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HomeMy WebLinkAboutTravis Central Appraisal District - Public Financial Report Travis County, Texas Prepared by: Travis CAD Finance Department Tr a v i s C e n t r a l A p p r a i s a l D i s t r i c t Po p u l a r An n u a l F i n a n c i a l R e p o r t FY 2 0 2 0 Our Mission The mission of the Travis Central Appraisal District is to provide accurate appraisal of all property in Travis County at one hundred percent market value, equally and uniformly, in a professional, ethical, economical and courteous manner, working to ensure that each taxpayer pays only their fair share of the property tax burden. Our Vision The Travis Central Appraisal District will act in accordance with the highest principles of professional conduct, ethics, accountability, efficiency, openness, skill and integrity. We approach our activities with a deep sense of purpose and responsibility. Our Values • Appraise- fairly, efficiently, and effectively, balancing the needs of both taxpayers and the taxing units by adhering to the Texas Property Tax Code, USPAP, and generally accepted appraisal standards. • Educate- taxpayers of their rights, remedies and responsibilities. • Communicate- collaboratively with and encourage communication among the taxing units, taxpayer public, and the agency. • Service- provide exceptional customer service that is accessible, responsible and transparent. • Performance- demand integrity, accountability and high standards from all staff and strive continuously for excellence and efficiency. The activities of the Travis Central Appraisal District are governed by the legislature, and the administrative rules adopted by the Comptroller’s Property Tax Assistance Division. Strategic Goals 1. Develop appraisals that reflect market value and ensure fairness and uniformity 2. Be efficient in business processes and ensure that mission critical tasks are completed in a timely manner with a high level of accuracy 3. Collect, create and maintain accurate data 4. Ensure that the district maintains a highly educated, motivated and skilled workforce 5. Provide customer service that is courteous, professional and accurate Tr a v i s C e n t r a l A p p r a i s a l D i s t r i c t Po p u l a r An n u a l F i n a n c i a l R e p o r t FY 2 0 2 0 TABLE OF CONTENTS Letter from the Deputy Chief of Operations .................................................................................................................. 1 Organizational Chart and Key Personnel ....................................................................................................................... 2 Travis County at a Glance .............................................................................................................................................. 3 What Does an Appraisal District Do? ............................................................................................................................. 7 Financial Position ........................................................................................................................................................ 10 Long-term Assets & Liabilities ..................................................................................................................................... 13 Awards & Acknowledgements .................................................................................................................................... 14 2020 Board of Directors Mr. James Valadez, Chair Mr. Bruce Grube, Vice-Chair Travis County Travis County Ms. Theresa Bastian, Secretary Mr. Tom Buckle City of Austin West Travis County Mr. Anthony Nguyen Ms. Eleanor Powell East Travis County City of Austin Mr. Ryan Steglich Mr. Felipe Ulloa Austin ISD Austin ISD/City of Austin Ms. Blanca Zamora-Garcia Mr. Bruce Elfant City of Austin Travis County Tax Assessor/Collector Ms. Marya Crigler, RPA Chief Appraiser Prepared by the TCAD Finance Department Page 1 Travis County Taxpayers: I am pleased to present the Popular Annual Financial Report (PAFR) for the Travis Central Appraisal District for the year ended December 31, 2020. The PAFR is intended to provide an overview of the District’s financial position as well as provide a summary of economic and demographic trends. This report was prepared using financial information