975$ 2,448,280$ 240,594$ 390,204$ 321,345$ 29,406,279$
Grants 4,738,572 - - - - 1,619,878 - 6,358,450
Taxes 8,362,126 2,672,157 - - - - - 11,034,283
Miscellaneous 15,889 15,526 - - - - - 31,415
Gross receivables 32,951,468 2,687,683 6,170,975 2,448,280 240,594 2,010,082 321,345 46,830,427
Less: Allowance for
uncollectibles (7,281,492) - (198,805) (62,251) - - - (7,542,548)
Net total receivables 25,669,976$ 2,687,683$ 5,972,170$ 2,386,029$ 240,594$ 2,010,082$ 321,345$ 39,287,879$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
43
C. Lindsey Trust Fund – continued
As a result, the Lindsey Police and Firemen’s Board contracted with the East Texas Communities Foundation to
receive and manage the assets distributed from the termination of the S.A. Lindsey Police and Firemen’s Trust, to
create an Endowment Fund, to be known as the Lindsey Police and Firemen’s Endowment Fund (Fund), designed to
meet the primary purposes outlined in the originating trust document. The Lindsey Trust Fund was created to account
for this Fund, as reflected in the Private-Purpose Trust Funds Combining Statement of Net Position and Combining
Statement of Changes in Net Position, schedules E-3 and E-4 in the additional supplemental information.
The Fund is defined as a Permanent Endowment. The permanent portion or corpus of the Fund is $25,000, with the
remaining amount of the Fund considered net appreciation. Under the terms of the endowment, and consistent with
State statutes, distributions from the Fund are to be made from the net appreciation so that the corpus of the fund will
not be exhausted or depleted. Distributions may only be made to the City of Tyler, Texas. Ordinary distributions to
the City of Tyler shall be made from the Fund once per calendar year in the amount requested by the City of Tyler up
to a cumulative limit of five percent (5%) of the value of the Fund determined as of the preceding December 31. Any
portion of the net appreciation available for distribution which is not withdrawn by the City of Tyler in one year may
be withdrawn in a subsequent year. No additional distributions shall be made from the Fund. To the extent possible,
the Donor intends to preserve the permanent portion or corpus of the Fund by limiting distributions to 5% per year.
At September 30, 2020, the net appreciation on investments of the Fund was $4,486.
Because the Lindsey Police and Firefighters’ Endowment Fund is separately organized and managed by contract with
an investment company as directed by the Lindsey Police and Firefighters’ Fund Board, it is excluded from the City
of Tyler’s Investment Fund policy.
D. Capital Assets
Governmental and business-type capital asset activity for the year ended September 30, 2020 was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Governmental activities:
Capital assets, not being depreciated:
Land 18,243,886$ 37,675$ (597,177)$ $ 17,684,384
Construction in progress 17,083,944 11,494,290 (8,131,054) 20,447,180
Total capital assets, not being depreciated 35,327,830 11,531,965 (8,728,231) 38,131,564
Capital assets, being depreciated:
Buildings 59,886,095 594,539 - 60,480,634
Improvements other than buildings 111,113,749 14,320,577 - 125,434,326
Machinery and equipment 74,780,967 6,537,372 (4,855,514) 76,462,825
Infrastructure 355,640,133 30,860 - 355,670,993
Total capital assets being depreciated 601,420,944 21,483,348 (4,855,514) 618,048,778
Less accumulated depreciation for:
Buildings (23,904,879) (1,898,905) - (25,803,784)
Improvements other than buildings (78,061,236) (2,030,524) - (80,091,760)
Machinery and equipment (55,089,067) (5,295,368) 4,359,109 (56,025,326)
Infrastructure (220,395,824) (8,074,969) - (228,470,793)
Total accumulated depreciation (377,451,006) (17,299,766) 4,359,109 (390,391,663)
Total capital assets, being depreciated, net 223,969,938 4,183,582 (496,405) 227,657,115
Governmental activities capital assets, net $ 259,297,768 $ 15,715,547 $ (9,224,636) $ 265,788,679
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
44
D. Capital Assets – continued
Depreciation expense was charged to functions/programs of the City as follows:
Water Rights
In 1965, the City purchased the right to 40% of the perpetual annual water yield of Lake Palestine from the Upper
Neches River Municipal Water Authority for $12,524,200. At September 30, 2020, total water rights were
$12,526,700. Management believes there is no impairment in the value of the water rights at September 30, 2020.
Beginning
Balance Increases Decreases
Ending
Balance
Business-type activities:
Capital assets, not being depreciated:
Land 11,412,159$ 380,750$ -$ $ 11,792,909
Water rights 12,526,700 - - 12,526,700
Construction in progress 26,846,559 7,107,791 (6,792,121) 27,162,229
Total capital assets, not being depreciated 50,785,418 7,488,541 (6,792,121) 51,481,838
Capital assets, being depreciated:
Buildings 63,471,224 61,019 (32,024) 63,500,219
Improvements other than buildings 305,671,641 24,703,274 (161,017) 330,213,898
Machinery and equipment 14,916,459 1,881,977 (935,678) 15,862,758
Infrastructure 20,751,447 - - 20,751,447
Total capital assets being depreciated 404,810,771 26,646,270 (1,128,719) 430,328,322
Less accumulated depreciation for:
Buildings (34,389,211) (1,493,159) 32,025 (35,850,345)
Improvements other than buildings (126,881,030) (7,460,977) 161,016 (134,180,991)
Machinery and equipment (9,332,520) (1,264,094) 548,904 (10,047,710)
Infrastructure (3,380,199) (488,626) - (3,868,825)
Total accumulated depreciation (173,982,960) (10,706,856) 741,945 (183,947,871)
Total capital assets, being depreciated, net 230,827,811 15,939,414 (386,774) 246,380,451
Business-type activities capital assets, net $ 281,613,229 $ 23,427,955 $ (7,178,895) $ 297,862,289
Governmental activities:
General Government 760,456$
Public Safety 2,120,285
Highways and streets, including depreciation of general infrastructure assets 8,546,859
Public Services 697,421
Culture and recreation 989,700
Capital assets held by the government's internal service funds are charged to
the various functions based on their usage of the assets 4,185,045
Total depreciation expense - governmental activities 17,299,766$
Business-type activities:
Utilities 7,715,415$
Sanitation 650,784
Airport 2,340,657
Total depreciation expense - business-type activities 10,706,856$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
45
D. Capital Assets – continued
Construction Commitments
As of September 30, 2020, the City has active construction projects. The projects include street construction, a parking
garage, CDBG projects, and sanitation and waterline additions. At year-end the City’s commitments with contractors
are as follows:
The above projects are funded by resources held in the One-Half Cent Sales Tax Fund, water and sewer revenue bonds,
and grant funding.
E. Interfund Receivables, Payables, and Transfers
The interfund balance in the General Fund resulted from overdrafts in the City’s pooled cash accounts that were funded
by the Utility Fund.
The composition of interfund balances as of September 30, 2020, is as follows:
Interfund transfers are made in accordance with the City’s adopted budget or through approvals to meet unexpected
operating needs.
The composition of interfund transfers as of September 30, 2020, is as follows:
Estimated
Remaining
Project Spent-to-Date Commitment
Hidden Palace Construction 328,954$ 106,521$
Woldert Park ADA Renovation 284,811 152,363
Fun Forest ADA Renovation 447,230 49,920
Brynmar Court Drainage Improvements 400,211 27,055
Robert E Lee Drive Drainage Improvements 399,000 603,871
Martin Luther King, Jr Blvd Improvements 110,722 1,417,774
2020 Asphalt Enhancement (Overlay) 124,939 2,969,251
Receivable Fund Payable Fund Amount
Utilities Fund General Fund 2,719,682$
Nonmajor Airport Sanitation Internal
General Governmental Enterprise Enterprise Service
Fund Funds Funds Funds Funds Total
Transfers Out:
General Fund -$ 1,873,102$ -$ -$ 1,305,006$ 3,178,108$
One-Half Cent Sales Tax Fund - - 654,215 - - 654,215
Nonmajor Governmental Funds 1,833,500 - 113,667 - 27,637 1,974,804
Utilities Enterprise Funds - 220,680 - - 307,299 527,979
Airport Enterprise Funds - - - - 5,349 5,349
Sanitation Enterprise Funds - 612,239 - - 84,961 697,200
Interal Service Funds - - - 137,965 - 137,965
Totals 1,833,500$ 2,706,021$ 767,882$ 137,965$ 1,730,252$ 7,175,620$
Transfer In
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
46
F. Leases
Operating Leases
The City leases various types of equipment under annual cancelable (termination clause) operating leases. The
combined annual expenditures for operating leases during the fiscal year ended September 30, 2020 were
approximately $614,196.
Capital Leases
The City has entered into various lease agreements as the lessee for financing the acquisition of a telephone system,
fire trucks, radio equipment and multiple computer and copier purchases. The lease agreements qualify as capital
leases for accounting purposes, the assets acquired through the capital leases are as follows:
The future minimum lease obligations as of September 30, 2020, were as follows:
G. Long-term debt
Revenue Bonds
The City issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt
service. The revenue bonds issued by the City in prior years were to fund construction projects to improve or expand
the water system and to refund prior issuances. The original amount of the outstanding revenue bonds was $95,505,000
with maturities ranging from 2027 to 2040.
Governmental
Activities
Asset:
Machinery and equipment 15,463,872$
Less: Accumulated depreciation (15,433,509)
30,363$
Year ending Governmental
September 30 Activities
2021 752,316$
2022 336,580
2023 249,048
2024 157,995
2025 62,254
Thereafter -
Total amount of minimum lease payments 1,558,193
Less: amount representing interest (74,692)
Present value of minimum lease payments 1,483,501$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
47
G. Long-term debt – continued
Revenue bonds currently outstanding are as follows:
Annual debt service requirements to maturity for revenue bonds are as follows:
Cash in the amount of $1,893,093 is restricted at September 30, 2020 in order to fund the City’s annual debt service
requirements, to meet the debt service reserve fund requirements of bond covenants and for construction costs in
connection with the 2013 Customer Facility Charge Bonds. Revenue bonds are subject to the provisions of the Internal
Revenue Code of 1986 related to arbitrage and interest tax regulations under these provisions.
Issue Purpose Interest Rates Amount
Series 2012 Water and sewer refunding 1.50 to 2.625% 910,000
Series 2013 Customer facilty use 3.76% 710,000
Series 2015A Water refunding and improvements 2.00 to 4.00% 7,075,000
Series 2015B Water and sewer refunding 2.00 to 5.00% 13,660,000
Series 2017A Water and sewer refunding 3.00 to 4.00% 3,450,000
Series 2017B Water and sewer refunding 2.00 to 3.50% 7,950,000
Series 2018A Water and sewer revenue 3.00 to 4.00% 7,910,000
Series 2018B Water and sewer revenue 3.00% 7,440,000
Series 2019 Water and sewer revenue 2.00 to 5.00% 19,485,000
Series 2020 Water and sewer revenue 2.00 to 3.00% 5,055,000
Total outstanding bonds 73,645,000$
Year ending
September 30 Principal Interest Total
2021 3,580,000$ 2,578,476$ 6,158,476$
2022 4,335,000 2,463,087 6,798,087
2023 4,525,000 2,318,079 6,843,079
2024 4,665,000 2,166,933 6,831,933
2025 4,830,000 2,009,247 6,839,247
2026-2030 25,145,000 7,100,986 32,245,986
2031-2035 13,505,000 3,219,894 16,724,894
2036-2040 5,225,000 1,577,769 6,802,769
Thereafter 7,835,000 1,205,175 9,040,175
73,645,000$ 24,639,646$ 98,284,646$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
48
G. Long-term debt – continued
Changes in long-term liabilities
Long-term liability activity for the year ended September 30, 2020, was as follows:
The liabilities listed above for claims and judgments, net pension obligation, compensated absences, and contracts
payable will be liquidated by the City’s General and Proprietary Funds. The liability for capital leases will be
liquidated by the General and Technology Funds.
The City has defeased certain bonds by placing the proceeds of new bond issues in an irrevocable trust for all future
debt service payments on the old bonds. Accordingly, the trust account assets and liability for the defeased bonds are
not included in the City's financial statements. The 2017A Series bonds were issued to refund the remaining portion
of the 2008 Series bonds and resulted in a $80,000 reduction in the City’s debt service fund. The 2017B Series bonds
were issued to retire the 2009 Series bonds and this issue resulted in an economic gain $286,681 to the City and the
debt service fund was reduced by $273,921 as a result of the issuance of these bonds. The 2020A Series bonds were
issued to retire the 2011 Series bond, which resulted in the City’s debt service fund being reduced by $395,000. At
September 30, 2020, $23,895,000 of bonds outstanding are considered defeased. The issues and amounts of
outstanding defeased bonds are as follows:
Beginning Ending
Balance Balance Due Within Due in More
10/1/2019 Additions Reductions 9/30/2020 One Year Than One Year
Governmental Activities:
Claims and judgements 100,000$ -$ -$ 100,000$ 100,000$ -$
Capital leases 1,733,492 451,473 563,464 1,621,501 770,119 851,382
Net pension liability 80,586,815 - 16,223,161 64,363,654 - 64,363,654
Net OPEB liability 20,754,950 - 789,766 19,965,184 - 19,965,184
Compensated absences 11,325,642 578,905 - 11,904,547 508,245 11,396,302
Governmental activities
Long-term liabilities 114,500,899$ 1,030,378$ 17,576,391$ 97,954,886$ 1,378,364$ 96,576,522$
Business-Type Activities:
Revenue bonds payable 58,230,000$ 19,565,000$ 4,150,000$ 73,645,000$ 3,580,000$ 70,065,000$
Capital leases 102,423 - 50,732 51,691 51,691 -
Bond premium/(discount) 3,476,243 1,549,102 294,692 4,730,653 - 4,730,653
Net pension liability 14,364,332 - 4,497,374 9,866,958 - 9,866,958
Net OPEB liability 7,532,517 - 2,984,975 4,547,542 - 4,547,542
Compensated absences 682,705 186,212 - 868,917 63,837 805,080
Business-Type Activities
Long-Term Liabilities 84,388,220$ 21,300,314$ 11,977,773$ 93,710,761$ 3,695,528$ 90,015,233$
Bond Issue Year Refunded Outstanding
Series 2017A Water and Sewer System Refunding Bonds 2008 3,450,000$
Series 2017B Water and Sewer System Refunding Bonds 2009 7,950,000
Series 2018B Water and Sewer System Refunding Bonds 2009 7,440,000
Series 2020A Water and Sewer System Refunding Bonds 2011 5,055,000
Total Bonds Defeased 23,895,000$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
49
NOTE 5: OTHER INFORMATION
A. Risk management
Property and Casualty Insurance Plans
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions and natural disasters. A comprehensive insurance plan for property and casualty coverage has been established.
Third-party administrators handle property and casualty claims review and processing. Deductibles and self-insured
retentions for building and contents are $5,000 per occurrence; $100,000 for claims involving flood and earthquake;
$50,000 for claims involving wind/hail damage, automobile liability, general liability, employment practices liability,
law enforcement liability, and management liability; and $0 for airport liability. The amount of settlements has not
exceeded insurance coverage for the last three fiscal years.
Worker’s Compensation Plan
The City is exposed to risk of loss due to injuries incurred by employees while performing work-related duties. The City
has established and maintains a comprehensive self-insurance worker’s compensation plan. Third party administrators
handle claims review and processing. An insurance company provides excess workers compensation insurance for losses
over $450,000 self-insured retention with an aggregate retention of $2,000,000.
Health, Dental, and Life Plans
HEALTH - Employee/Dependents and Non-Medicare Eligible Retirees/Dependents
The City implemented a partially self-insured health plan for employees, their dependents, and retirees/dependents, who
are non-Medicare eligible. Non-Medicare Retirees and/or their dependents that have been continuously covered under
the City’s health plan may elect to continue their coverage at retirement. Active employees pay a portion of current
premiums with the City paying the remainder. To reduce long term liabilities, the City elected to eliminate the subsidy
for non-Medicare Retiree premiums for those employees hired after January 1, 1997. For those employees hired before
January 1, 1997, the same apportionment of premiums continues at retirement. For those employees hired after January
1, 1997, the employee is responsible for the full cost of current premiums.
The city has retained an insurance policy for specific and aggregate stop-loss coverage. There is an individual stop-loss
of $375,000 per illness. A third-party administrator administers health claims and payments.
Medicare Eligible Retirees/Dependents
Retirees and/or their spouses who become eligible for Medicare and have been continuously covered under the City’s
health insurance plan may elect to participate in the City’s self-funded prescription drug card plan and the Medicare
Supplement Insurance Program. The retiree hired before January 1, 1997 pay 40% and their dependent pays 70% of the
current premiums. The City pays the remainder. Retirees hired after January 1, 1997 pay the full cost of the prescription
card program and Medicare supplement. The insurance provider for the Medicare Supplement Plan processes and pays
health claims. A third-party administrator administers prescription claims and payments.
DENTAL - Employees/Retirees
The City offers fully self-funded dental and orthodontic benefits to eligible employees/dependents and
retirees/dependents. Employees and retirees hired after January 1, 1997 pay a portion of the premiums and the City pays
the remainder. Employees and retirees hired after January 1, 1997 pay the full cost of the current premium. A third-party
administrator administers dental claims and payments.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
50
A. Risk management – continued
LIFE INSURANCE - Employees/Retirees
The City provides a $10,000 basic life and AD&D insurance for all full-time active employees. Additionally, the City
provides a $5,000 basic life and AD&D insurance policy for eligible retirees. For active employees, supplemental life
insurance is available for purchase by the employee without evidence of insurability if purchased during initial election
period in the amount of three times their annual salary up to a maximum of $130,000, whichever is less. Additional
coverage is available up to $30,000 not to exceed 50% of the employee’s covered amount once the employee has
purchased a minimum of $40,000 in personal supplemental insurance. Dependent children’s coverage is also available
for purchase by the employee in the amounts of $5,000 or $10,000 once the employee has purchased $40,000 in personal
supplemental insurance.
For employees actively at work, benefit amounts reduce to 65% of original coverage at age 65, 50% of original coverage
at age 70, and to 30% of original coverage at age 75 for both personal and spouse life coverage. Supplemental life
coverage is eligible for portability. The insurance provider processes and pays life insurance claims.
Other Self-Insurance Plans
In addition, the City meets the self-insurance requirements as promulgated by the Environmental Protection Agency,
through the Texas Water Commission, for potential third-party claims.
Estimated liabilities for claims incurred but not reported at year-end have been recorded in the Self-Insurance Funds and
a reconciliation of changes in claims liabilities is included in the note on contingent liabilities.
B. Contingent liabilities
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally
the Federal Government. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at
this time although the government expects such amounts, if any, to be immaterial.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the
opinion of the City's management and collective legal counsel the resolution of these matters will not have a material
adverse effect on the financial condition of the City. City management and the collective legal counsel have determined
the estimated liability for outstanding lawsuit contingencies at September 30, 2020, was $100,000. See Note 4G for a
reconciliation of changes in claims and judgments.
The City's self-insurance program is described in Note 5A. The following is a reconciliation of the changes in the
estimated liabilities for claims payable within 90 days for the years ended September 30, 2020 and 2019:
Insurance Current Insurance
Claims Year Claims Actual Claims
Payable At and Changes Claim Payable At
Fund Beginning of Year In Estimates Payments End of Year
Employee Benefits Fund
FYE 2019 359,617$ 8,418,592$ 8,535,334$ 242,875$
FYE 2020 242,875 9,779,016 9,401,754 620,137
Retiree Benefits Fund
FYE 2019 114,168$ 1,672,306$ 1,570,206$ 216,268$
FYE 2020 216,268 1,366,905 1,530,373 52,800
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
51
C. Joint Venture
The Northeast Public Health District (“District”) was established by a cooperative agreement between the City and Smith
County, Texas pursuant to authority granted by the Texas Health & Safety Code for the purpose of providing public
health services previously provided by the participating entities. The District is considered a joint venture between the
City and County with each retaining an equity interest based upon the percentage each contributed to the budget.
For the year ended September 30, 2020, the City budgeted funding of $200,000 for the District. The City's equity interest
in the District at September 30, 2020 is $2,882,199. The Health District’s total fund balance at September 30, 2020 was
approximately $4.1 million. Financial statements for the Health District may be obtained at the entity's administrative
offices.
D. Deferred Compensation
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section
457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The
deferred compensation is not available to employees until termination, retirement death, or an unforeseeable emergency.
The plan assets are not part of the City’s financial statements because a third-party administrator holds these plan assets
in trust.
The fair value and carrying value of deferred compensation plan assets is $26,948,098 for September 30, 2020.
E. Pension Plans
1. Texas Municipal Retirement System Plan
TMRS Plan Description
The City of Tyler participates as one of 887 plans in the nontraditional, joint contributory, hybrid defined benefit pension
plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas
and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an
agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the
general administration and management of the System with a six-member Board of Trustees. Although the Governor,
with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas.
TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code.
All eligible employees of the City are required to participate in TMRS.
Firefighters are covered by a separate pension plan (see Note 5 E: 2); therefore, they are not included in the Texas
Municipal Retirement System Plan. TMRS issues a publicly available comprehensive annual financial report that
includes financial statements and required supplementary information (RSI) for TMRS; the report also provides detailed
explanations of the contributions, benefits and actuarial methods and assumptions used by the System. This report may
be obtained from TMRS’ website at www.tmrs.com.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the
City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city-financed
monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit
in one of seven payment options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum
Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits
and interest.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
52
E. Pension Plans - continued
The plan provisions are adopted by the governing body of the City, within the options available in the state statutes
governing TMRS. Plan provisions for the City were as follows:
Employees Covered by Benefit Terms
At the December 31, 2019 valuation and measurement date, the following employees were covered by the benefit
terms:
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the City
matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the City. Under the
state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry
Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to
finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded
accrued liability.
Employees for the City of Tyler were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City of Tyler were 21.12% and 21.23% in calendar years 2019 and 2020, respectively.
The City’s contributions to TMRS for the year ended September 30, 2020, were $7,930,591, and were equal to the
required contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2019, and the Total Pension Liability (TPL)
used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial assumptions:
The Total Pension Liability in the December 31, 2019 actuarial valuation was determined using the following actuarial
assumptions:
Inflation at 2.50% per year
Overall payroll growth between 3.50% to 11.50%, including inflation.
Investment Rate of Return at 6.75%, net of pension plan investment expense, including inflation.
Plan Year 2019 Plan Year 2018
Employee deposit rate 7.0% 7.0%
Matching ratio (city to employee) 2 to 1 2 to 1
Year required for vesting 5 5
Service retirement eligibility 20 years at any age, 5 years at age 60 20 years at any age, 5 years at age 60
and above and above
Updated Service Credit 100% Repeating Transfers 100% Repeating Transfers
Annuity Increase (to retirees) 70% of CPI Repeating 70% of CPI Repeating
12/31/2019 12/31/2018
Inactive employees or beneficiaries currently receiving benefits 584 573
Inactive emplyees entitled to but not yet receiving benefits 300 301
Active employees 684 665
1,568 1,539
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
53
E. Pension Plans - continued
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries
were based on the gender distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with
male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational
basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000
Combined Healthy Mortality Tables with Blue Collar Adjustment are used with both male and female rates multiplied
by 107.5% with a 3-year set-forward for both males and females. In addition, a 3% minimum mortality rate is applied
to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational
basis by scale BB to account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over
the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the
December 31, 2019 actuarial valuation. The post-retirement mortality assumption for healthy annuitants and Annuity
Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and
dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System
adopted the Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Plan assets are
managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in
order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation. In determining their best estimate of a recommended investment return assumption
under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean
(aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an
adjustment for time (aggressive).
The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2020 are
summarized in the following table:
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that employee and employer contributions will be made at the rates specified in
statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all
projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the Total
Pension Liability.
Asset Target Long-Term Expected Real
Class Allocation Rate of Return (Arithmetic)
Global Equity 35.00% 8.75%
Core Fixed Income 10.00% 4.34%
Non-Core Fixed Income 20.00% 6.13%
Real Return 10.00% 6.38%
Real Estate 10.00% 9.92%
Absolute Return 10.00% 6.45%
Private Equity 5.00% 23.25%
Total 100.00%
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
54
E. Pension Plans - continued
Changes in the Net Pension Liability
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as
what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately issued TMRS
financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2020, the City recognized pension expense of $7,088,288.