taken from the 2020 Comprehensive Annual Financial Report, that was audited by Eide Bailly, LLP. The audit received an unqualified opinion, which means that the financial statements were prepared using Generally Accepted Accounting Principles (GAAP) and were free of any material misstatements. The PAFR summarizes the financial information contained in the comprehensive annual financial report but is not intended to replace the financial report. While the PAFR uses the same measurement focus and basis of accounting as the comprehensive annual financial report, the PAFR is unaudited and not issued in accordance with GAAP since it is a condensed and simplified report. If you would like more detailed information than is contained in this report, please refer to the District’s Comprehensive Annual Financial Report, which can be found on the District’s website at https://www.traviscad.org/reports-request/ under the Financial Reports tab. If you have any questions, concerns or recommendations for the District’s Finance Department, I am available by phone at (512) 834-9317 or by e-mail at Lmann@tcadcentral.org. Respectfully submitted, Leana H. Mann, CGFO Deputy Chief of Operations Travis Central Appraisal District LETTER FROM THE DEPUTY CHIEF OF OPERATIONS Page 2 Board of Directors Marya Crigler Chief Appraiser Cynthia MartinezCommunications Officer Leana Mann Deputy Chief of Operations Monica Chacon Director of Residential AppraisalKate Alexander Deputy Chief of Intergovernmental Relations Paula Fugate Director of Human Resources Dustin BanksIn-house Counsel Travis County Taxing Entities Travis County Taxpayers Vacant Director of Commercial & Personal Property Appraisal Martin WilbanksTaxpayer Liaison Officer Key District Personnel December 31, 2020 Chief Appraiser Marya Crigler Deputy Chief of Intergovernmental Relations Kate Alexander Deputy Chief of Operations Leana Mann Director of Residential Appraisal Monica Chacon Director of Commercial and Personal Property Appraisal Vacant Human Resources Director Paula Fugate In-House Counsel Dustin Banks Communications Officer Cynthia Martinez ORGANIZATIONAL CHART Austin once again has topped the U.S News & World Report’s ranking of the best places to live in the United States. With a diverse and well educated workforce, no state income taxes and a business friendly climate, there are no signs of a slowdown in Austin’s popularity and growth, solidifying its boomtown status. Where Does Austin Rank? It’s no wonder that Austin is a popular landing spot for corporate headquarters and individuals alike. Austin consistantly ranks high across a broad spectrum of studies including: Page 3 2020 is one for the history books. In terms of the US economy we saw a GDP swing from -34.3% in Q2 to +33.4% in Q3. Streets were empty, those that could, stayed home andour essential workers soldiered on providing society with the necessities. By the end of the year we saw an overall decrease of 3.5% of the US Gross Domestic Product. The uncertainty in our economy and our personal lives put many investors into a hold position for the better part of the year as indicated by a global CRE deal volumedecrease of 36% year-over-year in Q2 2020, according to Deloitte. Moving on to Q4, our proverbial light at the end of the tunnel began to shine in the form of COVID-19 vaccines. Cash flush investors looking for distressed sales continue to sit on their riches as the quicker than expected rebound has continued the upward trend of CRE ingeneral as indicated by a 5.7% year-over-year increase of the All-Property Index which shows the total investment return for CRE investors. Roughly 1% of an already reduced number of transactions have been distressed in 2020, according to Real CapitolAnalytics. With lessons learned from the Great Recession, our brief but drastic 2020recession has left many investors well positioned to continue where they left off going into 2021. Locally, economic growth in Austin is expected to continue outpacing much of the rest of the country due in part to its diversified economy and its ability to draw a substantial amount of domestic and international capital. For the third year in a row, Austin has taken the No. 3 spot on the Milken Institute’s Best-Performing Cities report, noting presences of major tech companies such as Apple Inc., Samsung Electronics, IBM Corp., and Dell. The Texas capital was named ranked No. 2 for overall real estate prospects in this year’s Urban Land Institute annual industry survey, “Emerging Trends in Real Estate 2021.” The population continues to swell at historic rates, noting Austin as a national leader for resiliency of job market. “Austin has become the clear darling of investors in the post-pandemic world. Attracting investors with its unique combination of high- quality lifestyle, new supply, and a tech forward economy and workforce,” said CBRE’s Vice President Russell Ingrum. •No. 1 Best State Capital to Live in – 4rd year in a row (WalletHub, January 2021) •No. 1 Tech Town – 2nd year in a row (CompTIA, December 2020) •No. 1 Rate of Tech Job Growth in 2020 (CompTIA, March 2021) •No. 1 In Job Growth in Manufacturing and Financial Activities (E.I.G., March 2021) •No. 1 Best College Town Among Large Cities (WalletHub, December 2020) •No. 2 U.S. Market for Real Estate Investment (PwC & Urban Land Institute, 2021) •No. 2 Job Market (The Wall Street Journal, April 2021) •No. 2 Most Polular Destinations for Migrating Home Buyers (Redfin, September 2020) •No. 3 Best Place to Live in the USA (U.S. News, 2020 - 2021) •No. 3 Top Emerging Life Science Clusters in U.S. (CBRE, October 2020) •No. 4 Metro for Number of Inc. 5000 Firms (Site Selection Investor Watch, September 2020) •No. 15 Top 25 Global Innovation Hubs (Hickey and Associates, December 2020)  POPULATION According to the most recent U.S. Census, Austin was thefastest growing large city andis expected to reach apopulation of 4.5 million by2050.  AUSTIN BUSINESS CYCLE INDEX Declined 9.5%, putting Austinstill well above Dallas andHouston  UNEMPLOYMENT Austin’s unemployment rate was 5.1% at yearend 2020, anincrease from 2019 which was2.7%.Unemployment Rates Austin 5.1% Texas 7.3% US 6.8% TRAVIS COUNTY AT A GLANCE Page 4 Economy Austin’s Business-Cycle Index Growth Rate down 9.5% annually marking an end to a full decade of consecutive expansion. Population Growth As the 2020 census continues to be counted and the dust settles from what we hope will be the worst of the pandemic, current and accurate population data is not available. In this case we can look to market indicators help us understand general trends. With the inlfux of large scale corporate relocations and expansions and the historicly low housing supply one can only assume Austin is contiuning its upward trend in population growth. The charts below provide a decade’s worth of perspective on the trajectory of the Texas Capitol’s population. Page 5 Job Growth Austin has been ranked the number two market for jobs in the U.S. following a two year run at number one, according to The Wall Street Journal. With marquis announcements of the Tesla Gigafactory and the relocation of the Oracle headquarters leading the charge, Austin was able to buck the national trend of job losses securing a position in the top ten best performing MSA’s. Leisure and hospitality was most affected but also most likely to see a rebound as our ability to congregate once more becomes possible. Page 6 COVID-19 Pandemic 3/6/2020: The city of Austin declares a disaster. South by Southwest is canceled for the first time. Events of more than 2,500 people are canceled. 3/8/2020: Gov. Greg Abbott issues a disaster declaration for all 254 counties. Texas has 39 confirmed cases. 4/13/2020: Austin and Travis County require facial coverings in public. 4/30/2020: Texas' stay-at-home order ends. More than 30 million people have applied for unemployment in the U.S. in six weeks. 5/1/2020: Local malls reopen. Restaurants, stores, movie theaters, museums, libraries, wedding venues and golf courses are allowed to reopen at 25% occupancy. Dentists are permitted to resume nonemergency treatments. April's sales tax revenue is down 9.3% from April 2019. Austin-Bergstrom International Airport sees a 96.6% drop in passengers from the year before. Vaccine research is well underway, with initial testing of 11 candidates happening globally. 5/7/2020: H-E-B no longer limits purchase of toilet paper and canned goods, but meat limits are in place. 5/27/2020: The U.S. reaches 100,000 deaths. 5/28/2020: Stubb's reopens its outdoor space at limited capacity. 