At September 30, 2020, the City reported deferred outflows of resource and deferred inflows of resources related to
pensions from the following sources:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at 12/31/2018 250,622,298$ 186,770,685$ 63,851,613$
Changes for the year:
Service cost 5,888,461 - 5,888,461
Interest 16,704,156 - 16,704,156
Change of benefit terms - - -
Difference between expected and actual experience (1,141,178) - (1,141,178)
Changes of assumptions 347,014 - 347,014
Contributions - employer - 7,579,707 (7,579,707)
Contributions - employee - 2,539,876 (2,539,876)
Net investment income - 28,874,055 (28,874,055)
Benefit payments, including refunds of employee contributions (12,195,107) (12,195,107) -
Administrative expense - (163,154) 163,154
Other changes - (4,901) 4,901
Net changes 9,603,346 26,630,476 (17,027,130)
Balance at 12/31/2019 260,225,644$ 213,401,161$ 46,824,483$
Increase (Decrease)
1% Decrease in 1% Increase in
Discount Rate (5.75%) Discount Rate (6.75%) Discount Rate (7.75%)
City's net pension liability 82,978,402$ 46,824,483$ 17,101,437$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
55
E. Pension Plans - continued
$6,127,199 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30,
2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in
pension expense as follows:
2. Tyler Firefighter's Relief and Retirement Fund
Plan Description
The City contributes to the retirement plan for firefighters in the Tyler Fire Department known as the Tyler Firefighters’
Relief and Retirement Fund (the Fund). The Fund is a single employer, contributory, defined benefit plan. The benefit
provisions of the Fund are authorized by the Texas Local Fire Fighters’ Retirement Act (TLFFRA). TLFFRA provides the
authority and procedure to amend benefit provisions. The plan is administered by the Board of Trustees of the Tyler
Firefighters’ Relief and Retirement Fund. The City does not have access to, nor can it utilize assets within the retirement
plan trust. The Fund issues a stand-alone report pursuant to GASB Statement No. 67, which may be obtained by writing
the Tyler Firefighters’ Relief and Retirement Fund at 1718 West Houston, Tyler, Texas 75702.
The Tyler Firefighter's Relief and Retirement Fund is considered part of the City's financial reporting entity and is
included in the City's financial reports as a Pension Trust Fund.
Benefits Provided
Firefighters in the Tyler Fire Department are covered by the Tyler Firefighters’ Relief and Retirement Fund which
provides service retirement, death, disability, and withdrawal benefits. These benefits fully vest after 20 years of
credited service. Firefighters become eligible for normal service retirement at age 50 with 25 years of service or at
age 55 with 20 years of service. If a terminated firefighter has a vested benefit but is not eligible for normal retirement,
he may elect an actuarially equivalent early retirement benefit or he may wait to retire starting on the date he would
have first satisfied both age and service requirements for normal retirement if he had remained a Tyler firefighter. The
present plan effective July 1, 2011 provides a monthly normal service retirement benefit, payable in a Joint and Two-
Thirds to Spouse form of annuity (except those who had 20 or more years of service as of January 1, 2005 have a
normal form of a Joint and 100% to Spouse form), equal to 71.5% of Highest 60-Month Average Salary plus $113 for
each year of service in excess of 20. A $1,000 minimum monthly benefit was added in 2018.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience -$ 825,935$
Changes in actuarial assumptions 251,154 -
Difference between projected and actual investment earnings - 13,013,627
Contributions subsequent to the measurement date 6,127,199 -
Total 6,378,353$ 13,839,562$
2020 (2,622,235)$
2021 (2,481,135)
2022 395,370
2023 (3,253,406)
2024 -
Thereafter -
(7,961,406)$
Year Ended December 31
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
56
E. Pension Plans – continued
A retiring firefighter eligible for normal service retirement with certain minimum combinations of years of service
and age has the option to elect the Retroactive Deferred Retirement Option Plan (RETRO DROP) which will provide
a lump sum benefit and a reduced monthly benefit. The reduced monthly benefit is based on the service and Highest
60-Month Average Salary as if he had terminated employment on his selected RETRO DROP benefit calculation date,
which is no earlier than the later of the date he meets the RETRO DROP eligibility requirements and the date preceding
the date he retires by the maximum lump sum accumulation period (36 or 60 months, depending upon age and service).
Upon retirement, the member will receive, in addition to his monthly retirement benefit, a lump sum equal to the sum
of (1) the amount of monthly contributions the member has made to the fund after the RETRO DROP benefit
calculation date plus (2) the total of the monthly retirement benefits the member would have received between the
RETRO DROP benefit calculation date and the date he retired under the plan. There are no account balances. The
lump sum is calculated at the time of retirement and distributed as soon as administratively possible.
There is no provision for automatic postretirement benefit increases. The Fund has the authority to provide, and has
periodically in the past provided, ad hoc postretirement benefit increases.
Members Covered by the Fund
In the December 31, 2019 actuarial valuation, the following numbers of members were covered by the Fund:
Contribution Policy
The contribution provisions of the Fund are authorized by TLFFRA. TLFFRA provides the authority and procedure to
change the amount of contributions determined as a percentage of pay by each firefighter and a percentage of payroll by
the City.
The contribution policy of the Tyler Firefighters’ Relief and Retirement Fund requires contributions equal to 13.5%
of pay by the firefighters, the rate elected by the firefighters according to TLFFRA. The city currently contributes
according to an agreement between the city and the Fund’s board of trustees. The city’s contribution rate to the Fund
is the same percentage of payroll that the city contributes to the Texas Municipal Retirement System for other
employees each calendar year. The actual city contribution rate was 20.92% in 2018 and 21.12% in 2019. In late 2020,
the city agreed in principle to a new contribution policy which will gradually phase in from a 21.23% contribution
rate in 2020 to the ultimate rate of 23% beginning in 2025. The December 31, 2019 actuarial valuation includes the
assumption that the city contribution rate will be according to this new policy and continue to be the ultimate 23%
over the remainder of the unfunded liability amortization period. The costs of administering the plan are paid from the
Fund assets.
Ultimately, the contribution policy also depends upon the total return of the Fund’s assets, which varies from year to
year. Investment policy decisions are established and maintained by the board of trustees. The board selects and
employs investment managers with the advice of their investment consultant. For the year ending December 31, 2019,
the money-weighted rate of return on pension plan investments was 19.08%. This measurement of the investment
performance is net of investment-related expenses, reflecting the effect of the timing of the contributions received and
the benefits paid during the year.
Retirees and beneficiaries currently receiving benefits 114
Inactive employees entitled to but not yet receiving benefits -
Active employees 159
273
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
57
E. Pension Plans - continued
While the contribution requirements are not actuarially determined, state law requires that each change in plan benefits
adopted by the Fund must first be approved by an eligible actuary, certifying that the contribution commitment by the
firefighters and the assumed city contribution rate together provide an adequate contribution arrangement. Using the
entry age actuarial cost method, the plan’s normal cost contribution rate is determined as a percentage of payroll. The
excess of the total contribution rate over the normal cost contribution rate is used to amortize the plan’s unfunded
actuarial accrued liability (UAAL). The number of years needed to amortize the plan’s UAAL is actuarially
determined using an open, level percentage of payroll method.
Net Pension Liability
The City of Tyler’s net pension liability was measured as of December 31, 2019, and the total pension liability used
to calculate the net pension liability was determined based on the actuarial valuation as of December 31, 2019.
Actuarial Method and Assumptions
The total pension liability in the December 31, 2019 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation 3.0%
Salary increases 3.0%, plus promotion, step and longevity increases that vary by
service
Investment rate of return 7.25%, net of pension plan investment expense, including inflation
Mortality rates were based on the PubS-2010 (public safety) total dataset mortality tables for employees and retirees
(sex distinct), projected generationally using projection scale MP-2019.
The long-term expected rate of return on pension plan investments is reviewed for each biennial actuarial valuation
and was determined using a building- block method in which expected future net real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These components are
combined to produce the long-term expected rate of return by weighting the expected future net real rates of return by
the target asset allocation percentage (currently resulting in 4.28%) and by adding expected inflation (3.0%). In
addition, the final 7.25% assumption was selected by rounding down. The target allocation and expected arithmetic
net real rates of return for each major asset class are summarized in the following table:
Total pension liability 101,976,879$
Plan fiduciary net position 74,572,570
City's net pension liability 27,404,309$
Plan fiduciary net position as a
percentage of the total pension liability 73.1%
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
58
E. Pension Plans - continued
Discount Rate
The discount rate used to measure the total pension liability was 7.25%. No projection of cash flows was used to
determine the discount rate because the December 31, 2019 actuarial valuation showed that expected contributions
would pay the normal cost and amortize the unfunded actuarial accrued liability (UAAL) in 29 years. Because of the
29-year amortization period of the UAAL, the pension plan’s fiduciary net position is expected to be available to make
all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate
of return on pension plan investments of 7.25% was applied to all periods of projected benefit payments as the discount
rate to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City of Tyler, calculated using the discount rate of 7.25%, compared
to what the city’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(6.25%) or 1-percentage-point higher (8.25%) than the current rate:
Plan Fiduciary Net Position
The plan fiduciary net position reported above is the same as reported by the Fund. Detailed information about the plan
fiduciary net position is available in the Fund’s separately issued audited financial statements, which are reported using
the economic resources measurement focus and the accrual basis of accounting in conformity with accounting principles
generally accepted in the United States of America. Revenues are recorded when earned, and expenses are recorded when
a liability is incurred, regardless of the timing of the related cash flows. Investments are reported at fair value, the price
that would be recognized to sell an asset in an orderly transaction between market participants at the measurement date.
Asset Target Long-Term Expected Real
Class Allocation Rate of Return
Equities
Large cap domestic 29.00% 5.80%
Mid cap domestic 9.00% 5.90%
Small cap domestic 6.00% 5.97%
International developed 7.00% 6.50%
International developing 5.00% 7.25%
Alternatives
Real estate 5.00% 3.80%
Commodities 5.50% 1.10%
Fixed income
Domestic core 19.30% 1.85%
Domestic high yield 4.00% 2.73%
Domestic bank loan 3.70% 2.24%
Global 5.00% 1.66%
Cash 1.50% 0.25%
Total 100.00%
Weighted Average 4.28%
1% Decrease in 1% Increase in
Discount Rate (6.25%) Discount Rate (7.25%) Discount Rate (8.25%)
City's net pension liability 39,182,440$ 27,404,309$ 17,493,565$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
59
E. Pension Plans - continued
Changes in the Net Pension Liability
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2020, the city’s GASB 68 pension expense was $4,621,809. Amounts recognized in
the fiscal year represent changes between the current and prior measurement dates.
Components of Pension Expense for the Fiscal Year Ended September 30, 2019
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at 12/31/2018 95,698,629$ 64,599,095$ 31,099,534$
Changes for the year:
Service cost 2,382,032 - 2,382,032
Interest 7,121,777 - 7,121,777
Difference between expected and actual experience (1,839,950) - (1,839,950)
Contributions by the City - 2,511,677 (2,511,677)
Firefighter contributions - 1,605,481 (1,605,481)
Net investment income - 12,119,485 (12,119,485)
Benefit payments (6,247,265) (6,247,265) -
Administrative expenses - (15,903) 15,903
Assumption changes 4,861,656 - 4,861,656
Other changes - - -
Net changes 6,278,250 9,973,475 (3,695,225)
Balance at 12/31/2019 101,976,879$ 74,572,570$ 27,404,309$
Increase (Decrease)
Service cost 2,382,032$
Interest 7,121,777
Firefighter contributions (1,605,481)
Projected earnings on pension plan investments (4,764,457)
Amortization of differences between projected and actual earnings on
plan investments 977,240
Amortization of changes of assumptions 807,851
Amortization of differences between expected and actual experience (313,056)
Pension plan administrative expenses 15,903
Changes in benefit provisions -
Total pension expense 4,621,809$
Components of Pension Expense
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
60
E. Pension Plans - continued
Deferred Outflows of Resources and Deferred Inflows of Resources to Be Recognized in Pension Expense in
Future Years
$1,982,075 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2020.
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as follows:
F. Post-Employment Benefits Other Than Pensions
1. Health Plan
Plan Description
In addition to the pension benefits previously described, the City makes available health care benefits to eligible
employees, and their spouses and children, who retire from the City and who are receiving benefits from a City
sponsored retirement program (Texas Municipal Retirement System or Tyler Firefighters’ Relief and Retirement
Fund) through a single employer defined benefit healthcare plan.
The plan does not issue a stand-alone report.
Benefits Provided
In addition to providing pension benefits, the City may provide group medical, dental, life and other benefits to eligible
employees and their dependents. Detailed and summary information concerning eligibility, coverage and costs will be
provided annually by Finance Department and any outside service or insurance providers. The nature and extent of
such benefits are subject to change without prior notice.
Employees who are working for City at the time of their retirement are eligible to continue to participate in City group
health, dental, and life insurance plan. If such retiree’s dependents were enrolled for coverage at the time of the
retiree’s retirement, then retiree may continue to have retiree’s dependents covered.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience -$ 2,037,776$
Changes in actuarial assumptions 5,417,262 -
Difference between projected and actual investment earnings 81,735 2,303,369
Contributions subsequent to the measurement date 1,982,075 -
Total 7,481,072$ 4,341,145$
2021 (92,158)$
2022 28,037
2023 981,736
2024 (1,034,155)
2025 376,540
Thereafter 897,852
Total 1,157,852$
Year Ended September 30
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
61
F. Post-Employment Benefits Other Than Pensions – continued
Retirees who elect to remain in the insurance plan must continue to pay their portion of premiums and abide by the
other conditions of the plan to have coverage. A retiree seeking continued coverage must inform Finance Department
no later than the date of retirement that the person elects to continue coverage for the retiree and/or dependents.
Employees hired after January 1, 1997 must pay full cost of premiums to continue coverage upon retirement. City
may substitute Medicare supplement health benefits coverage as the coverage provided for a retiree who receives
health benefits coverage under this policy, including a dependent, after the date that the retiree becomes eligible for
Federal Medicare benefits. The City may refuse health benefits coverage to a retiree and/or the retiree’s dependent
covered under this policy if the retiree and/or retiree’s dependent is eligible for group health benefits coverage through
another employer; or if premiums are not paid; or if they do not provide required certificate of insurance from
insurance company. Non-Medicare Retirees, Medicare Retirees, and their dependents, who elect to opt out of the
health and/or dental plan(s), may do so by submitting a written notice to Finance Department. This written notice must
include which plan(s) (health, dental and/or both) and the effective date (first day no longer covered). Retirees
terminated for non-payment or who opted out and had not served 20 years with the City of Tyler will not be eligible
to opt back into the health and/or dental plan(s) at a later date.
Retirees terminated due to alternative coverage may be able to opt back into the City’s coverage if the retiree:
1. No longer qualifies for coverage,
2. Served 20 years with the City of Tyler, and
3. Had selected the coverage at the time of retirement.
Only the coverage selected at the time of retirement will be considered for the 20-year opt-in provision.
Additionally, the City provides eligible retirees with $5,000 in basic life insurance coverage at no cost to the retirees.
Employees Covered by Benefit Terms
At the December 31, 2019 valuation and measurement date, the following employees were covered by the benefit
terms:
Contributions
City contributions consists of monthly premium contributions to the Public Agency Retirement Services (PARS) Post-
Retirement Health Funding Plan Trust, which is a multi-employer irrevocable trust that has a private letter ruling
confirming it is in full compliance with the requirements of Section 115 of the Internal Revenue Code.
Medicare eligible retirees are provided a Medicare insurance supplement program. For retirees hired before January
1, 1997, the City contributions are fixed at the 2013 subsidy level for age-band as of December 31, 2019. For retirees
hired on and after January 1, 1997, there is no City contribution. See the table below for the monthly rates for
employees:
Inactive employees currently receiving benefits 486
Inactive emplyees entitled to but not yet receiving benefits -
Active employees 823
1,309
Medical Dental Gold Gold
Plan Plan 100 150
Employee only 60.83$ 9.82$ 5.50$ 6.15$
Employee + Spouse 320.56 36.10 9.30 10.50
Employee + Child(ren) 249.08 34.96 9.90 11.15
Employee + Family 434.35 54.34 14.80 16.70
Vision Plan
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
62
F. Post-Employment Benefits Other Than Pensions – continued
Consistent with the requirements of GASB Statement No. 74, the employer contributions include amounts for OPEB
as the benefits come due that will not be reimbursed to the employer using OPEB plan assets.
Net OPEB Liability
The City’s Net OPEB Liability was measured as of December 31, 2019, and the Total OPEB Liability used to calculate
the Net OPEB Liability was determined by an actuarial valuation as of that date.
Actuarial assumptions:
The Total OPEB Liability in the December 31, 2019 actuarial valuation was determined using the following actuarial
assumptions:
Salary increases were based on a service-related table obtained from either TMRS or TFDRRF. Per TMRS, mortality
rates for active members, retirees, and beneficiaries were based on the gender distinct RP2000 Combined Healthy
Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by
103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements.
For disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment
are used with male rates multiplied by 109% and female rates multiplied by 103% with a 3-year set-forward for both
males and females.
In addition, a 3.5% and 3% minimum mortality rate is applied to reflect the impairment for younger members who
become disabled for males and females, respectively. The rates are projected on a fully generational basis using the
ultimate mortality improvement rates in the MP tables to account for future mortality improvements and are applied
before the 3.5% and 3% minimum mortality floors are applied. Per TFDRRF, mortality rates for active members,
retirees, and beneficiaries were based on the RP-2000 Combined Healthy Mortality Tables projected to 2024 using
Scale AA for males and females.
The demographic assumptions for TMRS members are based on the assumptions that were developed for the defined
benefit plan in which the City participates. The assumptions are based on the experience study covering the four-year
period ending December 31, 2014 as conducted for the Texas Municipal Retirement Plan (TMRS). The assumptions
for firefighters are based on the pension valuation report provided by the City as of December 31, 2017.
Discount Rate
The discount rate used to measure the Total OPEB Liability was 6.50%. Projected benefit payments are required to
be discounted to their actuarial present values using a Single Discount that reflects (1) a long-term expected rate of
return on OPEB plan investments (to the extent that the plan’s fiduciary net position is projected to be sufficient to
pay benefits), and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an
average AA credit rating as of the measurement date (to the extent that the contributions for use with the long-term
expected rate of return are not met).
For the purpose of this valuation, the expected rate of return on OPEB plan investments is 6.50%; the municipal bond
rate is 2.75% (based on the daily rate closest to but not later than the measurement date of the Fidelity “20-Year
Municipal GO AA Index”); and the resulting Single Discount Rate is 6.50%.
The City is expected to consistently fund the actuarially determined employer contribution, which uses a closed
amortization period. As a result, the plan’s fiduciary net position is expected to be sufficient to pay all future benefits.
Inflation 2.50%
Overall payroll growth TMRS: 3.50% to 11.50%, including inflation
FIRE: 3.50% to 9.71%, including inflation
Healthcare cost trend rates Initial rates of 7.00% declining to ultimate rates of 4.15% after 15 years
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
63
F. Post-Employment Benefits Other Than Pensions - continued
Changes in the Net OPEB Liability
Sensitivity Analysis
The following presents the Net OPEB Liability of the City, calculated using the discount rate of 6.50%, as well as
what the City’s Net OPEB Liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (5.50%) or 1-percentage-point higher (7.50%) than the current rate:
The following presents the Net OPEB Liability of the City, calculated using the assumed trend rates (6.50% declining
to the ultimate rate of 4.25% after 15 years), as well as what the City’s Net OPEB Liability would be if it were
calculated using a trend rate that is 1-percentage-point lower (5.50% declining to the ultimate rate of 3.25% after 15
years) or 1-percentage-point higher (7.50% declining to the ultimate rate of 5.25% after 15 years) than the current
rate:
OPEB Expense
For the year ended September 30, 2020, the City recognized OPEB expense of $456,171.
Increase (Decrease)
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balances as of December 31, 2018 36,562,163$ 10,824,428$ 25,737,735$
Changes for the year:
Service cost 660,205 - 660,205
Interest on the total OPEB liability 2,329,351 - 2,329,351
Changes in benefit terms - - -
Differences between expected and actual experience (9,134,915) - (9,134,915)
Changes in assumptions (477,666) - (477,666)
Employer contributions - 3,188,005 (3,188,005)
Net investment income - 2,019,451 (2,019,451)
Benefit payments (2,112,205) (2,112,205) -
Administrative expenses - (37,313) 37,313
Other - - -
Net Changes (8,735,230) 3,057,938 (11,793,168)
Balances as of December 31, 2019 27,826,933$ 13,882,366$ 13,944,567$
1% Decrease in 1% Increase in
Discount Rate (5.50%) Discount Rate (6.50%) Discount Rate (7.50%)
Net OPEB Liability 16,094,533$ 13,944,567$ 12,003,834$
1% Decrease in 1% Increase in
Trend Rates Current Trend Rates Trend Rates
Net OPEB Liability 12,107,165$ 13,944,567$ 16,037,980$
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
64
F. Post-Employment Benefits Other Than Pensions - continued
Deferred Outflows of Resources and Deferred Inflows of Resources to be Recognized in OPEB expense in
Future Years
At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
The City had $(897,432) reported as deferred outflows of resources related to OPEB resulting from contributions
subsequent to the measurement date will be recognized as a reduction/(addition) of the total OPEB liability for the
year ending September 30, 2020. The employer contributions include trust contributions of $3,414,159 plus the benefit
payments paid by the City of $2,112,205 minus the trust reimbursements of $2,338,359. Other amounts reported as
deferred outflows of resources related to OPEB will be recognized in OPEB expense as follows:
Service cost 660,205$
Interest on total OPEB liability 2,329,351
Current-period benefit changes -
Employee contributions -
Projected earnings on OPEB plan investments (737,339)
OPEB plan administrative expenses 37,313
Other changes in plan fiduciary net position -
Recognition of current year outflow/(inflow) due to liabilities (1,606,488)
Recognition of current year outflow/(inflow) due to assets (256,422)
Amortization of prior year outflow/(inflow) due to liabilities (118,208)
Amortization of prior year outflow/(inflow) due to assets 147,759
Total OPEB expense 456,171$
Components of OPEB Expense
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience -$ 8,107,899$
Changes in actuarial assumptions - 397,837
Difference between projected and actual investment earnings - 479,938
Contributions subsequent to the measurement date (897,432) -
Total (897,432)$ 8,985,674$
2020 (1,833,359)$
2021 (1,833,358)
2022 (1,730,885)
2023 (1,981,120)
2024 (1,606,952)
Thereafter -
(8,985,674)$
Year Ended December 31
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
65
F. Post-Employment Benefits Other Than Pensions - continued
2. Supplemental Death Benefits Plan
Plan Description
The City also participates in a single-employer defined benefit group-term life insurance plan operated by the Texas
Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). Like the Defined
Benefit Pension Plan, the OPEB Plan is under the general administration and management of the System with a six-
member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board,
TMRS is not fiscally dependent on the State of Texas.
This is a voluntary program in which participating member cities may elect, by ordinance, to provide group-term life
insurance coverage for their active members, including or not including retirees. The City may terminate coverage
under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be
effective the following January 1.
TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at
www.tmrs.com.
Benefits Provided
Payments from this fund are similar to group term life insurance benefits and are paid to the designated beneficiaries
upon the receipt of an approved application for payment. The death benefit for active employees provides a lump-sum
payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings,
for the 12-month period preceding the month of death). The death benefit for retirees is considered an “other
postemployment benefit” (OPEB) and is a fixed amount of $7,500.
Employees Covered by Benefit Terms
At the December 31, 2019 valuation and measurement date, the following employees were covered by the benefit
terms:
Contributions
The member city contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation. The rate is based on the mortality and service experience of all employees covered by the SDBF and the
demographics specific to the workforce of the City. The rate is equal to the cost of providing one-year term life
insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all
death benefit payments for the upcoming year. The intent is not to pre-fund retiree life insurance during employee’s
entire careers.
As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be
an unfunded OPEB plan (i.e. no assets are accumulated).
12/31/2019 12/31/2018
Inactive employees currently receiving benefits 461 451
Inactive emplyees entitled to but not yet receiving benefits 70 72
Active employees 684 665
1,215 1,188
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
66
F. Post-Employment Benefits Other Than Pensions - continued
For calendar year 2019, the total SDB contributions rate for the City was 0.23%, while the retiree portion of the SDB
contribution was 0.08%. The City’s contributions for the year ended September 30, 2020, were $30,259 for the retiree
portion, and $86,995 for the total SDB rate. Due to the SDBF being considered an unfunded OPEB plan, benefit
payments are treated as being equal to the employer’s yearly contributions for retirees.
Total OPEB Liability
The City’s total OPEB liability was measured as of December 31, 2019 and was determined by an actuarial
valuation as of that date.
Actuarial Assumptions
The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following
actuarial assumptions:
* The discount rate was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31,
2019.
The actuarial cost method being used is known as the Entry Age Normal Method. This method develops the annual
cost of the Plan in two parts: that attributable to benefits accruing in the current year, known as the normal cost, and
that due to service earned prior to the current year, known as the amortization of the unfunded actuarial accrued
liability. The normal cost and the actuarial accrued liability are calculated individually for each member. The normal
cost rate for an employee is the contribution rate which, if applied to a member’s compensation through their period
of anticipated covered service with the municipality, would be sufficient to meet all benefits payable on their behalf.
The normal cost is calculated using an entry age based on benefit service with the City. If a member has additional
time-only vesting service through service with other TMRS cities or other public agencies, they retain this for
determination of benefit eligibility and decrement rates. The salary-weighted average of these rates is the total normal
cost rate. The unfunded actuarial accrued liability reflects the difference between the portion of projected benefits
attributable to service credited prior to the valuation date and assets already accumulated.
Inflation 2.50%
Overall payroll growth 3.50% to 11.50% including inflation
Discount rate * 2.75%
Retiree's share of benefit-related costs $0
Administrative expenses
Mortality rates - service retirees
Mortality rates - disabled retirees
All administrative expenses are paid through the Pension
Trust and accounted for under reporting requirements
under GASB Statement No. 68.
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female
rates multiplied by 103% and projected on a fully
generaional basis with scale BB.
RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female
rates multiplied by 103% with a three year set-forward for
both males and females. The rates are projected on a fully
generational basis with scale BB to account for future
mortality improvements subject to the 3% floor.
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
67
F. Post-Employment Benefits Other Than Pensions - continued
These actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS
over the four year period from December 31, 2014 to December 31, 2018.
Changes in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate of 2.75%, would be if it
were calculated using a discount rate that is 1-percentage-point lowers (1.75%) or 1-percentage-point higher (3.75%)
than the current rate:
OPEB Expense and Deferred Outflow of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended September 30, 2020, the City recognized OPEB expense of $246,684.
Increase (Decrease)
Total OPEB
Liability
Balance at 12/31/2018 2,547,997$
Changes for the year:
Service cost 79,819
Interest 95,473
Change of benefit terms -
Difference between expected and actual experience (111,448)
Changes of assumptions or other inputs 451,855
Benefit payments (29,025)
Net changes 486,674
Balance at 12/31/2019 3,034,671$
1% Decrease in 1% Increase in
Discount Rate (1.75%) Discount Rate (2.75%) Discount Rate (3.75%)
Total OPEB Liability 3,621,782$ 3,034,671$ 2,571,388$
Service cost 79,819$
Interest on total OPEB liability 95,473
Changes in benefit terms -
Employer administrative costs -
Recognition of deferred outflows/inflows of resources:
Differences between expected and actual experience (29,444)
Changes in assumptions or other inputs 100,836
Total OPEB expense 246,684$
Components of OPEB Expense
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
68
F. Post-Employment Benefits Other Than Pensions - continued
Deferred Outflows of Resources and Deferred Inflows of Resources to Be Recognized in OPEB
Expense in Future Years
At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
The City had $23,353 reported as deferred outflows of resources related to OPEB resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the total OPEB liability for the year ending
September 30, 2020. Other amounts reported as deferred outflows of resources related to OPEB will be recognized in
OPEB expense as follows:
G. Commitments
Effective April 10, 2017, the City entered into a ten-year agreement, known as a consent decree, with the
U.S. Environmental Protection Agency (“EPA”) to make wastewater collection system upgrades and to
enhance the City’s existing programs for inspections, maintenance, and cleaning of the wastewater system.
The City is required to submit periodic reports to the EPA and Texas Commission on Environmental Quality
to ensure that compliance with the terms of the consent decree is maintained. The City is in compliance with
the terms of the consent decree at September 30, 2020.
The City invested in other projects and contracts with outside parties. The more significant of these at
September 30, 2020, are as follows:
Greenwood Landfill TX, L.P. – The City established a trust fund in January 2001 to ensure the
eventual closure and post-closure expenditure requirements. The trust fund will be 100% funded by
Greenwood Landfill TX, L.P. (Greenwood). The initial agreement was that Greenwood would fund
the trust at the annual rate of $400,000 per year for 5 years. In January 2005, the agreement was
amended to reduce the annual funding rate to $36,000 per year beginning October 1, 2004 to allow
Greenwood to actively pursue authorization to expand the Landfill from the appropriate regulatory
agencies. The funding will be re-evaluated periodically to determine future needs. The trust is set
up as an expendable trust with expenditures restricted to closure and post-closure costs. Liability for
closure and post-closure costs are the responsibility of Greenwood and will be calculated annually
under requirements established by the Texas Commission on Environmental Quality.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual economic experience (103,934)$ -$
Changes in actuarial assumptions - 329,208
Difference between projected and actual investment earnings - -
Contributions subsequent to the measurement date 23,353 -
Total (80,581)$ 329,208$
2020 71,392$
2021 65,912
2022 37,887
2023 50,083
2024 -
Thereafter -
225,274$
Year Ended December 31
CITY OF TYLER, TEXAS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
69
G. Commitments - continued
Water Sales Contracts – The City has an agreement with surrounding cities and water supply
corporations to provide a supplemental source of water. The amount to be provided is estimated to
be 50% of the annual supply. The parties have established a minimum annual and monthly take or
pay volume and a surcharge to water taken above maximum day volume.
Reinvestment Zone agreement – The City has an agreement in which the City will reimburse Tyler
Economic Development Council (TEDC) for the construction of Bennett Avenue, a public roadway
in the City of Tyler Reinvestment Zone No. 1 (ZONE). After receiving the City’s payments, TEDC
will match the amount and contribute it to the ZONE for the purpose of paying for site work and
construction costs for the addition to the Tyler Junior College Skills Training Center. The agreement
provides that the City make contributions during each of the fiscal years in the amount of $275,000.
H. Landfill Closure and Post-closure Costs
Greenwood Landfill – The City has contracted with a private enterprise to operate the Greenwood Landfill. The private
enterprise bears the full financial responsibility of operating the landfill including all closure and post-closure costs.
The operator is funding a landfill trust, which is administered by the City of Tyler and established for the future closure
and post-closure costs of the Greenwood Landfill.
I. COVID-19
The outbreak of the coronavirus disease (“COVID-19”) was declared a pandemic by the World Health Organization.
Additionally, the Governor declared a state of disaster for the State of Texas on March 13, 2020. On global, national,
state, and local levels, economic disruptions have occurred due to the pandemic.
The COVID-19 pandemic and economic disruptions resulting from measures to contain spread have resulted in
reductions in actual and projected revenues is certain areas including sales tax collections and rents resulting from the
use of congregating spaces, such as Harvey Convention Center. The reductions have been offset by increases in other
certain revenue areas and additional government assistance. While the ultimate impact of the COVID-19 pandemic
on the amount and timing of collections of City revenues cannot be determined with certainty, the net effect of the
pandemic on the City’s position as of September 30, 2020 is not considered to be significant.
As of September 30, 2020, The City had received and expended approximately $5.9 million in funding from the
Coronavirus Relief Fund and $2.5 million in CARES Act funding for Airport, Transit, and Housing. These funds were
primarily expended, as allowed, to pay the salaries and benefits of first responders employed by the City.
The City also adopted the provisions of GASB Statement No. 95, Postponement of the Effective Dates of Certain
Authoritative Guidance. The primary objective of this Statement is to provide temporary relief to governments and
other stakeholders in consideration of the COVID-19 pandemic. That objective is accomplished by postponing the
effective dates of certain provisions in Statements and Implementation Guides that first became effective or are
scheduled to become effective for periods beginning after June 15, 2018, and later. This pronouncement did not impact
the preparation of these financial statements.
J. Subsequent Events
Subsequent events were evaluated through March 10, 2021, the date on which the financial statements were available
to be issued.
REQUIRED SUPPLEMENTARY INFORMATION
A-1Measurement Measurement Measurement Measurement Measurement MeasurementTotal pension liabilityYear Year Year Year Year Year2014 2015 2016 2017 2018 2019 Service Cost4,665,697$ 5,126,201$ 5,561,888$ 5,616,579$ 5,645,418$ 5,888,461$ Interest (on the Total Pension Liability) 14,108,492 14,704,123 14,812,165 15,456,387 16,127,408 16,704,156 Changes in benefit terms- - - - - - Difference between expected and actual results (1,004,139) (331,903) (473,353) (196,987) (1,686,661) (1,141,178) Change of assumptions- (478,359) - - - 347,014 Benefit payments, including refunds of employee contributions(9,268,702) (9,713,879) (10,000,772) (10,767,252) (11,131,440) (12,195,107) Net Change in Total Pension Liability 8,501,348 9,306,183 9,899,928 10,108,727 8,954,725 9,603,346 Total Pension Liability - Beginning 203,851,387 212,352,735 221,658,918 231,558,846 241,667,573 250,622,298 Total Pension Liability - Ending (a) 212,352,735$ 221,658,918$ 231,558,846$ 241,667,573$ 250,622,298$ 260,225,644$ Plan Fiduciary Net Position Contributions - Employer6,710,788$ 7,010,794$ 7,040,230$ 7,170,297$ 7,214,614$ 7,579,707$ Contributions - Employee2,227,512 2,327,022 2,388,648 2,420,194 2,438,458 2,539,876 Net Investment Income8,776,879 238,696 10,912,920 23,797,094 (5,816,547) 28,874,055 Benefit payments, including refunds of employee contributions(9,268,702) (9,713,879) (10,000,772) (10,767,252) (11,131,440) (12,195,107) Administrative Expense(91,634) (145,395) (123,252) (123,321) (112,418) (163,154) Other(7,534) (7,181) (6,641) (6,250) (5,873) (4,901) Net Change in Plan Fiduciary Net Position 8,347,309 (289,943) 10,211,133 22,490,762 (7,413,206) 26,630,476 Plan Fiduciary Net Position - Beginning 153,424,630 161,771,939 161,481,996 171,693,129 194,183,891 186,770,685 Plan Fiduciary Net Position - Ending (b) 161,771,939$ 161,481,996$ 171,693,129$ 194,183,891$ 186,770,685$ 213,401,161$ Net Pension Liability (Asset) - Ending (a)-(b) 50,580,796$ 60,176,922$ 59,865,717$ 47,483,682$ 63,851,613$ 46,824,483$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability76.18% 72.85% 74.15% 80.35% 74.52% 82.01% Covered Payroll31,816,401$ 33,222,301$ 34,080,198$ 34,542,306$ 34,783,842$ 36,281,338$ Net Pension Liability as a Percentage of Covered Payroll158.98% 181.13% 175.66% 137.47% 183.57% 129.06%Notes to Schedule: Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.CITY OF TYLER, TEXASREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOSFISCAL YEAR ENDED SEPTEMBER 30, 202071
A-22014 2015 2016 2017 2018 2019 2020Actuarially Determined Contribution 6,596,251$ 6,906,104$ 7,323,791$ 7,067,763$ 7,242,722$ 7,480,539$ 7,930,591$ Contributions in relation to the actuarially determined contributions 6,596,251 6,906,104 7,323,791 7,067,763 7,242,722 7,480,539 7,930,591 Contribution deficiency (Overpayment) -$ -$ -$ -$ -$ -$ -$ Covered payroll 31,503,109$ 32,746,475$ 35,299,165$ 34,107,320$ 34,968,816$ 35,884,086$ 37,823,838$ Contributions as a percentage of covered payroll20.94% 21.09% 20.75% 20.72% 20.71% 20.85% 20.97%NOTES TO SCHEDULE OF CONTRIBUTIONSValuation Date: Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later.Methods and Assumptions Used to Determine Contribution Rates:Actuarial Cost Method Entry Age NormalAmortization Method Level Percentage of Payroll, ClosedRemaining Amortization Period 25 yearsAsset Valuation Method 10 Year smoothed market; 12% soft corridorInflation 2.50%Salary Increases 3.50% to 11.50% including inflationInvestment Rate of Return 6.75%Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2019 valuation pursuant to the experiencestudy of the period 2014 - 2018.Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP.Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projected on a fully generational basis with scale UMP.Other Information: There were no benefit changes during the year.Notes to Schedule: Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.REQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CONTRIBUTIONSFISCAL YEAR ENDED SEPTEMBER 30, 2020CITY OF TYLER, TEXAS72
A-3Measurement Measurement Measurement Measurement Measurement MeasurementTotal pension liabilityYear Year Year Year Year Year2014 2015 2016 2017 2018 2019 Service Cost2,135,428$ 2,215,179$ 2,248,539$ 2,327,238$ 2,303,706$ 2,382,032$ Interest (on the Total Pension Liability) 5,987,025 6,277,350 6,474,280 6,684,234 6,849,003 7,121,777 Changes in benefit terms- - - - 158,198 - Difference between expected and actual results - 198,165 - (1,038,495) - (1,839,950) Change of assumptions- 808,186 - 1,214,295 - 4,861,656 Benefit payments, including refunds of employee contributions(3,413,612) (5,498,546) (6,299,846) (5,814,190) (4,940,827) (6,247,265) Net Change in Total Pension Liability 4,708,841 4,000,334 2,422,973 3,373,082 4,370,080 6,278,250 Total Pension Liability - Beginning 76,823,319 81,532,160 85,532,494 87,955,467 91,328,549 95,698,629 Total Pension Liability - Ending (a) 81,532,160$ 85,532,494$ 87,955,467$ 91,328,549$ 95,698,629$ 101,976,879$ Plan Fiduciary Net Position Contributions - Employer2,407,993$ 2,452,070$ 2,336,615$ 2,405,117$ 2,430,912$ 2,511,677$ Contributions - Employee1,522,493 1,555,182 1,512,916 1,549,098 1,568,701 1,605,481 Net Investment Income2,403,790 (2,891,814) 5,091,311 9,480,792 (4,565,736) 12,119,485 Benefit payments, including refunds of employee contributions(3,413,612) (5,498,546) (6,299,846) (5,814,190) (4,940,827) (6,247,265) Administrative Expense(53,740) (30,035) (54,206) (15,132) (35,836) (15,903) Other- - - - - - Net Change in Plan Fiduciary Net Position 2,866,924 (4,413,143) 2,586,790 7,605,685 (5,542,786) 9,973,475 Plan Fiduciary Net Position - Beginning 61,495,625 64,362,549 59,949,406 62,536,196 70,141,881 64,599,095 Plan Fiduciary Net Position - Ending (b) 64,362,549$ 59,949,406$ 62,536,196$ 70,141,881$ 64,599,095$ 74,572,570$ Net Pension Liability (Asset) - Ending (a)-(b) 17,169,611$ 25,583,088$ 25,419,271$ 21,186,668$ 31,099,534$ 27,404,309$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability78.94% 70.09% 71.10% 76.80% 67.50% 73.13% Covered Payroll11,272,803$ 11,519,867$ 11,206,785$ 11,474,800$ 11,620,007$ 11,892,452$ Net Pension Liability as a Percentage of Covered Payroll152.31% 222.08% 226.82% 184.64% 267.64% 230.43%Notes to Schedule: Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.CITY OF TYLER, TEXASREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOSFIREFIGHTERS' RELIEF AND RETIREMENT FUNDFISCAL YEAR ENDED SEPTEMBER 30, 202073
A-42014 2015 2016 2017 2018 2019 2020Actuarially Determined Contribution 2,402,466$ 2,448,625$ 2,508,633$ 2,244,357$ 2,640,922$ 2,525,746$ 2,578,616$ Contributions in relation to the actuarially determined contributions 2,402,466 2,448,625 2,442,540 2,189,346 2,620,919 2,487,004 2,578,616 Contribution deficiency -$ -$ 66,093$ 55,011$ 20,003$ 38,742$ -$ Covered payroll 11,272,803$ 11,506,705$ 11,963,428$ 10,721,551$ 12,616,845$ 11,985,380$ 12,160,729$ Contributions as a percentage of covered payroll21.31% 21.28% 20.42% 20.42% 20.77% 20.75% 21.20%NOTES TO SCHEDULE OF CONTRIBUTIONSValuation Date: Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later.Methods and Assumptions Used to Determine Contribution Rates:Actuarial Cost Method Entry Age Amortization Method Level Percentage of Payroll MethodRemaining Amortization Period 29 yearsInflation 3.0%Salary Increases 3.0%, plus promotion, step and longevity increases that vary by serviceInvestment Rate of Return 7.25%, net of pension plan investment expense, including inflationRetirement Age Firefighters become eligible for normal service retirement at age 50 with 25 years of service or at age 55 with 20 years of service.Mortality PubS-2010 total dataset mortality tables for employees and retires (sex distinct), projected generationally using projection scale MP-2019.Other Information: There were no benefit changes during the year.Notes to Schedule: Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.REQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CONTRIBUTIONSFIREFIGHTERS' RELIEF AND RETIREMENT FUNDFISCAL YEAR ENDED SEPTEMBER 30, 2020CITY OF TYLER, TEXAS74
A-5
Measurement Measurement Measurement
Total OPEB liability Year Year Year
2017 2018 2019
Service Cost 617,273$ 656,975$ 660,205$
Interest (on the Total OPEB Liability) 2,303,993 2,317,569 2,329,351
Difference between expected and actual experience - (736,059) (9,134,915)
Change of assumptions - - (477,666)
Benefit payments (3,459,056) (2,005,477) (2,112,205)
Net Change in Total OPEB Liability (537,790) 233,008 (8,735,230)
Total OPEB Liability - Beginning 36,866,945 36,329,155 36,562,163
Total OPEB Liability - Ending (a) 36,329,155$ 36,562,163$ 27,826,933$
Plan Fiduciary Net Position
Contributions - Employer 6,125,793$ 2,880,184$ 3,188,005$
OPEB plan net investment income 1,042,478 (539,956) 2,019,451
Benefit payments (3,459,056) (2,005,477) (2,112,205)
OPEB plan administrative Expense (23,966) (29,550) (37,313)
Net Change in Plan Fiduciary Net Position 3,685,249 305,201 3,057,938
Plan Fiduciary Net Position - Beginning 6,833,978 10,519,227 10,824,428
Plan Fiduciary Net Position - Ending (b) 10,519,227$ 10,824,428$ 13,882,366$
Net OPEB Liability (Asset) - Ending (a)-(b) 25,809,928$ 25,737,735$ 13,944,567$
Plan Fiduciary Net Position as a Percentage
of Total OPEB Liability 28.96% 29.61% 49.89%
Covered Payroll 45,211,468$ 45,363,280$ 48,419,528$
Net OPEB Liability as a Percentage
of Covered Payroll 57.09% 56.74% 28.80%
Notes to Schedule:
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
CITY OF TYLER, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
HEALTH PLAN
FISCAL YEAR ENDED SEPTEMBER 30, 2020
75
A-6
2018 2019 2020
Actuarially Determined Contribution 2,988,214$ 2,988,214$ 2,748,039$
Contributions in relation to the actuarially
determined contributions 3,226,151 3,129,268 3,414,231
Contribution excess (237,937)$ (141,054)$ (666,192)$
Covered payroll 44,647,862$ 48,416,755$ 50,375,986$
Contributions as a percentage of covered
payroll 7.23% 6.46% 6.78%
NOTES TO SCHEDULE OF CONTRIBUTIONS
Valuation Date: The actuarially determined contribution for fiscal year ending September 30, 2020 was developed in the
December 31, 2017 valuation.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Individual Entry Age Normal
Amortization Method Level Dollar
Amortization Period Closed, 22 years as of FYE 20
Asset Valuation Method Fair Value
Investment Rate of Return 6.50%, net of investment expenses, including inflation
Inflation 2.50%
Salary Increases TMRS: 3.50% to 10.50%, including inflation
FIRE: 3.50% to 9.71%, including inflation
Demographic Assumptions TMRS: Based on the experience study covering the four-year period ending December 31, 2014 as
conducted by the Texas Municipal Retirement System.
FIRE: Based on the pension valuation report for the Tyler Firefighters' Relief and Retirement Fund as of
December 31, 2017.
Mortality TMRS: For healthy retirees, the gender-distinct RP-2000 Combined Healthy Mortality Tables
with Blue Collar Adjustment are used with male rates multiplied by 109% and female rates
multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account
for future mortality improvements.
FIRE: RP-2000 Combined Healthy Mortality Table projected to 2024 using Scale AA for males and
for females for all three types of mortality
Participation Rates It was assumed that 85% of future retirees who were hired before January 1, 1997 and 30% of future retirees
who were hired after January 1, 1997 would choose to receive retiree health care benefits through the City.
Healthcare Cost Trend Rates Initial rates of 7.0% declining to ultimate rates of 4.15% after 15 years.
Notes to Schedule:
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
HEALTH PLAN
FISCAL YEAR ENDED SEPTEMBER 30, 2020
CITY OF TYLER, TEXAS
76
A-7
Measurement Measurement Measurement
Year Year Year
Total OPEB liability 2017 2018 2019
Service Cost 72,539$ 86,960$ 79,819$
Interest 86,877 86,971 95,473
Difference between expected and actual experience - (27,611) (111,448)
Change of assumptions and other inputs 190,285 (168,451) 451,855
Benefit payments (27,634) (27,827) (29,025)
Net Change in Total OPEB Liability 322,067 (49,958) 486,674
Total OPEB Liability - Beginning 2,275,888 2,597,955 2,547,997
Total OPEB Liability - Ending (a) 2,597,955$ 2,547,997$ 3,034,671$
Covered Payroll 34,542,306$ 34,783,842$ 34,783,842$
Net OPEB Liability as a Percentage of Covered Payroll 7.52% 7.33% 8.72%
NOTES TO SCHEDULE OF CONTRIBUTIONS
Summary of Actuarial Assumptions:
Inflation 2.50%
Salary Increases 3.50% to 11.50% including inflation
Discount Rate* 2.75%
Retirees' share of benefit-related costs $0.00
Administrative Expenses All administrative expenses are paid through the Pension Trust and accounted for under
reporting requirements under GASB Statement No. 68
Mortality Rates - Service Retirees RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied
by 109% and female rates multiplied by 103% and projected on a fully generational
basis with scale BB.
Mortality Rates - Disabled Retirees RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied
by 109% and female rates multiplied by 103% with a 3 year set-forward for both males and
females. The rates are projected on a fully generational basis with scale BB to account for
future mortality improvements subject to the 3% floor.
Other Information:The Supplemental Death Benefits Fund is considered to be an unfunded OPEB plan
(i.e. no assets are accumulated).
* The discount rate was based on the Fidelity Index's "20-Year Municipal GO AA Index" rate as of December 31, 2019.