6/11/2020: Travis County reaches 100 deaths 6/26/2020: Abbott allows businesses to operate at 50% capacity. Outdoor gatherings of more than 100 people are prohibited. Tubing is prohibited. Elective surgeries are postponed in Travis County because of reduced hospital capacity. Bars are closed. 7/1/2020: Travis County has 10,000 cases. 7/27/2020: Pfizer and Moderna begin phase three of their vaccine trials. 8/9/2020: The U.S. reaches 5 million cases. 8/11/2020: Texas reaches 500,000 cases. 9/22/2020: The U.S. reaches 200,000 deaths. 10/9/2020: The Austin City Limits Music Festival is virtual. 10/14/2020: Abbott increases business capacity to 75%. He says bars can open at 50%, but Travis County keeps them closed. 11/5/2020: Texas reaches 1 million cases. In Austin-Travis County, a second surge begins as cases hit the highest number since Aug. 15. 11/9/2020: Pfizer releases results that show 90% effectiveness for its vaccine. A week later the company updates that to 95%. 11/16/2020: Moderna releases results that show 95% effectiveness for its vaccine. Austin Public Health creates a COVID-19 Vaccine Coalition to focus on how to distribute the vaccine. 12/11/2020: The FDA gives emergency use authorization for the Pfizer vaccine. 12/18/2020: The FDA gives emergency use authorization for the Moderna vaccine. 3/2/2021: Abbott announces that capacity at all businesses will increase to 100% and the mask mandate will be lifted, effective March 10. All teachers are eligible for vaccinations. Austin and Travis Country continue to require masks. Page 7 The Travis Central Appraisal District was created under the 66th Texas State Legislature in 1979 under the provisions of Senate Bill 621 known as the Property Tax Code. The District is responsible for the appraisal of property subject to ad valorem taxation in Travis County, Texas. The District is governed by a board of nine directors serving two year terms, plus a tenth statutorily designated non-voting member who is the County Tax Assessor-Collector. Travis County appoints two board members, Austin ISD appoints two board members, City of Austin appoints two board members, and Austin ISD and City of Austin appoint one board member together. The remaining two board members are appointed by a vote of the eastern and western taxing entities within Travis County. The District was formed in 1981 and formally began operations in 1982, pursuing its mission to provide accurate appraisal of all property in Travis County at one hundred percent of market value, equally and uniformly, in a professional, ethical, economical and courteous manner, working to ensure that each taxpayer pays only their fair share of the property tax burden. As stipulated under the Texas Property Tax Code, the District serves the citizens and taxpayers of Travis County and the taxing entities which lie within Travis County. Travis County is located in south central Texas astride the Balcones Fault, the boundary between the Edwards Plateau to the west and the Blackland Prairies to the east. Its county seat, Austin, is the capital of Texas. Travis County’s population as of July 1, 2020, according to the City of Austin demographer, is estimated to be 1,341,815. The population of the Austin-Round Rock greater metro area is estimated to be 2,307,753. Since the last census in 2010, the population of Travis County has grown by 31.0%. WHAT DOES AN APPRAISAL DISTRICT DO? Page 8 Each Texas county is served by an appraisal district that determines the value of all of the county’s taxable property. Generally, a local government that collects property taxes, such as a county, city and school district, is a member of the appraisal district. A board of directors appointed by the member governments presides over the appraisal district. The appraisal district is considered a political subdivision and must follow applicable laws such as Open Meetings and Public Information Acts. Meetings are generally open to the public and information generated by the appraisal district is, in most cases, also available to the public. The appraisal district board of directors hires a chief appraiser, approves contracts and sets policies. The chief appraiser is the chief administrator of the appraisal district. The chief appraiser may employ and compensate professional, clerical and other personnel as provided by the appraisal district budget. The chief appraiser’s primary duty is to discover, list, review and appraise all taxable property within the appraisal district using generally accepted appraisal techniques. January 1 Appraisal districts are required to appraise property at its value on this date. A lien attaches to each taxable property to ensure property tax payment. January 1 – April 30 Appraisal districts complete appraisals and process applications for exemptions. January 31 Taxes due to local taxing units (or county tax assessor, if acting on their behalf). February 1 Local taxing units begin charging penalty and interest for unpaid tax bills. April – May Appraisal districts send notices of appraised value. May 1 Appraisal review boards begin hearing protests from property owners. July 25 Appraisal districts certify current appraised values to taxing units. August – September Local taxing units adopt tax rates. October 1 Local taxing units begin sending tax bills to property owners. Property taxes are local taxes that are assessed locally, collected locally, and used locally. You pay your property taxes to the local tax collector. The tax collector distributes the funds to schools, cities and other local governments. Local governments spend the funds on schools, roads, hospitals, police departments, fire departments and other programs. In Travis County property taxes support 132 local government agencies including 21 cities, 17 emergency districts, the county, the hospital district, the junior college, 58 municipal utility districts, 1 road districts, 15 school districts, and 17 water control improvement districts. For 2020 the projected tax levy for all taxing units in Travis County is $5,115,511,851. THE PROPERTY TAX CALENDAR PROPERTY TAXES AT WORK Page 9 DISTRIBUTION OF PROPERTY TAXES 2020 was the tenth consecutive year of appraisal roll growth. All sectors experienced growth. $- $50 $100 $150 $200 $250 $300 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 Va l u e i n B i l l i o n s Cities 19.33% Emergency Districts 1.30% County 16.07% Hospital District 4.73%Junior College 4.05%Municipal Utility Districts 1.36% Road District 0.02% School Districts 52.44% Water Control Improvement Districts 0.70% Total Levy by Taxing Unit Type Page 10 Government-wide: The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. These statements provide information, both long-term and short-term, about the District’s overall financial condition. Statement of Net Position- The statement of net position reports all of the District’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, both current and noncurrent, with the difference between the two reported as net position. Net position is one way to measure the District’s financial health. Over time, increases or decreases in the District’s net position may serve as an indicator of whether its financial health is improving or deteriorating, respectively. In the statement of net position, the assets, liabilities and net position are separately displayed for governmental activities and business-type activities. Activities of the District as a whole include only governmental activities. The District has no business-type activities. At the end of fiscal year 2020, the District’s assets and deferred outflows of resources, which totaled $34,709,086, exceeded liabilities and deferred inflows of resources, which totaled $25,931,686 by $8,777,400. This difference is known as net position. The District’s net position decreased by $499,562 from fiscal year 2019 to 2020, a decrease of 5.4%. FINANCIAL POSITION Statement of Net Position 2020 2019 2018 ASSETS: Current and other assets 10,596,245$ 19,041,260$ 17,479,433$ Capital assets, net of depreciation 20,559,814 12,593,655 3,629,947 Net pension asset 2,277,846 - 1,399,262 Total assets 33,433,905 31,634,915 22,508,642 DEFERRED OUTFLOWS OF RESOURCES 1,275,181 3,989,385 1,592,461 TOTAL ASSETS & DEFERRED OUTFLOWS 34,709,086 35,624,300 24,101,103 LIABILITIES: Current and other liabilities 6,688,301 7,463,805 6,561,143 Noncurrent liabilities 17,822,620 18,504,972 236,715 Total liabilities 24,510,921 25,968,777 6,797,858 DEFERRED INFLOWS OF RESOURCES 1,420,765 378,561 838,153 TOTAL LIABILITIES & DEFERRED INFLOWS 25,931,686 26,347,338 7,636,011 Total net position 8,777,400 9,276,962 16,465,092 TOTAL NET POSITION, RESTATED 8,777,400 9,276,962 9,986,658 NET POSITION BY CATEGORY: Investment in capital assets 11,053,303 4,400,301 3,629,947 Restricted - 1,477,431 - Unrestricted (2,275,903) 3,399,230 