Notes to Schedule:
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
CITY OF TYLER, TEXAS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
SUPPLEMENTAL DEATH BENEFITS PLAN
FISCAL YEAR ENDED SEPTEMBER 30, 2020
77
ADDITIONAL SUPPLEMENTARY INFORMATION
B-1GENERALFAIR PARKING GARAGEASSETSCash and cash equivalents 7,647,141$ 1,594,885$ 244,974$ 7,159,688$ -$ -$ 16,646,688$ Receivables (net of allowance for doubtful accounts) :Property taxes 636,729 - - - - - 636,729 Other 24,977,974 41,375 294 6,718 6,886 - 25,033,247 Due from other funds 1,222,398 - - - - (4,839) 1,217,559 Inventories 74,900 - - - - - 74,900 Prepaid items 92,845 978 150 - - - 93,973 Total assets 34,651,987$ 1,637,238$ 245,418$ 7,166,406$ 6,886$ (4,839)$ 43,703,096$ LIABILITIES Accounts payable 2,647,133$ 81,783$ 91,790$ -$ 2,047$ -$ 2,822,753$ Due to other funds - - - - 4,839 (4,839) - Deposits and other refundable balances 36,700 958,084 26,212 5,000 - 1,025,996 Unearned revenue 31,176 - - - - - 31,176 Total liabilities 2,715,009 1,039,867 118,002 5,000 6,886 (4,839) 3,879,925 DEFERRED INFLOWS OF RESOURCESUnavailable revenue - property taxes 607,738 - - - - - 607,738 Unavailable revenue - fines 12,299,925 - - - - - 12,299,925 Unavailable revenue - permits - 40,113 - - - - 40,113 Total deferred inflows of resources 12,907,663 40,113 - - - - 12,947,776 FUND BALANCESNonspendable:Inventories 74,900 - - - - - 74,900 Prepaid items 92,845 978 150 - - - 93,973 Assigned to:Development services - 794,038 - - - - 794,038 Tourism and convention - - 127,266 - - - 127,266 Unassigned 18,861,570 (237,758) - 7,161,406 - - 25,785,218 Total fund balances 19,029,315 557,258 127,416 7,161,406 - - 26,875,395 Total liabilities, deferred inflows of resources,and fund balances 34,651,987$ 1,637,238$ 794,737$ 7,166,406$ 6,886$ (4,839)$ 43,703,096$ CITY OF TYLER, TEXASCOMBINING BALANCE SHEETGENERAL GOVERNMENTAL FUNDSSEPTEMBER 30, 2020DEVELOPMENT SERVICESTOURISM AND CONVENTION RAINY DAYTOTAL GENERAL GOVERNMENTAL FUNDSELIMINATIONS 79
B-2GENERALREVENUESTaxes:Property 22,732,277$ -$ -$ -$ -$ -$ 22,732,277$ Franchise 11,000,729 - - - - - 11,000,729 Sales and use 31,110,809 - - - - - 31,110,809 Licenses and permits 434,261 1,294,044 - - - - 1,728,305 Fines, forfeitures and penalties 3,532,014 - - - - - 3,532,014 Revenues from use of money or property 267,834 22,400 136,613 131,113 (26,325) - 531,635 Charges for current services 2,354,363 74,531 54,216 - - - 2,483,110 Revenues from other agencies 6,311,699 - - - - - 6,311,699 Miscellaneous 446,981 121,293 10,378 417,040 - - 995,692 Total revenues 78,190,967 1,512,268 201,207 548,153 (26,325) - 80,426,270 EXPENDITURESCurrent: General government 7,050,715 - - 8,501 2,255 - 7,061,471 Public safety 49,359,878 - - - - - 49,359,878 Public services 1,040,713 1,742,216 - - - - 2,782,929 Highways and streets 4,839,899 - - - - - 4,839,899 Culture and recreations 5,670,118 - 2,346,968 - - - 8,017,086 Capital outlay 96,909 - 125,115 - - - 222,024 Total expenditures 68,058,232 1,742,216 2,472,083 8,501 2,255 - 72,283,287 Excess (deficiency) of revenues over (under) expenditures 10,132,735 (229,948) (2,270,876) 539,652 (28,580) - 8,142,983 OTHER FINANCING SOURCES (USES) Transfers in 4,611 - 1,833,500 500,000 28,575 (533,186) 1,833,500 Transfers out (3,663,216) (11,868) (31,599) - (4,611) 533,186 (3,178,108) Total other financing sources (uses) (3,658,605) (11,868) 1,801,901 500,000 23,964 - (1,344,608) Net change in fund balances 6,474,130 (241,816) (468,975) 1,039,652 (4,616) - 6,798,375 Fund balances - beginning of year 12,555,185 799,074 596,391 6,121,754 4,616 - 20,077,020 Fund balances - end of year 19,029,315$ 557,258$ 127,416$ 7,161,406$ -$ -$ 26,875,395$ CITY OF TYLER, TEXASCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020GENERAL GOVERNMENTAL FUNDSTOTAL GENERAL GOVERNMENTAL FUNDSDEVELOPMENT SERVICESTOURISM AND CONVENTION RAINY DAY ELIMINATIONSFAIR PARKING GARAGE 80
81
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted to
expenditures for particular purposes.
The Police Forfeiture Fund was established to account for the receipt and disbursement of funds
seized by the Police Department and subsequently awarded to the City through court-ordered
judgements, primarily cases involving illegal drugs.
The Court Special Fee Fund was established to track the receipt of court fees restricted for court
technology purchases by the State of Texas.
The Hotel-Motel Occupancy Tax Fund was established to account for the receipt and
disbursement of funds generated by the Hotel-Motel Occupancy Tax.
The Donations Fund was established to account for the receipt and disbursement of funds for
specified miscellaneous projects.
The Passenger Facility Charge Fund was established to account for the receipt and
disbursement of fees collected during the purchase of airline travel tickets and/or fees collected
from the rental of vehicles at Tyler Pounds Regional Airport.
The Public, Educational and Governmental Access Channel (PEG) Fee Fund was established
to account for the receipt and disbursement of funds to be spent on governmental access channel
facilities and related capital items.
The CDBG Fund was established to account for the receipt and disbursement of CDBG Grant
monies allocated to the City.
The Home Grant Fund was established to account for the receipt and disbursement of Home
Grant monies allocated to the City to provide affordable housing for low-income households.
The Housing Assistance Payment Fund was established to account for the receipt and
disbursement of Department of Housing and Urban Development- Housing Assistance Payments
Program Fund
The State and Federal Grants Fund was created to account for the receipt and disbursement of
Federal and State Grants for which no separate fund has been established. These are generally
fairly small grants which are expended fairly quickly.
82
SPECIAL REVENUE FUNDS, CONTINUED
The Transit System Fund was established to account for the receipt and disbursement of Federal
and State Grant Funds received for the operation of the City’s Transit System.
The TIF/TIRZ #3 and #4 Funds were established to encourage economic development in the
Downtown area. These Funds account for additional value and associated taxes received from the
property tax and sales tax on improvements and new construction within the zones.
CAPITAL PROJECTS FUND
The General Capital Projects Fund is funded periodically by excesses remaining in the General
Fund and is used to pay for one time only capital expenditures.
The Street Improvement Capital Projects Fund is funded through $0.02 of the City’s property tax
rate and is used to pay for street improvements in the City as needed.
PERMANENT FUND
The Cemeteries Fund was established to provide perpetual care and maintenance to the City’s
cemeteries.
C-1Page 1 of 2CDBGHOUSINGASSETSEquity in pooled cash and investments -$ -$ 5,659,459$ -$ 127,096$ 837,858$ -$ 277,654$ 424$ -$ Accounts and grants receivable 508 49 315,674 - 96 60,272 881,631 - - 8,192 Inventories - - - - - - - 4,450 - - Prepaid items - - - - - - - - - - Cash - restricted 656,129 49,899 - 373,384 - - - - - 1,292,843 Total assets 656,637 49,948 5,975,133 373,384 127,192 898,130 881,631 282,104 424 1,301,035 LIABILITIES Accounts payable 31,469 21,135 - 10,511 - 2,194 263,144 1,151 - 44,336 Deposits and other refundable balances 158,899 - - - - - - 2,565 - 96,746 Due to other funds - - - - - - 555,729 - - - Unearned revenue - - - - - - - - - - Total liabilities 190,368 21,135 - 10,511 - 2,194 818,873 3,716 - 141,082 FUND BALANCESNonspendable:Inventories - - - - - - - 4,450 - - Permanent fund principal - - - - - - - - - - Restricted for:Public safety 466,269 28,813 - - - - - - - - Capital improvements - - - - - - - - - - Tourism and convention - - 5,975,133 - - - - - - - Donor restrictions - - - 362,873 - - - - - Airport improvements - - - - 127,192 - - - - - Communications - - - - - 895,936 - - - - Housing assistance - - - - - - - - 424 1,159,953 Grant restrictions - - - - - - 62,758 273,938 - - Assign to:Capital projects - - - - - - - - - - Cemetery maintenance - - - - - - - - - - Unassigned - - - - - - - - - - Total fund balances 466,269 28,813 5,975,133 362,873 127,192 895,936 62,758 278,388 424 1,159,953 Total liabilities and fund balances 656,637$ 49,948$ 5,975,133$ 373,384$ 127,192$ 898,130$ 881,631$ 282,104$ 424$ 1,301,035$ CITY OF TYLER, TEXASSPECIAL REVENUE FUNDPOLICE FORFEITURECOURT SPECIAL FEEHOTEL-MOTEL OCCUPANCY DONATIONSPASSENGER FACILITY CHARGE PEG FEESEPTEMBER 30, 2020COMBINING BALANCE SHEETNON-MAJOR GOVERNMENTAL FUNDSHOME GRANTHOUSING ASSISTANCE PAYMENT 83
C-1Page 2 of 2CEMETERIESASSETSEquity in pooled cash and investments -$ -$ -$ 520,199$ 6,194$ 7,428,884$ 419,868$ 313,054$ 150,055$ 8,311,861$ Accounts and grants receivable 130,631 607,616 8 2,358 29 2,007,064 215 280 2,523 2,010,082 Inventories - - - - - 4,450 - - - 4,450 Prepaid items 102 - - - - 102 - - - 102 Cash - restricted - 47,263 - - - 2,419,518 - - 3,092,164 5,511,682 Total assets 130,733 654,879 8 522,557 6,223 11,860,018 420,083 313,334 3,244,742 15,838,177 LIABILITIES Accounts payable 15,817 85,528 - 1,350 - 476,635 14,910 46,576 7,752 545,873 Deposits and other refundable balances - - - - - 258,210 - - - 258,210 Due to other funds 114,087 518,682 - - - 1,188,498 - - - 1,188,498 Unearned revenue 829 - - - - 829 - - - 829 Total Liabilities 130,733 604,210 - 1,350 - 1,924,172 14,910 46,576 7,752 1,993,410 FUND BALANCESNonspendable:Inventories - - - - - 4,450 - - - 4,450 Permanent fund principal - - - - - - - - 3,094,567 3,094,567 Restricted for:Public safety - - - - - 495,082 - - - 495,082 Capital improvements - - 8 521,207 6,223 527,438 - - - 527,438 Tourism and convention - - - - - 5,975,133 - - - 5,975,133 Donor restrictions - - - - - 362,873 - - - 362,873 Airport improvements - - - - - 127,192 - - - 127,192 Communications - - - - - 895,936 - - - 895,936 Housing assistance - - - - - 1,160,377 - - - 1,160,377 Grant restrictions - 50,669 - - - 387,365 - - - 387,365 Assign to:Capital projects - - - - - - 405,173 266,758 - 671,931 Unassigned - - - - - - - - 142,423 142,423 Total fund balances - 50,669 8 521,207 6,223 9,935,846 405,173 266,758 3,236,990 13,844,767 Total liabilities and fund balances 130,733$ 654,879$ 8$ 522,557$ 6,223$ 11,860,018$ 420,083$ 313,334$ 3,244,742$ 15,838,177$ TIF / TIRZ #4 FUNDCITY OF TYLER, TEXASNON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEETSEPTEMBER 30, 2020TRANSIT SYSTEMTOTAL NON-MAJOR GOVERNMENTAL FUNDSSTREET PROJECTSCAPITAL PROJECTS FUNDSPECIAL REVENUE FUNDPERMANENT FUNDSTIF / TIRZ #3 FUNDTOTAL SPECIAL REVENUE GENERAL CAPITAL PROJECTSSTATE AND FEDERAL GRANTSTIF / TIRZ #2 FUND 84
C-2Page 1 of 2CDBGHOUSINGREVENUESTaxes:Property -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Franchise - - - - - 123,775 - - - - Sales and use - - 2,847,784 - - - - - - - Licenses and permits - - - - - - - - - - Grants - - - - - - 1,651,682 4,499 - 8,972,889 Fines, forfeitures and penalties 33,223 444,358 - - - - - - - - Revenues from use of money and property 10,752 528 110,961 - 2,347 15,988 - - 8 21,111 Donations - - - 168,415 - - - - - - Charges for services - - - - 194,000 - - - - - Miscellaneous 400 - 10,000 - - - 11,912 - - - Total revenues 44,375 444,886 2,968,745 168,415 196,347 139,763 1,663,594 4,499 8 8,994,000 EXPENDITURESCurrent:General government - - - 25 - 105,532 - - - - Public safety - 391,303 - 37,729 - - - - - - Culture and recreation - - - 158,900 - - - - - - Public services 41,000 - 1,692,489 18,187 - - 159,580 4,499 - 8,319,259 Capital outlay 107,778 - 45,680 - - 76,191 1,496,650 - - - Debt service:Principal - 83,397 - - - - - - - - Interest and fiscal charges 519 7,657 - - - - - - - - Total expenditures 149,297 482,357 1,738,169 214,841 - 181,723 1,656,230 4,499 - 8,319,259 Excess (deficiency) of revenuesover (under) expenditures (104,922) (37,471) 1,230,576 (46,426) 196,347 (41,960) 7,364 - 8 674,741 OTHER FINANCING SOURCES (USES)Transfers in - - 45,680 - - - - - - - Transfers out - (1,458) (1,858,500) - (113,667) - - - - - Total other financing sources (uses) - (1,458) (1,812,820) - (113,667) - - - - - Change in net assets (104,922) (38,929) (582,244) (46,426) 82,680 (41,960) 7,364 - 8 674,741 Fund balances - beginning of year 571,191 67,742 6,557,377 409,299 44,512 937,896 55,394 278,388 416 485,212 Fund balances - end of year 466,269$ 28,813$ 5,975,133$ 362,873$ 127,192$ 895,936$ 62,758$ 278,388$ 424$ 1,159,953$ PEG FEEHOUSING ASSISTANCE PAYMENTHOME GRANTCITY OF TYLER, TEXASNON-MAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020SPECIAL REVENUE FUNDPASSENGER FACILITY CHARGEHOTEL-MOTEL OCCUPANCY POLICE FORFEITURECOURT SPECIAL FEE DONATIONS 85
C-2Page 2 of 2CEMETERIESREVENUESTaxes:Property -$ -$ -$ 92,699$ 1,499$ 94,198$ -$ -$ -$ 94,198$ Franchise - - - - - 123,775 - - - 123,775 Sales and use - - - - - 2,847,784 - - - 2,847,784 Licenses and permits - - - - - - - - 6,525 6,525 Grants 308,143 3,040,557 - - - 13,977,770 - - - 13,977,770 Fines, forfeitures and penalties - - - - - 477,581 - - - 477,581 Revenues from use of money and property - 11,100 - 9,314 123 182,232 6,302 8,329 61,511 258,374 Donations - - - - - 168,415 - - - 168,415 Charges for services - 91,560 - - - 285,560 - - 186,053 471,613 Miscellaneous - 12,310 - - - 34,622 7,736 - - 42,358 Total revenues 308,143 3,155,527 - 102,013 1,622 18,191,937 14,038 8,329 254,089 18,468,393 EXPENDITURESCurrent:General government - - - 1,350 - 106,907 - - - 106,907 Public safety - - - - - 429,032 - - - 429,032 Culture and recreation - - - - - 158,900 - - 240,072 398,972 Public services 270,643 2,479,407 - - - 12,985,064 - - - 12,985,064 Capital outlay 37,500 687,102 - - - 2,450,901 618,080 1,398,844 67,525 4,535,350 Debt service:Principal - - - - - 83,397 52,717 - - 136,114 Interest and fiscal charges - - - - - 8,176 9,539 - - 17,715 Total expenditures 308,143 3,166,509 - 1,350 - 16,222,377 680,336 1,398,844 307,597 18,609,154 Excess (deficiency) of revenuesover (under) expenditures - (10,982) - 100,663 1,622 1,969,560 (666,298) (1,390,515) (53,508) (140,761) OTHER FINANCING SOURCES (USES)Transfers in - 13,658 - - 3 59,341 674,731 1,546,952 212,368 2,493,392 Transfers out - - (3) - - (1,973,628) - - (113,547) (2,087,175) Total other financing sources (uses) - 13,658 (3) - 3 (1,914,287) 674,731 1,546,952 98,821 406,217 Change in net assets - 2,676 (3) 100,663 1,625 55,273 8,433 156,437 45,313 265,456 Fund balances - beginning of year - 47,993 11 420,544 4,598 9,880,573 396,740 110,321 3,191,677 13,579,311 Fund balances - end of year - 50,669 8 521,207 6,223 9,935,846 405,173 266,758 3,236,990 13,844,767 CITY OF TYLER, TEXASNON-MAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020TRANSIT SYSTEMGENERAL CAPITAL PROJECTSSTREET PROJECTSCAPITAL PROJECTS FUNDTIF / TIRZ #3 FUNDTIF / TIRZ #2 FUNDPERMANENT FUNDSSPECIAL REVENUE FUNDTOTAL NON-MAJOR GOVERNMENTAL FUNDSSTATE AND FEDERAL GRANTSTOTAL SPECIAL REVENUE FUNDSTIF / TIRZ #4 FUND 86
C-3
ACTUAL
REVENUES
Fines, forfeitures and penalties 41,000$ 33,223$ (7,777)$
Revenues from use of money and property 6,981 11,152 4,171
Total revenues 47,981 44,375 (3,606)
EXPENDITURES
Public services:
Supplies and services 185,700 41,000 144,700
Capital outlay - 107,778 (107,778)
Debt service:
Interest - 519 (519)
Total expenditures 185,700 149,297 36,403
Excess of revenues over (under) expenditures - GAAP basis (137,719)$ (104,922) 32,797$
Fund balance - beginning of year 571,191
Fund balance - end of year 466,269$
FINAL BUDGET
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)
CITY OF TYLER, TEXAS
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
FUND BALANCE - BUDGET AND ACTUAL
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
POLICE FORFEITURE FUND
87
C-4
ACTUAL
REVENUES
Fines, forfeitures and penalties 648,500$ 444,358$ (204,142)$
Revenues from use of money and property 4,019 528 (3,491)
Total revenues 652,519 444,886 (207,633)
EXPENDITURES
Public safety:
Salaries and benefits 186,804 190,911 (4,107)
Supplies and services 259,150 198,230 60,920
Maintenance 52,112 2,162 49,950
Total expenditures 498,066 391,303 106,763
OTHER FINANCING SOURCES (USES)
Principal paid on debt - (83,397) (83,397)
Interest and fiscal charges - (7,657) (7,657)
Transfer out (1,458) (1,458) -
Total other financing sources (uses) (1,458) (92,512) (91,054)
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis 152,995$ (38,929) (191,924)$
Fund balance - beginning of year 67,742
Fund balance - end of year 28,813$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
COURT SPECIAL FEE FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
88
C-5
ACTUAL
REVENUES
Taxes 3,867,192$ 2,847,784$ (1,019,408)$
Revenues from use of money and property 96,327 110,961 14,634
Miscellaneous 10,000 10,000 -
Total revenues 3,973,519 2,968,745 (1,004,774)
EXPENDITURES
Hotel-motel administration:
Texas Rose Festival 9,000 - 9,000
Discovery Place 32,400 32,400 -
East Texas Symphony 50,000 50,000 -
Tyler Museum of Art 35,000 35,000 -
Historical Museum 13,500 13,500 -
Historic Aviation Museum 13,500 13,500 -
Visitors and Convention Bureau 666,500 666,500 -
McClendon House 4,500 4,500 -
Tyler Civic Theatre 4,050 - 4,050
Sports Tyler Award 25,000 25,000 -
Supplies and services 1,294,889 852,089 442,800
Contingency 135,000 - 135,000
Capital outlay - 45,680 (45,680)
Total expenditures 2,283,339 1,738,169 545,170
Excess of revenues over (under) expenditures 1,690,180 1,230,576 (1,549,944)
OTHER FINANCING SOURCES (USES)
Transfers in - 45,680 45,680
Transfers out (1,858,500) (1,858,500) -
Total other financing sources (uses) (1,858,500) (1,812,820) 45,680
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis (168,320)$ (582,244) (413,924)$
Fund balance - beginning of year 6,557,377
Fund balance - end of year 5,975,133$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
HOTEL-MOTEL OCCUPANCY TAX FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
89
C-6
ACTUAL
REVENUES
Revenues from use of money and property 6,390$ 2,347$ (4,043)$
Charges for services 341,000 194,000 (147,000)
Total revenues 347,390 196,347 (151,043)
EXPENDITURES
Public services
Supplies and services - - -
Total expenditures - - -
Excess of revenues over (under) expenditures 347,390 196,347 (151,043)
OTHER FINANCING SOURCES (USES)
Transfers out (341,333) (113,667) 227,666
Total other financing sources (uses) (341,333) (113,667) 227,666
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis 6,057$ 82,680 76,623$
Fund balance - beginning of year 44,512
Fund balance - end of year 127,192$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
PASSENGER FACILITY CHARGE FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
90
C-7
ACTUAL
REVENUES
Franchise fees 255,850$ 123,775$ (132,075)$
Revenues from use of money and property 15,190 15,988 798
Total revenues 271,040 139,763 (131,277)
EXPENDITURES
General government 155,681 105,532 50,149
Capital outlay 91,754 76,191 15,563
Total expenditures 247,435 181,723 65,712
Excess of revenues over (under) expenditures 23,605 (41,960) (65,565)
OTHER FINANCING SOURCES (USES)
Transfers out - - -
Total other financing sources (uses) - - -
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis 23,605$ (41,960) (65,565)$
Fund balance - beginning of year 937,896
Fund balance - end of year 895,936$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
PEG FEE FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
91
C-8
ACTUAL
REVENUES
Grants 2,527,571$ 1,651,682$ (875,889)$
Miscellaneous 12,000 11,912 (88)
Total revenues 2,539,571 1,663,594 (875,977)
EXPENDITURES
Public services:
Salaries and benefits 118,493 37,509 80,984
Supplies and services 181,008 118,258 62,750
Utilities 60 1,941 (1,881)
Maintenance 8,140 1,872 6,268
Capital outlay 2,231,870 1,496,650 735,220
Total expenditures 2,539,571 1,656,230 883,341
Excess of revenues over (under) expenditures - GAAP basis -$ 7,364 7,364$
Fund balance - beginning of year 55,394
Fund balance - end of year 62,758$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
CDBG FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
92
C-9
ACTUAL
REVENUES
Grants 1,264,136$ 4,499$ (1,259,637)$
Total revenues 1,264,136 4,499 (1,259,637)
EXPENDITURES
Public services:
Salaries and benefits 32,935 3,799 29,136
Supplies and services 885,154 700 884,454
Capital outlay 577,580 - 577,580
Total expenditures 1,495,669 4,499 1,491,170
Excess of revenues over (under) expenditures - GAAP basis (231,533)$ - 231,533$
Fund balance - beginning of year 278,388
Fund balance - end of year 278,388$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
HOME GRANT FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
93
C-10
ACTUAL
REVENUES
Grants 8,054,261$ 8,972,889$ 918,628$
Revenue from use of money and property 21,431 21,111 (320)
Total revenues 8,075,692 8,994,000 918,308
EXPENDITURES
Public services:
Salaries and benefits 588,121 456,834 131,287
Supplies and services 7,849,222 7,822,635 26,587
Utilities 14,383 9,340 5,043
Maintenance 37,334 30,450 6,884
Total expenditures 8,489,060 8,319,259 169,801
Excess of revenues over (under) expenditures - GAAP basis (413,368)$ 674,741 1,088,109$
Fund balance - beginning of year 485,212
Fund balance - end of year 1,159,953$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
HOUSING ASSISTANCE FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
94
C-11
ACTUAL
REVENUES
Grants 3,596,650$ 3,040,557$ (556,093)$
Charges for services 155,000 91,560 (63,440)
Revenue from use of money and property 10,000 11,100 1,100
Miscellaneous 25,000 12,310 (12,690)
Total revenues 3,786,650 3,155,527 (631,123)
EXPENDITURES
Public services
Salaries and benefits 1,299,623 962,446 337,177
Supplies and services 1,254,033 1,112,841 141,192
Utilities 12,513 15,121 (2,608)
Maintenance 545,688 388,999 156,689
Capital outlay 1,155,450 687,102 468,348
Total expenditures 4,267,307 3,166,509 1,100,798
Excess of revenues over (under) expenditures (480,657) (10,982) (1,731,921)
OTHER FINANCING SOURCES (USES)
Transfers in 463,046 13,658 (631,123)
Total other financing sources (uses) 463,046 13,658 (631,123)
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis (17,611)$ 2,676 20,287$
Fund balance - beginning of year 47,993
Fund balance - end of year 50,669$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
TRANSIT SYSTEM FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
95
C-12
ACTUAL
REVENUES
Taxes 93,636$ 92,699$ (937)$
Revenue from use of money and property 6,508 9,314 2,806
Total revenues 100,144 102,013 1,869
EXPENDITURES
Special services 5,000 1,350 3,650
Total expenditures 5,000 1,350 3,650
Excess of revenues over (under) expenditures 95,144 100,663 (1,781)
OTHER FINANCING SOURCES (USES)
Transfers in - - -
Total other financing sources (uses) - - -
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis 95,144$ 100,663 5,519$
Fund balance - beginning of year 420,544
Fund balance - end of year 521,207$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
TIF / TIRZ #3 FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
96
C-13
ACTUAL
REVENUES
Taxes 1,029$ 1,499$ 470$
Revenue from use of money and property - 123 123
Total revenues 1,029 1,622 593
EXPENDITURES
Special services - - -
Total expenditures - - -
Excess of revenues over (under) expenditures 1,029 1,622 593
OTHER FINANCING SOURCES (USES)
Transfers in - 3 3
Total other financing sources (uses) - 3 3
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis 1,029$ 1,625 596$
Fund balance - beginning of year 4,598
Fund balance - end of year 6,223$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
TIF / TIRZ #4 FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
97
C-14
ACTUAL
REVENUES
Revenue from use of money and property 5,552$ 6,302$ 750$
Miscellaneous 25,000 7,736 (17,264)
Total revenues 30,552 14,038 (16,514)
EXPENDITURES
Capital outlay 525,751 618,080 (92,329)
Total expenditures 525,751 618,080 (92,329)
Excess of revenues over (under) expenditures (495,199) (604,042) (108,843)
OTHER FINANCING SOURCES (USES)
Principal paid on debt (62,254) (52,717) 9,537
Interest and fiscal charges - (9,539) (9,539)
Transfers in 212,492 674,731 462,239
Total other financing sources (uses) 150,238 612,475 462,237
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis (344,961)$ 8,433 353,394$
Fund balance - beginning of year 396,740
Fund balance - end of year 405,173$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
CAPITAL PROJECTS FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
98
C-15
ACTUAL
REVENUES
Trust fund:
Revenue from use of money and property 52,368$ 58,934$ 6,566$
Mausoleum and lot sales 100,180 43,046 (57,134)
Operations:
Revenues from use of money and property 3,369 2,577 (792)
Licenses and permits 13,450 6,525 (6,925)
Mausoleum and lot sales 212,820 143,007 (69,813)
Total revenues 382,187 254,089 (128,098)
EXPENDITURES
Operations:
Salaries and benefits 144,653 109,028 35,625
Supplies and services 40,041 47,929 (7,888)
Utilities 44,722 47,109 (2,387)
Maintenance 36,839 36,006 833
Capital outlay 84,073 67,525 16,548
Total expenditures 350,328 307,597 26,183
Excess of revenues over (under) expenditures 31,859 (53,508) (154,281)
OTHER FINANCING SOURCES (USES)
Transfers in 212,368 212,368 -
Transfers out (113,547) (113,547) -
Total other financing sources (uses) 98,821 98,821 -
Excess of revenues and other financing sources over (under)
expenditures and other financing uses - GAAP basis 130,680$ 45,313 (85,367)$
Fund balance - beginning of year 3,191,677
Fund balance - end of year 3,236,990$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
CEMETERIES FUND
DETAILED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
99
INTERNAL SERVICE FUNDS
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 City on a cost-reimbursement basis.