6,356,711 Total net position 8,777,400$ 7,799,531$ 9,986,658$ Current and other liabilities 27.3% Noncurren t liabilities 34.6% LIABILITIES OF GOVERNMENTAL ACTIVITIES AT DECEMBER 31, 2020 Current and other assets31.7% Capital assets 61.5% Net pension asset6.8% ASSETS OF GOVERNMENTAL ACTIVITIES AT DECEMBER 31, 2020 Page 11 Statement of Activities- The statement of activities presents information showing how the District’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected assessments and earned but unused compensated absences). Change in Net Position: The District’s net position decreased from 2019 to 2020 by 5.4% ($499,562). The District’s total revenue increased from 2019 to 2020 by 2.3% ($449,505). Other revenue sources totaled $195,326, a 56.9% decrease from the 2019 total of $453,087. During 2020, the Federal Reserve held the federal funds rate at a historical low due to the ongoing global pandemic, which reduced the investment earnings of the district by $235,106 from the 2019 total. Change in Net Position Table A-2 2020 2019 Increase (Decrease) Total Percentage Change 2019-2020 Percent of Total PROGRAM REVENUES: Charges for services 6,876$ 15,710$ (8,834)$ -56.2%0.0% GENERAL REVENUES: Appraisal assessments 20,193,893 19,486,627 707,266 3.6%99.0% Less credits to jurisdictions - - - 0.0%0.0% Investment earnings 97,873 332,979 (235,106) -70.6%0.5% Miscellaneous 90,577 104,398 (13,821) -13.2%0.4% Total revenues 20,389,219 19,939,714 449,505 2.3%100.0% EXPENSES: Payroll and related expenses 12,286,866 13,078,326 (791,460) -6.1%58.8% Data processing 596,998 511,294 85,704 16.8%2.9% Transportation 26,052 32,332 (6,280) -19.4%0.1% Operating supplies 415,952 285,192 130,760 45.8%2.0% Rentals 144,046 487,706 (343,660) -70.5%0.7% Legal and professional 3,888,938 2,726,782 1,162,156 42.6%18.6% Utilties and telephone 575,710 354,890 220,820 62.2%2.8% 361,966 364,224 (2,258) -0.6%1.7% Insurance 70,093 28,551 41,542 145.5%0.3% Other services 1,590,251 1,878,183 (287,932) -15.3%7.6% Interest 413,792 250,191 163,601 100.0%2.0% Depreciation expense 518,117 651,739 (133,622) -20.5%2.5% Total expenses 20,888,781 20,649,410 239,371 1.2%100.0% Change in net position (499,562) (709,696) 210,134 -29.6%-5.7% 9,276,962 9,986,658 (709,696) 100.0%105.7% Net Position, ending 8,777,400$ 9,276,962$ (499,562)$ -5.4%100.0% Building and equipment Net position, beginning Appraisal revenue 98.8% Charges for services0.0% Investment earnings 0.5% Miscellaneous revenue 0.4% Other 1.0% Revenues of Governmental Activities-by SourceFiscal Year 2020 Page 12 Total expenses for fiscal year 2020 totaled $20,888,781. Total expenses increased from 2019 to 2020 by 1.2% ($239,371). Governmental Funds: Fund Financial Statements: The fund financial statements provide more detailed information about the District’s most significant funds, not the District as a whole. Like many other local and state governments, the District utilizes fund accounting. 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. There are three types of funds that government entities utilize, depending on their specific needs and requirements: (1) governmental funds, (2) proprietary funds and (3) fiduciary funds. The District’s governmental funds are comprised of the General Fund- the District’s main operating fund and a special revenue fund dedicated to the 850 EAL Holding Corp, which is reported as a blended component unit. At the end of fiscal year 2020, the District’s total governmental funds reported an ending fund balance of $4,911,253, a decrease of 61.2% ($7,759,819). $626,330, or 12.8% of the total fund balance was nonspendable in the form of prepaid items. $3,611,106, or 73.5% of the total fund balance was committed in the form of reserves for future expenditures, and $3,611,106, or 13.7% was unassigned and available for future operational needs. Payroll and related expenses58.82% Data processing2.86% Transportation0.12% Operating supplies1.99% Rentals0.69% Legal and professional18.62% Utilities andtelephone2.76% Bldg & Equip Maint.1.73% Insurance0.34% Other services7.61% Interest1.98% Depreciation expense2.48% Other12.41% Expenses of Governmental Activities-by Source Fiscal Year 2020 Fund Balance 2020 2019 2018 Committed- reserves $ 3,611,106 $ 6,070,049 $ 6,228,423 Restricted - 1,477,431 - Nonspendable- prepaid items 626,330 541,218 667,721 Unassigned 673,817 