The Productivity Improvement Fund was established to track performance pay of the City
employees. This fund accounts for City University, Lean Six Sigma, and the Internal Audit
functions.
The Fleet Maintenance and Replacement Fund performs maintenance and repair work on
vehicles of all City departments. The Fund also acquires vehicles and equipment for use by all
City departments.
The Property and Liability Insurance Fund accounts for the City’s property, casualty, liability,
disability and worker’s compensation insurance programs.
The Employee Benefits Fund accounts for the City’s self-insurance program for health and dental
insurance as well as life insurance for current employees.
The Retiree Benefits Fund accounts for the City’s self-insurance program for health and dental
insurance as well as life insurance for retired employees.
The Property and Facility Management Fund was established to facilitate maintenance on City’s
facilities including roof and HVAC repairs and replacement.
The Technology Fund was established to account for the City’s investment and maintenance of
technology and office automation.
D-1ASSETSCurrent assets:Equity in pooled cash and investments 2,110,533$ 7,467,724$ 1,575,002$ 6,086,069$ -$ 1,192,353$ 1,330,067$ 19,761,748$ Prepaid expenses 4,507 - - - 71,347 - 108 75,962 Accounts receivable (net) 1,730 21,141 1,180 160,406 135,782 (55) 1,161 321,345 Inventories - at average cost - 319,266 - - - - - 319,266 Total current assets 2,116,770 7,808,131 1,576,182 6,246,475 207,129 1,192,298 1,331,336 20,478,321 Noncurrent assets:Other post employment benefit assets - - - 14,707 - - - 14,707 Capital assets:Land - 93,938 - - - - - 93,938 Construction in progress - 14,500 - - - - - 14,500 Buildings - 532,777 - - - 961,752 3,267 1,497,796 Improvements other than buildings - 713,213 - - - 1,513,868 6,488 2,233,569 Machinery and equipment - 37,490,647 - - - 79,757 11,442,719 49,013,123 Infrastructure - - - - - 194,329 - 194,329 Less: accumulated depreciation - (23,640,368) - - - (1,117,898) (9,429,991) (34,188,257) Total capital assets, net ofaccumulated depreciation - 15,204,707 - - - 1,631,808 2,022,483 18,858,998 Total assets 2,116,770 23,012,838 1,576,182 6,261,182 207,129 2,824,106 3,353,819 39,352,026 DEFERRED OUTFLOWS OF RESOURCESDeferred outflows related to pensions 62,146 203,203 (5,687) (2,111) (2,641) 42,924 224,127 521,961 Deferred outflows related to OPEB (187) 2,420 - (544) (247) (343) (199,423) (198,324) Total deferred outflows of resources 61,959 205,623 (5,687) (2,655) (2,888) 42,581 24,704 323,637 LIABILITIES Current liabilities:Accounts and contracts payable 14,678 568,827 39,157 9,680 75,410 22,074 229,296 959,122 Insurance claims payable - - 872,229 620,137 52,800 - - 1,545,166 Accrued interest payable - 4,428 - - - - 18,113 22,541 Current portion of compensatedabsences payable 153 2,344 34 - - 2,507 5,293 10,331 Current portion of capital lease payable - - - - - - 628,851 628,851 Total current liabilities 14,831 575,599 911,420 629,817 128,210 24,581 881,553 3,166,011 Noncurrent liabilities:Compensated absences payable 2,911 44,544 644 - - 47,633 100,575 196,307 Net pension obligation 243,024 838,687 153,752 3,366 (7,958) 174,222 881,601 2,286,694 Net OPEB obligation 85,404 279,387 64,401 535 (5,654) 51,686 350,287 826,046 Capital lease payable - - - - - - 444,542 444,542 Total noncurrent liabilities 331,339 1,162,618 218,797 3,901 (13,612) 273,541 1,777,005 3,753,589 Total liabilities 346,170 1,738,217 1,130,217 633,718 114,598 298,122 2,658,558 6,919,600 DEFERRED INFLOWS OF RESOURCESDeferred inflows related to pensions 31,017 176,809 - 11,850 4,923 30,117 273,302 528,018 Deferred inflows related to OPEB 19,029 121,291 45,928 9,648 4,386 23,795 12,831 236,908 Total deferred inflows of resources 50,046 298,100 45,928 21,498 9,309 53,912 286,133 764,926 NET POSITIONNet investment in capital assets - 15,204,707 - - - 1,631,808 2,022,483 18,858,998 Unrestricted 1,782,513 5,977,437 394,350 5,603,311 80,334 882,845 (1,588,651) 13,132,139 Total net position 1,782,513$ 21,182,144$ 394,350$ 5,603,311$ 80,334$ 2,514,653$ 433,832$ 31,991,137$ CITY OF TYLER, TEXASINTERNAL SERVICE FUNDSCOMBINING STATEMENT OF NET POSITIONSEPTEMBER 30, 2020RETIREE BENEFITS TECHNOLOGYPROPERTY AND LIABILITY INSURANCEPRODUCTIVITY IMPROVEMENTEMPLOYEE BENEFITS TOTALFLEET MAINTENANCE AND REPLACEMENTPROPERTY AND FACILITY MANAGEMENT102
D-2ELIMINATIONSOPERATING REVENUESCharges for services 750,000$ 10,052,978$ 1,903,240$ 5,949$ -$ 506,156$ 5,407,758$ -$ 18,626,081$ Contributions - - - 10,315,239 822,404 - - - 11,137,643 Miscellaneous - 19,261 75,053 774,150 1,595,263 - 221,000 - 2,684,727 Total operating revenues 750,000 10,072,239 1,978,293 11,095,338 2,417,667 506,156 5,628,758 - 32,448,451 OPERATING EXPENSESGarage operations - 5,915,499 - - - - - - 5,915,499 Depreciation - 3,393,103 - - - 143,452 648,491 - 4,185,046 Insurance claims - - 2,146,669 9,779,023 1,366,918 (5,644) - - 13,286,966 Administrative 73,703 - 248,844 1,023,463 1,008,642 301,607 4,119,729 - 6,775,988 Special services 758,438 - - 75,243 40,761 - - - 874,442 Maintenance 76,312 - - - - 333,928 - - 410,240 Total operating expenses 908,453 9,308,602 2,395,513 10,877,729 2,416,321 773,343 4,768,220 - 31,448,181 Operating income (loss) (158,453) 763,637 (417,220) 217,609 1,346 (267,187) 860,538 - 1,000,270 NON-OPERATING REVENUES (EXPENSES)Revenues from use of money and property 45,860 139,063 32,150 96,535 359 44,842 56,198 - 415,007 Gain (loss) on sale of assets - 261,091 - - - - - - 261,091 Interest expense - - - - - - (26,051) - (26,051) Total non-operating revenues (expenses) 45,860 400,154 32,150 96,535 359 44,842 30,147 - 650,047 Income (loss) before transfers (112,593) 1,163,791 (385,070) 314,144 1,705 (222,345) 890,685 - 1,650,317 Transfers in 781,569 173,227 - - - 227,611 320,000 (22,155) 1,480,252 Transfers out - (145,551) (1,880) (670) (287) (1,067) (10,665) 22,155 (137,965) Change in net position 668,976 1,191,467 (386,950) 313,474 1,418 4,199 1,200,020 - 2,992,604 Net position - beginning of year 1,113,537 19,990,677 781,300 5,289,837 78,916 2,510,454 (766,188) - 28,998,533 Net position - end of year 1,782,513$ 21,182,144$ 394,350$ 5,603,311$ 80,334$ 2,514,653$ 433,832$ -$ 31,991,137$ CITY OF TYLER, TEXASINTERNAL SERVICE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020FLEET MAINTENANCE AND REPLACEMENTRETIREE BENEFITSPROPERTY AND FACILITY MANAGEMENT TECHNOLOGYPROPERTY AND LIABILITY INSURANCEPRODUCTIVITY IMPROVEMENTEMPLOYEE BENEFITSTOTAL 103
D-3Page 1 of 2ELIMINATIONSCASH FLOWS FROM OPERATING ACTIVITIESCash received from customers and users 494,342$ 10,058,190$ 1,975,386$ 10,938,224$ 2,326,193$ 486,656$ 5,625,915$ -$ 31,904,906$ Cash paid to suppliers for goods and services (851,329) (5,118,162) 27,827 (1,033,367) (1,020,084) (502,057) (3,001,445) - (11,498,617) Cash paid to employees for services (81,879) (881,364) (243,749) (58,823) (26,673) (121,852) (1,159,222) - (2,573,562) Insurance claims paid - - (1,938,964) (9,401,761) (1,530,386) - - - (12,871,111) Net cash provided by (used in) operating activities (438,866) 4,058,664 (179,500) 444,273 (250,950) (137,253) 1,465,248 - 4,961,616 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIESTransfers in from other funds 781,569 173,227 - - - 227,611 320,000 (22,155) 1,480,252 Transfers out to other funds - (145,551) (1,880) (670) (287) (1,067) (10,665) 22,155 (137,965) Net cash provided by (used in) non-capitalfinancing activities 781,569 27,676 (1,880) (670) (287) 226,544 309,335 - 1,342,287 CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIESAcquisition, construction, and retirement of capital assets - (3,514,800) - - 29,061 (100,920) (930,309) - (4,516,968) Interest paid - - - - - - (21,362) - (21,362) Payment of capital lease obligations - - - - - - (427,349) - (427,349) Proceeds from sale of assets - 261,091 - - - - - - 261,091 Net cash provided by (used in) capital and relatedfinancing activities - (3,253,709) - - 29,061 (100,920) (1,379,020) - (4,704,588) CASH FLOWS FROM INVESTING ACTIVITIESInterest and dividends 45,920 136,774 35,953 101,083 592 45,964 38,487 - 404,773 Net cash provided by investing activities 45,920 136,774 35,953 101,083 592 45,964 38,487 - 404,773 Net increase (decrease) in cash and cash equivalents 388,623 969,405 (145,427) 544,686 (221,584) 34,335 434,050 - 2,004,088 Cash and cash equivalents - beginning of year 1,471,910 6,498,319 1,720,429 5,541,383 221,584 1,158,018 896,017 - 17,507,660 Cash and cash equivalents - end of year 1,860,533$ 7,467,724$ 1,575,002$ 6,086,069$ -$ 1,192,353$ 1,330,067$ -$ 19,511,748$ PROPERTY AND LIABILITY INSURANCEPRODUCTIVITY IMPROVEMENTEMPLOYEE BENEFITSTOTALCITY OF TYLER, TEXASINTERNAL SERVICE FUNDSCOMBINING STATEMENT OF CASH FLOWSFOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020FLEET MAINTENANCE AND REPLACEMENTRETIREE BENEFITSPROPERTY AND FACILITY MANAGEMENT TECHNOLOGY104
D-3Page 2 of 2Operating income (loss) (158,453)$ 763,637$ (417,220)$ 217,609$ 1,346$ (267,187)$ 860,538$ 1,000,270$ Adjustments to reconcile operating income (loss) tonet cash provided by (used in) operating activities:Depreciation expense - 3,393,103 - - - 143,452 648,491 4,185,046 (Increase) decrease in accounts receivable - (14,049) - (157,114) (91,474) - - (262,637) (Increase) decrease in prepaid expenses (4,507) - - - (4,524) - 1,715 (7,316) (Increase) decrease in inventories - 224 - - - - - 224 (Increase) decrease in deferred outflows related to pensions 10,783 68,186 26,908 6,162 3,003 13,953 124,283 253,278 (Increase) decrease in deferred outflows related to OPEB (286) 56 2,373 (12,428) (115) 1,236 204,722 195,558 Increase (decrease) in accounts payable (16,579) (57,493) 22,341 7,091 7,478 1,264 (10,516) (46,414) Increase (decrease) in claims payable - - 229,998 377,262 (163,468) - - 443,792 Increase (decrease) in accrued interest payable - - - - - - 4,528 4,528 Increase (decrease) in compensated absences payable (2,691) 8,000 (807) 2,589 1,109 (7,598) 23,051 23,653 Increase (decrease) in post employment benefits liability (21,482) (137,296) (54,270) 535 (5,654) (28,367) (248,743) (495,277) Increase (decrease) in deferred inflows related to pensions 20,103 127,116 50,164 11,443 4,903 26,012 231,693 471,434 Increase (decrease) in deferred inflows related to OPEB 16,741 112,653 42,099 9,692 4,404 22,028 - 207,617 Increase (decrease) in net pension obligation (32,495) (205,473) (81,086) (18,568) (7,958) (42,046) (374,514) (762,140) Total adjustments (30,413) 3,295,027 237,720 226,664 (252,296) 129,934 604,710 4,211,346 Net cash provided by (used in) operating activities (188,866)$ 4,058,664$ (179,500)$ 444,273$ (250,950)$ (137,253)$ 1,465,248$ 5,211,616$ CITY OF TYLER, TEXASINTERNAL SERVICE FUNDSCOMBINING STATEMENT OF CASH FLOWSFOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020FLEET MAINTENANCE AND REPLACEMENTRETIREE BENEFITSPROPERTY AND FACILITY MANAGEMENT TECHNOLOGYPROPERTY AND LIABILITY INSURANCEPRODUCTIVITY IMPROVEMENTReconciliation of Operating Income to Net CashProvided by (used in) Operating ActivitiesEMPLOYEE BENEFITS TOTAL 105
D-4
ACTUAL
REVENUES
Revenues from use of money and property 13,366$ 45,860$ 32,494$
Charges for services 920,000 750,000 (170,000)
Total revenues 933,366 795,860 (137,506)
Transfers in 611,569 781,569 170,000
Total revenues - budget and GAAP basis 1,544,935$ 1,577,429$ 32,494$
EXPENSES
Salaries and benefits 215,104$ 110,004$ 105,100$
Supplies and services 2,795,478 800,664 1,994,814
Capital outlay 3,400 3,273 127
Total expenses - budget basis 3,013,982$ 913,941 2,100,041$
Financial statement adjustments:
Adjustment for net pension liability (1,609)
Adjustment for OPEB liability (3,879)
Total expenses - GAAP basis 908,453$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
PRODUCTIVITY IMPROVEMENT FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
106
D-5
ACTUAL
REVENUES
Revenues from use of money and property 60,000$ 139,063$ 79,063$
Current service charges 10,521,743 10,052,978 (468,765)
Miscellaneous 4,000 19,261 15,261
Sale of assets 368,000 415,100 47,100
Total revenues 10,953,743 10,626,402 (327,341)
Transfers out - COGS (72,933) (145,551) (72,618)
Transfers in - 173,227 173,227
Total revenues - budget basis 10,880,810$ 10,654,078 (226,732)$
Financial statement adjustments:
Retirement of assets sold (154,009)
Total revenues - GAAP basis 10,500,069$
EXPENSES
Garage administration and operations:
Salaries and benefits 1,048,008$ 873,364 174,644$
Supplies and services 4,769,653 4,660,551 109,102
Utilities 66,620 59,225 7,395
Maintenance 204,472 184,723 19,749
Capital outlay 5,699,833 3,931,711 1,768,122
Total garage administration and operations 11,788,586 9,709,574 2,079,012
Total expenses - budget basis 11,788,586$ 9,709,574 2,079,012$
Financial statement adjustments:
Adjustment for net pension liability (10,171)
Adjust OPEB assets and liabilities (24,699)
Capital outlay items not expensed (3,759,205)
Depreciation expense 3,393,103
Total expenses - GAAP basis 9,308,602$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
FLEET MAINTENANCE AND REPLACEMENT FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
107
D-6
ACTUAL
REVENUES
Revenues from use of money and property 35,642$ 32,150$ (3,492)$
Collections - subrogation 50,000 75,053 25,053
Charges for services 1,886,332 1,903,240 16,908
Total revenues - budget and GAAP basis 1,971,974$ 2,010,443$ 38,469$
EXPENSES
Claims and premiums 1,784,697$ 2,146,669$ (361,972)$
Administrative 731,881 262,665 469,216
2,516,578 2,409,334 107,244
Transfers out 1,880 1,880 -
Total expenses - budget basis 2,518,458$ 2,411,214 107,244$
Financial statement adjustments:
Adjustment for net pension liability (4,014)
Adjustment for OPEB liability (9,807)
Total expenses - GAAP basis 2,397,393$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
PROPERTY AND LIABILITY INSURANCE FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
108
D-7
ACTUAL
REVENUES
Revenues from use of money and property 67,815$ 96,535$ 28,720$
Charges for services 23,648 5,949 (17,699)
Contributions from City of Tyler 8,200,050 7,997,042 (203,008)
Contributions from employees 2,337,578 2,318,197 (19,381)
Miscellaneous - 774,150 774,150
Total revenues - budget and GAAP basis 10,629,091$ 11,191,873$ 562,782$
EXPENSES
Employee insurance fund administration:
Special services 103,387$ 75,243$ 28,144$
Claims 9,206,012 9,779,023 (573,011)
Administrative 868,875 863,638 5,237
Life insurance 147,509 150,017 (2,508)
10,325,783 10,867,921 (542,138)
Transfers out 670 670 -
Total expenses - budget and GAAP basis 10,326,453$ 10,868,591$ (542,138)$
Financial statement adjustments:
Adjustment for net pension liability (919)
Adjustment for OPEB liability 10,727
Total expenses - GAAP basis 10,878,399$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
EMPLOYEE BENEFITS FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
109
D-8
ACTUAL
REVENUES
Revenues from use of money and property 35,930$ 359$ (35,571)$
Contributions from retirees 713,813 822,404 108,591
Contributions - OPEB Trust and RDS Reimbursement 2,309,578 1,595,263 (714,315)
Total revenues - budget and GAAP basis 3,059,321$ 2,418,026$ (641,295)$
EXPENSES
Employee insurance fund administration:
Special services 44,308$ 40,761$ 3,547$
Claims 2,036,930 1,366,918 670,012
Administrative fees 933,923 980,837 (46,914)
Life insurance 44,160 29,220 14,940
3,059,321 2,417,736 641,585
Transfers out 287 287 -
Total expenses - budget and GAAP basis 3,059,608$ 2,418,023$ 641,585$
Financial statement adjustments:
Adjustment for net pension liability (394)
Adjustment for OPEB liability (1,021)
Total expenses - GAAP basis 2,416,608$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
RETIREE BENEFITS FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
110
D-9
ACTUAL
REVENUES
Revenues from use of money and property 41,623$ 44,842$ 3,219$
Charges for services 506,110 506,156 46
Total revenues 547,733 550,998 3,265
Transfers in 227,611 227,611 -
Total revenues - budget and GAAP basis 775,344$ 778,609$ 3,265$
EXPENSES
Salaries and benefits 125,155$ 134,843$ (9,688)$
Supplies and services 91,669 75,719 15,950
Maintenance 511,252 426,513 84,739
Capital Outlay 566,357 100,920 465,437
Total property and facility administration 1,294,433 737,995 556,438
Transfers out 1,067 1,067 -
Total expenses - budget basis 1,295,500$ 739,062 556,438$
Financial statement adjustments:
Adjustment for net pension liability (2,081)
Adjustment for OPEB liability (5,103)
Capital outlay items not expensed (100,920)
Depreciation expense 143,452
Total expenses - GAAP basis 774,410$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
PROPERTY AND FACILITY MANAGEMENT FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
111
D-10
ACTUAL
REVENUES
Revenues from use of money and property 48,139$ 56,198$ 8,059$
Charges for services 4,726,430 5,407,758 681,328
Miscellaneous 135,000 221,000 86,000
Transfers in 997,347 320,000 (677,347)
Total revenues - budget and GAAP basis 5,906,916$ 6,004,956$ 98,040$
EXPENSES
Office technology fund administration:
Salaries and benefits 1,156,277$ 1,182,273$ (25,996)$
Supplies and services 40,837 43,115 (2,278)
Utilities 150 131 19
Maintenance 9,494 9,512 (18)
Total office technology fund administration 1,206,758 1,235,031 (28,273)
Office technology services:
Supplies and services 1,920,779 1,401,538 519,241
Utilities 304,383 159,747 144,636
Maintenance 2,557,451 1,814,209 743,242
Capital outlay - 1,382,887 (1,382,887)
Total office technology services 4,782,613 4,758,381 24,232
Transfers out 10,665 10,665 -
Total expenses - budget basis 6,000,036$ 6,004,077 (4,041)$
Financial statement adjustments:
Adjustment for net pension liability (18,538)
Adjustment for OPEB liability (44,909)
Capital outlay items not expensed (1,382,887)
Principal paid on capital leases (427,349)
Interest expense 26,051
Depreciation expense 648,491
Total expenses - GAAP basis 4,804,936$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
TECHNOLOGY FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
112
FIDUCIARY FUNDS
Fiduciary Funds are used to account for assets held in a trustee or agency capacity for others and
therefore cannot be used to support the government’s own programs.
Employee Benefit Trust Funds
The Employee Benefit Trust (section 125 Plan) Fund is used to account for the resources
accumulated and payments made on behalf of the City employees enrolled in the City’s cafeteria
plan administered by Health First.
The OPEB Trust Fund is used to account for the resources accumulated to meet ARC (annual
required contributions) and long term liability requirements associated with administering post-
employment health, dental, and life benefits for retired employees in accordance with GASB 43
and 45.
The Tyler Fire Department Relief and Retirement Fund is used to account for the resources
accumulated to be used for the retirement benefit payments to the members of the fund.
Private Purpose Trust Funds
The Greenwood Landfill Private-Purpose Trust Fund is used to accumulate resources held in
trust for Allied Waste Management and is used for closure and post-closure expenses of the
Greenwood Landfill. These closures and post-closure expenses will not begin occurring until
many years if not decades in the future.
The Lindsey Trust Fund is used to account for the endowment fund created for the charitable
purpose of making awards to police officers and firefighters employed by the City of Tyler for
outstanding service and to aid them and their families injured in the line of duty.
E-1
TOTAL
ASSETS
Equity in pooled cash 1,024,341$ 371,970$ 1,175,999$ 2,572,310$
Investments, at fair value
Equities - - 6,026,623 6,026,623
Mutual funds - 12,685,114 65,336,024 78,021,138
Total investments - 12,685,114 71,362,647 84,047,761
Receivables
Contributions receivable - - 123,849 123,849
Interest receivable 1,605 - 13,022 14,627
Total receivables 1,605 - 136,871 138,476
Total assets 1,025,946 13,057,084 72,675,517 86,758,547
LIABILITIES
Accounts payable 819,594 25,025 - 844,619
Total liabilities 819,594 25,025 - 844,619
NET POSITION
Restricted for OPEB - 13,032,059 - 13,032,059
Restricted for pensions - - 72,675,517 72,675,517
Held in trust for other purposes 206,352 - - 206,352
Total net position 206,352$ 13,032,059$ 72,675,517$ 85,913,928$
OPEB TRUST
TYLER FIRE
DEPARTMENT
RELIEF AND
RETIREMENT FUND
CITY OF TYLER, TEXAS
SEPTEMBER 30, 2020
COMBINING STATEMENT OF NET POSITION
EMPLOYEE BENEFIT TRUST FUNDS
FIDUCIARY FUNDS
EMPLOYEE
BENEFIT PLAN
(SECTION 125 PLAN)
114
E-2
TOTAL
ADDITIONS
Contributions
Employees 149,727$ -$ 1,802,967$ 1,952,694$
Employer - 3,414,159 2,577,356 5,991,515
Total contributions 149,727 3,414,159 4,380,323 7,944,209
Investment income
Interest and dividend income - 622,560 1,884,002 2,506,562
Net appreciation in fair value of investments - 276,004 3,172,916 3,448,920
Less investment expense - (64,358) (170,106) (234,464)
Total investment income - 834,206 4,886,812 5,721,018
Other income - - 35,654 35,654
Total additions 149,727 4,248,365 9,302,789 13,700,881
DEDUCTIONS
Reimbursement for benefit claims - 1,595,263 - 1,595,263
Benefits 154,766 - 7,751,378 7,906,144
Total deductions 154,766 1,595,263 7,751,378 9,501,407
Change in net position (5,039) 2,653,102 1,551,411 4,199,474
Net position - beginning of year 211,391 10,378,957 71,124,106 81,714,454
Net position - end of year 206,352$ 13,032,059$ 72,675,517$ 85,913,928$
TYLER FIRE
DEPARTMENT
RELIEF AND
RETIREMENT FUND
EMPLOYEE
BENEFIT PLAN
(SECTION 125 PLAN) OPEB TRUST
CITY OF TYLER, TEXAS
FIDUCIARY FUNDS
EMPLOYEE BENEFIT TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
115
E-3
TOTAL
ASSETS
Equity in pooled cash 2,837,242$ -$ 2,837,242$
Investments, at fair value
Equities - 89,440 89,440
Total investments - 89,440 89,440
Receivables
Interest receivable 2,200 - 2,200
Total receivables 2,200 - 2,200
Total assets 2,839,442 89,440 2,928,882
NET POSITION
Held in trust for other purposes 2,839,442$ 89,440$ 2,928,882$
LINDSEY TRUST
PRIVATE-PURPOSE
TRUST
GREENWOOD
LANDFILL
PRIVATE-PURPOSE
TRUST
CITY OF TYLER, TEXAS
FIDUCIARY FUNDS
PRIVATE-PURPOSE TRUST FUNDS
COMBINING STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
116
E-4
TOTAL
ADDITIONS
Contributions 33,000$ -$ 33,000$
Investment income
Interest and dividend income 53,034 2,420 55,454
Net appreciation in fair value of investments - 4,486 4,486
Less investment expense - (3,488) (3,488)
Total investment income 53,034 3,418 56,452
Total additions 86,034 3,418 89,452
DEDUCTIONS
Benefits - - -
Total deductions - - -
Change in net position 86,034 3,418 89,452
Net position - beginning of year 2,753,408 86,022 2,839,430
Net position - end of year 2,839,442$ 89,440$ 2,928,882$
GREENWOOD
LANDFILL
PRIVATE-PURPOSE
TRUST
LINDSEY TRUST
PRIVATE-PURPOSE
TRUST
CITY OF TYLER, TEXAS
FIDUCIARY FUNDS
PRIVATE-PURPOSE TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
117
DETAILED BUDGETARY COMPARISONS
The following schedules are additional supplementary information for the General Fund and
each Enterprise Fund.
F-1
Page 1 of 3
ACTUAL
PROPERTY TAX COLLECTIONS
Current taxes 22,545,337$ 22,384,541$ (160,796)$
Delinquent taxes 164,356 166,150 1,794
Penalty and interest 149,500 181,586 32,086
Total property tax collections 22,859,193 22,732,277 (126,916)
FRANCHISE FEES
Franchise - light and power 4,853,330 4,571,377 (281,953)
Franchise - natural gas 1,058,298 1,073,432 15,134
Franchise - telephone 472,459 659,088 186,629
Franchise - cable television 1,259,958 1,289,898 29,940
Franchise - street use fee 995,234 1,012,702 17,468
Franchise - water and sewer 2,286,408 2,394,232 107,824
Total franchise fees 10,925,687 11,000,729 75,042
SALES AND USE TAXES
General sales tax 30,046,357 30,630,636 584,279
Mixed drink tax 539,501 434,921 (104,580)
Bingo tax 25,600 45,252 19,652
Total sales and use taxes 30,611,458 31,110,809 499,351
LICENSES AND PERMITS
Parking meter 182,808 70,639 (112,169)
Taxicab and limousine 2,000 4,350 2,350
Burglar alarm 333,000 359,272 26,272
Building 905,460 819,717 (85,743)
Electrical 165,000 136,385 (28,615)
Plumbing 115,000 105,657 (9,343)
Zoning 69,250 74,178 4,928
Mechanical 95,000 53,934 (41,066)
Cert. of Occupancy 30,000 23,230 (6,770)
TABC fee 24,475 6,525 (17,950)
Billboard registration 18,000 17,255 (745)
Sign 36,000 24,292 (11,708)
Moving and clearing 750 75 (675)
Contractor license 45,000 32,796 (12,204)
Total licenses and permits 2,021,743 1,728,305 (293,438)
FINES, FORFEITURES AND PENALTIES
Moving violation fines 2,280,000 1,868,312 (411,688)
Tax service fees on fines 158,200 127,941 (30,259)
Arrest fee fines 115,000 90,374 (24,626)
Municipal court administrative fees 88,000 55,428 (32,572)
Warrant fees 264,000 255,803 (8,197)
Child safety fees 132,000 137,012 5,012
Miscellaneous municipal court fines 24,000 50,736 26,736
Special court fees 775,000 661,157 (113,843)
Collection firm fee 180,000 186,878 6,878
Parking fees 48,000 54,942 6,942
Scofflaw 10,000 12,396 2,396
Animal fines 8,400 14,897 6,497
Omnibase program 20,000 16,138 (3,862)
Total fines, forfeitures and penalties 4,102,600 3,532,014 (570,586)
(Continued)
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF REVENUES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
119
F-1
Page 2 of 3
ACTUAL
REVENUES FROM USE OF MONEY OR PROPERTY
Rent - miscellaneous 540,684$ 133,133$ (407,551)$
Distributed interest 433,027 398,502 (34,525)
Total revenues from use of money or property 973,711 531,635 (442,076)
CHARGES FOR CURRENT SERVICES
Swimming pool admissions 1,665 - (1,665)
Fire inspection fees 80,000 99,273 19,273
Lot mowing 35,000 62,737 27,737
Glass membership fees 49,700 42,020 (7,680)
Copying fees 20,000 12,749 (7,251)
Utility cut fees 132,000 132,000 -
Open records 33,000 29,849 (3,151)
Participant fees 2,400 1,622 (778)
Sports field maintenance 75,000 70,668 (4,332)
Recreation classes and events 48,000 11,300 (36,700)
Reimbursement of overhead from tourism and convention fund 47,566 47,566 -
One-Half cent administration costs 175,000 175,000 -
Reimbursement of overhead from water and sewer operating fund 1,332,641 1,332,641 -
Reimbursement of overhead from sanitation fund 246,747 246,837 90
Platting 65,000 74,522 9,522
Main street festivals 9,000 9 (8,991)
Animal adoption fees 21,000 26,000 5,000
Animal shelter fees 14,400 19,336 4,936
Liberty hall tickets sales 100,000 54,207 (45,793)
Library 95,292 44,774 (50,518)
Total charges for current services 2,583,411 2,483,110 (100,301)
REVENUES FROM OTHER AGENCIES
Coronavirus relief fund grant - 5,915,195 5,915,195
State government 20,000 1,626 (18,374)
County hazardous material service 5,000 5,000 -
Prior year restitution income - 445 445
Auto theft task force grant 112,000 120,771 8,771
Safe and Sober grant 64,000 43,656 (20,344)
School crossing guards 236,452 171,022 (65,430)
US Marshal grant 1,000 - (1,000)
Fire TCLEOSE allocation - 1,075 1,075
Federal JAG - 24,410 24,410
Justice assistance 22,800 28,499 5,699
Total revenues from other agencies 461,252 6,311,699 5,850,447
(Continued)
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF REVENUES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
120
F-1
Page 3 of 3
ACTUAL
MISCELLANEOUS
Oil and lease royalties 487,269$ 228,003$ (259,266)$
Miscellaneous charges 159,712 127,607 (32,105)
Unclaimed property revenue 15,000 11,933 (3,067)
Returned check fees 600 210 (390)
Funeral escorts 14,000 9,500 (4,500)
Fire cost recovery - 100,861 100,861
Contractor testing fees 165,000 92,993 (72,007)
Merchandise sales 63,000 10,378 (52,622)
Subdivision plan review 70,500 28,000 (42,500)
Sale of equipment 1,000 1,670 670
Sale of property - 384,330 384,330
Junked vehicle - 207 207
Total miscellaneous 976,081 995,692 19,611
Total revenues before other financing sources 75,515,136 80,426,270 4,911,134
OTHER FINANCING SOURCES (USES)
Net transfers (to) from special revenue funds (1,620,769) (1,344,608) 276,161
Total other financing sources (1,620,769) (1,344,608) 276,161
Total revenue 73,894,367$ 79,081,662$ 5,187,295$
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF REVENUES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
121
F-2
Page 1 of 5
ACTUAL
GENERAL GOVERNMENT
GENERAL GOVERNMENT SERVICES
Salaries and benefits 2,486,907$ 2,455,293$ 31,614$
Supplies and services 1,804,495 1,351,257 453,238
Utilities 67,350 69,654 (2,304)
Maintenance 22,278 22,278 -
Total general government services 4,381,030 3,898,482 482,548
COMMUNICATIONS
Salaries and benefits 366,447 358,599 7,848
Supplies and services 87,522 53,864 33,658
Utilities 15 - 15
Maintenance 535 208 327
Total communications 454,519 412,671 41,848
FINANCE
Salaries and benefits 712,089 727,498 (15,409)
Supplies and services 579,606 530,537 49,069
Utilities 700 42 658
Total finance 1,292,395 1,258,077 34,318
HUMAN RESOURCES
Salaries and benefits 402,734 357,209 45,525
Supplies and services 80,479 89,051 (8,572)
Total human resources 483,213 446,260 36,953
LEGAL
Salaries and benefits 842,482 887,290 (44,808)
Supplies and services 189,026 115,525 73,501
Utilities 260 177 83
Maintenance 839 - 839
Total legal 1,032,607 1,002,992 29,615
PARKING GARAGE
Supplies and services 5,433 784 4,649
Utilities 28,421 16,181 12,240
Maintenance 16,941 5,044 11,897
Total parking garage 50,795 22,009 28,786
INNOVATION PIPELINE
Salaries and benefits - 3,412 (3,412)
Supplies and services 18,042 13,080 4,962
Utilities - 1,460 (1,460)
Maintenance 4,160 3,028 1,132
Total innovation pipeline 22,202 20,980 1,222
Total general government 7,716,761 7,061,471 655,290
(Continued)
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
122
F-2
Page 2 of 5
ACTUAL
PUBLIC SAFETY
POLICE
Salaries and benefits 24,416,646$ 24,544,087$ (127,441)$
Supplies and services 2,741,416 2,546,071 195,345
Utilities 131,960 118,889 13,071
Maintenance 1,423,849 1,459,802 (35,953)
Total police 28,713,871 28,668,849 45,022
FIRE
Salaries and benefits 17,054,453 17,172,589 (118,136)
Supplies and services 1,177,507 1,143,529 33,978
Utilities 147,625 154,414 (6,789)
Maintenance 642,774 496,083 146,691
Total fire 19,022,359 18,966,615 55,744
MUNICIPAL COURT
Salaries and benefits 953,643 897,378 56,265
Supplies and services 775,070 776,941 (1,871)
Utilities 10,900 7,848 3,052
Maintenance 51,166 42,247 8,919
Total municipal court 1,790,779 1,724,414 66,365
Total public safety 49,527,009 49,359,878 167,131
PUBLIC SERVICES
ANIMAL SERVICES
Salaries and benefits 783,420 694,394 89,026
Supplies and services 243,626 216,901 26,725
Utilities 30,150 38,734 (8,584)
Maintenance 81,570 90,684 (9,114)
Total animal services 1,138,766 1,040,713 98,053
PLANNING AND ZONING SERVICES
Salaries and benefits 541,453 520,569 20,884
Supplies and services 109,562 101,428 8,134
Utilities 750 77 673
Total planning and zoning services 651,765 622,074 29,691
BUILDING SERVICES
Salaries and benefits 897,176 795,045 102,131
Supplies and services 261,163 283,310 (22,147)
Utilities - - -
Maintenance 31,305 41,787 (10,482)
Total building services 1,189,644 1,120,142 69,502
Total public services 2,980,175 2,782,929 197,246
(Continued)
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
123
F-1
Page 3 of 3
ACTUAL
MISCELLANEOUS
Oil and lease royalties 487,269$ 228,003$ (259,266)$
Miscellaneous charges 159,712 127,607 (32,105)
Unclaimed property revenue 15,000 11,933 (3,067)
Returned check fees 600 210 (390)
Funeral escorts 14,000 9,500 (4,500)
Fire cost recovery - 100,861 100,861
Contractor testing fees 165,000 92,993 (72,007)
Merchandise sales 63,000 10,378 (52,622)
Subdivision plan review 70,500 28,000 (42,500)
Sale of equipment 1,000 1,670 670
Sale of property - 384,330 384,330
Junked vehicle - 207 207
Total miscellaneous 976,081 995,692 19,611
Total revenues before other financing sources 75,515,136 80,426,270 4,911,134
OTHER FINANCING SOURCES (USES)
Net transfers (to) from special revenue funds (1,620,769) (1,344,608) 276,161
Total other financing sources (1,620,769) (1,344,608) 276,161
Total revenue 73,894,367$ 79,081,662$ 5,187,295$
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF REVENUES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
121
F-2
Page 4 of 5
ACTUAL
CULTURE AND RECREATION (cont'd)
INDOOR RECREATION
Salaries and benefits 429,414$ 380,389$ 49,025$
Supplies and services 80,696 80,084 612
Utilities 100 37 63
Maintenance 57,184 58,888 (1,704)
Total indoor recreation 567,394 519,398 47,996
OUTDOOR RECREATION
Salaries and benefits 145,524 60,739 84,785
Supplies and services 84,205 84,610 (405)
Maintenance 335 334 1
Total outdoor recreation 230,064 145,683 84,381
MEDIAN MAINTENANCE AND ARBORIST
Salaries and benefits 237,018 212,697 24,321
Supplies and services 132,026 210,069 (78,043)
Maintenance 60,356 58,818 1,538
Total median maintenance and arborist 429,400 481,584 (52,184)
ROSE GARDEN CENTER
Salaries and benefits 177,460 179,512 (2,052)
Supplies and services 27,482 25,763 1,719
Utilities 39,000 30,132 8,868
Maintenance 35,342 37,004 (1,662)
Total rose garden center 279,284 272,411 6,873
ROSE GARDEN MAINTENANCE
Salaries and benefits 356,630 336,553 20,077
Supplies and services 105,070 125,574 (20,504)
Utilities 32,350 33,684 (1,334)
Maintenance 80,537 83,423 (2,886)
Total rose garden maintenance 574,587 579,234 (4,647)
VISITOR FACILITIES
Salaries and benefits 579,377 502,372 77,005
Supplies and services 176,702 198,068 (21,366)
Utilities 109,075 85,612 23,463
Maintenance 100,944 101,056 (112)
Total visitor facilities 966,098 887,108 78,990
MAIN STREET
Salaries and benefits 250,201 191,275 58,926
Supplies and services 216,762 137,915 78,847
Utilities - 2,783 (2,783)
Maintenance 2,727 2,727 -
Total main street 469,690 334,700 134,990
(Continued)
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
125
F-2
Page 5 of 5
ACTUAL
CULTURE AND RECREATION (cont'd)
LIBERTY HALL
Salaries and benefits 84,242$ 128,262$ (44,020)$
Supplies and services 204,544 118,870 85,674
Utilities 16,250 11,136 5,114
Maintenance 21,208 15,247 5,961
Total liberty hall 326,244 273,515 52,729
Total culture and recreation 8,149,833 8,017,086 132,747
OTHER FINANCING USES
Transfer to capital projects 2,329,444 2,329,444 -
Transfer to fleet maintenance - 201,802 (201,802)
Transfer to permanent 100,000 100,000 -
Transfer to productivity improvement 460,474 460,474 -
Transfer to property and facility 101,305 72,730 28,575
Transfer to transit system 463,046 13,658 449,388
Total other financing uses 3,454,269 3,178,108 276,161
Capital outlay 264,834 222,024 42,810
Total expenditures 77,605,974$ 75,461,395$ 2,144,579$
CITY OF TYLER, TEXAS
GENERAL FUND
DETAILED SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
126
F-3
ACTUAL
REVENUES
Revenues from use of money or property 337,517$ 780,448$ 442,931$
Charges for current services 43,046,715 44,456,111 1,409,396
Miscellaneous income 2,446,895 2,657,788 210,893
Total revenue - budget and GAAP basis 45,831,127$ 47,894,347$ 2,063,220$
CITY OF TYLER, TEXAS
UTILITIES FUND
DETAILED SCHEDULE OF REVENUES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
127
F-4
Page 1 of 2
ACTUAL
WATER ADMINISTRATION AND SUNDRY
Salaries and benefits 1,226,460$ 1,304,488$ (78,028)$
Supplies and services 3,894,642 3,766,952 127,690
Utilities 13,750 9,919 3,831
Maintenance 48,141 36,217 11,924
Total water administration and sundry 5,182,993 5,117,576 65,417
WATER OFFICE
Salaries and benefits 1,018,470 965,132 53,338
Supplies and services 1,151,896 1,107,278 44,618
Utilities 500 54 446
Maintenance 47,943 53,402 (5,459)
Total water office 2,218,809 2,125,866 92,943
WATER DISTRIBUTION
Salaries and benefits 1,666,361 1,772,476 (106,115)
Supplies and services 427,566 378,605 48,961
Utilities 15,424 14,653 771
Maintenance 807,549 863,943 (56,394)
Total water distribution 2,916,900 3,029,677 (112,777)
WATER PLANT
Salaries and benefits 1,594,400 1,980,468 (386,068)
Supplies and services 2,510,394 2,146,833 363,561
Utilities 1,809,061 1,590,146 218,915
Maintenance 542,036 286,892 255,144
Total water plant 6,455,891 6,004,339 451,552
WASTE COLLECTION
Salaries and benefits 1,397,009 1,477,801 (80,792)
Supplies and services 157,050 113,161 43,889
Maintenance 794,548 792,174 2,374
Total waste collection 2,348,607 2,383,136 (34,529)
CD/CMOM (REGULATORY)
Salaries and benefits - (499) 499
Supplies and services 3,591,450 3,584,847 6,603
Total cd/cmom (regulatory) 3,591,450 3,584,348 7,102
WASTE TREATMENT PLANT
Salaries and benefits 1,576,934 1,592,742 (15,808)
Supplies and services 1,226,969 1,221,609 5,360
Utilities 700,450 675,724 24,726
Maintenance 763,952 545,386 218,566
Total waste treatment plant 4,268,305 4,035,461 232,844
(Continued)
CITY OF TYLER, TEXAS
UTILITIES FUND
DETAILED SCHEDULE OF EXPENSES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
128
F-4
Page 2 of 2
ACTUAL
LAKE TYLER
Salaries and benefits 429,372$ 319,643$ 109,729$
Supplies and services 345,244 201,081 144,163
Utilities 13,740 9,137 4,603
Maintenance 392,760 162,875 229,885
Total Lake Tyler 1,181,116 692,736 488,380
STORM WATER MANAGEMENT
Salaries and benefits 787,485 674,677 112,808
Supplies and services 160,494 117,549 42,945
Utilities 8,100 7,590 510
Maintenance 532,666 464,362 68,304
Total storm water management 1,488,745 1,264,178 224,567
GEOGRAPHICAL INFORMATION SYSTEMS
Salaries and benefits 594,655 645,698 (51,043)
Supplies and services 368,778 275,164 93,614
Total geographical information systems 963,433 920,862 42,571
SLUDGE HAULING
Salaries and benefits 213,161 254,883 (41,722)
Supplies and services 542,460 536,656 5,804
Utilities 18,000 17,991 9
Maintenance 193,648 192,219 1,429
Total sludge hauling 967,269 1,001,749 (34,480)
PURCHASING
Salaries and benefits 166,136 175,916 (9,780)
Supplies and services 32,617 10,385 22,232
Utilities 150 25 125
Maintenance 15,473 14,741 732
Total purchasing 214,376 201,067 13,309
Capital outlay 35,916,334 20,560,589 15,355,745
Principal payments on bonds 4,150,000 4,075,000 75,000
Interest expense 2,677,525 2,492,721 184,804
Transfers (in)/out 527,979 527,979 -
Total expenditures - budget basis 75,069,732$ 58,017,284 17,052,448$
Financial statement adjustments:
Adjustment for net pension liability (144,054)
Adjustment for OPEB liability (380,354)
Capital outlay items not expensed (20,560,589)
Principal payments of bonds (4,075,000)
Amortization expense (53,460)
Depreciation expense 7,715,415
Total expenditures - GAAP basis 40,519,242$
CITY OF TYLER, TEXAS
UTILITIES FUND
DETAILED SCHEDULE OF EXPENSES - BUDGET AND ACTUAL
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
129
F-5
Page 1 of 2
ACTUAL
REVENUES
Franchise fees 672,356$ 664,757$ (7,599)$
Revenue from use of money or property 30,364 22,108 (8,256)
Current service charges 13,180,796 14,075,880 895,084
Miscellaneous 162,704 89,096 (73,608)
Sale of assets - 30,000 30,000
Total revenues 14,046,220 14,881,841 835,621
Transfers in 650,000 1,497,269 847,269
Total revenues - budget and GAAP basis 14,696,220$ 16,379,110$ 1,682,890$
EXPENSES
Solid waste administration
Salaries and benefits 951,285$ 968,771$ (17,486)$
Supplies and services 950,828 982,688 (31,860)
Utilities 691 455 236
Total solid waste administration 1,902,804 1,951,914 (49,110)
Residential collections
Salaries and benefits 1,696,671 1,776,500 (79,829)
Supplies and services 1,894,122 2,092,754 (198,632)
Utilities 2,347 2,014 333
Maintenance 2,473,808 2,499,214 (25,406)
Total residential collections 6,066,948 6,370,482 (303,534)
Commercial collections
Salaries and benefits 1,181,776 1,204,997 (23,221)
Supplies and services 1,958,603 2,067,083 (108,480)
Utilities 4,373 5,231 (858)
Maintenance 634,009 649,069 (15,060)
Total commercial collections 3,778,761 3,926,380 (147,619)
Litter control
Salaries and benefits 72,605 47,591 25,014
Supplies and services 119,307 112,009 7,298
Utilities 800 1,109 (309)
Total litter control 192,712 160,709 32,003
(Continued)
CITY OF TYLER, TEXAS
SANITATION FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
VARIANCE WITH
FINAL BUDGET
POSITIVE
(NEGATIVE)FINAL BUDGET
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
130
F-5
Page 2 of 2
ACTUAL
EXPENSES (cont'd)
Code enforcement
Salaries and benefits 601,645$ 574,226$ 27,419$
Supplies and services 103,230 624,622 (521,392)
Utilities 5,347 3,951 1,396
Maintenance 81,421 81,959 (538)
Total code enforcement 791,643 1,284,758 (493,115)
Capital outlay 1,250,532 1,234,043 16,489
Transfers out 884,961 2,056,504 (1,171,543)
Total expenses - budget basis 14,868,361$ 16,984,790 (2,116,429)$
Financial statement adjustments:
Adjustment for net pension liability (59,627)
Adjust OPEB assets and liabilities (149,402)
Capital outlay items not expensed (1,234,043)
Depreciation expense 650,784
Total expenses - GAAP basis 16,192,502$
VARIANCE WITH
FINAL BUDGET
POSITIVE
(NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
SANITATION FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
131
F-6
ACTUAL
REVENUES
Airport services 228,464$ 177,996$ (50,468)$
Revenues from use of money and property 1,469,886 938,886 (531,000)
Income from other agencies 6,644,738 5,804,364 (840,374)
Miscellaneous revenues 28,296 39,904 11,608
Total revenues 8,371,384 6,961,150 (1,410,234)
Transfers in 277,333 767,882 490,549
Total revenues - budget and GAAP basis 8,648,717$ 7,729,032$ (919,685)$
EXPENSES
Municipal airport operations
Salaries and benefits 688,384 611,871 76,513
Supplies and services 423,044 451,830 (28,786)
Utilities 193,130 146,149 46,981
Maintenance 222,106 180,317 41,789
Total municipal airport operations 1,526,664 1,390,167 136,497
Interest expense 34,780 31,452 3,328
Principal payments on bonds 75,000 75,000 -
Transfers out 80,349 5,349 75,000
Capital outlay 5,549,063 5,537,034 12,029
Total expenses- budget basis 7,265,856$ 7,039,002 226,854$
Financial statement adjustments:
Adjustment for net pension liability (7,958)
Adjustment for OPEB liability (19,188)
Principal payments on bonds (75,000)
Capital outlay items not expensed (5,537,034)
Depreciation expense 2,340,657
Total expenses - GAAP basis 3,740,479$
VARIANCE WITH
FINAL BUDGET
POSITIVE (NEGATIVE)FINAL BUDGET
CITY OF TYLER, TEXAS
AIRPORT FUND
DETAILED SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL (NON-GAAP BUDGET BASIS)
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
132
STATISTICAL SECTION (UNAUDITED)
CITY OF TYLER, TEXAS
STATISTICAL SECTION
This part of the City of Tyler’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and supplementary information says about the City’s overall financial health.