4,582,374 4,751,356 Total fund balance 4,911,253$ 12,671,072$ 11,647,500$ Page 13 Capital Assets Net of Accumulated Depreciation Table A-4 Balance Balance December 31,December 31, 2020 2019 Amount % Land 1,107,653$ 1,107,653$ -$ 0.0% Construction in progress - 9,352,785 (9,352,785) 100.0% Building and improvements 20,959,763 3,716,660 17,243,103 463.9% Less: accumulated depreciation (2,539,646) (2,335,859) (203,787) 8.7% buildings and improvements, net 18,420,117 1,380,801 17,039,316 1234.0% Furniture and equipment 5,842,542 5,253,444 589,098 11.2% Less: accumulated depreciation (4,810,498) (4,501,028) (309,470) 6.9% furniture and equipment, net 1,032,044 752,416 279,628 37.2% Invested in capital assets 20,559,814$ 12,593,655$ 7,966,159$ 63.3% Related debt (9,506,511) (8,193,354) (1,313,157) 16.0% Governmental activities capital assets, net of related debt 11,053,303$ 4,400,301$ 6,653,002$ 151.2% Increase (Decrease) Land5.4% Building & Improvements Furniture & Equipment5.0% CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION AT DECEMBER 31, 2020 Notes payable 45%Net pension liability -11% Net OPEB liability39% Compensated absences 5% Long-term Liabilities at December 31, 2020 Capital Assets: The District’s investment in capital assets for its governmental activities at the end of fiscal year 2020 totaled $11,053,303 (net of accumulated depreciation). The investment in capital assets includes land, building and improvements, and furniture and equipment. Net capital assets increased from the prior fiscal year by $6,653,002 (151.2%). This was due to the District’s completion the renovations of 850 E. Anderson Lane. Long-term Liabilities: Total long-term liabilities increased by $13,518,120 (223.6%). This increase was related to multiple factors: long-term note payable for the purchase and renovation of the District’s new office building, increase in the net pension liability, and the implementation of a retiree healthcare plan (OPEB liability). LONG-TERM ASSETS & LIABILITIES Long-term Liabilities at December 31, 2020 Balance Balance Balance December 31,December 31,December 31, 2020 2019 2018 Notes payable 9,506,511$ 9,840,400$ -$ Net pension liability (2,277,846)1,763,932 (1,399,262) Net OPEB liability 8,175,697 6,975,715 6,478,434 Compensated absences 1,109,505 983,170 965,925 Total governmental activities 16,513,867$ 19,563,217$ 6,045,097$ Page 14 This District was awarded the Triple Crown award from the Government Finance Officers Association (GFOA). GFOA’s Trip Crown recognizes governments who have received all three GFOA awards- Certificate of Achievement for Excellence in Financial Reporting, the award for Outstanding Achievement in Popular Annual Financial Report, and the Distinguished Budget Presentation Award. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Travis Central Appraisal District for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2019. This was the ninth consecutive year that the District has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Travis Central Appraisal District, Texas for its annual budget for the fiscal year beginning January 1, 2021. This was the ninth consecutive year that the District achieved this prestigious award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Travis Central Appraisal District for its Popular Annual Financial Report (PAFR) for the fiscal year ended December 31, 2019. This was the fourth consecutive year that the District achieved this prestigious award. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government must publish a PAFR whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. AWARDS & ACKNOWLEDGEMENTS Page 15 The preparation of this report could not have been accomplished without the dedicated services of the management team of the Travis Central Appraisal District. I would like to express my appreciation to all who assisted in this effort. An acknowledgment to the Commercial Appraisal department for preparing the market analysis for the Popular Annual Financial Report. Finally, I would like to acknowledge the Chief Appraiser, Marya Crigler, and the Board of Directors for the Travis Central Appraisal District, who have supported the finance staff in our goal of excellence in financial management and reporting. Respectfully submitted, Leana H. Mann, CGFO Deputy Chief of Operations Travis Central Appraisal District