Contents Pages
Financial Trends
These schedules contain trend information to help the reader understand
how the City’s financial performance and well-being have changed over
time.
137-142
Revenue Capacity
These schedules contain information to help the reader assess the City’s
most significant local revenue source, property taxes.
143-148
Debt Capacity
These Schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
City’s ability to issue additional debt in the future.
149-153
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City’s financial
activities take place.
154-156
Operating Information
These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report
relates to the services the City provides and the activities it performs.
157-158
TABLE 12011 2012 2013 2014 2015 2016 2017 2018 2019 2020Governmental activities Invested in capital assets 239,531,725$ 235,722,589$ 226,678,557$ 243,391,685$ 248,481,237$ 255,335,707$ 254,071,947$ 250,403,768$ 257,564,279$ 265,255,743$ Restricted 17,671,823 18,144,679 25,006,305 22,022,830 21,857,483 19,998,703 24,687,498 34,538,182 36,220,286 34,968,630 Unrestricted 15,660,827 23,997,766 24,904,041 21,104,444 (23,090,282) (29,206,408) (29,239,172) (44,703,390) (42,727,945) (40,259,967) Total governmental activities net position 272,864,375$ 277,865,034$ 276,588,903$ 286,518,959$ 247,248,438$ 246,128,002$ 249,520,273$ 240,238,560$ 251,056,620$ 259,964,406$ Business-type activities Invested in capital assets 139,645,933$ 146,342,227$ 155,451,446$ 161,933,656$ 171,337,799$ 185,888,696$ 199,364,645$ 207,347,257$ 220,412,254$ 219,486,636$ Restricted 15,567,963 14,296,705 21,543,386 19,104,927 14,620,332 13,984,060 11,622,220 17,540,832 16,738,113 28,681,236 Unrestricted 13,559,374 14,488,578 6,834,476 6,150,703 676,523 803,659 1,418,179 (989,693) (207,880) 324,881 Total business-type activities net position 168,773,270$ 175,127,510$ 183,829,308$ 187,189,286$ 186,634,654$ 200,676,415$ 212,405,044$ 223,898,396$ 236,942,487$ 248,492,753$ Primary government Invested in capital assets 379,177,658$ 382,064,816$ 382,130,003$ 405,325,341$ 419,819,036$ 441,224,403$ 453,436,592$ 457,751,025$ 477,976,533$ 484,742,379$ Restricted 33,239,786 32,441,384 46,549,691 41,127,757 36,477,815 33,982,763 36,309,718 52,079,014 52,958,399 63,649,866 Unrestricted 29,220,201 38,486,344 31,738,517 27,255,147 (22,413,759) (28,402,749) (27,820,993) (45,693,083) (42,935,825) (39,935,086) Total primary government net position 441,637,645$ 452,992,544$ 460,418,211$ 473,708,245$ 433,883,092$ 446,804,417$ 461,925,317$ 464,136,956$ 487,999,107$ 508,457,159$ Source: Government-wide Statement of Net PositionCITY OF TYLER, TEXASNET POSITION BY COMPONENTLAST TEN FISCAL YEARS (accrual basis of accounting) 137
TABLE 2Page 1 of 22011 2012 2013 2014 2015 2016 2017 2018 2019 2020ExpensesGovernmental activities: General government 9,389,003$ 7,699,118$ 8,814,941$ 10,788,232$ 7,411,863$ 10,454,415$ 8,541,513$ 7,135,438$ 6,929,613$ 8,546,671$ Public safety 41,169,622 42,534,178 43,594,916 43,241,597 42,751,866 50,776,656 50,698,376 49,127,207 54,290,654 52,163,878 Highways and streets 15,033,649 16,221,560 16,197,280 13,828,933 12,190,307 12,564,341 12,901,307 12,904,261 12,863,503 14,331,423 Public services 14,814,548 13,961,677 14,395,725 14,207,356 15,086,795 15,609,073 15,935,764 16,243,252 16,293,667 18,825,525 Cultures and recreation 8,497,285 8,470,638 8,314,970 7,737,071 9,344,668 7,933,036 7,629,494 8,284,920 8,573,123 11,208,328 Interest on long term debt 117,564 106,407 74,423 67,788 69,680 60,341 29,600 31,629 68,488 43,768 Total governmental activities expenses 89,021,671 88,993,578 91,392,255 89,870,977 86,855,179 97,397,862 95,736,054 93,726,707 99,019,048 105,119,593 Business-type activities: Water and sewer 30,449,882 31,109,582 32,097,630 31,080,132 31,574,214 32,754,688 34,766,700 37,299,452 38,465,495 39,991,263 Sanitation 11,324,625 11,327,917 11,202,044 11,474,007 11,586,745 11,997,643 12,102,806 13,182,876 13,836,676 14,135,998 Airport 2,632,814 2,522,166 2,722,446 2,839,883 3,074,982 3,421,977 3,235,501 3,057,006 3,390,497 3,735,130 Total business-type activities expenses 44,407,321 44,959,665 46,022,120 45,394,022 46,235,941 48,174,308 50,105,007 53,539,334 55,692,668 57,862,391 Total primary government expenses 133,428,992$ 133,953,243$ 137,414,375$ 135,264,999$ 133,091,120$ 145,572,170$ 145,841,061$ 147,266,041$ 154,711,716$ 162,981,984$ Program RevenuesGovernmental activities: Charges for services: General government 1,857,150$ 2,262,331$ 2,242,946$ 2,451,394$ 2,413,406$ 3,144,517$ 3,666,701$ 3,674,604$ 2,919,670$ 2,602,642$ Public safety 7,081,718 8,427,569 7,943,419 7,910,583 7,709,536 7,278,868 5,820,726 8,113,402 7,411,401 3,401,998 Highways and streets 99,130 95,913 94,981 92,034 175,622 142,380 38,880 - - - Public services 1,735,565 2,083,303 1,962,945 2,449,877 2,125,553 2,317,480 2,070,577 2,015,878 2,328,149 2,832,501 Cultures and recreation 2,007,504 1,149,328 1,027,908 1,206,025 1,201,230 1,141,469 1,300,735 1,566,802 1,578,234 123,850 Operating grants and contributions 11,483,945 10,569,298 11,033,709 11,870,746 11,016,862 11,447,285 13,517,732 12,456,026 11,744,468 19,981,326 Capital grants and contributions 2,033,980 329,091 774,752 393,979 319,933 1,010,989 476,557 454,666 411,605 308,143 Total governmental activities program revenues 26,298,992 24,916,833 25,080,660 26,374,638 24,962,142 26,482,988 26,891,908 28,281,378 26,393,527 29,250,460 Business-type activities: Charges for services: Water and sewer 35,349,773 32,493,375 34,680,614 33,520,628 34,651,646 36,512,873 38,567,044 44,496,473 43,571,235 47,113,899 Sanitation 10,231,984 11,250,663 11,502,821 11,508,277 11,485,864 11,378,673 11,842,892 14,037,513 14,793,110 14,164,974 Airport 952,105 1,174,841 1,433,089 1,559,769 1,625,731 1,345,440 1,185,962 1,299,196 1,274,805 2,022,540 Capital grants and contributions 1,861,673 5,449,727 5,998,483 2,310,974 6,479,939 11,482,387 9,500,432 10,402,222 8,459,328 4,900,741 Total business-type activities program revenues 48,395,535 50,368,606 53,615,007 48,899,648 54,243,180 60,719,373 61,096,330 70,235,404 68,098,478 68,202,154 Total primary government program revenues 74,694,527$ 75,285,439$ 78,695,667$ 75,274,286$ 79,205,322$ 87,202,361$ 87,988,238$ 98,516,782$ 94,492,005$ 97,452,614$ Net (expense)/revenueGovernmental activities (62,722,679)$ (64,076,745)$ (66,311,595)$ (63,496,339)$ (61,893,037)$ (70,914,874)$ (68,844,146)$ (65,445,329)$ (72,625,521)$ (75,869,133)$ Business-type activities 3,988,214 5,408,941 7,592,887 3,505,626 8,007,239 12,545,065 10,991,323 16,696,070 12,405,810 10,339,763 Total primary government net expense (58,734,465)$ (58,667,804)$ (58,718,708)$ (59,990,713)$ (53,885,798)$ (58,369,809)$ (57,852,823)$ (48,749,259)$ (60,219,711)$ (65,529,370)$ CITY OF TYLER, TEXASCHANGES IN NET POSITIONLAST TEN FISCAL YEARS(accrual basis of accounting)138
TABLE 2Page 2 of 22011 2012 2013 2014 2015 2016 2017 2018 2019 2020General Revenues and Other Changes in Net AssetsGovernmental activities: Property taxes 14,037,311$ 14,155,402$ 14,333,678$ 15,458,985$ 15,859,234$ 16,464,898$ 17,722,103$ 19,125,723$ 20,736,120$ 22,858,131$ Franchise taxes 10,010,620 9,882,588 10,186,300 10,434,684 10,476,018 10,592,842 10,847,085 11,187,605 11,019,217 11,124,504 Sales and use taxes 36,902,058 38,362,310 40,582,134 43,577,045 45,043,290 43,321,470 44,434,519 47,178,374 50,168,540 49,273,911 Unrestricted investment earnings and use of money and property 249,064 226,322 191,907 205,478 255,243 181,013 349,543 434,301 1,264,860 1,531,778 Gain (loss) on sale of assets 244,895 550,466 224,224 385,327 (443,252) 294,107 (825,967) 191,946 170,908 (336,086) Miscellaneous 3,352,240 328,963 148,120 294,476 334,677 - - - - - Donations - - 26,704 2,745,000 - - - - - - Equity in earnings of joint venture - - - - - - - - - - Transfers 674,061 (679,152) (657,603) 325,400 (250,581) (1,059,892) (290,866) (1,168,328) 83,936 324,681 Total governmental activities 65,470,249 62,826,899 65,035,464 73,426,395 71,274,629 69,794,438 72,236,417 76,949,621 83,443,581 84,776,919 Business-type activities: Unrestricted investment earnings and use of money and property 305,330 266,145 197,626 242,517 177,701 251,601 342,277 469,638 661,536 1,505,184 Gain (loss) on sale of assets 11,461 - 253,682 324,964 92,824 185,203 104,163 342,894 60,681 30,000 Transfers (674,061) 679,152 657,603 (325,400) 250,581 1,059,892 290,866 1,168,328 (83,936) (324,681) Total business-type activities (357,270) 945,297 1,108,911 242,081 521,106 1,496,696 737,306 1,980,860 638,281 1,210,503 Total primary government 65,112,979$ 63,772,196$ 66,144,375$ 73,668,476$ 71,795,735$ 71,291,134$ 72,973,723$ 78,930,481$ 84,081,862$ 85,987,422$ Change in Net PositionGovernmental activities 2,747,570$ (1,249,846)$ (1,276,131)$ 9,930,056$ 9,381,592$ (1,120,436)$ 3,392,271$ 11,504,292$ 10,818,060$ 84,776,919$ Business-type activities 3,630,944 6,354,238 8,701,798 3,747,707 8,528,345 14,041,761 11,728,629 18,676,930 13,044,091 1,210,503 Total primary government 6,378,514$ 5,104,392$ 7,425,667$ 13,677,763$ 17,909,937$ 12,921,325$ 15,120,900$ 30,181,222$ 23,862,151$ 85,987,422$ Source: Government-wide Statement of Net PositionLAST TEN FISCAL YEARS(accrual basis of accounting)CITY OF TYLER, TEXASCHANGES IN NET POSITION139
TABLE 3
Fiscal Property Franchise Sales and Use
Year Tax Tax Tax
1 Total
2011 14,037,311 10,010,620 36,902,058 60,949,989
2012 14,155,402 9,882,588 38,362,310 62,400,300
2013 14,333,678 10,186,300 40,582,134 65,102,112
2014 15,458,985 10,434,684 43,577,045 69,470,714
2015 15,859,234 10,476,018 45,043,290 71,378,542
2016 16,464,898 10,592,842 43,321,470 70,379,210
2017 17,722,103 10,847,085 44,434,519 73,003,707
2018 19,125,723 11,187,605 47,178,374 77,491,702
2019 20,736,120 11,019,217 50,168,540 81,923,877
2020 22,858,131 11,124,504 49,273,911 83,256,546
Source: Government-wide Statement of Activities
1 Texas law prohibits the disclosure of Sales and Use Tax revenues by source.
CITY OF TYLER, TEXAS
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting)
140
TABLE 42011 2012 2013 2014 2015 2016 2017 2018 2019 2020General Fund Reserved For: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable 111,596 49,767 48,565 48,318 41,624 98,179 95,719 136,805 128,379 168,872 Restricted - - - - - - - - - - Committed - - - - - - - - - - Assigned - 361,785 365,140 1,208,611 1,549,828 2,092,909 1,742,596 2,093,261 1,389,151 921,304 Unassigned 12,121,180 11,856,089 12,198,776 10,823,011 12,766,508 12,717,634 14,324,791 16,246,434 18,559,488 25,785,219 Total General Fund 12,232,776$ 12,267,641$ 12,612,481$ 12,079,940$ 14,357,960$ 14,908,722$ 16,163,106$ 18,476,500$ 20,077,018$ 26,875,395$ One-Half Cent Sales Tax fund Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Restricted 8,151,725 10,760,784 17,534,474 13,183,589 13,391,689 10,491,754 14,750,799 22,942,254 23,136,162 21,942,766 Total One-Half Cent Sales Tax fund 8,151,725$ 10,760,784$ 17,534,474$ 13,183,589$ 13,391,689$ 10,491,754$ 14,750,799$ 22,942,254$ 23,136,162$ 21,942,766$ All Other Governmental Funds Reserved For: Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Unreserved - - - - - - - - - - Nonspendable 2,537,012 2,618,800 2,681,379 2,751,496 2,841,929 2,930,388 2,965,480 3,024,870 3,213,067 3,099,119 Restricted 6,989,485 4,769,545 4,795,421 6,092,195 5,645,636 7,576,542 6,976,269 8,577,798 9,875,815 9,931,297 Committed - - - - - - - - - - Assigned - 2,304,944 1,008,898 1,807,246 784,195 586,738 313,516 497,286 490,429 671,931 Unassigned (2,626) - - 34,151 - - - - - 142,420 Total All Other Governmental Funds 9,523,871$ 9,693,289$ 8,485,698$ 10,685,088$ 9,271,760$ 11,093,668$ 10,255,265$ 12,099,954$ 13,579,311$ 13,844,767$ Note: Beginning in 2011, Fund Balance information is presented in accordance with GASB 54CITY OF TYLER, TEXASFUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)Fiscal Year 141
TABLE 52011 2012 2013 2014 2015 2016 2017 2018 2019 2020RevenuesTaxes 60,950,034$ 62,458,006$ 65,100,567$ 69,452,558$ 71,348,666$ 70,367,919$ 72,992,685$ 77,480,218$ 81,904,923$ 83,224,890$ Licenses and permits 1,134,112 986,939 1,251,436 1,675,295 1,526,595 1,818,538 1,687,299 2,446,051 1,769,360 1,734,830 Fines, forfeitures, and penalties 7,081,718 7,213,751 6,747,247 7,684,828 7,510,714 6,771,908 5,325,902 5,125,706 4,997,271 4,009,595 Revenues from use of money or property 769,565 890,955 790,478 802,335 841,955 750,320 845,170 915,646 1,696,680 1,186,405 Charges for current services 3,360,649 2,669,475 2,630,074 2,849,107 2,792,386 2,807,579 2,780,962 2,985,838 3,123,455 2,954,723 Revenues from other agencies 13,041,163 10,608,019 11,190,288 11,816,379 11,276,795 12,458,274 13,994,289 12,910,692 12,156,073 20,289,469 Donations 312,271 181,932 402,064 352,948 339,795 374,071 586,470 365,044 682,566 168,415 Miscellaneous 1,097,574 1,229,190 714,585 836,490 2,239,017 1,338,192 1,915,362 1,219,342 733,920 1,038,050 Total revenues 87,747,086 86,238,267 88,826,739 95,469,940 97,875,923 96,686,801 100,128,139 103,448,537 107,064,248 114,606,377 ExpendituresGeneral government 7,070,867 6,887,278 7,249,762 8,323,657 7,758,004 7,185,846 7,585,488 7,751,217 7,726,127 7,899,995 Public safety 37,976,171 39,724,861 41,169,936 42,316,320 44,644,245 45,249,043 45,075,237 45,801,648 48,017,964 49,832,870 Public services 13,507,358 12,652,458 12,850,038 12,926,496 14,324,967 15,072,374 15,234,239 15,548,886 15,729,247 16,819,483 Highways and streets 3,667,305 4,813,390 4,914,648 5,090,951 5,228,922 5,596,575 5,375,760 4,805,677 3,893,759 4,839,899 Culture and recreation 6,692,554 6,902,974 7,021,610 7,105,539 7,707,090 7,461,931 7,005,094 7,652,792 7,912,551 8,475,386 Capital outlay 14,011,314 12,358,611 8,196,820 22,200,604 16,213,454 16,659,253 12,717,841 8,292,421 18,494,375 19,676,702 Debt service Principal - 97,331 316,927 313,756 376,998 54,094 188,157 167,214 270,211 151,284 Interest 1,045 13,363 10,718 13,936 7,133 5,867 9,894 5,777 23,003 17,715 Total expenditures 82,926,614 83,450,266 81,730,459 98,291,259 96,260,813 97,284,983 93,191,710 90,025,632 102,067,237 107,713,334 Excess of revenues over (under) expenditures 4,820,472 2,788,001 7,096,280 (2,821,319) 1,615,110 (598,182) 6,936,429 13,422,905 4,997,011 6,893,043 Other financing sources (uses)Capital lease proceeds - 1,029,095 - 71,610 126,480 405,126 - 817,083 - - Transfers in 2,820,585 2,690,528 2,233,311 5,028,638 3,364,434 50,000 638,000 3,388,915 4,231,066 4,243,093 Transfers out (3,269,959) (3,694,280) (3,418,652) (4,962,965) (4,033,232) (1,369,619) (1,913,993) (5,231,692) (5,954,294) (5,265,699) Sale of capital assets 1,652 - - - - - - - - - Total other financing sources (uses) (447,722) 25,343 (1,185,341) 137,283 (542,318) (914,493) (1,275,993) (1,025,694) (1,723,228) (1,022,606) Net Change in fund balances 4,372,750$ 2,813,344$ 5,910,939$ (2,684,036)$ 1,072,792$ (1,512,675)$ 5,660,436$ 12,397,211$ 3,273,783$ 5,870,437$ Debt service as a percentage of noncapital expenditures 0.0015% 0.1557% 0.4456% 0.4307% 0.4799% 0.0744% 0.2461% 0.2117% 0.3508% 0.1920%Source: Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund BalancesNote: To properly calculate the debt service as a percentage of noncapital expenditures, only those expenditures for Capital Assets are deducted from total expenditures This amount may or may not be equal to total Capital Outlay as stated in the Statement of Revenues, Expenditures and Changes in Fund Balances for Governmental Funds.Fiscal YearCITY OF TYLER, TEXASCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting) 142
TABLE 6
Fiscal Property Franchise Sales and Use
Year Tax Tax Tax
1 Total
2011 14,037,356 10,010,620 36,902,058 60,950,034
2012 14,213,108 9,882,588 38,362,310 62,458,006
2013 14,332,133 10,186,300 40,582,134 65,100,567
2014 15,440,829 10,434,684 43,577,045 69,452,558
2015 15,829,358 10,476,018 45,043,290 71,348,666
2016 16,453,607 10,592,842 43,321,470 70,367,919
2017 17,711,081 10,847,085 44,434,519 72,992,685
2018 19,114,239 11,187,605 47,178,374 77,480,218
2019 20,717,166 11,019,217 50,168,540 81,904,923
2020 22,826,475 11,124,504 49,273,911 83,224,890
Source: Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances
1 Texas law prohibits the disclosure of Sales and Use Tax revenues by source.
Note: Current year revenues comes from Exh 5
CITY OF TYLER, TEXAS
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS 1
(modified accrual basis of accounting)
143
TABLE 7
Fiscal Year
Ended General Fund Capital Projects Total
September 30 Revenue - 1.0% Special Revenue - 0.5% Revenue
2
2011 22,849,738 11,424,869 34,274,607
2012 23,390,802 11,695,401 35,086,203
2013 24,708,985 12,354,493 37,063,478
2014 26,539,723 13,269,861 39,809,584
2015 26,917,614 13,458,807 40,376,421
2016 26,338,713 13,169,356 39,508,069
2017 26,775,850 13,387,905 40,163,755
2018 28,494,304 14,247,152 42,741,456
2019 30,257,590 15,128,795 45,386,385
2020 30,442,521 15,221,261 45,663,782
1 Source: Texas Comptroller of Public Accounts
2 Does not include Hotel / Motel Taxes, Mixed Beverage Taxes or Bingo Taxes.
Note: In accordance with Title 3, Subtitle C, Chapter 321 of the Texas Tax Code, the City of Tyler impose a sales and Use Tax of 1.5 %.
Note: The Retail Sales Tax Rate in the City of Tyler is 8.25 %. Of this 6.25% is State Tax, 0.5 % is Smith County Tax, 1.0% is City Tax
available for General Government Services and 0.5 % is City Tax available only for Capital Projects.
CITY OF TYLER, TEXAS
RETAIL SALES AND SALES TAX REVENUE ALLOCATION
LAST TEN FISCAL YEARS
Retail Sales Tax Revenue (Fiscal Year) 1
144
TABLE 8Fiscal YearLess: Total Taxable Total DirectEnded Residential Commercial Personal Mineral Tax Exempt Assessed TaxSeptember 30 Property Property Property Property Real Property Value Rate2011 5,693,876,878 N/A 972,528,791 N/A N/A 6,666,405,669 0.208865 2012 5,759,889,140 N/A 970,691,666 N/A N/A 6,730,580,806 0.208865 2013 5,859,969,154 N/A 984,818,840 N/A N/A 6,844,787,994 0.207708 2014 6,005,291,458 N/A 995,470,019 N/A N/A 7,000,761,477 0.220000 2015 6,186,217,088 N/A 1,004,310,191 N/A N/A 7,190,527,279 0.220000 2016 6,529,329,564 N/A 990,187,897 N/A N/A 7,519,517,461 0.220000 2017 6,803,228,476 N/A 1,003,167,122 N/A N/A 7,806,395,598 0.230000 2018 7,076,840,787 N/A 1,041,040,039 N/A N/A 8,117,880,826 0.240000 2019 7,351,032,270 N/A 1,170,198,591 N/A N/A 8,521,230,861 0.244452 2020 7,842,251,272 N/A 1,221,764,551 N/A N/A 9,064,015,823 0.259900 Source: Smith County Appraisal DistrictNote: Property is assessed at 100% of actual value for all types of real and personal property. Tax rates are per $100 of assessed value. At this time no distinction is made between residential and commercial property. N/A - Not availableReal PropertyCITY OF TYLER, TEXASASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN FISCAL YEARS 145
TABLE 9TotalSmith Tyler Tyler Junior Chapel Hill Whitehouse Direct andFiscal Year Debt County ISD College ISD ISD OverlappingEnded Operating Service Total** Total Total Total Total Total Rates2011 0.208865 - 0.208865 0.323900 1.37500 0.182176 1.260000 1.193000 4.54294 2012 0.208865 - 0.208865 0.323900 1.37500 0.182176 1.260000 1.193000 4.54294 2013 0.207708 - 0.207708 0.323564 1.37500 0.199926 1.245000 1.193000 4.54420 2014 0.220000 - 0.220000 0.323564 1.37500 0.199926 1.253000 1.193000 4.56449 2015 0.220000 - 0.220000 0.323560 1.37500 0.199926 1.245000 1.193000 4.55649 2016 0.220000 - 0.220000 0.330000 1.37500 0.199926 1.240000 1.193000 4.55793 2017 0.230000 - 0.230000 0.330000 1.37500 0.199926 1.240000 1.193000 4.56793 2018 0.240000 - 0.240000 0.330000 1.40500 0.199926 1.230000 1.413000 4.81793 2019 0.244452 - 0.244452 0.337311 1.40500 0.199926 1.230000 1.413000 4.82969 2020 0.259900 - 0.259900 0.345000 1.33500 0.199926 1.145900 1.325000 4.61073 Sources: Smith County Appraisal DistrictNote:* Rates are per $100 valuation.** The City Charter limits the City's property tax rate to $1.75 per $100 of assessed valuation.City of TylerOverlapping RatesCITY OF TYLER, TEXASPROPERTY TAX RATES*DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS 146
TABLE 10Taxable Percentage of Total Taxable Percentage of TotalAssessed City Taxable Assessed City Taxable TaxpayerValue Rank Assessed Value * Value Rank Assessed Value bTyler Regional Hospital LLC 238,074,380$ 1 2.63%Delek Refining Ltd 154,136,597 2 1.70% 161,082,376$ 1 2.39%Brookshire Grocery 117,996,237 3 1.30% 81,566,084 3 1.21%Oncor Electric Delivery 85,401,331 4 0.94% 54,299,816 6 0.81%Wal-Mart Stores / Wal-Mart Real Est86,619,160 5 0.96% 65,871,062 5 0.98%Genecov Investments Ltd 76,119,411 6 0.84% 81,218,440 4 1.21%Cebridge Acquisitions Lp 72,253,999 7 0.80% 48,052,832 7 0.71%BR CWS Cascades 54,597,702 8 0.60% - 0.00%JSF-2 LTD 49,536,369 9 0.55% - Simon Property Group 42,328,250 10 0.47% 43,368,340 9 0.64%Carrier Corporation - 0.00% 44,952,878 8 0.67%AT&T - 0.00% 25,620,548 10 0.38%Trane Co / American Standard Inc - 0.00% 108,486,777 2 1.61%Total 977,063,436$ 10.78% 714,519,153$ 10.62%Source: Smith County Appraisal DistrictNote:* Total taxable value including real and personal property for tax year 2019 (fiscal year 2020) is--9,064,015,823$ b Total taxable value including real and personal property for tax year 2010 (fiscal year 2011) is --6,730,580,806 2011CITY OF TYLER, TEXASPRINCIPAL PROPERTY TAXPAYERSCURRENT YEAR AND NINE YEARS AGO2020 147
TABLE 11Total Tax Collections in Fiscal Levy for SubsequentYear Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy2011 13,848,376 13,629,528 98.4% 194,050 13,823,577 99.8%2012 13,989,361 13,799,246 98.6% 141,584 13,940,830 99.7%2013 14,159,255 13,990,275 98.8% 143,255 14,133,530 99.8%2014 15,308,284 15,114,733 98.7% 156,814 15,271,547 99.8%2015 15,668,435 15,498,266 98.9% 131,094 15,629,360 99.8%2016 16,342,661 16,109,924 98.6% 144,720 16,254,644 99.5%2017 17,589,933 17,391,772 98.9% 126,567 17,518,339 99.6%2018 18,942,816 18,728,538 98.9% 88,741 18,817,279 99.3%2019 20,582,774 20,493,070 99.6% 77,793 20,570,864 99.9%2020 22,545,337 22,384,533 99.3% - 22,384,533 99.3%Source: Smith County Tax Assessor/CollectorCollected within theFiscal Year of the Levy Total Collections to DateCITY OF TYLER, TEXASPROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS 148
General Water and Total PercentageFiscal Obligation Other Sewer Revenue Other Primary of Personal Per Year Bonds Obligations*** Bonds** Obligations*** Government Income* Capita*2011 - - 70,270,000 - 70,270,000 2.57% 622 2012 - - 68,125,000 - 68,125,000 2.56% 655 2013 - 5,372,972 64,864,840 - 70,237,812 2.49% 673 2014 - 5,265,104 62,983,762 - 68,248,866 2.35% 656 2015 - 4,240,385 63,740,000 - 67,980,385 2.27% 670 2016 - 1,621,501 62,685,000 249,044 64,555,545 2.10% 623 2017 - 2,614,333 60,172,765 201,083 62,988,181 1.99% 546 2018 - 2,525,885 65,450,122 152,215 68,128,222 2.09% 649 2019 - 1,753,490 61,706,243 102,423 63,562,156 1.89% 601 2020 - 1,621,501 73,645,000 51,691 75,318,192 2.24% 701 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.* See Table 17 for personal income and population data** Revenue bonds issued for the construction of a new water treatment plant resulted in a 75% increase in production capacity in 2003 ( see table 20 ). This also includes Customer Facility Charge Revenue Bonds*** In 2013, we started including Capital Leases in Other ObligationsTABLE 12Business-Type ActivitiesCITY OF TYLER, TEXASRATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARSGovernmental Activities 149
Percentage ofGeneral Debt Service Actual TaxableFiscal Obligation Fund Value of PerYear Bonds Balance Total PropertyaCapitab2011 - - - n/a - 2012 - - - n/a - 2013 - - - n/a - 2014 - - - n/a - 2015 - - - n/a - 2016 - - - n/a - 2017 - - - n/a - 2018 - - - n/a - 2019 - - - n/a - 2020 - - - n/a - Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. aSee Table 8 for property value data.bSee Table 17 for population data.TABLE 13General Bonded Debt OutstandingCITY OF TYLER, TEXASRATIO OF GENERAL BONDED DEBT OUTSTANDINGLAST TEN FISCAL YEARS 150
TABLE 14EstimatedEstimated Share ofDebt Percentage OverlappingGovernmental Unit Outstanding Applicable* DebtDebt repaid with property taxesSmith County 36,560,000$ 50.08% 18,309,248$ Tyler Independent School District 446,427,957 71.04% 317,142,421 Tyler Junior College 116,479,118 65.00% 75,711,427 Chapel Hill Independent School District 15,705,000 19.15% 3,007,508 Whitehouse Independent School District 106,695,000 27.37% 29,202,422 Subtotal, overlapping debt443,373,024 City of Tyler (direct debt)**1,621,501 100% 1,621,501 Total direct and overlapping debt444,994,525$ Source: Debt outstanding data provided by each governmental unit.Note:** The City of Tyler does not have any general obligation debt. Direct debt includes capital leases for governmental activities.CITY OF TYLER, TEXASDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTAS OF SEPTEMBER 30, 2020* The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the City's taxable assessed value that is within the government's boundaries and dividing it by the City's total taxable assessed value. 151
TABLE 152011 2012 2013 2014 2015 2016 2017 2018 2019 2020Debt limit 666,640,567$ 673,058,081$ 684,478,799$ 700,076,148$ 719,052,728$ 751,851,746$ 786,091,970$ 811,788,083$ 906,401,582$ 939,938,978$ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 666,640,567$ 673,058,081$ 684,478,799$ 700,076,148$ 719,052,728$ 751,851,746$ 786,091,970$ 811,788,083$ 906,401,582$ 939,938,978$ Total net debt applicable to limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Legal Debt Margin Calculation for Fiscal Year 2020Assessed value9,399,389,779$ Add back: exempt real property- Total assessed value9,399,389,779 Debt limit (10% of total assessed value)939,938,978 Debt applicable to limit: General obligation bonds- Less: Amount set aside for repayment of general obligation bond- Total net debt applicable to limit- Legal debt margin939,938,978$ Note: The City of Tyler Charter limits the bonded debt to ten percent of assessed value. By law the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.CITY OF TYLER, TEXASLEGAL DEBT MARGIN INFORMATIONLAST TEN FISCAL YEARS 152
Less: Net AnnualFiscal Total Operating Available Debt Service TimesYear RevenuesaExpensesbRevenue Requirement Coverage2011 35,659,701 20,253,413 15,406,288 6,167,128 2.4982012 32,316,843 21,214,236 11,102,607 6,158,805 1.8032013 34,657,192 22,038,340 12,618,852 5,439,152 2.3202014 35,376,457 23,875,525 11,500,932 5,416,208 2.1232015 36,163,014 24,803,360 11,359,654 5,416,505 2.0972016 38,535,182 26,166,490 12,368,692 5,542,223 2.2322017 40,076,947 28,637,471 11,439,476 6,137,685 1.8642018 44,516,891 30,341,446 14,175,445 5,336,960 2.6562019 43,746,419 31,211,611 12,534,808 5,795,915 2.1632020 49,136,439 36,281,443 12,854,996 6,696,181 1.920Note: aIncludes operating and non-operating revenues. In 2010 new bond covenants were amended to include only operating revenues in determining Net Available Revenue. bIncludes operating expenses (excluding capital activity) minus depreciation plus net transfers out.Source: Comprehensive Annual Financial ReportTABLE 16Water and Sewer Revenue BondsCITY OF TYLER, TEXASPLEDGED-REVENUE COVERAGELAST TEN FISCAL YEARS 153
Estimated EducationPersonal Per Level inIncome Capita Years ofFiscal Estimated (thousands Personal Median Formal School UnemploymentYear Population1of dollars) Income2Age2Schooling2Enrollment3Rate22011 112,986 2,656,438 23,511 34.1 13.6 18,480 7.7%2012 104,083 2,736,131 26,288 34.1 13.6 18,336 7.8%2013 104,426 2,818,215 26,988 32.8 13.6 18,403 6.9%2014 104,083 2,902,762 27,889 33.5 13.6 18,029 5.8%2015 101,421 2,774,980 27,361 33.5 13.6 18,198 5.8%2016 103,700 2,796,996 26,972 33.9 13.6 18,172 4.2%2017 115,453 2,979,034 25,803 32.9 13.6 18,139 4.3%2018 104,991 2,790,355 26,577 33.4 13.6 18,130 3.3%2019 105,729 2,894,268 27,374 33.1 13.6 18,260 3.2%2020 107,479 3,030,439 28,196 33.7 13.6 17,721 5.9%Data sources:1City of Tyler Planning Department2Tyler Economic Development Council3Tyler Independent School DistrictNote: Population, median age, and education level information are based on surveys conducted during the last quarter of the calendar year. Personal income information is from the 2000 year census using a 3.0% growth rate and adjusting for the 2004 population study results. Unemployment rate information is an adjusted yearly average. School enrollment is based on the census at the start of the school year.CITY OF TYLER, TEXASDEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN FISCAL YEARSTABLE 17 154
TABLE 18Percentage Percentageof Total City of Total CityEmployer Employees Rank Employment (1) Employees Rank Employment (2)CHRISTUS Trinity Mother Frances * 3,872 1 8.0% 3,884 1 7.9%UT Health East Texas 3,559 2 7.4% 3,725 2 7.6%Tyler Independent School District 2,563 3 5.3% 2,464 4 5.0%Sanderson Farms 1,845 4 3.8% ** 0.0%Walmart 1,521 5 3.1% 1,711 5 3.5%Trane Technologies 1,473 6 3.0% 1,575 6 3.2%UT Health Science Center at Tyler 1,460 7 3.0% 849 8 1.7%Brookshire Grocery Company 1,455 8 3.0% 2,524 3 5.1%The University of Texas at Tyler 1,201 9 2.5% 565 14 1.2%Altice USA 1,150 10 2.4% 1,197 7 2.4%Tyler Junior College 1,033 11 2.1% 786 9 1.6%Target Distribution Center 1,000 12 2.1% 700 12 1.4%John Soules Foods 895 13 1.8% ** 0.0%Smith County 887 14 1.8% 775 10 1.6% Total 23,914 49.3% 20,755 42.2%Source: Tyler Economic Development Council* Headquarters located in Tyler.(1) total city employment of48,411 (2) total city employment of49,106 ** Not part of top 10 in 20112020 2011CITY OF TYLER, TEXASPRINCIPAL EMPLOYERSCURRENT YEAR AND NINE YEARS AGO 155
Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General government 55 60 63 60 64 84 77 98 96 97 Public safety 434 436 437 436 440 428 422 425 439 432 Highways and streets 54 53 52 53 51 53 47 53 51 55 Public Services 42 37 33 37 47 28 36 16 16 16 Culture and Recreation 72 66 75 66 68 76 64 68 75 73 Water & sewer 102 101 106 101 111 120 123 114 122 123 Sanitation 38 39 41 39 44 44 48 45 49 45 Airport 9 10 9 10 11 10 10 9 10 9 All Others 31 29 30 29 48 43 39 37 40 47 Total 837 831 846 831 884 886 866 865 898 897 Source: City of Tyler Finance DepartmentTABLE 19CITY OF TYLER, TEXASFULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTIONLAST TEN FISCAL YEARS 156
Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020General government Accounting Dollar value of accounts payable 72,211,330$ 77,395,157$ 76,966,097$ 88,038,170$ 92,771,122$ 93,396,592$ 88,948,885$ 90,615,261$ 95,296,379$ 107,598,733$ Legal Number of ordinances prepared and adopted 110 104 121 112 93 113 107 88 110 129 Number of resolutions prepared and adopted 29 34 31 30 26 45 51 41 69 105Public Safety Police Number of sworn officers authorized 191 191 193 194 194 194 188 191 198 200 Fire Number of structure fires 135 114 105 107 84 98 103 124 107 121Highways and Streets Streets Percentage of city streets graded A condition 72.3% 78.0% ** ** ** ** ** ** ** ** Traffic Number of traffic signals maintained 145 147 153 152 156 148 158 158 150 149Public Services Planning Number of historic building designations awarded 6 17 95 102 113 117 124 130 132 134 Culture and Recreation Parks Amount of park acreage 856.35 757.99 757.99 1216 1216 1216 1216 1207 1207 1207 Number of rose bushes planted 1056 536 2563 600 2785 1337 205 300 362 308 Library * Total number of volumes owned 200,257 188,856 175,402 183,154 180,136 179,668 208,838 215,431 228,019 216,411 Water & sewer Average volume of wastewater treated daily (gallons) 14.03 million 14.03 million 14.27 million 15.67 million 17.26 million 17.89 million 15.36 million 15.37 million 18.87 million 17.1 million Average monthly volume of water production (gallons) 844.70 million 768.76 million 746.22 million 719.54 million 748.92 million 733.87 million 691.83 million 807.63 million 716.36 million 717.77 million Water production capability ( gallons per day) 74.7 million 74.7 million 74.7 million 74.7 million 74.7 million 74.7 million 74.7 million 74.7 million 74.7 million 74.7 million Average monthly revenue billed 2,926,751$ 2,701,842$ 2,844,007$ 2,819,163$ 2,883,216$ 3,098,527$ 2,924,870$ 3,414,080$ 3,299,543.00$ 3,613,526.78$ Sanitation Number of residential customers 28,441 28,743 27,399 27,778 28,745 35,681 35,916 36,209 36,479 36,952 Number of curbside garbage carts in use 28,357 29,067 28,374 30,516 34,959 29,261 29,488 29,928 30,123 30,463 Airport Annual gallons of fuel flowage 978,831 1,029,059 1,370,092 1,480,379 1,327,585 1,249,362 1,108,054 1,244,805 1,396,406 995,136 Number of annual enplanements 72,509 73,343 85,069 85,069 66,951 55,693 49,226 48,505 60,038 26,430 Source: City Departmentsn/a - Data not available.* E-books are included.** In 2013 the streets department no longer graded the roads in an A, B, C system, converted to PCI grading system.TABLE 20CITY OF TYLER, TEXASOPERATING INDICATORS BY FUNCTIONLAST TEN FISCAL YEARS 157
Function/Program2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Public Safety Police Stations2222233322 Police Patrol Units62618056687068788192 Police Motorcycle Units16161716161510976 Fire Stations10101010101010101010Highways and Streets City Maintained Paved Streets- (miles)*** 476 570 1120 1120 1120 1120 1169 1169 1169 1169 Annual Street Overlays- (miles)***45162728323239113544Public Services Transit Buses20201413151617161616Culture and Recreation Parks (acres)1,113.40 1,207.40 1,207.40 1,216.40 1,216.40 1,216.40 1,216.80 1,207.40 1,207.40 1,207.40 Playgrounds22222223222222221919 Swimming Pools2222221111 Recreation Centers1111111111 Senior Centers1111111111 Public Library1111111111Water & Sewer Water mains (miles)660 693 693 727 734 745 734 734 734.24 734.24 Fire Hydrants3868 4220 4219 4118 4279 4310 4351 4379 4428 4434 Water Plants2222222222 Sanitary Sewers (miles)608 621 631 658 688 718 694 699 709.44 711.21Sanitation Garbage Trucks41453629344745454545Airport Airport Terminal2 1** 1** 1** 1** 1** 1** 1** 1** 1** Airport Runways3333333333Source: City Departmentsn/a - Data not available.** As of FY 2012, the old airport terminal is now used by the Historic Aviation Memorial Museum and Skyline Café.*** As of FY 2013 Streets converted over to PCI, streets maintained and overlays are now calculated by lane miles.TABLE 21CITY OF TYLER, TEXASCAPITAL ASSET STATISTICS BY FUNCTIONLAST TEN FISCAL YEARS 158
GOVERNMENTAL COMPLIANCE SECTION
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable City Council and Audit Committee,
City of Tyler, Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the City of Tyler, as of and for the year ended September
30, 2020, and the related notes to the financial statements, which collectively comprise the City of Tyler’s
basic financial statements, and have issued our report thereon dated March 10, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Tyler’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City of Tyler’s internal control. Accordingly,
we do not express an opinion on the effectiveness of the City of Tyler’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
162
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Tyler’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Tyler’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
PROTHRO, WILHELMI AND COMPANY, PLLC
Tyler, Texas
March 10, 2021
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED
BY THE UNIFORM GUIDANCE
To the Honorable City Council and Audit Committee,
The City of Tyler, Texas
Report on Compliance for Each Major Federal Program
We have audited the City of Tyler’s compliance with the types of compliance requirements described in
the OMB Compliance Supplement that could have a direct and material effect on each of the City of Tyler’s
major federal programs for the year ended September 30, 2020. The City of Tyler’s major federal programs
are identified in the summary of auditors’ results section of the accompanying schedule of findings and
questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and terms and conditions of
its federal awards applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Tyler’s major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted our
audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City of Tyler’s
compliance with those requirements and performing such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the City of Tyler’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Tyler complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended September 30, 2020.
164
Report on Internal Control over Compliance
Management of the City of Tyler is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City of Tyler’s internal control over compliance with the types
of requirements that could have a direct and material effect on each major federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City of Tyler’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
PROTHRO, WILHELMI AND COMPANY, PLLC
Tyler, Texas
March 10, 2021
G-1
Page 1 of 2
PASSED
FEDERAL GRANTOR/PASS-THROUGH THROUGH TO
GRANTOR/PROGRAM TITLE SUBRECIPIENTS
U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Community Development Block Grant
Entitlement Grants: 14.218 B04MC480028 1,651,683$
Section 8 Housing Choice Voucher Program 14.871 TX456VO 8,868,520
Family Self Suffiency Coordinator Grant 14.871 FSS8-TX456-5106 68,450
HOME Investment Partnerships Program 14.239 - 4,499
Total U.S. Department of Housing and Urban Development 10,593,152
U.S. DEPARTMENT OF JUSTICE
Passed through Smith County:
Edward Byrne Memorial Justice Assistance Grant 16.738 2015-DJ-BX-1118 24,410
Passed through East Texas Council of Governments:
Edward Byrne Memorial Justice Assistance Grant 16.738 2725402 28,499
Total U.S. Department of Justice 52,909
U.S. DEPARTMENT OF TRANSPORTATION
Passed Through Federal Aviation Administration:
Airport Improvement Program 20.106 3-48-0215-037-2016 1,691 +
Airport Improvement Program 20.106 3-48-0215-038-2017 279,852 +
Airport Improvement Program 20.106 3-48-0215-040-2018 3,271,622 +
Airport Improvement Program 20.106 3-48-0215-041-2018 723,402 +
Airport Improvement Program 20.106 3-48-0215-042-2019 486,429 +
Airport Improvement Program 20.106 3-48-0215-043-2019 75,036 +
Airport Improvement Program 20.106 3-48-0215-044-2020 903,623 +
Airport Improvement Program 20.106 3-48-0215-045-2020 19,217 +
Total Airport Improvement Program:5,760,872
+ Denotes Major Program Continued
CITY OF TYLER, TEXAS
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FEDERAL CFDA
NUMBER
PASS-THROUGH
GRANTORS
NUMBER
FEDERAL
EXPENDITURES
165
G-1
Page 2 of 2
PASSED
FEDERAL GRANTOR/PASS-THROUGH THROUGH TO
GRANTOR/PROGRAM TITLE SUBRECIPIENTS
U.S. DEPARTMENT OF TRANSPORTATION (cont'd)
Passed Through Federal Transit Administration:
Federal Transit Capital and Operating Assitance Formula 20.507 TX-2020-074-00 1,290,359
Federal Transit Capital and Operating Assitance Formula 20.507 TX-2020-039-00 509,314
Federal Transit Capital and Operating Assitance Formula 20.507 TX-90-Y205 611,144
Total Federal Transit Capital and Operating:2,410,817
Passed Through Texas Department of
Highways and Public Transportation:
Comprehensive Traffic Enforcement Grant Program 20.600 0910-16-124 43,656
Section 104F Grant MPO 20.505 50-XXXF0016 249,044 +
Capital Assistance Program for Elderly Persons and
Persons with Disabilities 20.513 51016071019 282,739
Passed Through Texas Division of Emergency Management
Disaster Grants - Public Assistance 21.019 DR 4485 5,915,195 +
Total U.S. Department of Transportation 14,662,323
U.S. DEPARTMENT OF HOMELAND SECURITY
Passed Through Transportation Security Administration:
Law Enforcement Officer Reimbursement Agreement 97.090 HSTS02-13-H-SLR721 21,600
Total U.S. Department of Homeland Security 21,600
TOTAL FEDERAL ASSISTANCE 25,329,984$
+ Denotes Major Program
CITY OF TYLER, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL PERIOD ENDED SEPTEMBER 30, 2020
FEDERAL CFDA
NUMBER
PASS-THROUGH
GRANTORS NUMBER
FEDERAL
EXPENDITURES
166
167
CITY OF TYLER
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
NOTE A – BASIS OF ACCOUNTING
The accompanying schedule of expenditures of federal awards (the schedule) includes the
federal grant activity of the City of Tyler, Texas under programs of the federal government for
the year ended September 30, 2020 and is presented on the modified accrual basis of
accounting. This information in this schedule is presented in accordance with the requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the
schedule presents only a selected portion of the operation of the City of Tyler, Texas, it is not
intended to and does not present the financial position, changes in net assets, or cash flows of
the City of Tyler, Texas.
NOTE B – NON-CASH ASSISTANCE, INSURANCE, AND LOANS
The City of Tyler did not receive any non-cash assistance through federal awards during the
year ended September 30, 2020. There were no federal loans or loan guarantees outstanding at
year end.
Certain federal awards require the City of Tyler to maintain adequate insurance coverage.
Following is a summary of the City of Tyler’s insurance policies and the liability limits:
Type of Coverage Liability Limit
Property 326,266,983$
Inland Marine (EDP/Hardware)6,308,970
Contractor's Equipment 5,504,049
Motorcycle Equipment 2,677,617
Airport Equipment 249,044
General Liability 2,000,000
Employee Benefits Liability 2,000,000
Law Enforcement Liability 2,000,000
Management Liability 2,000,000
Employment Practices Liability 4,000,000
Automobile Liability 1,000,000
Garagekeepers Legal Liability 1,000,000
Crime 500,000
Airport Liability 5,000,000
Pollution Liability (Underground Storage Tanks)1,000,000
Pollution Liability (Water Utilities)1,000,000
Cyber Liability 1,000,000
Umbrella Liability 2,000,000
Tenant Users General Liability 1,000,000
168
CITY OF TYLER
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
NOTE C – INDIRECT COST RATES
The City of Tyler, Texas has elected not to use the 10% de minimis cost rate as permitted in
the UG, section 200.414.
169
CITY OF TYLER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Section I – Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified?No
Significant deficiency(s) identified that are
not considered to be material weaknesses?None reported
Noncompliance material to financial statements noted? No
Federal and State Awards
Internal Control over major programs:
Material weakness(es) identified?No
Significant deficiency(s) identified that are
not considered to be material weaknesses? None reported
Type of auditors’ report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR section 200.516(a)? No
Identification of major programs:
FEDERAL
CFDA Numbers Name of Federal Program or Cluster
21.019 Disaster Grants – Public Assistance
20.106 Airport Improvement Program
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning
and Research
The dollar threshold used to distinguish between
Type A and Type B programs: $ 759,900
The City of Tyler does not qualify as a low risk auditee.
170
CITY OF TYLER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Section II – Financial Statement Findings
None.
Section III – Federal Award Findings and Questioned Costs
None.
Section IV- Summary Schedule of Prior Audit Findings
None.
171
CITY OF TYLER, TEXAS
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
YEAR ENDED SEPTEMBER 30, 2020
None.